Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document And Company Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Denbury Resources Inc. | ' | ' |
Entity Central Index Key | '0000945764 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $5,625,842,252 |
Entity Common Stock, Shares Outstanding | ' | 355,982,927 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $12,187 | $98,511 |
Restricted cash | 0 | 1,050,015 |
Accrued production receivable | 262,047 | 253,131 |
Trade and other receivables, net | 78,295 | 81,971 |
Derivative assets | 5 | 19,477 |
Deferred tax assets | 52,754 | 29,156 |
Other current assets | 9,271 | 10,493 |
Total current assets | 414,559 | 1,542,754 |
Oil and natural gas properties (using full cost accounting) | ' | ' |
Proved properties | 8,945,326 | 6,963,211 |
Unevaluated properties | 780,481 | 809,154 |
CO2 properties | 1,117,167 | 1,032,653 |
Pipelines and plants | 2,209,560 | 2,035,126 |
Other property and equipment | 466,969 | 417,207 |
Less accumulated depletion, depreciation, amortization and impairment | -3,668,225 | -3,180,241 |
Net property and equipment | 9,851,278 | 8,077,110 |
Derivative assets | 9,942 | 36 |
Goodwill | 1,283,590 | 1,283,590 |
Other assets | 229,368 | 235,852 |
Total assets | 11,788,737 | 11,139,342 |
Current liabilities | ' | ' |
Accounts payable and accrued liabilities | 410,543 | 414,668 |
Oil and gas production payable | 174,677 | 161,945 |
Derivative liabilities | 53,822 | 2,842 |
Current maturities of long-term debt | 36,157 | 36,966 |
Total current liabilities | 675,199 | 616,421 |
Long-term liabilities | ' | ' |
Long-term debt, net of current portion | 3,260,625 | 3,104,462 |
Asset retirement obligations | 119,888 | 102,730 |
Derivative liabilities | 3,413 | 23,781 |
Deferred tax liabilities | 2,399,294 | 2,153,452 |
Other liabilities | 28,912 | 23,607 |
Total long-term liabilities | 5,812,132 | 5,408,032 |
Commitments and contingencies (Note 11) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $.001 par value, 25,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.001 par value, 600,000,000 shares authorized; 409,215,573 and 406,163,194 shares issued, respectively | 409 | 406 |
Paid-in capital in excess of par | 3,186,714 | 3,136,461 |
Retained earnings | 2,844,432 | 2,434,835 |
Accumulated other comprehensive loss | -276 | -348 |
Treasury stock, at cost, 46,710,896 and 30,601,262 shares, respectively | -729,873 | -456,465 |
Total stockholders' equity | 5,301,406 | 5,114,889 |
Total liabilities and stockholders' equity | $11,788,737 | $11,139,342 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' equity | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized (actual number) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (actual number) | 0 | 0 |
Preferred stock, shares outstanding (actual number) | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized (actual number) | 600,000,000 | 600,000,000 |
Common stock, shares issued (actual number) | 409,215,573 | 406,163,194 |
Treasury stock, shares (actual number) | 46,710,896 | 30,601,262 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues and other income | ' | ' | ' |
Oil, natural gas, and related product sales | $2,466,234 | $2,409,867 | $2,269,151 |
CO2 sales and transportation fees | 27,950 | 26,453 | 22,711 |
Interest income and other income | 22,943 | 20,152 | 17,462 |
Total revenues and other income | 2,517,127 | 2,456,472 | 2,309,324 |
Expenses | ' | ' | ' |
Lease operating expenses | 730,574 | 532,359 | 507,397 |
Marketing expenses | 49,246 | 52,836 | 26,047 |
CO2 discovery and operating expenses | 16,916 | 14,694 | 14,258 |
Taxes other than income | 176,231 | 160,016 | 147,534 |
General and administrative expenses | 145,211 | 144,019 | 125,525 |
Interest, net of amounts capitalized of $78,373, $77,432 and $61,586, respectively | 140,709 | 153,581 | 164,360 |
Depletion, depreciation and amortization | 509,943 | 507,538 | 409,196 |
Commodity derivatives expense (income) | 41,024 | -4,834 | -52,497 |
Loss on early extinguishment of debt | 44,651 | 0 | 16,131 |
Impairment of assets | 0 | 17,515 | 22,951 |
Other expenses | 20,242 | 21,891 | 4,377 |
Total expenses | 1,874,747 | 1,599,615 | 1,385,279 |
Income before income taxes | 642,380 | 856,857 | 924,045 |
Income tax provision | 232,783 | 331,497 | 350,712 |
Net Income | $409,597 | $525,360 | $573,333 |
Net income per common share | ' | ' | ' |
Basic | $1.12 | $1.36 | $1.45 |
Diluted | $1.11 | $1.35 | $1.43 |
Weighted average common shares outstanding | ' | ' | ' |
Basic | 366,659 | 385,205 | 396,023 |
Diluted | 369,877 | 388,938 | 400,958 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Expenses | ' | ' | ' |
Interest, capitalized | $79,253 | $77,432 | $61,586 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Operations (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $409,597 | $525,360 | $573,333 |
Other comprehensive income, net of income tax: | ' | ' | ' |
Interest rate lock derivative contracts reclassified to income, net of tax of $40, $43 and $43, respectively | 72 | 70 | 70 |
Total other comprehensive income | 72 | 70 | 70 |
Comprehensive income | $409,669 | $525,430 | $573,403 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Operations (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other comprehensive income, net of income tax: | ' | ' | ' |
Tax for interest rate lock derivative contracts reclassified to income | $40 | $43 | $43 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flow from operating activities | ' | ' | ' |
Net income | $409,597 | $525,360 | $573,333 |
Adjustments to reconcile net income to cash flow from operating activities | ' | ' | ' |
Depletion, depreciation and amortization | 509,943 | 507,538 | 409,196 |
Deferred income taxes | 222,526 | 255,743 | 342,463 |
Stock-based compensation | 33,003 | 29,310 | 33,190 |
Commodity derivatives expense (income) | 41,024 | -4,834 | -52,497 |
Cash receipt (payment) on settlements of commodity derivatives | -662 | 17,880 | 2,377 |
Loss on early extinguishment of debt | 44,651 | 0 | 16,131 |
Amortization of debt issuance costs and discounts | 14,023 | 14,695 | 16,954 |
Impairment of assets | 0 | 17,515 | 22,951 |
Other, net | -2,318 | 16,917 | -4,190 |
Changes in assets and liabilities, net of effects from acquisitions | ' | ' | ' |
Accrued production receivable | -15,085 | 36,234 | -74,781 |
Trade and other receivables | 4,981 | 45,836 | -55,470 |
Other current and long-term assets | 10,462 | 7,688 | -15,817 |
Accounts payable and accrued liabilities | 91,816 | 5,828 | -35,462 |
Oil and natural gas production payable | 12,731 | -23,460 | 54,391 |
Other liabilities | -15,497 | -41,359 | -27,955 |
Net cash provided by operating activities | 1,361,195 | 1,410,891 | 1,204,814 |
Cash flow used for investing activities | ' | ' | ' |
Oil and natural gas capital expenditures | -900,221 | -1,122,615 | -1,082,853 |
Acquisitions of oil and natural gas properties | -9,243 | -156,082 | -35,305 |
Cash paid in Riley Ridge acquisition | 0 | 0 | -199,263 |
Bakken exchange transaction | -10,385 | 281,669 | 0 |
CO2 capital expenditures | -93,744 | -131,043 | -84,789 |
Pipelines and plants capital expenditures | -184,286 | -330,417 | -236,133 |
Purchases of other assets | -65,987 | -25,765 | -28,838 |
Net proceeds from sales of oil and natural gas properties and equipment | 8,037 | 34,750 | 69,370 |
Net proceeds from sale of short-term investments | 0 | 83,545 | 0 |
Other | -19,480 | -10,883 | -8,147 |
Net cash used for investing activities | -1,275,309 | -1,376,841 | -1,605,958 |
Cash flow provided by (used for) financing activities | ' | ' | ' |
Bank repayments | -1,550,000 | -1,555,000 | -330,000 |
Bank borrowings | 1,190,000 | 1,870,000 | 715,000 |
Repayment of senior subordinated notes | -651,270 | 0 | -525,000 |
Premium paid on repayment of senior subordinated notes | -36,475 | 0 | -13,137 |
Net proceeds from issuance of senior subordinated notes | 1,200,000 | 0 | 400,000 |
Costs of debt financing | -20,161 | -34 | -13,123 |
Common stock repurchase program | -281,958 | -251,480 | -195,227 |
Other | -22,346 | -17,718 | -545 |
Net cash provided by (used for) financing activities | -172,210 | 45,768 | 37,968 |
Net increase (decrease) in cash and cash equivalents | -86,324 | 79,818 | -363,176 |
Cash and cash equivalents at beginning of year | 98,511 | 18,693 | 381,869 |
Cash and cash equivalents at end of year | $12,187 | $98,511 | $18,693 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock ($.001 Par Value) | Paid-In Capital in Excess of par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock (at cost) |
In Thousands, except Share data | ||||||
Beginning balance at Dec. 31, 2010 | $4,380,707 | $400 | $3,045,937 | $1,336,142 | ($488) | ($1,284) |
Beginning balance, shares at Dec. 31, 2010 | ' | 400,291,033 | ' | ' | ' | 78,524 |
Repurchase of common stock, value | -195,227 | ' | ' | ' | ' | -195,227 |
Repurchase of common stock, shares | 14,112,610 | ' | ' | ' | ' | 14,112,610 |
Issued or purchased pursuant to employee stock compensation plans, value | 4,688 | 3 | 4,685 | ' | ' | ' |
Issued or purchased pursuant to employee stock compensation plans, shares | ' | 2,623,962 | ' | ' | ' | ' |
Issued pursuant to employee stock purchase plan, value | 11,235 | ' | -1,623 | ' | ' | 12,858 |
Issued pursuant to employee stock purchase plan, shares | ' | 11,330 | ' | ' | ' | -666,867 |
Issued pursuant to directors' compensation plan, value | 309 | ' | 309 | ' | ' | ' |
Issued pursuant to directors' compensation plan, shares | ' | 19,745 | ' | ' | ' | ' |
Stock-based compensation | 40,187 | ' | 40,187 | ' | ' | ' |
Income tax benefit from equity awards | 879 | ' | 879 | ' | ' | ' |
Tax withholding - stock compensation, value | -9,683 | ' | ' | ' | ' | -9,683 |
Tax withholding - stock compensation, shares | ' | ' | ' | ' | ' | 441,406 |
Derivative contracts, net | 70 | ' | ' | ' | 70 | ' |
Net income | 573,333 | ' | ' | 573,333 | ' | ' |
Ending balance at Dec. 31, 2011 | 4,806,498 | 403 | 3,090,374 | 1,909,475 | -418 | -193,336 |
Ending balance, shares at Dec. 31, 2011 | ' | 402,946,070 | ' | ' | ' | 13,965,673 |
Repurchase of common stock, value | -266,657 | ' | ' | ' | ' | -266,657 |
Repurchase of common stock, shares | 16,978,008 | ' | ' | ' | ' | 16,978,008 |
Issued or purchased pursuant to employee stock compensation plans, value | 6,024 | 3 | 6,021 | ' | ' | ' |
Issued or purchased pursuant to employee stock compensation plans, shares | ' | 3,197,476 | ' | ' | ' | ' |
Issued pursuant to employee stock purchase plan, value | 13,260 | ' | 1,607 | ' | ' | 11,653 |
Issued pursuant to employee stock purchase plan, shares | ' | ' | ' | ' | ' | -815,385 |
Issued pursuant to directors' compensation plan, value | 321 | ' | 321 | ' | ' | ' |
Issued pursuant to directors' compensation plan, shares | ' | 19,648 | ' | ' | ' | ' |
Stock-based compensation | 37,897 | ' | 37,897 | ' | ' | ' |
Income tax benefit from equity awards | 241 | ' | 241 | ' | ' | ' |
Tax withholding - stock compensation, value | -8,125 | ' | ' | ' | ' | -8,125 |
Tax withholding - stock compensation, shares | ' | ' | ' | ' | ' | 472,966 |
Derivative contracts, net | 70 | ' | ' | ' | 70 | ' |
Net income | 525,360 | ' | ' | 525,360 | ' | ' |
Ending balance at Dec. 31, 2012 | 5,114,889 | 406 | 3,136,461 | 2,434,835 | -348 | -456,465 |
Ending balance, shares at Dec. 31, 2012 | ' | 406,163,194 | ' | ' | ' | 30,601,262 |
Repurchase of common stock, value | -277,768 | ' | ' | ' | ' | -277,768 |
Repurchase of common stock, shares | 16,468,648 | ' | ' | ' | ' | 16,468,648 |
Issued or purchased pursuant to employee stock compensation plans, value | 5,489 | 3 | 5,486 | ' | ' | ' |
Issued or purchased pursuant to employee stock compensation plans, shares | ' | 3,038,767 | ' | ' | ' | ' |
Issued pursuant to employee stock purchase plan, value | 15,104 | ' | 1,844 | ' | ' | 13,260 |
Issued pursuant to employee stock purchase plan, shares | ' | ' | ' | ' | ' | -860,901 |
Issued pursuant to directors' compensation plan, value | 344 | ' | 344 | ' | ' | ' |
Issued pursuant to directors' compensation plan, shares | ' | 13,612 | ' | ' | ' | ' |
Stock-based compensation | 42,091 | ' | 42,091 | ' | ' | ' |
Income tax benefit from equity awards | 488 | ' | 488 | ' | ' | ' |
Tax withholding - stock compensation, value | -8,900 | ' | ' | ' | ' | -8,900 |
Tax withholding - stock compensation, shares | ' | ' | ' | ' | ' | 501,887 |
Derivative contracts, net | 72 | ' | ' | ' | 72 | ' |
Net income | 409,597 | ' | ' | 409,597 | ' | ' |
Ending balance at Dec. 31, 2013 | $5,301,406 | $409 | $3,186,714 | $2,844,432 | ($276) | ($729,873) |
Ending balance, shares at Dec. 31, 2013 | ' | 409,215,573 | ' | ' | ' | 46,710,896 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||
Note 1. Significant Accounting Policies | |||||||||||||
Organization and Nature of Operations | |||||||||||||
Denbury Resources Inc., a Delaware corporation, is a growing, dividend-paying, domestic oil and natural gas company. Our primary focus is on enhanced oil recovery utilizing CO2, and our operations are focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. Our goal is to increase the value of our acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to tertiary recovery operations. | |||||||||||||
Principles of Reporting and Consolidation | |||||||||||||
The consolidated financial statements herein have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of Denbury and entities in which we hold a controlling financial interest. Undivided interests in oil and gas joint ventures are consolidated on a proportionate basis. All intercompany balances and transactions have been eliminated. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of certain assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during each reporting period. Management believes its estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates underlying these financial statements include (1) the fair value of financial derivative instruments; (2) the estimated quantities of proved oil and natural gas reserves used to compute depletion of oil and natural gas properties, the related present value of estimated future net cash flows therefrom and the ceiling test; (3) the estimated quantities of proved and probable CO2 reserves used to compute depletion of CO2 properties; (4) accruals related to oil and natural gas sales volumes and revenues, capital expenditures and lease operating expenses; (5) the estimated costs and timing of future asset retirement obligations; (6) estimates made in the calculation of income taxes; and (7) estimates made in determining the fair values for purchase price allocations, including goodwill. While management is not aware of any significant revisions to any of its estimates, there will likely be future revisions to its estimates resulting from matters such as revisions in estimated oil and natural gas volumes, changes in ownership interests, payouts, joint venture audits, re-allocations by purchasers or pipelines, or other corrections and adjustments common in the oil and natural gas industry, many of which require retroactive application. These types of adjustments cannot be currently estimated and will be recorded in the period in which the adjustment occurs. | |||||||||||||
Reclassifications | |||||||||||||
Certain prior period amounts have been reclassified to conform to the current year presentation. Such reclassifications had no impact on our reported net income, current assets, total assets, current liabilities, total liabilities or stockholders' equity. | |||||||||||||
Cash Equivalents | |||||||||||||
We consider all highly liquid investments to be cash equivalents if they have maturities of three months or less at the date of purchase. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash at December 31, 2012 consisted of proceeds from the exchange of oil and gas properties with Exxon Mobil Corporation and its wholly-owned subsidiary, XTO Energy Inc., (see Note 2, Acquisitions and Divestitures) previously held by a qualified intermediary and which were restricted for application towards future acquisitions to enable like-kind-exchange transactions for federal income tax purposes, which exchange transactions took place in 2013. | |||||||||||||
Oil and Natural Gas Properties | |||||||||||||
Capitalized Costs. We follow the full cost method of accounting for oil and natural gas properties. Under this method, all costs related to acquisitions, exploration and development of oil and natural gas reserves are capitalized and accumulated in a single cost center representing our activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and nonproductive wells, capitalized interest on qualifying projects, and general and administrative expenses directly related to exploration and development activities, and do not include any costs related to production, general corporate overhead or similar activities. We assign the purchase price of oil and natural gas properties we acquire to proved and unevaluated properties based on the estimated fair values as defined in the Financial Accounting Standards Board Codification ("FASC") Fair Value Measurements and Disclosures topic. Proceeds received from disposals are credited against accumulated costs except when the sale represents a significant disposal of reserves, in which case a gain or loss would be recognized. A disposal of 25% or more of our proved reserves would be considered significant. | |||||||||||||
Depletion and Depreciation. The costs capitalized, including production equipment and future development costs, are depleted or depreciated using the unit-of-production method, based on proved oil and natural gas reserves as determined by independent petroleum engineers. Oil and natural gas reserves are converted to equivalent units on a basis of 6,000 cubic feet of natural gas to one barrel of crude oil. | |||||||||||||
Under full cost accounting, we may exclude certain unevaluated costs from the amortization base pending determination of whether proved reserves can be assigned to such properties. The costs classified as unevaluated are transferred to the full cost amortization base as the properties are developed, tested and evaluated. | |||||||||||||
Ceiling Test. The net capitalized costs of oil and natural gas properties are limited to the lower of unamortized cost or the cost center ceiling. The cost center ceiling is defined as (1) the present value of estimated future net revenues from proved oil and natural gas reserves before future abandonment costs (discounted at 10%), based on the average first-day-of-the-month oil and natural gas price for each month during the 12-month period prior to the end of a particular reporting period; plus (2) the cost of properties not being amortized; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) related income tax effects. Our future net revenues from proved oil and natural gas reserves are not reduced for development costs related to the cost of drilling for and developing CO2 reserves nor those related to the cost of constructing CO2 pipelines, as those costs have previously been incurred by the Company. Therefore, we include in the ceiling test, as a reduction of future net revenues, that portion of our capitalized CO2 costs related to CO2 reserves and CO2 pipelines that we estimate will be consumed in the process of producing our proved oil and natural gas reserves. The fair value of our oil and natural gas derivative contracts is not included in the ceiling test, as we do not designate these contracts as hedge instruments for accounting purposes. The cost center ceiling test is prepared quarterly. We did not have a ceiling test write-down during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||
Joint Interest Operations. Substantially all of our oil and natural gas exploration and production activities are conducted jointly with others. These financial statements reflect only our proportionate interest in such activities, and any amounts due from other partners are included in trade receivables. | |||||||||||||
Tertiary Injection Costs. Our tertiary operations are conducted in reservoirs that have already produced significant amounts of oil over many years; however, in accordance with the SEC rules and regulations for recording proved reserves, we cannot recognize proved reserves associated with enhanced recovery techniques, such as CO2 injection, until there is a production response to the injected CO2, or unless the field is analogous to an existing flood. | |||||||||||||
We capitalize, as a development cost, injection costs in fields that are in their development stage, which means we have not yet seen incremental oil production due to the CO2 injections (i.e., a production response). These capitalized development costs are included in our unevaluated property costs if there are not already proved tertiary reserves in that field. After we see a production response to the CO2 injections (i.e., the production stage), injection costs are expensed as incurred, and once proved reserves are recognized, previously deferred unevaluated development costs become subject to depletion. | |||||||||||||
CO2 Properties | |||||||||||||
We own and produce CO2 reserves, a non-hydrocarbon resource, that are used in our tertiary oil recovery operations on our own behalf and on behalf of other interest owners in enhanced recovery fields, with a portion sold to third-party industrial users. We record revenue from our sales of CO2 to third parties when it is produced and sold. Expenses related to the production of CO2 are allocated between volumes sold to third parties and volumes consumed internally that are directly related to our tertiary production. The expenses related to third-party sales are recorded in "CO2 discovery and operating expenses," and the expenses related to internal use are recorded in "Lease operating expenses" in the Consolidated Statements of Operations, or are capitalized as oil and gas properties in our Consolidated Balance Sheets, depending on the stage of the tertiary flood that is receiving the CO2 (see Tertiary Injection Costs above for further discussion). | |||||||||||||
Costs incurred to search for CO2 are expensed as incurred until proved or probable reserves are established. Once proved or probable reserves are established, costs incurred to obtain those reserves are capitalized and classified as "CO2 properties" on our Consolidated Balance Sheets. Capitalized CO2 costs are aggregated by geologic formation and depleted on a unit-of-production basis over proved and probable reserves. | |||||||||||||
During 2010 and 2011, we acquired interests in the Riley Ridge Federal Unit ("Riley Ridge"), which contains helium and CO2 reserves (non-hydrocarbon resources) as well as natural gas reserves (a hydrocarbon resource). It is not possible to separately identify the capitalized costs related to the development of each product in the commingled gas stream; thus, these costs are allocated to each product based on the relative future revenue value of each product line and classified accordingly on the Consolidated Balance Sheets. | |||||||||||||
The portion of our capitalized CO2 costs related to CO2 reserves and CO2 pipelines that we estimate will be consumed in the process of producing our proved oil reserves is included in the ceiling test as a reduction to future net revenues. The remaining net capitalized CO2 properties, equipment and pipelines balance is evaluated for impairment by comparing the net carrying costs to the expected future net revenues from (1) the production of our probable and possible tertiary oil reserves and (2) the sale of CO2 to third-party industrial users. | |||||||||||||
Pipelines and Plants | |||||||||||||
CO2 used in our tertiary floods is transported to our fields through CO2 pipelines. Costs of CO2 pipelines under construction are not depreciated until the pipelines are placed into service. Pipelines are depreciated on a straight-line basis over their estimated useful lives, which range from 15 to 50 years. | |||||||||||||
Pipelines and plants include the Riley Ridge gas processing facility in southwestern Wyoming. We placed the Riley Ridge gas processing facility in service in the fourth quarter of 2013. Individual components of the plant are depreciated on a straight-line basis over their estimated useful lives, which range from 20 to 50 years. | |||||||||||||
Property and Equipment – Other | |||||||||||||
Other property and equipment, which includes furniture and fixtures, vehicles, computer equipment and software, and capitalized leases, is depreciated principally on a straight-line basis over each asset's estimated useful life. Vehicles and furniture and fixtures are generally depreciated over a useful life of five to ten years, and computer equipment and software are generally depreciated over a useful life of three to five years. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. | |||||||||||||
Leased property meeting certain capital lease criteria is capitalized, and the present value of the related lease payments is recorded as a liability. Amortization of capitalized leased assets is computed using the straight-line method over the shorter of the estimated useful life or the initial lease term. | |||||||||||||
Maintenance and repair costs that do not extend the useful life of the property or equipment are charged to expense as incurred. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
In general, our future asset retirement obligations relate to future costs associated with plugging and abandoning our oil, natural gas and CO2 wells, removing equipment and facilities from leased acreage, and returning land to its original condition. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred, discounted to its present value using our credit-adjusted-risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. Revisions to estimated retirement obligations will result in an adjustment to the related capitalized asset and corresponding liability. If the liability is settled for an amount other than the recorded amount, the difference is recorded to the full cost pool, unless significant. | |||||||||||||
Asset retirement obligations are estimated at the present value of expected future net cash flows and are discounted using our credit-adjusted-risk-free rate. We utilize unobservable inputs in the estimation of asset retirement obligations that include, but are not limited to, costs of labor and materials, profits on costs of labor and materials, the effect of inflation on estimated costs, and the discount rate. Accordingly, asset retirement obligations are considered a Level 3 measurement under the FASC Fair Value Measurements and Disclosures topic. | |||||||||||||
Commodity Derivative Contracts | |||||||||||||
We utilize oil and natural gas derivative contracts to mitigate our exposure to commodity price risk associated with our future oil and natural gas production. These derivative contracts have historically consisted of options, in the form of price floors or collars, and fixed price swaps. Our derivative financial instruments are recorded on the balance sheet as either an asset or a liability measured at fair value. We do not apply hedge accounting to our oil and natural gas derivative contracts; accordingly, the changes in the fair value of these instruments are recognized in our Consolidated Statements of Operations in the period of change. | |||||||||||||
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk | |||||||||||||
Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents, trade and accrued production receivables, and the derivative instruments discussed above. Our cash equivalents represent high-quality securities placed with various investment-grade institutions. This investment practice limits our exposure to concentrations of credit risk. Our trade and accrued production receivables are dispersed among various customers and purchasers; therefore, concentrations of credit risk are limited. We evaluate the credit ratings of our purchasers, and if customers are considered a credit risk, letters of credit are the primary security obtained to support lines of credit. We attempt to minimize our credit risk exposure to the counterparties of our oil and natural gas derivative contracts through formal credit policies, monitoring procedures and diversification. All of our derivative contracts are with banks, which are part of the syndicate of banks in our bank credit facility, or with their affiliates. There are no margin requirements with the counterparties of our derivative contracts. | |||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized; rather, it is tested for impairment annually during the fourth quarter and when events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit with goodwill has been reduced below its carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. However, we have only one reporting unit. To assess impairment, we have the option to qualitatively assess if it is more likely than not that the fair value of the reporting unit is less than the carrying value. Absent a qualitative assessment, or, through the qualitative assessment, if we determine it is more likely than not that the fair value of the reporting unit is less than the carrying value, a quantitative assessment is prepared to calculate the fair market value of the reporting unit. If it is determined that the fair value of the reporting unit is less than the carrying value, the recorded goodwill is impaired to its implied fair value with a charge to operating expense. We completed our annual goodwill impairment assessment during the fourth quarter of 2013 and did not record any goodwill impairment during 2013, nor have we recorded a goodwill impairment historically. | |||||||||||||
The following table summarizes the changes in goodwill for the years ended December 31, 2013 and 2012: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | |||||||||||
Beginning of year balance | $ | 1,283,590 | $ | 1,236,318 | |||||||||
Goodwill related to the Thompson Field acquisition | — | 47,272 | |||||||||||
End of year balance | $ | 1,283,590 | $ | 1,283,590 | |||||||||
Our intangible assets subject to amortization primarily consist of amounts assigned in purchase accounting to helium production rights at the Riley Ridge Federal Unit in Wyoming and a CO2 purchase contract with ConocoPhillips to offtake CO2 from the Lost Cabin gas plant in Wyoming. We amortize our helium production rights on a unit-of-production basis over estimated helium reserves and amortize the CO2 contract intangible asset on a straight-line basis over the contract term. Total amortization expense related to these assets was $1.3 million during the year ended December 31, 2013. The following table summarizes the intangible asset value and related accumulated amortization as of December 31, 2013 and 2012: | |||||||||||||
In thousands | Helium Production Rights | CO2 Purchase Contract | Total | ||||||||||
31-Dec-13 | |||||||||||||
Intangible asset value | $ | 55,266 | $ | 33,931 | $ | 89,197 | |||||||
Accumulated amortization | — | (1,319 | ) | (1,319 | ) | ||||||||
Net book value as of December 31, 2013 | $ | 55,266 | $ | 32,612 | $ | 87,878 | |||||||
December 31, 2012 | |||||||||||||
Intangible asset value | $ | 55,266 | $ | 33,901 | $ | 89,167 | |||||||
Accumulated amortization | — | — | — | ||||||||||
Net book value as of December 31, 2012 | $ | 55,266 | $ | 33,901 | $ | 89,167 | |||||||
At December 31, 2013, our estimated amortization expense for our intangible assets subject to amortization over the next five years is as follows: | |||||||||||||
In thousands | |||||||||||||
2014 | $ | 2,748 | |||||||||||
2015 | 2,843 | ||||||||||||
2016 | 2,915 | ||||||||||||
2017 | 2,915 | ||||||||||||
2018 | 3,568 | ||||||||||||
The recoverability of the carrying amount of intangible assets is assessed whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. An impairment loss would be assessed when estimated undiscounted future cash flows from the operation and disposition of the asset group are less than the carrying amount of the asset group. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using discounted cash flows or independent appraisals, as appropriate. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenue Recognition. Revenue is recognized at the time oil and natural gas is produced and sold. Any amounts due from purchasers of oil and natural gas are included in accrued production receivable. | |||||||||||||
We follow the sales method of accounting for our oil and natural gas revenue, whereby we recognize revenue on all oil or natural gas sold to our purchasers regardless of whether the sales are proportionate to our ownership in the property. A receivable or liability is recognized only to the extent that we have an imbalance on a specific property greater than the expected remaining proved reserves. As of December 31, 2013 and 2012, our aggregate oil and natural gas imbalances were not material to our consolidated financial statements. | |||||||||||||
We recognize revenue and expenses of purchased producing properties at the time we assume effective control, commencing from either the closing or purchase agreement date, depending on the underlying terms and agreements. We follow the same methodology in reverse when we sell properties by recognizing revenue and expenses of the sold properties until the closing date. | |||||||||||||
Significant Oil and Natural Gas Purchasers. Oil and natural gas sales are made on a day-to-day basis or under short-term contracts at the current area market price. We do not expect that the loss of any purchaser would have a material adverse effect upon our operations. For the year ended December 31, 2013, three purchasers accounted for 10% or more of our oil and natural gas revenues: Marathon Petroleum Company (33%), Plains Marketing LP (15%), and Eighty-Eight Oil LLC (10%). For the years ended December 31, 2012 and 2011, two purchasers accounted for 10% or more of our oil and natural gas revenues: Marathon Petroleum Company (39% and 43% in 2012 and 2011, respectively) and Plains Marketing LP (17% and 16% in 2012 and 2011, respectively). | |||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted for using the asset and liability method, under which deferred income taxes are recognized for the future tax effects of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities using the enacted statutory tax rates in effect at year end. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is recorded when it is more likely than not that the benefit from the deferred tax asset will not be realized. | |||||||||||||
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | |||||||||||||
Net Income Per Common Share | |||||||||||||
Basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is calculated in the same manner, but includes the impact of potentially dilutive securities. Potentially dilutive securities consist of stock options, stock appreciation rights ("SARs"), nonvested restricted stock and nonvested performance equity awards. For each of the three years in the period ended December 31, 2013, there were no adjustments to net income for purposes of calculating basic and diluted net income per common share. | |||||||||||||
The following is a reconciliation of the weighted average shares used in the basic and diluted net income per common share calculations for the periods indicated: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Basic weighted average common shares | 366,659 | 385,205 | 396,023 | ||||||||||
Potentially dilutive securities: | |||||||||||||
Restricted stock, stock options, SARs and performance-based equity awards | 3,218 | 3,733 | 4,935 | ||||||||||
Diluted weighted average common shares | 369,877 | 388,938 | 400,958 | ||||||||||
Basic weighted average common shares excludes shares of nonvested restricted stock. As these restricted shares vest, they will be included in the shares outstanding used to calculate basic net income per common share (although all restricted stock is issued and outstanding upon grant). For purposes of calculating diluted weighted average common shares, the nonvested restricted stock is included in the computation using the treasury stock method, with the deemed proceeds equal to the average unrecognized compensation during the period, adjusted for any estimated future tax consequences recognized directly in equity. Stock options and SARs of 3.6 million, 4.1 million and 5.0 million shares for the years ended December 31, 2013, 2012 and 2011, respectively, were not included in the computation of diluted net income per share as their effect would have been antidilutive. | |||||||||||||
Environmental and Litigation Contingencies | |||||||||||||
The Company makes judgments and estimates in recording liabilities for contingencies such as environmental remediation or ongoing litigation. Liabilities are recorded when it is both probable that a loss has been incurred and such loss is reasonably estimable. Assessments of liabilities are based on information obtained from independent and in-house experts, loss experience in similar situations, actual costs incurred, and other case-by-case factors. Any related insurance recoveries are recognized in our financial statements during the period received or at the time receipt is determined to be virtually certain. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
Balance Sheet-Offsetting Assets and Liabilities. In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-11, Disclosure about Offsetting Assets and Liabilities ("ASU 2011-11"). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities ("ASU 2013-01"). The update clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with the Derivatives and Hedging topic of the FASC, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. ASU 2011-11 and ASU 2013-01 became effective for our fiscal year beginning January 1, 2013, and have been applied retrospectively for all comparative periods presented. The adoption of ASU 2011-11 and ASU 2013-01 did not affect our consolidated financial statements, but required additional disclosures in the notes thereto. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisitions and Divestitures | ' | ||||||||
Note 2. Acquisitions and Divestitures | |||||||||
Fair Value | |||||||||
The FASC Fair Value Measurements and Disclosures topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (often referred to as the "exit price"). The fair value measurement is based on the assumptions of market participants and not those of the reporting entity. Therefore, entity-specific intentions do not impact the measurement of fair value unless those assumptions are consistent with market participant views. | |||||||||
The fair value of oil and natural gas properties is based on significant inputs not observable in the market, which the FASC Fair Value Measurements and Disclosures topic defines as Level 3 inputs. Key assumptions may include (1) NYMEX oil and natural gas futures (this input is observable); (2) dollar-per-acre values of recent sale transactions (this input is observable); (3) projections of the estimated quantities of oil and natural gas reserves, including those classified as proved, probable and possible; (4) estimated oil and natural gas pricing differentials; (5) projections of future rates of production; (6) timing and amount of future development and operating costs; (7) projected costs of CO2 (to a market participant); (8) projected reserve recovery factors; and (9) risk-adjusted discount rates. | |||||||||
2013 Acquisition | |||||||||
Cedar Creek Anticline Acquisition. In January 2013, we entered into an agreement to acquire producing assets in the Cedar Creek Anticline ("CCA") of Montana and North Dakota from a wholly-owned subsidiary of ConocoPhillips Company ("ConocoPhillips") for $1.05 billion ($1.0 billion after final closing adjustments primarily for revenues and costs of the purchased properties from the January 1, 2013 effective date to the closing date). We closed the acquisition on March 27, 2013, funding the purchase price with a portion of the cash proceeds from the Bakken Exchange Transaction (described below). This acquisition meets the definition of a business under the FASC Business Combinations topic. Accordingly, we estimated the fair value of assets acquired and liabilities assumed as of the closing date of the acquisition, using a discounted future net cash flow model. | |||||||||
We finalized our estimate of the fair value of assets acquired and liabilities assumed during 2013, after consideration of final closing adjustments, evaluation of oil and natural gas properties, other assets and related asset retirement obligations. The following table presents a summary of the fair value of assets acquired and liabilities assumed in the CCA acquisition: | |||||||||
In thousands | |||||||||
Consideration | |||||||||
Cash consideration (1) | $ | 1,001,707 | |||||||
Fair value of assets acquired and liabilities assumed | |||||||||
Oil and natural gas properties | |||||||||
Proved properties | 783,507 | ||||||||
Unevaluated properties | 222,820 | ||||||||
Other assets | 2,589 | ||||||||
Asset retirement obligations | (7,209 | ) | |||||||
$ | 1,001,707 | ||||||||
-1 | See Note 6, Income Taxes, for additional information regarding the like-kind-exchange transaction utilized to fund this purchase and Note 13, Supplemental Cash Flow Information, for supplemental cash flow information regarding the cash payment. | ||||||||
For the period from March 27, 2013 to December 31, 2013, we recognized $268.3 million of oil, natural gas, and related product sales from the property interests acquired in the CCA acquisition; during that same period, we recognized $194.2 million of net field operating income (defined as oil, natural gas and related product sales less lease operating expenses, production and ad valorem taxes, and marketing expenses) related to the CCA acquisition. | |||||||||
2012 Acquisitions and Divestitures | |||||||||
Bakken Exchange Transaction. In late 2012, we closed a sale and exchange transaction (the "Bakken Exchange Transaction") with Exxon Mobil Corporation and its wholly-owned subsidiary XTO Energy Inc. (collectively, "ExxonMobil") in which we sold to ExxonMobil our Bakken area assets in North Dakota and Montana in exchange for (1) $1.3 billion in cash (after closing adjustments), (2) ExxonMobil's operating interests in Webster Field in Texas and Hartzog Draw Field in Wyoming, and (3) approximately a one-third overriding royalty ownership interest in ExxonMobil's CO2 reserves in LaBarge Field in Wyoming. | |||||||||
This acquisition meets the definition of a business under the FASC Business Combinations topic. We finalized our estimate of the fair value of assets acquired and liabilities assumed during 2013, after consideration of final closing adjustments and evaluation of reserves. The following table presents a summary of the fair value of assets acquired and liabilities assumed in the Bakken Exchange Transaction: | |||||||||
In thousands | |||||||||
Consideration | |||||||||
Fair value of net assets transferred | $ | 1,866,107 | |||||||
Less: Fair value of assets acquired and liabilities assumed | |||||||||
Cash (1) | 1,277,041 | ||||||||
Oil and natural gas properties | |||||||||
Proved properties | 182,289 | ||||||||
Unevaluated properties | 90,690 | ||||||||
CO2 properties | 314,505 | ||||||||
Other property and equipment | 23,424 | ||||||||
Other assets | 477 | ||||||||
Other liabilities | (8,528 | ) | |||||||
Asset retirement obligations | (13,791 | ) | |||||||
Fair value of net assets acquired | $ | 1,866,107 | |||||||
-1 | See Note 13, Supplemental Cash Flow Information, for additional information regarding the placement of $1.05 billion of the proceeds in a qualified trust in order to enable a like-kind exchange transaction for federal income tax purposes. | ||||||||
Thompson Field Acquisition. In June 2012, we acquired a nearly 100% working interest and 84.7% net revenue interest in Thompson Field for $366.2 million after closing adjustments. The field is located in close proximity to Hastings Field (an enhanced oil recovery field that we are currently flooding with CO2), which is the current terminus of the Green Pipeline, which transports CO2 both from the Jackson Dome area near Jackson, Mississippi, and from various anthropogenic sources along the route of the pipeline. Thompson Field is similar to Hastings Field, producing oil from the Frio zone at similar depths, and is also a planned future tertiary field. Under the terms of the Thompson Field acquisition agreement, the seller will retain approximately a 5% gross revenue interest (less severance taxes) once average monthly oil production exceeds 3,000 Bbls/d after the initiation of CO2 injection. | |||||||||
This acquisition meets the definition of a business under the FASC Business Combinations topic. The fair values assigned to assets acquired and liabilities assumed in this acquisition have been finalized, and no adjustments have been made to fair value amounts previously disclosed in our Form 10-K for the period ended December 31, 2012. The following table presents a summary of the fair value of assets acquired and liabilities assumed in the Thompson Field acquisition: | |||||||||
In thousands | |||||||||
Consideration | |||||||||
Cash consideration (1) | $ | 366,179 | |||||||
Less: Fair value of assets acquired and liabilities assumed | |||||||||
Oil and natural gas properties | |||||||||
Proved properties | 305,233 | ||||||||
Unevaluated properties | 12,023 | ||||||||
Pipelines and plants | 2,000 | ||||||||
Other assets | 2,957 | ||||||||
Asset retirement obligations | (3,306 | ) | |||||||
318,907 | |||||||||
Goodwill | $ | 47,272 | |||||||
-1 | See Note 6, Income Taxes, for additional information regarding the like-kind-exchange transaction utilized to fund this purchase and Note 13, Supplemental Cash Flow Information, for supplemental cash flow information regarding the cash payment. | ||||||||
Unaudited Pro Forma Acquisition Information. The following combined pro forma total revenues and other income and net income are presented as if the previously discussed CCA acquisition, Bakken Exchange Transaction and Thompson Field acquisition had occurred on January 1, 2012: | |||||||||
Year Ended December 31, | |||||||||
In thousands, except per-share data | 2013 | 2012 | |||||||
Pro forma total revenues and other income | $ | 2,599,301 | $ | 2,570,829 | |||||
Pro forma net income | 437,616 | 582,033 | |||||||
Pro forma net income per common share | |||||||||
Basic | $ | 1.19 | $ | 1.51 | |||||
Diluted | 1.18 | 1.5 | |||||||
Other 2012 Divestitures. In April 2012, we completed the sale of certain non-operated assets in the Paradox Basin of Utah for $68.5 million, after final closing adjustments. The sale had an effective date of January 1, 2012. In February 2012, we completed the sale of certain non-core assets primarily located in central and southern Mississippi and in southern Louisiana for net proceeds of $141.8 million, after final closing adjustments. The sale had an effective date of December 1, 2011. We did not record a gain or loss on these divestitures in accordance with the full cost method of accounting. Certain of our 2012 divestitures were structured as like-kind-exchange transactions for federal income tax purposes. See Note 6, Income Taxes, for further details. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Asset Retirement Obligation [Abstract] | ' | ||||||||
Asset Retirement Obligations | ' | ||||||||
Note 3. Asset Retirement Obligations | |||||||||
The following table summarizes the changes in our asset retirement obligations for the years ended December 31, 2013 and 2012: | |||||||||
Year Ended December 31, | |||||||||
In thousands | 2013 | 2012 | |||||||
Beginning asset retirement obligation | $ | 106,430 | $ | 93,468 | |||||
Liabilities incurred and assumed during period | 22,216 | 50,956 | |||||||
Revisions in estimated retirement obligations | 4,730 | 5,334 | |||||||
Liabilities settled and sold during period | (15,523 | ) | (50,556 | ) | |||||
Accretion expense | 8,448 | 7,228 | |||||||
Ending asset retirement obligation | 126,301 | 106,430 | |||||||
Less: current asset retirement obligation (1) | (6,413 | ) | (3,700 | ) | |||||
Long-term asset retirement obligation | $ | 119,888 | $ | 102,730 | |||||
-1 | Included in "Accounts payable and accrued liabilities" in our Consolidated Balance Sheets. | ||||||||
Liabilities incurred and assumed generally relate to the drilling of incremental wells and liabilities assumed upon the purchase of additional interests in the CCA during 2013 and the acquisition of Thompson, Webster and Hartzog Draw fields during 2012. Liabilities settled and sold in 2012 include the plugging of old wells in the Tinsley Field and sales of non-core assets located in the Paradox Basin of Utah, Gulf Coast region and Bakken area assets in North Dakota and Montana. | |||||||||
We have escrow accounts that are legally restricted for certain of our asset retirement obligations. The balances of these escrow accounts were $36.0 million and $35.2 million at December 31, 2013 and 2012, respectively. These balances are primarily invested in U.S. Treasury bonds, are recorded at amortized cost and are included in "Other assets" in our Consolidated Balance Sheets. The carrying value of these investments approximates their estimated fair market value at December 31, 2013 and 2012. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||||||||||||||
Note 4. Property and Equipment | |||||||||||||||||||||
The following table presents a summary of our net property and equipment balances as of December 31, 2013 and 2012: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
In thousands | 2013 | 2012 | |||||||||||||||||||
Oil and natural gas properties | |||||||||||||||||||||
Proved properties | $ | 8,945,326 | $ | 6,963,211 | |||||||||||||||||
Unevaluated properties | 780,481 | 809,154 | |||||||||||||||||||
Total | 9,725,807 | 7,772,365 | |||||||||||||||||||
Accumulated depletion and depreciation | (3,219,500 | ) | (2,827,256 | ) | |||||||||||||||||
Net oil and natural gas properties | 6,506,307 | 4,945,109 | |||||||||||||||||||
CO2 properties | |||||||||||||||||||||
CO2 properties | 1,117,167 | 1,032,653 | |||||||||||||||||||
Accumulated depletion and depreciation | (150,968 | ) | (119,784 | ) | |||||||||||||||||
Net CO2 properties | 966,199 | 912,869 | |||||||||||||||||||
Pipelines and plants | |||||||||||||||||||||
CO2 pipelines (1) | 1,681,774 | 1,632,255 | |||||||||||||||||||
Plants | 527,786 | 402,871 | |||||||||||||||||||
Total | 2,209,560 | 2,035,126 | |||||||||||||||||||
Accumulated depletion and depreciation | (134,697 | ) | (99,185 | ) | |||||||||||||||||
Net plants and pipelines | 2,074,863 | 1,935,941 | |||||||||||||||||||
Other property and equipment | |||||||||||||||||||||
Other property and equipment | 466,969 | 417,207 | |||||||||||||||||||
Accumulated depletion and depreciation | (163,060 | ) | (134,016 | ) | |||||||||||||||||
Net other property and equipment | 303,909 | 283,191 | |||||||||||||||||||
Net property and equipment | $ | 9,851,278 | $ | 8,077,110 | |||||||||||||||||
-1 | Amounts include $48.4 million of CO2 pipelines at December 31, 2013 that were under construction and not subject to depreciation during 2013. | ||||||||||||||||||||
A summary of the unevaluated property costs excluded from oil and natural gas properties being amortized at December 31, 2013, and the year in which the costs were incurred follows: | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Costs Incurred During: | |||||||||||||||||||||
In thousands | 2013 | 2012 | 2011 | 2010 and prior | Total | ||||||||||||||||
Property acquisition costs | $ | 215,822 | $ | 109,275 | $ | 12,543 | $ | 317,226 | $ | 654,866 | |||||||||||
Exploration and development | 41,157 | 22,080 | 7,408 | 10,825 | 81,470 | ||||||||||||||||
Capitalized interest | 25,222 | 12,084 | 6,018 | 821 | 44,145 | ||||||||||||||||
Total | $ | 282,201 | $ | 143,439 | $ | 25,969 | $ | 328,872 | $ | 780,481 | |||||||||||
Our 2013 property acquisition costs were primarily related to the fair value allocated to the purchase of additional interests in the CCA. Our 2012 property acquisition costs were primarily related to the fair value allocated to our Hartzog Draw and Thompson fields. Property acquisition costs for 2010 and prior were primarily related to the fair value allocated to CO2 tertiary potential at our Cedar Creek Anticline properties, acquired as part of the merger with Encore Acquisition Company ("Encore"), as well as CO2 tertiary potential at Conroe Field. Exploration and development costs shown as unevaluated properties are primarily associated with our tertiary oil fields that are under development but did not have proved reserves at December 31, 2013. The most significant development costs incurred during 2013, 2012 and 2011 relate to development in preparation for the CO2 flood at Grieve field, which began in 2013. We have not yet recognized proved reserves in this field. | |||||||||||||||||||||
During 2013, we established proved reserves at Bell Creek Field and, as a result, transferred $417.6 million of costs incurred on these projects into the amortization base. Costs are transferred into the amortization base on an ongoing basis as projects are evaluated and proved reserves established or impairment determined. We review the excluded properties for impairment at least annually. We currently estimate that evaluation of most of these properties and the inclusion of their costs in the amortization base is expected to be completed within five to ten years. Until we are able to determine whether there are any proved reserves attributable to the above costs, we are not able to assess the future impact on the amortization rate of the full cost pool. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Note 5. Long-Term Debt | |||||||||
The following long-term debt and capital lease obligations were outstanding as of December 31, 2013 and 2012: | |||||||||
December 31, | |||||||||
In thousands | 2013 | 2012 | |||||||
Bank Credit Agreement | $ | 340,000 | $ | 700,000 | |||||
9½% Senior Subordinated Notes due 2016, including premium of $9,118 | — | 234,038 | |||||||
9¾% Senior Subordinated Notes due 2016, including discount of $13,569 | — | 412,781 | |||||||
8¼% Senior Subordinated Notes due 2020 | 996,273 | 996,273 | |||||||
6 3/8% Senior Subordinated Notes due 2021 | 400,000 | 400,000 | |||||||
4 5/8% Senior Subordinated Notes due 2023 | 1,200,000 | — | |||||||
Other Subordinated Notes, including premium of $16 and $25, respectively | 3,823 | 3,832 | |||||||
Pipeline financings | 228,167 | 236,244 | |||||||
Capital lease obligations | 128,519 | 158,260 | |||||||
Total | 3,296,782 | 3,141,428 | |||||||
Less: current obligations | (36,157 | ) | (36,966 | ) | |||||
Long-term debt and capital lease obligations | $ | 3,260,625 | $ | 3,104,462 | |||||
The ultimate parent company in our corporate structure, Denbury Resources Inc. ("DRI"), is the sole issuer of all of our outstanding senior subordinated notes. DRI has no independent assets or operations. Each of the subsidiary guarantors of such notes is 100% owned, directly or indirectly, by DRI; any subsidiaries of DRI other than the subsidiary guarantors are minor subsidiaries, and the guarantees of the notes are full and unconditional and joint and several. | |||||||||
$1.6 Billion Revolving Credit Agreement | |||||||||
In March 2010, we entered into a $1.6 billion revolving credit agreement with JPMorgan Chase Bank, N.A. ("JPMorgan"), as administrative agent, and other lenders party thereto (as amended, the "Bank Credit Agreement"). Availability under the Bank Credit Agreement is subject to a borrowing base, which is redetermined semi-annually on or prior to May 1 and November 1 of each year, and additionally upon requested special redeterminations. The borrowing base is adjusted at the lenders' discretion and is based in part upon external factors over which we have no control (including approval by the lenders party to the Bank Credit Agreement). If our outstanding credit under the Bank Credit Agreement exceeds the then effective borrowing base, we would be required to repay the excess amount over a period not to exceed four months. As part of the semi-annual review completed in October 2013 pursuant to the terms of the Bank Credit Agreement, our borrowing base was reaffirmed at $1.6 billion effective November 1, 2013, with approval by all of the lenders. The weighted average interest rate on borrowings outstanding as of December 31, 2013 under the Bank Credit Agreement was 1.9%. Loans under the Bank Credit Agreement mature in May 2016. | |||||||||
The Bank Credit Agreement is secured by substantially all of the proved oil and natural gas properties of DRI's restricted subsidiaries (which does not include minor subsidiaries) and by the equity interests of such restricted subsidiaries. In addition, our obligations under the Bank Credit Agreement are guaranteed jointly and severally by DRI's restricted subsidiaries. | |||||||||
The Bank Credit Agreement contains several restrictive covenants including, among others: | |||||||||
• | a requirement to maintain a current ratio, as determined under the Bank Credit Agreement, of not less than 1.0 to 1.0; | ||||||||
• | a requirement to maintain a maximum permitted ratio of consolidated total debt to Consolidated EBITDA (as defined in the Bank Credit Agreement) of DRI and its restricted subsidiaries of not more than 4.25 to 1.0; | ||||||||
• | a prohibition against incurring debt, subject to permitted exceptions; and | ||||||||
• | a limitation on the aggregate amount of forecasted oil and natural gas production that can be economically hedged with oil or natural gas derivative contracts. | ||||||||
Under the Bank Credit Agreement, we are permitted to make unlimited distributions in the form of repurchases of Denbury common stock and payments of cash dividends on Denbury common stock, provided that (1) prior to and after making any such distribution (a) no default or borrowing base deficiency exists, and (b) we are in compliance with the first two financial covenants described immediately above (calculated on a pro forma basis after giving effect to the making of any such distribution), and (2) we have minimum availability of at least 10% of our borrowing base on the date such distribution is made. | |||||||||
Loans under the Bank Credit Agreement are subject to varying rates of interest based on (1) the total outstanding credit in relation to the borrowing base and (2) whether the loan is a Eurodollar loan or a base rate loan. Eurodollar loans bear interest at the Adjusted Eurodollar Rate (as defined in the Bank Credit Agreement) plus the applicable margin in a range from 1.5% to 2.5% based on the ratio of outstanding credit to the borrowing base, and base rate loans bear interest at the Base Rate (as defined in the Bank Credit Agreement) plus the applicable margin in a range from 0.5% to 1.5% based on the ratio of outstanding credit to the borrowing base. The "Eurodollar rate" for any interest period (either one, two, three, six, and, if available to all lenders, nine or twelve months, as selected by us) is the rate per year equal to LIBOR, as published by Reuters or another source designated by JPMorgan, for deposits in dollars for a similar interest period. The "base rate" is calculated as the highest of (1) the annual rate of interest announced by JPMorgan as its "prime rate," (2) the federal funds effective rate plus 0.5%, and (3) the Adjusted Eurodollar Rate (as defined in the Bank Credit Agreement) for a one-month interest period plus 1.0%. We incur a commitment fee of either 0.375% or 0.5%, based on the ratio of outstanding credit to the borrowing base, on the unused availability under the Bank Credit Agreement. | |||||||||
Senior Subordinated Notes | |||||||||
Repurchase and Redemption of 9½% Notes and 9¾% Notes. In January 2013, we commenced cash tender offers to purchase the outstanding $426.4 million principal amount of our 9¾% Senior Subordinated Notes due 2016 (the "9¾% Notes") at 105.425% of par and the outstanding $224.9 million principal amount of our 9½% Senior Subordinated Notes due 2016 (the "9½% Notes") at 106.869% of par. During February 2013, we accepted for purchase $191.7 million principal amount of the outstanding 9¾% Notes and $186.7 million principal amount of the outstanding 9½% Notes. The purchases under these tender offers were funded by a portion of the proceeds received in February 2013 from the issuance of our 4 5/8% Senior Subordinated Notes due 2023 (the "2023 Notes"). In March 2013, we repurchased all of the remaining $234.7 million principal amount outstanding of our 9¾% Notes at 104.875% of par. In May 2013, we repurchased all of the remaining $38.2 million principal amount outstanding of our 9½% Notes at 104.75% of par. | |||||||||
We recognized a loss associated with the debt repurchases of $44.7 million during the year ended December 31, 2013, consisting of both premium payments made to repurchase or redeem the 9¾% Notes and 9½% Notes and the elimination of unamortized debt issuance costs, discounts and premiums related to these notes. The loss is included in our Consolidated Statement of Operations under the caption "Loss on early extinguishment of debt". | |||||||||
8¼% Senior Subordinated Notes due 2020. In February 2010, we issued $1.0 billion of 8¼% Senior Subordinated Notes due 2020 (the "2020 Notes") for net proceeds after underwriting discounts and commissions of $980 million. The 2020 Notes, which carry a coupon rate of 8.25%, were sold at par. We subsequently redeemed $3.7 million principal amount of the 2020 Notes, as required under the indenture governing the 2020 Notes. | |||||||||
The 2020 Notes mature on February 15, 2020, and interest is payable on February 15 and August 15 of each year. We may redeem the 2020 Notes in whole or in part at our option beginning February 15, 2015, at a redemption price of 104.125% of the principal amount, and at declining redemption prices thereafter, as specified in the indenture. Prior to February 15, 2015, we may redeem 100% of the principal amount of the 2020 Notes at a price equal to 100% of the principal amount plus a "make-whole" premium and accrued and unpaid interest. The 2020 Notes are not subject to any sinking fund requirements. | |||||||||
6 3/8% Senior Subordinated Notes due 2021. In February 2011, we issued $400 million of 6 3/8% Senior Subordinated Notes due 2021 ("2021 Notes"). The 2021 Notes, which carry a coupon rate of 6.375%, were sold at par. The net proceeds of $393 million were used to repurchase a portion of our 7½% Senior Subordinated Notes due 2013 (the "2013 Notes") and 7½% Senior Subordinated Notes due 2015 (the "2015 Notes") (see 2011 Redemption of 2013 Notes and 2015 Notes below). | |||||||||
The 2021 Notes mature on August 15, 2021, and interest is payable on February 15 and August 15 of each year. We may redeem the 2021 Notes in whole or in part at our option beginning August 15, 2016 at a redemption price of 103.188% of the principal amount, and at declining redemption prices thereafter, as specified in the indenture. Prior to August 15, 2014, we may at our option redeem up to an aggregate of 35% of the principal amount of the 2021 Notes at a price of 106.375% of par with the proceeds of certain equity offerings. In addition, at any time prior to August 15, 2016, we may redeem 100% of the principal amount of the 2021 Notes at a price equal to 100% of the principal amount plus a "make-whole" premium and accrued and unpaid interest. The 2021 Notes are not subject to any sinking fund requirements. | |||||||||
4 5/8% Senior Subordinated Notes due 2023. In February 2013, we issued $1.2 billion of 2023 Notes. The 2023 Notes, which carry a coupon rate of 4.625%, were sold at par. The net proceeds, after issuance costs, of $1.18 billion were used to repurchase or redeem our 9½% Notes and 9¾% Notes (see Repurchase and Redemption of 9½% Notes and 9¾% Notes above) and to pay down a portion of outstanding borrowings under our Bank Credit Agreement. | |||||||||
The 2023 Notes mature on July 15, 2023, and interest is payable on January 15 and July 15 of each year, commencing July 15, 2013. We may redeem the 2023 Notes in whole or in part at our option beginning January 15, 2018, at a redemption price of 102.313% of the principal amount, and at declining redemption prices thereafter, as specified in the indenture. Prior to January 15, 2016, we may at our option redeem up to an aggregate of 35% of the principal amount of the 2023 Notes at a redemption price of 104.625% of par with the proceeds of certain equity offerings. In addition, at any time prior to January 15, 2018, we may redeem 100% of the principal amount of the 2023 Notes at a redemption price equal to 100% of the principal amount plus a "make-whole" premium and accrued and unpaid interest. | |||||||||
Restrictive Covenants in Indentures for Senior Subordinated Notes. Each of the indentures for the 2020 Notes, 2021 Notes and 2023 Notes contains certain covenants which are generally consistent and which restrict our ability and the ability of our restricted subsidiaries to take or permit certain actions, including restrictions on our ability and the ability of our restricted subsidiaries to (1) incur additional debt; (2) make investments; (3) create liens on our assets or the assets of our restricted subsidiaries; (4) create restrictions on the ability of our restricted subsidiaries to pay dividends or make other payments to DRI or other restricted subsidiaries; (5) engage in transactions with our affiliates; (6) transfer or sell assets or subsidiary stock; (7) consolidate, merge or transfer all or substantially all of our assets and the assets of our restricted subsidiaries; and (8) make restricted payments (which includes paying dividends on our common stock or redeeming, repurchasing or retiring such stock or subordinated debt), provided that the restricted payments covenant in the indenture for the 2023 Notes (the "2023 Indenture") permits us in certain circumstances to make unlimited restricted payments so long as we maintain a ratio of total debt to EBITDA (both as defined in the 2023 Indenture) of at least 2.5 to 1 (both before and after giving effect to any restricted payment), although we will not be able to realize the practical benefit of the restricted payment covenant flexibility in the 2023 Indenture until the 2020 Notes and 2021 Notes have been redeemed or retired. | |||||||||
2011 Redemption of 2013 Notes and 2015 Notes. Pursuant to cash tender offers, during 2011 we repurchased $225 million in principal of our 2013 Notes and $300 million in principal of our 2015 Notes. We recognized a $16.1 million loss during the year ended December 31, 2011 associated with the debt repurchases, which is included in our Consolidated Statement of Operations under the caption "Loss on early extinguishment of debt". | |||||||||
Pipeline Financings | |||||||||
In May 2008, we closed two transactions with Genesis Energy, L.P. ("Genesis") involving two of our pipelines. The NEJD Pipeline system included a 20-year financing lease, and the Free State Pipeline included a long-term transportation service agreement. We recorded both of these transactions as financing leases. | |||||||||
Debt Issuance Costs | |||||||||
In connection with the issuance of our outstanding long-term debt, we have incurred debt issuance costs, which are being amortized to interest expense using the effective interest method over the term of each related facility. Remaining unamortized debt issuance costs were $58.9 million and $56.5 million at December 31, 2013 and 2012, respectively. These balances are included in "Other assets" in our Consolidated Balance Sheets. | |||||||||
Indebtedness Repayment Schedule | |||||||||
At December 31, 2013, our indebtedness, including our capital and financing lease obligations but excluding the discount and premium on our senior subordinated debt, is payable over the next five years and thereafter as follows: | |||||||||
In thousands | |||||||||
2014 | $ | 36,156 | |||||||
2015 | 37,634 | ||||||||
2016 | 377,933 | ||||||||
2017 | 36,855 | ||||||||
2018 | 31,899 | ||||||||
Thereafter | 2,776,288 | ||||||||
Total indebtedness | $ | 3,296,765 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note 6. Income Taxes | |||||||||||||
Our income tax provision (benefit) is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Current income tax expense (benefit) | |||||||||||||
Federal | $ | 393 | $ | 57,720 | $ | (12,552 | ) | ||||||
State | 9,864 | 18,034 | 20,801 | ||||||||||
Total current income tax expense | 10,257 | 75,754 | 8,249 | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
Federal | 222,559 | 239,862 | 329,715 | ||||||||||
State | (33 | ) | 15,881 | 12,748 | |||||||||
Total deferred income tax expense | 222,526 | 255,743 | 342,463 | ||||||||||
Total income tax expense | $ | 232,783 | $ | 331,497 | $ | 350,712 | |||||||
For federal income tax purposes, we structured the 2012 divestitures of our Bakken area assets and certain non-core assets as like-kind-exchange transactions for interests acquired in Thompson, Webster, Hartzog Draw and LaBarge fields in 2012 and the CCA Acquisition in 2013 (see Note 2, Acquisitions and Divestitures), thereby deferring the majority of the taxable gain on those divestitures. The increase in current taxes during 2012 is primarily due to the taxable gain recognized in the Bakken Exchange Transaction that we were unable to defer through a like-kind-exchange transaction. | |||||||||||||
At December 31, 2013, we had tax-effected federal net operating loss carryforwards ("NOLs") totaling $20.2 million, state NOLs totaling $41.4 million, an estimated $15.0 million of enhanced oil recovery credits to carry forward related to our tertiary operations, and $34.8 million of alternative minimum tax credits. Our state NOLs expire in various years, starting in 2018, although most do not begin to expire until 2024. Our enhanced oil recovery credits will begin to expire in 2025. | |||||||||||||
At December 31, 2013, we had $13.0 million of excess tax benefits related to stock-based compensation that was not recorded as an increase to additional paid-in capital in the period that the stock award vested and/or was exercised. At the time these excess tax benefits reduce current taxes payable and thus, are deemed to be realized by the Company, a corresponding increase to additional paid-in capital will be recognized. | |||||||||||||
Deferred income taxes reflect the available tax carryforwards and the temporary differences based on tax laws and statutory rates in effect at the December 31, 2013 and 2012 balance sheet dates. We believe that we will be able to realize all of our deferred tax assets at December 31, 2013, and therefore, have provided no valuation allowance against our deferred tax assets. | |||||||||||||
Significant components of our deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31, | |||||||||||||
In thousands | 2013 | 2012 | |||||||||||
Deferred tax assets | |||||||||||||
Loss carryforwards – federal | $ | 20,247 | $ | — | |||||||||
Loss carryforwards – state | 41,379 | 35,007 | |||||||||||
Tax credit carryover | 34,837 | 34,837 | |||||||||||
Derivative contracts | 21,341 | 7,252 | |||||||||||
Enhanced oil recovery credit carryforwards | 14,974 | 17,346 | |||||||||||
Stock-based compensation | 34,635 | 28,387 | |||||||||||
Other | 37,679 | 37,226 | |||||||||||
Total deferred tax assets | 205,092 | 160,055 | |||||||||||
Deferred tax liabilities | |||||||||||||
Property and equipment | (2,541,426 | ) | (2,277,388 | ) | |||||||||
Other | (10,206 | ) | (6,963 | ) | |||||||||
Total deferred tax liabilities | (2,551,632 | ) | (2,284,351 | ) | |||||||||
Total net deferred tax liability | $ | (2,346,540 | ) | $ | (2,124,296 | ) | |||||||
Our reconciliation of income tax expense computed by applying the U.S. federal statutory rate and the reported effective tax rate on income from continuing operations is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Income tax provision calculated using the federal statutory income tax rate | $ | 224,833 | $ | 299,900 | $ | 323,416 | |||||||
State income taxes, net of federal income tax benefit | 13,518 | 30,955 | 29,555 | ||||||||||
Effect of statutory rate change | (4,178 | ) | (429 | ) | (578 | ) | |||||||
Other | (1,390 | ) | 1,071 | (1,681 | ) | ||||||||
Total income tax expense | $ | 232,783 | $ | 331,497 | $ | 350,712 | |||||||
We file consolidated and separate income tax returns in the U.S. federal jurisdiction and in many state jurisdictions. Our income tax returns for tax years ending 2010 through 2012 currently remain subject to examination by the appropriate taxing authorities. We have not paid any significant interest or penalties associated with our income taxes. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Note 7. Stockholders' Equity | |||||||||||||||||
Stock Repurchase Program | |||||||||||||||||
In October 2011, we commenced a common share repurchase program for up to $500 million of Denbury common shares, as approved by the Company's Board of Directors. During 2012 and 2013, the Board of Directors increased the dollar amount of Denbury common shares that could be purchased under the program to an aggregate of $1.162 billion. The program has no pre-established ending date and may be suspended or discontinued at any time. We are not obligated to repurchase any dollar amount or specific number of shares of our common stock under the program. The following table presents a summary of repurchases under our share repurchase program: | |||||||||||||||||
Total repurchases since inception | Year Ended December 31, | ||||||||||||||||
Dollar amounts in thousands, except per-share data | 2013 | 2012 | 2011 | ||||||||||||||
Total amount repurchased | $ | 739,652 | $ | 277,768 | $ | 266,657 | $ | 195,227 | |||||||||
Weighted average price per share | $ | 15.55 | $ | 16.87 | $ | 15.71 | $ | 13.83 | |||||||||
Denbury common stock repurchased (shares) | 47,559,266 | 16,468,648 | 16,978,008 | 14,112,610 | |||||||||||||
As of December 31, 2013, we were authorized to repurchase an additional $422.3 million of common stock under this repurchase program. We account for treasury stock using the cost method and include treasury stock as a component of stockholders’ equity. See Note 14, Subsequent Events, for additional information. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
We have an Employee Stock Purchase Plan that is authorized to issue up to 11,900,000 shares of common stock. As of December 31, 2013, there were 1,601,230 authorized shares remaining to be issued under the plan. In accordance with the plan, eligible employees may contribute up to 10% of their base salary, and we match 75% of their contribution. The combined funds are used to purchase previously unissued Denbury common stock or treasury stock that we purchased in the open market for that purpose, in either case, based on the market value of our common stock at the end of each quarter. We recognize compensation expense for the 75% Company match portion, which totaled $6.5 million, $5.7 million and $4.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. This plan is administered by the Compensation Committee of our Board of Directors. | |||||||||||||||||
401(k) Plan | |||||||||||||||||
We offer a 401(k) plan to which employees may contribute tax-deferred earnings subject to IRS limitations. We match 100% of an employee’s contribution, up to 6% of compensation, as defined by the plan, which is vested immediately. During 2013, 2012 and 2011, our matching contributions to the 401(k) Plan were approximately $9.0 million, $8.0 million and $7.1 million, respectively. |
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||
Note 8. Stock Compensation Plans | |||||||||||||||
Stock Incentive Plans | |||||||||||||||
We have two stock compensation plans. The first plan (providing only for the issuance of stock options) has been in existence since 1995 (the "1995 Plan") and expired in August 2005 (although options granted under the 1995 Plan prior to that time can remain outstanding for up to 10 years). The second plan, the 2004 Omnibus Stock and Incentive Plan (the "2004 Plan"), was approved by the stockholders in May 2004 and will expire in May 2024. The 2004 Plan provides for the issuance of incentive and non-qualified stock options, restricted stock awards, restricted stock units, SARs settled in stock, and performance awards that may be issued to officers, employees, directors and consultants. Awards covering a total of 34.5 million shares of common stock have been authorized for issuance pursuant to the 2004 Plan, of which awards covering no more than 27.2 million shares may be issued in the form of restricted stock or performance-vesting awards. At December 31, 2013, 10.8 million shares were available under the 2004 Plan for future issuance of awards, all of which could be issued in the form of restricted stock or performance vesting awards. Our incentive compensation program is administered by the Compensation Committee of our Board of Directors. | |||||||||||||||
Prior to January 1, 2006, we granted incentive and non-qualified stock options to our employees. Effective January 1, 2006, we completely replaced the use of stock options for employees with SARs settled in stock, as SARs are less dilutive to our stockholders while providing an employee with essentially the same economic benefits as stock options. The stock options and SARs generally become exercisable over a three- or four-year vesting period, with the specific terms of vesting determined at the time of grant based on guidelines established by the Compensation Committee of the Board of Directors. The stock options and SARs expire over terms not to exceed 10 years from the date of grant, 90 days after termination of employment, 90 days or one year after permanent disability, depending on the plan, or one year after the death of the optionee. The stock options and SARs are granted at the fair market value at the time of grant, which is defined in the 2004 Plan as the closing price on the NYSE on the date of grant. | |||||||||||||||
Holders of restricted stock awards have the rights and privileges of owning the shares (including voting rights) except that the holders are not entitled to delivery of a portion thereof until certain requirements are met. Beginning in 2014, restricted stock awards granted by the Company provide the holders with forfeitable dividend rights until the award vests. Restricted stock awards vest over three-to-four-year vesting periods, with the specific terms of vesting determined at the time of grant. | |||||||||||||||
Annually, the Board of Directors grants performance-based equity awards to officers of Denbury. These performance-based awards generally vest over 1.25 to 3.25 years and the number of performance-based shares earned (and eligible to vest) during the performance period will depend upon two sets of factors: (1) our level of success in achieving specifically identified performance targets ("Performance-based Operational Awards") and (2) performance of our stock relative to that of a designated peer group ("Performance-based TSR Awards"). Generally, one-half of the maximum number of shares that could be earned under the performance-based awards will be earned for performance at the designated target levels (100% target vesting levels) or upon any earlier change of control, and twice the number of shares will be earned if the maximum target levels are met. If performance is below the designated minimum levels for all performance targets, no performance-based shares will be earned. Performance-based Operational Awards are valued using the fair market value of Denbury stock on the grant date, and Performance-based TSR Awards are valued using a Monte Carlo simulation. | |||||||||||||||
Stock-based compensation expense associated with our field employees is included in "Lease operating expense," while such expense associated with non-field employees is included in "General and administrative expenses" in the Consolidated Statements of Operations. Stock-based compensation associated with our employees involved in exploration and drilling activities is capitalized as part of "Oil and natural gas properties" in the Consolidated Balance Sheets. | |||||||||||||||
Stock-based compensation costs for the years ended December 31, 2013, 2012 and 2011, are as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Stock-based compensation expensed: | |||||||||||||||
General and administrative expenses | $ | 30,429 | $ | 26,463 | $ | 30,256 | |||||||||
Lease operating expenses | 2,574 | 2,847 | 2,621 | ||||||||||||
Other expenses | — | — | 313 | ||||||||||||
Total stock-based compensation expensed | 33,003 | 29,310 | 33,190 | ||||||||||||
Stock-based compensation capitalized | 9,088 | 8,587 | 6,998 | ||||||||||||
Total cost of stock-based compensation arrangements | $ | 42,091 | $ | 37,897 | $ | 40,188 | |||||||||
Income tax benefit recognized for stock-based compensation arrangements | $ | 12,541 | $ | 11,284 | $ | 12,612 | |||||||||
Stock Options and SARs | |||||||||||||||
The fair value of each SAR award is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions noted in the following table. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life of stock options and SARs granted was derived from examination of our historical option grants and subsequent exercises. The contractual terms (cliff vesting and graded vesting) are evaluated separately for the expected life, as the exercise behavior for each is different. Expected volatilities are based on the historical volatility of our common stock. Implied volatility was not used in this analysis, as our tradable call option terms are short and the trading volume is low. | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted average fair value of SARs granted | $ | 6.72 | $ | 8.9 | $ | 9.68 | |||||||||
Risk-free interest rate | 0.67 | % | 0.79 | % | 1.74 | % | |||||||||
Expected life | 3.6 to 4.8 years | 4.0 to 5.0 years | 4.0 to 5.0 years | ||||||||||||
Expected volatility | 50.4 | % | 64.9 | % | 63.3 | % | |||||||||
Dividend yield | — | % | — | % | — | % | |||||||||
The following is a summary of our stock option and SAR activity: | |||||||||||||||
Number | Weighted | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||
of Awards | Average | (in years) | (in thousands) | ||||||||||||
Exercise Price | |||||||||||||||
Outstanding at December 31, 2012 | 10,445,135 | $ | 14.75 | ||||||||||||
Granted | 720,859 | 16.95 | |||||||||||||
Exercised | (1,970,426 | ) | 9.33 | ||||||||||||
Forfeited | (113,509 | ) | 17.31 | ||||||||||||
Expired | (95,144 | ) | 22.74 | ||||||||||||
Outstanding at December 31, 2013 | 8,986,915 | 16 | 3.3 | $ | 19,319 | ||||||||||
Exercisable at end of period | 6,632,141 | $ | 15.51 | 2.7 | $ | 18,970 | |||||||||
The following is a summary of the total intrinsic value of stock options and SARs exercised and grant-date fair value of stock options and SARs vested: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Intrinsic value of stock options exercised | $ | 17,287 | $ | 17,315 | $ | 20,463 | |||||||||
Grant-date fair value of stock options and SARs vested | 12,852 | 26,391 | 11,416 | ||||||||||||
As of December 31, 2013, there was $8.0 million of total compensation cost to be recognized in future periods related to nonvested stock option and SAR share-based compensation arrangements. The cost is expected to be recognized over a weighted-average period of 1.7 years. The following is a summary of cash received from stock option exercises under share-based payment arrangements and tax benefits realized from the exercises of stock options and SARs: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Cash received from stock option exercises | $ | 5,487 | $ | 6,022 | $ | 4,685 | |||||||||
Tax benefit realized for the exercises of stock options and SARs | 437 | 458 | 539 | ||||||||||||
Restricted Stock – 2004 Plan | |||||||||||||||
As of December 31, 2013, there was $30.6 million of unrecognized compensation expense related to nonvested restricted stock grants. This unrecognized compensation cost is expected to be recognized over a weighted-average period of 2.1 years. The following is a summary of the total vesting date fair value of restricted stock under the 2004 Plan: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Fair value of restricted stock vested | $ | 21,529 | $ | 22,332 | $ | 12,355 | |||||||||
A summary of the status of our nonvested restricted stock grants issued under our 2004 Plan and the changes during the year ended December 31, 2013 is presented below: | |||||||||||||||
Number | Weighted | ||||||||||||||
of Shares | Average | ||||||||||||||
Grant-Date | |||||||||||||||
Fair Value | |||||||||||||||
Nonvested at December 31, 2012 | 3,406,207 | $ | 15.6 | ||||||||||||
Granted | 1,805,467 | 16.96 | |||||||||||||
Vested | (1,310,347 | ) | 16.21 | ||||||||||||
Forfeited | (165,917 | ) | 17.23 | ||||||||||||
Nonvested at December 31, 2013 | 3,735,410 | 15.97 | |||||||||||||
Restricted Stock – Legacy Encore Plan | |||||||||||||||
In February 2010, prior to the consummation of the merger with Encore, Encore issued a restricted stock grant to its employees under the Encore Acquisition Company 2008 Incentive Stock Plan ("Encore Plan"). At the time of the merger with Encore, the shares were converted into shares of Denbury restricted stock. The shares vest ratably over a four-year graded vesting period; however, legacy Encore employees who terminated their employment for Good Reason, as defined by Encore’s legacy Employee Severance Protection Plan, automatically vested in their awards upon termination. The remaining nonvested restricted stock issued under the Encore Plan is scheduled to vest during the first quarter of 2014. The following is a summary of the total vesting date fair value of restricted stock under the Encore Plan: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Fair value of restricted stock vested | $ | 512 | $ | 584 | $ | 2,259 | |||||||||
A summary of the status of the non-vested restricted stock grants under the Encore Plan and the changes during the year ended December 31, 2013 is presented below: | |||||||||||||||
Number | Weighted | ||||||||||||||
of Shares | Average | ||||||||||||||
Grant-Date | |||||||||||||||
Fair Value | |||||||||||||||
Nonvested at December 31, 2012 | 56,258 | $ | 15.43 | ||||||||||||
Vested | (31,140 | ) | 15.43 | ||||||||||||
Forfeited | (3,377 | ) | 15.43 | ||||||||||||
Nonvested at December 31, 2013 | 21,741 | 15.43 | |||||||||||||
Performance-Based Equity Awards | |||||||||||||||
During 2013 and 2012, we granted Performance-Based Operational Awards and Performance-Based TSR Awards to our officers. As of December 31, 2013, there was $5.4 million of unrecognized compensation expense related to nonvested performance-based equity awards. This unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.6 years. The range of assumptions used in the Monte Carlo simulation valuation approach for Performance-based TSR Awards, which were granted for the first time during 2012, are as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted average fair value of Performance-based TSR Award granted | $ | 20.08 | $ | 24.68 | |||||||||||
Risk-free interest rate | 0.41 | % | 0.42 | % | |||||||||||
Expected life | 3.0 years | 2.8 years | |||||||||||||
Expected volatility | 42.3 | % | 45.2 | % | |||||||||||
Dividend yield | — | % | — | % | |||||||||||
A summary of the status of the nonvested performance-based equity awards (presented at the target level) during the year ended December 31, 2013 is as follows: | |||||||||||||||
Performance-Based | Performance-Based | ||||||||||||||
Operational Awards | TSR Awards | ||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||
of Awards | Average | of Awards | Average | ||||||||||||
Grant-Date Fair Value | Grant-Date Fair Value | ||||||||||||||
Nonvested at December 31, 2012 | 100,193 | $ | 17.27 | 86,917 | $ | 24.68 | |||||||||
Granted | 215,258 | 16.77 | 209,474 | 20.08 | |||||||||||
Vested (1) | (100,193 | ) | 17.27 | — | — | ||||||||||
Forfeited | (5,784 | ) | 16.77 | — | — | ||||||||||
Nonvested at December 31, 2013 | 209,474 | 16.77 | 296,391 | 21.43 | |||||||||||
-1 | During 2013, the 2012 annual Performance-based Operational Awards vested, and award holders received shares equivalent to 136% of the number of target-level shares. | ||||||||||||||
The following is a summary of the total vesting date fair value of performance-based equity awards: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Vesting date fair value of Performance-based Operational Awards | $ | 2,541 | $ | 2,191 | $ | 10,892 | |||||||||
Commodity_Derivative_Contracts
Commodity Derivative Contracts | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Commodity Derivative Contracts | ' | ||||||||||||||||||||||||||
Note 9. Commodity Derivative Contracts | |||||||||||||||||||||||||||
We do not apply hedge accounting treatment to our oil and natural gas derivative contracts; therefore, the changes in the fair values of these instruments are recognized in income in the period of change. These fair value changes, along with the cash settlements of expired contracts, are shown under "Commodity derivatives expense (income)" in our Consolidated Statements of Operations. | |||||||||||||||||||||||||||
From time to time, we enter into various oil and natural gas derivative contracts to provide an economic hedge of our exposure to commodity price risk associated with anticipated future oil and natural gas production. We do not hold or issue derivative financial instruments for trading purposes. These contracts have consisted of price floors, collars and fixed price swaps. The production that we hedge has varied from year to year depending on our levels of debt and financial strength and expectation of future commodity prices. We currently employ a strategy to hedge a portion of our forecasted production approximately 18 months to two years in the future from the current quarter, as we believe it is important to protect our future cash flow to provide a level of assurance for our capital spending in those future periods in light of current worldwide economic uncertainties and commodity price volatility. | |||||||||||||||||||||||||||
We manage and control market and counterparty credit risk through established internal control procedures that are reviewed on an ongoing basis. We attempt to minimize credit risk exposure to counterparties through formal credit policies, monitoring procedures, and diversification, and all of our commodity derivative contracts are with parties that are lenders under our Bank Credit Agreement. As of December 31, 2013, all of our outstanding derivative contracts were subject to enforceable master netting arrangements whereby payables on those contracts can be offset against receivables from separate derivative contracts with the same counterparty. It is our policy to classify derivative assets and liabilities on a gross basis on our balance sheets, even if the contracts are subject to enforceable master netting arrangements. | |||||||||||||||||||||||||||
The following table summarizes our commodity derivative contracts, none of which are classified as hedging instruments: | |||||||||||||||||||||||||||
Year | Months | Type of Contract | Pricing Index | Volume (2) | Contract Prices (1) | ||||||||||||||||||||||
Range | Weighted Average Price | ||||||||||||||||||||||||||
Swap | Floor | Ceiling | |||||||||||||||||||||||||
Oil Contracts: | |||||||||||||||||||||||||||
2014 | Jan – Mar | Swap | NYMEX | 58,000 | $ | 91.67 | – | 95.95 | $ | 93.53 | $ | — | $ | — | |||||||||||||
Apr – June | Swap | NYMEX | 58,000 | 91.67 | – | 95.95 | 93.53 | — | — | ||||||||||||||||||
July – Sept | Swap | NYMEX | 58,000 | 90 | – | 93.5 | 92.52 | — | — | ||||||||||||||||||
Oct – Dec | Swap | NYMEX | 58,000 | 90 | – | 93.5 | 92.52 | — | — | ||||||||||||||||||
2015 | Jan – Mar | Collar | NYMEX | 38,000 | $ | 80 | – | 100.9 | $ | — | $ | 80 | $ | 96.96 | |||||||||||||
Jan – Mar | Collar | LLS | 20,000 | 85 | – | 104 | — | 85 | 101.45 | ||||||||||||||||||
Apr – June | Collar | NYMEX | 38,000 | 80 | – | 95.25 | — | 80 | 94.62 | ||||||||||||||||||
Apr – June | Collar | LLS | 20,000 | 85 | – | 103 | — | 85 | 102.01 | ||||||||||||||||||
July – Sept | Collar | NYMEX | 38,000 | 80 | – | 95.25 | — | 80 | 95.04 | ||||||||||||||||||
July – Sept | Collar | LLS | 20,000 | 85 | – | 102.6 | — | 85 | 100.69 | ||||||||||||||||||
Natural Gas Contracts: | |||||||||||||||||||||||||||
2014 | Jan – Dec | Collar | NYMEX | 14,000 | $ | 4 | – | 4.47 | $ | — | $ | 4 | $ | 4.45 | |||||||||||||
-1 | Contract prices are stated in $/Bbl and $/MMBtu for oil and natural gas contracts, respectively. | ||||||||||||||||||||||||||
-2 | Contract volumes are stated in Bbl/d and MMBtu/d for oil and natural gas contracts, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 10. Fair Value Measurements | |||||||||||||||||
The FASC Fair Value Measurements and Disclosures topic defines fair value as the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We are able to classify fair value balances based on the observability of those inputs. The FASC establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities as of the reporting date. | ||||||||||||||||
• | Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Instruments in this category include non-exchange-traded oil and natural gas derivatives that are based on NYMEX pricing. Our swap contracts are valued using a discounted cash flow model based upon forward commodity price curves. Our costless collars are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contractual prices for the underlying instruments, including maturity, quoted forward prices for commodities, interest rates, volatility factors and credit worthiness, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | ||||||||||||||||
• | Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At December 31, 2013, instruments in this category include non-exchange-traded oil collars that are based on regional pricing other than NYMEX (i.e., Louisiana Light Sweet). Our costless collars are valued using the Black-Scholes model, which is described above. We obtain and ensure the appropriateness of the significant inputs to the calculation, including contractual prices for the underlying instruments, maturity, forward prices for commodities, interest rates, volatility factors and credit worthiness, and the fair value estimate is prepared and reviewed on a quarterly basis. Implied volatilities utilized in the valuation of Level 3 instruments are developed using a benchmark, which is considered a significant unobservable input. A one percent increase or decrease in implied volatility would result in a change of approximately $0.1 million in the fair value of these instruments as of December 31, 2013. | ||||||||||||||||
We adjust the valuations from the valuation model for nonperformance risk, using our estimate of the counterparty’s credit quality for asset positions and our credit quality for liability positions. We use multiple sources of third-party credit data in determining counterparty nonperformance risk, including credit default swaps. | |||||||||||||||||
The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
Inputs | |||||||||||||||||
In thousands | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
December 31, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||
Oil and natural gas derivative contracts – long-term | — | 3,034 | 6,908 | 9,942 | |||||||||||||
Total Assets | $ | — | $ | 3,039 | $ | 6,908 | $ | 9,947 | |||||||||
Liabilities: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | (53,822 | ) | $ | — | $ | (53,822 | ) | |||||||
Oil and natural gas derivative contracts – long-term | — | (3,214 | ) | (199 | ) | (3,413 | ) | ||||||||||
Total Liabilities | $ | — | $ | (57,036 | ) | $ | (199 | ) | $ | (57,235 | ) | ||||||
December 31, 2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | 19,477 | $ | — | $ | 19,477 | |||||||||
Oil and natural gas derivative contracts – long-term | — | 36 | — | 36 | |||||||||||||
Total Assets | $ | — | $ | 19,513 | $ | — | $ | 19,513 | |||||||||
Liabilities: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | (2,659 | ) | $ | — | $ | (2,659 | ) | |||||||
Oil and natural gas derivative contracts – long-term | — | (23,781 | ) | — | (23,781 | ) | |||||||||||
Total Liabilities | $ | — | $ | (26,440 | ) | $ | — | $ | (26,440 | ) | |||||||
The following table summarizes the changes in the fair value of our Level 3 assets and liabilities for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2013 | 2012 | |||||||||||||||
Fair value of Level 3 instruments, beginning of year | $ | — | $ | 23,950 | |||||||||||||
Fair value adjustments on commodity derivatives | 6,709 | 3,921 | |||||||||||||||
Receipt on settlements of commodity derivatives | — | (27,871 | ) | ||||||||||||||
Fair value of Level 3 instruments, end of year | $ | 6,709 | $ | — | |||||||||||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains relating to assets still held at the reporting date | $ | 6,709 | $ | — | |||||||||||||
Since we do not use hedge accounting for our commodity derivative contracts, any gains and losses on our assets and liabilities are included in "Commodity derivatives expense (income)" in the accompanying Consolidated Statements of Operations. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
During 2012, we recorded a $15.1 million impairment charge for an investment in the preferred stock of an entity that was created to develop a gasification plant (in which we would offtake its CO2 to use in our tertiary oil operations) as a result of this project not moving forward. This charge is classified as "Impairment of assets" in the Consolidated Statement of Operations for the year ended December 31, 2012. | |||||||||||||||||
Other Fair Value Measurements | |||||||||||||||||
The carrying value of our revolving bank credit facility approximates fair value, as it is subject to short-term floating interest rates that approximate the rates available to us for those periods. We use a market approach to determine fair value of our fixed-rate debt using observable market data. The fair values of our senior subordinated notes are based on quoted market prices. The estimated fair value of our total long-term debt as of December 31, 2013 and 2012, excluding pipeline financing and capital lease obligations, is $2,956.8 million and $2,956.9 million, respectively. We have other financial instruments consisting primarily of cash, cash equivalents, short-term receivables and payables that approximate fair value due to the nature of the instrument and the relatively short maturities. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments and Contingencies | ' | ||||||||||||
Note 11. Commitments and Contingencies | |||||||||||||
Leases | |||||||||||||
We lease office space, equipment and vehicles that have non-cancelable lease terms. Currently, our outstanding leases have terms up to 12 years. We have subleased part of the office space included in our operating leases for which we received rental payments. The following table summarizes operating lease payments paid and received during the periods indicated: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Operating lease payments | $ | 37,211 | $ | 33,606 | $ | 52,317 | |||||||
Sublease rental receipts | 2,237 | 2,685 | 2,398 | ||||||||||
In addition, we expect to receive approximately $14.6 million for 2014 through 2019 under these sublease agreements. | |||||||||||||
The following table summarizes by year the remaining non-cancelable future payments under these leases as of December 31, 2013: | |||||||||||||
In thousands | Pipeline | ||||||||||||
and Capital Leases | |||||||||||||
2014 | $ | 62,929 | |||||||||||
2015 | 62,254 | ||||||||||||
2016 | 60,819 | ||||||||||||
2017 | 55,409 | ||||||||||||
2018 | 50,750 | ||||||||||||
Thereafter | 280,272 | ||||||||||||
Total minimum lease payments | 572,433 | ||||||||||||
Less: Amount representing interest | (215,748 | ) | |||||||||||
Present value of minimum lease payments | $ | 356,685 | |||||||||||
In thousands | Operating | ||||||||||||
Leases | |||||||||||||
2014 | $ | 11,695 | |||||||||||
2015 | 12,542 | ||||||||||||
2016 | 12,510 | ||||||||||||
2017 | 12,774 | ||||||||||||
2018 | 12,730 | ||||||||||||
Thereafter | 67,832 | ||||||||||||
Total minimum lease payments | $ | 130,083 | |||||||||||
Commitments | |||||||||||||
We have entered into long-term commitments to purchase CO2 that are either non-cancelable or cancelable only upon the occurrence of specified future events. The commitments continue for up to 20 years. The price we will pay for CO2 generally varies depending on the amount of CO2 delivered and the price of oil. Our annual commitment under these contracts could range from $100 million to $170 million per year, assuming a $90 per Bbl NYMEX oil price. | |||||||||||||
We are party to long-term contracts that require us to deliver CO2 to our industrial CO2 customers at various contracted prices, plus we have a CO2 delivery obligation to Genesis related to three CO2 volumetric production payments ("VPPs"). Based upon the maximum amounts deliverable as stated in the industrial contracts and the VPPs, we estimate that we may be obligated to deliver up to 367 Bcf of CO2 to these customers over the next 15 years. The maximum volume required in any given year is approximately 119 MMcf/d, which we judge to be minor given the size of our Jackson Dome proven CO2 reserves at December 31, 2013, our current production capabilities and our projected levels of CO2 usage for our own tertiary flooding program. | |||||||||||||
In conjunction with the August 2011 Riley Ridge acquisition, we assumed the 20-year helium supply contract under which the original participants in Riley Ridge agreed to supply helium to a third-party purchaser. After the commencement date, the contract provides for the delivery of a minimum contracted quantity of helium, subject to adjustment after start-up of the Riley Ridge gas processing facility, which, if not supplied in accordance with the terms of the contract, may obligate us to compensate the third-party helium purchaser for the amount of the shortfall in an amount not to exceed $8.0 million per year, or $46.0 million over the term of the contract. | |||||||||||||
Delhi Field Release | |||||||||||||
In June 2013, a release of well fluids, consisting of a mixture of carbon dioxide, saltwater, natural gas and oil, was discovered and reported within an area of the Denbury-operated Delhi Field located in northern Louisiana. Denbury immediately took remedial action to stop the release and contain and recover well fluids in the affected area. We have determined that the release originated from one or more wells in the affected area of the field that we believed had been previously and properly plugged and abandoned by a prior operator of the field. We completed our remediation efforts during the fourth quarter of 2013; however, we will continue to monitor the area to ensure the remediation efforts were successful. | |||||||||||||
During the year ended December 31, 2013, we recorded $114.0 million of lease operating expenses related to this release in our Consolidated Statement of Operations, and as of December 31, 2013, we had a corresponding $22.0 million liability classified as "Accounts payable and accrued liabilities" in our Consolidated Balance Sheet. These expenses represent our current estimate of the costs related to this release, including remediation costs, based on actual costs incurred through December 31, 2013 of approximately $92.0 million, plus the Company's estimate of future costs related to the satisfaction of known claims and liabilities. Due to the possibility of new claims being asserted in the future in connection with the release, as well as variability in the estimated cost to continue to monitor the area to ensure the remediation efforts were successful, we cannot reliably estimate at this time the full extent of the costs that may ultimately be incurred by the Company related to this release. Although the Company maintains insurance policies that we believe cover certain of the costs, damages and claims related to the release, and we currently and preliminarily estimate that one-third to two-thirds of our current cost estimate may be recoverable under such insurance policies, we have not reached any agreement with our insurance carriers as to recoverable amounts, and accordingly have not recognized any insurance recoveries in our financial statements as of December 31, 2013. Insurance recoveries will be recognized in our financial statements during the period received or at the time receipt is determined to be virtually certain. | |||||||||||||
Litigation | |||||||||||||
We are involved in various lawsuits, claims and regulatory proceedings incidental to our businesses. While we currently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations or cash flows, litigation is subject to inherent uncertainties. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on our net income in the period in which the ruling occurs. We provide accruals for litigation and claims if we determine that a loss is probable and the amount can be reasonably estimated. | |||||||||||||
Other Contingencies | |||||||||||||
We are subject to audits in the various states in which we operate for sales and use taxes and severance taxes, and from time to time receive assessments for potential taxes that we may owe. In the past, settlement of these matters has not had a material adverse financial impact on us, and currently we have no material assessments for potential taxes. | |||||||||||||
We are subject to various possible contingencies that arise primarily from interpretation of federal and state laws and regulations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Although we believe that we have complied with the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. In addition, production rates, marketing and environmental matters are subject to regulation by various federal and state agencies. |
Additional_Balance_Sheet_Detai
Additional Balance Sheet Details | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Supplemental Balance Sheet Disclosures [Text Block] | ' | ||||||||
Note 12. Additional Balance Sheet Details | |||||||||
Allowance for Doubtful Accounts | |||||||||
We record an allowance for doubtful accounts for receivables that we determine to be uncollectible based on the specific identification basis. The allowance for doubtful accounts, which is netted against "Trade and other receivables" on the Consolidated Balance Sheets, was $0.3 million at December 31, 2013 and 2012. | |||||||||
Accounts Payable and Accrued Liabilities | |||||||||
December 31, | |||||||||
In thousands | 2013 | 2012 | |||||||
Accrued exploration and development costs | $ | 100,564 | $ | 109,939 | |||||
Accrued interest | 68,871 | 60,698 | |||||||
Accounts payable | 63,263 | 86,051 | |||||||
Accrued lease operating expenses | 59,762 | 23,862 | |||||||
Accrued compensation | 55,043 | 48,451 | |||||||
Taxes payable | 28,019 | 27,523 | |||||||
Other | 35,021 | 58,144 | |||||||
Total | $ | 410,543 | $ | 414,668 | |||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||||||
Cash Flow, Supplemental Disclosure | ' | ||||||||||||
Note 13. Supplemental Cash Flow Information | |||||||||||||
Supplemental Cash Flow Information | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Supplemental cash flow information: | |||||||||||||
Cash paid for interest, expensed | $ | 117,442 | $ | 137,950 | $ | 137,259 | |||||||
Cash paid for interest, capitalized | 79,253 | 77,432 | 60,540 | ||||||||||
Cash paid for income taxes | 28,895 | 99,194 | 45,912 | ||||||||||
Cash received from income tax refunds | (17,087 | ) | (38,004 | ) | (24,677 | ) | |||||||
Noncash investing activities: | |||||||||||||
Increase in asset retirement obligations | 26,946 | 56,290 | 24,694 | ||||||||||
Increase (decrease) in liabilities for capital expenditures | (18,321 | ) | (26,882 | ) | 74,697 | ||||||||
Increase in restricted cash (1) | — | 1,262,559 | — | ||||||||||
Decrease in restricted cash (2) | 1,050,328 | 212,544 | — | ||||||||||
-1 | During 2012, $212.5 million of proceeds from the sale of certain non-core assets in the Gulf Coast Region and $1.05 billion of the cash proceeds from the Bakken Exchange Transaction were paid by the respective purchaser directly to a qualified intermediary to facilitate a like-kind-exchange transaction for federal income tax purposes. See Note 2, Acquisitions and Divestitures, for additional details regarding these transactions. | ||||||||||||
-2 | During 2012 and 2013, proceeds from the sales of our oil and natural gas property dispositions in 2012, which were held by a qualified intermediary, were released in 2012 to fund the Thompson Field acquisition and in 2013 primarily to fund a portion of the CCA acquisition and certain post-closing costs under the Bakken Exchange Transaction. See Note 2, Acquisitions and Divestitures, for additional details regarding these transactions. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 14. Subsequent Events | |
Stock Repurchase Program | |
Between January 1, 2014 and February 20, 2014, the Company repurchased an additional 11.8 million shares of Denbury common stock under the share repurchase program for $191.6 million, or $16.17 per share. See Note 7, Stockholders' Equity, for additional information regarding the Company's share repurchase program. | |
Equity Award Grant | |
In January 2014, we granted equity incentive awards to our employees under the 2004 Plan. The grants included 1,633,898 shares of restricted stock valued at $16.55 per share (the closing price of Denbury’s common stock on January 3, 2014). The awards generally vest 33% per year over a three-year period. | |
Dividend Declaration | |
On January 28, 2014, the Board of Directors declared a dividend of $0.0625 per share on our common stock, payable to stockholders of record at the close of business on February 25, 2014. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Organization and Nature of Operations | ' | |
Organization and Nature of Operations | ||
Denbury Resources Inc., a Delaware corporation, is a growing, dividend-paying, domestic oil and natural gas company. Our primary focus is on enhanced oil recovery utilizing CO2, and our operations are focused in two key operating areas: the Gulf Coast and Rocky Mountain regions. Our goal is to increase the value of our acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with the most significant emphasis relating to tertiary recovery operations. | ||
Principles of Reporting and Consolidation | ' | |
Principles of Reporting and Consolidation | ||
The consolidated financial statements herein have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of Denbury and entities in which we hold a controlling financial interest. Undivided interests in oil and gas joint ventures are consolidated on a proportionate basis. All intercompany balances and transactions have been eliminated. | ||
Use Of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of certain assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during each reporting period. Management believes its estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates underlying these financial statements include (1) the fair value of financial derivative instruments; (2) the estimated quantities of proved oil and natural gas reserves used to compute depletion of oil and natural gas properties, the related present value of estimated future net cash flows therefrom and the ceiling test; (3) the estimated quantities of proved and probable CO2 reserves used to compute depletion of CO2 properties; (4) accruals related to oil and natural gas sales volumes and revenues, capital expenditures and lease operating expenses; (5) the estimated costs and timing of future asset retirement obligations; (6) estimates made in the calculation of income taxes; and (7) estimates made in determining the fair values for purchase price allocations, including goodwill. While management is not aware of any significant revisions to any of its estimates, there will likely be future revisions to its estimates resulting from matters such as revisions in estimated oil and natural gas volumes, changes in ownership interests, payouts, joint venture audits, re-allocations by purchasers or pipelines, or other corrections and adjustments common in the oil and natural gas industry, many of which require retroactive application. These types of adjustments cannot be currently estimated and will be recorded in the period in which the adjustment occurs. | ||
Reclassifications | ' | |
Reclassifications | ||
Certain prior period amounts have been reclassified to conform to the current year presentation. Such reclassifications had no impact on our reported net income, current assets, total assets, current liabilities, total liabilities or stockholders' equity. | ||
Cash Equivalents | ' | |
Cash Equivalents | ||
We consider all highly liquid investments to be cash equivalents if they have maturities of three months or less at the date of purchase. | ||
Restricted Cash | ' | |
Restricted Cash | ||
Restricted cash at December 31, 2012 consisted of proceeds from the exchange of oil and gas properties with Exxon Mobil Corporation and its wholly-owned subsidiary, XTO Energy Inc., (see Note 2, Acquisitions and Divestitures) previously held by a qualified intermediary and which were restricted for application towards future acquisitions to enable like-kind-exchange transactions for federal income tax purposes, which exchange transactions took place in 2013. | ||
Oil and Natural Gas Properties | ' | |
Oil and Natural Gas Properties | ||
Capitalized Costs. We follow the full cost method of accounting for oil and natural gas properties. Under this method, all costs related to acquisitions, exploration and development of oil and natural gas reserves are capitalized and accumulated in a single cost center representing our activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and nonproductive wells, capitalized interest on qualifying projects, and general and administrative expenses directly related to exploration and development activities, and do not include any costs related to production, general corporate overhead or similar activities. We assign the purchase price of oil and natural gas properties we acquire to proved and unevaluated properties based on the estimated fair values as defined in the Financial Accounting Standards Board Codification ("FASC") Fair Value Measurements and Disclosures topic. Proceeds received from disposals are credited against accumulated costs except when the sale represents a significant disposal of reserves, in which case a gain or loss would be recognized. A disposal of 25% or more of our proved reserves would be considered significant. | ||
Depletion and Depreciation. The costs capitalized, including production equipment and future development costs, are depleted or depreciated using the unit-of-production method, based on proved oil and natural gas reserves as determined by independent petroleum engineers. Oil and natural gas reserves are converted to equivalent units on a basis of 6,000 cubic feet of natural gas to one barrel of crude oil. | ||
Under full cost accounting, we may exclude certain unevaluated costs from the amortization base pending determination of whether proved reserves can be assigned to such properties. The costs classified as unevaluated are transferred to the full cost amortization base as the properties are developed, tested and evaluated. | ||
Ceiling Test. The net capitalized costs of oil and natural gas properties are limited to the lower of unamortized cost or the cost center ceiling. The cost center ceiling is defined as (1) the present value of estimated future net revenues from proved oil and natural gas reserves before future abandonment costs (discounted at 10%), based on the average first-day-of-the-month oil and natural gas price for each month during the 12-month period prior to the end of a particular reporting period; plus (2) the cost of properties not being amortized; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) related income tax effects. Our future net revenues from proved oil and natural gas reserves are not reduced for development costs related to the cost of drilling for and developing CO2 reserves nor those related to the cost of constructing CO2 pipelines, as those costs have previously been incurred by the Company. Therefore, we include in the ceiling test, as a reduction of future net revenues, that portion of our capitalized CO2 costs related to CO2 reserves and CO2 pipelines that we estimate will be consumed in the process of producing our proved oil and natural gas reserves. The fair value of our oil and natural gas derivative contracts is not included in the ceiling test, as we do not designate these contracts as hedge instruments for accounting purposes. The cost center ceiling test is prepared quarterly. We did not have a ceiling test write-down during the years ended December 31, 2013, 2012 or 2011. | ||
Joint Interest Operations. Substantially all of our oil and natural gas exploration and production activities are conducted jointly with others. These financial statements reflect only our proportionate interest in such activities, and any amounts due from other partners are included in trade receivables. | ||
Tertiary Injection Costs. Our tertiary operations are conducted in reservoirs that have already produced significant amounts of oil over many years; however, in accordance with the SEC rules and regulations for recording proved reserves, we cannot recognize proved reserves associated with enhanced recovery techniques, such as CO2 injection, until there is a production response to the injected CO2, or unless the field is analogous to an existing flood. | ||
We capitalize, as a development cost, injection costs in fields that are in their development stage, which means we have not yet seen incremental oil production due to the CO2 injections (i.e., a production response). These capitalized development costs are included in our unevaluated property costs if there are not already proved tertiary reserves in that field. After we see a production response to the CO2 injections (i.e., the production stage), injection costs are expensed as incurred, and once proved reserves are recognized, previously deferred unevaluated development costs become subject to depletion. | ||
Property, Plant, and Equipment Policy | ' | |
CO2 Properties | ||
We own and produce CO2 reserves, a non-hydrocarbon resource, that are used in our tertiary oil recovery operations on our own behalf and on behalf of other interest owners in enhanced recovery fields, with a portion sold to third-party industrial users. We record revenue from our sales of CO2 to third parties when it is produced and sold. Expenses related to the production of CO2 are allocated between volumes sold to third parties and volumes consumed internally that are directly related to our tertiary production. The expenses related to third-party sales are recorded in "CO2 discovery and operating expenses," and the expenses related to internal use are recorded in "Lease operating expenses" in the Consolidated Statements of Operations, or are capitalized as oil and gas properties in our Consolidated Balance Sheets, depending on the stage of the tertiary flood that is receiving the CO2 (see Tertiary Injection Costs above for further discussion). | ||
Costs incurred to search for CO2 are expensed as incurred until proved or probable reserves are established. Once proved or probable reserves are established, costs incurred to obtain those reserves are capitalized and classified as "CO2 properties" on our Consolidated Balance Sheets. Capitalized CO2 costs are aggregated by geologic formation and depleted on a unit-of-production basis over proved and probable reserves. | ||
During 2010 and 2011, we acquired interests in the Riley Ridge Federal Unit ("Riley Ridge"), which contains helium and CO2 reserves (non-hydrocarbon resources) as well as natural gas reserves (a hydrocarbon resource). It is not possible to separately identify the capitalized costs related to the development of each product in the commingled gas stream; thus, these costs are allocated to each product based on the relative future revenue value of each product line and classified accordingly on the Consolidated Balance Sheets. | ||
The portion of our capitalized CO2 costs related to CO2 reserves and CO2 pipelines that we estimate will be consumed in the process of producing our proved oil reserves is included in the ceiling test as a reduction to future net revenues. The remaining net capitalized CO2 properties, equipment and pipelines balance is evaluated for impairment by comparing the net carrying costs to the expected future net revenues from (1) the production of our probable and possible tertiary oil reserves and (2) the sale of CO2 to third-party industrial users. | ||
Pipelines and Plants | ||
CO2 used in our tertiary floods is transported to our fields through CO2 pipelines. Costs of CO2 pipelines under construction are not depreciated until the pipelines are placed into service. Pipelines are depreciated on a straight-line basis over their estimated useful lives, which range from 15 to 50 years. | ||
Pipelines and plants include the Riley Ridge gas processing facility in southwestern Wyoming. We placed the Riley Ridge gas processing facility in service in the fourth quarter of 2013. Individual components of the plant are depreciated on a straight-line basis over their estimated useful lives, which range from 20 to 50 years. | ||
Property and Equipment – Other | ||
Other property and equipment, which includes furniture and fixtures, vehicles, computer equipment and software, and capitalized leases, is depreciated principally on a straight-line basis over each asset's estimated useful life. Vehicles and furniture and fixtures are generally depreciated over a useful life of five to ten years, and computer equipment and software are generally depreciated over a useful life of three to five years. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining lease term. | ||
Leased property meeting certain capital lease criteria is capitalized, and the present value of the related lease payments is recorded as a liability. Amortization of capitalized leased assets is computed using the straight-line method over the shorter of the estimated useful life or the initial lease term. | ||
Maintenance and repair costs that do not extend the useful life of the property or equipment are charged to expense as incurred. | ||
Asset Retirement Obligations | ' | |
Asset Retirement Obligations | ||
In general, our future asset retirement obligations relate to future costs associated with plugging and abandoning our oil, natural gas and CO2 wells, removing equipment and facilities from leased acreage, and returning land to its original condition. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred, discounted to its present value using our credit-adjusted-risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. Revisions to estimated retirement obligations will result in an adjustment to the related capitalized asset and corresponding liability. If the liability is settled for an amount other than the recorded amount, the difference is recorded to the full cost pool, unless significant. | ||
Asset retirement obligations are estimated at the present value of expected future net cash flows and are discounted using our credit-adjusted-risk-free rate. We utilize unobservable inputs in the estimation of asset retirement obligations that include, but are not limited to, costs of labor and materials, profits on costs of labor and materials, the effect of inflation on estimated costs, and the discount rate. Accordingly, asset retirement obligations are considered a Level 3 measurement under the FASC Fair Value Measurements and Disclosures topic. | ||
Commodity Derivative Contracts | ' | |
Commodity Derivative Contracts | ||
We utilize oil and natural gas derivative contracts to mitigate our exposure to commodity price risk associated with our future oil and natural gas production. These derivative contracts have historically consisted of options, in the form of price floors or collars, and fixed price swaps. Our derivative financial instruments are recorded on the balance sheet as either an asset or a liability measured at fair value. We do not apply hedge accounting to our oil and natural gas derivative contracts; accordingly, the changes in the fair value of these instruments are recognized in our Consolidated Statements of Operations in the period of change. | ||
We do not apply hedge accounting treatment to our oil and natural gas derivative contracts; therefore, the changes in the fair values of these instruments are recognized in income in the period of change. These fair value changes, along with the cash settlements of expired contracts, are shown under "Commodity derivatives expense (income)" in our Consolidated Statements of Operations. | ||
From time to time, we enter into various oil and natural gas derivative contracts to provide an economic hedge of our exposure to commodity price risk associated with anticipated future oil and natural gas production. We do not hold or issue derivative financial instruments for trading purposes. These contracts have consisted of price floors, collars and fixed price swaps. The production that we hedge has varied from year to year depending on our levels of debt and financial strength and expectation of future commodity prices. We currently employ a strategy to hedge a portion of our forecasted production approximately 18 months to two years in the future from the current quarter, as we believe it is important to protect our future cash flow to provide a level of assurance for our capital spending in those future periods in light of current worldwide economic uncertainties and commodity price volatility. | ||
We manage and control market and counterparty credit risk through established internal control procedures that are reviewed on an ongoing basis. We attempt to minimize credit risk exposure to counterparties through formal credit policies, monitoring procedures, and diversification, and all of our commodity derivative contracts are with parties that are lenders under our Bank Credit Agreement. As of December 31, 2013, all of our outstanding derivative contracts were subject to enforceable master netting arrangements whereby payables on those contracts can be offset against receivables from separate derivative contracts with the same counterparty. It is our policy to classify derivative assets and liabilities on a gross basis on our balance sheets, even if the contracts are subject to enforceable master netting arrangements. | ||
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk | ' | |
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk | ||
Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash equivalents, trade and accrued production receivables, and the derivative instruments discussed above. Our cash equivalents represent high-quality securities placed with various investment-grade institutions. This investment practice limits our exposure to concentrations of credit risk. Our trade and accrued production receivables are dispersed among various customers and purchasers; therefore, concentrations of credit risk are limited. We evaluate the credit ratings of our purchasers, and if customers are considered a credit risk, letters of credit are the primary security obtained to support lines of credit. We attempt to minimize our credit risk exposure to the counterparties of our oil and natural gas derivative contracts through formal credit policies, monitoring procedures and diversification. All of our derivative contracts are with banks, which are part of the syndicate of banks in our bank credit facility, or with their affiliates. There are no margin requirements with the counterparties of our derivative contracts. | ||
Goodwill and Other Intangible Assets | ' | |
Goodwill and Other Intangible Assets | ||
Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized; rather, it is tested for impairment annually during the fourth quarter and when events or changes in circumstances indicate that it is more likely than not the fair value of a reporting unit with goodwill has been reduced below its carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. However, we have only one reporting unit. To assess impairment, we have the option to qualitatively assess if it is more likely than not that the fair value of the reporting unit is less than the carrying value. Absent a qualitative assessment, or, through the qualitative assessment, if we determine it is more likely than not that the fair value of the reporting unit is less than the carrying value, a quantitative assessment is prepared to calculate the fair market value of the reporting unit. If it is determined that the fair value of the reporting unit is less than the carrying value, the recorded goodwill is impaired to its implied fair value with a charge to operating expense. We completed our annual goodwill impairment assessment during the fourth quarter of 2013 and did not record any goodwill impairment during 2013, nor have we recorded a goodwill impairment historically. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Revenue Recognition. Revenue is recognized at the time oil and natural gas is produced and sold. Any amounts due from purchasers of oil and natural gas are included in accrued production receivable. | ||
We follow the sales method of accounting for our oil and natural gas revenue, whereby we recognize revenue on all oil or natural gas sold to our purchasers regardless of whether the sales are proportionate to our ownership in the property. A receivable or liability is recognized only to the extent that we have an imbalance on a specific property greater than the expected remaining proved reserves. As of December 31, 2013 and 2012, our aggregate oil and natural gas imbalances were not material to our consolidated financial statements. | ||
We recognize revenue and expenses of purchased producing properties at the time we assume effective control, commencing from either the closing or purchase agreement date, depending on the underlying terms and agreements. We follow the same methodology in reverse when we sell properties by recognizing revenue and expenses of the sold properties until the closing date. | ||
Income Taxes | ' | |
Income Taxes | ||
Income taxes are accounted for using the asset and liability method, under which deferred income taxes are recognized for the future tax effects of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities using the enacted statutory tax rates in effect at year end. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is recorded when it is more likely than not that the benefit from the deferred tax asset will not be realized. | ||
We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | ||
Net Income Per Common Share | ' | |
Net Income Per Common Share | ||
Basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is calculated in the same manner, but includes the impact of potentially dilutive securities. Potentially dilutive securities consist of stock options, stock appreciation rights ("SARs"), nonvested restricted stock and nonvested performance equity awards. For each of the three years in the period ended December 31, 2013, there were no adjustments to net income for purposes of calculating basic and diluted net income per common share. | ||
For purposes of calculating diluted weighted average common shares, the nonvested restricted stock is included in the computation using the treasury stock method, with the deemed proceeds equal to the average unrecognized compensation during the period, adjusted for any estimated future tax consequences recognized directly in equity. Stock options and SARs of 3.6 million, 4.1 million and 5.0 million shares for the years ended December 31, 2013, 2012 and 2011, respectively, were not included in the computation of diluted net income per share as their effect would have been antidilutive. | ||
Environmental and Litigation Contingencies | ' | |
Environmental and Litigation Contingencies | ||
The Company makes judgments and estimates in recording liabilities for contingencies such as environmental remediation or ongoing litigation. Liabilities are recorded when it is both probable that a loss has been incurred and such loss is reasonably estimable. Assessments of liabilities are based on information obtained from independent and in-house experts, loss experience in similar situations, actual costs incurred, and other case-by-case factors. Any related insurance recoveries are recognized in our financial statements during the period received or at the time receipt is determined to be virtually certain. | ||
Recently Adopted Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
Balance Sheet-Offsetting Assets and Liabilities. In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-11, Disclosure about Offsetting Assets and Liabilities ("ASU 2011-11"). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities ("ASU 2013-01"). The update clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with the Derivatives and Hedging topic of the FASC, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. ASU 2011-11 and ASU 2013-01 became effective for our fiscal year beginning January 1, 2013, and have been applied retrospectively for all comparative periods presented. The adoption of ASU 2011-11 and ASU 2013-01 did not affect our consolidated financial statements, but required additional disclosures in the notes thereto. | ||
Fair Value Measurements and Disclosures | ' | |
The FASC Fair Value Measurements and Disclosures topic defines fair value as the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We are able to classify fair value balances based on the observability of those inputs. The FASC establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: | ||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities as of the reporting date. | |
• | Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Instruments in this category include non-exchange-traded oil and natural gas derivatives that are based on NYMEX pricing. Our swap contracts are valued using a discounted cash flow model based upon forward commodity price curves. Our costless collars are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contractual prices for the underlying instruments, including maturity, quoted forward prices for commodities, interest rates, volatility factors and credit worthiness, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | |
• | Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At December 31, 2013, instruments in this category include non-exchange-traded oil collars that are based on regional pricing other than NYMEX (i.e., Louisiana Light Sweet). Our costless collars are valued using the Black-Scholes model, which is described above. We obtain and ensure the appropriateness of the significant inputs to the calculation, including contractual prices for the underlying instruments, maturity, forward prices for commodities, interest rates, volatility factors and credit worthiness, and the fair value estimate is prepared and reviewed on a quarterly basis. Implied volatilities utilized in the valuation of Level 3 instruments are developed using a benchmark, which is considered a significant unobservable input. A one percent increase or decrease in implied volatility would result in a change of approximately $0.1 million in the fair value of these instruments as of December 31, 2013. | |
We adjust the valuations from the valuation model for nonperformance risk, using our estimate of the counterparty’s credit quality for asset positions and our credit quality for liability positions. We use multiple sources of third-party credit data in determining counterparty nonperformance risk, including credit default swaps. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Changes in goodwill | ' | ||||||||||||
The following table summarizes the changes in goodwill for the years ended December 31, 2013 and 2012: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | |||||||||||
Beginning of year balance | $ | 1,283,590 | $ | 1,236,318 | |||||||||
Goodwill related to the Thompson Field acquisition | — | 47,272 | |||||||||||
End of year balance | $ | 1,283,590 | $ | 1,283,590 | |||||||||
Schedule of Finite-Lived Intangible Assets | ' | ||||||||||||
The following table summarizes the intangible asset value and related accumulated amortization as of December 31, 2013 and 2012: | |||||||||||||
In thousands | Helium Production Rights | CO2 Purchase Contract | Total | ||||||||||
31-Dec-13 | |||||||||||||
Intangible asset value | $ | 55,266 | $ | 33,931 | $ | 89,197 | |||||||
Accumulated amortization | — | (1,319 | ) | (1,319 | ) | ||||||||
Net book value as of December 31, 2013 | $ | 55,266 | $ | 32,612 | $ | 87,878 | |||||||
December 31, 2012 | |||||||||||||
Intangible asset value | $ | 55,266 | $ | 33,901 | $ | 89,167 | |||||||
Accumulated amortization | — | — | — | ||||||||||
Net book value as of December 31, 2012 | $ | 55,266 | $ | 33,901 | $ | 89,167 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||
At December 31, 2013, our estimated amortization expense for our intangible assets subject to amortization over the next five years is as follows: | |||||||||||||
In thousands | |||||||||||||
2014 | $ | 2,748 | |||||||||||
2015 | 2,843 | ||||||||||||
2016 | 2,915 | ||||||||||||
2017 | 2,915 | ||||||||||||
2018 | 3,568 | ||||||||||||
Weighted average shares used in basic and diluted net income per common share | ' | ||||||||||||
The following is a reconciliation of the weighted average shares used in the basic and diluted net income per common share calculations for the periods indicated: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Basic weighted average common shares | 366,659 | 385,205 | 396,023 | ||||||||||
Potentially dilutive securities: | |||||||||||||
Restricted stock, stock options, SARs and performance-based equity awards | 3,218 | 3,733 | 4,935 | ||||||||||
Diluted weighted average common shares | 369,877 | 388,938 | 400,958 | ||||||||||
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Acquisition [Line Items] | ' | ||||||||
Business Acquisition, Pro Forma Information | ' | ||||||||
Unaudited Pro Forma Acquisition Information. The following combined pro forma total revenues and other income and net income are presented as if the previously discussed CCA acquisition, Bakken Exchange Transaction and Thompson Field acquisition had occurred on January 1, 2012: | |||||||||
Year Ended December 31, | |||||||||
In thousands, except per-share data | 2013 | 2012 | |||||||
Pro forma total revenues and other income | $ | 2,599,301 | $ | 2,570,829 | |||||
Pro forma net income | 437,616 | 582,033 | |||||||
Pro forma net income per common share | |||||||||
Basic | $ | 1.19 | $ | 1.51 | |||||
Diluted | 1.18 | 1.5 | |||||||
Cedar Creek Anticline [Member] | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Schedule of Business Acquisitions | ' | ||||||||
The following table presents a summary of the fair value of assets acquired and liabilities assumed in the CCA acquisition: | |||||||||
In thousands | |||||||||
Consideration | |||||||||
Cash consideration (1) | $ | 1,001,707 | |||||||
Fair value of assets acquired and liabilities assumed | |||||||||
Oil and natural gas properties | |||||||||
Proved properties | 783,507 | ||||||||
Unevaluated properties | 222,820 | ||||||||
Other assets | 2,589 | ||||||||
Asset retirement obligations | (7,209 | ) | |||||||
$ | 1,001,707 | ||||||||
-1 | See Note 6, Income Taxes, for additional information regarding the like-kind-exchange transaction utilized to fund this purchase and Note 13, Supplemental Cash Flow Information, for supplemental cash flow information regarding the cash payment. | ||||||||
Bakken Exchange Transaction [Member] | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Schedule of Business Acquisitions | ' | ||||||||
The following table presents a summary of the fair value of assets acquired and liabilities assumed in the Bakken Exchange Transaction: | |||||||||
In thousands | |||||||||
Consideration | |||||||||
Fair value of net assets transferred | $ | 1,866,107 | |||||||
Less: Fair value of assets acquired and liabilities assumed | |||||||||
Cash (1) | 1,277,041 | ||||||||
Oil and natural gas properties | |||||||||
Proved properties | 182,289 | ||||||||
Unevaluated properties | 90,690 | ||||||||
CO2 properties | 314,505 | ||||||||
Other property and equipment | 23,424 | ||||||||
Other assets | 477 | ||||||||
Other liabilities | (8,528 | ) | |||||||
Asset retirement obligations | (13,791 | ) | |||||||
Fair value of net assets acquired | $ | 1,866,107 | |||||||
-1 | See Note 13, Supplemental Cash Flow Information, for additional information regarding the placement of $1.05 billion of the proceeds in a qualified trust in order to enable a like-kind exchange transaction for federal income tax purposes. | ||||||||
Thompson Field [Member] | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Schedule of Business Acquisitions | ' | ||||||||
The following table presents a summary of the fair value of assets acquired and liabilities assumed in the Thompson Field acquisition: | |||||||||
In thousands | |||||||||
Consideration | |||||||||
Cash consideration (1) | $ | 366,179 | |||||||
Less: Fair value of assets acquired and liabilities assumed | |||||||||
Oil and natural gas properties | |||||||||
Proved properties | 305,233 | ||||||||
Unevaluated properties | 12,023 | ||||||||
Pipelines and plants | 2,000 | ||||||||
Other assets | 2,957 | ||||||||
Asset retirement obligations | (3,306 | ) | |||||||
318,907 | |||||||||
Goodwill | $ | 47,272 | |||||||
-1 | See Note 6, Income Taxes, for additional information regarding the like-kind-exchange transaction utilized to fund this purchase and Note 13, Supplemental Cash Flow Information, for supplemental cash flow information regarding the cash payment. | ||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Table Text Block Supplement [Abstract] | ' | ||||||||
Changes In Asset Retirement Obligations | ' | ||||||||
The following table summarizes the changes in our asset retirement obligations for the years ended December 31, 2013 and 2012: | |||||||||
Year Ended December 31, | |||||||||
In thousands | 2013 | 2012 | |||||||
Beginning asset retirement obligation | $ | 106,430 | $ | 93,468 | |||||
Liabilities incurred and assumed during period | 22,216 | 50,956 | |||||||
Revisions in estimated retirement obligations | 4,730 | 5,334 | |||||||
Liabilities settled and sold during period | (15,523 | ) | (50,556 | ) | |||||
Accretion expense | 8,448 | 7,228 | |||||||
Ending asset retirement obligation | 126,301 | 106,430 | |||||||
Less: current asset retirement obligation (1) | (6,413 | ) | (3,700 | ) | |||||
Long-term asset retirement obligation | $ | 119,888 | $ | 102,730 | |||||
-1 | Included in "Accounts payable and accrued liabilities" in our Consolidated Balance Sheets. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||||||||||
Summary of net property and equipment balances | ' | ||||||||||||||||||||
The following table presents a summary of our net property and equipment balances as of December 31, 2013 and 2012: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
In thousands | 2013 | 2012 | |||||||||||||||||||
Oil and natural gas properties | |||||||||||||||||||||
Proved properties | $ | 8,945,326 | $ | 6,963,211 | |||||||||||||||||
Unevaluated properties | 780,481 | 809,154 | |||||||||||||||||||
Total | 9,725,807 | 7,772,365 | |||||||||||||||||||
Accumulated depletion and depreciation | (3,219,500 | ) | (2,827,256 | ) | |||||||||||||||||
Net oil and natural gas properties | 6,506,307 | 4,945,109 | |||||||||||||||||||
CO2 properties | |||||||||||||||||||||
CO2 properties | 1,117,167 | 1,032,653 | |||||||||||||||||||
Accumulated depletion and depreciation | (150,968 | ) | (119,784 | ) | |||||||||||||||||
Net CO2 properties | 966,199 | 912,869 | |||||||||||||||||||
Pipelines and plants | |||||||||||||||||||||
CO2 pipelines (1) | 1,681,774 | 1,632,255 | |||||||||||||||||||
Plants | 527,786 | 402,871 | |||||||||||||||||||
Total | 2,209,560 | 2,035,126 | |||||||||||||||||||
Accumulated depletion and depreciation | (134,697 | ) | (99,185 | ) | |||||||||||||||||
Net plants and pipelines | 2,074,863 | 1,935,941 | |||||||||||||||||||
Other property and equipment | |||||||||||||||||||||
Other property and equipment | 466,969 | 417,207 | |||||||||||||||||||
Accumulated depletion and depreciation | (163,060 | ) | (134,016 | ) | |||||||||||||||||
Net other property and equipment | 303,909 | 283,191 | |||||||||||||||||||
Net property and equipment | $ | 9,851,278 | $ | 8,077,110 | |||||||||||||||||
-1 | Amounts include $48.4 million of CO2 pipelines at December 31, 2013 that were under construction and not subject to depreciation during 2013. | ||||||||||||||||||||
Summary of unevaluated properties excluded from oil and natural gas properties being amortized | ' | ||||||||||||||||||||
A summary of the unevaluated property costs excluded from oil and natural gas properties being amortized at December 31, 2013, and the year in which the costs were incurred follows: | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Costs Incurred During: | |||||||||||||||||||||
In thousands | 2013 | 2012 | 2011 | 2010 and prior | Total | ||||||||||||||||
Property acquisition costs | $ | 215,822 | $ | 109,275 | $ | 12,543 | $ | 317,226 | $ | 654,866 | |||||||||||
Exploration and development | 41,157 | 22,080 | 7,408 | 10,825 | 81,470 | ||||||||||||||||
Capitalized interest | 25,222 | 12,084 | 6,018 | 821 | 44,145 | ||||||||||||||||
Total | $ | 282,201 | $ | 143,439 | $ | 25,969 | $ | 328,872 | $ | 780,481 | |||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Components of Long-Term Debt | ' | ||||||||
The following long-term debt and capital lease obligations were outstanding as of December 31, 2013 and 2012: | |||||||||
December 31, | |||||||||
In thousands | 2013 | 2012 | |||||||
Bank Credit Agreement | $ | 340,000 | $ | 700,000 | |||||
9½% Senior Subordinated Notes due 2016, including premium of $9,118 | — | 234,038 | |||||||
9¾% Senior Subordinated Notes due 2016, including discount of $13,569 | — | 412,781 | |||||||
8¼% Senior Subordinated Notes due 2020 | 996,273 | 996,273 | |||||||
6 3/8% Senior Subordinated Notes due 2021 | 400,000 | 400,000 | |||||||
4 5/8% Senior Subordinated Notes due 2023 | 1,200,000 | — | |||||||
Other Subordinated Notes, including premium of $16 and $25, respectively | 3,823 | 3,832 | |||||||
Pipeline financings | 228,167 | 236,244 | |||||||
Capital lease obligations | 128,519 | 158,260 | |||||||
Total | 3,296,782 | 3,141,428 | |||||||
Less: current obligations | (36,157 | ) | (36,966 | ) | |||||
Long-term debt and capital lease obligations | $ | 3,260,625 | $ | 3,104,462 | |||||
Indebtedness repayable over the next five years and thereafter | ' | ||||||||
At December 31, 2013, our indebtedness, including our capital and financing lease obligations but excluding the discount and premium on our senior subordinated debt, is payable over the next five years and thereafter as follows: | |||||||||
In thousands | |||||||||
2014 | $ | 36,156 | |||||||
2015 | 37,634 | ||||||||
2016 | 377,933 | ||||||||
2017 | 36,855 | ||||||||
2018 | 31,899 | ||||||||
Thereafter | 2,776,288 | ||||||||
Total indebtedness | $ | 3,296,765 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Provision (Benefit) | ' | ||||||||||||
Our income tax provision (benefit) is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Current income tax expense (benefit) | |||||||||||||
Federal | $ | 393 | $ | 57,720 | $ | (12,552 | ) | ||||||
State | 9,864 | 18,034 | 20,801 | ||||||||||
Total current income tax expense | 10,257 | 75,754 | 8,249 | ||||||||||
Deferred income tax expense (benefit) | |||||||||||||
Federal | 222,559 | 239,862 | 329,715 | ||||||||||
State | (33 | ) | 15,881 | 12,748 | |||||||||
Total deferred income tax expense | 222,526 | 255,743 | 342,463 | ||||||||||
Total income tax expense | $ | 232,783 | $ | 331,497 | $ | 350,712 | |||||||
Deferred Tax Assets And Liabilities | ' | ||||||||||||
Significant components of our deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31, | |||||||||||||
In thousands | 2013 | 2012 | |||||||||||
Deferred tax assets | |||||||||||||
Loss carryforwards – federal | $ | 20,247 | $ | — | |||||||||
Loss carryforwards – state | 41,379 | 35,007 | |||||||||||
Tax credit carryover | 34,837 | 34,837 | |||||||||||
Derivative contracts | 21,341 | 7,252 | |||||||||||
Enhanced oil recovery credit carryforwards | 14,974 | 17,346 | |||||||||||
Stock-based compensation | 34,635 | 28,387 | |||||||||||
Other | 37,679 | 37,226 | |||||||||||
Total deferred tax assets | 205,092 | 160,055 | |||||||||||
Deferred tax liabilities | |||||||||||||
Property and equipment | (2,541,426 | ) | (2,277,388 | ) | |||||||||
Other | (10,206 | ) | (6,963 | ) | |||||||||
Total deferred tax liabilities | (2,551,632 | ) | (2,284,351 | ) | |||||||||
Total net deferred tax liability | $ | (2,346,540 | ) | $ | (2,124,296 | ) | |||||||
Income Tax Provision (Benefit) Continuing Operations Income Tax Reconciliation | ' | ||||||||||||
Our reconciliation of income tax expense computed by applying the U.S. federal statutory rate and the reported effective tax rate on income from continuing operations is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Income tax provision calculated using the federal statutory income tax rate | $ | 224,833 | $ | 299,900 | $ | 323,416 | |||||||
State income taxes, net of federal income tax benefit | 13,518 | 30,955 | 29,555 | ||||||||||
Effect of statutory rate change | (4,178 | ) | (429 | ) | (578 | ) | |||||||
Other | (1,390 | ) | 1,071 | (1,681 | ) | ||||||||
Total income tax expense | $ | 232,783 | $ | 331,497 | $ | 350,712 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Summary of Share Repurchases Table | ' | ||||||||||||||||
The following table presents a summary of repurchases under our share repurchase program: | |||||||||||||||||
Total repurchases since inception | Year Ended December 31, | ||||||||||||||||
Dollar amounts in thousands, except per-share data | 2013 | 2012 | 2011 | ||||||||||||||
Total amount repurchased | $ | 739,652 | $ | 277,768 | $ | 266,657 | $ | 195,227 | |||||||||
Weighted average price per share | $ | 15.55 | $ | 16.87 | $ | 15.71 | $ | 13.83 | |||||||||
Denbury common stock repurchased (shares) | 47,559,266 | 16,468,648 | 16,978,008 | 14,112,610 | |||||||||||||
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Stock Compensation Plans [Line Items] | ' | ||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ||||||||||||||
Stock-based compensation costs for the years ended December 31, 2013, 2012 and 2011, are as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Stock-based compensation expensed: | |||||||||||||||
General and administrative expenses | $ | 30,429 | $ | 26,463 | $ | 30,256 | |||||||||
Lease operating expenses | 2,574 | 2,847 | 2,621 | ||||||||||||
Other expenses | — | — | 313 | ||||||||||||
Total stock-based compensation expensed | 33,003 | 29,310 | 33,190 | ||||||||||||
Stock-based compensation capitalized | 9,088 | 8,587 | 6,998 | ||||||||||||
Total cost of stock-based compensation arrangements | $ | 42,091 | $ | 37,897 | $ | 40,188 | |||||||||
Income tax benefit recognized for stock-based compensation arrangements | $ | 12,541 | $ | 11,284 | $ | 12,612 | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted average fair value of SARs granted | $ | 6.72 | $ | 8.9 | $ | 9.68 | |||||||||
Risk-free interest rate | 0.67 | % | 0.79 | % | 1.74 | % | |||||||||
Expected life | 3.6 to 4.8 years | 4.0 to 5.0 years | 4.0 to 5.0 years | ||||||||||||
Expected volatility | 50.4 | % | 64.9 | % | 63.3 | % | |||||||||
Dividend yield | — | % | — | % | — | % | |||||||||
Summary of stock option and SARs activity | ' | ||||||||||||||
The following is a summary of our stock option and SAR activity: | |||||||||||||||
Number | Weighted | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||
of Awards | Average | (in years) | (in thousands) | ||||||||||||
Exercise Price | |||||||||||||||
Outstanding at December 31, 2012 | 10,445,135 | $ | 14.75 | ||||||||||||
Granted | 720,859 | 16.95 | |||||||||||||
Exercised | (1,970,426 | ) | 9.33 | ||||||||||||
Forfeited | (113,509 | ) | 17.31 | ||||||||||||
Expired | (95,144 | ) | 22.74 | ||||||||||||
Outstanding at December 31, 2013 | 8,986,915 | 16 | 3.3 | $ | 19,319 | ||||||||||
Exercisable at end of period | 6,632,141 | $ | 15.51 | 2.7 | $ | 18,970 | |||||||||
Disclosure of intrinsic value of stock options exercised and grant-date fair value of awards vested | ' | ||||||||||||||
The following is a summary of the total intrinsic value of stock options and SARs exercised and grant-date fair value of stock options and SARs vested: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Intrinsic value of stock options exercised | $ | 17,287 | $ | 17,315 | $ | 20,463 | |||||||||
Grant-date fair value of stock options and SARs vested | 12,852 | 26,391 | 11,416 | ||||||||||||
Schedule of Cash Proceeds Received from Share-based Payment Awards | ' | ||||||||||||||
The following is a summary of cash received from stock option exercises under share-based payment arrangements and tax benefits realized from the exercises of stock options and SARs: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Cash received from stock option exercises | $ | 5,487 | $ | 6,022 | $ | 4,685 | |||||||||
Tax benefit realized for the exercises of stock options and SARs | 437 | 458 | 539 | ||||||||||||
Performance equity awards [Member] | ' | ||||||||||||||
Stock Compensation Plans [Line Items] | ' | ||||||||||||||
Schedule of Nonvested Performance-based Units Activity | ' | ||||||||||||||
A summary of the status of the nonvested performance-based equity awards (presented at the target level) during the year ended December 31, 2013 is as follows: | |||||||||||||||
Performance-Based | Performance-Based | ||||||||||||||
Operational Awards | TSR Awards | ||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||
of Awards | Average | of Awards | Average | ||||||||||||
Grant-Date Fair Value | Grant-Date Fair Value | ||||||||||||||
Nonvested at December 31, 2012 | 100,193 | $ | 17.27 | 86,917 | $ | 24.68 | |||||||||
Granted | 215,258 | 16.77 | 209,474 | 20.08 | |||||||||||
Vested (1) | (100,193 | ) | 17.27 | — | — | ||||||||||
Forfeited | (5,784 | ) | 16.77 | — | — | ||||||||||
Nonvested at December 31, 2013 | 209,474 | 16.77 | 296,391 | 21.43 | |||||||||||
-1 | During 2013, the 2012 annual Performance-based Operational Awards vested, and award holders received shares equivalent to 136% of the number of target-level shares. | ||||||||||||||
Performance-based TSR Awards [Member] | ' | ||||||||||||||
Stock Compensation Plans [Line Items] | ' | ||||||||||||||
Summary of Share-Based Award Valuation Assumptions | ' | ||||||||||||||
The range of assumptions used in the Monte Carlo simulation valuation approach for Performance-based TSR Awards, which were granted for the first time during 2012, are as follows: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted average fair value of Performance-based TSR Award granted | $ | 20.08 | $ | 24.68 | |||||||||||
Risk-free interest rate | 0.41 | % | 0.42 | % | |||||||||||
Expected life | 3.0 years | 2.8 years | |||||||||||||
Expected volatility | 42.3 | % | 45.2 | % | |||||||||||
Dividend yield | — | % | — | % | |||||||||||
Performance-based Operational Award [Member] | ' | ||||||||||||||
Stock Compensation Plans [Line Items] | ' | ||||||||||||||
Summary of Vesting Date Fair Value Of Awards | ' | ||||||||||||||
The following is a summary of the total vesting date fair value of performance-based equity awards: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Vesting date fair value of Performance-based Operational Awards | $ | 2,541 | $ | 2,191 | $ | 10,892 | |||||||||
2004 Omnibus Stock and Incentive Plan | Restricted Stock [Member] | ' | ||||||||||||||
Stock Compensation Plans [Line Items] | ' | ||||||||||||||
Summary of Vesting Date Fair Value Of Awards | ' | ||||||||||||||
The following is a summary of the total vesting date fair value of restricted stock under the 2004 Plan: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Fair value of restricted stock vested | $ | 21,529 | $ | 22,332 | $ | 12,355 | |||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||||
A summary of the status of our nonvested restricted stock grants issued under our 2004 Plan and the changes during the year ended December 31, 2013 is presented below: | |||||||||||||||
Number | Weighted | ||||||||||||||
of Shares | Average | ||||||||||||||
Grant-Date | |||||||||||||||
Fair Value | |||||||||||||||
Nonvested at December 31, 2012 | 3,406,207 | $ | 15.6 | ||||||||||||
Granted | 1,805,467 | 16.96 | |||||||||||||
Vested | (1,310,347 | ) | 16.21 | ||||||||||||
Forfeited | (165,917 | ) | 17.23 | ||||||||||||
Nonvested at December 31, 2013 | 3,735,410 | 15.97 | |||||||||||||
Encore Plan [Member] | Restricted Stock [Member] | ' | ||||||||||||||
Stock Compensation Plans [Line Items] | ' | ||||||||||||||
Summary of Vesting Date Fair Value Of Awards | ' | ||||||||||||||
The following is a summary of the total vesting date fair value of restricted stock under the Encore Plan: | |||||||||||||||
Year Ended December 31, | |||||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||||
Fair value of restricted stock vested | $ | 512 | $ | 584 | $ | 2,259 | |||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||||
A summary of the status of the non-vested restricted stock grants under the Encore Plan and the changes during the year ended December 31, 2013 is presented below: | |||||||||||||||
Number | Weighted | ||||||||||||||
of Shares | Average | ||||||||||||||
Grant-Date | |||||||||||||||
Fair Value | |||||||||||||||
Nonvested at December 31, 2012 | 56,258 | $ | 15.43 | ||||||||||||
Vested | (31,140 | ) | 15.43 | ||||||||||||
Forfeited | (3,377 | ) | 15.43 | ||||||||||||
Nonvested at December 31, 2013 | 21,741 | 15.43 | |||||||||||||
Commodity_Derivative_Contracts1
Commodity Derivative Contracts (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Commodity derivative contracts not classified as hedging instruments | ' | ||||||||||||||||||||||||||
The following table summarizes our commodity derivative contracts, none of which are classified as hedging instruments: | |||||||||||||||||||||||||||
Year | Months | Type of Contract | Pricing Index | Volume (2) | Contract Prices (1) | ||||||||||||||||||||||
Range | Weighted Average Price | ||||||||||||||||||||||||||
Swap | Floor | Ceiling | |||||||||||||||||||||||||
Oil Contracts: | |||||||||||||||||||||||||||
2014 | Jan – Mar | Swap | NYMEX | 58,000 | $ | 91.67 | – | 95.95 | $ | 93.53 | $ | — | $ | — | |||||||||||||
Apr – June | Swap | NYMEX | 58,000 | 91.67 | – | 95.95 | 93.53 | — | — | ||||||||||||||||||
July – Sept | Swap | NYMEX | 58,000 | 90 | – | 93.5 | 92.52 | — | — | ||||||||||||||||||
Oct – Dec | Swap | NYMEX | 58,000 | 90 | – | 93.5 | 92.52 | — | — | ||||||||||||||||||
2015 | Jan – Mar | Collar | NYMEX | 38,000 | $ | 80 | – | 100.9 | $ | — | $ | 80 | $ | 96.96 | |||||||||||||
Jan – Mar | Collar | LLS | 20,000 | 85 | – | 104 | — | 85 | 101.45 | ||||||||||||||||||
Apr – June | Collar | NYMEX | 38,000 | 80 | – | 95.25 | — | 80 | 94.62 | ||||||||||||||||||
Apr – June | Collar | LLS | 20,000 | 85 | – | 103 | — | 85 | 102.01 | ||||||||||||||||||
July – Sept | Collar | NYMEX | 38,000 | 80 | – | 95.25 | — | 80 | 95.04 | ||||||||||||||||||
July – Sept | Collar | LLS | 20,000 | 85 | – | 102.6 | — | 85 | 100.69 | ||||||||||||||||||
Natural Gas Contracts: | |||||||||||||||||||||||||||
2014 | Jan – Dec | Collar | NYMEX | 14,000 | $ | 4 | – | 4.47 | $ | — | $ | 4 | $ | 4.45 | |||||||||||||
-1 | Contract prices are stated in $/Bbl and $/MMBtu for oil and natural gas contracts, respectively. | ||||||||||||||||||||||||||
-2 | Contract volumes are stated in Bbl/d and MMBtu/d for oil and natural gas contracts, respectively. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair value hierarchy of financial assets and liabilities | ' | ||||||||||||||||
The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets | Observable | Inputs | |||||||||||||||
Inputs | |||||||||||||||||
In thousands | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
December 31, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||
Oil and natural gas derivative contracts – long-term | — | 3,034 | 6,908 | 9,942 | |||||||||||||
Total Assets | $ | — | $ | 3,039 | $ | 6,908 | $ | 9,947 | |||||||||
Liabilities: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | (53,822 | ) | $ | — | $ | (53,822 | ) | |||||||
Oil and natural gas derivative contracts – long-term | — | (3,214 | ) | (199 | ) | (3,413 | ) | ||||||||||
Total Liabilities | $ | — | $ | (57,036 | ) | $ | (199 | ) | $ | (57,235 | ) | ||||||
December 31, 2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | 19,477 | $ | — | $ | 19,477 | |||||||||
Oil and natural gas derivative contracts – long-term | — | 36 | — | 36 | |||||||||||||
Total Assets | $ | — | $ | 19,513 | $ | — | $ | 19,513 | |||||||||
Liabilities: | |||||||||||||||||
Oil and natural gas derivative contracts – current | $ | — | $ | (2,659 | ) | $ | — | $ | (2,659 | ) | |||||||
Oil and natural gas derivative contracts – long-term | — | (23,781 | ) | — | (23,781 | ) | |||||||||||
Total Liabilities | $ | — | $ | (26,440 | ) | $ | — | $ | (26,440 | ) | |||||||
The changes in the fair value of Denbury's Level 3 assets and liabilities for the twelve months ended | ' | ||||||||||||||||
The following table summarizes the changes in the fair value of our Level 3 assets and liabilities for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2013 | 2012 | |||||||||||||||
Fair value of Level 3 instruments, beginning of year | $ | — | $ | 23,950 | |||||||||||||
Fair value adjustments on commodity derivatives | 6,709 | 3,921 | |||||||||||||||
Receipt on settlements of commodity derivatives | — | (27,871 | ) | ||||||||||||||
Fair value of Level 3 instruments, end of year | $ | 6,709 | $ | — | |||||||||||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains relating to assets still held at the reporting date | $ | 6,709 | $ | — | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Table Text Block [Abstract] | ' | ||||||||||||
Schedule of operating lease payments paid and received | ' | ||||||||||||
The following table summarizes operating lease payments paid and received during the periods indicated: | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Operating lease payments | $ | 37,211 | $ | 33,606 | $ | 52,317 | |||||||
Sublease rental receipts | 2,237 | 2,685 | 2,398 | ||||||||||
Schedule of capital long-term commitments which require future minimum rental payments | ' | ||||||||||||
The following table summarizes by year the remaining non-cancelable future payments under these leases as of December 31, 2013: | |||||||||||||
In thousands | Pipeline | ||||||||||||
and Capital Leases | |||||||||||||
2014 | $ | 62,929 | |||||||||||
2015 | 62,254 | ||||||||||||
2016 | 60,819 | ||||||||||||
2017 | 55,409 | ||||||||||||
2018 | 50,750 | ||||||||||||
Thereafter | 280,272 | ||||||||||||
Total minimum lease payments | 572,433 | ||||||||||||
Less: Amount representing interest | (215,748 | ) | |||||||||||
Present value of minimum lease payments | $ | 356,685 | |||||||||||
Schedule of operating long-term commitments which require future minimum lease payments | ' | ||||||||||||
In thousands | Operating | ||||||||||||
Leases | |||||||||||||
2014 | $ | 11,695 | |||||||||||
2015 | 12,542 | ||||||||||||
2016 | 12,510 | ||||||||||||
2017 | 12,774 | ||||||||||||
2018 | 12,730 | ||||||||||||
Thereafter | 67,832 | ||||||||||||
Total minimum lease payments | $ | 130,083 | |||||||||||
Additional_Balance_Sheet_Detai1
Additional Balance Sheet Details (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities | ' | ||||||||
Accounts Payable and Accrued Liabilities | |||||||||
December 31, | |||||||||
In thousands | 2013 | 2012 | |||||||
Accrued exploration and development costs | $ | 100,564 | $ | 109,939 | |||||
Accrued interest | 68,871 | 60,698 | |||||||
Accounts payable | 63,263 | 86,051 | |||||||
Accrued lease operating expenses | 59,762 | 23,862 | |||||||
Accrued compensation | 55,043 | 48,451 | |||||||
Taxes payable | 28,019 | 27,523 | |||||||
Other | 35,021 | 58,144 | |||||||
Total | $ | 410,543 | $ | 414,668 | |||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||||||
Schedule of Cash Flow, Supplemental Disclosure | ' | ||||||||||||
Supplemental Cash Flow Information | |||||||||||||
Year Ended December 31, | |||||||||||||
In thousands | 2013 | 2012 | 2011 | ||||||||||
Supplemental cash flow information: | |||||||||||||
Cash paid for interest, expensed | $ | 117,442 | $ | 137,950 | $ | 137,259 | |||||||
Cash paid for interest, capitalized | 79,253 | 77,432 | 60,540 | ||||||||||
Cash paid for income taxes | 28,895 | 99,194 | 45,912 | ||||||||||
Cash received from income tax refunds | (17,087 | ) | (38,004 | ) | (24,677 | ) | |||||||
Noncash investing activities: | |||||||||||||
Increase in asset retirement obligations | 26,946 | 56,290 | 24,694 | ||||||||||
Increase (decrease) in liabilities for capital expenditures | (18,321 | ) | (26,882 | ) | 74,697 | ||||||||
Increase in restricted cash (1) | — | 1,262,559 | — | ||||||||||
Decrease in restricted cash (2) | 1,050,328 | 212,544 | — | ||||||||||
-1 | During 2012, $212.5 million of proceeds from the sale of certain non-core assets in the Gulf Coast Region and $1.05 billion of the cash proceeds from the Bakken Exchange Transaction were paid by the respective purchaser directly to a qualified intermediary to facilitate a like-kind-exchange transaction for federal income tax purposes. See Note 2, Acquisitions and Divestitures, for additional details regarding these transactions. | ||||||||||||
-2 | During 2012 and 2013, proceeds from the sales of our oil and natural gas property dispositions in 2012, which were held by a qualified intermediary, were released in 2012 to fund the Thompson Field acquisition and in 2013 primarily to fund a portion of the CCA acquisition and certain post-closing costs under the Bakken Exchange Transaction. See Note 2, Acquisitions and Divestitures, for additional details regarding these transactions. |
Significant_Accounting_Policie3
Significant Accounting Policies (Goodwill Rollforward) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in goodwill | ' | ' |
Beginning of year balance | $1,283,590 | $1,236,318 |
Goodwill related to the Thompson Field acquisition | 0 | 47,272 |
End of year balance | $1,283,590 | $1,283,590 |
Significant_Accounting_Policie4
Significant Accounting Policies (Intangibles) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible asset value | $89,197 | $89,167 |
Accumulated amortization | -1,319 | 0 |
Net book value | 87,878 | 89,167 |
Helium Production Rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible asset value | 55,266 | 55,266 |
Accumulated amortization | 0 | 0 |
Net book value | 55,266 | 55,266 |
CO2 Purchase Contract [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible asset value | 33,931 | 33,901 |
Accumulated amortization | -1,319 | 0 |
Net book value | $32,612 | $33,901 |
Significant_Accounting_Policie5
Significant Accounting Policies (Estimated Amortization Expense for Intangibles) (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $2,748 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,843 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,915 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,915 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $3,568 |
Significant_Accounting_Policie6
Significant Accounting Policies (Reconciliation of Weighted Average Shares Table) (Details 2) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Weighted average shares used in the basic and diluted net income per common share | ' | ' | ' |
Basic weighted average common shares | 366,659 | 385,205 | 396,023 |
Potentially dilutive securities: | ' | ' | ' |
Restricted stock, stock options, SARs and performance-based equity awards | 3,218 | 3,733 | 4,935 |
Diluted weighted average common shares | 369,877 | 388,938 | 400,958 |
Significant_Accounting_Policie7
Significant Accounting Policies (Details Textuals) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Ceiling test write-down | $0 | $0 | $0 |
Impairment of Goodwill | 0 | 0 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Total | 3.6 | 4.1 | 5 |
Amortization of Intangible Assets | $1,300,000 | ' | ' |
Minimum [Member] | Co2 Property And Pipelines [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '15 years | ' | ' |
Minimum [Member] | Riley Ridge gas processing facility [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '20 years | ' | ' |
Minimum [Member] | Vehicles and furniture and fixtures [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '5 years | ' | ' |
Minimum [Member] | Computer equipment and software [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Maximum [Member] | Co2 Property And Pipelines [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '50 years | ' | ' |
Maximum [Member] | Riley Ridge gas processing facility [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '50 years | ' | ' |
Maximum [Member] | Vehicles and furniture and fixtures [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Maximum [Member] | Computer equipment and software [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '5 years | ' | ' |
Significant_Accounting_Policie8
Significant Accounting Policies (Major Customers) (Details Textuals 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Rate | Rate | Rate | |
Marathon Petroleum Company [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Revenue from major customer (percentage) | 33.00% | 39.00% | 43.00% |
Plains Marketing LP [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Revenue from major customer (percentage) | 15.00% | 17.00% | 16.00% |
Eighty-Eight Oil LLC [Member] | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Revenue from major customer (percentage) | 10.00% | ' | ' |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (CCA PPA) (Details) (Cedar Creek Anticline [Member], USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | Mar. 27, 2013 | |
Cedar Creek Anticline [Member] | ' | |
Business Acquisition [Line Items] | ' | |
Cash consideration | $1,001,707 | [1] |
Proved properties | 783,507 | |
Unevaluated properties | 222,820 | |
Other assets | 2,589 | |
Asset retirement obligations | -7,209 | |
Fair value of net assets acquired | $1,001,707 | |
[1] | See Note 6, Income Taxes, for additional information regarding the like-kind-exchange transaction utilized to fund this purchase and Note 13, Supplemental Cash Flow Information, for supplemental cash flow information regarding the cash payment. |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures (Bakken Exchange Transaction PPA) (Details1) (USD $) | 3 Months Ended | |
Dec. 31, 2012 | ||
Business Acquisition [Line Items] | ' | |
Restricted cash | $1,050,000,000 | |
Bakken Exchange Transaction [Member] | ' | |
Business Acquisition [Line Items] | ' | |
Fair value of net assets transferred | 1,866,107,000 | |
Cash | 1,277,041,000 | [1] |
Proved properties | 182,289,000 | |
Unevaluated properties | 90,690,000 | |
CO2 properties | 314,505,000 | |
Other property and equipment | 23,424,000 | |
Other assets | 477,000 | |
Other liabilities | -8,528,000 | |
Asset retirement obligations | -13,791,000 | |
Fair value of net assets acquired | $1,866,107,000 | |
[1] | See Note 13, Supplemental Cash Flow Information, for additional information regarding the placement of $1.05 billion of the proceeds in a qualified trust in order to enable a like-kind exchange transaction for federal income tax purposes. |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures (Thompson Field PPA) (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2012 | |
In Thousands, unless otherwise specified | Thompson Field [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | |
Cash consideration | ' | ' | ' | $366,179 | [1] |
Proved properties | ' | ' | ' | 305,233 | |
Unevaluated properties | ' | ' | ' | 12,023 | |
Pipelines and plants | ' | ' | ' | 2,000 | |
Other assets | ' | ' | ' | 2,957 | |
Asset retirement obligations | ' | ' | ' | -3,306 | |
Fair value of net assets acquired | ' | ' | ' | 318,907 | |
Goodwill | $1,283,590 | $1,283,590 | $1,236,318 | $47,272 | |
[1] | See Note 6, Income Taxes, for additional information regarding the like-kind-exchange transaction utilized to fund this purchase and Note 13, Supplemental Cash Flow Information, for supplemental cash flow information regarding the cash payment. |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures (Pro Forma Table Thompson and Bakken) (Details 3) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | ' | ' |
Pro forma total revenues and other income | $2,599,301 | $2,570,829 |
Pro forma net income | $437,616 | $582,033 |
Pro forma net income per common share | ' | ' |
Basic | $1.19 | $1.51 |
Diluted | $1.18 | $1.50 |
Acquisitions_and_Divestitures_5
Acquisitions and Divestitures (Details Textuals) (USD $) | 12 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 27, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Apr. 30, 2012 | Dec. 31, 2012 | Feb. 29, 2012 | Dec. 31, 2012 | ||||
Cedar Creek Anticline [Member] | Cedar Creek Anticline [Member] | Cedar Creek Anticline [Member] | Bakken Exchange Transaction [Member] | Thompson Field [Member] | Paradox Basin [Member] | Paradox Basin [Member] | Non-core Gulf Coast Assets [Member] | Non-core Gulf Coast Assets [Member] | |||||||
Scenario, Plan [Member] | Rate | Rate | |||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Payments to Acquire Businesses, Gross | ' | ' | ' | $1,001,707,000 | [1] | ' | $1,050,000,000 | ' | $366,179,000 | [1] | ' | ' | ' | ' | |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | ' | ' | ' | ' | 268,300,000 | ' | ' | ' | ' | ' | ' | ' | |||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | ' | ' | ' | ' | 194,200,000 | ' | ' | ' | ' | ' | ' | ' | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | ' | ' | ' | ' | ' | ' | 1,277,041,000 | [2] | ' | ' | ' | ' | ' | ||
Percent of Overriding Royalty Interest in CO2 Properties Acquired in a Business Acquisition | ' | ' | ' | ' | ' | ' | 33.33% | ' | ' | ' | ' | ' | |||
Net working interest acquired in purchase of oil and natural gas properties | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | |||
Net revenue interest acquired in purchase of oil and natural gas properties | ' | ' | ' | ' | ' | ' | ' | 84.70% | ' | ' | ' | ' | |||
Net Revenue Interest Retained By Seller | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | |||
Oil Production Threshold (in Bbls/d) | ' | ' | ' | ' | ' | ' | ' | 3,000 | ' | ' | ' | ' | |||
Proceeds from sale of oil and natural gas properties and equipment | 8,037,000 | 34,750,000 | 69,370,000 | ' | ' | ' | ' | ' | 68,500,000 | ' | 141,800,000 | ' | |||
Gain (Loss) on Sale of Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | $0 | |||
[1] | See Note 6, Income Taxes, for additional information regarding the like-kind-exchange transaction utilized to fund this purchase and Note 13, Supplemental Cash Flow Information, for supplemental cash flow information regarding the cash payment. | ||||||||||||||
[2] | See Note 13, Supplemental Cash Flow Information, for additional information regarding the placement of $1.05 billion of the proceeds in a qualified trust in order to enable a like-kind exchange transaction for federal income tax purposes. |
Asset_Retirement_Obligations_R
Asset Retirement Obligations (Rollforward) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Asset Retirement Obligation Roll Forward Analysis [Roll Forward] | ' | ' | ||
Beginning asset retirement obligation | $106,430,000 | $93,468,000 | ||
Liabilities incurred and assumed during period | 22,216,000 | 50,956,000 | ||
Revisions in estimated retirement obligations | 4,730,000 | 5,334,000 | ||
Liabilities settled and sold during period | -15,523,000 | -50,556,000 | ||
Accretion expense | 8,448,000 | 7,228,000 | ||
Ending asset retirement obligation | 126,301,000 | 106,430,000 | ||
Asset retirement obligations - current | -6,413,000 | [1] | -3,700,000 | [1] |
Long-term asset retirement obligation | 119,888,000 | 102,730,000 | ||
Asset Retirement Obligations (Textuals) [Abstract] | ' | ' | ||
Balances in escrow accounts | $36,000,000 | $35,200,000 | ||
[1] | Included in "Accounts payable and accrued liabilities" in our Consolidated Balance Sheets. |
Property_and_Equipment_Summary
Property and Equipment (Summary of Net Property and Equipment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' | |
Proved properties | $8,945,326,000 | $6,963,211,000 | |
Unevaluated properties | 780,481,000 | 809,154,000 | |
Total | 9,725,807,000 | 7,772,365,000 | |
Accumulated depletion and depreciation of oil and natural gas properties | -3,219,500,000 | -2,827,256,000 | |
Net oil and natural gas properties | 6,506,307,000 | 4,945,109,000 | |
CO2 properties | 1,117,167,000 | 1,032,653,000 | |
CO2 pipelines | 1,681,774,000 | [1] | 1,632,255,000 |
Plants | 527,786,000 | 402,871,000 | |
Total | 2,209,560,000 | 2,035,126,000 | |
Other property and equipment | 466,969,000 | 417,207,000 | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Accumulated depletion and depreciation | -3,668,225,000 | -3,180,241,000 | |
Net property and equipment | 9,851,278,000 | 8,077,110,000 | |
CO2 pipelines not placed in service | 48,400,000 | ' | |
CO2 properties [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Accumulated depletion and depreciation | -150,968,000 | -119,784,000 | |
Net property and equipment | 966,199,000 | 912,869,000 | |
Pipelines and plants [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Accumulated depletion and depreciation | -134,697,000 | -99,185,000 | |
Net property and equipment | 2,074,863,000 | 1,935,941,000 | |
Other property and equipment [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Accumulated depletion and depreciation | -163,060,000 | -134,016,000 | |
Net property and equipment | $303,909,000 | $283,191,000 | |
[1] | Amounts include $48.4 million of CO2 pipelines at December 31, 2013 that were under construction and not subject to depreciation during 2013. |
Property_and_Equipment_Summary1
Property and Equipment (Summary of Unevaluated Properties Excluded from Amortization) (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Summary of unevaluated properties excluded from oil and natural gas properties being amortized | ' | ' | ' | ' |
Property acquisition costs | $215,822 | $109,275 | $12,543 | $317,226 |
Exploration and development | 41,157 | 22,080 | 7,408 | 10,825 |
Capitalized interest | 25,222 | 12,084 | 6,018 | 821 |
Total | 282,201 | 143,439 | 25,969 | 328,872 |
Property acquisition costs | 654,866 | ' | ' | ' |
Exploration and development | 81,470 | ' | ' | ' |
Capitalized interest | 44,145 | ' | ' | ' |
Total | $780,481 | $809,154 | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details Textuals) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' |
Cost Incurred On Proved Reserves Transferred To Amortization Base | $417.60 |
Minimum [Member] | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' |
Anticipated Timing of Inclusion of Costs in Amortization Calculation | '5 years |
Maximum [Member] | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' |
Anticipated Timing of Inclusion of Costs in Amortization Calculation | '10 years |
LongTerm_Debt_Components_of_Lo
Long-Term Debt (Components of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Bank Credit Agreement | $340,000 | ' | $700,000 |
Pipeline financings | 228,167 | ' | 236,244 |
Capital lease obligations | 128,519 | ' | 158,260 |
Total | 3,296,782 | ' | 3,141,428 |
Less: current obligations | -36,157 | ' | -36,966 |
Long-term debt and capital lease obligations | 3,260,625 | ' | 3,104,462 |
9 1/2% Senior Subordinated Notes due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior subordinated notes | 0 | 224,900 | 234,038 |
Including premium of | 0 | ' | 9,118 |
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | ' | ' |
9 3/4% Senior Subordinated Notes due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior subordinated notes | 0 | 426,400 | 412,781 |
Including discount of | 0 | ' | 13,569 |
Debt Instrument, Interest Rate, Stated Percentage | 9.75% | ' | ' |
8 1/4% Senior Subordinated Notes due 2020 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior subordinated notes | 996,273 | ' | 996,273 |
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | ' | ' |
6 3/8% Senior Subordinated Notes due 2021 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior subordinated notes | 400,000 | ' | 400,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.38% | ' | ' |
4 5/8% Senior Subordinated Notes due 2023 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior subordinated notes | 1,200,000 | ' | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | ' | ' |
Other Subordinated Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior subordinated notes | 3,823 | ' | 3,832 |
Including premium of | $16 | ' | $25 |
LongTerm_Debt_Debt_Maturity_Sc
Long-Term Debt (Debt Maturity Schedule) (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Indebtedness repayment schedule | ' |
2014 | $36,156 |
2015 | 37,634 |
2016 | 377,933 |
2017 | 36,855 |
2018 | 31,899 |
Thereafter | 2,776,288 |
Total indebtedness | $3,296,765 |
LongTerm_Debt_Details_Textuals
Long-Term Debt (Details Textuals) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Nov. 01, 2013 | Mar. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | 31-May-13 | Feb. 28, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Rate | Bank Credit Agreement [Member] | Bank Credit Agreement [Member] | Bank Credit Agreement [Member] | 7 1/2% Senior Subordinated Notes due 2013 [Member] | 7 1/2% Senior Subordinated Notes due 2015 [Member] | 9 1/2% Senior Subordinated Notes due 2016 [Member] | 9 1/2% Senior Subordinated Notes due 2016 [Member] | 9 1/2% Senior Subordinated Notes due 2016 [Member] | 9 1/2% Senior Subordinated Notes due 2016 [Member] | 9 1/2% Senior Subordinated Notes due 2016 [Member] | 9 3/4% Senior Subordinated Notes due 2016 [Member] | 9 3/4% Senior Subordinated Notes due 2016 [Member] | 9 3/4% Senior Subordinated Notes due 2016 [Member] | 9 3/4% Senior Subordinated Notes due 2016 [Member] | 9 3/4% Senior Subordinated Notes due 2016 [Member] | 8 1/4% Senior Subordinated Notes due 2020 [Member] | 8 1/4% Senior Subordinated Notes due 2020 [Member] | 8 1/4% Senior Subordinated Notes due 2020 [Member] | 8 1/4% Senior Subordinated Notes due 2020 [Member] | 8 1/4% Senior Subordinated Notes due 2020 [Member] | 6 3/8% Senior Subordinated Notes due 2021 [Member] | 6 3/8% Senior Subordinated Notes due 2021 [Member] | 6 3/8% Senior Subordinated Notes due 2021 [Member] | 6 3/8% Senior Subordinated Notes due 2021 [Member] | 6 3/8% Senior Subordinated Notes due 2021 [Member] | 6 3/8% Senior Subordinated Notes due 2021 [Member] | 4 5/8% Senior Subordinated Notes due 2023 [Member] | 4 5/8% Senior Subordinated Notes due 2023 [Member] | 4 5/8% Senior Subordinated Notes due 2023 [Member] | 4 5/8% Senior Subordinated Notes due 2023 [Member] | 4 5/8% Senior Subordinated Notes due 2023 [Member] | 4 5/8% Senior Subordinated Notes due 2023 [Member] | Minimum [Member] | Maximum [Member] | Eurodollar Rate [Member] | Eurodollar Rate [Member] | Base Rate [Member] | Base Rate [Member] | Base Rate Option 2 [Member] | Base Rate Option 3 [Member] | ||||
Rate | Rate | Rate | Rate | Rate | Debt Instrument, Redemption, Period One [Member] | Initial Redemption Period with Make-Whole Premium [Member] | Debt Instrument, Redemption, Period One [Member] | Initial Redemption Period with Proceeds from Equity Offering [Member] | Initial Redemption Period with Make-Whole Premium [Member] | Debt Instrument, Redemption, Period One [Member] | Initial Redemption Period with Proceeds from Equity Offering [Member] | Initial Redemption Period with Make-Whole Premium [Member] | Bank Credit Agreement [Member] | Bank Credit Agreement [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Bank Credit Agreement [Member] | Bank Credit Agreement [Member] | ||||||||||||||||||||||||
Rate | Rate | Rate | Rate | Rate | Bank Credit Agreement [Member] | Bank Credit Agreement [Member] | Bank Credit Agreement [Member] | Bank Credit Agreement [Member] | Rate | Rate | ||||||||||||||||||||||||||||||||||
Rate | Rate | Rate | Rate | |||||||||||||||||||||||||||||||||||||||||
$1.6 Billion Revolving Credit Agreement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base of Bank Credit Agreement | ' | ' | ' | ' | ' | $1,600,000,000 | $1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate During Period | ' | ' | ' | ' | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Ratio Requirement | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Debt to EBITDA Requirement | ' | ' | ' | ' | 4.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margins on Bank Credit Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | 0.50% | 1.50% | 0.50% | 1.00% |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | 0.50% | ' | ' | ' | ' | ' | ' |
Minimum Bank Credit Facility Availability Percentage To Pay Dividends | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instruments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 224,900,000 | 234,038,000 | ' | ' | 0 | 426,400,000 | 412,781,000 | ' | 996,273,000 | 996,273,000 | ' | ' | ' | 400,000,000 | 400,000,000 | ' | ' | ' | ' | 1,200,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104.75% | 106.87% | ' | ' | ' | 104.88% | 105.43% | ' | ' | ' | ' | ' | ' | 104.13% | 100.00% | ' | ' | ' | 103.19% | 106.38% | 100.00% | ' | ' | ' | 102.31% | 104.63% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Percentage of Principal Amount Available To Be Redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Repurchased Face Amount | ' | ' | ' | ' | ' | ' | ' | 225,000,000 | 300,000,000 | 38,200,000 | 186,700,000 | ' | ' | ' | 234,700,000 | 191,700,000 | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on early extinguishment of debt | ' | 44,651,000 | 0 | 16,131,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of senior subordinated notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of subordinated long-term debt, net of commissions and fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 980,000,000 | ' | ' | ' | ' | 393,000,000 | ' | ' | ' | ' | ' | 1,180,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on senior subordinated notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | 9.75% | ' | ' | ' | 8.25% | ' | ' | ' | ' | 6.38% | ' | ' | ' | ' | ' | 4.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling Price Of Debt Instrument | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in guarantor subsidiaries | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease period included in long term transportation service agreement | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt issuance costs | ' | $58,900,000 | $56,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Income_Tax_Provis
Income Taxes (Income Tax Provision (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current income tax expense (benefit) | ' | ' | ' |
Federal | $393 | $57,720 | ($12,552) |
State | 9,864 | 18,034 | 20,801 |
Total current income tax expense | 10,257 | 75,754 | 8,249 |
Deferred income tax expense (benefit) | ' | ' | ' |
Federal | 222,559 | 239,862 | 329,715 |
State | -33 | 15,881 | 12,748 |
Total deferred income tax expense | 222,526 | 255,743 | 342,463 |
Total income tax expense | $232,783 | $331,497 | $350,712 |
Income_Taxes_Components_of_Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ' | ' |
Loss carryforwards - federal | $20,247 | $0 |
Loss carryforwards - state | 41,379 | 35,007 |
Tax credit carryover | 34,837 | 34,837 |
Derivative contracts | 21,341 | 7,252 |
Enhanced oil recovery credit carryforwards | 14,974 | 17,346 |
Stock-based compensation | 34,635 | 28,387 |
Other | 37,679 | 37,226 |
Total deferred tax assets | 205,092 | 160,055 |
Deferred tax liabilities | ' | ' |
Property and equipment | -2,541,426 | -2,277,388 |
Other | -10,206 | -6,963 |
Total deferred tax liabilities | -2,551,632 | -2,284,351 |
Total net deferred tax liability | ($2,346,540) | ($2,124,296) |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Tax Rate Reconciliation) (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' |
Income tax provision calculated using the federal statutory income tax rate | $224,833 | $299,900 | $323,416 |
State income taxes, net of federal income tax benefit | 13,518 | 30,955 | 29,555 |
Effect of statutory rate change | -4,178 | -429 | -578 |
Other | -1,390 | 1,071 | -1,681 |
Total income tax expense | $232,783 | $331,497 | $350,712 |
Income_Taxes_Details_Textuals
Income Taxes (Details Textuals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Loss carryforwards - federal | $20,247,000 | $0 |
Loss carryforwards - state | 41,379,000 | 35,007,000 |
Enhanced oil recovery credit carryforwards | 14,974,000 | 17,346,000 |
Tax credit carryover | 34,837,000 | 34,837,000 |
Tax benefit not recorded to additional paid-in capital | 13,000,000 | ' |
Valuation Allowance, Amount | $0 | ' |
Stockholders_Equity_Share_Repu
Stockholders' Equity (Share Repurchases Textuals) (Details) (USD $) | 0 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Oct. 31, 2011 |
Stockholders' Equity Note [Abstract] | ' | ' |
Stock Repurchase Program, Authorized Amount | $1,162 | $500 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $422.30 | ' |
Stockholders_Equity_Share_Repu1
Stockholders' Equity (Share Repurchases Table) (Details1) (USD $) | 12 Months Ended | 27 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Total amount repurchased | $277,768 | $266,657 | $195,227 | $739,652 |
Weighted average price per share | $16.87 | $15.71 | $13.83 | $15.55 |
Denbury common stock repurchased (shares) | 16,468,648 | 16,978,008 | 14,112,610 | 47,559,266 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Contribution Benefit Plans Disclosures [Line Items] | ' | ' | ' |
Total compensation expense | $33,003,000 | $29,310,000 | $33,190,000 |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Defined Contribution Benefit Plans Disclosures [Line Items] | ' | ' | ' |
Maximum number of common stock shares authorized for issuance under Plan | 11,900,000 | ' | ' |
Shares available for future awards | 1,601,230 | ' | ' |
Employer contribution rate | 75.00% | ' | ' |
Total compensation expense | 6,500,000 | 5,700,000 | 4,800,000 |
401(k) Plan [Member] | ' | ' | ' |
Defined Contribution Benefit Plans Disclosures [Line Items] | ' | ' | ' |
Employer contribution rate | 100.00% | ' | ' |
Employer's matching contributions | $9,000,000 | $8,000,000 | $7,100,000 |
Maximum [Member] | Employee Stock Purchase Plan [Member] | ' | ' | ' |
Defined Contribution Benefit Plans Disclosures [Line Items] | ' | ' | ' |
Employee contribution rate | 10.00% | ' | ' |
Maximum [Member] | 401(k) Plan [Member] | ' | ' | ' |
Defined Contribution Benefit Plans Disclosures [Line Items] | ' | ' | ' |
Employee contribution rate | 6.00% | ' | ' |
Stock_Compensation_Plans_Sched
Stock Compensation Plans (Schedule of Share-Based Compensation) (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expensed | $33,003 | $29,310 | $33,190 |
Stock-based compensation capitalized | 9,088 | 8,587 | 6,998 |
Total cost of stock-based compensation arrangements | 42,091 | 37,897 | 40,188 |
Income tax benefit recognized for stock-based compensation arrangements | 12,541 | 11,284 | 12,612 |
General and administrative expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expensed | 30,429 | 26,463 | 30,256 |
Lease operating expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expensed | 2,574 | 2,847 | 2,621 |
Other expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expensed | $0 | $0 | $313 |
Stock_Compensation_Plans_Summa
Stock Compensation Plans (Summary of SAR Assumptions) (Details 2) (Stock Options and Stock Appreciation Rights (SARs) [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Rate | Rate | Rate | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average fair value of SARs granted | $6.72 | $8.90 | $9.68 |
Risk-free interest rate | 0.67% | 0.79% | 1.74% |
Expected volatility | 50.40% | 64.90% | 63.30% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life | '3 years 7 months | '4 years | '4 years |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life | '4 years 9 months | '5 years | '5 years |
Stock_Compensation_Plans_Summa1
Stock Compensation Plans (Summary of Stock Option and SARs Activity) (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' |
Outstanding at beginning of period | 10,445,135 |
Weighted average exercise price, beginning of period | $14.75 |
Granted | 720,859 |
Weighted average exercise price, granted | $16.95 |
Exercised | -1,970,426 |
Weighted average exercise price, exercised | $9.33 |
Forfeited | -113,509 |
Weighted average exercise price, forfeited | $17.31 |
Expired | -95,144 |
Weighted average exercise price, expired | $22.74 |
Outstanding at end of period | 8,986,915 |
Weighted average exercise price, end of period | $16 |
Weighted average remaining contractual life of outstanding stock option and SARs | '3 years 3 months |
Aggregate intrinsic value of stock option and SARs outstanding | $19,319 |
Exercisable at end of period | 6,632,141 |
Weighted average price, exercisable at end of period | $15.51 |
Weighted average remaining contractual life of exercisable stock option and SARs | '2 years 8 months |
Aggregate intrinsic value of exercisable options and SARs | $18,970 |
Stock_Compensation_Plans_Summa2
Stock Compensation Plans (Summary of Value of Stock Options and SARs) (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Intrinsic value of stock options exercised | $17,287 | $17,315 | $20,463 |
Grant-date fair value of stock options and SARs vested | $12,852 | $26,391 | $11,416 |
Stock_Compensation_Plans_Summa3
Stock Compensation Plans (Summary of Cash Received and Tax Benefit Realized) (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options [Abstract] | ' | ' | ' |
Cash received from stock option exercises | $5,487 | $6,022 | $4,685 |
Tax benefit realized for the exercises of stock options and SARs | $437 | $458 | $539 |
Stock_Compensation_Plans_Summa4
Stock Compensation Plans (Summary of Vesting Date Fair Value of Awards - 2004 Restricted Stock Plan) (Details 6) (2004 Omnibus Stock and Incentive Plan, Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
2004 Omnibus Stock and Incentive Plan | Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value of restricted stock vested | $21,529 | $22,332 | $12,355 |
Stock_Compensation_Plans_Summa5
Stock Compensation Plans (Summary of 2004 Restricted Stock Plan) (Details 7) (2004 Omnibus Stock and Incentive Plan, Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
2004 Omnibus Stock and Incentive Plan | Restricted Stock [Member] | ' |
Nonvested Resticted Stock Outstanding [Line Items] | ' |
Nonvested at beginning of period | 3,406,207 |
Weighted average grant-date fair value, beginning of period | $15.60 |
Granted | 1,805,467 |
Weighted average grant-date fair value, granted | $16.96 |
Vested | -1,310,347 |
Weighted average grant-date fair value, vested | $16.21 |
Forfeited | -165,917 |
Weighted average grant-date fair value, forfeited | $17.23 |
Nonvested at end of period | 3,735,410 |
Weighted average grant-date fair value, end of period | $15.97 |
Stock_Compensation_Plans_Summa6
Stock Compensation Plans (Summary of Vesting Date Fair Value of Awards - Restricted Stock Legacy Encore Plan) (Details 8) (Encore Plan [Member], Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Encore Plan [Member] | Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value of restricted stock vested | $512 | $584 | $2,259 |
Stock_Compensation_Plans_Summa7
Stock Compensation Plans (Summary of Encore Restricted Stock) (Details 9) (Encore Plan [Member], Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Encore Plan [Member] | Restricted Stock [Member] | ' |
Nonvested Resticted Stock Outstanding [Line Items] | ' |
Nonvested at beginning of period | 56,258 |
Weighted average grant-date fair value, beginning of period | $15.43 |
Vested | -31,140 |
Weighted average grant-date fair value, vested | $15.43 |
Forfeited | -3,377 |
Weighted average grant-date fair value, forfeited | $15.43 |
Nonvested at end of period | 21,741 |
Weighted average grant-date fair value, end of period | $15.43 |
Stock_Compensation_Plans_TSR_A
Stock Compensation Plans (TSR Award Assumptions) (Details 10) (Performance-based TSR Awards [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Rate | Rate | |
Performance-based TSR Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value of Performance-based TSR Award granted | $20.08 | $24.68 |
Risk-free interest rate | 0.41% | 0.42% |
Expected life | '3 years | '2 years 9 months |
Expected volatility | 42.30% | 45.20% |
Dividend yield | 0.00% | 0.00% |
Stock_Compensation_Plans_Summa8
Stock Compensation Plans (Summary of Performance Based Equity Awards) (Details 11) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Performance-based TSR Awards [Member] | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Nonvested at beginning of period | 86,917 | ' | |
Weighted average grant-date fair value, beginning of period | $24.68 | ' | |
Granted | 209,474 | ' | |
Weighted average grant-date fair value, granted | $20.08 | $24.68 | |
Vested | 0 | ' | |
Weighted average grant-date fair value, vested | $0 | ' | |
Forfeited | 0 | ' | |
Weighted average grant-date fair value, forfeited | $0 | ' | |
Nonvested at end of period | 296,391 | 86,917 | |
Weighted average grant-date fair value, end of period | $21.43 | $24.68 | |
Performance-based Operational Award [Member] | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Nonvested at beginning of period | 100,193 | ' | |
Weighted average grant-date fair value, beginning of period | $17.27 | ' | |
Granted | 215,258 | ' | |
Weighted average grant-date fair value, granted | $16.77 | ' | |
Vested | -100,193 | [1] | ' |
Weighted average grant-date fair value, vested | $17.27 | ' | |
Forfeited | -5,784 | ' | |
Weighted average grant-date fair value, forfeited | $16.77 | ' | |
Nonvested at end of period | 209,474 | ' | |
Weighted average grant-date fair value, end of period | $16.77 | ' | |
Performance-based Operational Awards Granted in 2012 [Member] | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |
Vesting level (percentage) | 136.00% | ' | |
[1] | During 2013, the 2012 annual Performance-based Operational Awards vested, and award holders received shares equivalent to 136% of the number of target-level shares. |
Stock_Compensation_Plans_Summa9
Stock Compensation Plans (Summary of Vesting Date Fair Value of Awards) (Details 12) (Performance-based Operational Award [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Performance-based Operational Award [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting date fair value of Performance-based Operational Awards | $2,541 | $2,191 | $10,892 |
Stock_Compensation_Plans_Detai
Stock Compensation Plans (Details Textual) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Stock Options and SARs expiration period | '10 years |
Performance equity awards [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Total compensation cost to be recognized in future periods | 5.4 |
Weighted average period over which remaining cost will be recognized | '1 year 7 months |
Performance equity awards [Member] | Minimum [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '1 year 3 months 0 days |
Performance equity awards [Member] | Maximum [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years 3 months 0 days |
Stock Options and Stock Appreciation Rights (SARs) [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Total compensation cost to be recognized in future periods | 8 |
Weighted average period over which remaining cost will be recognized | '1 year 8 months |
Stock Options and Stock Appreciation Rights (SARs) [Member] | Minimum [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years |
Stock Options and Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years |
2004 Omnibus Stock and Incentive Plan | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Maximum number of common stock shares authorized for issuance under Plan | 34,500,000 |
Shares available for future awards | 10,800,000 |
2004 Omnibus Stock and Incentive Plan | Restricted Stock [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Total compensation cost to be recognized in future periods | 30.6 |
Weighted average period over which remaining cost will be recognized | '2 years 1 month |
2004 Omnibus Stock and Incentive Plan | Restricted stock or performance vesting awards [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Maximum number of common stock shares authorized for issuance under Plan | 27,200,000 |
Shares available for future awards | 10,800,000 |
Encore Plan [Member] | Restricted Stock [Member] | ' |
Stock Compensation Plans (Textuals) [Abstract] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years |
Commodity_Derivative_Contracts2
Commodity Derivative Contracts (Commodity Derivatives Outstanding Table) (Details) | Dec. 31, 2013 |
Year 2014 [Member] | Collar [Member] | NYMEX [Member] | Natural Gas Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 14,000 |
Derivative, Floor Price | 4 |
Derivative, Cap Price | 4.47 |
Weighted average floor price | 4 |
Weighted average ceiling price | 4.45 |
Year 2014 [Member] | Q1 [Member] | Swap [Member] | NYMEX [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 58,000 |
Derivative, Floor Price | 91.67 |
Derivative, Cap Price | 95.95 |
Weighted average swap price | 93.53 |
Year 2014 [Member] | Q2 [Member] | Swap [Member] | NYMEX [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 58,000 |
Derivative, Floor Price | 91.67 |
Derivative, Cap Price | 95.95 |
Weighted average swap price | 93.53 |
Year 2014 [Member] | Q3 [Member] | Swap [Member] | NYMEX [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 58,000 |
Derivative, Floor Price | 90 |
Derivative, Cap Price | 93.5 |
Weighted average swap price | 92.52 |
Year 2014 [Member] | Q4 [Member] | Swap [Member] | NYMEX [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 58,000 |
Derivative, Floor Price | 90 |
Derivative, Cap Price | 93.5 |
Weighted average swap price | 92.52 |
Year 2015 [Member] | Q1 [Member] | Collar [Member] | NYMEX [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 38,000 |
Derivative, Floor Price | 80 |
Derivative, Cap Price | 100.9 |
Weighted average floor price | 80 |
Weighted average ceiling price | 96.96 |
Year 2015 [Member] | Q1 [Member] | Collar [Member] | LLS [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 20,000 |
Derivative, Floor Price | 85 |
Derivative, Cap Price | 104 |
Weighted average floor price | 85 |
Weighted average ceiling price | 101.45 |
Year 2015 [Member] | Q2 [Member] | Collar [Member] | NYMEX [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 38,000 |
Derivative, Floor Price | 80 |
Derivative, Cap Price | 95.25 |
Weighted average floor price | 80 |
Weighted average ceiling price | 94.62 |
Year 2015 [Member] | Q2 [Member] | Collar [Member] | LLS [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 20,000 |
Derivative, Floor Price | 85 |
Derivative, Cap Price | 103 |
Weighted average floor price | 85 |
Weighted average ceiling price | 102.01 |
Year 2015 [Member] | Q3 [Member] | Collar [Member] | NYMEX [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 38,000 |
Derivative, Floor Price | 80 |
Derivative, Cap Price | 95.25 |
Weighted average floor price | 80 |
Weighted average ceiling price | 95.04 |
Year 2015 [Member] | Q3 [Member] | Collar [Member] | LLS [Member] | Crude Oil Contracts [Member] | ' |
Derivative [Line Items] | ' |
Volume per day | 20,000 |
Derivative, Floor Price | 85 |
Derivative, Cap Price | 102.6 |
Weighted average floor price | 85 |
Weighted average ceiling price | 100.69 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Hierarchy) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Asset, Current | $5 | $19,477 |
Derivative Asset, Noncurrent | 9,942 | 36 |
Total Derivative Assets | 9,947 | 19,513 |
Derivative Liability, Current | -53,822 | -2,659 |
Derivative Liability, Noncurrent | -3,413 | -23,781 |
Total Derivative Liabilities | -57,235 | -26,440 |
Quoted Prices in Active Markets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Asset, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Total Derivative Assets | 0 | 0 |
Derivative Liability, Current | 0 | 0 |
Derivative Liability, Noncurrent | 0 | 0 |
Total Derivative Liabilities | 0 | 0 |
Significant Other Observable Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Asset, Current | 5 | 19,477 |
Derivative Asset, Noncurrent | 3,034 | 36 |
Total Derivative Assets | 3,039 | 19,513 |
Derivative Liability, Current | -53,822 | -2,659 |
Derivative Liability, Noncurrent | -3,214 | -23,781 |
Total Derivative Liabilities | -57,036 | -26,440 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Asset, Current | 0 | 0 |
Derivative Asset, Noncurrent | 6,908 | 0 |
Total Derivative Assets | 6,908 | 0 |
Derivative Liability, Current | 0 | 0 |
Derivative Liability, Noncurrent | -199 | 0 |
Total Derivative Liabilities | ($199) | $0 |
Fair_Value_Measurements_Level_
Fair Value Measurements (Level 3 Rollforward) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Fair value of Level 3 instruments, beginning of year | $0 | $23,950 |
Unrealized gains on commodity derivative contracts included in net earnings | 6,709 | 3,921 |
Receipts on settlement of commodity derivative contracts | 0 | -27,871 |
Fair value of Level 3 instruments, end of year | 6,709 | 0 |
The amount of total gains for the period included in earnings attributable to the change in unrealized gains relating to assets still held at the reporting date | $6,709 | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Sensitivity Analysis of Fair Value, Impact of 1 Percent Increase or Decrease in Level 3 Inputs | $100,000 | ' | ' |
Other Asset Impairment Charges | 0 | 17,515,000 | 22,951,000 |
Long-term Debt, Fair Value | 2,956,800,000 | 2,956,900,000 | ' |
Faustina Investment Impairment [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Other Asset Impairment Charges | $15,100,000 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Summary of Operating Lease Payments Paid and Received (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating lease payments | $37,211 | $33,606 | $52,317 |
Sublease rental receipts | $2,237 | $2,685 | $2,398 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Non-Cancelable Pipeline and Capital Lease Payments) (Details 2) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
Capital Leases in Year 1 | $62,929 |
Capital Leases in Year 2 | 62,254 |
Capital Leases in Year 3 | 60,819 |
Capital Leases in Year 4 | 55,409 |
Capital Leases in Year 5 | 50,750 |
Capital Leases, Thereafter | 280,272 |
Capital Leases, Total minimum lease payments | 572,433 |
Capital Leases, Less: Amount representing interest | -215,748 |
Capital Leases, Present value of minimum lease payments | $356,685 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Schedule of Future Operating Lease Payments) (Details 3) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases, Operating [Abstract] | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $11,695 |
Operating Leases, Future Minimum Payments, Due in Two Years | 12,542 |
Operating Leases, Future Minimum Payments, Due in Three Years | 12,510 |
Operating Leases, Future Minimum Payments, Due in Four Years | 12,774 |
Operating Leases, Future Minimum Payments, Due in Five Years | 12,730 |
Operating Leases, Future Minimum Payments, Due Thereafter | 67,832 |
Operating Leases, Total minimum lease payments | $130,083 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Leases) (Details Textuals 1) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Leases, Operating [Abstract] | ' |
Description of lease terms (in years) | '12 years |
Expected future receipts under sublease agreements | $14.60 |
Commitments_and_Contingencies_5
Commitments and Contingencies (Commitments) (Details Textuals 2) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Anthropogenic CO2 Contracts [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Term of long-term purchase commitments (years) | '20 years |
Oil price assumption for obligation estimate ($/Bbl) | 90 |
Anthropogenic CO2 Contracts [Member] | Maximum [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Aggregate purchase obligation of CO2 | $170 |
Anthropogenic CO2 Contracts [Member] | Minimum [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Aggregate purchase obligation of CO2 | 100 |
Volumetric production payments [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Term of long-term supply arrangement (years) | '15 years |
Significant supply commitment yearly maximum volume required (MMcf/d) | 119 |
Volumetric production payments [Member] | Maximum [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Significant supply commitment remaining volume committed (MMcf) | 367,000 |
Riley Ridge [Member] | Helium Supply Arrangement [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Term of long-term supply arrangement (years) | '20 years |
Maximum annual payment in event of shortfall | 8 |
Maximum payment in event of shortfall | $46 |
Commitments_and_Contingencies_6
Commitments and Contingencies (Delhi Field Release) (Details Textuals 3) (Details) (USD $) | 7 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ' | ' |
Environmental Remediation Expense | ' | $114 |
Accrual for Environmental Loss Contingencies | 22 | 22 |
Environmental Remediation Expense Incurred To Date | $92 | ' |
Minimum [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Estimated Percentage of Environmental Remediation Expense Estimate to be Recovered Through Insurance Proceeds | 33.33% | 33.33% |
Maximum [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Estimated Percentage of Environmental Remediation Expense Estimate to be Recovered Through Insurance Proceeds | 66.67% | 66.67% |
Additional_Balance_Sheet_Detai2
Additional Balance Sheet Details (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | ' |
Accrued exploration and development costs | $100,564 | $109,939 |
Accrued interest | 68,871 | 60,698 |
Accounts payable | 63,263 | 86,051 |
Accrued lease operating expenses | 59,762 | 23,862 |
Accrued compensation | 55,043 | 48,451 |
Taxes payable | 28,019 | 27,523 |
Other | 35,021 | 58,144 |
Total | $410,543 | $414,668 |
Recovered_Sheet1
Additional balance Sheet Details (Detail Textuals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Allowance for doubtful accounts | $0.30 | $0.30 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Supplemental Cash Flow Information [Abstract] | ' | ' | ' | ||
Cash paid for interest, expensed | $117,442,000 | $137,950,000 | $137,259,000 | ||
Cash paid for interest, capitalized | 79,253,000 | 77,432,000 | 60,540,000 | ||
Cash paid for income taxes | 28,895,000 | 99,194,000 | 45,912,000 | ||
Cash received from income tax refunds | -17,087,000 | -38,004,000 | -24,677,000 | ||
Non-cash investing activities: | ' | ' | ' | ||
Increase in asset retirement obligations | 26,946,000 | 56,290,000 | 24,694,000 | ||
Increase (decrease) in liabilities for capital expenditures | -18,321,000 | -26,882,000 | 74,697,000 | ||
Increase in Restricted Cash | 0 | 1,262,559,000 | [1] | 0 | |
Decrease in Restricted Cash | 1,050,328,000 | [2] | 212,544,000 | [2] | 0 |
Non-core Gulf Coast Assets [Member] | ' | ' | ' | ||
Business Acquisition [Line Items] | ' | ' | ' | ||
Sales proceeds paid to qualified intermediary | ' | 212,500,000 | ' | ||
Bakken Exchange Transaction [Member] | ' | ' | ' | ||
Business Acquisition [Line Items] | ' | ' | ' | ||
Sales proceeds paid to qualified intermediary | ' | $1,050,000,000 | ' | ||
[1] | During 2012, $212.5 million of proceeds from the sale of certain non-core assets in the Gulf Coast Region and $1.05 billion of the cash proceeds from the Bakken Exchange Transaction were paid by the respective purchaser directly to a qualified intermediary to facilitate a like-kind-exchange transaction for federal income tax purposes. See Note 2, Acquisitions and Divestitures, for additional details regarding these transactions. | ||||
[2] | During 2012 and 2013, proceeds from the sales of our oil and natural gas property dispositions in 2012, which were held by a qualified intermediary, were released in 2012 to fund the Thompson Field acquisition and in 2013 primarily to fund a portion of the CCA acquisition and certain post-closing costs under the Bakken Exchange Transaction. See Note 2, Acquisitions and Divestitures, for additional details regarding these transactions. |
Subsequent_Events_Details_Text
Subsequent Events (Details Textuals) (USD $) | 12 Months Ended | 27 Months Ended | 2 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 20, 2014 | Jan. 28, 2014 | Jan. 31, 2014 | Jan. 03, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||
Restricted Stock [Member] | Restricted Stock [Member] | |||||||
Rate | ||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock, shares | 16,468,648 | 16,978,008 | 14,112,610 | 47,559,266 | 11,800,000 | ' | ' | ' |
Total amount repurchased | $277,768 | $266,657 | $195,227 | $739,652 | $191,600 | ' | ' | ' |
Treasury Stock Acquired, Average Cost Per Share | $16.87 | $15.71 | $13.83 | $15.55 | $16.17 | ' | ' | ' |
Awards Granted | ' | ' | ' | ' | ' | ' | 1,633,898 | ' |
Value (per share) of restricted stock grant | ' | ' | ' | ' | ' | ' | ' | $16.55 |
Equity award vesting percentage | ' | ' | ' | ' | ' | ' | 33.00% | ' |
Dividends Payable, Amount Per Share | ' | ' | ' | ' | ' | $0.06 | ' | ' |