Pay vs Performance [Table Text Block]

As required by Item 402(v) of Regulation S-K, we are providing the following information regarding the relationship between executive compensation and the Company’s financial performance for applicable years. The following table summarizes compensation values reported in the Summary Compensation Table for our principal executive officer (“PEO”) and the average for our other NEOs, as compared to “compensation actually paid” and the Company's financial performance for the years ended December 31, 2022, 2021 and 2020. In determining the “compensation actually paid” to our NEOs, we are required to make various adjustments to amounts that have been previously reported in the Summary Compensation Table in previous years, as the SEC’s valuation methods for this section differ from those required in the Summary Compensation Table. “Compensation actually paid” includes payments made to executives during the applicable year such as salary, performance bonus, and various benefits. However, the SEC’s valuation methods for this section emphasize the changes in fair value of equity awards under applicable financial accounting standards, and as such, references to “compensation actually paid” below reflects the change in equity award values on the applicable calculation dates and does not necessarily reflect what our NEOs received year-to-year.


Year	Summary Compensation Table Total for PEO(1)	Compensation Actually Paid to PEO(2)	Average Summary Compensation Table Total for Non-PEO NEOs(1)	Average Compensation Actually Paid to Non-PEO NEOs(2)	Value of Initial Fixed $100 Investment Based On:		Net Income (Loss)(5) (millions)	Before-Tax Free Cash Flow(6) (millions)
Year	Summary Compensation Table Total for PEO(1)	Compensation Actually Paid to PEO(2)		Average Compensation Actually Paid to Non-PEO NEOs(2)	TSR(3)	Peer Group TSR(4)	Net Income (Loss)(5) (millions)	Before-Tax Free Cash Flow(6) (millions)
(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)	(i)
2022	$2,807,749	$3,368,621	$1,382,810	$1,448,173	$296.45	$388.55	$524	$360
2021	$17,583,281	$30,872,890	$4,834,140	$8,066,445	$285.97	$276.93	$625	$458
2020(7) 2020(8)	$47,529 $21,520,647	$47,529 $16,120,640	$4,549,943	$3,264,927	$157.27	$123.98	$(125)	n/a

(1)

The PEO and the non-PEO NEOs for each year are as follows:

•

2022 and 2021: PEO – Mark A. McFarland; Non-PEOs – Francisco J. Leon, Jay A. Bys, Shawn M. Kerns, Michael L. Preston

•

2020: PEOs – Mark A. McFarland ("PEO 1" below) and Todd A. Stevens ("PEO 2" below); Non-PEOs – Francisco J. Leon, Marshall D. Smith, Charles F. Weiss, Shawn M. Kerns, Darren Williams

(2)

The following tables reconcile the Summary Compensation Table totals to the Compensation Actually Paid totals:


						2020
	2022		2021			PEO 1		PEO 2
PEO Summary Compensation Table Totals	$	2,807,749	$	17,583,281		$	47,529	$	21,520,647
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table	-			(14,132,218	)	-			(5,400,007	)
Fair value at year end of equity awards granted during the year	-			27,421,827		-		-
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		429,078	-			-		-
Change in fair value of equity awards granted in prior years that vested during the year		131,793	-			-		-
Total Equity Award Related Adjustments		560,872		13,289,609		-			(5,400,007	)
Compensation Actually Paid Totals	$	3,368,621	$	30,872,890		$	47,529	$	16,120,640


	2022			2021			2020
Non-PEO NEOs Summary Compensation Table Totals	$	1,382,810		$	4,834,140		$	4,549,943
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table		-			(3,402,256	)		(1,285,016	)
Fair value at year end of equity awards granted during the year		-			6,634,561			-
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		104,303			-			-
Change in fair value of equity awards granted in prior years that vested during the year		(38,940	)		-			-
Total Equity Award Related Adjustments		65,363			3,232,305			(1,285,016	)
Compensation Actually Paid Totals	$	1,448,173		$	8,066,445		$	3,264,927

(3)

We emerged from bankruptcy in 2020, therefore certain financial information is only available for portions of the 2020 year following that emergence. Our TSR for 2020 is for the period October 28, 2020 through December 31, 2020, following our emergence from bankruptcy on October 27, 2020.

(4)

Peer Group TSR is for the 2022 peer group used for Item 201(e) of Reg S-K as shown in our Annual Report.

Our 2022 peer group consisted of Antero Resources Corporation; Berry Corporation; Callon Petroleum Company; Chord Energy Corporation (the combination of Oasis Petroleum Inc. and Whiting Petroleum Corporation which merged in 2022); Comstock Resources Inc.; Coterra Energy Inc.; Crescent Energy Company; Denbury Inc.; Kosmos Energy Ltd.; Magnolia Oil & Gas Corp; Matador Resources Company; Murphy Oil Corporation; PDC Energy, Inc.; Range Resources Corporation; SM Energy Company; Southwestern Energy Company; Talos Energy Inc.; and Vermilion Energy Inc.

(5)

Net Loss for 2020 is for the period November 1, 2020 – December 31, 2020.

(6)

Before-Tax Free Cash Flow is a non-GAAP measure described above in the AIP Scorecard Metrics section of the Compensation Discussion and Analysis section above. See also Annex A for a reconciliation to the nearest GAAP measure.

(7)

information shown for PEO McFarland, who became PEO on December 31, 2020.

(8)

Information shown for PEO Stevens, who was PEO until December 31, 2020.

Company Selected Measure Name

Before-Tax Free Cash Flow

Named Executive Officers, Footnote [Text Block]

(1)

The PEO and the non-PEO NEOs for each year are as follows:

•

2022 and 2021: PEO – Mark A. McFarland; Non-PEOs – Francisco J. Leon, Jay A. Bys, Shawn M. Kerns, Michael L. Preston

•

2020: PEOs – Mark A. McFarland ("PEO 1" below) and Todd A. Stevens ("PEO 2" below); Non-PEOs – Francisco J. Leon, Marshall D. Smith, Charles F. Weiss, Shawn M. Kerns, Darren Williams

Peer Group Issuers, Footnote [Text Block]

(4)

Peer Group TSR is for the 2022 peer group used for Item 201(e) of Reg S-K as shown in our Annual Report.

PEO Total Compensation Amount

$ 2,807,749

$ 17,583,281

PEO Actually Paid Compensation Amount

$ 3,368,621

30,872,890

Adjustment To PEO Compensation, Footnote [Text Block]

(2)

The following tables reconcile the Summary Compensation Table totals to the Compensation Actually Paid totals:


						2020
	2022		2021			PEO 1		PEO 2
PEO Summary Compensation Table Totals	$	2,807,749	$	17,583,281		$	47,529	$	21,520,647
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table	-			(14,132,218	)	-			(5,400,007	)
Fair value at year end of equity awards granted during the year	-			27,421,827		-		-
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		429,078	-			-		-
Change in fair value of equity awards granted in prior years that vested during the year		131,793	-			-		-
Total Equity Award Related Adjustments		560,872		13,289,609		-			(5,400,007	)
Compensation Actually Paid Totals	$	3,368,621	$	30,872,890		$	47,529	$	16,120,640

Non-PEO NEO Average Total Compensation Amount

$ 1,382,810

4,834,140

$ 4,549,943

Non-PEO NEO Average Compensation Actually Paid Amount

$ 1,448,173

8,066,445

3,264,927

Adjustment to Non-PEO NEO Compensation Footnote [Text Block]


	2022			2021			2020
Non-PEO NEOs Summary Compensation Table Totals	$	1,382,810		$	4,834,140		$	4,549,943
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table		-			(3,402,256	)		(1,285,016	)
Fair value at year end of equity awards granted during the year		-			6,634,561			-
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		104,303			-			-
Change in fair value of equity awards granted in prior years that vested during the year		(38,940	)		-			-
Total Equity Award Related Adjustments		65,363			3,232,305			(1,285,016	)
Compensation Actually Paid Totals	$	1,448,173		$	8,066,445		$	3,264,927

Compensation Actually Paid vs. Total Shareholder Return [Text Block]

PEO

From 2021 to 2022, compensation actually paid to the PEO decreased by $27,504,269 or (89%). Over this same period, the Company’s TSR increased by 3.7%, net income decreased by 16.2%, and before-tax free cash flow decreased by 21.4%. The key factor that drove the decrease in compensation actually paid to our PEO was due to the timing of equity award grants. The PEO received an equity award in 2021 following the Company’s emergence from bankruptcy whereas a similar grant was not made in 2022.

From 2020 to 2021, compensation actually paid to the PEO increased by $30,825,361 or 648.6%. Over this same period, the Company’s TSR increased by 81.8% and net income increased by over 600%. The key factors that drove the changes in compensation actually paid were the transition to a new PEO on December 31, 2020, the timing of the equity award grants in 2021 following the Company’s emergence from

bankruptcy and the positive stock price performance for the Company in 2021 which impacted the PEO equity award values as shown in the table.

Since a substantial majority of the compensation paid to the PEO during 2021 and 2022 was equity-based, the compensation actually paid is directly linked to increases or decreases in the Company’s stock price.

Non-PEOs

From 2021 to 2022, compensation actually paid to the Non-PEOs decreased by $6,618,272 or 82%. Over this same period, the Company’s TSR increased by 3.7%, net income decreased by 16.2%, and before-tax free cash flow decreased by 21.4%. The key factor that drove the decline in compensation actually paid in 2022 from the prior period was the timing of equity award grants. The non-PEOs did not receive equity awards in 2022; however, equity awards were granted in 2021 following the Company’s emergence from bankruptcy on October 27, 2020.

From 2020 to 2021, compensation actually paid to the Non-PEOs increased by $4,801,518 or 147%. Over this same period, the Company’s TSR increased by 81.8%, net income increased by over 600%. The key factors that drove the changes in compensation paid were the equity grants in 2021 following the Company’s emergence from bankruptcy and the positive stock price performance for the Company in 2021, which impacted the Non-PEO equity award values as shown in the table.

Since a majority of the compensation paid to the non-PEOs during 2021 and 2022 was equity-based, the compensation actually paid is directly linked to increases or decreases in the Company’s stock price.

Compensation Actually Paid vs. Net Income [Text Block]

PEO

bankruptcy and the positive stock price performance for the Company in 2021 which impacted the PEO equity award values as shown in the table.

Non-PEOs

Compensation Actually Paid vs. Company Selected Measure [Text Block]

PEO

bankruptcy and the positive stock price performance for the Company in 2021 which impacted the PEO equity award values as shown in the table.

Non-PEOs

Total Shareholder Return Vs Peer Group [Text Block]

Company TSR versus Peer Group TSR

Our peer group changed from 2021 to 2022. We added Crescent Energy Company which is a newly formed company with similar market capitalization and operations. We also added Talos Energy Inc. to our peer group due to its similar financial, operational and strategic metrics as well as its presence in the carbon sequestration sector in the United States.

The relationship of our TSR to the two peer groups as of December 31 for each year presented in the table below:


Year	Our TSR	2022 Peer Group TSR	2021 Peer Group TSR
2022	$296.45	$388.55	$394.74
2021	$285.97	$276.93	$279.94
2020	$157.27	$123.98	$123.79

Tabular List [Table Text Block]

Disclosure of Most Important Performance Measures for Fiscal Year 2022

The following unranked performance measures for fiscal year 2022 were the most important performance measures the Company used to link executive compensation actually paid to our PEO and Non-PEOs during the last fiscal year to company performance.

Most Important Performance Measures

Before-Tax Free Cash Flow (as described in the Compensation Discussion and Analysis section above) 

Adjusted EBITDAX (as described in the Compensation Discussion and Analysis section above)

Capital Efficiency (as described in the Compensation Discussion and Analysis section above)

Controllable Costs (as described in the Compensation Discussion and Analysis section above)

Carbon Emissions Deals (as described in the Compensation Discussion and Analysis section above)

Total Shareholder Return Amount

$ 296.45

285.97

157.27

Peer Group Total Shareholder Return Amount

388.55

276.93

$ 123.98

Net Income (Loss)

$ (125,000,000)

$ 524,000,000

$ 625,000,000

Company Selected Measure Amount

360,000,000

458,000,000

PEO Name

Mark A. McFarland

Mark A. McFarland ("PEO 1" below) and Todd A. Stevens ("PEO 2" below)

Measure [Axis]: 1

Non-GAAP Measure Description [Text Block]

Before-Tax Free Cash Flow

(6)

Measure [Axis]: 2

Adjusted EBITDAX

Measure [Axis]: 3

Capital Efficiency

Measure [Axis]: 4

Controllable Costs

Measure [Axis]: 5

Mark A. McFarland [Member]

Carbon Emissions Deals

PEO Total Compensation Amount

$ 47,529

PEO Actually Paid Compensation Amount

47,529

Todd A. Stevens [Member]

PEO Total Compensation Amount

21,520,647

PEO Actually Paid Compensation Amount

16,120,640

PEO [Member] | Fair Value of Equity Awards Granted During Year [Member]

PEO [Member] | Fair Value at Year End of Equity Awards Granted During Year [Member]

$ (14,132,218)

PEO [Member] | Change in Fair Value of Equity Awards Granted in Prior Years that Were Unvested as of End of Year [Member]

27,421,827

PEO [Member] | Change in Fair Value of Equity Awards Granted in Prior Years that Vested During Year [Member]

$ 429,078

PEO [Member] | Equity Award Related Adjustments [Member]

131,793

PEO [Member] | Todd A. Stevens [Member] | Fair Value of Equity Awards Granted During Year [Member]

560,872

13,289,609

PEO [Member] | Todd A. Stevens [Member] | Equity Award Related Adjustments [Member]

(5,400,007)

Non-PEO NEO [Member] | Fair Value of Equity Awards Granted During Year [Member]

(5,400,007)

Non-PEO NEO [Member] | Fair Value at Year End of Equity Awards Granted During Year [Member]

(3,402,256)

(1,285,016)

Non-PEO NEO [Member] | Change in Fair Value of Equity Awards Granted in Prior Years that Were Unvested as of End of Year [Member]

6,634,561

Non-PEO NEO [Member] | Change in Fair Value of Equity Awards Granted in Prior Years that Vested During Year [Member]

104,303

Non-PEO NEO [Member] | Equity Award Related Adjustments [Member]

(38,940)