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Pay vs Performance Disclosure - USD ($)

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

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, 2023, 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) (millions)	Free Cash Flow (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	Peer Group TSR(3)	Net Income (Loss) (millions)	Free Cash Flow (millions)
(a)	(b)	(c)	(d)	(e)	(f)	(g)	(h)	(i)
2023(4)	$914,697	$(2,675,996)
2023(5)	$10,185,668	$13,968,755	$5,255,617	$5,995,797	$381.98	$518.83	$564	$595
2022	$2,807,749	$3,368,621	$1,382,810	$1,448,173	$296.45	$498.98	$524	$360
2021	$17,583,281	$30,872,890	$4,834,140	$8,066,445	$285.97	$346.08	$625	$458
2020(6)	$47,529	$47,529	$4,549,943	$3,264,927	$157.27	$136.65	$(125)	n/a
2020(7)	$21,520,647	$16,120,640

(1)

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

•

2023: PEOs – Mark A. McFarland ("PEO 1" below) and Francisco J. Leon ("PEO 2" below); Non-PEOs – Manuela ("Nelly") Molina, Jay A. Bys, Chris D. Gould, Michael L. Preston, Shawn M. Kerns

•

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:


	2023
	PEO 1			PEO 2
PEO Summary Compensation Table Totals	$	914,697		$	10,185,668
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table		(203,675	)		(7,673,589	)
Fair value at year end of equity awards granted during the year		274,986			10,120,885
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		228,359			1,237,982
Change in fair value of equity awards granted in prior years that vested during the year		(181,005	)		97,809
Equity awards granted in prior years that were forfeited during the year		(3,709,358	)		—
Total Equity Award Related Adjustments		(3,590,693	)		3,783,087
Compensation Actually Paid Totals	$	(2,675,996	)	$	13,968,755


	2023
Non-PEO NEOs Summary Compensation Table Totals	$	5,255,617
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table		(3,437,737	)
Fair value at year end of equity awards granted during the year		3,308,421
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		652,481
Change in fair value of equity awards granted in prior years that vested during the year		218,408
Equity awards granted in prior years that were forfeited during the year		(1,394	)
Total Equity Award Related Adjustments		740,180
Compensation Actually Paid Totals	$	5,995,797

(3)

Peer Group TSR for the peer group of prior years (other than 2020, which as noted herein was the year that we emerged from bankruptcy and only partial year financials can be used) is the same peer group used for Item 201(e) of Reg S-K as shown in our Annual Reports. For the 2023 year, that 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. 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.

(4)

Information shown for PEO McFarland, who was PEO through April 28, 2023.

(5)

Information shown for PEO Leon, who was PEO beginning April 28, 2023.

(6)

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

(7)

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

Company Selected Measure Name

Free Cash Flow

Named Executive Officers, Footnote

(1)

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

•

2023: PEOs – Mark A. McFarland ("PEO 1" below) and Francisco J. Leon ("PEO 2" below); Non-PEOs – Manuela ("Nelly") Molina, Jay A. Bys, Chris D. Gould, Michael L. Preston, Shawn M. Kerns

•

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

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

(2)

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


	2023
	PEO 1			PEO 2
PEO Summary Compensation Table Totals	$	914,697		$	10,185,668
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table		(203,675	)		(7,673,589	)
Fair value at year end of equity awards granted during the year		274,986			10,120,885
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		228,359			1,237,982
Change in fair value of equity awards granted in prior years that vested during the year		(181,005	)		97,809
Equity awards granted in prior years that were forfeited during the year		(3,709,358	)		—
Total Equity Award Related Adjustments		(3,590,693	)		3,783,087
Compensation Actually Paid Totals	$	(2,675,996	)	$	13,968,755

Non-PEO NEO Average Total Compensation Amount

$ 5,255,617

1,382,810

4,834,140

$ 4,549,943

Non-PEO NEO Average Compensation Actually Paid Amount

$ 5,995,797

1,448,173

8,066,445

3,264,927

Adjustment to Non-PEO NEO Compensation Footnote


	2023
Non-PEO NEOs Summary Compensation Table Totals	$	5,255,617
Add (Subtract):
Fair value of equity awards granted during the year from the Summary Compensation Table		(3,437,737	)
Fair value at year end of equity awards granted during the year		3,308,421
Change in fair value of equity awards granted in prior years that were unvested as of the end of the year		652,481
Change in fair value of equity awards granted in prior years that vested during the year		218,408
Equity awards granted in prior years that were forfeited during the year		(1,394	)
Total Equity Award Related Adjustments		740,180
Compensation Actually Paid Totals	$	5,995,797

Compensation Actually Paid vs. Total Shareholder Return

PEO

From 2022 to 2023, compensation actually paid to the PEO increased by $7,924,138 or 235%. Over this same period, the Company's TSR increased by 28.9%, net income increased by 7.6% and free cash-flow increased by 65%. The key factors that drove the increase in compensation actually paid to our PEO were the timing of equity award grants and the increase in TSR from the equity award grant date early in 2023. The PEO received equity award grants in 2023, but did receive any equity award grants in 2022.

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 - 2023 was equity-based, the compensation actually paid is directly linked to increases or decreases in the Company’s stock price.

Non-PEOs

From 2022 to 2023, compensation actually paid to the Non-PEOs increased by $4,547,624 or 314%. Over this same period, the Company's TSR increased by 28.9%, net income increased by 7.6% and freed cash-flow increased by 65%. The key factors that drove the increase in compensation actually paid to our Non-PEOs were the timing of equity award grants and the increase in TSR from the equity award grant date early in 2023. The Non-PEOs received equity award grants in 2023, but did receive any equity award grants in 2022.

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 - 2023 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

PEO

Non-PEOs

Compensation Actually Paid vs. Company Selected Measure

PEO

Non-PEOs

Total Shareholder Return Vs Peer Group

Company TSR versus Peer Group TSR

Our peer group changed from 2022 to 2023. We added Civitas Resources, Inc. which is a newly formed company with similar market capitalization and operations. We also added Permian Resources Corporation to our peer group due to its similar market capitalization and operations. We removed Denbury Inc. and PDC Energy, Inc. from our peer group after they were acquired in 2023. We also removed Coterra Energy, Inc., which had a much larger market capitalization.

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	2023 Peer Group TSR	2022 Peer Group TSR
2023	$381.98	$518.83	$368.66
2022	$296.45	$498.98	$365.51
2021	$285.97	$346.08	$256.53
2020	$157.27	$136.65	$118.70

Tabular List, Table

Disclosure of Most Important Performance Measures for Fiscal Year 2023

The following unranked performance measures for fiscal year 2023 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

     

      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)

     

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

     

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

     

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

     

Total Shareholder Return Amount

$ 381.98

296.45

285.97

157.27

Peer Group Total Shareholder Return Amount

518.83

498.98

346.08

136.65

Net Income (Loss)

$ 564,000,000

$ 524,000,000

$ 625,000,000

$ (125,000,000)

Company Selected Measure Amount

595,000,000

360,000,000

458,000,000

PEO Name

Mark A. McFarland ("PEO 1" below) and Francisco J. Leon ("PEO 2" below)

Mark A. McFarland

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