FORM 10-Q |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Black Stone Minerals, L.P. (Exact name of registrant as specified in its charter) |
Delaware | 47-1846692 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1001 Fannin Street, Suite 2020 Houston, Texas | 77002 | |
(Address of principal executive offices) | (Zip code) |
(713) 445-3200 (Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Units Representing Limited Partner Interests | BSM | New York Stock Exchange |
Large accelerated filer | ý | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page | ||
March 31, 2019 | December 31, 2018 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 4,247 | $ | 5,414 | ||||
Accounts receivable | 103,327 | 113,148 | ||||||
Commodity derivative assets | 4,012 | 37,970 | ||||||
Prepaid expenses and other current assets | 1,543 | 1,001 | ||||||
TOTAL CURRENT ASSETS | 113,129 | 157,533 | ||||||
PROPERTY AND EQUIPMENT | ||||||||
Oil and natural gas properties, at cost, using the successful efforts method of accounting, includes unproved properties of $1,084,737 and $1,063,883 at March 31, 2019 and December 31, 2018, respectively | 3,477,494 | 3,441,188 | ||||||
Accumulated depreciation, depletion, amortization, and impairment | (1,893,461 | ) | (1,865,692 | ) | ||||
Oil and natural gas properties, net | 1,584,033 | 1,575,496 | ||||||
Other property and equipment, net of accumulated depreciation of $11,115 and $11,048 at March 31, 2019 and December 31, 2018, respectively | 2,353 | 385 | ||||||
NET PROPERTY AND EQUIPMENT | 1,586,386 | 1,575,881 | ||||||
DEFERRED CHARGES AND OTHER LONG-TERM ASSETS | 12,372 | 16,710 | ||||||
TOTAL ASSETS | $ | 1,711,887 | $ | 1,750,124 | ||||
LIABILITIES, MEZZANINE EQUITY, AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 6,639 | $ | 4,149 | ||||
Accrued liabilities | 38,977 | 60,089 | ||||||
Commodity derivative liabilities | 1,967 | — | ||||||
Other current liabilities | 926 | 528 | ||||||
TOTAL CURRENT LIABILITIES | 48,509 | 64,766 | ||||||
LONG–TERM LIABILITIES | ||||||||
Credit facility | 435,000 | 410,000 | ||||||
Accrued incentive compensation | 1,028 | 1,813 | ||||||
Commodity derivative liabilities | 23 | — | ||||||
Asset retirement obligations | 15,146 | 14,948 | ||||||
Other long-term liabilities | 78,292 | 55,973 | ||||||
TOTAL LIABILITIES | 577,998 | 547,500 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||||
MEZZANINE EQUITY | ||||||||
Partners' equity – Series B cumulative convertible preferred units, 14,711 and 14,711 units outstanding at March 31, 2019 and December 31, 2018, respectively | 298,361 | 298,361 | ||||||
EQUITY | ||||||||
Partners' equity – general partner interest | — | — | ||||||
Partners' equity – common units, 109,377 and 108,363 units outstanding at March 31, 2019 and December 31, 2018, respectively | 679,868 | 714,823 | ||||||
Partners' equity – subordinated units, 96,329 and 96,329 units outstanding at March 31, 2019 and December 31, 2018, respectively | 155,660 | 189,440 | ||||||
TOTAL EQUITY | 835,528 | 904,263 | ||||||
TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY | $ | 1,711,887 | $ | 1,750,124 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
REVENUE | ||||||||
Oil and condensate sales | $ | 57,704 | $ | 72,983 | ||||
Natural gas and natural gas liquids sales | 61,640 | 53,245 | ||||||
Lease bonus and other income | 5,645 | 4,599 | ||||||
Revenue from contracts with customers | 124,989 | 130,827 | ||||||
Gain (loss) on commodity derivative instruments | (41,183 | ) | (16,333 | ) | ||||
TOTAL REVENUE | 83,806 | 114,494 | ||||||
OPERATING (INCOME) EXPENSE | ||||||||
Lease operating expense | 5,292 | 4,248 | ||||||
Production costs and ad valorem taxes | 14,592 | 14,925 | ||||||
Exploration expense | 4 | 3 | ||||||
Depreciation, depletion, and amortization | 27,833 | 28,570 | ||||||
General and administrative | 21,214 | 18,521 | ||||||
Accretion of asset retirement obligations | 277 | 269 | ||||||
(Gain) loss on sale of assets, net | — | (2 | ) | |||||
TOTAL OPERATING EXPENSE | 69,212 | 66,534 | ||||||
INCOME (LOSS) FROM OPERATIONS | 14,594 | 47,960 | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest and investment income | 46 | 33 | ||||||
Interest expense | (5,525 | ) | (4,521 | ) | ||||
Other income (expense) | (98 | ) | (1,515 | ) | ||||
TOTAL OTHER EXPENSE | (5,577 | ) | (6,003 | ) | ||||
NET INCOME (LOSS) | 9,017 | 41,957 | ||||||
Net (income) loss attributable to noncontrolling interests | — | (27 | ) | |||||
Distributions on Series A redeemable preferred units | — | (25 | ) | |||||
Distributions on Series B cumulative convertible preferred units | (5,250 | ) | (5,250 | ) | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON AND SUBORDINATED UNITS | $ | 3,767 | $ | 36,655 | ||||
ALLOCATION OF NET INCOME (LOSS): | ||||||||
General partner interest | $ | — | $ | — | ||||
Common units | 1,905 | 24,329 | ||||||
Subordinated units | 1,862 | 12,326 | ||||||
$ | 3,767 | $ | 36,655 | |||||
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON AND SUBORDINATED UNIT: | ||||||||
Per common unit (basic) | $ | 0.02 | $ | 0.23 | ||||
Weighted average common units outstanding (basic) | 109,420 | 103,774 | ||||||
Per subordinated unit (basic) | $ | 0.02 | $ | 0.13 | ||||
Weighted average subordinated units outstanding (basic) | 96,329 | 95,395 | ||||||
Per common unit (diluted) | $ | 0.02 | $ | 0.23 | ||||
Weighted average common units outstanding (diluted) | 110,035 | 103,838 | ||||||
Per subordinated unit (diluted) | $ | 0.02 | $ | 0.13 | ||||
Weighted average subordinated units outstanding (diluted) | 96,329 | 95,395 |
Three-Month Period Ended March 31, 2019 | ||||||||||||||||||
Common units | Subordinated units | Partners' equity — common units | Partners' equity — subordinated units | Total equity | ||||||||||||||
BALANCE AT DECEMBER 31, 2018 | 108,363 | 96,329 | $ | 714,823 | $ | 189,440 | $ | 904,263 | ||||||||||
Repurchases of common and subordinated units | (588 | ) | — | (10,110 | ) | — | (10,110 | ) | ||||||||||
Issuance of common units, net of offering costs | — | — | (43 | ) | — | (43 | ) | |||||||||||
Issuance of common units for property acquisitions | 57 | — | 943 | — | 943 | |||||||||||||
Restricted units granted, net of forfeitures | 1,545 | — | — | — | — | |||||||||||||
Equity–based compensation | — | — | 13,669 | — | 13,669 | |||||||||||||
Distributions | — | — | (40,275 | ) | (35,642 | ) | (75,917 | ) | ||||||||||
Charges to partners' equity for accrued distribution equivalent rights | — | — | (1,044 | ) | — | (1,044 | ) | |||||||||||
Distributions on Series B cumulative convertible preferred units | — | — | (5,250 | ) | — | (5,250 | ) | |||||||||||
Net income (loss) | — | — | 7,155 | 1,862 | 9,017 | |||||||||||||
BALANCE AT MARCH 31, 2019 | 109,377 | 96,329 | $ | 679,868 | $ | 155,660 | $ | 835,528 |
Three-Month Period Ended March 31, 2018 | ||||||||||||||||||||||
Common units | Subordinated units | Partners' equity — common units | Partners' equity — subordinated units | Noncontrolling interests | Total equity | |||||||||||||||||
BALANCE AT DECEMBER 31, 2017 | 103,456 | 95,388 | $ | 603,116 | $ | 164,138 | $ | 867 | $ | 768,121 | ||||||||||||
Conversion of Series A redeemable preferred units | 736 | 964 | 10,498 | 13,750 | — | 24,248 | ||||||||||||||||
Repurchases of common and subordinated units | (451 | ) | (23 | ) | (8,099 | ) | (342 | ) | — | (8,441 | ) | |||||||||||
Issuance of common units, net of offering costs | 8 | — | 138 | — | — | 138 | ||||||||||||||||
Restricted units granted, net of forfeitures | 1,177 | — | — | — | — | — | ||||||||||||||||
Equity–based compensation1 | — | — | 18,075 | 219 | — | 18,294 | ||||||||||||||||
Distributions | — | — | (32,581 | ) | (19,912 | ) | (52 | ) | (52,545 | ) | ||||||||||||
Charges to partners' equity for accrued distribution equivalent rights | — | — | (661 | ) | — | — | (661 | ) | ||||||||||||||
Distributions on Series A redeemable preferred units | — | — | (13 | ) | (12 | ) | — | (25 | ) | |||||||||||||
Distributions on Series B cumulative convertible preferred units | — | — | (5,250 | ) | — | — | (5,250 | ) | ||||||||||||||
Net income (loss) | — | — | 29,592 | 12,338 | 27 | 41,957 | ||||||||||||||||
BALANCE AT MARCH 31, 2018 | 104,926 | 96,329 | $ | 614,815 | $ | 170,179 | $ | 842 | $ | 785,836 |
1 | The change in Partners' equity for equity-based compensation during the three-month period ended March 31, 2018 was incorrectly allocated between Partners' equity - common units and Partners' equity - subordinated units in the Partnership's prior reports. The Partnership concluded that this error was not material to any of the prior reporting periods. As such, the revision for this correction has been made to the prior periods presented. |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 9,017 | $ | 41,957 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation, depletion, and amortization | 27,833 | 28,570 | ||||||
Accretion of asset retirement obligations | 277 | 269 | ||||||
Amortization of deferred charges | 257 | 205 | ||||||
(Gain) loss on commodity derivative instruments | 41,183 | 16,333 | ||||||
Net cash (paid) received on settlement of commodity derivative instruments | 1,743 | (4,375 | ) | |||||
Equity-based compensation | 9,223 | 6,226 | ||||||
Exploratory dry hole expense | 4 | — | ||||||
(Gain) loss on sale of assets, net | — | (2 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 9,740 | (11,851 | ) | |||||
Prepaid expenses and other current assets | (541 | ) | (260 | ) | ||||
Accounts payable, accrued liabilities, and other | (8,522 | ) | (565 | ) | ||||
Settlement of asset retirement obligations | (40 | ) | (33 | ) | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 90,174 | 76,474 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisitions of oil and natural gas properties | (19,946 | ) | (32,154 | ) | ||||
Additions to oil and natural gas properties | (31,633 | ) | (46,250 | ) | ||||
Additions to oil and natural gas properties leasehold costs | (234 | ) | (524 | ) | ||||
Purchases of other property and equipment | (2,036 | ) | (5 | ) | ||||
Proceeds from the sale of oil and natural gas properties | 2 | 752 | ||||||
Proceeds from farmouts of oil and natural gas properties | 29,468 | 18,015 | ||||||
NET CASH USED IN INVESTING ACTIVITIES | (24,379 | ) | (60,166 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from issuance of common units, net of offering costs | (43 | ) | 138 | |||||
Distributions to common and subordinated unitholders | (75,917 | ) | (52,493 | ) | ||||
Distributions to Series A redeemable preferred unitholders | — | (690 | ) | |||||
Distributions to Series B cumulative convertible preferred unitholders | (5,250 | ) | — | |||||
Distributions to noncontrolling interests | — | (52 | ) | |||||
Redemptions of Series A redeemable preferred units | — | (2,115 | ) | |||||
Repurchases of common and subordinated units | (10,752 | ) | (8,441 | ) | ||||
Borrowings under credit facility | 98,000 | 105,000 | ||||||
Repayments under credit facility | (73,000 | ) | (57,000 | ) | ||||
NET CASH USED IN FINANCING ACTIVITIES | (66,962 | ) | (15,653 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,167 | ) | 655 | |||||
CASH AND CASH EQUIVALENTS – beginning of the period | 5,414 | 5,642 | ||||||
CASH AND CASH EQUIVALENTS – end of the period | $ | 4,247 | $ | 6,297 | ||||
SUPPLEMENTAL DISCLOSURE | ||||||||
Interest paid | $ | 5,197 | $ | 4,326 |
March 31, 2019 | December 31, 2018 | |||||||
(in thousands) | ||||||||
Accounts receivable: | ||||||||
Revenues from contracts with customers | $ | 97,816 | $ | 107,804 | ||||
Other | 5,511 | 5,344 | ||||||
Total accounts receivable | $ | 103,327 | $ | 113,148 |
Assets Acquired | Consideration Paid | ||||||||||||||||||
Proved | Unproved | Net Working Capital | Total Fair Value | Cash | |||||||||||||||
(in thousands) | |||||||||||||||||||
February | $ | 173 | $ | 8,437 | $ | 1 | $ | 8,611 | $ | 8,611 | |||||||||
March | 24 | — | — | 24 | 24 | ||||||||||||||
Total fair value | $ | 197 | $ | 8,437 | $ | 1 | $ | 8,635 | $ | 8,635 |
Assets Acquired | Consideration Paid | ||||||||||||||||||||||
Proved | Unproved | Net Working Capital | Total Fair Value | Cash | Fair Value of Common Units Issued | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
March | $ | 984 | $ | 21,452 | $ | 133 | $ | 22,569 | $ | 22,569 | $ | — | |||||||||||
June | 883 | 13,688 | 8 | 14,579 | 14,579 | — | |||||||||||||||||
July | 4,349 | 7,944 | 215 | 12,508 | 3,764 | 8,744 | |||||||||||||||||
August | 5,000 | 34,673 | 74 | 39,747 | 26,461 | 13,286 | |||||||||||||||||
September | 1,176 | — | — | 1,176 | 1,176 | — | |||||||||||||||||
November | 1,166 | — | — | 1,166 | 1,166 | — | |||||||||||||||||
Total fair value | $ | 13,558 | $ | 77,757 | $ | 430 | $ | 91,745 | $ | 69,715 | $ | 22,030 |
March 31, 2019 | ||||||||||||||
Classification | Balance Sheet Location | Gross Fair Value | Effect of Counterparty Netting | Net Carrying Value on Balance Sheet | ||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Current asset | Commodity derivative assets | $ | 11,221 | $ | (7,209 | ) | $ | 4,012 | ||||||
Long-term asset | Deferred charges and other long-term assets | 5,438 | (2,348 | ) | 3,090 | |||||||||
Total assets | $ | 16,659 | $ | (9,557 | ) | $ | 7,102 | |||||||
Liabilities: | ||||||||||||||
Current liability | Commodity derivative liabilities | $ | 9,176 | $ | (7,209 | ) | $ | 1,967 | ||||||
Long-term liability | Commodity derivative liabilities | 2,371 | (2,348 | ) | 23 | |||||||||
Total liabilities | $ | 11,547 | $ | (9,557 | ) | $ | 1,990 |
December 31, 2018 | ||||||||||||||
Classification | Balance Sheet Location | Gross Fair Value | Effect of Counterparty Netting | Net Carrying Value on Balance Sheet | ||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Current asset | Commodity derivative assets | $ | 38,746 | $ | (776 | ) | $ | 37,970 | ||||||
Long-term asset | Deferred charges and other long-term assets | 11,518 | (1,450 | ) | 10,068 | |||||||||
Total assets | $ | 50,264 | $ | (2,226 | ) | $ | 48,038 | |||||||
Liabilities: | ||||||||||||||
Current liability | Commodity derivative liabilities | $ | 776 | $ | (776 | ) | $ | — | ||||||
Long-term liability | Commodity derivative liabilities | 1,450 | (1,450 | ) | — | |||||||||
Total liabilities | $ | 2,226 | $ | (2,226 | ) | $ | — |
Three Months Ended March 31, | ||||||||
Derivatives not designated as hedging instruments | 2019 | 2018 | ||||||
(in thousands) | ||||||||
Beginning fair value of commodity derivative instruments | $ | 48,038 | $ | (5,028 | ) | |||
Gain (loss) on oil derivative instruments | (39,261 | ) | (14,476 | ) | ||||
Gain (loss) on natural gas derivative instruments | (1,922 | ) | (1,857 | ) | ||||
Net cash paid (received) on settlements of oil derivative instruments | (4,555 | ) | 5,148 | |||||
Net cash paid (received) on settlements of natural gas derivative instruments | 2,812 | (773 | ) | |||||
Net change in fair value of commodity derivative instruments | (42,926 | ) | (11,958 | ) | ||||
Ending fair value of commodity derivative instruments | $ | 5,112 | $ | (16,986 | ) |
Weighted Average Price (Per Bbl) | Range (Per Bbl) | ||||||||||||||
Period and Type of Contract | Volume (Bbl) | Low | High | ||||||||||||
Oil Swap Contracts: | |||||||||||||||
2019 | |||||||||||||||
First Quarter | 255,000 | $ | 58.54 | $ | 52.82 | $ | 65.58 | ||||||||
Second Quarter | 855,000 | 58.72 | 52.82 | 65.58 | |||||||||||
Third Quarter | 855,000 | 58.37 | 52.82 | 63.75 | |||||||||||
Fourth Quarter | 855,000 | 58.37 | 52.82 | 63.75 | |||||||||||
2020 | |||||||||||||||
First Quarter | 270,000 | $ | 57.87 | $ | 57.46 | $ | 58.65 | ||||||||
Second Quarter | 270,000 | 57.87 | 57.46 | 58.65 | |||||||||||
Third Quarter | 270,000 | 57.87 | 57.46 | 58.65 | |||||||||||
Fourth Quarter | 270,000 | 57.87 | 57.46 | 58.65 |
Weighted Average Floor Price (Per Bbl) | Weighted Average Ceiling Price (Per Bbl) | ||||||||||||
Period and Type of Contract | Volume (Bbl) | ||||||||||||
Oil Collar Contracts: | |||||||||||||
2019 | |||||||||||||
First Quarter | 20,000 | $ | 65.00 | $ | 74.00 | ||||||||
Second Quarter | 60,000 | 65.00 | 74.00 | ||||||||||
Third Quarter | 60,000 | 65.00 | 74.00 | ||||||||||
Fourth Quarter | 60,000 | 65.00 | 74.00 | ||||||||||
2020 | |||||||||||||
First Quarter | 210,000 | $ | 56.43 | $ | 67.14 | ||||||||
Second Quarter | 210,000 | 56.43 | 67.14 | ||||||||||
Third Quarter | 210,000 | 56.43 | 67.14 | ||||||||||
Fourth Quarter | 210,000 | 56.43 | 67.14 |
Weighted Average Price (Per MMBtu) | Range (Per MMBtu) | ||||||||||||||
Period and Type of Contract | Volume (MMBtu) | Low | High | ||||||||||||
Natural Gas Swap Contracts: | |||||||||||||||
2019 | |||||||||||||||
Second Quarter | 14,520,000 | $ | 2.96 | $ | 2.81 | $ | 3.20 | ||||||||
Third Quarter | 14,640,000 | 2.96 | 2.81 | 3.20 | |||||||||||
Fourth Quarter | 14,640,000 | 2.96 | 2.81 | 3.20 | |||||||||||
2020 | |||||||||||||||
First Quarter | 6,370,000 | $ | 2.72 | $ | 2.72 | $ | 2.73 | ||||||||
Second Quarter | 6,370,000 | 2.72 | 2.72 | 2.73 | |||||||||||
Third Quarter | 6,440,000 | 2.72 | 2.72 | 2.73 | |||||||||||
Fourth Quarter | 6,440,000 | 2.72 | 2.72 | 2.73 |
Fair Value Measurements Using | Effect of Counterparty Netting | Total | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of March 31, 2019 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Commodity derivative instruments | $ | — | $ | 16,659 | $ | — | $ | (9,557 | ) | $ | 7,102 | |||||||||
Financial Liabilities | ||||||||||||||||||||
Commodity derivative instruments | $ | — | $ | 11,547 | $ | — | $ | (9,557 | ) | $ | 1,990 | |||||||||
As of December 31, 2018 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Commodity derivative instruments | $ | — | $ | 50,264 | $ | — | $ | (2,226 | ) | $ | 48,038 | |||||||||
Financial Liabilities | ||||||||||||||||||||
Commodity derivative instruments | $ | — | $ | 2,226 | $ | — | $ | (2,226 | ) | $ | — |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Cash—short and long-term incentive plans | $ | 1,772 | $ | 1,634 | ||||
Equity-based compensation—restricted common and subordinated units | 3,019 | 3,405 | ||||||
Equity-based compensation—restricted performance units | 5,620 | 2,242 | ||||||
Board of Directors incentive plan | 585 | 579 | ||||||
Total incentive compensation expense | $ | 10,996 | $ | 7,860 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
(in thousands, except per unit amounts) | ||||||||
NET INCOME (LOSS) | $ | 9,017 | $ | 41,957 | ||||
Net (income) loss attributable to noncontrolling interests | — | (27 | ) | |||||
Distributions on Series A redeemable preferred units | — | (25 | ) | |||||
Distributions on Series B cumulative convertible preferred units | (5,250 | ) | (5,250 | ) | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON AND SUBORDINATED UNITS | 3,767 | 36,655 | ||||||
ALLOCATION OF NET INCOME (LOSS): | ||||||||
General partner interest | $ | — | $ | — | ||||
Common units | 1,905 | 24,329 | ||||||
Subordinated units | 1,862 | 12,326 | ||||||
$ | 3,767 | $ | 36,655 | |||||
Weighted average common units outstanding: | ||||||||
Weighted average common units outstanding (basic) | 109,420 | 103,774 | ||||||
Effect of dilutive securities | 615 | 64 | ||||||
Weighted average common units outstanding (diluted) | 110,035 | 103,838 | ||||||
Weighted average subordinated units outstanding: | ||||||||
Weighted average subordinated units outstanding (basic) | 96,329 | 95,395 | ||||||
Effect of dilutive securities | — | — | ||||||
Weighted average subordinated units outstanding (diluted) | 96,329 | 95,395 | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON AND SUBORDINATED UNIT: | ||||||||
Per common unit (basic) | $ | 0.02 | $ | 0.23 | ||||
Per subordinated unit (basic) | 0.02 | 0.13 | ||||||
Per common unit (diluted) | 0.02 | 0.23 | ||||||
Per subordinated unit (diluted) | 0.02 | 0.13 |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in thousands) | ||||||
Potentially dilutive securities (common units): | ||||||
Series A redeemable preferred units on an as-converted basis | — | 181 | ||||
Series B cumulative convertible preferred units on an as-converted basis | 14,969 | 15,063 | ||||
14,969 | 15,244 | |||||
Potentially dilutive securities (subordinated units): | ||||||
Series A redeemable preferred units on an as-converted basis | — | 247 | ||||
— | 247 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
DISTRIBUTIONS DECLARED AND PAID: | ||||||||
Per common unit | $ | 0.3700 | $ | 0.3125 | ||||
Per subordinated unit | 0.3700 | 0.2088 |
• | our ability to execute our business strategies; |
• | the volatility of realized oil and natural gas prices; |
• | the level of production on our properties; |
• | the overall supply and demand for oil and natural gas, regional supply and demand factors, delays, or interruptions of production; |
• | our ability to replace our oil and natural gas reserves; |
• | our ability to identify, complete, and integrate acquisitions; |
• | general economic, business, or industry conditions; |
• | competition in the oil and natural gas industry; |
• | the ability of our operators to obtain capital or financing needed for development and exploration operations; |
• | title defects in the properties in which we invest; |
• | the availability or cost of rigs, equipment, raw materials, supplies, oilfield services, or personnel; |
• | restrictions on the use of water for hydraulic fracturing; |
• | the availability of pipeline capacity and transportation facilities; |
• | the ability of our operators to comply with applicable governmental laws and regulations and to obtain permits and governmental approvals; |
• | federal and state legislative and regulatory initiatives relating to hydraulic fracturing; |
• | future operating results; |
• | future cash flows and liquidity, including our ability to generate sufficient cash to pay quarterly distributions; |
• | exploration and development drilling prospects, inventories, projects, and programs; |
• | operating hazards faced by our operators; |
• | the ability of our operators to keep pace with technological advancements; and |
• | certain factors discussed elsewhere in this filing. |
2019 | 2018 | |||||||
Benchmark Prices1 | First Quarter | First Quarter | ||||||
WTI spot crude oil ($/Bbl)1 | $ | 60.19 | $ | 64.87 | ||||
Henry Hub spot natural gas ($/MMBtu)1 | $ | 2.73 | $ | 2.81 |
2019 | 2018 | |||||
U.S. Rotary Rig Count1 | First Quarter | First Quarter | ||||
Oil | 816 | 797 | ||||
Natural gas | 190 | 194 | ||||
Other | — | 2 | ||||
Total | 1,006 | 993 |
1 | Source: Baker Hughes Incorporated |
2019 | 2018 | |||||
Region1 | First Quarter | First Quarter | ||||
East | 210 | 229 | ||||
Midwest | 241 | 266 | ||||
Mountain | 64 | 87 | ||||
Pacific | 113 | 166 | ||||
South Central | 502 | 606 | ||||
Total | 1,130 | 1,354 |
1 | Source: EIA |
• | volumes of oil and natural gas produced; |
• | commodity prices including the effect of derivative instruments; and |
• | Adjusted EBITDA and distributable cash flow. |
• | Oil. The substantial majority of our oil production is sold at prevailing market prices, which fluctuate in response to many factors that are outside of our control. NYMEX light sweet crude oil, commonly referred to as WTI, is the prevailing domestic oil pricing index. The majority of our oil production is priced at the prevailing market price with the final realized price affected by both quality and location differentials. |
• | Natural Gas. The NYMEX price quoted at Henry Hub is a widely used benchmark for the pricing of natural gas in the United States. The actual volumetric prices realized from the sale of natural gas differ from the quoted NYMEX price as a result of quality and location differentials. |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Net income (loss) | $ | 9,017 | $ | 41,957 | ||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||
Depreciation, depletion, and amortization | 27,833 | 28,570 | ||||||
Interest expense | 5,525 | 4,521 | ||||||
Income tax expense | 131 | 1,507 | ||||||
Accretion of asset retirement obligations | 277 | 269 | ||||||
Equity–based compensation | 9,223 | 6,226 | ||||||
Unrealized (gain) loss on commodity derivative instruments | 42,926 | 11,958 | ||||||
Adjusted EBITDA | 94,932 | 95,008 | ||||||
Adjustments to reconcile to distributable cash flow: | ||||||||
Change in deferred revenue | (304 | ) | 1,303 | |||||
Cash interest expense | (5,269 | ) | (4,316 | ) | ||||
(Gain) loss on sale of assets, net | — | (2 | ) | |||||
Estimated replacement capital expenditures1 | (2,750 | ) | (3,250 | ) | ||||
Cash paid to noncontrolling interests | — | (52 | ) | |||||
Preferred unit distributions | (5,250 | ) | (5,275 | ) | ||||
Distributable cash flow | $ | 81,359 | $ | 83,416 |
1 | The Board established a replacement capital expenditure estimate of $13.0 million for the period of April 1, 2017 to March 31, 2018 and $11.0 million for the period of April 1, 2018 to March 31, 2019. |
Three Months Ended March 31, | |||||||||||||||
2019 | 2018 | Variance | |||||||||||||
(Dollars in thousands, except for realized prices) | |||||||||||||||
Production: | |||||||||||||||
Oil and condensate (MBbls) | 1,108 | 1,190 | (82 | ) | (6.9 | )% | |||||||||
Natural gas (MMcf)1 | 18,615 | 15,742 | 2,873 | 18.3 | % | ||||||||||
Equivalents (MBoe) | 4,211 | 3,814 | 397 | 10.4 | % | ||||||||||
Equivalents/day (MBoe) | 46.8 | 42.4 | 4.4 | 10.4 | % | ||||||||||
Revenue: | |||||||||||||||
Oil and condensate sales | $ | 57,704 | $ | 72,983 | $ | (15,279 | ) | (20.9 | )% | ||||||
Natural gas and natural gas liquids sales1 | 61,640 | 53,245 | 8,395 | 15.8 | % | ||||||||||
Lease bonus and other income | 5,645 | 4,599 | 1,046 | 22.7 | % | ||||||||||
Revenue from contracts with customers | 124,989 | 130,827 | (5,838 | ) | (4.5 | )% | |||||||||
Gain (loss) on commodity derivative instruments | (41,183 | ) | (16,333 | ) | (24,850 | ) | 152.1 | % | |||||||
Total revenue | $ | 83,806 | $ | 114,494 | $ | (30,688 | ) | (26.8 | )% | ||||||
Realized prices, without derivatives: | |||||||||||||||
Oil and condensate ($/Bbl) | $ | 52.08 | $ | 61.33 | $ | (9.25 | ) | (15.1 | )% | ||||||
Natural gas ($/Mcf)1 | 3.31 | 3.38 | (0.07 | ) | (2.1 | )% | |||||||||
Equivalents ($/Boe) | $ | 28.34 | $ | 33.10 | $ | (4.76 | ) | (14.4 | )% | ||||||
Operating expenses: | |||||||||||||||
Lease operating expense | $ | 5,292 | $ | 4,248 | $ | 1,044 | 24.6 | % | |||||||
Production costs and ad valorem taxes | 14,592 | 14,925 | (333 | ) | (2.2 | )% | |||||||||
Exploration expense | 4 | 3 | 1 | NM2 | |||||||||||
Depreciation, depletion, and amortization | 27,833 | 28,570 | (737 | ) | (2.6 | )% | |||||||||
General and administrative | 21,214 | 18,521 | 2,693 | 14.5 | % |
1 | As a mineral and royalty interest owner, we are often provided insufficient and inconsistent data on NGL volumes by our operators. As a result, we are unable to reliably determine the total volumes of NGLs associated with the production of natural gas on our acreage. Accordingly, no NGL volumes are included in our reported production; however, revenue attributable to NGLs is included in our natural gas revenue and our calculation of realized prices for natural gas. |
2 | Not meaningful |
Three Months Ended March 31, | ||||||||||||
2019 | 2018 | Change | ||||||||||
(in thousands) | ||||||||||||
Cash flows provided by operating activities | $ | 90,174 | $ | 76,474 | $ | 13,700 | ||||||
Cash flows used in investing activities | (24,379 | ) | (60,166 | ) | 35,787 | |||||||
Cash flows used in financing activities | (66,962 | ) | (15,653 | ) | (51,309 | ) |
Purchases of Common Units | ||||||||||||||
Period | Total Number of Common Units Purchased1 | Average Price Paid Per Unit | Total Number of Common Units Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Common Units That May Yet Be Purchased Under the Plans or Programs | ||||||||||
January 1 - January 31, 2019 | 187,821 | $ | 15.98 | — | $ | 72,992,543 | ||||||||
February 1 - February 28, 2019 | 341,387 | 17.76 | — | 72,992,543 | ||||||||||
March 1 - March 31, 2019 | 59,215 | 17.68 | — | 72,992,543 |
1 | Consists of units withheld to satisfy tax withholding obligations upon the vesting of certain restricted common units held by our executive officers and certain other employees. |
Exhibit Number | Description | |
Certificate of Limited Partnership of Black Stone Minerals, L.P. (incorporated herein by reference to Exhibit 3.1 to Black Stone Minerals, L.P.’s Registration Statement on Form S-1 filed on March 19, 2015 (SEC File No. 333-202875)). | ||
Certificate of Amendment to Certificate of Limited Partnership of Black Stone Minerals, L.P. (incorporated herein by reference to Exhibit 3.2 to Black Stone Minerals, L.P.’s Registration Statement on Form S-1 filed on March 19, 2015 (SEC File No. 333-202875)). | ||
First Amended and Restated Agreement of Limited Partnership of Black Stone Minerals, L.P., dated May 6, 2015, by and among Black Stone Minerals GP, L.L.C. and Black Stone Minerals Company, L.P., (incorporated herein by reference to Exhibit 3.1 of Black Stone Minerals, L.P.’s Current Report on Form 8-K filed on May 6, 2015 (SEC File No. 001-37362)). | ||
Amendment No. 1 to First Amended and Restated Agreement of Limited Partnership of Black Stone Minerals, L.P., dated as of April 15, 2016 (incorporated herein by reference to Exhibit 3.1 of Black Stone Minerals, L.P.’s Current Report on Form 8-K filed on April 19, 2016 (SEC File No. 001-37362)). | ||
Amendment No. 2 to First Amended and Restated Agreement of Limited Partnership of Black Stone Minerals, L.P., dated as of November 28, 2017 (incorporated herein by reference to Exhibit 3.1 of Black Stone Minerals, L.P.’s Current Report on Form 8-K filed on November 29, 2017 (SEC File No. 001-37362)). | ||
Amendment No. 3 to First Amended and Restated Agreement of Limited Partnership of Black Stone Minerals, L.P., dated as of December 11, 2017 (incorporated herein by reference to Exhibit 3.1 of Black Stone Minerals, L.P.’s Current Report on Form 8-K filed on December 12, 2017 (SEC File No. 001-37362)). | ||
Registration Rights Agreement, dated as of November 28, 2017, by and between Black Stone Minerals, L.P. and Mineral Royalties One, L.L.C. (incorporated herein by reference to Exhibit 4.1 of Black Stone Minerals, L.P.’s Current Report on Form 8-K filed on November 29, 2017 (SEC File No. 001-37362)). | ||
Certification of Chief Executive Officer of Black Stone Minerals, L.P. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Financial Officer of Black Stone Minerals, L.P. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Executive Officer and Chief Financial Officer of Black Stone Minerals, L.P. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
*101.INS | XBRL Instance Document | |
*101.SCH | XBRL Schema Document | |
*101.CAL | XBRL Calculation Linkbase Document | |
*101.LAB | XBRL Label Linkbase Document | |
*101.PRE | XBRL Presentation Linkbase Document | |
*101.DEF | XBRL Definition Linkbase Document |
* | Filed or furnished herewith. |
BLACK STONE MINERALS, L.P. | |||
By: | Black Stone Minerals GP, L.L.C., its general partner | ||
Date: May 7, 2019 | By: | /s/ Thomas L. Carter, Jr. | |
Thomas L. Carter, Jr. | |||
Chief Executive Officer and Chairman | |||
(Principal Executive Officer) | |||
Date: May 7, 2019 | By: | /s/ Jeffrey P. Wood | |
Jeffrey P. Wood | |||
President and Chief Financial Officer | |||
(Principal Financial Officer) |
1. | I have reviewed this report on Form 10-Q of Black Stone Minerals, L.P. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 7, 2019 | /s/ Thomas L. Carter, Jr. | ||
Thomas L. Carter, Jr. | |||
Chief Executive Officer | |||
Black Stone Minerals GP, L.L.C., the general partner of Black Stone Minerals, L.P. |
1. | I have reviewed this report on Form 10-Q of Black Stone Minerals, L.P. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 7, 2019 | /s/ Jeffrey P. Wood | ||
Jeffrey P. Wood | |||
President and Chief Financial Officer | |||
Black Stone Minerals GP, L.L.C., the general partner of Black Stone Minerals, L.P. |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: May 7, 2019 | /s/ Thomas L. Carter, Jr. | ||
Thomas L. Carter, Jr. Chief Executive Officer Black Stone Minerals GP, L.L.C., the general partner of Black Stone Minerals, L.P. | |||
Date: May 7, 2019 | /s/ Jeffrey P. Wood | ||
Jeffrey P. Wood President and Chief Financial Officer Black Stone Minerals GP, L.L.C., the general partner of Black Stone Minerals, L.P. |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 30, 2019 |
|
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BSM | |
Entity Registrant Name | Black Stone Minerals, L.P. | |
Entity Central Index Key | 0001621434 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Emerging Growth Company | false | |
Small Business | false | |
Common Units | ||
Document Information [Line Items] | ||
Entity Partnership Units Outstanding (in shares) | 109,382,957 | |
Subordinated Units | ||
Document Information [Line Items] | ||
Entity Partnership Units Outstanding (in shares) | 96,328,836 | |
Preferred Units | ||
Document Information [Line Items] | ||
Entity Partnership Units Outstanding (in shares) | 14,711,219 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Oil and natural gas properties, unproved property costs | $ 1,084,737 | $ 1,063,884 |
Other property and equipment accumulated depreciation and amortization | $ 0 | $ 14,433 |
Series B Cumulative Convertible Preferred Units | ||
Partners' equity, preferred units, outstanding (in shares) | 14,711 | 14,711 |
Common Units | ||
Partners' equity - units, outstanding (in shares) | 109,377 | 108,363 |
Subordinated Units | ||
Partners' equity - units, outstanding (in shares) | 96,329 | 96,329 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 9,017 | $ 41,957 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 27,833 | 28,570 |
Accretion of asset retirement obligations | 277 | 269 |
Amortization of deferred charges | 257 | 205 |
(Gain) loss on commodity derivative instruments | 41,183 | 16,333 |
Net cash (paid) received on settlement of commodity derivative instruments | 1,743 | (4,375) |
Equity-based compensation | 9,223 | 6,226 |
Exploratory dry hole expense | 4 | 0 |
(Gain) loss on sale of assets, net | 0 | (2) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 9,740 | (11,851) |
Prepaid expenses and other current assets | (541) | (260) |
Accounts payable, accrued liabilities, and other | (8,522) | (565) |
Settlement of asset retirement obligations | (40) | (33) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 90,174 | 76,474 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisitions of oil and natural gas properties | (19,946) | (32,154) |
Additions to oil and natural gas properties | (31,633) | (46,250) |
Additions to oil and natural gas properties leasehold costs | (234) | (524) |
Purchases of other property and equipment | (2,036) | (5) |
Proceeds from the sale of oil and natural gas properties | 2 | 752 |
Proceeds from farmouts of oil and natural gas properties | 29,468 | 18,015 |
NET CASH USED IN INVESTING ACTIVITIES | (24,379) | (60,166) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common units, net of offering costs | (43) | 138 |
Distributions to noncontrolling interests | 0 | (52) |
Redemptions of Series A redeemable preferred units | 0 | (2,115) |
Borrowings under credit facility | 98,000 | 105,000 |
Repayments under credit facility | (73,000) | (57,000) |
NET CASH USED IN FINANCING ACTIVITIES | (66,962) | (15,653) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,167) | 655 |
CASH AND CASH EQUIVALENTS – beginning of the period | 5,414 | 5,642 |
CASH AND CASH EQUIVALENTS – end of the period | 4,247 | 6,297 |
SUPPLEMENTAL DISCLOSURE | ||
Interest paid | 5,197 | 4,326 |
Common and Subordinated Units | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Distributions to unitholders | (75,917) | (52,493) |
Repurchases of common and subordinated units | (10,752) | (8,441) |
Preferred Units | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Distributions to unitholders | 0 | (690) |
Series B cumulative convertible preferred units on an as-converted basis | Preferred Units | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Distributions to unitholders | $ (5,250) | $ 0 |
Business and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Description of the Business Black Stone Minerals, L.P. (“BSM” or the “Partnership”) is a publicly traded Delaware limited partnership that owns oil and natural gas mineral interests, which make up the vast majority of the asset base. The Partnership's assets also include nonparticipating royalty interests and overriding royalty interests. These interests, which are substantially non-cost-bearing, are collectively referred to as “mineral and royalty interests.” The Partnership’s mineral and royalty interests are located in 41 states in the continental United States, including all of the major onshore producing basins. The Partnership also owns non-operated working interests in certain oil and natural gas properties. The Partnership's common units trade on the New York Stock Exchange under the symbol "BSM." Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Partnership have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all disclosures required for financial statements prepared in conformity with GAAP. Accordingly, the accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the Partnership’s consolidated financial statements included in the Partnership’s 2018 Annual Report on Form 10-K. The consolidated financial statements include the consolidated results of the Partnership. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year. In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for the fair presentation of the financial results for all periods presented have been reflected. All intercompany balances and transactions have been eliminated. The Partnership evaluates the significant terms of its investments to determine the method of accounting to be applied to each respective investment. Investments in which the Partnership has less than a 20% ownership interest and does not have control or exercise significant influence are accounted for using fair value or cost minus impairment if fair value is not readily determinable. Investments in which the Partnership exercises control are consolidated, and the noncontrolling interests of such investments, which are not attributable directly or indirectly to the Partnership, are presented as a separate component of net income and equity in the accompanying consolidated financial statements. The unaudited interim consolidated financial statements include undivided interests in oil and natural gas property rights. The Partnership accounts for its share of oil and natural gas property rights by reporting its proportionate share of assets, liabilities, revenues, costs, and cash flows within the relevant lines on the accompanying unaudited interim consolidated balance sheets, statements of operations, and statements of cash flows. Segment Reporting The Partnership operates in a single operating and reportable segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The Partnership’s chief executive officer has been determined to be the chief operating decision maker and allocates resources and assesses performance based upon financial information at the consolidated level. |
Summary of Significant Accounting Policies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies Significant accounting policies are disclosed in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2018. There have been no changes in such policies or the application of such policies during the three months ended March 31, 2019, with the exception of ASC 842, as defined below. Accounts Receivable The following table presents information about the Partnership's accounts receivable:
Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), that supersedes Accounting Standards Codification ("ASC") 840, Leases by requiring lessees to recognize lease assets and lease liabilities classified as operating leases on the balance sheet. See Note 3 - Impact of ASC 842 Adoption for further details related to the Partnership's adoption of this standard. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which will remove, modify, and add certain required disclosures on fair value measurements. As amended, Topic 820 will no longer require the disclosure of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy of timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. In addition, certain modifications to current disclosure requirements will be made, including clarifying that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Certain disclosure requirements will also be added, including the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in place of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The new standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The Partnership does not plan to early adopt and is evaluating the impact that the new accounting guidance will have on its consolidated financial statements and related disclosures. |
Impact of ASC 842 Adoption |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Leases [Abstract] | |
Impact of ASC 606 Adoption | IMPACT OF ASC 842 ADOPTION Leases On January 1, 2019, the Partnership adopted ASU 2016-02, Leases (Topic 842) using the modified retrospective method. This ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the previous guidance. The Partnership used January 1, 2019, the beginning of the period of adoption, as its date of initial application. The Partnership elected the package of practical expedients upon transition which will retain the lease classification for leases and any unamortized initial direct costs that existed prior to the adoption of the standard. The adoption of the standard resulted in the recognition of operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheet as of January 1, 2019. ROU assets and operating lease liabilities were less than 1% of the Partnership's total assets as of March 31, 2019 and were not considered material to the Partnership. There was no related impact on the consolidated statement of operations. The standard had no impact on the Partnership’s debt covenant compliance under existing agreements. The Partnership determines if an arrangement is a lease at inception by considering whether (1) explicitly or implicitly identified assets have been deployed in the agreement and (2) the Partnership obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. Operating leases are included in Deferred charges and other long-term assets, Other current liabilities, and Other long-term liabilities in the consolidated balance sheets. As of March 31, 2019, none of the Partnership’s leases were classified as financing leases. ROU assets represent the Partnership’s right to use an underlying asset for the lease term and operating lease liabilities represent the Partnership’s obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs, prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Partnership uses the implicit rate, when readily determinable, or its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The lease terms may include periods covered by options to extend the lease when it is reasonably certain that the Partnership will exercise that option and periods covered by options to terminate the lease when it is not reasonably certain that the Partnership will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Partnership made an accounting policy election to not recognize leases with terms of less than twelve months on the consolidated balance sheets and recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. In the event that the Partnership’s assumptions and expectations change, it may have to revise its ROU assets and operating lease liabilities. |
Oil and Natural Gas Properties Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil and Natural Gas Properties Acquisitions | OIL AND NATURAL GAS PROPERTIES ACQUISITIONS Acquisitions of proved oil and natural gas properties and working interests are considered business combinations and are recorded at their estimated fair value as of the acquisition date. Acquisitions of unproved oil and natural gas properties are considered asset acquisitions and are recorded at cost. 2019 Acquisitions During the three months ended March 31, 2019, the Partnership closed on multiple acquisitions of mineral and royalty interests for total consideration of $20.9 million. Acquisitions that included proved oil and natural gas properties were considered business combinations and were primarily located in the Permian Basin. These acquisitions were funded with borrowings under the Credit Facility (as defined in Note 7 - Credit Facility) and funds from operating activities. Acquisition related costs of less than $0.1 million were expensed and included in the General and administrative expense line item of the consolidated statement of operations for the three months ended March 31, 2019. The following table summarizes these acquisitions which were considered business combinations:
In addition, during the three months ended March 31, 2019, the Partnership acquired mineral and royalty interests in unproved oil and natural gas properties from various sellers for an aggregate of $12.3 million. These acquisitions were considered asset acquisitions and were primarily located in East Texas. The cash portion of the consideration paid for these acquisitions of $11.4 million was funded with borrowings under the Credit Facility and funds from operating activities, and $0.9 million was funded through the issuance of common units of the Partnership based on the fair values of the common units issued on the acquisition dates. 2018 Acquisitions During the year ended December 31, 2018, the Partnership closed on multiple acquisitions of mineral and royalty interests for total consideration of $149.9 million. Acquisitions that included proved oil and natural gas properties were considered business combinations and were primarily located in the Permian Basin. The cash portion of the consideration paid for these acquisitions was funded with borrowings under the Credit Facility and funds from operating activities. Acquisition related costs of $0.2 million were expensed and included in the General and administrative expense line item of the consolidated statement of operations for the year ended December 31, 2018. The following table summarizes these acquisitions which were considered business combinations:
In addition, during 2018, the Partnership acquired mineral and royalty interests in unproved oil and natural gas properties from various sellers for an aggregate of $58.2 million. These acquisitions were considered asset acquisitions and were primarily located in East Texas and the Permian Basin. The cash portion of the consideration paid for these acquisitions of $57.6 million was funded with borrowings under the Credit Facility and funds from operating activities, and $0.6 million was funded through the issuance of common units of the Partnership based on the fair values of the common units issued on the acquisition dates. During 2018, the Partnership acquired the remaining noncontrolling interest in certain subsidiaries for $1.7 million in cash and merged the subsidiaries into its existing structure. Farmout Agreements Canaan Farmout On February 21, 2017, the Partnership announced that it had entered into a farmout agreement with Canaan Resource Partners ("Canaan") which covers certain Haynesville and Bossier shale acreage in San Augustine County, Texas operated by XTO Energy Inc., a subsidiary of Exxon Mobil Corporation. The Partnership has an approximate 50% working interest in the acreage and is the largest mineral owner. A total of 20 wells were drilled over an initial phase, beginning with wells spud after January 1, 2017. Canaan has elected to participate in an additional phase that began in September 2018 and will continue for the lesser of 2 years or until 20 wells have been drilled. After the completion of the second phase, Canaan will have the option to elect to participate in a similar third phase. During the first three phases of the agreement, Canaan commits on a phase-by-phase basis and funds 80% of the Partnership's drilling and completion costs and is assigned 80% of the Partnership's working interests in such wells (40% working interest on an 8/8ths basis) as the wells are drilled. After the third phase, Canaan can earn 40% of the Partnership’s working interest (20% working interest on an 8/8ths basis) in additional wells drilled in the area by continuing to fund 40% of the Partnership's costs for those wells on a well-by-well basis. The Partnership will receive an overriding royalty interest (“ORRI”) before payout and an increased ORRI after payout on all wells drilled under the agreement. From the inception of the agreement through March 31, 2019, the Partnership has received $86.4 million from Canaan under the agreement. As of March 31, 2019, the Partnership had assigned to Canaan working interests in certain wells drilled and completed, and as such, $8.9 million of the farmout reimbursements received from Canaan are included in the Other long-term liabilities line item of the consolidated balance sheet. Pivotal Farmout On November 21, 2017, the Partnership entered into a farmout agreement with Pivotal Petroleum Partners (“Pivotal”), a portfolio company of Tailwater Capital, LLC. The farmout agreement covers substantially all of the Partnership's remaining working interests under active development in the Shelby Trough area of East Texas, targeting the Haynesville and Bossier shale acreage (after giving effect to the Canaan Farmout), until November 2025. In wells operated by XTO Energy Inc. in San Augustine County, Texas, Pivotal will earn the Partnership's remaining working interest not covered by the Canaan Farmout (10% working interest on an 8/8th basis), as well as 100% of the Partnership's working interests (ranging from approximately 12.5% to 25% on an 8/8ths basis) in wells operated by its other major operator in San Augustine and Angelina counties, Texas. Initially, Pivotal is obligated to fund the development of up to 80 wells across several development areas and then has options to continue funding the Partnership's working interest across those areas for the duration of the farmout agreement. Pivotal will fund designated groups of wells. Once Pivotal achieves a specified payout for a designated well group, the Partnership will obtain a majority of the original working interest in such well group. From the inception of the agreement through March 31, 2019, the Partnership received $86.8 million from Pivotal under the agreement. As of March 31, 2019, the Partnership had assigned to Pivotal working interests in certain wells drilled and completed, and as such, $63.1 million of the farmout reimbursements received from Pivotal are included in the Other long-term liabilities line item of the consolidated balance sheet. As of December 31, 2018, $11.6 million and $41.2 million were included in the Other long-term liabilities line item of the consolidated balance sheet related to the farmout agreements with Canaan and Pivotal, respectively. |
Commodity Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Derivatives And Financial Instruments | COMMODITY DERIVATIVE FINANCIAL INSTRUMENTS The Partnership’s ongoing operations expose it to changes in the market price for oil and natural gas. To mitigate the inherent commodity price risk associated with its operations, the Partnership uses oil and natural gas commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts and other contractual arrangements. The Partnership enters into oil and natural gas derivative contracts that contain netting arrangements with each counterparty. The Partnership does not enter into derivative instruments for speculative purposes. As of March 31, 2019, the Partnership’s open derivative contracts consisted of fixed-price swap contracts and costless collar contracts. A fixed-price swap contract between the Partnership and the counterparty specifies a fixed commodity price and a future settlement date. A costless collar contract between the Partnership and the counterparty specifies a floor and a ceiling commodity price and a future settlement date. The Partnership has not designated any of its contracts as fair value or cash flow hedges. Accordingly, the changes in the fair value of the contracts are included in the consolidated statement of operations in the period of the change. All derivative gains and losses from the Partnership’s derivative contracts have been recognized in revenue in the Partnership's accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in the Partnership’s accompanying consolidated balance sheets as of March 31, 2019 and December 31, 2018. See Note 6 – Fair Value Measurements for further discussion. The Partnership's derivative contracts expose it to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of the Partnership's commodity derivative assets. While the Partnership does not require its derivative contract counterparties to post collateral, the Partnership does evaluate the credit standing of such counterparties as deemed appropriate. This evaluation includes reviewing a counterparty’s credit rating and latest financial information. As of March 31, 2019, the Partnership had nine counterparties, all of which are rated Baa1 or better by Moody’s and are lenders under the Credit Facility. The tables below summarize the fair values and classifications of the Partnership’s derivative instruments, as well as the gross recognized derivative assets, liabilities, and amounts offset in the consolidated balance sheets as of each date:
Changes in the fair values of the Partnership’s derivative instruments (both assets and liabilities) are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the periods presented:
The Partnership had the following open derivative contracts for oil as of March 31, 2019:
The Partnership had the following open derivative contracts for natural gas as of March 31, 2019:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in an orderly transaction between market participants at the measurement date. Further, ASC 820, Fair Value Measurement, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and includes certain disclosure requirements. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1—Unadjusted quoted prices for identical assets or liabilities in active markets. Level 2—Quoted prices for similar assets or liabilities in non-active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Inputs that are unobservable and significant to the fair value measurement (including the Partnership’s own assumptions in determining fair value). A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. There were no transfers into, or out of, the three levels of the fair value hierarchy for the three months ended March 31, 2019 or the year ended December 31, 2018. The carrying value of the Partnership's cash and cash equivalents, receivables, and payables approximate fair value due to the short-term nature of the instruments. The estimated carrying value of all debt as of March 31, 2019 and December 31, 2018 approximated the fair value due to variable market rates of interest. These debt fair values, which are Level 3 measurements, were estimated based on the Partnership’s incremental borrowing rates for similar types of borrowing arrangements, when quoted market prices were not available. The estimated fair values of the Partnership’s financial instruments are not necessarily indicative of the amounts that would be realized in a current market exchange. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Partnership estimated the fair value of derivative instruments using the market approach via a model that uses inputs that are observable in the market or can be derived from, or corroborated by, observable data. See Note 5 – Commodity Derivative Financial Instruments for further discussion. The following table presents information about the Partnership’s assets and liabilities measured at fair value on a recurring basis:
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Nonfinancial assets and liabilities measured at fair value on a non-recurring basis include certain nonfinancial assets and liabilities as may be acquired in a business combination and measurements of oil and natural gas property values for assessment of impairment. The determination of the fair values of proved and unproved properties acquired in business combinations are estimated by discounting projected future cash flows. The factors used to determine fair value include estimates of economic reserves, future operating and development costs, future commodity prices, timing of future production, and a risk-adjusted discount rate. The Partnership has designated these measurements as Level 3. The Partnership’s fair value assessments for recent acquisitions are included in Note 4 – Oil and Natural Gas Properties Acquisitions. Oil and natural gas properties are measured at fair value on a non-recurring basis using the income approach when assessing for impairment. Proved and unproved oil and natural gas properties are reviewed for impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of those properties. When assessing producing properties for impairment, the Partnership compares the expected undiscounted projected future cash flows of the producing properties to the carrying amount of the producing properties to determine recoverability. When the carrying amount exceeds its estimated undiscounted future cash flows, the carrying amount is written down to its fair value, which is measured as the present value of the projected future cash flows of such properties. The factors used to determine fair value include estimates of proved reserves, future commodity prices, timing of future production, future capital expenditures, and a risk-adjusted discount rate. The Partnership’s estimates of fair value have been determined at discrete points in time based on relevant market data. These estimates involve uncertainty and cannot be determined with precision. There were no significant changes in valuation techniques or related inputs as of March 31, 2019 or December 31, 2018. There were no assets measured at fair value on a non-recurring basis, after initial recognition, for the three months ended March 31, 2019 and 2018. |
Credit Facility |
3 Months Ended |
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Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility | CREDIT FACILITY The Partnership maintains a senior secured revolving credit agreement, as amended (the “Credit Facility”). The Credit Facility has an aggregate maximum credit amount of $1.0 billion and terminates on November 1, 2022. The commitment of the lenders equals the lesser of the aggregate maximum credit amount and the borrowing base. The amount of the borrowing base is redetermined semi-annually, usually in October and April, and is derived from the value of the Partnership’s oil and natural gas properties as determined by the lender syndicate using pricing assumptions that often differ from the current market for future prices. Effective May 4, 2018, the borrowing base redetermination increased the borrowing base from $550.0 million to $600.0 million and, effective October 31, 2018, the borrowing base was further increased to $675.0 million. Outstanding borrowings under the Credit Facility bear interest at a floating rate elected by the Partnership equal to an alternative base rate (which is equal to the greatest of the Prime Rate, the Federal Funds effective rate plus 0.50%, or 1-month LIBOR plus 1.00%) or LIBOR, in each case, plus the applicable margin. Prior to October 31, 2018, the applicable margin ranged from 1.00% to 2.00% in the case of the alternative base rate and from 2.00% to 3.00% in the case of LIBOR, depending on the borrowings outstanding in relation to the borrowing base. Effective October 31, 2018, the applicable margin for the alternative base rate was reduced to between 0.75% and 1.75% and the applicable margin for LIBOR was reduced to between 1.75% and 2.75%. The weighted-average interest rate of the Credit Facility was 4.75% and 4.76% as of March 31, 2019 and December 31, 2018, respectively. Accrued interest is payable at the end of each calendar quarter or at the end of each interest period, unless the interest period is longer than 90 days, in which case interest is payable at the end of every 90-day period. In addition, a commitment fee is payable at the end of each calendar quarter based on either a rate of 0.375% if the borrowing base utilization percentage is less than 50%, or 0.500% if the borrowing base utilization percentage is equal to or greater than 50%. The Credit Facility is secured by substantially all of the Partnership’s oil and natural gas production and assets. The Credit Facility contains various limitations on future borrowings, leases, hedging, and sales of assets. Additionally, the Credit Facility requires the Partnership to maintain a current ratio of not less than 1.0:1.0 and a ratio of total debt to EBITDAX (Earnings before Interest, Taxes, Depreciation, Amortization, and Exploration) of not more than 3.5:1.0. As of March 31, 2019, the Partnership was in compliance with all financial covenants in the Credit Facility. The aggregate principal balance outstanding was $435.0 million and $410.0 million at March 31, 2019 and December 31, 2018, respectively. The unused portion of the available borrowings under the Credit Facility were $240.0 million and $265.0 million at March 31, 2019 and December 31, 2018, respectively. |
Commitments and Contingencies |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Environmental Matters The Partnership’s business includes activities that are subject to U.S. federal, state, and local environmental regulations with regard to air, land, and water quality and other environmental matters. The Partnership does not consider the potential remediation costs that could result from issues identified in any environmental site assessments to be significant to the consolidated financial statements, and no provision for potential remediation costs has been recorded. Put Option Related to Noble Acquisition By acquiring 100% of the issued and outstanding securities of Samedan Royalty, LLC, now NAMP Holdings, LLC, on November 28, 2017 from Noble Energy US Holdings, LLC, the Partnership acquired a 100% interest in Comin-Temin, LLC, now NAMP GP, LLC ("Holdings"), Comin 1989 Partnership LLLP, now NAMP 1, LP ("Comin"), and Temin 1987 Partnership LLLP, now NAMP 2, LP ("Temin"). Pursuant to certain co-ownership agreements, various co-owners hold undivided beneficial ownership interests in 45.33% and 42.63% of the minerals interests held of record by Holdings and Temin, respectively. Based on the terms of the co-ownership agreements, the co-owners each have an unconditional option to require Comin or Temin, as applicable, to purchase their beneficial ownership interest in the mineral interests held of record by Holdings or Temin, as applicable, at any time within 30 days of receiving such repurchase notice. The purchase price of the beneficial ownership interest shall be based on an evaluation performed by Comin or Temin, as applicable, in good faith. As of March 31, 2019, the Partnership had not received notice from any co-owner to exercise their repurchase option, and as such, no liability was recorded. Litigation From time to time, the Partnership is involved in legal actions and claims arising in the ordinary course of business. The Partnership believes existing claims as of March 31, 2019 will be resolved without material adverse effect on the Partnership’s financial condition or operations. |
Incentive Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Compensation | INCENTIVE COMPENSATION The table below summarizes incentive compensation expense recorded in general and administrative expenses in the consolidated statements of operations for the three months ended March 31, 2019 and 2018:
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Preferred Units |
3 Months Ended |
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Mar. 31, 2019 | |
Equity [Abstract] | |
Redeemable Preferred Units | PREFERRED UNITS Series A Redeemable Preferred Units As of March 31, 2019 and December 31, 2018, there were no Series A redeemable preferred units outstanding. The Series A redeemable preferred units were entitled to an annual distribution of 10% of the outstanding funded capital of the Series A redeemable preferred units, payable on a quarterly basis in arrears. The Series A redeemable preferred units were convertible into common and subordinated units at any time at the option of the Series A redeemable preferred unitholders. The Series A redeemable preferred units had an adjusted conversion price of $14.2683 and an adjusted conversion rate of 30.3431 common units and 39.7427 subordinated units per redeemable preferred unit. The Series A redeemable preferred unitholders had the option to elect to have the Partnership redeem, at face value, all remaining Series A redeemable preferred units, effective as of December 31, 2017, plus any accrued and unpaid distributions. All Series A redeemable preferred units not redeemed by March 31, 2018 automatically converted to common and subordinated units effective as of January 1, 2018 or as soon as practicable thereafter. For the three months ended March 31, 2018, 2,115 Series A redeemable preferred units were redeemed for $2.1 million, including accrued unpaid yield, and 24,248 Series A redeemable preferred units totaling $24.2 million were converted into 735,758 common units and 963,681 subordinated units as a result of the mandatory conversion subsequent to December 31, 2017. Series B Cumulative Convertible Preferred Units On November 28, 2017, the Partnership issued and sold in a private placement 14,711,219 Series B cumulative convertible preferred units representing limited partner interests in the Partnership for a cash purchase price of $20.3926 per Series B cumulative convertible preferred unit, resulting in total proceeds of approximately $300.0 million. The Series B cumulative convertible preferred units are entitled to an annual distribution of 7%, payable on a quarterly basis in arrears. For the eight quarters consisting of the quarter in respect of which the initial distribution is paid and the seven full quarters thereafter, the quarterly distribution may be paid, at the sole option of the Partnership, (i) in-kind in the form of additional Series B cumulative convertible preferred units (the "Series B PIK Units"), (ii) in cash, or (iii) in a combination of Series B PIK Units and cash. Beginning with the ninth quarter, all Series B cumulative convertible preferred unit distributions shall be paid in cash. The number of Series B PIK Units to be issued, if any, shall equal the quotient of the Series B cumulative convertible preferred unit distribution amount (or portion thereof) divided by the Series B cumulative convertible preferred unit purchase price of $20.3926. The Series B cumulative convertible preferred units are convertible into common units of the Partnership on November 29, 2019 and once per quarter thereafter. At such time, the Series B cumulative convertible preferred units may be converted by each holder at its option, in whole or in part, into common units on a one-for-one basis at the purchase price of $20.3926, adjusted to give effect to any accrued but unpaid accumulated distributions on the applicable Series B cumulative convertible preferred units through the most recent declaration date. However, the Partnership shall not be obligated to honor any request for such conversion if such request does not involve an underlying value of common units of at least $10.0 million based on the closing trading price of common units on the trading day immediately preceding the conversion notice date, or such lesser amount to the extent such exercise covers all of a holder's Series B cumulative convertible preferred units. The Series B cumulative convertible preferred units had a carrying value of $298.4 million and $298.4 million, including accrued distributions of $5.3 million and $5.3 million, as of March 31, 2019 and December 31, 2018, respectively. The Series B cumulative convertible preferred units are classified as mezzanine equity on the consolidated balance sheets since certain provisions of redemption are outside the control of the Partnership. |
Earnings Per Unit |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Unit | EARNINGS PER UNIT The Partnership applies the two-class method for purposes of calculating earnings per unit (“EPU”). The holders of the Partnership’s restricted common and subordinated units have all the rights of a unitholder, including non-forfeitable distribution rights. As participating securities, the restricted common and subordinated units are included in the calculation of basic earnings per unit. For the periods presented, the amount of earnings allocated to these participating units was not material. Net income (loss) attributable to the Partnership is allocated to the Partnership’s general partner and the common and subordinated unitholders in proportion to their pro rata ownership after giving effect to distributions, if any, declared during the period. The Partnership’s restricted performance unit awards are contingently issuable units that are considered in the calculation of diluted EPU. The Partnership assesses the number of units that would be issuable, if any, under the terms of the arrangement if the end of the reporting period were the end of the contingency period. At March 31, 2019 and 2018, there were 0.6 million and 0.1 million units, respectively, related to the Partnership’s restricted performance unit awards included in the calculation of diluted EPU. The following table sets forth the computation of basic and diluted earnings per common and subordinated unit:
The following units of potentially dilutive securities were excluded from the computation of diluted weighted average units outstanding because their inclusion would be anti-dilutive:
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Common and Subordinated Units |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common and Subordinated Units | COMMON AND SUBORDINATED UNITS Common and Subordinated Units The common units and subordinated units represent limited partner interests in the Partnership. The partnership agreement restricts unitholders’ voting rights by providing that any units held by a person or group that owns 15% or more of any class of units then outstanding other than the limited partners in Black Stone Minerals Company, L.P. prior to the initial public offering of BSM, their transferees, persons who acquired such units with the prior approval of the board of directors of the Partnership's general partner (the "Board"), holders of Series B cumulative convertible preferred units in connection with any vote, consent or approval of the Series B cumulative convertible preferred units as a separate class, and persons who own 15% or more of any class as a result of any redemption or purchase of any other person's units or similar action by the Partnership or any conversion of the Series B cumulative convertible preferred units at the Partnership's option or in connection with a change of control may not vote on any matter. The holders of common units and subordinated units are entitled to participate in distributions and exercise the rights and privileges provided to limited partners holding common units and subordinated units under the partnership agreement. The partnership agreement generally provides that any distributions will be paid each quarter during the subordination period (as defined in the partnership agreement) in the following manner: • first, to the holders of the Series B cumulative convertible preferred units in an amount equal to 7% per annum, subject to certain adjustments; • second, to the holders of common units, until each common unit has received the applicable minimum quarterly distribution plus any arrearages from prior quarters; and • third, to the holders of subordinated units, until each subordinated unit has received the applicable minimum quarterly distribution. If the distributions to common and subordinated unitholders exceed the applicable minimum quarterly distribution per unit, then such excess amounts will be distributed pro rata on the common and subordinated units as if they were a single class. The priority right of the common unitholders will cease to exist upon full conversion of the subordinated units to common units. The following table provides information about the Partnership's per unit distributions to common and subordinated unitholders:
End of the Subordination Period The subordination period under the partnership agreement will end on the first business day after the Partnership has earned and paid an aggregate amount of at least $1.35 (the annualized minimum quarterly distribution applicable for quarterly periods ending March 31, 2019 and thereafter) multiplied by the total number of outstanding common and subordinated units for a period of four consecutive, non-overlapping quarters ending on or after March 31, 2019, and there are no outstanding arrearages on the common units. When the subordination period ends as a result of the Partnership having met the test described above, all subordinated units will convert into common units on a one-to-one basis, and common units will thereafter no longer be entitled to arrearages. Common Unit Repurchase Program On November 5, 2018, the Board authorized the repurchase of up to $75.0 million in common units. The repurchase program authorizes the Partnership to make repurchases on a discretionary basis as determined by management, subject to market conditions, applicable legal requirements, available liquidity, and other appropriate factors. The Partnership made no repurchases under this program for the three months ended March 31, 2019. The repurchase program is funded from the Partnership's cash on hand or availability on the Credit Facility. Any repurchased units are canceled. At-The-Market Offering Program On May 26, 2017, the Partnership commenced an at-the-market offering program (the “ATM Program”) and in connection therewith entered into an Equity Distribution Agreement with Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and UBS Securities LLC, as Sales Agents (each a “Sales Agent” and collectively the “Sales Agents”). Pursuant to the terms of the ATM Program, the Partnership may sell, from time to time through the Sales Agents, the Partnership’s common units representing limited partner interests having an aggregate offering amount of up to $100,000,000. Sales of common units, if any, may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”), including sales made directly on the New York Stock Exchange or sales made to or through a market maker other than on an exchange. Under the terms of the ATM Program, the Partnership may also sell common units to one or more of the Sales Agents as principal for its own account at a price to be agreed upon at the time of sale. Any sale of common units to a Sales Agent as principal would be pursuant to the terms of a separate agreement between the Partnership and such Sales Agent. The Partnership intends to use the net proceeds from any sales pursuant to the ATM Program, after deducting the Sales Agents’ commissions and the Partnership’s offering expenses, for general partnership purposes, which may include, among other things, repayment of indebtedness outstanding under the Partnership’s Credit Facility. Common units sold pursuant to the Equity Distribution Agreement are offered and sold pursuant to the Partnership’s existing effective shelf-registration statement on Form S-3 (File No. 333-215857), which was declared effective by the SEC on February 8, 2017. The Equity Distribution Agreement contains customary representations, warranties and agreements, indemnification obligations, including for liabilities under the Securities Act, other obligations of the parties and termination provisions. For the three months ended March 31, 2019, the Partnership sold no common units under the ATM Program. For the three months ended March 31, 2018, the Partnership sold 8,204 common units under the ATM program for net proceeds of $0.1 million. As of March 31, 2019, the Partnership has raised net proceeds of $73.0 million under the ATM Program. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 25, 2019, the Board approved a distribution for the three months ended March 31, 2019 of $0.37 per common unit and $0.37 per subordinated unit. Distributions will be payable on May 23, 2019 to unitholders of record at the close of business on May 16, 2019. The Board also confirmed and approved that, upon payment of the distribution for the three months ended March 31, 2019, the tests required for conversion of all of the outstanding subordinated units into common units on a one-for-one basis will be met. Accordingly, on the first business day following the payment of the distribution described, the Partnership's 96,328,836 subordinated units will convert into 96,328,836 common units. |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Partnership have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all disclosures required for financial statements prepared in conformity with GAAP. Accordingly, the accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the Partnership’s consolidated financial statements included in the Partnership’s 2018 Annual Report on Form 10-K. The consolidated financial statements include the consolidated results of the Partnership. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year. In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for the fair presentation of the financial results for all periods presented have been reflected. All intercompany balances and transactions have been eliminated. The Partnership evaluates the significant terms of its investments to determine the method of accounting to be applied to each respective investment. Investments in which the Partnership has less than a 20% ownership interest and does not have control or exercise significant influence are accounted for using fair value or cost minus impairment if fair value is not readily determinable. Investments in which the Partnership exercises control are consolidated, and the noncontrolling interests of such investments, which are not attributable directly or indirectly to the Partnership, are presented as a separate component of net income and equity in the accompanying consolidated financial statements. The unaudited interim consolidated financial statements include undivided interests in oil and natural gas property rights. The Partnership accounts for its share of oil and natural gas property rights by reporting its proportionate share of assets, liabilities, revenues, costs, and cash flows within the relevant lines on the accompanying unaudited interim consolidated balance sheets, statements of operations, and statements of cash flows. |
Segment Reporting | Segment Reporting The Partnership operates in a single operating and reportable segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The Partnership’s chief executive officer has been determined to be the chief operating decision maker and allocates resources and assesses performance based upon financial information at the consolidated level. |
New Accounting Pronouncements | Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), that supersedes Accounting Standards Codification ("ASC") 840, Leases by requiring lessees to recognize lease assets and lease liabilities classified as operating leases on the balance sheet. See Note 3 - Impact of ASC 842 Adoption for further details related to the Partnership's adoption of this standard. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which will remove, modify, and add certain required disclosures on fair value measurements. As amended, Topic 820 will no longer require the disclosure of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy of timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. In addition, certain modifications to current disclosure requirements will be made, including clarifying that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Certain disclosure requirements will also be added, including the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in place of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The new standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The Partnership does not plan to early adopt and is evaluating the impact that the new accounting guidance will have on its consolidated financial statements and related disclosures. |
Earnings Per Unit | The Partnership applies the two-class method for purposes of calculating earnings per unit (“EPU”). The holders of the Partnership’s restricted common and subordinated units have all the rights of a unitholder, including non-forfeitable distribution rights. As participating securities, the restricted common and subordinated units are included in the calculation of basic earnings per unit. For the periods presented, the amount of earnings allocated to these participating units was not material. Net income (loss) attributable to the Partnership is allocated to the Partnership’s general partner and the common and subordinated unitholders in proportion to their pro rata ownership after giving effect to distributions, if any, declared during the period. |
Summary of Significant Accounting Policies - (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | The following table presents information about the Partnership's accounts receivable:
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Oil and Natural Gas Properties Acquisitions (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values of the Properties Acquired | The following table summarizes these acquisitions which were considered business combinations:
The following table summarizes these acquisitions which were considered business combinations:
|
Commodity Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value and Classification of Derivative Instruments | The tables below summarize the fair values and classifications of the Partnership’s derivative instruments, as well as the gross recognized derivative assets, liabilities, and amounts offset in the consolidated balance sheets as of each date:
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Changes in Fair Value of Company's Commodity Derivative Instruments | Changes in the fair values of the Partnership’s derivative instruments (both assets and liabilities) are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the periods presented:
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Oil and Natural Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Open Derivative Contracts | The Partnership had the following open derivative contracts for oil as of March 31, 2019:
The Partnership had the following open derivative contracts for natural gas as of March 31, 2019:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about the Partnership’s assets and liabilities measured at fair value on a recurring basis:
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Incentive Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Incentive Compensation Expense | The table below summarizes incentive compensation expense recorded in general and administrative expenses in the consolidated statements of operations for the three months ended March 31, 2019 and 2018:
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Earnings Per Unit (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings per Common and Subordinated Unit | The following table sets forth the computation of basic and diluted earnings per common and subordinated unit:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following units of potentially dilutive securities were excluded from the computation of diluted weighted average units outstanding because their inclusion would be anti-dilutive:
|
Common and Subordinated Units (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Made to Limited Partner, by Distribution | The following table provides information about the Partnership's per unit distributions to common and subordinated unitholders:
|
Business and Basis of Presentation - Additional Information (Details) |
Mar. 31, 2019
state
|
---|---|
Limited Partners Capital Account [Line Items] | |
Cost basis, ownership percentage | 20.00% |
U.S. | |
Limited Partners Capital Account [Line Items] | |
Number of states major onshore oil and natural gas basins located | 41 |
Summary of Significant Accounting Policies Accounts Receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 103,327 | $ 113,148 | |
Revenues from contracts with customers | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | 107,804 | $ 97,816 | |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | $ 5,344 | $ 5,511 |
Impact of ASC 842 Adoption - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Assets, Total | Lease Concentration Risk | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Concentration risk, percentage | 1.00% |
Oil and Natural Gas Properties Acquisitions - Schedule of Fair Values of the Properties Acquired (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2019 |
Feb. 28, 2019 |
Nov. 30, 2018 |
Sep. 30, 2018 |
Aug. 31, 2018 |
Jul. 31, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Business Acquisition [Line Items] | ||||||||||
Acquisition-related costs | $ 100 | $ 200 | ||||||||
Permian Basin | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proved | $ 24 | $ 173 | $ 1,166 | $ 1,176 | $ 5,000 | $ 4,349 | $ 883 | $ 984 | 197 | 13,558 |
Unproved | 0 | 8,437 | 0 | 0 | 34,673 | 7,944 | 13,688 | 21,452 | 8,437 | 77,757 |
Net Working Capital | 0 | 1 | 0 | 0 | 74 | 215 | 8 | 133 | 1 | 430 |
Total Fair Value | 24 | 8,611 | 1,166 | 1,176 | 39,747 | 12,508 | 14,579 | 22,569 | 8,635 | 91,745 |
Consideration Paid | $ 24 | $ 8,611 | 1,166 | 1,176 | 26,461 | 3,764 | 14,579 | 22,569 | $ 8,635 | 69,715 |
Fair Value of Common Units Issued | $ 0 | $ 0 | $ 13,286 | $ 8,744 | $ 0 | $ 0 | $ 22,030 |
Oil and Natural Gas Properties Acquisitions - Additional Information (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Nov. 21, 2017
well
|
Feb. 21, 2017
well
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Business combination, consideration transferred | $ 20,900 | $ 149,900 | |||
Acquisition-related costs | 100 | 200 | |||
Issuance of common units, net of offering costs | (43) | $ 138 | |||
East Texas | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire oil, mineral, and royalty interests | 12,300 | 58,200 | |||
2019 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire oil, mineral, and royalty interests | 11,400 | ||||
Issuance of common units, net of offering costs | 900 | ||||
2018 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire oil, mineral, and royalty interests | 57,600 | ||||
Issuance of common units, net of offering costs | 600 | ||||
Payments to noncontrolling interests | 1,700 | ||||
Angelina County, Texas | Farmout Agreement | |||||
Business Acquisition [Line Items] | |||||
Business combination, ownership interest, acreage, percent | 50.00% | ||||
Exploratory wells, expected to be drilled | well | 20 | ||||
Exploratory wells, additional wells to be drilled | well | 20 | ||||
Asset acquisition, number of phases | 3 | ||||
Canaan Resource Partners | Angelina County, Texas | Farmout Agreement | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, term of phase | 2 years | ||||
Asset acquisition, funding requirements, drilling and completion costs, percent | 80.00% | ||||
Asset acquisition, ownership interest in wells, percent | 80.00% | ||||
Asset acquisition, ownership interest, gross, percent | 40.00% | ||||
Asset acquisition, third phase, ownership interest in additional wells, percent | 40.00% | ||||
Asset acquisition, third phase, ownership interest in additional wells, gross, percent | 20.00% | ||||
Asset acquisition, third phase, funding requirements, drilling and completion costs, percent | 40.00% | ||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 86,400 | ||||
Pivotal | San Augustine County, Texas | Farmout Agreement | |||||
Business Acquisition [Line Items] | |||||
Exploratory wells, expected to be drilled | well | 80 | ||||
Asset acquisition, ownership interest, gross, percent | 10.00% | ||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | 86,800 | ||||
Asset acquisition, ownership interest, in wells operated by others, percent | 100.00% | ||||
Other long-term liabilities | Canaan Resource Partners | Angelina County, Texas | Farmout Agreement | |||||
Business Acquisition [Line Items] | |||||
Business combination, pro forma information, working interests in wells drilled and completed, actual | 8,900 | 11,600 | |||
Other long-term liabilities | Pivotal | San Augustine County, Texas | Farmout Agreement | |||||
Business Acquisition [Line Items] | |||||
Business combination, pro forma information, working interests in wells drilled and completed, actual | $ 63,100 | $ 41,200 | |||
Minimum | Pivotal | San Augustine County, Texas | Farmout Agreement | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, ownership interest, in wells operated by others, gross, percent | 12.50% | ||||
Maximum | Pivotal | San Augustine County, Texas | Farmout Agreement | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, ownership interest, in wells operated by others, gross, percent | 25.00% |
Commodity Derivative Financial Instruments - Additional Information (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
counterparty
|
Dec. 31, 2018
USD ($)
|
---|---|---|
Derivative [Line Items] | ||
Number of counterparties | counterparty | 9 | |
Gross fair value amount | $ | $ 16,659 | $ 50,264 |
Commodity Derivative Financial Instruments - Summary of Fair Value and Classification of Derivative Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivatives Fair Value [Line Items] | ||
Gross fair value amount | $ 16,659 | $ 50,264 |
Effect of Counterparty Netting, Assets | (9,557) | (2,226) |
Total net carrying value on Balance Sheet, assets | 7,102 | 48,038 |
Gross Fair Value, Liabilities | 11,547 | 2,226 |
Effect of Counterparty Netting, Liabilities | (9,557) | (2,226) |
Total net carrying value on Balance Sheet, liabilities | 1,990 | 0 |
Commodity derivative assets | ||
Derivatives Fair Value [Line Items] | ||
Gross fair value amount | 11,221 | 38,746 |
Effect of Counterparty Netting, Assets | (7,209) | (776) |
Total net carrying value on Balance Sheet, assets | 4,012 | 37,970 |
Deferred charges and other long-term assets | ||
Derivatives Fair Value [Line Items] | ||
Gross fair value amount | 5,438 | 11,518 |
Effect of Counterparty Netting, Assets | (2,348) | (1,450) |
Total net carrying value on Balance Sheet, assets | 3,090 | 10,068 |
Commodity derivative liabilities | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value, Liabilities | 9,176 | 776 |
Effect of Counterparty Netting, Liabilities | (7,209) | (776) |
Total net carrying value on Balance Sheet, liabilities | 1,967 | 0 |
Commodity derivative liabilities | ||
Derivatives Fair Value [Line Items] | ||
Gross Fair Value, Liabilities | 2,371 | 1,450 |
Effect of Counterparty Netting, Liabilities | (2,348) | (1,450) |
Total net carrying value on Balance Sheet, liabilities | $ 23 | $ 0 |
Commodity Derivative Financial Instruments - Changes in Fair Value of Company's Commodity Derivative Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Derivatives not designated as hedging instruments | ||
Gain (loss) on commodity derivative instruments | $ (41,183) | $ (16,333) |
Net cash paid (received) on settlements of derivative instruments | (1,743) | 4,375 |
Not Designated as Hedging Instrument | ||
Derivatives not designated as hedging instruments | ||
Beginning fair value of commodity derivative instruments | 48,038 | (5,028) |
Net change in fair value of commodity derivative instruments | (42,926) | (11,958) |
Ending fair value of commodity derivative instruments | 5,112 | (16,986) |
Not Designated as Hedging Instrument | Oil | ||
Derivatives not designated as hedging instruments | ||
Gain (loss) on commodity derivative instruments | (39,261) | (14,476) |
Net cash paid (received) on settlements of derivative instruments | (4,555) | 5,148 |
Not Designated as Hedging Instrument | Natural gas and natural gas liquids sales | ||
Derivatives not designated as hedging instruments | ||
Gain (loss) on commodity derivative instruments | (1,922) | (1,857) |
Net cash paid (received) on settlements of derivative instruments | $ 2,812 | $ (773) |
Commodity Derivative Financial Instruments - Summary of Open Derivative Contracts for Oil and Natural Gas (Details) - Not Designated as Hedging Instrument bbl in Thousands, MMBTU in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
MMBTU
$ / MMBTU
$ / bbl
bbl
| |
Swaps Contract | First Quarter 2019 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 255 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 58.54 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 52.82 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 65.58 |
Swaps Contract | Second Quarter 2019 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 855 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 58.72 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 52.82 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 65.58 |
Swaps Contract | Second Quarter 2019 | Natural gas and natural gas liquids sales | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in MMBtu) | MMBTU | 14,520 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | $ / MMBTU | 2.96 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | $ / MMBTU | 2.81 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | $ / MMBTU | 3.20 |
Swaps Contract | Third Quarter 2019 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 855 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 58.37 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 52.82 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 63.75 |
Swaps Contract | Third Quarter 2019 | Natural gas and natural gas liquids sales | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in MMBtu) | MMBTU | 14,640 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | $ / MMBTU | 2.96 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | $ / MMBTU | 2.81 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | $ / MMBTU | 3.20 |
Swaps Contract | Fourth Quarter 2019 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 855 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 58.37 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 52.82 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 63.75 |
Swaps Contract | Fourth Quarter 2019 | Natural gas and natural gas liquids sales | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in MMBtu) | MMBTU | 14,640 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | $ / MMBTU | 2.96 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | $ / MMBTU | 2.81 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | $ / MMBTU | 3.20 |
Swaps Contract | First Quarter 2020 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 270 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 57.87 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 57.46 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 58.65 |
Swaps Contract | First Quarter 2020 | Natural gas and natural gas liquids sales | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in MMBtu) | MMBTU | 6,370 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | $ / MMBTU | 2.73 |
Swaps Contract | Second Quarter 2020 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 270 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 57.87 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 57.46 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 58.65 |
Swaps Contract | Second Quarter 2020 | Natural gas and natural gas liquids sales | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in MMBtu) | MMBTU | 6,370 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | $ / MMBTU | 2.73 |
Swaps Contract | Third Quarter 2020 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 270 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 57.87 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 57.46 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 58.65 |
Swaps Contract | Third Quarter 2020 | Natural gas and natural gas liquids sales | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in MMBtu) | MMBTU | 6,440 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | $ / MMBTU | 2.73 |
Swaps Contract | Fourth Quarter 2020 | Oil | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 270 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | 57.87 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 57.46 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 58.65 |
Swaps Contract | Fourth Quarter 2020 | Natural gas and natural gas liquids sales | Swap | |
Derivative [Line Items] | |
Derivative Contract, Volume (in MMBtu) | MMBTU | 6,440 |
Derivative Contract, Weighted Average Price (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | $ / MMBTU | 2.72 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | $ / MMBTU | 2.73 |
Collar Contract | First Quarter 2019 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 20 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 65.00 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 74.00 |
Collar Contract | Second Quarter 2019 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 60 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 65.00 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 74.00 |
Collar Contract | Third Quarter 2019 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 60 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 65.00 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 74.00 |
Collar Contract | Fourth Quarter 2019 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 60 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 65.00 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 74.00 |
Collar Contract | First Quarter 2020 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 210 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 56.43 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 67.14 |
Collar Contract | Second Quarter 2020 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 210 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 56.43 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 67.14 |
Collar Contract | Third Quarter 2020 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 210 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 56.43 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 67.14 |
Collar Contract | Fourth Quarter 2020 | Oil | Collar | |
Derivative [Line Items] | |
Derivative Contract, Volume (in Bbl) | bbl | 210 |
Derivative Contract, Price Range Low (in USD per Bbl or MMBtu) | 56.43 |
Derivative Contract, Price Range High (in USD per Bbl or MMBtu) | 67.14 |
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Gross fair value amount | $ 16,659 | $ 50,264 |
Effect of Counterparty Netting, Assets | (9,557) | (2,226) |
Total net carrying value on Balance Sheet, assets | 7,102 | 48,038 |
Gross Fair Value, Liabilities | 11,547 | 2,226 |
Effect of Counterparty Netting, Liabilities | (9,557) | (2,226) |
Total net carrying value on Balance Sheet, liabilities | 1,990 | 0 |
Commodity Derivative Instruments | Fair Value Measurements, Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Effect of Counterparty Netting, Assets | (9,557) | (2,226) |
Total net carrying value on Balance Sheet, assets | 7,102 | 48,038 |
Effect of Counterparty Netting, Liabilities | (9,557) | (2,226) |
Total net carrying value on Balance Sheet, liabilities | 1,990 | 0 |
Commodity Derivative Instruments | Fair Value Measurements, Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Gross fair value amount | 0 | 0 |
Gross Fair Value, Liabilities | 0 | 0 |
Commodity Derivative Instruments | Fair Value Measurements, Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Gross fair value amount | 16,659 | 50,264 |
Gross Fair Value, Liabilities | 11,547 | 2,226 |
Commodity Derivative Instruments | Fair Value Measurements, Recurring Basis | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Gross fair value amount | 0 | 0 |
Gross Fair Value, Liabilities | $ 0 | $ 0 |
Credit Facility (Details) |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Oct. 31, 2018
USD ($)
|
Oct. 31, 2016 |
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
May 04, 2018
USD ($)
|
Apr. 25, 2017
USD ($)
|
|
Line Of Credit Facility [Line Items] | ||||||
Credit facility | $ 435,000,000 | $ 410,000,000 | ||||
Senior Line of Credit | Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
Borrowing base | $ 675,000,000 | $ 600,000,000 | $ 550,000,000 | |||
Interest payable, term | 90 days | |||||
Weighted average interest rate (percent) | 4.75% | 4.76% | ||||
Borrowing base threshold (percent) | 50.00% | |||||
Credit facility | $ 435,000,000 | $ 410,000,000 | ||||
Unused portion of current borrowing base | $ 240,000,000 | $ 265,000,000 | ||||
Senior Line of Credit | Revolving Credit Facility | Federal Funds [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 0.50% | |||||
Senior Line of Credit | Revolving Credit Facility | LIBOR Plus Margin Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 1.00% | |||||
Senior Line of Credit | Revolving Credit Facility | Borrowing Base Utilization Percentage Less Than 50% | ||||||
Line Of Credit Facility [Line Items] | ||||||
Commitment fee payable rate (percent) | 0.375% | |||||
Senior Line of Credit | Revolving Credit Facility | Borrowing Base Utilization Percentage Equal to or Greater Than 50% | ||||||
Line Of Credit Facility [Line Items] | ||||||
Commitment fee payable rate (percent) | 0.50% | |||||
Senior Line of Credit | Revolving Credit Facility | Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest payable, term | 90 days | |||||
Current ratio | 1 | |||||
Senior Line of Credit | Revolving Credit Facility | Minimum | LIBOR Plus Margin Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 1.75% | 2.00% | ||||
Senior Line of Credit | Revolving Credit Facility | Minimum | Prime Rate Plus Margin Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 0.75% | 1.00% | ||||
Senior Line of Credit | Revolving Credit Facility | Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Ratio of total debt to EBITDAX | 3.5 | |||||
Senior Line of Credit | Revolving Credit Facility | Maximum | LIBOR Plus Margin Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 2.75% | 3.00% | ||||
Senior Line of Credit | Revolving Credit Facility | Maximum | Prime Rate Plus Margin Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest rate (percent) | 1.75% | 2.00% |
Commitments and Contingencies - Additional Information (Details) |
Mar. 31, 2019 |
Nov. 28, 2017 |
---|---|---|
Samedan | ||
Business Acquisition [Line Items] | ||
Business acquisition, percentage of voting interests acquired | 100.00% | |
Comin | ||
Business Acquisition [Line Items] | ||
Business acquisition, percentage of voting interests acquired | 100.00% | |
Noncontrolling interest, ownership percentage by noncontrolling owners | 45.33% | |
Temin | ||
Business Acquisition [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 42.63% |
Incentive Compensation - Summary of Incentive Compensation Expense (Details) - General and administrative expenses - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Cash—short and long-term incentive plans | $ 1,772 | $ 1,634 |
Total incentive compensation expense | 10,996 | 7,860 |
Restricted common and subordinated units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity-based compensation | 3,019 | 3,405 |
Restricted Performance Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity-based compensation | 5,620 | 2,242 |
Board of Directors | Common Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total incentive compensation expense | $ 585 | $ 579 |
Preferred Units (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Nov. 28, 2017
USD ($)
$ / shares
shares
|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
Mar. 31, 2018
shares
|
Dec. 31, 2018
USD ($)
shares
|
|
Preferred Units | ||||
Class of Stock [Line Items] | ||||
Partners' equity, preferred units, outstanding (in shares) | 0 | |||
Preferred units distribution rate | 10.00% | |||
Adjusted conversion price (in us dollars per share) | $ / shares | $ 14.2683 | |||
Number of preferred units redeemed | 2,115 | |||
Preferred stock, redemption amount | $ | $ 2,100 | |||
Number of preferred units converted (in shares) | 24,248 | |||
Conversion of preferred units to common units | $ | $ 24,200 | |||
Common Units | ||||
Class of Stock [Line Items] | ||||
Adjusted conversion rate | 30.3431 | |||
Conversion of preferred units (in shares) | 735,758 | |||
Number of shares issued (in shares) | 0 | 8,204 | ||
Subordinated Units | ||||
Class of Stock [Line Items] | ||||
Adjusted conversion rate | 39.7427 | |||
Conversion of preferred units (in shares) | 963,681 | |||
Series B Cumulative Convertible Preferred Units | ||||
Class of Stock [Line Items] | ||||
Partners' equity, preferred units, outstanding (in shares) | 14,711,000 | 14,711,000 | ||
Preferred units, outstanding value | $ | $ 298,361 | $ 298,361 | ||
Accrued distributions | $ | $ 5,300 | $ 5,300 | ||
Preferred units distribution rate | 7.00% | |||
Shares, price per share (in dollars per share) | $ / shares | $ 20.3926 | |||
Proceeds from issuance of convertible preferred stock | $ | $ 300,000 | |||
Minimum underlying value for conversion trigger | $ | $ 10,000 | |||
Series B Cumulative Convertible Preferred Units | Noble Acquisition | ||||
Class of Stock [Line Items] | ||||
Number of shares issued (in shares) | 14,711,219 |
Earnings Per Unit - Additional Information (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share [Abstract] | ||
Number of performance units award included in calculation of diluted EPU | 0.6 | 0.1 |
Earnings Per Unit - Computation of Basic and Diluted Earnings per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share Basic [Line Items] | ||
Net income (loss) | $ 9,017 | $ 41,957 |
Net (income) loss attributable to noncontrolling interests | 0 | (27) |
Distributions on Series A redeemable preferred units | 0 | (25) |
Distributions on Series B cumulative convertible preferred units | (5,250) | (5,250) |
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON AND SUBORDINATED UNITS | 3,767 | 36,655 |
ALLOCATION OF NET INCOME (LOSS): | ||
General partner interest | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON AND SUBORDINATED UNITS | $ 3,767 | $ 36,655 |
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON AND SUBORDINATED UNIT: | ||
Effect of dilutive securities (in shares) | 600 | 100 |
Common Units | ||
ALLOCATION OF NET INCOME (LOSS): | ||
Allocation of net income (loss) | $ 1,905 | $ 24,329 |
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON AND SUBORDINATED UNIT: | ||
Weighted average units outstanding (basic) (in shares) | 109,420 | 103,774 |
Weighted average units outstanding (diluted) (in shares) | 110,035 | 103,838 |
Per unit (basic) (in dollars per share) | $ 0.02 | $ 0.23 |
Per unit (diluted) (in dollars per share) | $ 0.02 | $ 0.23 |
Subordinated Units | ||
ALLOCATION OF NET INCOME (LOSS): | ||
Allocation of net income (loss) | $ 1,862 | $ 12,326 |
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON AND SUBORDINATED UNIT: | ||
Weighted average units outstanding (basic) (in shares) | 96,329 | 95,395 |
Effect of dilutive securities (in shares) | 0 | 0 |
Weighted average units outstanding (diluted) (in shares) | 96,329 | 95,395 |
Per unit (basic) (in dollars per share) | $ 0.02 | $ 0.13 |
Per unit (diluted) (in dollars per share) | $ 0.02 | $ 0.13 |
Earnings Per Unit - Potentially Dilutive Securities Excluded from the Computation of Diluted Weighted Average Shares Outstanding (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Common Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Units issuable upon conversion of preferred units excluded from the calculation of diluted EPU | 14,969 | 15,244 |
Subordinated Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Units issuable upon conversion of preferred units excluded from the calculation of diluted EPU | 0 | 247 |
Series A redeemable preferred units on an as-converted basis | Common Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Units issuable upon conversion of preferred units excluded from the calculation of diluted EPU | 0 | 181 |
Series A redeemable preferred units on an as-converted basis | Subordinated Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Units issuable upon conversion of preferred units excluded from the calculation of diluted EPU | 0 | 247 |
Series B cumulative convertible preferred units on an as-converted basis | Common Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Units issuable upon conversion of preferred units excluded from the calculation of diluted EPU | 14,969 | 15,063 |
Common and Subordinated Units (Details) - USD ($) |
3 Months Ended | 22 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2019 |
Nov. 05, 2018 |
May 26, 2017 |
|
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 75,000,000 | ||||
Proceeds from issuance of common units, net of offering costs | $ (43,000) | $ 138,000 | |||
Series B Cumulative Convertible Preferred Units | |||||
Class of Stock [Line Items] | |||||
Preferred units minimum voting rights rate (percent) | 15.00% | 15.00% | |||
Preferred units distribution rate | 7.00% | ||||
Common Units | |||||
Class of Stock [Line Items] | |||||
Equity distribution agreement, maximum value | $ 100,000,000 | ||||
Number of shares issued (in shares) | 0 | 8,204 | |||
Proceeds from issuance of common units, net of offering costs | $ 100,000 | $ 73,000,000 |
Common and Subordinated Units - Per share distributions to common and subordinated unitholders (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Common Units | ||
Class of Stock [Line Items] | ||
Per unit (in usd per share) | $ 0.37 | $ 0.31 |
Subordinated Units | ||
Class of Stock [Line Items] | ||
Per unit (in usd per share) | $ 0.37 | $ 0.21 |
Subsequent Events (Details) - USD ($) |
May 06, 2019 |
Apr. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Oct. 31, 2018 |
May 04, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Apr. 25, 2017 |
---|---|---|---|---|---|---|---|---|---|
Common Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Partners' capital account, units | 109,377,000 | 108,363,000 | 104,926,000 | 103,456,000 | |||||
Subordinated Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Partners' capital account, units | 96,329,000 | 96,329,000 | 96,329,000 | 95,388,000 | |||||
Subsequent Event | Common Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Quarterly cash distribution declared (in usd per unit) | $ 0.37 | ||||||||
Partners' capital account, units | 96,328,836 | ||||||||
Subsequent Event | Subordinated Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Quarterly cash distribution declared (in usd per unit) | $ 0.37 | ||||||||
Senior Line of Credit | Revolving Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Borrowing base | $ 675,000,000 | $ 600,000,000 | $ 550,000,000 | ||||||
Subordinated Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Entity Partnership Units Outstanding (in shares) | 96,328,836 |
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