false 0001737204 --12-31 Accelerated Filer FY false 376000 376000 0 0 0 0 0 0 0 0 0 0 0 0001737204 2019-01-01 2019-12-31 xbrli:shares 0001737204 2020-01-31 iso4217:USD 0001737204 2019-06-28 0001737204 2019-12-31 0001737204 2018-12-31 iso4217:USD xbrli:shares 0001737204 us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 us-gaap:OilAndGasMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember 2017-03-01 2017-12-31 0001737204 us-gaap:OilAndGasMember 2017-01-01 2017-02-28 0001737204 2018-01-01 2018-12-31 0001737204 2017-03-01 2017-12-31 0001737204 2017-01-01 2017-02-28 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2017-03-01 2017-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2017-01-01 2017-02-28 0001737204 us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-12-31 0001737204 us-gaap:ProductAndServiceOtherMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember 2017-03-01 2017-12-31 0001737204 us-gaap:ProductAndServiceOtherMember 2017-01-01 2017-02-28 0001737204 us-gaap:CommonStockMember 2016-12-31 0001737204 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001737204 us-gaap:RetainedEarningsMember 2016-12-31 0001737204 us-gaap:ParentMember 2016-12-31 0001737204 2016-12-31 0001737204 us-gaap:CommonStockMember 2017-01-01 2017-02-28 0001737204 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-02-28 0001737204 us-gaap:RetainedEarningsMember 2017-01-01 2017-02-28 0001737204 us-gaap:ParentMember 2017-01-01 2017-02-28 0001737204 us-gaap:CommonStockMember 2017-02-28 0001737204 us-gaap:AdditionalPaidInCapitalMember 2017-02-28 0001737204 us-gaap:RetainedEarningsMember 2017-02-28 0001737204 us-gaap:ParentMember 2017-02-28 0001737204 2017-02-28 0001737204 us-gaap:CommonStockMember 2017-03-01 2017-12-31 0001737204 us-gaap:AdditionalPaidInCapitalMember 2017-03-01 2017-12-31 0001737204 us-gaap:RetainedEarningsMember 2017-03-01 2017-12-31 0001737204 us-gaap:ParentMember 2017-03-01 2017-12-31 0001737204 us-gaap:CommonStockMember 2017-12-31 0001737204 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001737204 us-gaap:RetainedEarningsMember 2017-12-31 0001737204 us-gaap:ParentMember 2017-12-31 0001737204 2017-12-31 0001737204 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001737204 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0001737204 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0001737204 us-gaap:ParentMember 2018-01-01 2018-12-31 0001737204 us-gaap:CommonStockMember 2018-12-31 0001737204 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001737204 us-gaap:RetainedEarningsMember 2018-12-31 0001737204 us-gaap:ParentMember 2018-12-31 0001737204 us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001737204 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-12-31 0001737204 us-gaap:RetainedEarningsMember 2019-01-01 2019-12-31 0001737204 us-gaap:ParentMember 2019-01-01 2019-12-31 0001737204 us-gaap:CommonStockMember 2019-12-31 0001737204 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001737204 us-gaap:RetainedEarningsMember 2019-12-31 0001737204 us-gaap:ParentMember 2019-12-31 0001737204 us-gaap:AccountingStandardsUpdate201409Member 2019-01-01 2019-12-31 0001737204 srt:SubsidiariesMember 2019-01-01 2019-12-31 xbrli:pure 0001737204 rvra:RoanResourcesLLCMember 2017-12-31 0001737204 rvra:LINNEnergyIncMember 2018-08-05 2018-08-07 0001737204 2018-08-05 2018-08-07 0001737204 rvra:LINNEnergyIncMember 2018-09-24 2018-09-24 0001737204 rvra:LINNEnergyIncMember us-gaap:RestrictedStockUnitsRSUMember 2018-09-24 2018-09-24 0001737204 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001737204 rvra:ProvedPropertiesMember 2019-01-01 2019-12-31 0001737204 rvra:ProvedPropertiesMember 2017-03-01 2017-12-31 0001737204 rvra:ProvedPropertiesMember 2017-02-27 2017-02-28 0001737204 rvra:ProvedPropertiesMember 2018-01-01 2018-12-31 0001737204 rvra:UnprovedPropertiesMember 2019-01-01 2019-12-31 0001737204 rvra:UnprovedPropertiesMember 2018-01-01 2018-12-31 0001737204 rvra:UnprovedPropertiesMember 2017-03-01 2017-12-31 0001737204 rvra:UnprovedPropertiesMember 2017-01-01 2017-02-28 0001737204 srt:MinimumMember rvra:VehiclesEquipmentAndOtherFixedAssetsMember 2019-01-01 2019-12-31 0001737204 rvra:VehiclesEquipmentAndOtherFixedAssetsMember srt:MaximumMember 2019-01-01 2019-12-31 0001737204 srt:MinimumMember us-gaap:BuildingMember 2019-01-01 2019-12-31 0001737204 us-gaap:BuildingMember srt:MaximumMember 2019-01-01 2019-12-31 0001737204 srt:MinimumMember rvra:PlantAndPipelinesMember 2019-01-01 2019-12-31 0001737204 rvra:PlantAndPipelinesMember srt:MaximumMember 2019-01-01 2019-12-31 0001737204 us-gaap:OtherNoncurrentAssetsMember 2019-12-31 0001737204 us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0001737204 us-gaap:InterestExpenseMember 2019-01-01 2019-12-31 0001737204 us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001737204 us-gaap:InterestExpenseMember 2017-03-01 2017-12-31 0001737204 us-gaap:InterestExpenseMember 2017-01-01 2017-02-28 0001737204 us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-12-31 0001737204 us-gaap:OtherNonoperatingIncomeExpenseMember 2017-03-01 2017-12-31 0001737204 us-gaap:NaturalGasProductionMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001737204 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0001737204 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0001737204 rvra:HugotonBasinMember us-gaap:NaturalGasProductionMember 2019-01-01 2019-12-31 0001737204 rvra:MidContinentMember us-gaap:NaturalGasProductionMember 2019-01-01 2019-12-31 0001737204 rvra:EastTexasMember us-gaap:NaturalGasProductionMember 2019-01-01 2019-12-31 0001737204 rvra:MichiganIllinoisMember us-gaap:NaturalGasProductionMember 2019-01-01 2019-12-31 0001737204 rvra:NorthLouisianaMember us-gaap:NaturalGasProductionMember 2019-01-01 2019-12-31 0001737204 rvra:UintaBasinMember us-gaap:NaturalGasProductionMember 2019-01-01 2019-12-31 0001737204 us-gaap:NaturalGasProductionMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinMember us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 rvra:MidContinentMember us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 rvra:EastTexasMember us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 rvra:MichiganIllinoisMember us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 rvra:NorthLouisianaMember us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 rvra:UintaBasinMember us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 rvra:PermianBasinMember us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 us-gaap:OilAndCondensateMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinMember rvra:NaturalGasLiquidsMember 2019-01-01 2019-12-31 0001737204 rvra:MidContinentMember rvra:NaturalGasLiquidsMember 2019-01-01 2019-12-31 0001737204 rvra:EastTexasMember rvra:NaturalGasLiquidsMember 2019-01-01 2019-12-31 0001737204 rvra:MichiganIllinoisMember rvra:NaturalGasLiquidsMember 2019-01-01 2019-12-31 0001737204 rvra:NorthLouisianaMember rvra:NaturalGasLiquidsMember 2019-01-01 2019-12-31 0001737204 rvra:UintaBasinMember rvra:NaturalGasLiquidsMember 2019-01-01 2019-12-31 0001737204 rvra:NaturalGasLiquidsMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinMember us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 rvra:MidContinentMember us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 rvra:EastTexasMember us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 rvra:MichiganIllinoisMember us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 rvra:NorthLouisianaMember us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 rvra:UintaBasinMember us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 rvra:PermianBasinMember us-gaap:OilAndGasMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-12-31 0001737204 rvra:MidContinentMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-12-31 0001737204 rvra:EastTexasMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-12-31 0001737204 rvra:NorthLouisianaMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-12-31 0001737204 rvra:BlueMountainMember us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-12-31 0001737204 rvra:MidContinentMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-12-31 0001737204 rvra:EastTexasMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-12-31 0001737204 rvra:MichiganIllinoisMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-12-31 0001737204 rvra:NorthLouisianaMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-12-31 0001737204 rvra:UintaBasinMember us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinMember 2019-01-01 2019-12-31 0001737204 rvra:MidContinentMember 2019-01-01 2019-12-31 0001737204 rvra:EastTexasMember 2019-01-01 2019-12-31 0001737204 rvra:MichiganIllinoisMember 2019-01-01 2019-12-31 0001737204 rvra:NorthLouisianaMember 2019-01-01 2019-12-31 0001737204 rvra:UintaBasinMember 2019-01-01 2019-12-31 0001737204 rvra:PermianBasinMember 2019-01-01 2019-12-31 0001737204 rvra:BlueMountainMember 2019-01-01 2019-12-31 0001737204 us-gaap:NaturalGasProductionMember rvra:HugotonBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember rvra:MidContinentMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember rvra:EastTexasMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember rvra:MichiganIllinoisMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember rvra:NorthLouisianaMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember rvra:UintaBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember rvra:PermianBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasProductionMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember rvra:HugotonBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember rvra:MidContinentMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember rvra:EastTexasMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember rvra:MichiganIllinoisMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember rvra:NorthLouisianaMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember rvra:UintaBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember rvra:PermianBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndCondensateMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember rvra:HugotonBasinMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember rvra:MidContinentMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember rvra:EastTexasMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember rvra:MichiganIllinoisMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember rvra:NorthLouisianaMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember rvra:UintaBasinMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember rvra:PermianBasinMember 2018-01-01 2018-12-31 0001737204 rvra:NaturalGasLiquidsMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:HugotonBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:MidContinentMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:EastTexasMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:MichiganIllinoisMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:NorthLouisianaMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:UintaBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:PermianBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:HugotonBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:EastTexasMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:NorthLouisianaMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:BlueMountainMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:HugotonBasinMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:MidContinentMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:EastTexasMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:MichiganIllinoisMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:NorthLouisianaMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:PermianBasinMember 2018-01-01 2018-12-31 0001737204 rvra:HugotonBasinMember 2018-01-01 2018-12-31 0001737204 rvra:MidContinentMember 2018-01-01 2018-12-31 0001737204 rvra:EastTexasMember 2018-01-01 2018-12-31 0001737204 rvra:MichiganIllinoisMember 2018-01-01 2018-12-31 0001737204 rvra:NorthLouisianaMember 2018-01-01 2018-12-31 0001737204 rvra:UintaBasinMember 2018-01-01 2018-12-31 0001737204 rvra:PermianBasinMember 2018-01-01 2018-12-31 0001737204 rvra:BlueMountainMember 2018-01-01 2018-12-31 0001737204 rvra:HugotonBasinAssetsSaleMember 2019-11-22 2019-11-22 0001737204 rvra:HugotonBasinAssetsSaleMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinAssetsSaleMember 2018-01-01 2018-12-31 0001737204 rvra:HugotonBasinAssetsSaleMember 2017-03-01 2017-12-31 0001737204 rvra:HugotonBasinAssetsSaleMember 2017-01-01 2017-02-28 0001737204 rvra:BlueMountainAssetsSaleMember 2019-01-01 2019-12-31 0001737204 rvra:IllinoisAssetsSaleMember 2019-09-04 2019-09-05 0001737204 rvra:NorthLouisianaAssetsSaleMember 2019-08-30 2019-08-30 0001737204 rvra:MichiganAssetsSaleMember 2019-07-03 2019-07-03 0001737204 rvra:MichiganAssetsSaleMember 2019-01-01 2019-12-31 0001737204 rvra:HugotonBasinAssetsSaleMember 2019-05-31 2019-05-31 0001737204 rvra:ArkomaAssetsSaleMember 2019-01-17 2019-01-17 0001737204 rvra:ArkomaAssetsSaleMember 2018-12-31 0001737204 rvra:OklahomaCityOfficeBuildingSaleMember srt:ScenarioForecastMember 2020-01-01 2020-03-31 0001737204 rvra:PersonvilleFieldOfEastTexasInterestInPropertiesSaleMember 2019-01-01 2019-12-31 0001737204 rvra:OvertonFieldOfEastTexasInterestInPropertiesSaleMember 2019-01-01 2019-12-31 0001737204 rvra:OklahomaCityOfficeBuildingSaleMember 2019-01-01 2019-12-31 0001737204 us-gaap:SubsequentEventMember rvra:DrunkardsWashFieldUintaBasinInterestInPropertiesSalesMember 2020-01-15 2020-01-15 0001737204 us-gaap:SubsequentEventMember rvra:PersonvilleFieldOfEastTexasInterestInPropertiesSaleMember 2020-02-14 2020-02-14 0001737204 us-gaap:SubsequentEventMember rvra:OvertonFieldOfEastTexasInterestInPropertiesSaleMember 2020-01-01 2020-01-31 0001737204 rvra:DrunkardsWashFieldUintaBasinInterestInPropertiesSalesMember 2019-12-31 0001737204 rvra:OvertonFieldOfEastTexasInterestInPropertiesSaleMember 2019-12-31 0001737204 rvra:PersonvilleFieldOfEastTexasInterestInPropertiesSaleMember 2019-12-31 0001737204 rvra:NewMexicoAssetsSaleMember 2018-04-10 2018-04-10 0001737204 rvra:AltamontBluebellAssetsSaleMember 2018-04-04 2018-04-04 0001737204 rvra:WestTexasAssetsSaleMember 2018-03-29 2018-03-29 0001737204 rvra:OklahomaWaterfloodAndTexasPanhandlePropertiesMember 2018-02-28 2018-02-28 0001737204 rvra:OklahomaWaterfloodAndTexasPanhandlePropertiesMember 2018-02-28 0001737204 rvra:WillistonBasinMember 2017-11-30 2017-11-30 0001737204 rvra:WyomingPropertiesMember 2017-11-30 2017-11-30 0001737204 rvra:SouthTexasAssetsSalesMember 2017-01-01 2017-12-31 0001737204 rvra:TexasAndNewMexicoAssetsSalesMember 2017-01-01 2017-12-31 0001737204 rvra:SaltCreekFieldSaleMember 2017-06-30 2017-06-30 0001737204 rvra:WesternWyomingMember 2017-05-31 2017-05-31 0001737204 rvra:RoanResourcesLLCMember 2017-08-31 0001737204 rvra:RoanResourcesLLCMember 2018-01-01 2018-07-25 0001737204 rvra:RoanResourcesLLCMember 2017-09-01 2017-12-31 0001737204 rvra:RoanResourcesLLCMember 2018-07-25 0001737204 rvra:SanJoaquinBasinSaleMember 2017-07-31 2017-07-31 0001737204 rvra:LosAngelesBasinSaleMember 2017-07-21 2017-07-21 0001737204 rvra:LosAngelesBasinSaleMember 2019-01-01 2019-12-31 0001737204 rvra:LosAngelesBasinSaleMember 2018-01-01 2018-12-31 0001737204 rvra:CaliforniaPropertiesMember 2017-03-01 2017-12-31 0001737204 rvra:CaliforniaPropertiesMember 2017-01-01 2017-02-28 0001737204 rvra:CaliforniaPropertiesMember 2017-03-01 2017-12-31 0001737204 us-gaap:GasGatheringAndProcessingEquipmentMember 2019-12-31 0001737204 us-gaap:GasGatheringAndProcessingEquipmentMember 2018-12-31 0001737204 us-gaap:FurnitureAndFixturesMember 2019-12-31 0001737204 us-gaap:FurnitureAndFixturesMember 2018-12-31 0001737204 us-gaap:BuildingAndBuildingImprovementsMember 2019-12-31 0001737204 us-gaap:BuildingAndBuildingImprovementsMember 2018-12-31 0001737204 us-gaap:VehiclesMember 2019-12-31 0001737204 us-gaap:VehiclesMember 2018-12-31 0001737204 us-gaap:LandMember 2019-12-31 0001737204 us-gaap:LandMember 2018-12-31 0001737204 us-gaap:UpstreamEquipmentMember 2019-12-31 0001737204 us-gaap:UpstreamEquipmentMember 2018-12-31 0001737204 rvra:RivieraCreditFacilityMember 2017-08-04 0001737204 rvra:RivieraCreditFacilityMember 2019-01-31 0001737204 rvra:RivieraCreditFacilityMember 2019-06-30 0001737204 rvra:RivieraCreditFacilityMember 2019-09-27 0001737204 rvra:RivieraCreditFacilityMember 2019-01-01 2019-12-31 0001737204 rvra:RivieraCreditFacilityMember 2019-03-31 0001737204 rvra:RivieraCreditFacilityMember 2019-05-31 0001737204 rvra:RivieraCreditFacilityMember 2019-04-30 0001737204 rvra:RivieraCreditFacilityMember 2019-07-31 0001737204 rvra:RivieraCreditFacilityMember 2019-12-31 0001737204 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember rvra:RivieraCreditFacilityMember 2019-01-01 2019-12-31 0001737204 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember rvra:RivieraCreditFacilityMember 2019-01-01 2019-12-31 0001737204 rvra:AbrMember srt:MinimumMember rvra:RivieraCreditFacilityMember 2019-01-01 2019-12-31 0001737204 rvra:AbrMember srt:MaximumMember rvra:RivieraCreditFacilityMember 2019-01-01 2019-12-31 0001737204 rvra:RivieraCreditFacilityMember srt:MaximumMember 2019-12-31 0001737204 rvra:RivieraCreditFacilityMember srt:MinimumMember 2019-12-31 0001737204 2018-08-10 0001737204 srt:MinimumMember rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember 2018-08-10 0001737204 rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember 2018-08-10 0001737204 rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember 2019-02-08 0001737204 rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember 2019-12-31 0001737204 rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember us-gaap:SubsequentEventMember 2020-01-31 0001737204 rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember 2018-08-09 2018-08-10 0001737204 srt:MinimumMember rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-08-09 2018-08-10 0001737204 srt:MaximumMember rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-08-09 2018-08-10 0001737204 srt:MinimumMember rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember rvra:AbrMember 2018-08-09 2018-08-10 0001737204 srt:MaximumMember rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember rvra:AbrMember 2018-08-09 2018-08-10 0001737204 rvra:SeniorSecuredRevolvingLoanFacilityMember srt:SubsidiariesMember 2019-01-01 2019-12-31 0001737204 srt:MinimumMember srt:SubsidiariesMember rvra:SeniorSecuredRevolvingLoanFacilityMember 2018-08-09 2018-08-10 0001737204 srt:MaximumMember srt:SubsidiariesMember rvra:SeniorSecuredRevolvingLoanFacilityMember 2018-08-09 2018-08-10 rvra:MMMBTU 0001737204 rvra:NaturalGasCommodityContractMember us-gaap:SwapMember rvra:YearTwoThousandTwentyMember 2019-12-31 iso4217:USD utr:MMBTU utr:MBbls 0001737204 rvra:OilCommodityContractMember us-gaap:SwapMember rvra:YearTwoThousandTwentyMember 2019-12-31 iso4217:USD utr:bbl 0001737204 rvra:PEPLBasisSwapMember us-gaap:SwapMember rvra:YearTwoThousandTwentyMember 2019-12-31 iso4217:USD rvra:MMMBTU 0001737204 2018-04-01 2018-04-30 0001737204 rvra:GainLossOnCommodityDerivativesMember 2019-01-01 2019-12-31 0001737204 rvra:GainLossOnCommodityDerivativesMember 2018-01-01 2018-12-31 0001737204 rvra:GainLossOnCommodityDerivativesMember 2017-03-01 2017-12-31 0001737204 rvra:GainLossOnCommodityDerivativesMember 2017-01-01 2017-02-28 0001737204 rvra:MarketingExpensesMember 2019-01-01 2019-12-31 0001737204 rvra:MarketingExpensesMember 2018-01-01 2018-12-31 0001737204 rvra:MarketingExpensesMember 2017-03-01 2017-12-31 0001737204 rvra:MarketingExpensesMember 2017-01-01 2017-02-28 0001737204 2017-01-01 2017-12-31 0001737204 rvra:RoanResourcesLLCMember 2019-01-01 2019-12-31 0001737204 rvra:RoanResourcesLLCMember 2019-12-31 0001737204 us-gaap:CommonStockMember 2018-08-07 0001737204 srt:MaximumMember us-gaap:CommonStockMember 2019-07-18 0001737204 us-gaap:AdditionalPaidInCapitalMember rvra:ShareRepurchaseProgramMember 2019-01-01 2019-12-31 0001737204 rvra:PrivatePurchaseMember 2019-01-01 2019-12-31 0001737204 rvra:PrivatePurchaseMember 2019-12-31 0001737204 us-gaap:SubsequentEventMember us-gaap:CommonStockMember 2020-01-01 2020-02-21 0001737204 us-gaap:SubsequentEventMember us-gaap:CommonStockMember 2020-02-21 0001737204 us-gaap:SubsequentEventMember us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-02-21 0001737204 rvra:TenderOfferMember us-gaap:CommonStockMember 2019-06-13 2019-06-13 0001737204 rvra:TenderOfferMember us-gaap:CommonStockMember 2019-07-01 2019-07-31 0001737204 2019-11-21 0001737204 us-gaap:RestrictedStockUnitsRSUMember 2018-08-05 2018-08-07 0001737204 rvra:OmnibusIncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember 2019-12-31 0001737204 rvra:OmnibusIncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0001737204 rvra:OmnibusIncentivePlanMember us-gaap:PerformanceSharesMember 2019-01-01 2019-12-31 0001737204 rvra:OmnibusIncentivePlanMember us-gaap:CommonStockMember srt:MaximumMember 2019-12-31 0001737204 rvra:OmnibusIncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember srt:MaximumMember 2019-12-31 0001737204 rvra:OmnibusIncentivePlanMember us-gaap:PerformanceSharesMember srt:MaximumMember 2019-12-31 0001737204 srt:SubsidiariesMember us-gaap:CommonClassAMember rvra:LinnHoldcoIIMember 2019-01-01 2019-12-31 0001737204 srt:SubsidiariesMember us-gaap:CommonClassBMember srt:MaximumMember 2019-12-31 0001737204 srt:SubsidiariesMember us-gaap:CommonClassAMember 2019-12-31 0001737204 srt:SubsidiariesMember us-gaap:CommonClassBMember 2019-12-31 0001737204 rvra:BlueMountainMidstreamLLCTwentyEighteenOmnibusIncentivePlanMember rvra:ClassBUnitsMember 2019-12-31 0001737204 rvra:BlueMountainMidstreamLLCTwentyEighteenOmnibusIncentivePlanMember rvra:ClassBUnitsMember us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0001737204 rvra:BlueMountainMidstreamLLCTwentyEighteenOmnibusIncentivePlanMember rvra:ClassBUnitsMember us-gaap:PerformanceSharesMember 2019-01-01 2019-12-31 0001737204 rvra:BlueMountainMidstreamLLCTwentyEighteenOmnibusIncentivePlanMember rvra:ClassBUnitsMember 2019-01-01 2019-12-31 0001737204 rvra:LINNEnergyIncMember us-gaap:RestrictedStockUnitsRSUMember rvra:LiquidityProgramMember 2018-01-01 2018-08-07 0001737204 rvra:LINNEnergyIncMember rvra:LiquidityProgramMember 2018-01-01 2018-08-07 0001737204 rvra:LINNEnergyIncMember us-gaap:CommonClassAMember 2018-08-05 2018-08-07 0001737204 us-gaap:RestrictedStockUnitsRSUMember rvra:LINNEnergyIncMember 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember rvra:LINNEnergyIncMember 2018-05-11 2018-08-07 0001737204 us-gaap:RestrictedStockUnitsRSUMember rvra:LINNEnergyIncMember 2018-01-01 2018-08-07 0001737204 rvra:LINNIncentivePlanMember 2019-01-01 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember rvra:LINNEnergyIncMember 2018-09-30 0001737204 us-gaap:RestrictedStockUnitsRSUMember rvra:LINNEnergyIncMember 2018-08-01 2018-09-30 0001737204 rvra:LINNEnergyIncMember us-gaap:CommonClassAMember 2019-12-31 0001737204 rvra:LINNEnergyIncMember us-gaap:CommonClassAMember 2018-12-31 0001737204 rvra:LINNEnergyIncMember 2018-01-01 2018-12-31 rvra:Grantee 0001737204 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-12-31 0001737204 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-12-31 0001737204 us-gaap:GeneralAndAdministrativeExpenseMember 2017-03-01 2017-12-31 0001737204 us-gaap:GeneralAndAdministrativeExpenseMember 2017-01-01 2017-02-28 0001737204 us-gaap:GeneralAndAdministrativeExpenseMember rvra:LINNEnergyIncMember 2018-01-01 2018-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember rvra:LiquidityProgramMember 2019-01-01 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember srt:SubsidiariesMember rvra:BlueMountainMidstreamLLCTwentyEighteenOmnibusIncentivePlanMember 2018-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember srt:SubsidiariesMember rvra:BlueMountainMidstreamLLCTwentyEighteenOmnibusIncentivePlanMember 2019-01-01 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember srt:SubsidiariesMember rvra:BlueMountainMidstreamLLCTwentyEighteenOmnibusIncentivePlanMember 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember srt:SubsidiariesMember 2019-01-01 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember srt:SubsidiariesMember 2019-12-31 0001737204 us-gaap:PerformanceSharesMember 2018-12-01 2018-12-31 0001737204 us-gaap:PerformanceSharesMember 2019-12-31 0001737204 us-gaap:PerformanceSharesMember 2019-01-01 2019-12-31 0001737204 us-gaap:PerformanceSharesMember 2018-01-01 2018-12-31 0001737204 us-gaap:PhantomShareUnitsPSUsMember 2019-01-01 2019-12-31 0001737204 2018-08-07 0001737204 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0001737204 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0001737204 2017-02-01 2017-02-28 0001737204 rvra:ProfessionalFeesMember 2019-12-31 0001737204 rvra:ProfessionalFeesMember 2018-12-31 0001737204 rvra:DepositsForDivestituresMember 2019-12-31 0001737204 rvra:DepositsForDivestituresMember 2018-12-31 0001737204 rvra:DistributionsMember 2019-12-31 0001737204 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001737204 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 rvra:Customer 0001737204 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-12-31 0001737204 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-02-28 0001737204 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001737204 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001737204 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-12-31 0001737204 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2018-12-31 0001737204 rvra:PrivatePurchaseMember us-gaap:CommonStockMember rvra:YorkSelectStrategyMasterFundMember 2019-05-01 2019-05-31 0001737204 rvra:PrivatePurchaseMember us-gaap:CommonStockMember rvra:FirTreeCapitalOpportunityMasterFundMember 2019-06-25 2019-07-24 0001737204 rvra:PrivatePurchaseMember us-gaap:CommonStockMember rvra:FirTreeCapitalOpportunityFundEMember 2019-06-25 2019-07-24 0001737204 rvra:PrivatePurchaseMember us-gaap:CommonStockMember rvra:YorkSelectStrategyMasterFundMember 2019-05-31 0001737204 rvra:PrivatePurchaseMember us-gaap:CommonStockMember rvra:FirTreeCapitalOpportunityFundEMember 2019-07-24 0001737204 rvra:RoanResourcesLLCMember 2017-08-31 0001737204 rvra:RoanResourcesLLCMember 2017-08-30 2017-08-31 0001737204 rvra:RoanResourcesLLCMember 2018-01-01 2018-12-31 0001737204 rvra:RoanResourcesLLCMember 2018-12-31 rvra:Segment 0001737204 us-gaap:OilAndGasMember rvra:UpstreamMember 2019-01-01 2019-12-31 0001737204 us-gaap:OilAndGasMember rvra:BlueMountainMember 2019-01-01 2019-12-31 0001737204 us-gaap:OilAndGasMember us-gaap:CorporateNonSegmentMember 2019-01-01 2019-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:UpstreamMember 2019-01-01 2019-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:CorporateNonSegmentMember 2019-01-01 2019-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:UpstreamMember 2019-01-01 2019-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:BlueMountainMember 2019-01-01 2019-12-31 0001737204 us-gaap:ProductAndServiceOtherMember us-gaap:CorporateNonSegmentMember 2019-01-01 2019-12-31 0001737204 rvra:UpstreamMember 2019-01-01 2019-12-31 0001737204 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-12-31 0001737204 us-gaap:OilAndGasMember rvra:UpstreamMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:BlueMountainMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember us-gaap:CorporateNonSegmentMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:UpstreamMember 2018-01-01 2018-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:CorporateNonSegmentMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:UpstreamMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:BlueMountainMember 2018-01-01 2018-12-31 0001737204 us-gaap:ProductAndServiceOtherMember us-gaap:CorporateNonSegmentMember 2018-01-01 2018-12-31 0001737204 rvra:UpstreamMember 2018-01-01 2018-12-31 0001737204 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-12-31 0001737204 us-gaap:OilAndGasMember rvra:UpstreamMember 2017-03-01 2017-12-31 0001737204 us-gaap:OilAndGasMember rvra:BlueMountainMember 2017-03-01 2017-12-31 0001737204 us-gaap:OilAndGasMember us-gaap:CorporateNonSegmentMember 2017-03-01 2017-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:UpstreamMember 2017-03-01 2017-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:BlueMountainMember 2017-03-01 2017-12-31 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:CorporateNonSegmentMember 2017-03-01 2017-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:UpstreamMember 2017-03-01 2017-12-31 0001737204 us-gaap:ProductAndServiceOtherMember rvra:BlueMountainMember 2017-03-01 2017-12-31 0001737204 us-gaap:ProductAndServiceOtherMember us-gaap:CorporateNonSegmentMember 2017-03-01 2017-12-31 0001737204 rvra:UpstreamMember 2017-03-01 2017-12-31 0001737204 rvra:BlueMountainMember 2017-03-01 2017-12-31 0001737204 us-gaap:CorporateNonSegmentMember 2017-03-01 2017-12-31 0001737204 us-gaap:OilAndGasMember rvra:UpstreamMember 2017-01-01 2017-02-28 0001737204 us-gaap:OilAndGasMember rvra:BlueMountainMember 2017-01-01 2017-02-28 0001737204 us-gaap:OilAndGasMember us-gaap:CorporateNonSegmentMember 2017-01-01 2017-02-28 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:UpstreamMember 2017-01-01 2017-02-28 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember rvra:BlueMountainMember 2017-01-01 2017-02-28 0001737204 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember us-gaap:CorporateNonSegmentMember 2017-01-01 2017-02-28 0001737204 us-gaap:ProductAndServiceOtherMember rvra:UpstreamMember 2017-01-01 2017-02-28 0001737204 us-gaap:ProductAndServiceOtherMember rvra:BlueMountainMember 2017-01-01 2017-02-28 0001737204 us-gaap:ProductAndServiceOtherMember us-gaap:CorporateNonSegmentMember 2017-01-01 2017-02-28 0001737204 rvra:UpstreamMember 2017-01-01 2017-02-28 0001737204 rvra:BlueMountainMember 2017-01-01 2017-02-28 0001737204 us-gaap:CorporateNonSegmentMember 2017-01-01 2017-02-28 utr:Bcf 0001737204 srt:NaturalGasReservesMember 2018-12-31 utr:MMBbls 0001737204 srt:OilReservesMember 2018-12-31 0001737204 srt:NaturalGasLiquidsReservesMember 2018-12-31 0001737204 srt:NaturalGasReservesMember 2019-01-01 2019-12-31 0001737204 srt:OilReservesMember 2019-01-01 2019-12-31 0001737204 srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-12-31 0001737204 srt:NaturalGasReservesMember 2019-12-31 0001737204 srt:OilReservesMember 2019-12-31 0001737204 srt:NaturalGasLiquidsReservesMember 2019-12-31 utr:Bcfe 0001737204 srt:NaturalGasReservesMember 2017-12-31 0001737204 srt:OilReservesMember 2017-12-31 0001737204 srt:NaturalGasLiquidsReservesMember 2017-12-31 0001737204 srt:NaturalGasReservesMember 2018-01-01 2018-12-31 0001737204 srt:OilReservesMember 2018-01-01 2018-12-31 0001737204 srt:NaturalGasLiquidsReservesMember 2018-01-01 2018-12-31 0001737204 srt:NaturalGasReservesMember 2016-12-31 0001737204 srt:OilReservesMember 2016-12-31 0001737204 srt:NaturalGasLiquidsReservesMember 2016-12-31 0001737204 srt:NaturalGasReservesMember 2017-01-01 2017-12-31 0001737204 srt:OilReservesMember 2017-01-01 2017-12-31 0001737204 srt:NaturalGasLiquidsReservesMember 2017-01-01 2017-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember 2016-12-31 0001737204 us-gaap:SegmentDiscontinuedOperationsMember 2016-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember 2017-01-01 2017-12-31 0001737204 us-gaap:SegmentDiscontinuedOperationsMember 2017-01-01 2017-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember 2017-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember 2019-01-01 2019-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember 2018-01-01 2018-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember 2019-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember 2018-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember rvra:PriceMember 2019-01-01 2019-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember rvra:PriceMember 2018-01-01 2018-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember rvra:PriceMember 2017-01-01 2017-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember rvra:AssetPerformanceMember 2019-01-01 2019-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember rvra:AssetPerformanceMember 2018-01-01 2018-12-31 0001737204 us-gaap:SegmentContinuingOperationsMember rvra:AssetPerformanceMember 2017-01-01 2017-12-31 rvra:Well 0001737204 us-gaap:OilAndGasMember 2019-01-01 2019-03-31 0001737204 us-gaap:OilAndGasMember 2019-04-01 2019-06-30 0001737204 us-gaap:OilAndGasMember 2019-07-01 2019-09-30 0001737204 us-gaap:OilAndGasMember 2019-10-01 2019-12-31 0001737204 2019-01-01 2019-03-31 0001737204 2019-04-01 2019-06-30 0001737204 2019-07-01 2019-09-30 0001737204 2019-10-01 2019-12-31 0001737204 us-gaap:OilAndGasMember 2018-01-01 2018-03-31 0001737204 us-gaap:OilAndGasMember 2018-04-01 2018-06-30 0001737204 us-gaap:OilAndGasMember 2018-07-01 2018-09-30 0001737204 us-gaap:OilAndGasMember 2018-10-01 2018-12-31 0001737204 2018-01-01 2018-03-31 0001737204 2018-04-01 2018-06-30 0001737204 2018-07-01 2018-09-30 0001737204 2018-10-01 2018-12-31

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number:  333-225927

 

 

 

 

 

 

Riviera Resources, Inc.

(Exact name of registrant as specified in its charter)

Delaware

 

82-5121920

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

600 Travis Street, Suite 1700

Houston, Texas

 

77002

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code

(281) 840-4000

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Title of each class

 

Trading symbols(s)

 

Name of exchange on which registered

None

 

None

 

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities

Act.     Yes      No 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.     Yes      No

 


 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes      No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes      No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  

 

Accelerated filer  

Non-accelerated filer  

 

Smaller reporting company  

 

 

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      

Indicate by check-mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes      No

Aggregate market value of the Company’s common stock held by non-affiliates of the registrant as of June 28, 2019, was $293,404,582 based on the closing price on the OTCQX Market.

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes      No

As of January 31, 2020, there were 58,037,642 shares of common stock, par value $0.01 per share, outstanding.

Documents Incorporated By Reference:

Portions of the registrant’s definitive proxy statement relating to its 2020 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after December 31, 2019, are incorporated by reference to the extent set forth in Part III, Items 10-14 of this Annual Report on Form 10‑K.

 

 

 


 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

 

Glossary of Terms

ii

 

 

 

 

Part I

1

Item 1.

Business

1

Item 1A.

Risk Factors

23

Item 1B.

Unresolved Staff Comments

40

Item 2.

Properties

40

Item 3.

Legal Proceedings

40

Item 4.

Mine Safety Disclosures

40

 

Part II

41

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

41

Item 6.

Selected Financial Data

43

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

46

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

74

Item 8.

Financial Statements and Supplementary Data

76

Item 9.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

130

Item 9A.

Controls and Procedures

130

Item 9B.

Other Information

130

 

Part III

131

Item 10.

Directors, Executive Officers and Corporate Governance

131

Item 11.

Executive Compensation

132

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

132

Item 13.

Certain Relationships and Related Transactions, and Director Independence

132

Item 14.

Principal Accounting Fees and Services

132

 

Part IV

133

Item 15.

Exhibits and Financial Statement Schedules

133

 

 

 

 

Signatures

137

 

 

i


Table of Contents

Glossary of Terms

As commonly used in the oil and natural gas industry and as used in this Annual Report on Form 10-K, the following terms have the following meanings:

Basin.  A large area with a relatively thick accumulation of sedimentary rocks.

Bbl.  One stock tank barrel or 42 United States gallons liquid volume.

Bcf.  One billion cubic feet.

Bcfe.  One billion cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of oil, condensate or natural gas liquids.

Btu.  One British thermal unit, which is the heat required to raise the temperature of a one-pound mass of water from 58.5 degrees to 59.5 degrees Fahrenheit.

Development well.  A well drilled within the proved area of a reservoir to the depth of a stratigraphic horizon known to be productive.

Dry hole or well.  A well found to be incapable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of such production would exceed production expenses and taxes.

Exploratory well.  A well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or natural gas in another reservoir.

Field.  An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature and/or stratigraphic condition.

Formation.  A stratum of rock that is recognizable from adjacent strata consisting primarily of a certain type of rock or combination of rock types with thickness that may range from less than two feet to hundreds of feet.

Gross acres or gross wells.  The total acres or wells, as the case may be, in which a working interest is owned.

MBbls.  One thousand barrels of oil or other liquid hydrocarbons.

MBbls/d.  MBbls per day.

Mcf.  One thousand cubic feet.

Mcfe.  One thousand cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of oil, condensate or natural gas liquids.

MMBbls.  One million barrels of oil or other liquid hydrocarbons.

MMBtu.  One million British thermal units.

MMcf.  One million cubic feet.

MMcf/d.  MMcf per day.

MMcfe.  One million cubic feet equivalent, determined using the ratio of six Mcf of natural gas to one Bbl of oil, condensate or natural gas liquids.

MMcfe/d.  MMcfe per day.

MMMBtu.  One billion British thermal units.

Net acres or net wells.  The sum of the fractional working interests owned in gross acres or gross wells, as the case may be.

ii


Table of Contents

Glossary of Terms – Continued

NGL.  Natural gas liquids, which are the hydrocarbon liquids contained within natural gas.

Productive well.  A well found to be capable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of such production exceeds production expenses and taxes.

Proved developed reserves.  Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.

Proved reserves.  Reserves that by analysis of geoscience and engineering data can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain.  The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

Proved undeveloped drilling location.  A site on which a development well can be drilled consistent with spacing rules for purposes of recovering proved undeveloped reserves.

Proved undeveloped reserves or PUDs.  Reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.  Reserves on undrilled acreage are limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.  Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.  Estimates for proved undeveloped reserves are not attributed to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty.

Recompletion.  The completion for production of an existing wellbore in another formation from that which the well has been previously completed.

Reservoir.  A porous and permeable underground formation containing a natural accumulation of economically productive natural gas and/or oil that is confined by impermeable rock or water barriers and is individual and separate from other reserves.

Royalty interest.  An interest that entitles the owner of such interest to a share of the mineral production from a property or to a share of the proceeds there from.  It does not contain the rights and obligations of operating the property and normally does not bear any of the costs of exploration, development and operation of the property.

Spacing.  The number of wells which conservation laws allow to be drilled on a given area of land.

Standardized measure of discounted future net cash flows.  The after-tax present value of estimated future net cash flows of proved reserves, determined in accordance with the regulations of the Securities and Exchange Commission and discounted using an annual discount rate of 10%.

Undeveloped acreage.  Lease acreage on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil, natural gas and NGL regardless of whether such acreage contains proved reserves.

Unproved reserves.  Reserves that are considered less certain to be recovered than proved reserves.  Unproved reserves may be further sub-classified to denote progressively increasing uncertainty of recoverability and include probable reserves and possible reserves.

Working interest.  The operating interest that gives the owner the right to drill, produce and conduct operating activities on the property and a share of production.

Workover.  Maintenance on a producing well to restore or increase production.

Zone.  A stratigraphic interval containing one or more reservoirs.

 

iii


Table of Contents

Part I

Item 1.

Business

This Annual Report on Form 10-K contains forward-looking statements based on expectations, estimates and assumptions as of the date of this filing.  These statements by their nature are subject to a number of risks and uncertainties.  Actual results may differ materially from those discussed in the forward-looking statements.  For more information, see “Cautionary Statement Regarding Forward-Looking Statements” included at the end of this Item 1. “Business” and see also Item 1A. “Risk Factors.”

References

Unless otherwise indicated or the context otherwise requires, references herein to the “Company,” “we,” “our,” and “us” refer (i) prior to the Spin-off (as defined below) to Linn Energy, Inc. (the “Parent”) and its consolidated subsidiaries, and (ii) after the Spin-off, to Riviera Resources, Inc. (“Riviera”) and its consolidated subsidiaries.  Unless otherwise indicated or the context otherwise requires, references herein to “LINN Energy” refer to Linn Energy, Inc. and its consolidated subsidiaries.  References to “Successor” relate to the financial position and results of operations of the Company subsequent to LINN Energy’s emergence from bankruptcy on February 28, 2017.  References to “Predecessor” relate to the financial position of the Company prior to, and results of operations through and including February 28, 2017.  Riviera is a successor issuer of the Parent pursuant to Rule 15d-5 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

The reference to a “Note” herein refers to the accompanying Notes to Consolidated and Combined Financial Statements contained in Item 8. “Financial Statements and Supplementary Data.”

Overview

Riviera is an independent oil and natural gas company with a strategic focus on efficiently operating its mature low-decline assets, developing its growth-oriented assets, and returning capital to shareholders.  Riviera is quoted for trading on the OTCQX Market under the ticker “RVRA.”  The Company has two operating segments: upstream and Blue Mountain.

The Company’s upstream reporting segment properties are currently primarily located in two operating regions in the United States (“U.S.”): the Mid-Continent and North Louisiana.  Proved reserves at December 31, 2019, were approximately 316 Bcfe, of which approximately 89% were natural gas, 6% were natural gas liquids (“NGL”) and 5% were oil.  Approximately 90% were classified as proved developed, with a total standardized measure of discounted future net cash flows of approximately $159 million.  At December 31, 2019, the Company operated 1,446 or approximately 55% of its 2,635 gross productive wells.

In the first quarter of 2020, the Company completed the sale of its interests in non-operated properties located in the Drunkards Wash field in the Uinta Basin, the Overton field in East Texas and the Personville field in East Texas.  These properties are included in “assets held for sale” on the consolidated balance sheet as of December 31, 2019.  Reserve information as of December 31, 2019, includes amounts associated with these properties.  See Note 4 for additional information.

The Blue Mountain reporting segment consists of a state of the art cryogenic natural gas processing facility, a network of gathering pipelines and compressors and produced water services and a crude oil gathering system located in the Merge/SCOOP/STACK play, each of which is owned by Blue Mountain Midstream LLC (“Blue Mountain Midstream”), a wholly owned subsidiary of the Company.

In April 2018, the Parent announced its intention to separate Riviera from LINN Energy.  To effect the separation, the Parent and certain of its then direct and indirect subsidiaries undertook an internal reorganization (including the conversion of Riviera Resources, LLC from a limited liability company to a corporation named Riviera Resources, Inc.), following which Riviera holds, directly or through its subsidiaries, substantially all of the assets of LINN Energy, other than LINN Energy’s 50% equity interest in Roan Resources LLC (“Roan”).  A subsidiary of the Company held the equity interest in Roan until the Parent’s internal reorganization on July 25, 2018 (the “Reorganization Date”).  Following the internal reorganization, the Parent distributed all of the outstanding shares of Riviera common stock to the Parent’s shareholders on a pro rata basis (the “Spin-off”).  The Spin-off was completed on August 7, 2018.

1


Table of Contents

Item 1.Business - Continued

Prior to the Spin-off, the accompanying consolidated and combined financial statements were prepared on a stand-alone basis and derived from the Parent’s consolidated financial statements and accounting records for the periods presented as the Company was historically managed as a subsidiary of the Parent.

Historically, a subsidiary of the Company also owned a 50% equity interest in Roan.  The Company’s equity earnings (losses), consisting of its share of Roan’s earnings or losses, are included in the consolidated and combined financial statements through the Reorganization Date.  However, on the Reorganization Date, the equity interest in Roan was distributed to the Parent and is no longer affiliated with Riviera.  As such, the Company has classified the investment and equity earnings (losses) in Roan as discontinued operations on its consolidated and combined financial statements.  See Note 4 for additional information.  In December 2019, stockholders of Roan Resources, Inc. approved an Agreement and Plan of Merger (“Merger”) between Roan Resources, Inc. and a subsidiary of Citizen Energy Operating, LLC (“Citizen Operating”) under which Roan Resources, Inc., including its subsidiary Roan Resources LLC, became wholly owned subsidiaries of Citizen Operating.  The effective date of the Merger was December 6, 2019, and as a result of the Merger, the Company and Roan Resources, Inc. no longer share certain mutual directors and significant stockholders.

Strategy

Riviera is strategically focused on efficiently operating its mature low-decline assets, developing its growth-oriented assets, and returning capital to shareholders.  The Company has producing properties currently located primarily in Oklahoma and Louisiana.  The Company’s wholly owned subsidiary, Blue Mountain Midstream, is an emerging midstream company with assets in central Oklahoma focused on providing its customers with comprehensive natural gas, oil, natural gas liquids, and water solutions in a safe and environmentally sound manner, including gas and oil gathering and processing, water gathering and treatment, and delivery of product to lucrative downstream markets.  In the future, Blue Mountain Midstream looks to expand the scale and scope of its service capabilities in the Merge/SCOOP/STACK through organic growth and strategic acquisitions.

Recent Developments

Divestitures

Below are the Company’s completed divestitures in 2019:

On November 22, 2019, the Company completed the sale of its interest in the remaining properties located in the Hugoton Basin (the “Hugoton Basin Assets Sale”).  Cash proceeds received from the sale of these properties were approximately $286 million. During the year ended December 31, 2019, the Company recorded a noncash impairment charge of approximately $100 million to reduce the carrying value of these assets to fair value. In connection with the Hugoton Basin Assets Sale, the buyer also acquired the Company’s interests in Mayzure, LLC, a wholly owned subsidiary of the Company, which was the counterparty to the volumetric production payment agreements based on helium produced from certain oil and natural gas properties in the Hugoton Basin.

Blue Mountain Midstream entered into an agreement with a potential customer to construct a gathering system, as well as gather and process gas.  During the third quarter of 2019, a decision was made not to proceed with the gas gathering and processing contract, and as a result, the customer reimbursed Blue Mountain Midstream for capital deployed and operating expenses incurred, in addition to paying a success fee for constructing the assets.  During the year ended December 31, 2019, Blue Mountain Midstream received a capital reimbursement of approximately $20 million.  Blue Mountain Midstream also received approximately $4 million for the success fee and the expense reimbursement, which is included in “(gains) losses on sale of assets and other, net” on the consolidated and combined statement of operations.

On September 5, 2019, the Company completed the sale of its interest in properties located in Illinois.  Cash proceeds from the sale of these properties were approximately $4 million and the Company recorded a net gain of approximately $4 million.

On August 30, 2019, the Company completed the sale of its interest in non-core assets located in North Louisiana.  Cash proceeds from the sale were approximately $2 million and the Company recorded a net gain of approximately $376,000.

On July 3, 2019, the Company completed the sale of its interest in properties located in Michigan (the “Michigan Assets Sale”).  Cash proceeds from the sale of these properties were approximately $39 million.  The Company recorded a noncash

2


Table of Contents

Item 1.Business - Continued

impairment charge to reduce the carrying value of these assets to fair value of approximately $18 million for the year ended December 31, 2019.

On May 31, 2019, the Company completed the sale of its interest in non-operated properties located in the Hugoton Basin in Kansas.  Cash proceeds received from the sale of these properties were approximately $29 million and the Company recognized a net loss of approximately $10 million.

On January 17, 2019, the Company completed the sale of its interest in properties located in the Arkoma Basin in Oklahoma.  Cash proceeds received from the sale of these properties were approximately $64 million (including a deposit of approximately $5 million received in 2018), and the Company recognized a net gain of approximately $28 million.

Divestitures – Subsequent Events

On January 15, 2020, the Company completed the sale of its interests in non-operated properties located in the Drunkards Wash field in the Uinta Basin (the “Drunkards Wash Asset Sale”).  Cash proceeds from the sale of these properties were approximately $4 million (including a deposit of approximately $450,000 received in 2019).

On January 31, 2020, the Company completed the sale of its interest in properties located in the Overton field in East Texas (the “Overton Assets Sale”).  Cash proceeds from the sale of these properties were approximately $17 million (including a deposit of approximately $2 million received in 2019).  During the year ended December 31, 2019, the Company recorded a noncash impairment charge of approximately $13 million to reduce the carrying value of these assets to fair value.

On February 14, 2020, the Company completed the sale of its interest in properties located in the Personville field in East Texas (the “Personville Assets Sale”).  Cash proceeds from the sale of these properties were approximately $29 million (including a deposit of approximately $3 million received in 2019).  During the year ended December 31, 2019, the Company recorded a noncash impairment charge of approximately $72 million to reduce the carrying value of these assets to fair value.

On November 20, 2019, the Company signed an agreement to sell its building located in Oklahoma City, Oklahoma for an amended contract price of $21 million.  The sale is expected to close in the first quarter of 2020.  During the year ended December 31, 2019, the Company recorded a noncash impairment charge of approximately $5 million to reduce the carrying value of this asset to fair value.

The assets and liabilities associated with the sale of the Oklahoma office building, the Drunkards Wash Asset Sale, the Overton Assets Sale and the Personville Assets Sale are classified as held for sale on the consolidated balance sheet at December 31, 2019.

2019 Oil and Natural Gas and Midstream Capital Expenditures

During the year ended December 31, 2019, the Company had total capital expenditures, excluding acquisitions, of approximately $172 million, including approximately $63 million related to its oil and natural gas capital program and approximately $105 million related to Blue Mountain Midstream.

2020 Oil and Natural Gas and Midstream Capital Budget

For 2020, the Company estimates its total capital expenditures, excluding acquisitions, will be approximately $52 million, including approximately $25 million related to its oil and natural gas capital program and approximately $27 million related to Blue Mountain Midstream.  This estimate is under continuous review and subject to ongoing adjustments.

Financing Activities

Riviera Credit Facility

Riviera’s credit agreement provides for a senior secured reserve-based revolving loan facility (the “Riviera Credit Facility”).  On September 27, 2019, the Company entered into an amendment to the Riviera Credit Facility to, among other things, extend its maturity date to August 4, 2021.  The amendment resulted in a borrowing commitment reduction from $230 million to $90 million, primarily due to asset sales, with the next scheduled borrowing base redetermination to occur on April 1, 2020.

3


Table of Contents

Item 1.Business - Continued

Blue Mountain Midstream Credit Facility

Blue Mountain Midstream’s credit agreement provides for a senior secured revolving loan facility (the “Blue Mountain Midstream Credit Facility”).  On February 8, 2019, the borrowing commitment under the Blue Mountain Midstream Credit Facility was increased to $200 million.  The Blue Mountain Credit Facility together with the Riviera Credit Facility, are referred to as the “Credit Facilities.”

Cash Distributions

On November 21, 2019, the Board of Directors of the Company declared a cash distribution of $4.25 per share.  A cash distribution totaling approximately $249 million was paid on December 12, 2019, to shareholders of record as of the close of business on December 5, 2019.  In addition, approximately $11 million for potential future distributions was recorded in restricted cash at December 31, 2019.  In December 2019, distributions payable of approximately $2 million related to outstanding share-based compensation awards was also recorded.  These amounts are included in “other accrued liabilities” and “asset retirement obligations and other noncurrent liabilities” on the consolidated balance sheet at December 31, 2019.

Share Repurchase Program

On July 18, 2019, the Company’s Board of Directors increased the share repurchase authorization to $150 million of the Company’s outstanding shares of common stock.  During the year ended December 31, 2019, the Company repurchased an aggregate of 8,475,514 shares of common stock at an average price of $12.72 per share for a total cost of approximately $108 million.  Included in this number are private purchases of 2,380,425 shares of common stock purchased at a discount to market, at an average price of $10.91 for a total cost of approximately $26 million.  See Note 12 for additional information.  For the period from January 1, 2020 through February 21, 2020, the Company repurchased 171,107 shares of common stock at an average price of $7.84 for a total cost of approximately $1 million.  At February 21, 2020, approximately $23 million was available for share repurchases under the program.  Any share repurchases are subject to restrictions in the Riviera Credit Facility.

Tender Offer

On June 13, 2019, the Company’s Board of Directors announced the intention to commence a tender offer to purchase $40 million of the Company’s common stock.  In July 2019, upon the terms and subject to the conditions described in the Offer to Purchase dated June 18, 2019, the Company repurchased an aggregate of 2,666,666 shares of common stock at a price of $15.00 per share for a total cost of approximately $40 million (excluding expenses of approximately $440,000 related to the tender offer).

Commodity Derivatives

During the year ended December 31, 2019, the Company entered into commodity derivative contracts consisting of natural gas fixed price swaps and NGL fixed price swaps for 2019 and oil fixed price swaps and natural gas basis swaps for 2020.  In July 2019, in connection with the closing of the Michigan Assets Sale, the Company canceled its MichCon natural gas basis swaps for 2019 and 2020.

Oil Services Agreement

On July 17, 2019, a subsidiary of Blue Mountain Midstream entered into an agreement with Roan to gather Roan’s oil in the Merge/SCOOP/STACK play.  The agreement provides for a 10-year term covering an 89,000 net acre dedicated area in nine Townships in central Oklahoma.  Blue Mountain plans to construct an initial crude system consisting of approximately 28 miles of gathering pipelines with two downstream interconnections providing Roan with direct access to the Cushing market.  The Blue Mountain system will initially be capable of transporting up to 60,000 barrels per day of crude oil.  Services will commence in the first half of 2020.  On December 6, 2019, Roan became a wholly owned indirect subsidiary of Citizen Operating.

Water Services Agreement

On January 31, 2019, a subsidiary of Blue Mountain Midstream entered into an agreement with Roan to exclusively manage all of Roan’s water needs for its drilling and completion operations in Central Oklahoma.  Blue Mountain Midstream provides comprehensive water management services including pipeline gathering, disposal, treatment and redelivery of recycled water for re-use.  The agreement is supported by a 10-year acreage dedication in 67 Townships covering portions of seven Oklahoma Counties.  On December 6, 2019, Roan became a wholly owned indirect subsidiary of Citizen Operating.

4


Table of Contents

Item 1.Business - Continued

Upstream Reporting Segment Operating Regions

The Company’s upstream reporting segment properties are currently primarily located in two operating regions in the U.S.:

 

Mid-Continent, which includes properties in the Northwest STACK in northwestern Oklahoma and various other oil and natural gas producing properties throughout Oklahoma; and

 

North Louisiana, which includes oil and natural gas properties producing primarily from the Hosston, Cotton Valley Bossier and Smackover formations.

In the first quarter of 2020, the Company completed the sale of its interests in non-operated properties located in the Drunkards Wash field in the Uinta Basin, the Overton field in East Texas and the Personville field in East Texas.  These properties are included in “assets held for sale” on the consolidated balance sheet as of December 31, 2019.  Reserve information as of December 31, 2019, includes amounts associated with these properties.  See Note 4 for details of the Company’s divestitures.

During 2019, the Company divested all of its properties located in the Hugoton Basin and Michigan/Illinois operating regions.  During 2018, the Company divested all of its properties located in the Permian Basin operating region.  During 2017, the Company divested all of its properties located in the California and South Texas operating regions.  As a result of the Company’s strategic exit from California in 2017 (completed by the sale of its interest in properties located in the San Joaquin Basin and the Los Angeles Basin in California), the Company classified the results of operations and cash flows of its California properties as discontinued operations on its consolidated and combined financial statements.

East Texas

At December 31, 2019, the East Texas region consisted of properties located in east Texas primarily producing natural gas from the Travis Peak, Cotton Valley and Bossier formations at depths ranging from 7,000 feet to 12,500 feet.  The Company’s properties in this region are primarily mature, low-decline natural gas wells.  To more efficiently transport its natural gas in east Texas to market, the Company owns and operates a network of natural gas gathering systems comprised of approximately 590 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the area.

East Texas proved reserves represented approximately 40% of total proved reserves at December 31, 2019, all of which were classified as proved developed.  This region produced approximately 42 MMcfe/d of the Company’s 2019 average daily production.  During 2019, the Company invested approximately $1 million to develop the properties in this region.  As noted above, the majority of the Company’s properties located in East Texas are included in “assets held for sale” on the consolidated balance sheet as of December 31, 2019.

Mid-Continent

The Mid-Continent region consists of properties located in the Northwest STACK, as well as other Oklahoma properties.  The Company’s properties in this diverse region produce from both oil and natural gas reservoirs at depths ranging from 3,500 feet to 19,000 feet.

Mid-Continent proved reserves represented approximately 22% of total proved reserves at December 31, 2019, all of which were classified as proved developed.  This region produced approximately 36 MMcfe/d of the Company’s 2019 average daily production.  During 2019, the Company invested approximately $9 million to develop the properties in this region and approximately $43 million in exploration activity.

North Louisiana

The North Louisiana region consists of properties located in north Louisiana and primarily producing natural gas from the Hosston, Cotton Valley, Bossier and Smackover formations at depths ranging from 7,000 feet to 12,500 feet.

North Louisiana proved reserves represented approximately 25% of total proved reserves at December 31, 2019, of which 61% were classified as proved developed.  This region produced approximately 31 MMcfe/d of the Company’s 2019 average daily production.  During 2019, the Company invested approximately $10 million to develop the properties in this region.

5


Table of Contents

Item 1.Business - Continued

Uinta Basin

Uinta Basin proved reserves represented approximately 13% of total proved reserves at December 31, 2019, all of which were classified as proved developed.  The Uinta Basin region produced approximately 18 MMcfe/d of the Company’s 2019 average daily production.  During 2019, the Company invested approximately $1 million to develop the properties in the Uinta Basin region.  As noted above, these properties are included in “assets held for sale” on the consolidated balance sheet as of December 31, 2019.

Blue Mountain Segment

Blue Mountain Midstream currently provides natural gas and oil gathering, compression and processing and produced water services to producers in the Merge/SCOOP/Stack play in the Mid-Continent Region of Oklahoma.  Blue Mountain Midstream’s assets primarily consist of the state of the art 250 MMcf/d design-capacity Cryo 1 natural gas plant as well as a network of natural gas gathering pipelines and compressors and produced water services (collectively, the “Blue Mountain System”).  Blue Mountain Midstream’s gathering and processing agreements for its gathering and processing system include long-term, fee-based or percent of proceeds contracts.  Based on Blue Mountain Midstream’s contracts, it gathers natural gas and NGLs from producers that it then processes and delivers to third party customers.

Blue Mountain Midstream is aggressively pursuing growth to its midstream business primarily in Oklahoma.  Additions to the Blue Mountain System are continually underway adding low and high-pressure gathering pipelines and interconnections that will accommodate incremental volume throughput.  During 2019, Blue Mountain Midstream invested approximately $102 million for plant and pipeline construction activities primarily associated with the Blue Mountain System.

Drilling and Acreage

The following table sets forth the wells drilled during the years indicated:

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Gross wells:

 

 

 

 

 

 

 

 

 

 

 

 

Productive

 

 

61

 

 

 

52

 

 

 

90

 

Dry

 

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

52

 

 

 

90

 

Net development wells:

 

 

 

 

 

 

 

 

 

 

 

 

Productive

 

 

3

 

 

 

1

 

 

 

12

 

Dry

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

1

 

 

 

12

 

Net exploratory wells:

 

 

 

 

 

 

 

 

 

 

 

 

Productive

 

 

6

 

 

 

2

 

 

 

9

 

Dry

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

2

 

 

 

9

 

 

There were no lateral segments added to existing vertical wellbores during the years ended December 31, 2019, December 31, 2018, or December 31, 2017.  As of December 31, 2019, the Company had 14 gross (no net) wells in progress, and no wells were temporarily suspended.

This information should not be considered indicative of future performance, nor should it be assumed that there is necessarily any correlation between the number of productive wells drilled and the quantities or economic value of reserves found.  Productive wells are those that produce commercial quantities of oil, natural gas or NGL, regardless of whether they generate a reasonable rate of return.

Productive Wells

The following table sets forth information relating to the productive wells in which the Company owned a working interest as of December 31, 2019.  Productive wells consist of producing wells and wells capable of production, including wells

6


Table of Contents

Item 1.Business - Continued

awaiting pipeline or other connections to commence deliveries.  The number of wells below does not include approximately 2,331 gross productive wells in which the Company owns a royalty interest only.

 

 

Natural Gas Wells

 

 

Oil Wells

 

 

Total Wells (1)

 

 

 

Gross

 

 

Net

 

 

Gross

 

 

Net

 

 

Gross

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operated (2)

 

 

1,318

 

 

 

1,114

 

 

 

128

 

 

 

95

 

 

 

1,446

 

 

 

1,209

 

Nonoperated (3)

 

 

1,027

 

 

 

305

 

 

 

162

 

 

 

18

 

 

 

1,189

 

 

 

323

 

 

 

 

2,345

 

 

 

1,419

 

 

 

290

 

 

 

113

 

 

 

2,635

 

 

 

1,532

 

(1)

Includes 1,544 gross and 1,016 net wells divested in 2020.

(2)

The Company had 4 operated wells with multiple completions at December 31, 2019.

(3)

The Company had 1 nonoperated well with multiple completions at December 31, 2019.

Developed and Undeveloped Acreage

The following table sets forth information relating to leasehold acreage as of December 31, 2019:

 

 

Developed Acreage

 

 

Undeveloped Acreage

 

 

Total Acreage (1)

 

 

 

Gross

 

 

Net

 

 

Gross

 

 

Net

 

 

Gross

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasehold acreage

 

 

677

 

 

 

377

 

 

 

23

 

 

 

6

 

 

 

700

 

 

 

383

 

(1)

Includes approximately 264 gross and 156 net acres divested in 2020.

Future Acreage Expirations

The Company’s investment in developed and undeveloped acreage comprises numerous leases.  The terms and conditions under which the Company maintains exploration or production rights to the acreage are property-specific, contractually defined and vary significantly from property to property.  If production is not established or the Company takes no other action to extend the terms of the related leases, undeveloped acreage will expire.  The Company currently has no material undeveloped acreage due to expire during the next three years.

Programs are designed to ensure that the exploration potential of any property is fully evaluated before expiration.  In some instances, the Company may elect to relinquish acreage in advance of the contractual expiration date if the evaluation process is complete and there is not a business basis for extension.  In cases where additional time may be required to fully evaluate acreage, the Company has generally been successful in obtaining extensions.  The Company utilizes various methods to manage the expiration of leases, including drilling the acreage prior to lease expiration or extending lease terms.

Production, Price and Cost History

The Company’s natural gas production is primarily sold under short-term, market-sensitive contracts that are typically priced at the published natural gas index for the producing area plus or minus a differential attributable to the natural gas quality and the proximity to major consuming markets.  In certain circumstances, the Company has entered into natural gas processing contracts whereby the residue natural gas is sold under short-term contracts but the related NGL are sold under long-term contracts.  In all such cases, the residue natural gas and NGL are sold at market-sensitive index prices.  As of December 31, 2019, the Company had no natural gas or NGL delivery commitments under long-term contracts.

The Company’s natural gas production is sold to purchasers under spot price contracts, percentage-of-index contracts or percentage-of-proceeds contracts.  Under percentage-of-index contracts, the Company receives a percentage of the published index price for the producing area for its residue natural gas and NGL.  Under percentage-of-proceeds contracts, the Company receives a percentage of the resale price received by the purchaser for sales of residue natural gas and NGL

7


Table of Contents

Item 1.Business - Continued

recovered after transportation and processing of natural gas.  These purchasers sell the residue natural gas and NGL based primarily on spot market prices.

The Company’s natural gas is transported through its own and third-party gathering systems and pipelines.  The Company incurs processing, gathering and transportation expenses to move its natural gas from the wellhead to a purchaser-specified delivery point.  These expenses vary based on the volume, distance shipped and the fee charged by the third-party processor or transporter.

The Company’s oil production is primarily sold under short-term, market-sensitive contracts that are typically priced at a differential to the New York Mercantile Exchange (“NYMEX”) price or at purchaser-posted prices for the producing area.  As of December 31, 2019, the Company had no oil delivery commitments under long-term contracts.

The following table sets forth information regarding total production, average daily production, average prices and average costs for each of the years indicated:

 

 

Successor

 

 

Predecessor

 

 

 

Year Ended December 31,

 

 

Ten Months

Ended

December 31,

2017

 

 

Two Months

Ended

February 28,

2017

 

 

 

2019

 

 

2018

 

 

 

 

 

Total production:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

 

71,968

 

 

 

90,091

 

 

 

118,110

 

 

 

29,223

 

Oil (MBbls)

 

 

617

 

 

 

1,186

 

 

 

5,442

 

 

 

1,191

 

NGL (MBbls)

 

 

2,133

 

 

 

3,762

 

 

 

6,287

 

 

 

1,263

 

Total (MMcfe)

 

 

88,466

 

 

 

119,781

 

 

 

188,481

 

 

 

43,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average daily production:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf/d)

 

 

197

 

 

 

247

 

 

 

386

 

 

 

495

 

Oil (MBbls/d)

 

 

1.7

 

 

 

3.2

 

 

 

17.8

 

 

 

20.2

 

NGL (MBbls/d)

 

 

5.8

 

 

 

10.3

 

 

 

20.5

 

 

 

21.4

 

Total (MMcfe/d)

 

 

242

 

 

 

328

 

 

 

616

 

 

 

745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average prices (unhedged): (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (Mcf)

 

$

2.28

 

 

$

2.78

 

 

$

2.69

 

 

$

3.41

 

Oil (Bbl)

 

$

57.15

 

 

$

62.99

 

 

$

47.42

 

 

$

49.16

 

NGL (Bbl)

 

$

17.36

 

 

$

25.14

 

 

$

21.28

 

 

$

24.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average NYMEX prices:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMBtu)

 

$

2.63

 

 

$

3.09

 

 

$

3.00

 

 

$

3.66

 

Oil (Bbl)

 

$

57.03

 

 

$

64.77

 

 

$

50.53

 

 

$

53.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs per Mcfe of production:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

$

0.88

 

 

$

1.00

 

 

$

1.11

 

 

$

1.13

 

Transportation expenses

 

$

0.73

 

 

$

0.70

 

 

$

0.60

 

 

$

0.59

 

General and administrative expenses (2)

 

$

0.70

 

 

$

2.05

 

 

$

0.62

 

 

$

1.63

 

Depreciation, depletion and amortization

 

$

0.87

 

 

$

0.79

 

 

$

0.71

 

 

$

1.07

 

Taxes, other than income taxes

 

$

0.17

 

 

$

0.25

 

 

$

0.25

 

 

$

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total production – discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity method investment – Total (MMcfe) (3)

 

 

 

 

 

23,355

 

 

 

9,235

 

 

 

 

California – Total (MMcfe) (4)

 

 

 

 

 

 

 

 

4,326

 

 

 

1,755

 

(1)

Does not include the effect of gains (losses) on derivatives.

8


Table of Contents

Item 1.Business - Continued

(2)

General and administrative expenses for the years ended December 31, 2019, and December 31, 2018, the ten months ended December 31, 2017, and the two months ended February 28, 2017, include approximately $11 million, $132 million, $41 million and $50 million, respectively, of share-based compensation expenses and approximately $5 million, $27 million, $2 million and $787,000, respectively of severance costs.  General and administrative expenses for the year ended December 31, 2018, include approximately $8 million of Spin-off related costs.  In addition, general and administrative expenses for the two months ended February 28, 2017, include expenses incurred by LINN Energy associated with the operations of Berry Petroleum Company, LLC (“Berry”).  On February 28, 2017, LINN Energy and Berry emerged from bankruptcy as stand-alone, unaffiliated entities.

(3)

Represents the Company’s historical 50% equity interest in Roan.  Production of Roan for 2018 is for the period from January 1, 2018 through July 25, 2018.  Production of Roan for 2017 is for the period from September 1, 2017 through December 31, 2017.

(4)

Total production of the Company’s California properties reported as discontinued operations for 2017 is for the period from January 1, 2017 through July 31, 2017.

The following table sets forth information regarding production volumes for fields with greater than 15% of the Company’s total proved reserves for each of the years indicated:

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Total production:

 

 

 

 

 

 

 

 

 

 

 

 

Hugoton Basin Field:

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

*

 

 

 

33,510

 

 

 

34,363

 

Oil (MBbls)

 

*

 

 

 

24

 

 

 

45

 

NGL (MBbls)

 

*

 

 

 

2,581

 

 

 

2,968

 

Total (MMcfe)

 

*

 

 

 

49,137

 

 

 

52,437

 

East Texas Basin Field:

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

 

14,253

 

 

 

17,355

 

 

*

 

Oil (MBbls)

 

 

60

 

 

 

66

 

 

*

 

NGL (MBbls)

 

 

130

 

 

 

113

 

 

*

 

Total (MMcfe)

 

 

15,393

 

 

 

18,432

 

 

*

 

Sabine Uplift Field: (1)

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

 

10,584

 

 

*

 

 

*

 

Oil (MBbls)

 

 

35

 

 

*

 

 

*

 

NGL (MBbls)

 

 

42

 

 

*

 

 

*

 

Total (MMcfe)

 

 

11,047

 

 

*

 

 

*

 

Anadarko Basin Field: (2)

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

 

7,144

 

 

*

 

 

*

 

Oil (MBbls)

 

 

416

 

 

*

 

 

*

 

NGL (MBbls)

 

 

353

 

 

*

 

 

*

 

Total (MMcfe)

 

 

11,759

 

 

*

 

 

*

 

*

Represented less than 15% of the Company’s total proved reserves for the year indicated.  The Company sold its properties in the Hugoton Basin Field in November 2019.

(1)

North Louisiana.

(2)

Excludes royalties.

9


Table of Contents

Item 1.Business - Continued

Reserve Data

Proved Reserves

The following table sets forth estimated proved oil, natural gas and NGL reserves and the standardized measure of discounted future net cash flows at December 31, 2019, based on reserve reports prepared by independent engineers, DeGolyer and MacNaughton:

 

 

Proved Reserves

 

 

 

Natural Gas

(Bcf)

 

 

Oil

(MMBbls)

 

 

NGL

(MMBbls)

 

 

Total

(Bcfe)

 

Proved reserves:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proved developed reserves

 

 

250

 

 

 

2

 

 

 

3

 

 

 

284

 

Proved undeveloped reserves

 

 

31

 

 

 

 

 

 

 

 

 

32

 

Total proved reserves

 

 

281

 

 

 

2

 

 

 

3

 

 

 

316

 

 

Standardized measure of discounted future net cash flows (in millions) (1)

 

$

159

 

 

 

 

 

 

Representative NYMEX prices: (2)

 

 

 

 

Natural gas (MMBtu)

 

$

2.58

 

Oil (Bbl)

 

$

55.69

 

(1)

This measure is not intended to represent the market value of estimated reserves.

(2)

In accordance with Securities and Exchange Commission (“SEC”) regulations, reserves were estimated using the average price during the 12-month period, determined as an unweighted average of the first-day-of-the-month price for each month, excluding escalations based upon future conditions.  The average price used to estimate reserves is held constant over the life of the reserves.

During the year ended December 31, 2019, the Company’s PUDs decreased to 32 Bcfe from 65 Bcfe at December 31, 2018, representing a decrease of approximately 33 Bcfe.  The decrease was primarily due to divestitures.  Reserves classified as PUDs at December 31, 2018, that were converted to proved developed reserves during the year ended December 31, 2019, were not material.

Based on the December 31, 2019, reserve reports, the amounts of capital expenditures estimated to be incurred in 2020, 2021 and 2022 to develop the Company’s PUDs are approximately $5 million, $5 million and $5 million, respectively.  The amount and timing of these expenditures will depend on a number of factors, including actual drilling results, service costs and product prices.  None of the 32 Bcfe of PUDs at December 31, 2019, has remained undeveloped for five years or more.  All PUD properties are included in the Company’s current five-year development plan.

Reserve engineering is inherently a subjective process of estimating underground accumulations of oil, natural gas and NGL that cannot be measured exactly.  The accuracy of any reserve estimate is a function of the quality of available data and engineering and geological interpretation and judgment.  Accordingly, reserve estimates may vary from the quantities of oil, natural gas and NGL that are ultimately recovered.  Future prices received for production may vary, perhaps significantly, from the prices assumed for the purposes of estimating the standardized measure of discounted future net cash flows.  The standardized measure of discounted future net cash flows should not be construed as the market value of the reserves at the dates shown.  The 10% discount factor required to be used under the provisions of applicable accounting standards may not be the most appropriate discount factor based on interest rates in effect from time to time and risks associated with the Company or the oil and natural gas industry.  The standardized measure of discounted future net cash flows is materially affected by assumptions regarding the timing of future production, which may prove to be inaccurate.

The reserve estimates reported herein were prepared by independent engineers, DeGolyer and MacNaughton.  The process performed by the independent engineers to prepare reserve amounts included their estimation of reserve quantities, future production rates, future net revenue and the present value of such future net revenue, based in part on data provided by the Company.  When preparing the reserve estimates, the independent engineering firm did not independently verify the accuracy and completeness of the information and data furnished by the Company with respect to ownership interests, production, well test data, historical costs of operation and development, product prices, or any agreements relating to current and future operations of the properties and sales of production.  However, if in the course of their work, something came to their

10


Table of Contents

Item 1.Business - Continued

attention that brought into question the validity or sufficiency of any such information or data, they did not rely on such information or data until they had satisfactorily resolved their questions relating thereto.  The estimates of reserves conform to the guidelines of the SEC, including the criteria of “reasonable certainty,” as it pertains to expectations about the recoverability of reserves in future years.  The independent engineering firm also prepared estimates with respect to reserve categorization, using the definitions of proved reserves set forth in Regulation S-X Rule 4-10(a) and subsequent SEC staff interpretations and guidance.

The Company’s internal control over the preparation of reserve estimates is a process designed to provide reasonable assurance regarding the reliability of the Company’s reserve estimates in accordance with SEC regulations.  The preparation of reserve estimates was overseen by the Company’s Director of Reserves and Business Development who has a Master of Petroleum Engineering degree and 10 years of oil and natural gas industry experience.  The reserve estimates were reviewed and approved by the Company’s senior engineering staff and management, with final approval by its Executive Vice President and Chief Operating Officer.  For additional information regarding estimates of reserves, including the standardized measure of discounted future net cash flows, see “Supplemental Oil and Natural Gas Data (Unaudited)” in Item 8. “Financial Statements and Supplementary Data.”  The Company has not filed reserve estimates with any federal authority or agency, with the exception of the SEC.

Operational Overview

General

The Company generally seeks to be the operator of its properties so that it can develop drilling programs and optimization projects intended to not only replace production, but also to add value through reserve and production growth and future operational synergies.  Many of the Company’s wells are completed in multiple producing zones with commingled production and long economic lives.

Principal Customers

For the year ended December 31, 2019, sales to ONEOK Hydrocarbon, L.P. accounted for approximately 19% of the Company’s total revenues.  If the Company were to lose any one of its major oil and natural gas purchasers, the loss could temporarily cease or delay production and sale of its oil and natural gas in that particular purchaser’s service area.  If the Company were to lose a purchaser, it believes it could identify a substitute purchaser.  However, if one or more of the large purchasers ceased purchasing oil and natural gas altogether, it could have a detrimental effect on the oil and natural gas market in general and on the prices and volumes of oil, natural gas and NGL that the Company is able to sell.

Competition

The oil and natural gas industry is highly competitive.  The Company encounters strong competition from other independent operators in contracting for drilling and other related services, as well as hiring trained personnel.  The Company is also affected by competition for drilling rigs and the availability of related equipment.  In the past, the oil and natural gas industry has experienced shortages of drilling rigs, equipment, pipe and personnel, which has delayed development drilling and has caused significant price increases.  The Company is unable to predict when, or if, such shortages may occur or how they would affect its drilling program.

Operating Hazards and Insurance

The oil and natural gas industry involves a variety of operating hazards and risks that could result in substantial losses from, among other things, injury or loss of life, severe damage to or destruction of property, natural resources and equipment, pollution or other environmental damage, cleanup responsibilities, regulatory investigation and penalties, and suspension of operations.  The Company may be strictly liable for environmental damages caused by previous owners of property it purchases and leases.  As a result, the Company may incur substantial liabilities to third parties or governmental entities, the payment of which could reduce or eliminate funds otherwise available, or result in the loss of properties.  In addition, the Company participates in wells on a non-operated basis, and therefore may be limited in its ability to control the risks associated with the operation of such wells.

11


Table of Contents

Item 1.Business - Continued

In accordance with customary industry practices, the Company maintains insurance against some, but not all, potential losses.  The Company cannot provide assurance that any insurance it obtains will be adequate to cover any losses or liabilities.  The Company has elected to self-insure for certain items for which it has determined that the cost of available insurance is excessive relative to the risks presented.  In addition, pollution and environmental risks generally are not fully insurable.  The occurrence of an event not fully covered by insurance could have a material adverse effect on the Company’s financial position, results of operations and cash flows.  For more information about potential risks that could affect the Company, see Item 1A. “Risk Factors.”

Title to Properties

Prior to the commencement of drilling operations, the Company conducts a title examination and performs curative work with respect to significant defects.  To the extent title opinions or other investigations reflect title defects on those properties, the Company is typically responsible for curing any title defects at its expense prior to commencing drilling operations.  Prior to completing an acquisition of producing leases, the Company performs title reviews on the most significant leases and, depending on the materiality of properties, the Company may obtain a title opinion or review previously obtained title opinions.  As a result, the Company has obtained title opinions on a significant portion of its properties and believes that it has satisfactory title to its producing properties in accordance with standards generally accepted in the industry.

Seasonality and Cyclicality

Seasonal weather conditions and lease stipulations can limit the drilling and producing activities and other operations in regions of the U.S. in which the Company operates.  These seasonal conditions can pose challenges for meeting the well drilling objectives and increase competition for equipment, supplies and personnel, which could lead to shortages and increase costs or delay operations.  For example, the Company’s operations may be impacted by ice and snow in the winter and by electrical storms and high temperatures in the spring and summer, as well as by wild fires in the fall.

The demand for natural gas typically decreases during the summer months and increases during the winter months.  Seasonal anomalies sometimes lessen this fluctuation.  In addition, certain natural gas consumers utilize natural gas storage facilities and purchase some of their anticipated winter requirements during the summer, which can also lessen seasonal demand fluctuations.

Environmental Matters and Regulation

The Company’s operations are subject to the same stringent federal, state and local laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection as other companies in the oil and natural gas industry.  These laws and regulations may:

 

require the acquisition of various permits before drilling commences;

 

require notice to stakeholders of proposed and ongoing operations;

 

require the installation of expensive pollution control equipment;

 

restrict the types, quantities and concentration of various substances that can be released into the environment in connection with drilling and production activities;

 

limit or prohibit drilling activities on lands located within wilderness, wetlands, areas inhabited by endangered species and other protected areas;

 

require remedial measures to prevent pollution from former operations, such as pit closure, reclamation and plugging and abandonment of wells;

 

require, with little to no notice, the cessation of fluid disposal operations into disposal wells owned or controlled by the Company, or other disposal wells that the Company utilizes, which could in turn cause an unexpected, significant increase in the price to dispose of such fluids and/or cause the Company to shut in proximate producing wells while awaiting disposal capacity;