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Subsequent Event (Notes)
9 Months Ended
Sep. 30, 2016
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
Subsequent Events
Asset Disposition
On October 14, 2016, the Company sold approximately 30,000 net acres of non-strategic leasehold located in the SCOOP play in Oklahoma for cash proceeds totaling $295.6 million. The leasehold is located primarily in the eastern portion of the SCOOP play and includes producing properties with production totaling approximately 700 barrels of oil equivalent per day. In connection with the transaction, the Company expects to recognize a pre-tax gain of approximately $200 million, which will be reflected in fourth quarter 2016 results. The disposed properties represented an immaterial portion of the Company’s proved reserves.
Senior Note Redemptions
On October 4, 2016, the Company announced it will redeem all of its outstanding 7.375% Senior Notes due 2020 (the “2020 Notes”) and 7.125% Senior Notes due 2021 (the “2021 Notes”) on November 10, 2016.
The redemption price for the 2020 Notes will be equal to 102.458% of the principal amount plus accrued and unpaid interest to the redemption date of November 10, 2016 in accordance with the terms of the 2020 Notes and the related indenture under which the 2020 Notes were issued. The aggregate principal amount of the 2020 Notes outstanding is $200 million.
The redemption price for the 2021 Notes will be equal to 103.563% of the principal amount plus accrued and unpaid interest to the redemption date of November 10, 2016 in accordance with the terms of the 2021 Notes and the related indenture under which the 2021 Notes were issued. The aggregate principal amount of the 2021 Notes outstanding is $400 million.
The aggregate of the principal amounts, redemption premiums, and accrued interest payable upon redemption of the 2020 Notes and 2021 Notes is expected to total approximately $624 million. The Company expects to fund the redemptions using borrowings under its revolving credit facility. Such borrowings will serve to offset the Company's previous reduction of outstanding credit facility borrowings which used proceeds totaling approximately $630 million from asset dispositions completed in 2016 through October 31, 2016, resulting in no net increase in year to date debt associated with the redemptions.
The Company expects to record a pre-tax loss on extinguishment of debt related to the redemptions of approximately $26 million, which will be reflected in fourth quarter 2016 results and includes the call premiums and write-off of deferred financing costs and unaccreted debt discounts associated with the notes.