Virginia | 23-1184320 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Name of exchange on which registered | |
Common Stock, $0.01 Par Value | NASDAQ Global Select Market |
Large accelerated filer | o | Accelerated filer | o | Non-accelerated filer | o | Smaller reporting company | ý |
Page | ||
Forward-Looking Statements | ||
Glossary of Certain Industry Terminology | ||
Part I | ||
Item | ||
1. | Business | |
1A. | Risk Factors | |
1B. | Unresolved Staff Comments | |
2. | Properties | |
3. | Legal Proceedings | |
4. | Mine Safety Disclosures | |
Part II | ||
5. | Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities | |
6. | Selected Financial Data | |
7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations: | |
Overview and Executive Summary | ||
Key Developments | ||
Financial Condition | ||
Results of Operations | ||
Off-Balance Sheet Arrangements | ||
Contractual Obligations | ||
Critical Accounting Estimates | ||
8. | Financial Statements and Supplementary Data | |
9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
9A. | Controls and Procedures | |
9B. | Other Information | |
Part III | ||
10. | Directors, Executive Officers and Corporate Governance | |
11. | Executive Compensation | |
12. | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters | |
13. | Certain Relationships and Related Transactions, and Director Independence | |
14. | Principal Accountant Fees and Services | |
Part IV | ||
15. | Exhibits and Financial Statement Schedules | |
Signatures |
• | potential adverse effects of the completed Chapter 11, or bankruptcy, proceedings on our liquidity, results of operations, brand, |
• | the ability to operate our business following emergence from bankruptcy; |
• | our ability to satisfy our short-term and long-term liquidity needs, including our inability to generate sufficient cash |
• | negative events or publicity adversely affecting our ability to maintain our relationships with our suppliers, service |
• | our new capital structure and the adoption of fresh start accounting, including the risk that assumptions and factors |
• | plans, objectives, expectations and intentions contained in this report that are not historical; |
• | our ability to execute our business plan in the current commodity price environment; |
• | the sustained decline in and volatility of commodity prices for oil, natural gas liquids, or NGLs, and natural gas; |
• | our ability to develop, explore for, acquire and replace oil and natural gas reserves and sustain production; |
• | our ability to generate profits or achieve targeted reserves in our development and exploratory drilling and well |
• | any impairments, write-downs or write-offs of our reserves or assets; |
• | the projected demand for and supply of oil, natural gas liquids and natural gas; |
• | our ability to contract for drilling rigs, frac crews, supplies and services at reasonable costs; |
• | our ability to obtain adequate pipeline transportation capacity for our oil and gas production at reasonable cost and to |
• | the uncertainties inherent in projecting future rates of production for our wells and the extent to which actual |
• | drilling and operating risks; |
• | concentration of assets; |
• | our ability to compete effectively against other oil and gas companies; |
• | leasehold terms expiring before production can be established and our ability to replace expired leases; |
• | costs or results of any strategic alternatives |
• | environmental obligations, costs and liabilities that are not covered by an effective indemnity or insurance; |
• | the timing of receipt of necessary regulatory permits; |
• | the effect of commodity and financial derivative arrangements; |
• | the occurrence of unusual weather or operating conditions, including force majeure events; |
• | our ability to retain or attract senior management and key employees; |
• | counterparty risk related to the ability of these parties to meet their future obligations; |
• | compliance with and changes in governmental regulations or enforcement practices, especially with respect to |
• | physical, electronic and cybersecurity breaches; |
• | uncertainties relating to general domestic and international economic and political conditions; and |
• | other factors set forth in our periodic filings with the Securities and Exchange Commission, including the risks set |
Item 1 | Business |
• | key suppliers could terminate their relationship or require financial assurances or enhanced performance; |
• | our ability to renew existing contracts and compete for new business may be adversely affected; |
• | our ability to attract, motivate and/or retain key executives and employees may be adversely affected; |
• | employees may be distracted from performance of their duties or more easily attracted to other employment opportunities; |
• | our ability to attract and retain customers may be negatively impacted; |
• | we may experience challenges to the Plan; and |
• | we may incur legal costs associated with addressing claims under the Plan. |
• | domestic and foreign supplies of crude oil, NGLs and natural gas; |
• | domestic and foreign consumer demand for crude oil, NGLs and natural gas; |
• | political and economic conditions in oil or gas producing regions; |
• | the ability of the members of the Organization of Petroleum Exporting Countries and other exporting nations to agree upon and maintain production constraints and oil price controls; |
• | overall domestic and foreign economic conditions; |
• | prices and availability of, and demand for, alternative fuels; |
• | technological advances affecting energy consumption; |
• | speculation by investors in oil and gas; |
• | the availability, proximity and capacity of gathering, processing, refining and transportation facilities; |
• | weather conditions; and |
• | domestic and foreign governmental relations, regulation and taxation. |
• | unexpected drilling conditions; |
• | elevated pressure or irregularities in geologic formations; |
• | title problems; |
• | equipment failures or accidents; |
• | costs, shortages or delays in the availability of drilling rigs, crews, equipment and materials; |
• | shortages in experienced labor; |
• | surface access restrictions; |
• | failure to secure or delays in securing necessary regulatory approvals and permits, including delays due to potential hydraulic fracturing regulations; |
• | fires, explosions, blow-outs and surface cratering; and |
• | adverse weather conditions. |
• | the results of our exploration efforts and the acquisition, review and analysis of the seismic data; |
• | the availability of sufficient capital resources to us and the other participants for the drilling of the prospects; |
• | the approval of the prospects by the other participants after additional data has been compiled; |
• | economic and industry conditions at the time of drilling, including prevailing and anticipated prices for oil and gas and the availability and prices of drilling rigs and crews, frac crews, and related equipment and material; and |
• | the availability of leases and permits on reasonable terms for the prospects. |
• | authorize our Board to issue preferred stock and to determine the price and other terms, including preferences and voting rights, of those shares without stockholder approval; |
• | establish advance notice procedures for nominating directors or presenting matters at stockholder meetings; and |
• | limit the persons who may call special meetings of stockholders. |
• | fires, explosions, blowouts, cratering and casing collapses; |
• | formations with abnormal pressures; |
• | pipeline ruptures or spills; |
• | uncontrollable flows of oil, natural gas or well fluids; |
• | migration of fracturing fluids into surrounding groundwater; |
• | spills or releases of fracturing fluids including from trucks sometimes used to deliver these materials; |
• | spills or releases of brine or other produced water that may go off-site; |
• | subsurface conditions that prevent us from (i) stimulating the planned number of stages, (ii) accessing the entirety of the wellbore with our tools during completion or (iii) removing all fracturing-related materials from the wellbore to allow production to begin; |
• | environmental hazards such as natural gas leaks, oil or produced water spills and discharges of toxic gases; and |
• | natural disasters and other adverse weather conditions, terrorism, vandalism and physical, electronic and cyber security breaches. |
• | delays imposed by or resulting from compliance with environmental and other governmental or regulatory requirements, which may include limitations on hydraulic fracturing or the discharge of GHGs; |
• | the need to shut down, abandon and relocate drilling operations; |
• | the need to sample, test and monitor drinking water in particular areas and to provide filtration or other drinking water supplies to users of water supplies that may have been impacted or threatened by potential contamination from fracturing fluids; |
• | the need to modify drill sites to ensure there are no spills or releases off-site and to investigate and/or remediate any spills or releases that might have occurred; or |
• | suspension of our operations. |
• | our production is less than expected; |
• | there is a widening of price basis differentials between delivery points for our production and the delivery point assumed in the hedge arrangement; |
• | the counterparties to our futures contracts fail to perform under the contracts; or |
• | a sudden, unexpected event materially impacts crude oil, NGL or natural gas prices. |
Item 1B | Unresolved Staff Comments |
Item 2 | Properties |
Crude Oil | NGLs | Natural Gas | Oil Equivalents | Standardized Measure | PV10 1 | ||||||||||||||
(MMBbl) | (MMBbl) | (Bcf) | (MMBOE) | $ in millions | $ in millions | ||||||||||||||
2016 (Successor) | |||||||||||||||||||
Developed | |||||||||||||||||||
Producing | 17.5 | 4.3 | 24.8 | 25.9 | |||||||||||||||
Non-producing | 0.2 | 0.1 | 0.1 | 0.3 | |||||||||||||||
17.7 | 4.4 | 24.9 | 26.2 | ||||||||||||||||
Undeveloped | 18.9 | 2.4 | 11.8 | 23.3 | |||||||||||||||
36.6 | 6.8 | 36.7 | 49.5 | $ | 317.5 | $ | 317.5 | ||||||||||||
Price measurement used 2 | $42.75/Bbl | $12.33/Bbl | $2.48/MMBtu | ||||||||||||||||
2015 (Predecessor) | |||||||||||||||||||
Developed | |||||||||||||||||||
Producing | 19.6 | 6.1 | 36.8 | 31.8 | |||||||||||||||
Non-producing | 0.6 | 0.1 | 0.4 | 0.8 | |||||||||||||||
20.2 | 6.2 | 37.2 | 32.6 | ||||||||||||||||
Undeveloped | 9.3 | 1.0 | 5.0 | 11.1 | |||||||||||||||
29.5 | 7.2 | 42.2 | 43.7 | $ | 323.3 | $ | 323.3 | ||||||||||||
Price measurement used 2 | $50.28/Bbl | $14.44/Bbl | $2.70/MMBtu | ||||||||||||||||
2014 (Predecessor) | |||||||||||||||||||
Developed | |||||||||||||||||||
Producing | 21.8 | 7.4 | 77.9 | 42.1 | |||||||||||||||
Non-producing | 0.3 | 0.7 | 16.6 | 3.8 | |||||||||||||||
22.1 | 8.1 | 94.5 | 45.9 | ||||||||||||||||
Undeveloped | 47.0 | 11.1 | 64.7 | 68.9 | |||||||||||||||
69.0 | 19.2 | 159.2 | 114.8 | $ | 1,182.4 | $ | 1,472.5 | ||||||||||||
Price measurement used 2 | $94.99/Bbl | $25.49/Bbl | $4.35/MMBtu |
Proved | % of Total Proved | % Proved | |||||||
Region | Reserves | Reserves | Developed | ||||||
(MMBOE) | |||||||||
South Texas | 47.0 | 95 | % | 51 | % | ||||
Mid-Continent | 2.5 | 5 | % | 100 | % | ||||
49.5 | 100 | % | 53 | % |
Crude Oil | NGLs | Natural Gas | Oil Equivalents | ||||||||
(MMBbl) | (MMBbl) | (Bcf) | (MMBOE) | ||||||||
Proved undeveloped reserves at beginning of year (Predecessor) | 9.3 | 1.0 | 5.0 | 11.1 | |||||||
Revisions of previous estimates | (1.3 | ) | — | — | (1.3 | ) | |||||
Extensions and discoveries | 11.5 | 1.5 | 7.2 | 14.2 | |||||||
Conversion to proved developed reserves | (0.6 | ) | (0.1 | ) | (0.4 | ) | (0.7 | ) | |||
Proved undeveloped reserves at end of year (Successor) | 18.9 | 2.4 | 11.8 | 23.3 |
Total Production | |||||||||||||
Successor | Predecessor | ||||||||||||
September 13 Through | January 1 Through | ||||||||||||
December 31, | September 12, | Year Ended December 31, | |||||||||||
Region | 2016 | 2016 | 2015 | 2014 | |||||||||
(MBOE) | (MBOE) | ||||||||||||
South Texas | 937 | 3,071 | 6,903 | 5,817 | |||||||||
Mid-Continent and other 1 | 103 | 276 | 460 | 743 | |||||||||
Divested properties 2 | — | — | 560 | 1,375 | |||||||||
1,040 | 3,346 | 7,923 | 7,934 | ||||||||||
Average Daily Production | |||||||||||||
Successor | Predecessor | ||||||||||||
September 13 Through | January 1 Through | ||||||||||||
December 31, | September 12, | Year Ended December 31, | |||||||||||
Region | 2016 | 2016 | 2015 | 2014 | |||||||||
(BOEPD) | (BOEPD) | ||||||||||||
South Texas | 8,518 | 11,996 | 18,912 | 15,937 | |||||||||
Mid-Continent and other 1 | 936 | 1,082 | 1,260 | 2,036 | |||||||||
Divested properties 2 | — | — | 2,151 | 3,765 | |||||||||
9,454 | 13,078 | 22,323 | 21,738 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Average prices: | ||||||||||||||||
Crude oil ($ per Bbl) | $ | 46.63 | $ | 35.21 | $ | 44.81 | $ | 90.50 | ||||||||
NGLs ($ per Bbl) | $ | 16.51 | $ | 11.38 | $ | 12.24 | $ | 31.14 | ||||||||
Natural gas ($ per Mcf) | $ | 2.81 | $ | 2.06 | $ | 2.62 | $ | 4.44 | ||||||||
Aggregate ($ per BOE) | $ | 37.17 | $ | 27.99 | $ | 33.19 | $ | 64.64 | ||||||||
Average production and lifting cost ($ per BOE): | ||||||||||||||||
Lease operating | $ | 5.13 | $ | 4.67 | $ | 5.36 | $ | 6.09 | ||||||||
Gathering processing and transportation | 2.93 | 3.96 | 3.01 | 2.31 | ||||||||||||
$ | 8.06 | $ | 8.63 | $ | 8.37 | $ | 8.40 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Production: 1 | ||||||||||||||||
Crude oil (MBbl) | 695 | 2,265 | 4,733 | 4,369 | ||||||||||||
NGLs (MBbl) | 130 | 449 | 1,169 | 771 | ||||||||||||
Natural gas (MMcf) | 674 | 2,141 | 6,011 | 4,063 | ||||||||||||
Total (MBOE) | 937 | 3,071 | 6,903 | 5,817 | ||||||||||||
Percent of total company production | 90 | % | 92 | % | 87 | % | 73 | % | ||||||||
Average prices: | ||||||||||||||||
Crude oil ($ per Bbl) | $ | 46.73 | $ | 35.24 | $ | 44.73 | $ | 90.70 | ||||||||
NGLs ($ per Bbl) | $ | 14.82 | $ | 10.34 | $ | 11.03 | $ | 25.24 | ||||||||
Natural gas ($ per Mcf) | $ | 2.79 | $ | 2.05 | $ | 2.64 | $ | 4.20 | ||||||||
Aggregate ($ per BOE) | $ | 38.71 | $ | 28.94 | $ | 34.84 | $ | 74.40 | ||||||||
Average production and lifting cost ($ per BOE): 2 | ||||||||||||||||
Lease operating | $ | 5.39 | $ | 4.58 | $ | 5.04 | $ | 5.36 | ||||||||
Gathering processing and transportation | 2.58 | 3.50 | 2.66 | 1.76 | ||||||||||||
$ | 7.97 | $ | 8.08 | $ | 7.70 | $ | 7.12 |
2016 | 2015 | 2014 | |||||||||||||||
Gross | Net | Gross | Net | Gross | Net | ||||||||||||
Development | |||||||||||||||||
Productive | 5 | 2.9 | 61 | 38.6 | 83 | 50.8 | |||||||||||
Dry well | — | — | — | — | 1 | 0.8 | |||||||||||
Under evaluation | — | — | — | — | — | — | |||||||||||
Total | 5 | 2.9 | 61 | 38.6 | 84 | 51.6 | |||||||||||
Wells in progress at end of year1 | 5 | 2.6 | 4 | 2.3 | 28 | 14.3 |
Primarily Oil | Primarily Natural Gas | Total | ||||||||||||||||
Region | Gross | Net | Gross | Net | Gross | Net | ||||||||||||
South Texas 1 | 334 | 212.2 | — | — | 334 | 212.2 | ||||||||||||
Mid-Continent | 2 | 1.6 | 95 | 41.1 | 97 | 42.7 | ||||||||||||
336 | 213.8 | 95 | 41.1 | 431 | 254.9 |
Developed | Undeveloped | Total | ||||||||||||||||
Region | Gross | Net | Gross | Net | Gross | Net | ||||||||||||
South Texas | 74.5 | 48.2 | 27.5 | 22.3 | 102.0 | 70.5 | ||||||||||||
Mid-Continent and other | 15.6 | 7.4 | 12.1 | 11.9 | 27.7 | 19.3 | ||||||||||||
90.1 | 55.6 | 39.6 | 34.2 | 129.7 | 89.8 |
Region | 2017 | 2018 | 2019 | Thereafter | ||||
South Texas | 17.7 | 3.5 | 0.0 | 1.1 | ||||
Mid-Continent and other | 2.5 | 0.0 | 9.4 | 0.0 |
Item 3 | Legal Proceedings |
Item 4 | Mine Safety Disclosures |
Item 5 | Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities |
Sales Price | ||||||||||
Quarter Ended | High | Low | ||||||||
December 31, 2016 | $ | 50.00 | $ | 34.75 |
Item 6 | Selected Financial Data |
Successor | Predecessor | |||||||||||||||||||||||
September 13 | January 1 | |||||||||||||||||||||||
Through | Through | |||||||||||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||
Statements of Operations and Other Data: | ||||||||||||||||||||||||
Revenues | $ | 39,003 | $ | 94,310 | $ | 305,298 | $ | 636,773 | $ | 431,468 | $ | 317,149 | ||||||||||||
Operating income (loss )1 | $ | 11,391 | $ | (20,856 | ) | $ | (1,565,041 | ) | $ | (615,985 | ) | $ | (92,046 | ) | $ | (147,091 | ) | |||||||
Net income (loss) 2 | $ | (5,296 | ) | $ | 1,054,602 | $ | (1,582,961 | ) | $ | (409,592 | ) | $ | (143,070 | ) | $ | (104,589 | ) | |||||||
Preferred stock dividends 3 | $ | — | $ | 5,972 | $ | 22,789 | $ | 17,148 | $ | 6,900 | $ | 1,687 | ||||||||||||
Income (loss) attributable to common shareholders 2 | $ | (5,296 | ) | $ | 1,048,630 | $ | (1,605,750 | ) | $ | (430,996 | ) | $ | (149,970 | ) | $ | (106,276 | ) | |||||||
Income (loss) per common share, basic | $ | (0.35 | ) | $ | 11.91 | $ | (21.81 | ) | $ | (6.26 | ) | $ | (2.41 | ) | $ | (2.22 | ) | |||||||
Income (loss) per common share, diluted | $ | (0.35 | ) | $ | 8.50 | $ | (21.81 | ) | $ | (6.26 | ) | $ | (2.41 | ) | $ | (2.22 | ) | |||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||
Basic | 14,992 | 88,013 | 73,639 | 68,887 | 62,335 | 47,919 | ||||||||||||||||||
Diluted | 14,992 | 124,087 | 73,639 | 68,887 | 62,335 | 47,919 | ||||||||||||||||||
Dividends declared per share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.113 | ||||||||||||
Cash provided by operating activities | $ | 30,774 | $ | 30,247 | $ | 169,303 | $ | 282,724 | $ | 261,512 | $ | 241,458 | ||||||||||||
Cash paid for capital expenditures | $ | 4,812 | $ | 15,359 | $ | 364,844 | $ | 774,139 | $ | 504,203 | $ | 370,907 | ||||||||||||
Total production (MBOE) | 1,040 | 3,346 | 7,923 | 7,934 | 6,824 | 6,513 | ||||||||||||||||||
December 31, | September 12, | December 31, | ||||||||||||||||||||||
Balance Sheet and Other Data: | 2016 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||
Property and equipment, net | $ | 247,473 | $ | 253,510 | $ | 344,395 | $ | 1,825,098 | $ | 2,237,304 | $ | 1,723,359 | ||||||||||||
Total assets | $ | 291,686 | $ | 333,974 | $ | 517,725 | $ | 2,201,810 | $ | 2,472,830 | $ | 1,831,733 | ||||||||||||
Total debt | $ | 25,000 | $ | 75,350 | $ | 1,224,383 | $ | 1,085,429 | $ | 1,252,808 | $ | 583,503 | ||||||||||||
Shareholders’ equity (deficit) | $ | 185,548 | $ | 190,895 | $ | (915,121 | ) | $ | 675,817 | $ | 788,804 | $ | 895,116 | |||||||||||
Actual shares outstanding at period-end | 14,992 | 14,992 | 81,253 | 71,569 | 65,307 | 55,117 | ||||||||||||||||||
Proved reserves as of December 31,(MMBOE) | 49 | 44 | 115 | 136 | 113 |
2 | Net income and Income attributable to common shareholders for the period of January 1 through September 12, 2016 includes reorganization items attributable to our bankruptcy proceedings of $1.145 billion. |
3 | Excludes inducements paid for the conversion of preferred stock of $4.3 million in 2014. |
Item 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Total production (MBOE) | 1,040 | 3,346 | 7,923 | 7,934 | ||||||||||||
Average daily production (BOEPD) | 9,454 | 13,081 | 22,323 | 21,738 | ||||||||||||
Crude oil production (MBbl) | 711 | 2,311 | 4,923 | 4,644 | ||||||||||||
Crude oil production as a percent of total | 68 | % | 69 | % | 62 | % | 59 | % | ||||||||
Product revenues | $ | 38,654 | $ | 93,649 | $ | 262,980 | $ | 512,882 | ||||||||
Crude oil revenues | $ | 33,157 | $ | 81,377 | $ | 220,596 | $ | 420,286 | ||||||||
Crude oil revenues as a percent of total | 86 | % | 87 | % | 84 | % | 82 | % | ||||||||
Realized prices: | ||||||||||||||||
Crude oil ($/Bbl) | $ | 46.63 | $ | 35.21 | $ | 44.81 | $ | 90.50 | ||||||||
NGL ($/Bbl) | $ | 16.51 | $ | 11.38 | $ | 12.24 | $ | 31.14 | ||||||||
Natural gas ($/Mcf) | $ | 2.81 | $ | 2.06 | $ | 2.62 | $ | 4.44 | ||||||||
Aggregate ($/BOE) | $ | 37.17 | $ | 27.99 | $ | 33.19 | $ | 64.64 | ||||||||
Production and lifting costs ($/BOE): | ||||||||||||||||
Lease operating | $ | 5.13 | $ | 4.67 | $ | 5.36 | $ | 6.09 | ||||||||
Gathering, processing and transportation | $ | 2.93 | $ | 3.96 | $ | 3.01 | $ | 2.31 | ||||||||
Production and ad valorem taxes ($/BOE) | $ | 2.40 | $ | 1.04 | $ | 2.06 | $ | 3.53 | ||||||||
General and administrative ($/BOE) 1 | $ | 4.89 | $ | 4.66 | $ | 4.08 | $ | 4.93 | ||||||||
Depreciation, depletion and amortization ($/BOE) | $ | 11.20 | $ | 10.04 | $ | 42.22 | $ | 37.85 | ||||||||
Cash provided by operating activities | $ | 30,774 | $ | 30,247 | $ | 169,303 | $ | 282,724 | ||||||||
Cash paid for capital expenditures | $ | 4,812 | $ | 15,359 | $ | 364,844 | $ | 774,139 | ||||||||
Cash and cash equivalents at end of period | $ | 6,761 | $ | 31,414 | $ | 11,955 | $ | 6,252 | ||||||||
Debt outstanding, net of discount, at end of period | $ | 25,000 | $ | 75,350 | $ | 1,245,000 | $ | 1,110,000 | ||||||||
Credit available under credit facility at end of period 2 | $ | 102,232 | $ | 51,883 | $ | — | $ | 413,196 | ||||||||
Proved reserves at the end of the period (MMBOE) | 49 | 44 | 115 | |||||||||||||
Net development wells drilled and completed | — | 2.9 | 38.6 | 51.6 |
2 | As of December 31, 2015, we were unable to draw on our pre-petition credit facility, or RBL. |
• | the approximately $1,122 million of indebtedness, including accrued interest, attributable to our Senior Notes and certain other unsecured claims were exchanged for 6,069,074 shares representing 41 percent of the New Common Stock; |
• | a total of $50 million of proceeds were received on the Effective Date from the Rights Offering resulting in the issuance of 7,633,588 shares representing 51 percent of New Common Stock to holders of claims arising under the Senior Notes, certain holders of general unsecured claims and to the Backstop Parties; |
• | the Backstop Parties received a backstop fee comprised of 472,902 shares representing three percent of New Common Stock; |
• | an additional 816,454 shares representing five percent of New Common Stock were authorized for disputed general unsecured claims and non-accredited investor holders of the Senior Notes and subsequently, 749,600 shares of New Common Stock were reserved for issuance under a new management incentive plan; |
• | on the Effective Date, we entered into a shareholders agreement and a registration rights agreement and amended our articles of incorporation and bylaws for the authorization of the New Common Stock and to provide customary registration rights thereunder, among other corporate governance actions; |
• | holders of claims arising under the RBL were paid in full from cash on hand, $75.4 million from borrowings under the Credit Facility (see below, the discussion of “Liquidity” that follows and Note 11 to the Consolidated Financial Statements) and proceeds from the Rights Offering; |
• | the debtor-in-possession credit facility, or DIP Facility, under which there were no outstanding borrowings at any time from the Petition Date through the Effective Date, was canceled and less than $0.1 million in fees were paid in full in cash; |
• | certain other priority claims were paid in full in cash, reinstated or otherwise treated in a manner acceptable to the creditor claim-holders; |
• | a cash reserve of $2.7 million was established for certain other secured, priority or convenience claims pending resolution as of the Effective Date; |
• | an escrow account for professional service fees attributable to our advisers and those of the UCC was funded by us with cash of $14.6 million, and we paid $7.2 million for professional fees and expenses on behalf of the RBL Lenders, the Ad Hoc Committee and the indenture trustee for the Senior Notes; |
• | on the Effective Date, our previous interim Chief Executive Officer, Edward B. Cloues, resigned and each member of our board of directors resigned and was replaced by new board members: Darin G. Holderness, CPA, Marc McCarthy and Harry Quarls and, in October 2016 by Jerry R. Schuyler; |
• | our Predecessor preferred stock and common stock was canceled, extinguished and discharged; and |
• | all of our Predecessor share-based compensation plans and supplemental employee retirement plan, or the SERP, entitlements were canceled. |
Borrowings Outstanding | ||||||||||
Weighted- Average | Maximum | Weighted- Average Rate | ||||||||
Successor period for the three months ended December 31, 2016 | $ | 39,335 | $ | 54,350 | 3.7430 | % | ||||
Successor period from September 12, 2016 to December 31, 2016 | $ | 44,616 | $ | 75,350 | 3.8940 | % |
Successor | Predecessor | |||||||||||
September 13 | January 1 | |||||||||||
Through | Through | Year Ended | ||||||||||
December 31, | September 12, | December 31, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Cash flows from operating activities | ||||||||||||
Operating cash flows, net of working capital changes | $ | 31,068 | $ | 34,731 | $ | 130,293 | ||||||
Commodity derivative settlements received, net: | ||||||||||||
Crude oil | 384 | 48,008 | 137,488 | |||||||||
Natural gas | — | — | 681 | |||||||||
Interest payments, net of amounts capitalized | (598 | ) | (4,148 | ) | (86,226 | ) | ||||||
Income taxes received, net | 7 | 35 | 714 | |||||||||
Drilling rig termination costs paid | — | — | (6,636 | ) | ||||||||
Strategic, financial and bankruptcy-related advisory fees and costs paid | (648 | ) | (46,606 | ) | (3,693 | ) | ||||||
Return of remaining professional fee escrow | 756 | — | — | |||||||||
Restructuring and exit costs paid | (195 | ) | (1,773 | ) | (3,318 | ) | ||||||
Net cash provided by operating activities | 30,774 | 30,247 | 169,303 | |||||||||
Cash flows from investing activities | ||||||||||||
Capital expenditures | (4,812 | ) | (15,359 | ) | (364,844 | ) | ||||||
Proceeds from sales of assets, net | — | 224 | 85,189 | |||||||||
Other, net | (104 | ) | 1,186 | — | ||||||||
Net cash used in investing activities | (4,916 | ) | (13,949 | ) | (279,655 | ) | ||||||
Cash flows from financing activities | ||||||||||||
(Repayments) proceeds from credit facility borrowings, net | (50,350 | ) | (43,771 | ) | 135,000 | |||||||
Debt issuance costs paid | — | (3,011 | ) | (744 | ) | |||||||
Proceeds from rights offering, net | — | 49,943 | — | |||||||||
Dividends paid on preferred stock | — | — | (18,201 | ) | ||||||||
Other, net | (161 | ) | — | — | ||||||||
Net cash (used in) provided by financing activities | (50,511 | ) | 3,161 | 116,055 | ||||||||
Net (decrease) increase in cash and cash equivalents | $ | (24,653 | ) | $ | 19,459 | $ | 5,703 |
Successor | Predecessor | |||||||||||
September 13 | January 1 | |||||||||||
Through | Through | Year Ended | ||||||||||
December 31, | September 12, | December 31, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Oil and gas: | ||||||||||||
Drilling and completion | $ | 4,839 | $ | 3,696 | $ | 284,225 | ||||||
Lease acquisitions and other land-related costs | 93 | 58 | 16,052 | |||||||||
Geological and geophysical (seismic) costs | 567 | (16 | ) | 828 | ||||||||
Pipeline, gathering facilities and other equipment | (46 | ) | 375 | 3,884 | ||||||||
5,453 | 4,113 | 304,989 | ||||||||||
Other – Corporate | — | — | 562 | |||||||||
Total capital program costs | $ | 5,453 | $ | 4,113 | $ | 305,551 |
Successor | Predecessor | |||||||||||
September 13 | January 1 | |||||||||||
Through | Through | Year Ended | ||||||||||
December 31, | September 12, | December 31, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Total capital program costs | $ | 5,453 | $ | 4,113 | $ | 305,551 | ||||||
Decrease (increase) in accrued capitalized costs | (997 | ) | 11,301 | 55,660 | ||||||||
Less: | ||||||||||||
Exploration expenses charged to operations: | ||||||||||||
Geological and geophysical (seismic) and delay rental costs | — | 16 | (939 | ) | ||||||||
Transfers from tubular inventory and well materials | (272 | ) | (465 | ) | (4,570 | ) | ||||||
Add: | ||||||||||||
Tubular inventory and well materials purchased in advance of drilling | 61 | 211 | 2,854 | |||||||||
Capitalized internal labor | 542 | — | — | |||||||||
Capitalized interest | 25 | 183 | 6,288 | |||||||||
Total cash paid for capital expenditures | $ | 4,812 | $ | 15,359 | $ | 364,844 |
Successor | Predecessor | |||||||||||
September 13 | January 1 | |||||||||||
Through | Through | Year Ended | ||||||||||
December 31, | September 12, | December 31, | ||||||||||
2016 | 2016 | 2015 | ||||||||||
Oil and gas properties, net | $ | — | $ | — | $ | 84,967 | ||||||
Tubular inventory, well materials and other, net | — | 224 | 222 | |||||||||
— | 224 | 85,189 | ||||||||||
Insurance proceeds from casualty loss and other, net | (104 | ) | 1,186 | — | ||||||||
$ | (104 | ) | $ | 1,410 | $ | 85,189 |
Successor | Predecessor | |||||||
December 31, | December 31, | |||||||
2016 | 2015 | |||||||
Revolving credit facility | $ | 25,000 | $ | 170,000 | ||||
Senior notes due 2019 | — | 300,000 | ||||||
Senior notes due 2020 | — | 775,000 | ||||||
Total debt | 25,000 | 1,245,000 | ||||||
Shareholders’ equity 1 | 185,548 | (915,121 | ) | |||||
$ | 210,548 | $ | 329,879 | |||||
Debt as a % of total capitalization | 12 | % | 377 | % |
Total Production | ||||||||||||
Successor | Predecessor | |||||||||||
September 13 Through | January 1 Through | |||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||
Crude oil (MBbl) | 711 | 2,311 | 4,923 | 4,644 | ||||||||
NGLs (MBbl) | 164 | 533 | 1,381 | 1,110 | ||||||||
Natural gas (MMcf) | 994 | 3,013 | 9,713 | 13,085 | ||||||||
Total (MBOE) | 1,040 | 3,346 | 7,923 | 7,934 | ||||||||
Combined 2016 vs. 2015 Variance (MBOE) | (3,537 | ) | ||||||||||
% Change | (44.6 | )% | ||||||||||
2015 vs. 2014 Variance (MBOE) | (11 | ) | ||||||||||
% Change | (0.1 | )% | ||||||||||
Average Daily Production | ||||||||||||
September 13 Through | January 1 Through | |||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||
Crude oil (Bbl per day) | 6,463 | 9,028 | 13,523 | 12,723 | ||||||||
NGLs (Bbl per day) | 1,491 | 2,082 | 3,893 | 3,040 | ||||||||
Natural gas (MMcf per day) | 9 | 11 | 29 | 36 | ||||||||
Total (BOEPD) | 9,454 | 13,081 | 22,323 | 21,738 | ||||||||
Combined 2016 vs. 2015 Variance (BOEPD) | (10,339 | ) | ||||||||||
% Change | (46.3 | )% | ||||||||||
2015 vs. 2014 Variance (BOEPD) | 585 | |||||||||||
% Change | 2.7 | % | ||||||||||
Total Production | ||||||||||||
September 13 Through | January 1 Through | |||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||
South Texas | 937 | 3,071 | 6,903 | 5,817 | ||||||||
Mid-Continent and other 1 | 103 | 276 | 460 | 743 | ||||||||
Divested properties 2 | — | — | 560 | 1,374 | ||||||||
Total (MBOE) | 1,040 | 3,346 | 7,923 | 7,934 | ||||||||
Combined 2016 vs. 2015 Variance (MBOE) | (3,537 | ) | ||||||||||
% Change | (44.6 | )% | ||||||||||
2015 vs. 2014 Variance (MBOE) | (11 | ) | ||||||||||
% Change | (0.1 | )% | ||||||||||
Average Daily Production | ||||||||||||
September 13 Through | January 1 Through | |||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||
South Texas | 8,518 | 11,996 | 18,913 | 15,937 | ||||||||
Mid-Continent and other 1 | 936 | 1,085 | 1,260 | 2,034 | ||||||||
Divested properties 2 | — | — | 2,150 | 3,765 | ||||||||
Total (BOEPD) | 9,454 | 13,081 | 22,323 | 21,738 | ||||||||
Combined 2016 vs. 2015 Variance (BOEPD) | (10,339 | ) | ||||||||||
% Change | (46.3 | )% | ||||||||||
2015 vs. 2014 Variance (BOEPD) | 585 | |||||||||||
% Change | 2.7 | % |
Total Product Revenues | ||||||||||||||||
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Crude oil | $ | 33,157 | $ | 81,377 | $ | 220,596 | $ | 420,286 | ||||||||
NGLs | 2,707 | 6,064 | 16,905 | 34,552 | ||||||||||||
Natural gas | 2,790 | 6,208 | 25,479 | 58,044 | ||||||||||||
Total | $ | 38,654 | $ | 93,649 | $ | 262,980 | $ | 512,882 | ||||||||
Combined 2016 vs. 2015 Variance | $ | (130,677 | ) | |||||||||||||
% Change | (49.7 | )% | ||||||||||||||
2015 vs. 2014 Variance | $ | (249,902 | ) | |||||||||||||
% Change | (48.7 | )% | ||||||||||||||
Product Revenues per Unit of Volume | ||||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Crude oil ($ per barrel) | $ | 46.63 | $ | 35.21 | $ | 44.81 | $ | 90.50 | ||||||||
NGLs ($ per barrel) | $ | 16.51 | $ | 11.38 | $ | 12.24 | $ | 31.14 | ||||||||
Natural gas ($ per Mcf) | $ | 2.81 | $ | 2.06 | $ | 2.62 | $ | 4.44 | ||||||||
Total ($ per BOE) | $ | 37.17 | $ | 27.99 | $ | 33.19 | $ | 64.64 | ||||||||
Combined 2016 vs. 2015 Variance ($ per BOE) | $ | (3.02 | ) | |||||||||||||
% Change | (9.1 | )% | ||||||||||||||
2015 vs. 2014 Variance ($ per BOE) | $ | (31.45 | ) | |||||||||||||
% Change | (48.7 | )% | ||||||||||||||
Total Product Revenues | ||||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
South Texas | $ | 36,261 | $ | 88,849 | $ | 240,486 | $ | 432,792 | ||||||||
Mid-Continent and other 1 | 2,393 | 4,800 | 9,666 | 31,457 | ||||||||||||
Divested properties 2 | — | — | 12,828 | 48,633 | ||||||||||||
Total | $ | 38,654 | $ | 93,649 | $ | 262,980 | $ | 512,882 | ||||||||
Combined 2016 vs. 2015 Variance | $ | (130,677 | ) | |||||||||||||
% Change | (49.7 | )% | ||||||||||||||
2015 vs. 2014 Variance | $ | (249,902 | ) | |||||||||||||
% Change | (48.7 | )% | ||||||||||||||
Product Revenues per Unit of Volume | ||||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
South Texas | $ | 38.71 | $ | 28.94 | $ | 34.84 | $ | 74.40 | ||||||||
Mid-Continent and other | $ | 23.23 | $ | 17.41 | $ | 21.01 | $ | 42.37 | ||||||||
Divested properties | $ | — | $ | — | $ | 22.91 | $ | 35.40 | ||||||||
Total ($ per BOE) | $ | 37.17 | $ | 27.99 | $ | 33.19 | $ | 64.64 | ||||||||
Combined 2016 vs. 2015 Variance ($ per BOE) | $ | (3.02 | ) | |||||||||||||
% Change | (9.1 | )% | ||||||||||||||
2015 vs. 2014 Variance ($ per BOE) | $ | (31.45 | ) | |||||||||||||
% Change | (48.7 | )% |
2 | Includes revenues of $8.2 million and $28.2 million attributable to East Texas for 2015 and 2014, respectively, that we sold in August 2015 and $12.0 million attributable to Mississippi for 2014 that we sold in July 2014. Includes revenues of $4.3 million and $7.8 million for 2015 and 2014, respectively, attributable to non-core Eagle Ford properties that we sold in October 2015. Includes revenues of $0.4 million and $0.7 million attributable to certain Mid-Continent properties that we sold in October 2015. |
Combined 2016 Successor and Predecessor | |||||||||||||||||||||||
vs. 2015 Revenue Variance Due to | 2015 vs. 2014 Revenue Variance Due to | ||||||||||||||||||||||
Volume | Price | Total | Volume | Price | Total | ||||||||||||||||||
Crude oil | $ | (85,180 | ) | $ | (20,882 | ) | $ | (106,062 | ) | $ | 25,263 | $ | (224,953 | ) | $ | (199,690 | ) | ||||||
NGLs | (8,371 | ) | 237 | (8,134 | ) | 8,454 | (26,101 | ) | (17,647 | ) | |||||||||||||
Natural gas | (14,998 | ) | (1,483 | ) | (16,481 | ) | (14,957 | ) | (17,608 | ) | (32,565 | ) | |||||||||||
$ | (108,549 | ) | $ | (22,128 | ) | $ | (130,677 | ) | $ | 18,760 | $ | (268,662 | ) | $ | (249,902 | ) |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Crude oil revenues as reported | $ | 33,157 | $ | 81,377 | $ | 220,596 | $ | 420,286 | ||||||||
Derivative settlements, net | 384 | 48,008 | 137,488 | (6,170 | ) | |||||||||||
$ | 33,541 | $ | 129,385 | $ | 358,084 | $ | 414,116 | |||||||||
Crude oil prices per Bbl, as reported | $ | 46.63 | $ | 35.21 | $ | 44.81 | $ | 90.50 | ||||||||
Derivative settlements per Bbl | 0.54 | 20.77 | 27.93 | (1.33 | ) | |||||||||||
$ | 47.17 | $ | 55.98 | $ | 72.74 | $ | 89.17 | |||||||||
Natural gas revenues as reported | $ | 2,790 | $ | 6,208 | $ | 25,479 | $ | 58,044 | ||||||||
Derivative settlements, net | — | — | 681 | (1,254 | ) | |||||||||||
$ | 2,790 | $ | 6,208 | $ | 26,160 | $ | 56,790 | |||||||||
Natural gas prices per Mcf, as reported | $ | 2.81 | $ | 2.06 | $ | 2.62 | $ | 4.44 | ||||||||
Derivative settlements per Mcf | — | — | 0.07 | (0.10 | ) | |||||||||||
$ | 2.81 | $ | 2.06 | $ | 2.69 | $ | 4.34 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Lease operating | $ | 5,331 | $ | 15,626 | $ | 42,428 | $ | 48,298 | ||||||||
Per unit of production ($/BOE) | $ | 5.13 | $ | 4.67 | $ | 5.36 | $ | 6.09 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Gathering, processing and transportation | $ | 3,043 | $ | 13,235 | $ | 23,815 | $ | 18,294 | ||||||||
Per unit of production ($/BOE) | $ | 2.93 | $ | 3.96 | $ | 3.01 | $ | 2.31 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Production and ad valorem taxes | ||||||||||||||||
Production/severance taxes | $ | 1,801 | $ | 2,695 | $ | 11,796 | $ | 22,567 | ||||||||
Ad valorem taxes | 697 | 795 | 4,486 | 5,423 | ||||||||||||
$ | 2,498 | $ | 3,490 | $ | 16,282 | $ | 27,990 | |||||||||
Per unit of production ($/BOE) | $ | 2.40 | $ | 1.04 | $ | 2.06 | $ | 3.53 | ||||||||
Production/severance tax rate as a percent of product revenues | 4.7 | % | 2.9 | % | 4.5 | % | 4.4 | % |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Primary general and administrative expenses | $ | 5,087 | $ | 15,596 | $ | 32,353 | $ | 39,105 | ||||||||
Shares-based compensation (liability-classified) | — | (19 | ) | (711 | ) | 4,520 | ||||||||||
Shares-based compensation (equity-classified) | 81 | 1,511 | 4,540 | 3,627 | ||||||||||||
Significant special charges: | ||||||||||||||||
Strategic and financial advisory costs | — | 18,036 | 6,189 | — | ||||||||||||
ERP system development costs | — | — | — | 1,154 | ||||||||||||
Acquisition-related costs | — | — | — | 589 | ||||||||||||
Restructuring expenses | (80 | ) | 3,821 | 957 | 10 | |||||||||||
Total general and administrative expenses | $ | 5,088 | $ | 38,945 | $ | 43,328 | $ | 49,005 | ||||||||
Per unit of production ($/BOE) | $ | 4.89 | $ | 11.64 | $ | 5.47 | $ | 6.18 | ||||||||
Per unit of production excluding all share-based compensation and other significant special charges identified above ($/BOE) | $ | 4.89 | $ | 4.66 | $ | 4.08 | $ | 4.93 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Unproved leasehold amortization | $ | — | $ | 1,940 | $ | 5,759 | $ | 10,346 | ||||||||
Drilling rig termination charges | — | 1,705 | 5,885 | 751 | ||||||||||||
Drilling carry commitment | — | 1,964 | — | — | ||||||||||||
Geological and geophysical costs (seismic) | — | 33 | 828 | 5,106 | ||||||||||||
Other, primarily write-off of uncompleted wells | — | 4,646 | 111 | 860 | ||||||||||||
$ | — | $ | 10,288 | $ | 12,583 | $ | 17,063 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
DD&A expense | $ | 11,652 | $ | 33,582 | $ | 334,479 | $ | 300,299 | ||||||||
DD&A rate ($/BOE) | $ | 11.20 | $ | 10.04 | $ | 42.22 | $ | 37.85 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Interest on borrowings and related fees | $ | 678 | $ | 36,012 | $ | 92,490 | $ | 91,866 | ||||||||
Amortization of debt issuance costs | 226 | 22,189 | 4,749 | 4,197 | ||||||||||||
Capitalized interest | (25 | ) | (183 | ) | (6,288 | ) | (7,232 | ) | ||||||||
$ | 879 | $ | 58,018 | $ | 90,951 | $ | 88,831 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Crude oil derivative gains (losses) | $ | (16,622 | ) | $ | (8,333 | ) | $ | 71,244 | $ | 162,916 | ||||||
Natural gas derivative gains (losses) | — | — | 3 | (704 | ) | |||||||||||
$ | (16,622 | ) | $ | (8,333 | ) | $ | 71,247 | $ | 162,212 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Gains on the settlement of liabilities subject to compromise | $ | — | $ | 1,150,248 | $ | — | $ | — | ||||||||
Fresh Start Accounting adjustments | — | 28,319 | — | — | ||||||||||||
Legal and professional fees and expenses | — | (29,976 | ) | — | — | |||||||||||
Settlements attributable to contract amendments | — | (2,550 | ) | — | — | |||||||||||
DIP Facility costs and commitment fees | — | (170 | ) | — | — | |||||||||||
Write-off of prepaid directors and officers insurance | — | (832 | ) | — | — | |||||||||||
Other reorganization items | — | (46 | ) | — | — | |||||||||||
$ | — | $ | 1,144,993 | $ | — | $ | — |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Income tax benefit | $ | — | $ | — | $ | 5,371 | $ | 131,678 | ||||||||
Effective tax rate | — | % | — | % | 0.3 | % | 24.3 | % |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||
Credit Facility 1 | $ | 25,000 | $ | — | $ | — | $ | 25,000 | $ | — | |||||||||
Interest payments on long-term debt 2 | 3,402 | 917 | 1,835 | 650 | — | ||||||||||||||
Operating leases 3 | 565 | 264 | 260 | 41 | — | ||||||||||||||
Crude oil gathering and transportation commitments 4 | 134,322 | 9,646 | 22,078 | 25,924 | 76,674 | ||||||||||||||
Asset retirement obligations 5 | 68,309 | — | — | — | 68,309 | ||||||||||||||
Derivatives | 27,369 | 12,932 | 14,437 | — | — | ||||||||||||||
Other commitments 6 | 667 | 596 | 71 | — | — | ||||||||||||||
Total contractual obligations | $ | 259,634 | $ | 24,355 | $ | 38,681 | $ | 51,615 | $ | 144,983 |
3 | Relates primarily to office and equipment leases. |
4 | Represents minimum payments for gathering and intermediate pipeline transportation services for our crude oil and condensate production in South Texas. The gathering portion of these commitments is recognized as GPT while the intermediate transportation and pipeline support components are recognized as a reduction to the index-based price that we receive from crude oil sold to Republic. |
5 | Represents the undiscounted balance payable in periods more than five years in the future for which $2.5 million has been recognized on our Consolidated Balance Sheet as of December 31, 2016. While we could make payments to settle asset retirement obligations during each of the next five years, none are currently required by contract to be made during this time frame. |
6 | Represents all other significant obligations, including information technology licensing and service agreements, among others. |
Item 8 | Financial Statements and Supplementary Data |
Page | |
Reports of Independent Registered Public Accounting Firms | |
Consolidated Statements of Operations | |
Consolidated Statements of Comprehensive Income (Loss) | |
Consolidated Balance Sheets | |
Consolidated Statements of Cash Flows | |
Consolidated Statements of Shareholders’ Equity | |
Notes to Consolidated Financial Statements: | |
1. Nature of Operations | |
2. Basis of Presentation | |
3. Summary of Significant Accounting Policies | |
4. Bankruptcy Proceedings and Emergence | |
5. Fresh Start Accounting | |
6. Divestitures | |
7. Accounts Receivable and Major Customers | |
8. Derivative Instruments | |
9. Property and Equipment | |
10. Asset Retirement Obligations | |
11. Long-Term Debt | |
12. Income Taxes | |
13. Exit Activities | |
14. Additional Balance Sheet Detail | |
15. Fair Value Measurements | |
16. Commitments and Contingencies | |
17. Shareholders’ Equity | |
18. Share-Based Compensation and Other Benefit Plans | |
19. Impairments | |
20. Interest Expense | |
21. Earnings per Share | |
Supplemental Quarterly Financial Information (unaudited) | |
Supplemental Information on Oil and Gas Producing Activities (unaudited) |
Successor | Predecessor | |||||||||||||||
Period From | Period From | |||||||||||||||
September 13, 2016 Through | January 1, 2016 Through | Year Ended December 31, | ||||||||||||||
December 31, 2016 | September 12, 2016 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
Crude oil | $ | 33,157 | $ | 81,377 | $ | 220,596 | $ | 420,286 | ||||||||
Natural gas liquids | 2,707 | 6,064 | 16,905 | 34,552 | ||||||||||||
Natural gas | 2,790 | 6,208 | 25,479 | 58,044 | ||||||||||||
Gain (loss) on sales of assets, net | (49 | ) | 1,261 | 41,335 | 120,769 | |||||||||||
Other, net | 398 | (600 | ) | 983 | 3,122 | |||||||||||
Total revenues | 39,003 | 94,310 | 305,298 | 636,773 | ||||||||||||
Operating expenses | ||||||||||||||||
Lease operating | 5,331 | 15,626 | 42,428 | 48,298 | ||||||||||||
Gathering, processing and transportation | 3,043 | 13,235 | 23,815 | 18,294 | ||||||||||||
Production and ad valorem taxes | 2,498 | 3,490 | 16,282 | 27,990 | ||||||||||||
General and administrative | 5,088 | 38,945 | 43,328 | 49,005 | ||||||||||||
Exploration | — | 10,288 | 12,583 | 17,063 | ||||||||||||
Depreciation, depletion and amortization | 11,652 | 33,582 | 334,479 | 300,299 | ||||||||||||
Impairments | — | — | 1,397,424 | 791,809 | ||||||||||||
Total operating expenses | 27,612 | 115,166 | 1,870,339 | 1,252,758 | ||||||||||||
Operating income (loss) | 11,391 | (20,856 | ) | (1,565,041 | ) | (615,985 | ) | |||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (879 | ) | (58,018 | ) | (90,951 | ) | (88,831 | ) | ||||||||
Derivatives | (16,622 | ) | (8,333 | ) | 71,247 | 162,212 | ||||||||||
Other, net | 814 | (3,184 | ) | (3,587 | ) | 1,334 | ||||||||||
Reorganization items, net | — | 1,144,993 | — | — | ||||||||||||
Income (loss) before income taxes | (5,296 | ) | 1,054,602 | (1,588,332 | ) | (541,270 | ) | |||||||||
Income tax benefit | — | — | 5,371 | 131,678 | ||||||||||||
Net income (loss) | (5,296 | ) | 1,054,602 | (1,582,961 | ) | (409,592 | ) | |||||||||
Preferred stock dividends | — | (5,972 | ) | (22,789 | ) | (17,148 | ) | |||||||||
Induced conversion of preferred stock | — | — | — | (4,256 | ) | |||||||||||
Net income (loss) attributable to common shareholders | $ | (5,296 | ) | $ | 1,048,630 | $ | (1,605,750 | ) | $ | (430,996 | ) | |||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | (0.35 | ) | $ | 11.91 | $ | (21.81 | ) | $ | (6.26 | ) | |||||
Diluted | $ | (0.35 | ) | $ | 8.50 | $ | (21.81 | ) | $ | (6.26 | ) | |||||
Weighted average shares outstanding – basic | 14,992 | 88,013 | 73,639 | 68,887 | ||||||||||||
Weighted average shares outstanding – diluted | 14,992 | 124,087 | 73,639 | 68,887 |
Successor | Predecessor | |||||||||||||||
Period From | Period From | |||||||||||||||
September 13, 2016 Through | January 1, 2016 Through | Year Ended December 31, | ||||||||||||||
December 31, 2016 | September 12, 2016 | 2015 | 2014 | |||||||||||||
Net income (loss) | $ | (5,296 | ) | $ | 1,054,602 | $ | (1,582,961 | ) | $ | (409,592 | ) | |||||
Other comprehensive income (loss): | ||||||||||||||||
Change in pension and postretirement obligations, net of tax of $39 for the Successor period from September 13, 2016 through December 31, 2016, $(226) for the Predecessor period from January 1, 2016 through September 12, 2016, and $93 and $(10), for 2015 and 2014, respectively | 73 | (421 | ) | 173 | (18 | ) | ||||||||||
73 | (421 | ) | 173 | (18 | ) | |||||||||||
Comprehensive income (loss) | $ | (5,223 | ) | $ | 1,054,181 | $ | (1,582,788 | ) | $ | (409,610 | ) |
Successor | Predecessor | |||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 6,761 | $ | 11,955 | ||||
Accounts receivable, net of allowance for doubtful accounts | 29,095 | 47,965 | ||||||
Derivative assets | — | 97,956 | ||||||
Other current assets | 3,028 | 7,104 | ||||||
Total current assets | 38,884 | 164,980 | ||||||
Property and equipment, net | 247,473 | 344,395 | ||||||
Other assets | 5,329 | 8,350 | ||||||
Total assets | $ | 291,686 | $ | 517,725 | ||||
Liabilities and Shareholders’ Equity (Deficit) | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 49,697 | $ | 103,525 | ||||
Derivative liabilities | 12,932 | — | ||||||
Current portion of long-term debt, net of unamortized issuance costs | — | 1,224,383 | ||||||
Total current liabilities | 62,629 | 1,327,908 | ||||||
Other liabilities | 4,072 | 104,938 | ||||||
Derivative liabilities | 14,437 | — | ||||||
Deferred income taxes | — | — | ||||||
Long-term debt | 25,000 | — | ||||||
Commitments and contingencies (Note 16) | ||||||||
Shareholders’ equity (deficit): | ||||||||
Predecessor preferred stock of $100 par value – 100,000 shares authorized; Series A – 3,915 shares issued as of December 31, 2015 and Series B – 27,551 shares issued as of December 31, 2015, each with a redemption value of $10,000 per share | — | 3,146 | ||||||
Predecessor common stock of $0.01 par value – 228,000,000 shares authorized; 81,252,676 shares issued as of December 31, 2015 | — | 628 | ||||||
Predecessor paid-in capital | — | 1,211,088 | ||||||
Predecessor deferred compensation obligation | — | 3,440 | ||||||
Predecessor accumulated other comprehensive income | — | 422 | ||||||
Predecessor treasury stock – 455,689 shares of common stock, at cost, as of December 31, 2015 | — | (3,574 | ) | |||||
Successor preferred stock of $0.01 par value – 5,000,000 shares authorized; none issued | — | — | ||||||
Successor common stock of $0.01 par value – 45,000,000 shares authorized; 14,992,018 shares issued as of December 31, 2016 | 150 | — | ||||||
Successor paid-in capital | 190,621 | — | ||||||
Accumulated deficit | (5,296 | ) | (2,130,271 | ) | ||||
Successor accumulated other comprehensive income | 73 | — | ||||||
Total shareholders’ equity (deficit) | $ | 185,548 | $ | (915,121 | ) | |||
Total liabilities and shareholders’ equity (deficit) | $ | 291,686 | $ | 517,725 |
Successor | Predecessor | |||||||||||||||
Period From | Period From | |||||||||||||||
September 13, 2016 Through | January 1, 2016 Through | Year Ended December 31, | ||||||||||||||
December 31, 2016 | September 12, 2016 | 2015 | 2014 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income (loss) | $ | (5,296 | ) | $ | 1,054,602 | $ | (1,582,961 | ) | $ | (409,592 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Non-cash reorganization items | — | (1,178,302 | ) | — | — | |||||||||||
Depreciation, depletion and amortization | 11,652 | 33,582 | 334,479 | 300,299 | ||||||||||||
Impairments | — | — | 1,397,424 | 791,809 | ||||||||||||
Accretion of firm transportation obligation | — | 317 | 942 | 1,301 | ||||||||||||
Derivative contracts: | ||||||||||||||||
Net losses (gains) | 16,622 | 8,333 | (71,247 | ) | (162,212 | ) | ||||||||||
Cash settlements, net | 384 | 48,008 | 138,169 | (7,424 | ) | |||||||||||
Deferred income tax benefit | — | — | (4,712 | ) | (135,227 | ) | ||||||||||
Loss (gain) on sales of assets, net | 49 | (1,261 | ) | (41,335 | ) | (120,769 | ) | |||||||||
Non-cash exploration expense | — | 6,038 | 5,759 | 10,346 | ||||||||||||
Non-cash interest expense | 226 | 22,189 | 4,749 | 4,197 | ||||||||||||
Share-based compensation (equity-classified) | 81 | 1,511 | 4,540 | 3,627 | ||||||||||||
Other, net | 21 | (13 | ) | 13 | 94 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable, net | 10,791 | 12,273 | 137,854 | (20,169 | ) | |||||||||||
Accounts payable and accrued expenses | (3,887 | ) | 22,469 | (152,553 | ) | 27,362 | ||||||||||
Other assets and liabilities | 131 | 501 | (1,818 | ) | (918 | ) | ||||||||||
Net cash provided by operating activities | 30,774 | 30,247 | 169,303 | 282,724 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Capital expenditures | (4,812 | ) | (15,359 | ) | (364,844 | ) | (774,139 | ) | ||||||||
Receipts to settle working capital adjustments assumed in acquisition, net | — | — | — | 33,712 | ||||||||||||
Proceeds from sales of assets, net | — | 224 | 85,189 | 313,933 | ||||||||||||
Other, net | (104 | ) | 1,186 | — | — | |||||||||||
Net cash used in investing activities | (4,916 | ) | (13,949 | ) | (279,655 | ) | (426,494 | ) | ||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from credit facility borrowings | — | 75,350 | 233,000 | 412,000 | ||||||||||||
Repayment of credit facility borrowings | (50,350 | ) | (119,121 | ) | (98,000 | ) | (583,000 | ) | ||||||||
Proceeds from the issuance of preferred stock, net | — | — | — | 313,330 | ||||||||||||
Payments to induce conversion of preferred stock | — | — | — | (4,256 | ) | |||||||||||
Debt issuance costs paid | — | (3,011 | ) | (744 | ) | (151 | ) | |||||||||
Proceeds received from rights offering, net | — | 49,943 | — | — | ||||||||||||
Dividends paid on preferred stock | — | — | (18,201 | ) | (12,803 | ) | ||||||||||
Other, net | (161 | ) | — | — | 1,428 | |||||||||||
Net cash (used in) provided by financing activities | (50,511 | ) | 3,161 | 116,055 | 126,548 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (24,653 | ) | 19,459 | 5,703 | (17,222 | ) | ||||||||||
Cash and cash equivalents - beginning of period | 31,414 | 11,955 | 6,252 | 23,474 | ||||||||||||
Cash and cash equivalents - end of period | $ | 6,761 | $ | 31,414 | $ | 11,955 | $ | 6,252 | ||||||||
Supplemental disclosures: | ||||||||||||||||
Cash paid for interest (net of amounts capitalized) | $ | 598 | $ | 4,331 | $ | 86,226 | $ | 84,797 | ||||||||
Cash paid for income taxes (net of refunds) | $ | (7 | ) | $ | (35 | ) | $ | (714 | ) | $ | 3,612 | |||||
Cash paid for reorganization items, net | $ | 525 | $ | 30,990 | $ | — | $ | — | ||||||||
Non-cash investing and financing activities: | ||||||||||||||||
Common stock issued in exchange for liabilities | $ | — | $ | 140,952 | $ | — | $ | — | ||||||||
Changes in accrued liabilities related to capital expenditures | $ | 997 | $ | (11,301 | ) | $ | (55,660 | ) | $ | 24,715 | ||||||
Derivatives settled to reduce outstanding debt | $ | — | $ | 51,979 | $ | — | $ | — |
Common Shares Outstanding | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) | Deferred Compensation Obligation | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||
Balance as of December 31, 2013 (Predecessor) | 65,307 | $ | 1,150 | $ | 466 | $ | 891,351 | $ | (104,180 | ) | $ | 2,792 | $ | 267 | $ | (3,042 | ) | $ | 788,804 | |||||||||||||||
Net loss | — | — | — | — | (409,592 | ) | — | — | — | (409,592 | ) | |||||||||||||||||||||||
Issuance of common stock | — | 3,250 | 310,080 | — | — | — | — | 313,330 | ||||||||||||||||||||||||||
Conversion of preferred stock | 5,926 | (356 | ) | 59 | 297 | — | — | — | — | — | ||||||||||||||||||||||||
Payments to induce conversion of preferred stock | — | — | — | — | (4,256 | ) | — | — | — | (4,256 | ) | |||||||||||||||||||||||
Dividends declared on preferred stock ($600.00 and $348.33 per Series A and Series B preferred share, respectively) | — | — | — | — | (17,148 | ) | — | — | — | (17,148 | ) | |||||||||||||||||||||||
Share-based compensation | 15 | — | 1 | 3,626 | — | — | — | — | 3,627 | |||||||||||||||||||||||||
Deferred compensation | — | — | — | — | — | 419 | — | (303 | ) | 116 | ||||||||||||||||||||||||
Exercise of stock options | 257 | — | 3 | 1,425 | — | — | — | — | 1,428 | |||||||||||||||||||||||||
Restricted stock unit vesting | 64 | — | — | (474 | ) | — | — | — | — | (474 | ) | |||||||||||||||||||||||
Change in pension and postretirement benefit obligations | — | — | — | — | — | — | (18 | ) | — | (18 | ) | |||||||||||||||||||||||
Balance as of December 31, 2014 (Predecessor) | 71,569 | 4,044 | 529 | 1,206,305 | (535,176 | ) | 3,211 | 249 | (3,345 | ) | 675,817 | |||||||||||||||||||||||
Net loss | — | — | — | — | (1,582,961 | ) | — | — | — | (1,582,961 | ) | |||||||||||||||||||||||
Conversion of preferred stock | 9,414 | (898 | ) | 94 | 804 | — | — | — | — | — | ||||||||||||||||||||||||
Dividends declared on preferred stock ($300.00 and $300.00 per Series A and Series B preferred share, respectively) | — | — | — | — | (12,134 | ) | — | — | — | (12,134 | ) | |||||||||||||||||||||||
Share-based compensation | 195 | — | 4 | 4,536 | — | — | — | — | 4,540 | |||||||||||||||||||||||||
Deferred compensation | 2 | — | — | — | — | 229 | — | (229 | ) | — | ||||||||||||||||||||||||
Restricted stock unit vesting | 73 | — | 1 | (557 | ) | — | — | — | — | (556 | ) | |||||||||||||||||||||||
Change in pension and postretirement benefit obligations | — | — | — | — | — | — | 173 | — | 173 | |||||||||||||||||||||||||
Balance as of December 31, 2015 (Predecessor) | 81,253 | 3,146 | 628 | 1,211,088 | (2,130,271 | ) | 3,440 | 422 | (3,574 | ) | (915,121 | ) | ||||||||||||||||||||||
Net income | — | — | — | — | 1,054,602 | — | — | — | 1,054,602 | |||||||||||||||||||||||||
Share-based compensation | — | — | — | 1,511 | — | — | — | — | 1,511 | |||||||||||||||||||||||||
All other changes | 6,965 | (1,266 | ) | 69 | 1,198 | — | — | (39 | ) | — | (38 | ) | ||||||||||||||||||||||
Balance, September 12, 2016 (Predecessor) | 88,218 | $ | 1,880 | $ | 697 | $ | 1,213,797 | $ | (1,075,669 | ) | $ | 3,440 | $ | 383 | $ | (3,574 | ) | $ | 140,954 | |||||||||||||||
Cancellation of Predecessor equity | (88,218 | ) | (1,880 | ) | (697 | ) | (1,213,797 | ) | 1,075,669 | (3,440 | ) | (383 | ) | 3,574 | (140,954 | ) | ||||||||||||||||||
Balance, September 12, 2016 (Predecessor) | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Issuance of Successor common stock - Rights Offering | 7,634 | $ | — | $ | 76 | $ | 49,867 | $ | — | $ | — | $ | — | $ | — | $ | 49,943 | |||||||||||||||||
Issuance of Successor common stock - Backstop Fee | 473 | — | 5 | 9,054 | — | — | — | — | 9,059 | |||||||||||||||||||||||||
Issuance of Successor common stock - exchange of claims | 6,885 | — | 69 | 131,824 | — | — | — | — | 131,893 | |||||||||||||||||||||||||
Balance, September 12, 2016 (Successor) | 14,992 | — | 150 | 190,745 | — | — | — | — | 190,895 | |||||||||||||||||||||||||
Net loss | — | — | — | — | (5,296 | ) | — | — | — | (5,296 | ) | |||||||||||||||||||||||
Share-based compensation | — | — | — | 81 | — | — | — | — | 81 | |||||||||||||||||||||||||
All other changes | — | — | — | (205 | ) | — | — | 73 | — | (132 | ) | |||||||||||||||||||||||
Balance as of December 31, 2016 | 14,992 | $ | — | $ | 150 | $ | 190,621 | $ | (5,296 | ) | $ | — | $ | 73 | $ | — | $ | 185,548 |
1. | Nature of Operations |
2. | Basis of Presentation |
3. | Summary of Significant Accounting Policies |
4. | Bankruptcy Proceedings and Emergence |
• | the approximately $1,122 million of indebtedness, including accrued interest, attributable to our Senior Notes and certain other unsecured claims were exchanged for 6,069,074 shares representing 41 percent of the Successor’s common stock (“New Common Stock”); |
• | a total of $50 million of proceeds were received on the Effective Date from the Rights Offering resulting in the issuance of 7,633,588 shares representing 51 percent of New Common Stock to holders of claims arising under the Senior Notes, certain holders of general unsecured claims and to the Backstop Parties; |
• | the Backstop Parties received a backstop fee comprised of 472,902 shares representing three percent of New Common Stock; |
• | an additional 816,454 shares representing five percent of New Common Stock were authorized for disputed general unsecured claims and non-accredited investor holders of the Senior Notes and subsequently, 749,600 shares of New Common Stock were reserved for issuance under a new management incentive plan; |
• | on the Effective Date, we entered into a shareholders agreement and a registration rights agreement and amended our articles of incorporation and bylaws for the authorization of the New Common Stock and to provide customary registration rights thereunder, among other corporate governance actions; |
• | holders of claims arising under the RBL were paid in full from cash on hand, $75.4 million from borrowings under our new credit agreement (the “Credit Facility”) (see Note 11 below) and proceeds from the Rights Offering; |
• | the debtor-in-possession credit facility (the “DIP Facility”), under which there were no outstanding borrowings at any time from the Petition Date through the Effective Date, was canceled and less than $0.1 million in fees were paid in full in cash; |
• | certain other priority claims were paid in full in cash, reinstated or otherwise treated in a manner acceptable to the creditor claim-holders; |
• | a cash reserve of $2.7 million was established for certain other secured, priority or convenience claims pending resolution as of the Effective Date; |
• | an escrow account for professional service fees attributable to our advisers and those of the UCC was funded by us with cash of $14.6 million, and we paid $7.2 million for professional fees and expenses on behalf of the RBL Lenders, the Ad Hoc Committee and the indenture trustee for the Senior Notes; |
• | on the Effective Date, our previous interim Chief Executive Officer, Edward B. Cloues, resigned and each member of our board of directors resigned and was replaced by new board members: Darin G. Holderness, CPA, Marc McCarthy and Harry Quarls and, in October 2016, Jerry R. Shuyler; |
• | our Predecessor preferred stock and common stock was canceled, extinguished and discharged; and |
• | all of our Predecessor share-based compensation plans and supplemental employee retirement plan (the “SERP”) entitlements were canceled. |
5. | Fresh Start Accounting |
Enterprise value | $ | 234,831 | ||
Plus: Cash and cash equivalents | 31,414 | |||
Less: Fair value of debt | (75,350 | ) | ||
Fair value of Successor common stock | $ | 190,895 | ||
Shares outstanding as of September 12, 2016 | 14,992,018 | |||
Per share value | $ | 12.73 |
Enterprise value | $ | 234,831 | ||
Plus: Cash and cash equivalents | 31,414 | |||
Plus: Current liabilities | 54,171 | |||
Plus: Noncurrent liabilities excluding long-term debt | 13,558 | |||
Reorganization value | $ | 333,974 |
Reorganization | Fresh Start | ||||||||||||||||||
Predecessor | Adjustments | Adjustments | Successor | ||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 48,718 | $ | (17,304 | ) | (1 | ) | $ | — | $ | 31,414 | ||||||||
Accounts receivable, net of allowance for doubtful accounts | 35,606 | 4,292 | (2 | ) | — | 39,898 | |||||||||||||
Derivative assets | 397 | — | — | 397 | |||||||||||||||
Other current assets | 3,966 | (832 | ) | (3 | ) | — | 3,134 | ||||||||||||
Total current assets | 88,687 | (13,844 | ) | — | 74,843 | ||||||||||||||
Property and equipment, net | 309,261 | — | (55,751 | ) | (12 | ) | 253,510 | ||||||||||||
Other assets | 6,902 | (1,281 | ) | (4 | ) | — | 5,621 | ||||||||||||
Total assets | $ | 404,850 | $ | (15,125 | ) | $ | (55,751 | ) | $ | 333,974 | |||||||||
Liabilities and Shareholders’ Deficit | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 77,151 | $ | (21,166 | ) | (5 | ) | $ | (3,455 | ) | (13 | ) | $ | 52,530 | |||||
Derivative liabilities | 1,641 | — | — | 1,641 | |||||||||||||||
Current maturities of long-term debt | 113,653 | (113,653 | ) | (6 | ) | — | — | ||||||||||||
Total current liabilities | 192,445 | (134,819 | ) | (3,455 | ) | 54,171 | |||||||||||||
Other liabilities | 84,953 | 100 | (5 | ) | (80,615 | ) | (14 | ) | 4,438 | ||||||||||
Derivative liabilities | 9,120 | — | — | 9,120 | |||||||||||||||
Long-term debt | — | 75,350 | (7 | ) | — | 75,350 | |||||||||||||
Liabilities subject to compromise | 1,154,163 | (1,154,163 | ) | (8 | ) | — | — | ||||||||||||
Shareholders’ equity (deficit) | |||||||||||||||||||
Preferred stock (Predecessor) | 1,880 | (1,880 | ) | (9 | ) | — | — | ||||||||||||
Common stock (Predecessor) | 697 | (697 | ) | (9 | ) | — | — | ||||||||||||
Paid-in capital (Predecessor) | 1,213,797 | (1,213,797 | ) | (9 | ) | — | — | ||||||||||||
Deferred compensation obligation (Predecessor) | 3,440 | (3,440 | ) | (9 | ) | — | — | ||||||||||||
Accumulated other comprehensive income (Predecessor) | 383 | (383 | ) | (9 | ) | — | — | ||||||||||||
Treasury stock (Predecessor) | (3,574 | ) | 3,574 | (9 | ) | — | — | ||||||||||||
Common stock (Successor) | — | 150 | (10 | ) | — | 150 | |||||||||||||
Paid-in capital (Successor) | — | 190,745 | (10 | ) | — | 190,745 | |||||||||||||
Accumulated deficit | (2,252,454 | ) | 2,224,135 | (11 | ) | 28,319 | (15 | ) | — | ||||||||||
Total shareholders’ equity (deficit) | (1,035,831 | ) | 1,198,407 | 28,319 | 190,895 | ||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 404,850 | $ | (15,125 | ) | $ | (55,751 | ) | $ | 333,974 |
1. | Represents the net cash payments that occurred on the Effective Date: |
Sources: | |||||||
Proceeds from the Credit Facility | $ | 75,350 | |||||
Proceeds from the Rights Offering, net of issuance costs | 49,943 | ||||||
Total sources | $ | 125,293 | |||||
Uses: | |||||||
Repayment of RBL | $ | 113,653 | |||||
Accrued interest payable on RBL | 1,374 | ||||||
DIP Facility fees | 12 | ||||||
Debt issue costs of the Credit Facility | 3,011 | ||||||
Funding of professional fee escrow account | 14,575 | ||||||
RBL lender professional fees and expenses | 455 | ||||||
Ad Hoc Committee and indenture trustee professional fees and expenses | 6,782 | ||||||
Payment of certain allowed claims and settlements | 2,735 | ||||||
Total uses | 142,597 | ||||||
$ | (17,304 | ) |
2. | Represents the reclassification of SERP assets to a current receivable from other noncurrent assets upon the cancellation of the underlying plan and the reversion of the assets to the Successor. |
3. | Represents the write-off of certain prepaid directors and officers tail insurance. |
4. | Represents the capitalization of debt issuance costs attributable to the Credit Facility, net of the reclassification of SERP assets as discussed in item (2) above. |
5. | Represents the payment of professional fees on behalf of the RBL Lenders, the Ad Hoc Committee and the UCC, indenture trustee fees and expenses, interest payable on the RBL as well as certain allowed claims and settlements net of the establishment of reserves and the reinstatement of certain other obligations. |
6. | Represents the repayment of the RBL in cash in full. |
7. | Represents the initial borrowings under the Credit Facility. |
8. | Liabilities subject to compromise were settled as follows in accordance with the Plan: |
Liabilities subject to compromise prior to the Effective Date: | |||||||
Senior Notes | $ | 1,075,000 | |||||
Interest on Senior Notes | 47,213 | ||||||
Firm transportation obligation | 11,077 | ||||||
Compensation – related | 9,733 | ||||||
Deferred compensation | 4,676 | ||||||
Trade accounts payable | 1,487 | ||||||
Litigation claims | 1,092 | ||||||
Other accrued liabilities | 3,885 | ||||||
$ | 1,154,163 | ||||||
Amounts settled in cash, reinstated or otherwise reserved at emergence | (3,915 | ) | |||||
Gain on settlement of liabilities subject to compromise | $ | 1,150,248 |
9. | Represents the cancellation of our Predecessor preferred and common stock and related components of our Predecessor shareholders’ deficit. |
10. | Represents the issuance of 14,992,018 shares of New Common Stock with a fair value of $12.73 per share. |
11. | Represents the cumulative impact of the reorganization adjustments described above: |
Gain on settlement of of liabilities subject to compromise | $ | 1,150,248 | ||||
Fair value of equity allocated to: | ||||||
Unsecured creditors on the Effective Date | 174,477 | |||||
Unsecured creditors pending resolution on the Effective Date | 10,396 | |||||
Backstop Parties in the form of a Commitment Premium | 6,022 | |||||
190,895 | ||||||
Cancellation of Predecessor shareholders’ deficit | 882,992 | |||||
Net impact to Predecessor accumulated deficit | $ | 2,224,135 |
12. | Represents the Fresh Start Accounting valuation adjustments applied to our oil and gas properties and other equipment. |
13. | Represents the accelerated recognition of the current portion of previously deferred gains on sales of assets attributable to the accounting presentation required by GAAP under the Predecessor. |
14. | Represents the recognition of Fresh Start Accounting adjustments to: (i) our AROs attributable to the revalued oil and gas properties and (ii) our retiree obligations based on actuarial measurements, as well as the accelerated recognition of the noncurrent portion of previously deferred gains on sales of assets attributable to the accounting presentation required by GAAP under the Predecessor. |
15. | Represents the cumulative impact of the Fresh Start Accounting adjustments discussed above. |
January 1 Through | |||
September 12, | |||
2016 | |||
Gains on the settlement of liabilities subject to compromise | $ | 1,150,248 | |
Fresh start accounting adjustments | 28,319 | ||
Legal and professional fees and expenses | (29,976 | ) | |
Settlements attributable to contract amendments | (2,550 | ) | |
DIP Facility costs and commitment fees | (170 | ) | |
Write-off of prepaid directors and officers insurance | (832 | ) | |
Other reorganization items | (46 | ) | |
$ | 1,144,993 |
7. | Accounts Receivable and Major Customers |
Successor | Predecessor | |||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Customers | $ | 20,489 | $ | 23,481 | ||||
Joint interest partners | 7,238 | 18,381 | ||||||
Other | 3,789 | 7,658 | ||||||
31,516 | 49,520 | |||||||
Less: Allowance for doubtful accounts | (2,421 | ) | (1,555 | ) | ||||
$ | 29,095 | $ | 47,965 |
8. | Derivative Instruments |
Average | |||||||||||||||||||
Volume Per | Weighted Average Price | Fair Value | |||||||||||||||||
Instrument | Day | Floor/Swap | Ceiling | Asset | Liability | ||||||||||||||
Crude Oil: | (barrels) | ($/barrel) | |||||||||||||||||
First quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | $ | — | $ | 2,454 | ||||||||||
Second quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | — | 3,110 | ||||||||||||
Third quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | — | 3,290 | ||||||||||||
Fourth quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | — | 3,260 | ||||||||||||
First quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | — | 2,267 | ||||||||||||
Second quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | — | 2,193 | ||||||||||||
Third quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | — | 2,140 | ||||||||||||
Fourth quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | — | 2,091 | ||||||||||||
First quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | — | 1,471 | ||||||||||||
Second quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | — | 1,438 | ||||||||||||
Third quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | — | 1,423 | ||||||||||||
Fourth quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | — | 1,414 | ||||||||||||
Settlements to be paid in subsequent period | 818 |
Successor | Predecessor | |||||||||||||||
Period From September 13, 2016 | Period From January 1, 2016 | Year Ended December 31, | ||||||||||||||
Through December 31, 2016 | Through September 12, 2016 | 2015 | 2014 | |||||||||||||
Derivative gains (losses) | $ | (16,622 | ) | $ | (8,333 | ) | $ | 71,247 | $ | 162,212 |
Successor | Predecessor | ||||||||||||||||||
Fair Values | |||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||
Derivative | Derivative | Derivative | Derivative | ||||||||||||||||
Type | Balance Sheet Location | Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Commodity contracts | Derivative assets/liabilities – current | $ | — | $ | 12,932 | $ | 97,956 | $ | — | ||||||||||
Commodity contracts | Derivative assets/liabilities – noncurrent | — | 14,437 | — | — | ||||||||||||||
$ | — | $ | 27,369 | $ | 97,956 | $ | — |
9. | Property and Equipment |
Successor | Predecessor | |||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Oil and gas properties: | ||||||||
Proved | $ | 251,083 | $ | 2,678,415 | ||||
Unproved 1 | 4,719 | 6,881 | ||||||
Total oil and gas properties | 255,802 | 2,685,296 | ||||||
Other property and equipment | 3,575 | 31,365 | ||||||
Total property and equipment | 259,377 | 2,716,661 | ||||||
Accumulated depreciation, depletion and amortization 1 | (11,904 | ) | (2,372,266 | ) | ||||
$ | 247,473 | $ | 344,395 |
10. | Asset Retirement Obligations |
Successor | Predecessor | |||||||||||
Period From September 13, 2016 | Period From January 1, 2016 | December 31, | ||||||||||
Through December 31, 2016 | Through September 12, 2016 | 2015 | ||||||||||
Balance at beginning of period | $ | 2,687 | $ | 2,621 | $ | 5,890 | ||||||
Fresh Start Accounting adjustment | — | (754 | ) | — | ||||||||
Changes in estimates | 27 | 176 | 172 | |||||||||
Liabilities incurred | — | 469 | 110 | |||||||||
Liabilities settled | (311 | ) | — | — | ||||||||
Sale of properties | — | — | (3,932 | ) | ||||||||
Accretion expense | 56 | 175 | 381 | |||||||||
Balance at end of period | $ | 2,459 | $ | 2,687 | $ | 2,621 |
11. | Long-Term Debt |
Successor | Predecessor | |||||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||||||
Principal | Unamortized Issuance Costs 1 | Principal | Unamortized Issuance Costs 1 | |||||||||||||
Credit facility 2 | $ | 25,000 | $ | — | ||||||||||||
Pre-petition credit facility 3 | 170,000 | |||||||||||||||
Senior notes due 2019 | — | $ | — | 300,000 | $ | 3,295 | ||||||||||
Senior notes due 2020 | — | — | 775,000 | 17,322 | ||||||||||||
Totals | 25,000 | $ | — | 1,245,000 | $ | 20,617 | ||||||||||
Less: Unamortized issuance costs | — | (20,617 | ) | |||||||||||||
Less: Current portion | — | (1,224,383 | ) | |||||||||||||
Long-term debt, net of unamortized issuance costs | $ | 25,000 | $ | — |
12. | Income Taxes |
Successor | Predecessor | |||||||||||||||
Period From September 13, 2016 | Period From January 1, 2016 | Year Ended December 31, | ||||||||||||||
Through December 31, 2016 | Through September 12, 2016 | 2015 | 2014 | |||||||||||||
Current income taxes (benefit) | ||||||||||||||||
Federal | $ | — | $ | — | $ | (660 | ) | $ | 2,045 | |||||||
State | — | — | 1 | 1,504 | ||||||||||||
— | — | (659 | ) | 3,549 | ||||||||||||
Deferred income tax benefit | ||||||||||||||||
Federal | — | — | (261 | ) | (130,693 | ) | ||||||||||
State | — | — | (4,451 | ) | (4,534 | ) | ||||||||||
— | — | (4,712 | ) | (135,227 | ) | |||||||||||
$ | — | $ | — | $ | (5,371 | ) | $ | (131,678 | ) |
Successor | Predecessor | |||||||||||||||||||||||||||
Period From September 13, 2016 | Period From January 1, 2016 | Year Ended December 31, | ||||||||||||||||||||||||||
Through December 31, 2016 | Through September 12, 2016 | 2015 | 2014 | |||||||||||||||||||||||||
Computed at federal statutory rate | $ | (1,854 | ) | 35.0 | % | $ | 369,111 | 35.0 | % | $ | (555,916 | ) | 35.0 | % | $ | (189,445 | ) | 35.0 | % | |||||||||
State income taxes, net of federal income tax benefit | 197 | (3.7 | )% | 1,989 | 0.2 | % | (4,438 | ) | 0.3 | % | (3,556 | ) | 0.6 | % | ||||||||||||||
Change in valuation allowance | 1,657 | (31.3 | )% | (384,692 | ) | (36.5 | )% | 554,879 | (35.0 | )% | 61,104 | (11.3 | )% | |||||||||||||||
Reorganization adjustments | — | — | % | 13,572 | 1.3 | % | — | — | % | — | — | % | ||||||||||||||||
Other, net | — | — | % | 20 | — | % | 104 | — | % | 219 | — | % | ||||||||||||||||
$ | — | — | % | $ | — | — | % | $ | (5,371 | ) | 0.3 | % | $ | (131,678 | ) | 24.3 | % |
Successor | Predecessor | |||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Deferred tax assets: | ||||||||
Property and equipment | $ | 183,303 | $ | 417,535 | ||||
Pension and postretirement benefits | 710 | 2,276 | ||||||
Share-based compensation | 28 | 7,393 | ||||||
Net operating loss (“NOL”) carryforwards | 87,622 | 222,971 | ||||||
Fair value of derivative instruments | 9,579 | — | ||||||
Deferred gains | — | 30,382 | ||||||
Other | 7,166 | 16,637 | ||||||
288,408 | 697,194 | |||||||
Less: Valuation allowance | (288,408 | ) | (662,909 | ) | ||||
Total net deferred tax assets | — | 34,285 | ||||||
Deferred tax liabilities: | ||||||||
Fair value of derivative instruments | — | 34,285 | ||||||
Total net deferred tax liabilities | — | 34,285 | ||||||
Net deferred tax liabilities | $ | — | $ | — |
13. | Exit Activities |
14. | Additional Balance Sheet Detail |
Successor | Predecessor | |||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Other current assets: | ||||||||
Tubular inventory and well materials | $ | 2,125 | $ | 2,878 | ||||
Prepaid expenses | 903 | 4,184 | ||||||
Other | — | 42 | ||||||
$ | 3,028 | $ | 7,104 | |||||
Other assets: | ||||||||
Deferred issuance costs of the credit facilities 1 | $ | 2,785 | $ | 1,572 | ||||
Assets of the SERP 2 | — | 4,123 | ||||||
Other | 2,544 | 2,655 | ||||||
$ | 5,329 | $ | 8,350 | |||||
Accounts payable and accrued liabilities: | ||||||||
Trade accounts payable | $ | 9,825 | $ | 11,603 | ||||
Drilling costs | 2,479 | 12,074 | ||||||
Royalties and revenue - related | 26,116 | 39,119 | ||||||
Compensation - related | 2,557 | 9,904 | ||||||
Interest | 55 | 15,531 | ||||||
Deferred gains on sales of assets | — | 2,593 | ||||||
Firm transportation obligation | — | 2,756 | ||||||
Reserve for bankruptcy claims | 3,922 | — | ||||||
Other | 4,743 | 9,945 | ||||||
$ | 49,697 | $ | 103,525 | |||||
Other liabilities: | ||||||||
Deferred gains on sales of assets | $ | — | $ | 82,943 | ||||
Firm transportation obligation | — | 10,705 | ||||||
Asset retirement obligations | 2,459 | 2,621 | ||||||
Defined benefit pension obligations | 1,025 | 1,129 | ||||||
Postretirement health care benefit obligations | 488 | 731 | ||||||
Compensation - related | — | 1,447 | ||||||
Deferred compensation - SERP obligations and other | — | 4,434 | ||||||
Other | 100 | 928 | ||||||
$ | 4,072 | $ | 104,938 |
15. | Fair Value Measurements |
• | Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 1 inputs generally provide the most reliable evidence of fair value. |
• | Level 2: Quoted prices in markets that are not active or inputs, which are observable, either directly or indirectly, for substantially the full term of the asset or liability. |
• | Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Successor | Predecessor | |||||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||
Senior Notes due 2019 1 | $ | — | $ | — | $ | 40,830 | $ | 300,000 | ||||||||
Senior Notes due 2020 1 | — | — | 125,473 | 775,000 | ||||||||||||
$ | — | $ | — | $ | 166,303 | $ | 1,075,000 |
Successor | ||||||||||||||||
December 31, 2016 | ||||||||||||||||
Fair Value | Fair Value Measurement Classification | |||||||||||||||
Description | Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative liabilities – current | $ | (12,932 | ) | $ | — | $ | (12,932 | ) | $ | — | ||||||
Commodity derivative liabilities – noncurrent | (14,437 | ) | — | (14,437 | ) | — |
Predecessor | ||||||||||||||||
December 31, 2015 | ||||||||||||||||
Fair Value | Fair Value Measurement Classification | |||||||||||||||
Description | Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Commodity derivative assets – current | $ | 97,956 | $ | — | $ | 97,956 | $ | — | ||||||||
Assets of the SERP | 4,123 | 4,123 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Deferred compensation – SERP obligation | (4,125 | ) | (4,125 | ) | — | — |
• | Commodity derivatives: We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for West Texas Intermediate crude oil and NYMEX Henry Hub gas closing prices as of the end of the reporting periods. We generally use the income approach, using valuation techniques that convert future cash flows to a single discounted value. Each of these is a level 2 input. |
• | Assets of SERP: During the Predecessor periods, we held various publicly traded equity securities in a Rabbi Trust as assets for funding certain deferred compensation obligations. The fair values were based on quoted market prices, which were level 1 inputs. |
• | Deferred compensation - SERP obligations: Certain of our deferred compensation obligations in the Predecessor periods were ultimately to be settled in cash based on the underlying fair value of certain assets, including those held in the Rabbi Trust. The fair values were based on quoted market prices, which were level 1 inputs. |
16. | Commitments and Contingencies |
Year | Minimum Rentals | Gathering and Intermediate Transportation | Derivatives | Other Commitments | ||||||||||||
2017 | $ | 264 | $ | 9,646 | $ | 12,932 | $ | 596 | ||||||||
2018 | 190 | 10,376 | 8,691 | 71 | ||||||||||||
2019 | 70 | 11,702 | 5,746 | — | ||||||||||||
2020 | 41 | 12,962 | — | — | ||||||||||||
2021 | — | 12,962 | — | — | ||||||||||||
Thereafter | — | 76,674 | — | — | ||||||||||||
Total | $ | 565 | $ | 134,322 | $ | 27,369 | $ | 667 |
17. | Shareholders’ Equity |
18. | Share-Based Compensation and Other Benefit Plans |
Successor | Predecessor | |||||||||||||||
Period From | Period From | |||||||||||||||
September 13, 2016 Through | January 1, 2016 Through | Year Ended December 31, | ||||||||||||||
December 31, 2016 | September 12, 2016 | 2015 | 2014 | |||||||||||||
Equity-classified awards | $ | 81 | $ | 1,511 | $ | 4,540 | $ | 3,627 | ||||||||
Liability-classified awards | — | (19 | ) | (711 | ) | 4,520 | ||||||||||
$ | 81 | $ | 1,492 | $ | 3,829 | $ | 8,147 |
Predecessor | |||
Year Ended December 31, | |||
2015 | 2014 | ||
Expected volatility | 64.6% to 69.4% | 56.2% to 63.7% | |
Dividend yield | 0.00% to 0.00% | 0.00% to 0.00% | |
Expected life | 3.5 to 4.6 years | 3.5 to 4.6 years | |
Risk-free interest rate | 0.87% to 1.54% | 0.82% to 1.63% |
Shares Under Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
Balance as of January 1, 2016 (Predecessor) | 3,083,821 | $ | 16.05 | ||||||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Forfeited or expired | — | — | |||||||||||
Canceled | (3,083,821 | ) | $ | 16.05 | |||||||||
Balance as of December 31, 2016 (Successor) | — | $ | — | — | $ | — | |||||||
Exercisable as of end of year (Successor) | — | $ | — | — | $ | — |
Deferred Common Stock Units | Weighted-Average Grant Date Fair Value | |||||
Balance as of January 1, 2016 (Predecessor) | 447,498 | $ | 7.75 | |||
Granted | — | — | ||||
Converted | — | — | ||||
Canceled | (447,498 | ) | $ | 7.75 | ||
Balance as of December 31, 2016 (Successor) | — | $ | — |
Restricted Stock Units | Weighted-Average Grant Date Fair Value | |||||
Balance as of January 1, 2016 (Predecessor) | 468,986 | $ | 6.97 | |||
Granted | 107,563 | 23.15 | ||||
Vested | — | — | ||||
Forfeited | — | — | ||||
Canceled | (468,986 | ) | $ | 6.97 | ||
Balance as of December 31, 2016 (Successor) | 107,563 | $ | 23.15 |
Predecessor | |||
Year Ended December 31, | |||
2015 | 2014 | ||
Expected volatility | 66.5% to 97.7% | 52.6% to 72.3% | |
Dividend yield | 0.0% to 0.0% | 0.0% to 0.0% | |
Risk-free interest rate | 0.01% to 1.31% | 0.02% to 1.07% |
Performance-Based Restricted Stock Units | Weighted-Average Fair Value | |||||
Balance as of January 1, 2016 (Predecessor) | 941,097 | $ | 9.19 | |||
Granted | — | — | ||||
Forfeited | — | — | ||||
Canceled | (941,097 | ) | $ | 9.19 | ||
Balance as of December 31, 2016 (Successor) | — | $ | — |
19. | Impairments |
Successor | Predecessor | |||||||||||||||
Period From | Period From | |||||||||||||||
September 13, 2016 Through | January 1, 2016 Through | Year Ended December 31, | ||||||||||||||
December 31, 2016 | September 12,2016 | 2015 | 2014 | |||||||||||||
Oil and gas properties | $ | — | $ | — | $ | 1,396,340 | $ | 791,809 | ||||||||
Other – tubular inventory and well materials | — | — | 1,084 | — | ||||||||||||
$ | — | $ | — | $ | 1,397,424 | $ | 791,809 |
Fair Value | |||||||||||||||
Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||
Year Ended December 31, 2015 | |||||||||||||||
Long-lived assets held for use | $ | 311,886 | $ | — | $ | — | $ | 311,886 | |||||||
Year Ended December 31, 2014 | |||||||||||||||
Long-lived assets held for use | $ | 65,203 | $ | — | $ | — | $ | 65,203 |
20. | Interest Expense |
Successor | Predecessor | |||||||||||||||
Period From January 13, 2016 | Period From January 1, 2016 | Year Ended December 31, | ||||||||||||||
Through December 31, 2016 | Through September 12, 2016 | 2015 | 2014 | |||||||||||||
Interest on borrowings and related fees 1 | $ | 678 | $ | 36,012 | $ | 92,490 | $ | 91,866 | ||||||||
Amortization of debt issuance costs 2 | 226 | 22,189 | 4,749 | 4,197 | ||||||||||||
Capitalized interest | (25 | ) | (183 | ) | (6,288 | ) | (7,232 | ) | ||||||||
$ | 879 | $ | 58,018 | $ | 90,951 | $ | 88,831 |
2 | Includes $20.5 million related to the accelerated write-off of unamortized debt issuance costs associated with the RBL and Senior Notes (see Note 11). |
21. | Earnings per Share |
Successor | Predecessor | |||||||||||||||
Period From September 13, 2016 | Period From January 1, 2016 | Year Ended December 31, | ||||||||||||||
Through December 31, 2016 | Through September 12, 2016 | 2015 | 2014 | |||||||||||||
Net income (loss) | $ | (5,296 | ) | $ | 1,054,602 | $ | (1,582,961 | ) | $ | (409,592 | ) | |||||
Less: Preferred stock dividends 1 | — | (5,972 | ) | (22,789 | ) | (17,148 | ) | |||||||||
Less: Induced conversion of preferred stock | — | — | — | (4,256 | ) | |||||||||||
Net income (loss) attributable to common shareholders – basic and diluted | $ | (5,296 | ) | $ | 1,048,630 | $ | (1,605,750 | ) | $ | (430,996 | ) | |||||
Weighted-average shares – basic | 14,992 | 88,013 | 73,639 | 68,887 | ||||||||||||
Effect of dilutive securities 2 | — | 36,074 | — | — | ||||||||||||
Weighted-average shares – diluted | 14,992 | 124,087 | 73,639 | 68,887 |
Predecessor | Successor | |||||||||||||||||||
First Quarter | Second Quarter | Period From July 1, 2016 Through September 12, 2016 | Period From September 13, 2016 Through September 30, 2016 | Fourth Quarter | ||||||||||||||||
2016 | ||||||||||||||||||||
Revenues 1 | $ | 30,497 | $ | 37,152 | $ | 26,661 | $ | 6,349 | $ | 32,654 | ||||||||||
Operating income (loss) 2 | $ | (12,507 | ) | $ | (614 | ) | $ | (7,735 | ) | $ | 1,137 | $ | 10,254 | |||||||
Income (loss) attributable to common shareholders 3 | $ | (36,625 | ) | $ | (64,800 | ) | $ | 1,150,055 | $ | (3,441 | ) | $ | (1,855 | ) | ||||||
Income (loss) per share – basic 4 | $ | (0.43 | ) | $ | (0.73 | ) | $ | 12.88 | $ | (0.23 | ) | $ | (0.12 | ) | ||||||
Income (loss) per share – diluted 4 | $ | (0.43 | ) | $ | (0.73 | ) | $ | 10.32 | $ | (0.23 | ) | $ | (0.12 | ) | ||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 85,941 | 89,051 | 89,292 | 14,992 | 14,992 | |||||||||||||||
Diluted | 85,941 | 89,051 | 111,458 | 14,992 | 14,992 |
Predecessor | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
2015 | |||||||||||||||
Revenues 5 | $ | 74,527 | $ | 83,616 | $ | 111,984 | $ | 35,171 | |||||||
Operating income (loss) 6 | $ | (57,876 | ) | $ | (40,982 | ) | $ | 3,604 | $ | (1,469,787 | ) | ||||
Income (loss) attributable to common shareholders | $ | (63,232 | ) | $ | (86,196 | ) | $ | 19,965 | $ | (1,476,287 | ) | ||||
Income (loss) per share – basic 4 | $ | (0.88 | ) | $ | (1.19 | ) | $ | 0.27 | $ | (19.32 | ) | ||||
Income (loss) per share – diluted 4 | $ | (0.88 | ) | $ | (1.19 | ) | $ | 0.25 | $ | (19.32 | ) | ||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 71,820 | 72,398 | 72,651 | 76,430 | |||||||||||
Diluted | 71,820 | 72,398 | 103,452 | 76,430 |
2 | The equity-classified share-based compensation expense included in the operating loss for the Predecessor periods from July 1, 2016 through September 12, 2016, includes an adjustment of $5.3 million to correct for an error that occurred in the reporting of equity-classified share-based compensation expense for the three months ended June 30, 2016. We have assessed the quantitative and qualitative factors with respect to this error as well as the effect of the correcting adjustment being recorded in the Predecessor period from July 1, 2016 through September 12, 2016 and determined that the amount and timing of the adjustment is not material to the Consolidated Financial Statements taken as a whole for any of the subject periods. |
3 | Includes reorganization items attributable to our bankruptcy proceedings of $7.4 million (expense) during the quarter ended June 30, 2016 and $1.152 billion (income) during the period from July 1, 2016 through September 12, 2016 (see Notes 4 and 5). |
5 | Includes gains (losses) on sales of assets of $50.8 million and $(9.5) million during the quarters ended September 30, 2015 and December 31, 2015, respectively. |
Oil | NGLs | Natural Gas | Total Equivalents | ||||||||
Proved Developed and Undeveloped Reserves | (MBbl) | (MBbl) | (MMcf) | (MBOE) | |||||||
December 31, 2013 (Predecessor) | 60,697 | 21,966 | 322,093 | 136,345 | |||||||
Revisions of previous estimates | (8,286 | ) | (7,727 | ) | (98,386 | ) | (32,411 | ) | |||
Extensions and discoveries | 21,427 | 6,090 | 31,842 | 32,824 | |||||||
Production | (4,644 | ) | (1,110 | ) | (13,084 | ) | (7,934 | ) | |||
Purchase of reserves | — | — | — | — | |||||||
Sale of reserves in place | (188 | ) | — | (83,200 | ) | (14,055 | ) | ||||
December 31, 2014 (Predecessor) | 69,006 | 19,219 | 159,265 | 114,769 | |||||||
Revisions of previous estimates | (34,525 | ) | (8,667 | ) | (46,859 | ) | (51,002 | ) | |||
Extensions and discoveries | 2,519 | 321 | 1,584 | 3,105 | |||||||
Production | (4,923 | ) | (1,381 | ) | (9,713 | ) | (7,923 | ) | |||
Purchase of reserves | — | — | — | — | |||||||
Sale of reserves in place | (2,615 | ) | (2,288 | ) | (62,124 | ) | (15,258 | ) | |||
December 31, 2015 (Predecessor) | 29,462 | 7,204 | 42,153 | 43,691 | |||||||
Revisions of previous estimates | (1,359 | ) | (1,225 | ) | (8,661 | ) | (4,028 | ) | |||
Extensions and discoveries | 11,529 | 1,483 | 7,196 | 14,213 | |||||||
Production | (3,021 | ) | (697 | ) | (4,006 | ) | (4,386 | ) | |||
Purchase of reserves | — | — | — | — | |||||||
Sale of reserves in place | — | — | — | — | |||||||
December 31, 2016 (Successor) | 36,611 | 6,765 | 36,682 | 49,490 | |||||||
Proved Developed Reserves: | |||||||||||
December 31, 2014 (Predecessor) | 22,054 | 8,065 | 94,565 | 45,880 | |||||||
December 31, 2015 (Predecessor) | 20,188 | 6,201 | 37,172 | 32,585 | |||||||
December 31, 2016 (Successor) | 17,734 | 4,335 | 24,899 | 26,219 | |||||||
Proved Undeveloped Reserves: | |||||||||||
December 31, 2014 (Predecessor) | 46,952 | 11,154 | 64,700 | 68,889 | |||||||
December 31, 2015 (Predecessor) | 9,274 | 1,003 | 4,981 | 11,106 | |||||||
December 31, 2016 (Successor) | 18,877 | 2,430 | 11,783 | 23,271 |
Successor | Predecessor | |||||||||||||||
December 31, | September 12, | December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Oil and gas properties: | ||||||||||||||||
Proved | $ | 251,083 | $ | 241,597 | $ | 2,678,415 | $ | 3,390,482 | ||||||||
Unproved | 4,719 | 8,338 | 6,881 | 125,676 | ||||||||||||
Total oil and gas properties | 255,802 | 249,935 | 2,685,296 | 3,516,158 | ||||||||||||
Other property and equipment | 1,230 | 1,229 | 11,330 | 55,601 | ||||||||||||
Total capitalized costs relating to oil and gas producing activities | 257,032 | 251,164 | 2,696,626 | 3,571,759 | ||||||||||||
Accumulated depreciation and depletion | (11,669 | ) | — | (2,354,405 | ) | (1,749,752 | ) | |||||||||
Net capitalized costs relating to oil and gas producing activities 1 | $ | 245,363 | $ | 251,164 | $ | 342,221 | $ | 1,822,007 |
Successor | Predecessor | |||||||||||||||
September 13 to | January 1 to | |||||||||||||||
December 31, | September 12, | Year Ended December 31, | ||||||||||||||
2016 | 2016 | 2015 | 2014 | |||||||||||||
Development costs 1 | $ | 4,887 | $ | 4,129 | $ | 294,445 | $ | 690,277 | ||||||||
Unproved property acquisition costs | — | — | 16,052 | 98,443 | ||||||||||||
Exploration costs 2 | 567 | 8,311 | 939 | 5,966 | ||||||||||||
Total costs incurred | $ | 5,454 | $ | 12,440 | $ | 311,436 | $ | 794,686 |
Crude Oil | NGLs | Natural Gas | |||||||||
$ per Bbl | $ per Bbl | $ per MMBtu | |||||||||
As of December 31, 2014 1 | $ | 94.99 | $ | 25.49 | $ | 4.35 | |||||
As of December 31, 2015 1 | $ | 50.28 | $ | 14.44 | $ | 2.70 | |||||
As of December 31, 2016 1 | $ | 42.75 | $ | 12.33 | $ | 2.48 |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Future cash inflows | $ | 1,667,971 | $ | 1,557,246 | $ | 7,589,354 | |||||
Future production costs | (673,538 | ) | (731,951 | ) | (2,239,491 | ) | |||||
Future development costs | (327,213 | ) | (206,616 | ) | (2,175,530 | ) | |||||
Future net cash flows before income tax | 667,220 | 618,679 | 3,174,333 | ||||||||
Future income tax expense | — | — | (686,562 | ) | |||||||
Future net cash flows | 667,220 | 618,679 | 2,487,771 | ||||||||
10% annual discount for estimated timing of cash flows | (349,670 | ) | (295,368 | ) | (1,305,326 | ) | |||||
Standardized measure of discounted future net cash flows | $ | 317,550 | $ | 323,311 | $ | 1,182,445 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Sales of oil and gas, net of production costs | $ | (89,080 | ) | $ | (180,455 | ) | $ | (418,300 | ) | ||
Net changes in prices and production costs | (11,971 | ) | (1,442,919 | ) | (222,349 | ) | |||||
Changes in future development costs | 59,266 | 1,376,226 | 624,068 | ||||||||
Extensions and discoveries | 35,321 | 19,396 | 261,410 | ||||||||
Development costs incurred during the period | 6,775 | 222,612 | 380,650 | ||||||||
Revisions of previous quantity estimates | (38,151 | ) | (436,898 | ) | (614,497 | ) | |||||
Purchases of reserves-in-place | — | — | — | ||||||||
Sale of reserves-in-place | — | (86,662 | ) | (44,805 | ) | ||||||
Changes in production rates | (252 | ) | (767,689 | ) | (382,015 | ) | |||||
Accretion of discount | 32,331 | 147,245 | 171,663 | ||||||||
Net change in income taxes | — | 290,010 | 162,842 | ||||||||
Net decrease | (5,761 | ) | (859,134 | ) | (81,333 | ) | |||||
Beginning of year | 323,311 | 1,182,445 | 1,263,778 | ||||||||
End of year | $ | 317,550 | $ | 323,311 | $ | 1,182,445 |
Item 9 | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
Item 9A | Controls and Procedures |
Item 9B | Other Information |
Item 10 | Directors, Executive Officers and Corporate Governance |
Item 11 | Executive Compensation |
Item 13 | Certain Relationships and Related Transactions, and Director Independence |
Item 14 | Principal Accountant Fees and Services |
Item 15 | Exhibit and Financial Statement Schedules |
(1) | Financial Statements — The financial statements filed herewith are listed in the Index to Consolidated Financial Statements on page 49 of this Annual Report on Form 10-K. |
(2.1) | Second Amended Joint Plan of Reorganization of Penn Virginia Corporation and Its Debtor Affiliates (Technical Modifications) filed pursuant to Chapter 11 of the United States Bankruptcy Code filed on August 10, 2016 with the United States Bankruptcy Court for the Eastern Division of Virginia, Richmond Division (incorporated by reference to Exhibit 2.1 to Registrant’s Current Report on Form 8-K filed on August 17, 2016). |
(2.2) | Disclosure Statement for the First Amended Joint Plan of Reorganization of Penn Virginia Corporation and Its Debtor Affiliates and Amended Exhibits Thereto filed pursuant to Chapter 11 of the United States Bankruptcy Code filed on June 28, 2016 with the United States Bankruptcy Court for the Eastern Division of Virginia, Richmond Division (incorporated by reference to Exhibit 2.1 to Registrant’s Current Report on Form 8-K filed on August 17, 2016). |
(3.1) | Second Amended and Restated Articles of Incorporation of Penn Virginia Corporation (incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K filed on September 14, 2016). |
(3.2) | Second Amended and Restated Bylaws of Penn Virginia Corporation (incorporated by reference to Exhibit 3.2 to Registrant’s Current Report on Form 8-K filed on September 14, 2016). |
(10.1) | Credit Agreement, dated as of September 12, 2016, by and among Penn Virginia Holding Corp., Penn Virginia Corporation, the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent and issuing lender (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on September 12, 2016). |
(10.2) | Pledge and Security Agreement, dated as of September 12, 2016, by Penn Virginia Holding Corp., Penn Virginia Corporation and the other grantors party thereto in favor of Wells Fargo Bank, National Association, as administrative agent for the benefit of the secured parties thereunder (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on September 12 2016). |
(10.3) | Registration Rights Agreement, dated as of September 12, 2016, between Penn Virginia Corporation and the holders party thereto (incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed on September 12 2016). |
(10.4) | Second Amended and Restated Construction and Field Gathering Agreement by and between Republic Midstream, LLC and Penn Virginia Oil & Gas, L.P. dated August 1, 2016 (incorporated by reference to Exhibit 10.5 to Registrant’s Quarterly Report on Form 10-Q filed on November 14, 2016). |
(10.5) | First Amended and Restated Crude Oil Marketing Agreement dated as of August 1, 2016, by and between Penn Virginia Oil & Gas, L.P., Republic Midstream Marketing, LLC and solely for purposes of Article V therein, Penn Virginia Corporation(incorporated by reference to Exhibit 10.6 to Registrant’s Quarterly Report on Form 10-Q filed on November 14, 2016). |
(10.7)* | Brooks Employment Agreement dated May 9, 2016 (incorporated by reference to Exhibit 10.5 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(10.7.1)* | Amendment No.1 to Employment Agreement, dated September 28, 2016 between the Company and John A. Brooks (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on October 4, 2016). |
(10.8)* | Hartman Employment Agreement dated May 9, 2016 (incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(10.9)* | Penn Virginia Corporation 2016 Management Incentive Plan (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on October 11, 2016). |
(10.9.1)* | Form of Nonqualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on October 11, 2016). |
(10.9.2)* | Form of Officer Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on January 30, 2017). |
(10.9.3)* | Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on January 30, 2017). |
(10.9.4)* | Form of Director Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on December 21, 2016). |
(10.10) | Consulting Agreement between Penn Virginia Corporation and Nancy M. Snyder (incorporated by reference to Exhibit 10.5 to Registrant’s Current Report on Form 8-K filed on October 11, 2016). |
(10.11) | Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.6 to Registrant’s Current Report on Form 8-K filed on October 11, 2016). |
(21.1) | Subsidiaries of Penn Virginia Corporation. ** |
(23.1) | Consent of Grant Thornton LLP. ** |
(23.2) | Consent of KPMG LLP. ** |
(23.3) | Consent of DeGolyer and MacNaughton. ** |
(23.4) | Consent of Wright & Company, Inc. ** |
(31.1) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. ** |
(31.2) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. ** |
(32.1) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ** |
(32.2) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ** |
(99.1) | Report of DeGolyer and MacNaughton dated February 9, 2017 concerning evaluation of oil and gas reserves. ** |
(101.INS) | XBRL Instance Document |
(101.SCH) | XBRL Taxonomy Extension Schema Document |
(101.CAL) | XBRL Taxonomy Extension Calculation Linkbase Document |
(101.DEF) | XBRL Taxonomy Extension Definition Linkbase Document |
(101.LAB) | XBRL Taxonomy Extension Label Linkbase Document |
(101.PRE) | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Management contract or compensatory plan or arrangement. |
PENN VIRGINIA CORPORATION | ||
By: | /s/ STEVEN A. HARTMAN | |
Steven A. Hartman | ||
Senior Vice President and Chief Financial Officer | ||
(Principal Financial Officer) | ||
March 16, 2017 | By: | /s/ TAMMY L. HINKLE |
Tammy L. Hinkle | ||
Vice President and Controller | ||
(Principal Accounting Officer) |
/s/ JOHN A. BROOKS | Interim Principal Executive Officer and Chief | March 16, 2017 | ||
John A. Brooks | Operating Officer (Principal Executive Officer) | |||
/s/ STEVEN A. HARTMAN | Senior Vice President and Chief Financial Officer | March 16, 2017 | ||
Steven A. Hartman | (Principal Financial Officer) | |||
/s/ TAMMY L. HINKLE | Vice President and Controller | March 16, 2017 | ||
Tammy L. Hinkle | (Principal Accounting Officer) | |||
/s/ DARIN G. HOLDERNESS | Director | March 16, 2017 | ||
Darin G. Holderness | ||||
/s/ MARC MCCARTHY | Director | March 16, 2017 | ||
Marc McCarthy | ||||
/s/ HARRY QUARLS | Chairman of the Board | March 16, 2017 | ||
Harry Quarls | ||||
/s/ JERRY R. SCHUYLER | Director | March 16, 2017 | ||
Jerry R. Schuyler |
Name | Jurisdiction of Organization | |
Penn Virginia Holding Corp. | Delaware | |
Penn Virginia Oil & Gas Corporation | Virginia | |
Penn Virginia Oil & Gas, L.P. | Texas | |
Penn Virginia Oil & Gas GP LLC | Delaware | |
Penn Virginia Oil & Gas LP LLC | Delaware | |
Penn Virginia MC Corporation | Delaware | |
Penn Virginia MC Energy L.L.C. | Delaware | |
Penn Virginia MC Operating Company L.L.C | Delaware | |
Penn Virginia MC Gathering Company L.L.C. | Oklahoma | |
Penn Virginia Resource Holdings Corp. | Delaware |
Wright & Company, Inc. | |
TX Firm Reg. No. F-12302 | |
/s/ D. Randall Wright | |
By: | D. Randall Wright |
President |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ JOHN A. BROOKS | |
John A. Brooks | |
Interim Principal Executive Officer |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ STEVEN A. HARTMAN | |
Steven A. Hartman | |
Senior Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ JOHN A. BROOKS | |
John A. Brooks | |
Interim Principle Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ STEVEN A. HARTMAN | |
Steven A. Hartman | |
Senior Vice President and Chief Financial Officer |
Estimated by DeGolyer and MacNaughton Net Proved Reserves as of December 31, 2016 | ||||||||
Oil and Condensate (Mbbl) | NGL (Mbbl) | Sales Gas (MMcf) | Oil Equivalent (Mboe) | |||||
Proved | ||||||||
Developed Producing | 17,497 | 4,305 | 24,751 | 25,927 | ||||
Developed Non-Producing | 237 | 30 | 148 | 292 | ||||
Undeveloped | 18,877 | 2,430 | 11,783 | 23,271 | ||||
Total Proved | 36,611 | 6,765 | 36,682 | 49,490 | ||||
Note: Gas is converted to oil equivalent using an energy equivalent factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent. |
Proved | ||||||||
Developed Producing (M$) | Developed Non-Producing (M$) | Undeveloped (M$) | Total Proved (M$) | |||||
Future Gross Revenue | 827,571 | 10,421 | 829,979 | 1,667,971 | ||||
Production and Ad Valorem Taxes | 63,844 | 797 | 63,487 | 128,128 | ||||
Operating Expenses | 350,177 | 2,566 | 192,667 | 545,410 | ||||
Capital and Abandonment Costs | 16,247 | 1,507 | 309,459 | 327,213 | ||||
Future Net Revenue | 397,303 | 5,551 | 264,366 | 667,220 | ||||
Present Worth at 10 Percent | 246,220 | 3,332 | 67,998 | 317,550 | ||||
Note: Future income taxes have not been taken into account in the preparation of these estimates. |
1. | That I am a Senior Vice President with DeGolyer and MacNaughton, which company did prepare the letter report addressed to Penn Virginia dated |
2. | February 9, 2017, and that I, as Senior Vice President, was responsible for the preparation of this letter report. |
3. | That I attended the University of Texas at Austin, and that I graduated with a Bachelor of Science degree in Petroleum Engineering in the year 1984; that I am a Registered Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers and the Society of Petroleum Evaluation Engineers; and that I have in excess of 32 years of experience in oil and gas reservoir studies and reserves evaluations. |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Mar. 10, 2017 |
Jun. 30, 2016 |
|
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PVAC | ||
Entity Registrant Name | PENN VIRGINIA CORP | ||
Entity Central Index Key | 0000077159 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 14,992,018 | ||
Entity Public Float | $ 872,468 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Revenues | |||||||||
Crude oil | $ 33,157 | $ 81,377 | $ 220,596 | $ 420,286 | |||||
Natural gas liquids | 2,707 | 6,064 | 16,905 | 34,552 | |||||
Natural gas | 2,790 | 6,208 | 25,479 | 58,044 | |||||
Gain (loss) on sales of assets, net | (49) | 1,261 | 41,335 | 120,769 | |||||
Other, net | 398 | (600) | 983 | 3,122 | |||||
Total revenues | 39,003 | 94,310 | 305,298 | 636,773 | |||||
Operating expenses | |||||||||
Lease operating | 5,331 | 15,626 | 42,428 | 48,298 | |||||
Gathering, processing and transportation | 3,043 | 13,235 | 23,815 | 18,294 | |||||
Production and ad valorem taxes | 2,498 | 3,490 | 16,282 | 27,990 | |||||
General and administrative | 5,088 | 38,945 | 43,328 | 49,005 | |||||
Exploration | 0 | 10,288 | 12,583 | 17,063 | |||||
Depreciation, depletion and amortization | 11,652 | 33,582 | 334,479 | 300,299 | |||||
Impairments | 0 | 0 | 1,397,424 | 791,809 | |||||
Total operating expenses | 27,612 | 115,166 | 1,870,339 | 1,252,758 | |||||
Operating income (loss) | 11,391 | (20,856) | (1,565,041) | (615,985) | |||||
Other income (expense) | |||||||||
Interest expense | (879) | (58,018) | (90,951) | (88,831) | |||||
Derivatives | (16,622) | (8,333) | 71,247 | 162,212 | |||||
Other, net | 814 | (3,184) | (3,587) | 1,334 | |||||
Reorganization Items | 0 | 1,144,993 | 0 | 0 | |||||
Income (loss) before income taxes | (5,296) | 1,054,602 | (1,588,332) | (541,270) | |||||
Income tax benefit | 0 | 0 | 5,371 | 131,678 | |||||
Net income (loss) | (5,296) | 1,054,602 | (1,582,961) | (409,592) | |||||
Preferred stock dividends | 0 | (5,972) | [1] | (22,789) | [1] | (17,148) | [1] | ||
Induced conversion of preferred stock | 0 | 0 | 0 | (4,256) | |||||
Net loss attributable to common shareholders | $ (5,296) | $ 1,048,630 | $ (1,605,750) | $ (430,996) | |||||
Net income (loss) per share: | |||||||||
Basic (in dollars per share) | $ (0.35) | $ 11.91 | $ (21.81) | $ (6.26) | |||||
Diluted (in dollars per share) | $ (0.35) | $ 8.50 | $ (21.81) | $ (6.26) | |||||
Weighted average shares outstanding – basic | 14,992 | 88,013 | 73,639 | 68,887 | |||||
Weighted average shares outstanding – diluted | 14,992 | 124,087 | 73,639 | 68,887 | |||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net income (loss) | $ (5,296) | $ 1,054,602 | $ (1,582,961) | $ (409,592) |
Other comprehensive income (loss): | ||||
Change in pension and postretirement obligations, net of tax of $39 for the Successor period from September 13, 2016 through December 31, 2016, $(226) for the Predecessor period from January 1, 2016 through September 12, 2016, and $93 and $(10), for 2015 and 2014, respectively | 73 | (421) | 173 | (18) |
Total other comprehensive income (loss), net of tax | 73 | (421) | 173 | (18) |
Comprehensive income (loss) | $ (5,223) | $ 1,054,181 | $ (1,582,788) | $ (409,610) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
8 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Change in pension and postretirement obligations, tax | $ (226) | $ 93 | $ (10) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative Liability, Noncurrent | $ 14,437 | $ 0 |
Preferred stock, par value | $ 0.01 | $ 100 |
Preferred stock, shares authorized | 5,000,000 | 100,000 |
Preferred stock liquidation preference (in dollars per share) | $ 0 | $ 10,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 45,000,000 | 228,000,000 |
Common stock, shares issued | 14,992,018 | 81,252,676 |
Treasury stock, shares | 0 | 455,689 |
Series A Preferred Stock | ||
Preferred stock, shares issued | 0 | 3,915 |
Series B Preferred Stock | ||
Preferred stock, shares issued | 0 | 27,551 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
4 Months Ended | 8 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Dividends declared on common stock, per share | |||||
Series A Preferred Stock | |||||
Dividends declared on preferred stock, per share | $ 0 | $ 0 | 300 | 600.00 | |
Series B Preferred Stock | |||||
Dividends declared on preferred stock, per share | $ 0 | $ 0 | $ 300 | $ 348.33 |
Nature of Operations |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Penn Virginia Corporation (together with its consolidated subsidiaries unless the context otherwise requires, “Penn Virginia,” the “Company,” “we,” “us” or “our”) is an independent oil and gas company engaged in the onshore exploration, development and production of oil, natural gas liquids (“NGLs”) and natural gas. Our current operations consist primarily of drilling unconventional horizontal development wells and operating our producing wells in the Eagle Ford Shale (the “Eagle Ford”) in South Texas. Our operations are substantially concentrated with over 90 percent of our production, revenues and capital expenditures attributable to this region. We also have less significant operations in Oklahoma, primarily consisting of non-operated properties in the Granite Wash. In August 2016, we terminated our remaining operations in the Marcellus Shale in Pennsylvania and are currently in the process of remediating the sites of our former wells in that region. |
Basis of Presentation |
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Dec. 31, 2016 | |||||
Basis of Presentation [Abstract] | |||||
Business Description and Basis of Presentation [Text Block] |
Comparability of Financial Statements to Prior Periods As discussed in further detail in Note 5 below, we have adopted and applied the relevant guidance provided in accounting principles generally accepted in the United States of America (“GAAP”) with respect to the accounting and financial statement disclosures for entities that have emerged from bankruptcy proceedings (“Fresh Start Accounting”). Accordingly, our Consolidated Financial Statements and Notes after September 12, 2016, are not comparable to the Consolidated Financial Statements and Notes through that date. To facilitate our financial statement presentations, we refer to the reorganized company in these Consolidated Financial Statements and Notes as the “Successor” for periods subsequent to September 12, 2016, and the “Predecessor” for periods prior to September 13, 2016. Furthermore, our Consolidated Financial Statements and Notes have been presented with a “black line” division to delineate the lack of comparability between the Predecessor and Successor. In addition, we have adopted the full cost method of accounting for our oil and gas properties effective with our adoption of Fresh Start Accounting. Accordingly, our results of operations and financial position for the Successor periods will be substantially different from our historic trends. We have applied the relevant guidance provided in GAAP with respect to the accounting and financial statement disclosures for entities that have filed petitions with the bankruptcy court and expect to reorganize as going concerns in preparing our Consolidated Financial Statements and Notes through the period ended September 12, 2016, or Predecessor periods. That guidance requires that, for periods subsequent to our bankruptcy filing on May 12, 2016, or post-petition periods, certain transactions and events that were directly related to our reorganization be distinguished from our normal business operations. Accordingly, certain revenues, expenses, realized gains and losses and provisions that were realized or incurred in connection with the bankruptcy proceedings have been included in “Reorganization items, net” in our Consolidated Statement of Operations for the period ended September 12, 2016. In addition, certain liabilities and other obligations incurred prior to May 12, 2016, or pre-petition periods, have been classified in “Liabilities subject to compromise” on our Predecessor Consolidated Balance Sheet through September 12, 2016. Further detail for our “Reorganization items, net” and “Liabilities subject to compromise” are provided in Note 5 below. Going Concern Presumption Our Consolidated Financial Statements for the Successor period have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and other commitments in the normal course of business. Subsequent Events Management has evaluated all of our activities through the issuance date of our Consolidated Financial Statements and has concluded that no subsequent events have occurred that would require recognition in our Consolidated Financial Statements or disclosure in the Notes thereto. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)2016–09, Improvements to Employee Share-based Payment Accounting (“ASU 2016–09”), which simplifies the accounting for share-based compensation. The areas for simplification that are applicable to publicly-held companies are as follows: (i) Accounting for Income Taxes, (ii) Classification of Excess Tax Benefits on the Statement of Cash Flows, (iii) Forfeitures, (iv) Minimum Statutory Tax Withholding Requirements and (v) Classification of Employee Taxes Paid on the Statement of Cash Flows when an employer withholds shares for tax-withholding purposes. The effective date of ASU 2016–09 is January 1, 2017, with early adoption permitted. We adopted ASU 2016–09 on September 12, 2016 effective upon our emergence from bankruptcy. The adoption of ASU 2016–09 did not have a significant impact on our Consolidated Financial Statements and Notes. Recently Issued Accounting Pronouncements Pending Adoption In June 2016, the FASB issued ASU 2016–13, Measurement of Credit Losses on Financial Instruments (“ASU 2016–13”), which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016–13 is required to be adopted using the modified retrospective method by January 1, 2020, with early adoption permitted for fiscal periods beginning after December 15, 2018. In contrast to current guidance, which considers current information and events and utilizes a probable threshold, (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. ASU 2016–13 will have applicability to our accounts receivable portfolio, particularly those receivables attributable to our joint interest partners. At this time, we do not anticipate that the adoption of ASU 2016–13 will have a significant impact on our Consolidated Financial Statements and related disclosures; however, we are currently in the early stages of evaluating the requirements and the period for which we will adopt the standard. In February 2016, the FASB issued ASU 2016–02, Leases (“ASU 2016–02”), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. ASU 2016–02 also will require disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The effective date of ASU 2016–02 is January 1, 2019, with early adoption permitted. We believe that ASU 2016–02 will likely be applicable to our oil and natural gas gathering commitment arrangements as described in Note 16, our existing leases for office facilities and certain office equipment and potentially to certain drilling rig and completion contracts with terms in excess of twelve months to the extent we may have such contracts in the future. Our oil and natural gas gathering arrangements are fairly complex and involve multiple elements that could be construed as leases. Accordingly, we are continuing to evaluate the effect that ASU 2016–02 will have on our Consolidated Financial Statements and related disclosures as well as the period for which we will adopt the standard, however, at this time, we believe that we will likely adopt ASU 2016–02 in 2019. In May 2014, the FASB issued ASU 2014–09, Revenues from Contracts with Customers (“ASU 2014–09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014–09 will replace most existing revenue recognition guidance in GAAP when it becomes effective on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. While traditional commodity sales transactions, property conveyances and joint interest arrangements in the oil and gas industry are not expected to be significantly impacted by ASU 2014–09, natural gas imbalances and other non-product revenues, including our ancillary marketing, gathering and transportation and water service revenues could be affected. Accordingly, we are continuing to evaluate the effect that ASU 2014–09 will have on our Consolidated Financial Statements and related disclosures, with a more focused analysis on these other revenue sources, which we do not believe are significant. We are also continuing to monitor developments regarding ASU 2014–09 that are unique to our industry. We fully expect to adopt ASU 2014–09 in 2018. |
Summary of Significant Accounting Policies |
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Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation Our Consolidated Financial Statements include the accounts of Penn Virginia and all of its subsidiaries. Intercompany balances and transactions have been eliminated. Use of Estimates Preparation of our Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include certain asset and liability valuations as further described in these Notes. Actual results could differ from those estimates. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Derivative Instruments From time to time, we utilize derivative instruments to mitigate our financial exposure to commodity price and interest rate volatility. The derivative instruments, which are placed with financial institutions that we believe are of acceptable credit risk, take the form of collars, swaps and swaptions. All derivative transactions are subject to our risk management policy, which has been reviewed and approved by our Predecessor board of directors. All derivative instruments are recognized in our Consolidated Financial Statements at fair value. The fair values of our derivative instruments are determined based on discounted cash flows derived from quoted forward prices. Our derivative instruments are not formally designated as hedges. We recognize changes in fair value in earnings currently as a component of the Derivatives caption in our Consolidated Statements of Operations. We have experienced and could continue to experience significant changes in the amount of derivative gains or losses recognized due to fluctuations in the value of these commodity derivative contracts, which fluctuate with changes in commodity prices and interest rates. Oil and Gas Properties We have adopted the full cost method of accounting for our oil and gas properties effective with our adoption of Fresh Start Accounting. Under this method, all productive and nonproductive costs incurred in the exploration, development and acquisition of oil and gas reserves are capitalized. Such costs may be incurred both prior to and after the acquisition of a property and include lease acquisitions, geological and geophysical, or seismic, drilling, completion and equipment costs. Internal costs incurred that are directly attributable to exploration, development and acquisition activities undertaken by us for our own account, and which are not attributable to production, general corporate overhead or similar activities are also capitalized. Future development costs are estimated on a property-by-property basis based on current economic conditions and are amortized as a component of depreciation, depletion and amortization (“DD&A”). Unproved properties not being amortized include unevaluated leasehold costs and associated capitalized interest. These costs are reviewed quarterly to determine whether or not and to what extent proved reserves have been assigned to a property or if an impairment has occurred due to lease expirations, general economic conditions and other factors, in which case the related costs along with associated capitalized interest are reclassified to the proved oil and gas properties subject to DD&A. At the end of each quarterly reporting period, the unamortized cost of our oil and gas properties, net of deferred income taxes, is limited to the sum of the estimated discounted future net revenues from proved properties adjusted for costs excluded from amortization and related income taxes (a “Ceiling Test”). The estimated discounted future net revenues are determined using the prior 12-month’s average price based on closing prices on the first day of each month, adjusted for differentials, discounted at 10%. The calculation of the Ceiling Test and provision for DD&A are based on estimates of proved reserves. There are significant uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production, timing and plan of development. For the periods prior to the Effective Date, we applied the successful efforts method of accounting for our oil and gas properties. Under this method, costs of acquiring properties, costs of drilling successful exploration wells and development costs were capitalized. Seismic costs, delay rentals and costs to drill exploratory wells that did not find proved reserves were expensed as oil and gas exploration. We carried the costs of exploratory wells as assets if the wells had found a sufficient quantity of reserves to justify its completion as a producing well and as long as we were making sufficient progress assessing the reserves and the economic and operating viability of the project. For certain projects, it may have taken us more than one year to evaluate the future potential of the exploratory well and make determinations of their economic viability. Our ability to move forward on projects was dependent on gaining access to transportation or processing facilities or obtaining permits and government or partner approval, the timing of which was beyond our control. In such cases, exploratory well costs remained suspended as long as we were actively pursuing access to the necessary facilities or receiving such permits and approvals and believed that they would be obtained. We assessed the status of suspended exploratory well costs on a quarterly basis. Depreciation, Depletion and Amortization DD&A of our oil and gas properties is computed using the units-of-production method. We apply this method by multiplying the unamortized cost of our proved oil and gas properties, net of estimated salvage plus future development costs, by a rate determined by dividing the physical units of oil and gas produced during the period by the total estimated units of proved oil and gas reserves at the beginning of the period. DD&A of our proved properties while we applied the successful efforts method during the Predecessor periods was computed using the units-of-production method. Historically, we adjusted our depletion rate throughout the year as new data became available and in the fourth quarter based on our year-end reserve report through December 31, 2015. Other Property and Equipment Other property and equipment consists primarily of gathering systems and related support equipment. Property and equipment are carried at cost and include expenditures for additions and improvements, such as roads and land improvements, which increase the productive lives of existing assets. Maintenance and repair costs are charged to expense as incurred. Renewals and betterments, which extend the useful life of the properties, are capitalized. We compute depreciation and amortization of property and equipment using the straight-line balance method over the estimated useful life of each asset as follows: Gathering systems – fifteen to twenty years and Other property and equipment – three to twenty years. Impairment of Long-Lived Assets While we applied the successful efforts method of accounting for our oil and gas properties during the Predecessor periods, we reviewed our assets for impairment when events or circumstances indicated a possible decline in the recoverability of the carrying value of the properties. If the carrying value of the asset was determined to be impaired, we reduced the asset to its fair value. Fair value may have been estimated using comparable market data, a discounted cash flow method, or a combination of the two. In the discounted cash flow method, estimated future cash flows were based on management’s expectations for the future and included estimates of future production, commodity prices based on published forward commodity price curves as of the date of the estimate, operating and development costs, intent to develop properties and a risk-adjusted discount rate. We reviewed oil and gas properties for impairment periodically when events and circumstances indicated a decline in the recoverability of the carrying value of such properties, such as a downward revision of the reserve estimates or lower commodity prices. We estimated the future cash flows expected in connection with the properties and compared such future cash flows to the carrying amounts of the properties to determine if the carrying amounts were recoverable. Performing the impairment evaluations required use of judgments and estimates since the results were dependent on future events. Such events included estimates of proved and unproved reserves, future commodity prices, the timing of future production, capital expenditures and intent to develop properties, among others. The costs of unproved leaseholds, including associated interest costs for the period activities were in progress to bring projects to their intended use, were capitalized pending the results of exploration efforts. Unproved properties whose acquisition costs were insignificant to total oil and gas properties were amortized in the aggregate over the lesser of five years or the average remaining lease term and the amortization was charged to exploration expense. We assessed unproved properties whose acquisition costs were relatively significant, if any, for impairment on a stand-alone basis. As exploration work progressed and the reserves on properties were proved, capitalized costs of these properties became subject to depreciation and depletion. If the exploration work was unsuccessful, the capitalized costs of the properties related to the unsuccessful work was charged to exploration expense. The timing of any write-downs of any significant unproved properties depended upon the nature, timing and extent of future exploration and development activities and their results. Asset Retirement Obligations We recognize the fair value of a liability for an asset retirement obligation (“ARO”) in the period in which it is incurred. Associated asset retirement costs are capitalized as part of the carrying cost of the asset. Our AROs relate to the plugging and abandonment of oil and gas wells and the associated asset is recorded as a component of oil and gas properties. After recording these amounts, the ARO is accreted to its future estimated value, and the additional capitalized costs are depreciated over the productive life of the assets. Both the accretion of the ARO and the depreciation of the related long-lived assets are included in the DD&A expense caption in our Consolidated Statements of Operations. Income Taxes We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Using this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates. In assessing our deferred tax assets, we consider whether a valuation allowance should be recorded for some or all of the deferred tax assets which may not be realized. The ultimate realization of deferred tax assets is assessed at each reporting period and is dependent upon the generation of future taxable income and our ability to utilize tax credits and operating loss carryforwards during the periods in which the temporary differences become deductible. We also consider the scheduled reversal of deferred tax liabilities and available tax planning strategies. We recognize interest attributable to income taxes, to the extent they arise, as a component of interest expense and penalties as a component of income tax expense. We are subject to ongoing tax examinations in numerous domestic jurisdictions. Accordingly, we may record incremental tax expense based upon the more-likely-than-not outcomes of uncertain tax positions. In addition, when applicable, we adjust the previously recorded tax expense to reflect examination results when the position is effectively settled. Our ongoing assessments of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can increase or decrease our effective tax rate, as well as impact our operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. Revenue Recognition We record revenues associated with sales of crude oil, NGLs and natural gas when title passes to the customer. We recognize natural gas sales revenues from properties in which we have an interest with other producers on the basis of our net revenue interest (“entitlement” method of accounting). Natural gas imbalances occur when we sell more or less than our entitled ownership percentage of natural gas production. We treat any amount received in excess of our share as a liability. If we take less than we are entitled to take, we record the under-delivery as a receivable. As a result of the numerous requirements necessary to gather information from purchasers or various measurement locations, calculate volumes produced, perform field and wellhead allocations and distribute and disburse funds to various working interest partners and royalty owners, the collection of revenues from oil and gas production may take up to 60 days following the month of production. Therefore, we make accruals for revenues and accounts receivable based on estimates of our share of production, particularly from properties that are operated by our partners. We record any differences, which historically have not been significant, between the actual amounts ultimately received and the original estimates in the period they become finalized. Share-Based Compensation Our stock compensation plans permit the grant of incentive and nonqualified stock options, common stock, deferred common stock units, restricted stock and restricted stock units to our employees and directors. We measure the cost of employee services received in exchange for an award of equity-classified instruments based on the grant-date fair value of the award. Compensation cost associated with the liability-classified awards is measured at the end of each reporting period and recognized based on the period of time that has elapsed during the applicable performance period. |
Bankruptcy Proceedings (Notes) |
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Bankruptcy Proceedings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block] | Bankruptcy Proceedings and Emergence On May 12, 2016 (the “Petition Date”), we and eight of our subsidiaries (the “Chapter 11 Subsidiaries”) filed voluntary petitions (In re Penn Virginia Corporation, et al, Case No. 16-32395) seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”). On August 11, 2016 (the “Confirmation Date”), the Bankruptcy Court confirmed our Second Amended Joint Chapter 11 Plan of Reorganization of Penn Virginia Corporation and its Debtor Affiliates (the “Plan”), and we subsequently emerged from bankruptcy on September 12, 2016 (the “Effective Date”). Debtors-In-Possession. From the Petition Date through the Effective Date, we and the Chapter 11 Subsidiaries operated our business as debtors-in-possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court granted all “first day” motions filed by us and the Chapter 11 Subsidiaries, which were designed primarily to minimize the impact of the bankruptcy proceedings on our normal day-to-day operations, our customers, regulatory agencies, including taxing authorities, and employees. As a result, we were able to conduct normal business activities and pay all associated obligations for the post-petition period and we were also authorized to pay and have paid (subject to limitations applicable to payments of certain pre-petition obligations) pre-petition employee wages and benefits, pre-petition amounts owed to certain lienholders, amounts due to taxing authorities for production and other related taxes and funds belonging to third parties, including royalty and working interest holders. Pre-Petition Agreements. Immediately prior to the Petition Date, the holders (the “Ad Hoc Committee”) of approximately 86 percent of the $1,075 million principal amount of our 7.25% Senior Notes due 2019 (the “2019 Senior Notes”) and 8.50% Senior Notes due 2020 (the “2020 Senior Notes” and, together with the 2019 Senior Notes, the “Senior Notes”) agreed to a restructuring support agreement (the “RSA”) that set forth the general framework of the Plan and the timeline for the bankruptcy proceedings. In addition, we entered into a backstop commitment agreement (the “Backstop Commitment Agreement”) with the parties thereto (collectively, the “Backstop Parties”), pursuant to which the Backstop Parties committed to provide a $50 million commitment to backstop a rights offering (the “Rights Offering”) that was conducted in connection with the Plan. Plan of Reorganization. Pursuant to the terms of the Plan, which was supported by us, the holders (the “RBL Lenders”) of 100 percent of the claims attributable to our pre-petition credit agreement (as amended, the “RBL”), the Ad Hoc Committee and the Official Committee of Unsecured Claimholders (the “UCC”), the following transactions were completed subsequent to the Confirmation Date and prior to or at the Effective Date:
While our emergence from bankruptcy is effectively complete, certain administrative and claims resolution activities will continue under the authority of the Bankruptcy Court until complete. As of March 10, 2017, certain claims, including secured tax and other priority, administrative and convenience claims were still in the process of resolution. While most of these matters are unsecured claims for which shares of New Common Stock have been allocated, certain of these matters must be settled with cash payments. As of December 31, 2016, we had $3.9 million reserved for outstanding claims to be potentially settled in cash. This reserve is included as a component of “Accounts payable and accrued liabilities” on our Consolidated Balance Sheet. |
Fresh Start Accounting (Notes) |
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Fresh Start Accounting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fresh Start Accounting [Text Block] | Fresh Start Accounting We adopted Fresh Start Accounting on the Effective Date in connection with our emergence from bankruptcy. As referenced below, our reorganization value of $334.0 million, immediately prior to emergence was substantially less than our post-petition liabilities and allowed claims. Furthermore and in connection with our reorganization, we experienced a change in control as the outstanding common and preferred shares of the Predecessor were canceled and substantially all of the New Common Stock was issued to the Predecessor’s creditors, primarily former holders of our Senior Notes. Accordingly, the holders of the Predecessor’s common and preferred shares effectively received no shares of the Successor. The adoption of Fresh Start Accounting results in a new reporting entity, the Successor, for financial reporting purposes. The presentation is analogous to that of a new business entity such that the Successor is presented with no beginning retained earnings or deficit on the Effective Date. Reorganization Value Reorganization value represents the fair value of the Successor’s total assets prior to the consideration of liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after a restructuring. The reorganization value, which was derived from the Successor’s enterprise value, was allocated to our individual assets based on their estimated fair values. Enterprise value represents the estimated fair value of an entity’s long term debt and shareholders’ equity. The Successor’s enterprise value, as approved by the Bankruptcy Court in support of the Plan, was estimated to be within a range of $218 million to $382 million with a mid-point value of $300 million. Based on the estimates and assumptions utilized in our Fresh Start Accounting process, we estimated the Successor’s enterprise value to be approximately $266.2 million after the consideration of cash and cash equivalents on hand at the Effective Date. The following table reconciles the enterprise value, net of cash and cash equivalents, to the estimated fair value of our Successor common stock as of the Effective Date:
The following table reconciles the enterprise value to the reorganization value of our Successor assets as of the Effective Date:
Valuation Process Our valuation analysis was prepared with the assistance of an independent third-party consultant utilizing reserve information prepared by our independent reserve engineers, internal development plans and schedules, other internal financial information and projections and the application of standard valuation techniques including risked net asset value analysis and comparable public company metrics. Our principal assets include the Successor’s oil and gas properties. We determined the fair value of our oil and gas properties based on the discounted cash flows expected to be generated from these assets. Our analyses were based on market conditions and reserves in place as confirmed by our independent petroleum engineers. The proved reserves were segregated into various geographic regions, including sub-regions within the Eagle Ford where a substantial portion of our assets are located, for which separate risk factors were determined based on geological characteristics. Due to the limited drilling plans that we had in place, proved undeveloped locations were risked accordingly. Future cash flows were estimated by using NYMEX forward prices for West Texas Intermediate crude oil and Henry Hub natural gas with inflation adjustments applied to periods beyond a five-year horizon. These prices were adjusted for differentials realized by us for location and product quality. Gathering and transportation costs were estimated based on agreements that we have in place and development and operating costs were based on our most recent experience and adjusted for inflation in future years. The risk-adjusted after-tax cash flows were discounted at a rate of 13.5%. This rate was determined from a weighted-average cost of capital computation which utilized a blended expected cost of debt and expected returns on equity for similar industry participants. Plugging and abandonment costs were also identified and measured in this process in order to determine the fair value of the Successor’s AROs attributable to our proved developed reserves on the Effective Date. Based on this valuation process, we determined fair values of $121.9 million for our proved reserves and $2.7 million for the related AROs. With respect to the valuation of our undeveloped acreage, we segregated our current lease holdings in the Eagle Ford into prospect regions in which we have significant developed acreage and those in which we have not yet initiated any significant drilling activity. For those prospects within previously developed regions, we applied a multiple based on recent transactions involving acreage deemed comparable to our acreage for each targeted formation. Based on this valuation process, we determined a fair value of $92.5 million for our undeveloped acreage within previously developed regions of the Eagle Ford. For those lease holdings in other areas of the Eagle Ford, we disregarded those prospects for which lease expirations were to occur during 2016 as well as those for which future drilling was considered uneconomical at then current commodity prices. A reduced multiple was then applied to this adjusted undeveloped acreage consistent with recent transactions for acreage deemed comparable to our acreage resulting in a fair value of $8.3 million. We attributed no value to our limited undeveloped lease holdings in all areas other than the Eagle Ford. Our remaining equipment and other fixed assets were valued at $26.7 million primarily using a cost approach that incorporated depreciation and obsolescence to the extent applicable on an asset-by-asset basis. The most significant of these assets is our water facility in South Texas which is integral to our regional operations. Accordingly, this asset, for which we determined a fair value of $23.4 million, is included in our full cost pool for purposes of determining our DD&A attributable to our oil and gas production. Certain assets, particularly personal property including office equipment and vehicles, among others, were valued based on market data for comparable assets to the extent such information was available. The remaining reorganization value is attributable to certain natural gas imbalance receivables, cash and cash equivalents, working capital assets including accounts receivable, prepaid items, current derivative assets and debt issuance costs. Our natural gas imbalance receivables, which are fully attributable to our Mid-Continent operations in the Granite Wash, were valued using NYMEX spot prices for Henry Hub natural gas adjusted for basis differentials for transportation. Our accounts receivable, including amounts receivable from our joint venture partners, were subjected to analysis on an individual basis and reserved to the extent we believe was appropriate. Collectively, these remaining assets, including our current derivative assets which are marked-to-market on a monthly basis, are stated at their fair values on the Effective Date. The reorganization value also includes $3.0 million of issuance costs attributable to the Credit Facility under which we initially borrowed $75.4 million. This amount has been capitalized in accordance with GAAP as it represents costs attributable to the access to credit over the term of the Credit Facility. Our liabilities on the Effective Date include the aforementioned borrowings under the Credit Facility, working capital liabilities including accounts payable and accrued liabilities, a reserve for certain litigation matters, pension and health care obligations attributable to certain retirees, AROs, and derivative liabilities. As the Credit Facility is current and is a variable-rate financial instrument, it is stated at its fair value. Our working capital liabilities and litigation reserve are ordinary course obligations and their carrying amounts approximate their fair values. We revalued our retiree obligations based on data from our independent actuaries and they have been stated at their fair values. The AROs were valued in connection with the valuation process attributable to our oil and gas reserves as discussed above. Finally, our derivative liabilities have also been stated at their fair value as they are marked-to-market on a monthly basis. Successor Balance Sheet The following table reflects the reorganization and application of Fresh Start Accounting adjustments on our Consolidated Balance Sheet as of September 12, 2016:
Reorganization Adjustments
Fresh Start Adjustments
Reorganization Items. As described above in Note 2, our Consolidated Statements of Operations for the period ended September 12, 2016 include “Reorganization items, net,” which reflects gains recognized on the settlement of liabilities subject to compromise and costs and other expenses associated with the bankruptcy proceedings, principally professional fees, and the costs associated with the DIP Facility. These post-petition costs for professional fees, as well as administrative fees charged by the U.S. Trustee, have been reported in “Reorganization items, net” in our Consolidated Statement of Operations as described above. Similar costs that were incurred during the pre-petition periods have been reported in “General and administrative” expenses. The following table summarizes the components included in “Reorganization items, net” in our Consolidated Statements of Operations for the period presented:
Fresh Start Accounting We adopted Fresh Start Accounting on the Effective Date in connection with our emergence from bankruptcy. As referenced below, our reorganization value of $334.0 million, immediately prior to emergence was substantially less than our post-petition liabilities and allowed claims. Furthermore and in connection with our reorganization, we experienced a change in control as the outstanding common and preferred shares of the Predecessor were canceled and substantially all of the New Common Stock was issued to the Predecessor’s creditors, primarily former holders of our Senior Notes. Accordingly, the holders of the Predecessor’s common and preferred shares effectively received no shares of the Successor. The adoption of Fresh Start Accounting results in a new reporting entity, the Successor, for financial reporting purposes. The presentation is analogous to that of a new business entity such that the Successor is presented with no beginning retained earnings or deficit on the Effective Date. Reorganization Value Reorganization value represents the fair value of the Successor’s total assets prior to the consideration of liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after a restructuring. The reorganization value, which was derived from the Successor’s enterprise value, was allocated to our individual assets based on their estimated fair values. Enterprise value represents the estimated fair value of an entity’s long term debt and shareholders’ equity. The Successor’s enterprise value, as approved by the Bankruptcy Court in support of the Plan, was estimated to be within a range of $218 million to $382 million with a mid-point value of $300 million. Based on the estimates and assumptions utilized in our Fresh Start Accounting process, we estimated the Successor’s enterprise value to be approximately $266.2 million after the consideration of cash and cash equivalents on hand at the Effective Date. The following table reconciles the enterprise value, net of cash and cash equivalents, to the estimated fair value of our Successor common stock as of the Effective Date:
The following table reconciles the enterprise value to the reorganization value of our Successor assets as of the Effective Date:
Valuation Process Our valuation analysis was prepared with the assistance of an independent third-party consultant utilizing reserve information prepared by our independent reserve engineers, internal development plans and schedules, other internal financial information and projections and the application of standard valuation techniques including risked net asset value analysis and comparable public company metrics. Our principal assets include the Successor’s oil and gas properties. We determined the fair value of our oil and gas properties based on the discounted cash flows expected to be generated from these assets. Our analyses were based on market conditions and reserves in place as confirmed by our independent petroleum engineers. The proved reserves were segregated into various geographic regions, including sub-regions within the Eagle Ford where a substantial portion of our assets are located, for which separate risk factors were determined based on geological characteristics. Due to the limited drilling plans that we had in place, proved undeveloped locations were risked accordingly. Future cash flows were estimated by using NYMEX forward prices for West Texas Intermediate crude oil and Henry Hub natural gas with inflation adjustments applied to periods beyond a five-year horizon. These prices were adjusted for differentials realized by us for location and product quality. Gathering and transportation costs were estimated based on agreements that we have in place and development and operating costs were based on our most recent experience and adjusted for inflation in future years. The risk-adjusted after-tax cash flows were discounted at a rate of 13.5%. This rate was determined from a weighted-average cost of capital computation which utilized a blended expected cost of debt and expected returns on equity for similar industry participants. Plugging and abandonment costs were also identified and measured in this process in order to determine the fair value of the Successor’s AROs attributable to our proved developed reserves on the Effective Date. Based on this valuation process, we determined fair values of $121.9 million for our proved reserves and $2.7 million for the related AROs. With respect to the valuation of our undeveloped acreage, we segregated our current lease holdings in the Eagle Ford into prospect regions in which we have significant developed acreage and those in which we have not yet initiated any significant drilling activity. For those prospects within previously developed regions, we applied a multiple based on recent transactions involving acreage deemed comparable to our acreage for each targeted formation. Based on this valuation process, we determined a fair value of $92.5 million for our undeveloped acreage within previously developed regions of the Eagle Ford. For those lease holdings in other areas of the Eagle Ford, we disregarded those prospects for which lease expirations were to occur during 2016 as well as those for which future drilling was considered uneconomical at then current commodity prices. A reduced multiple was then applied to this adjusted undeveloped acreage consistent with recent transactions for acreage deemed comparable to our acreage resulting in a fair value of $8.3 million. We attributed no value to our limited undeveloped lease holdings in all areas other than the Eagle Ford. Our remaining equipment and other fixed assets were valued at $26.7 million primarily using a cost approach that incorporated depreciation and obsolescence to the extent applicable on an asset-by-asset basis. The most significant of these assets is our water facility in South Texas which is integral to our regional operations. Accordingly, this asset, for which we determined a fair value of $23.4 million, is included in our full cost pool for purposes of determining our DD&A attributable to our oil and gas production. Certain assets, particularly personal property including office equipment and vehicles, among others, were valued based on market data for comparable assets to the extent such information was available. The remaining reorganization value is attributable to certain natural gas imbalance receivables, cash and cash equivalents, working capital assets including accounts receivable, prepaid items, current derivative assets and debt issuance costs. Our natural gas imbalance receivables, which are fully attributable to our Mid-Continent operations in the Granite Wash, were valued using NYMEX spot prices for Henry Hub natural gas adjusted for basis differentials for transportation. Our accounts receivable, including amounts receivable from our joint venture partners, were subjected to analysis on an individual basis and reserved to the extent we believe was appropriate. Collectively, these remaining assets, including our current derivative assets which are marked-to-market on a monthly basis, are stated at their fair values on the Effective Date. The reorganization value also includes $3.0 million of issuance costs attributable to the Credit Facility under which we initially borrowed $75.4 million. This amount has been capitalized in accordance with GAAP as it represents costs attributable to the access to credit over the term of the Credit Facility. Our liabilities on the Effective Date include the aforementioned borrowings under the Credit Facility, working capital liabilities including accounts payable and accrued liabilities, a reserve for certain litigation matters, pension and health care obligations attributable to certain retirees, AROs, and derivative liabilities. As the Credit Facility is current and is a variable-rate financial instrument, it is stated at its fair value. Our working capital liabilities and litigation reserve are ordinary course obligations and their carrying amounts approximate their fair values. We revalued our retiree obligations based on data from our independent actuaries and they have been stated at their fair values. The AROs were valued in connection with the valuation process attributable to our oil and gas reserves as discussed above. Finally, our derivative liabilities have also been stated at their fair value as they are marked-to-market on a monthly basis. |
Acquisitions and Divestitures |
12 Months Ended |
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Dec. 31, 2016 | |
Acquisitions and Divestitures [Abstract] | |
Acquisitions and Divestitures | Divestitures South Texas Properties In October 2015, we sold certain non-core Eagle Ford properties for $12.5 million net of transaction costs and customary closing adjustments. We recognized a loss of $9.5 million on this transaction. Mid-Continent Properties In October 2015, we sold certain properties in Oklahoma that were outside of our core Granite Wash operating region for approximately $0.1 million which represented their approximate carrying values. East Texas Properties In August 2015, we sold our Cotton Valley and Haynesville Shale assets in East Texas and received cash proceeds of approximately $73 million, net of transaction costs and customary closing adjustments. The effective date of the sale was May 1, 2015 and we recognized a gain of approximately $43 million. The carrying value of the net assets disposed in this transaction was $29.5 million, including oil and gas properties and other assets of $33.3 million, net of related AROs of $3.8 million. The net pre-tax operating income (loss), excluding the gain on sale and impairment charges, attributable to the East Texas assets was $1.3 million and $(27.5) million for the years ended December 31, 2015 and 2014, respectively. The net proceeds from this transaction were used to pay down a portion of our outstanding borrowings under the RBL. Oil Gathering System Construction Rights In July 2014, we sold the rights to construct a crude oil gathering and intermediate transportation system in South Texas to Republic Midstream, LLC (“Republic Midstream”) for proceeds of $147.1 million, net of transaction costs. Concurrent with the sale, we entered into long-term agreements with Republic Midstream to provide us gathering and intermediate transportation services for a substantial portion of our South Texas crude oil and condensate production. We realized a gain of $147.1 million, of which $63.0 million was recognized upon the closing of the transaction and the remaining $84.1 million was deferred. In September 2015, the gathering agreement with Republic was amended to reduce the number of wells initially required to be connected to the pipeline system, provide for alternative transportation in areas that would not be served by the pipeline and also reduce the gathering fees. As a result of this amendment, we recognized $8.4 million of the deferred gain in September 2015. We recognized $1.7 million of the deferred gain in the Predecessor period of 2016 prior to emergence. Prior to the Effective Date, the Bankruptcy Court approved a settlement and we entered into certain amendments to the agreements with Republic (see Note 16). These actions did not impact the amortization of any gain prior to the Effective Date. In connection with our adoption of Fresh Start Accounting, we accelerated the recognition of the remaining deferred gain of $74.1 million as a Fresh Start Accounting adjustment included in Reorganization items, net in our Predecessor Statement of Operations for the 2016 period. Mississippi Properties In July 2014, we sold our Selma Chalk assets in Mississippi for proceeds of $67.9 million, net of transaction costs and customary closing adjustments. An impairment charge of $117.9 million was recognized in the second quarter of 2014 with respect to these assets. Natural Gas Gathering and Gas Lift Assets In January 2014, we sold our natural gas gathering and gas lift assets in South Texas to American Midstream Partners, LP (“AMID”) for proceeds of approximately $96 million, net of transaction costs. Concurrent with the sale, we entered into a long-term agreement with AMID to provide us natural gas gathering, compression and gas lift services for a substantial portion of our South Texas natural gas production. We realized a gain of $67.3 million, of which $56.7 million was recognized upon the closing of the transaction and the remainder was deferred and was being amortized over a twenty-five year period. We recognized $0.4 million of the deferred gain in both 2015 and 2014. We recognized $0.3 million of the deferred gain in the Predecessor period of 2016 prior to our emergence from bankruptcy. In connection with our adoption of Fresh Start Accounting, we accelerated the recognition of the remaining deferred gain of $9.5 million as a Fresh Start Accounting adjustment included in Reorganization items, net in our Predecessor Statement of Operations for the 2016 period. Other Assets During 2014, we also received net proceeds of $2.9 million and recognized net gains of $0.2 million from the sale of various non-core oil and gas properties and tubular inventory and well materials. |
Accounts Receivable and Major Customers |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Major Customers | Accounts Receivable and Major Customers The following table summarizes our accounts receivable by type as of the dates presented:
For the year ended December 31, 2016, three customers accounted for $122.7 million, or approximately 93% of our consolidated product revenues. The revenues generated from these customers during 2016 were $93.5 million, $15.7 million and $13.5 million or 71%, 12%, and 10% of the consolidated total, respectively. As of December 31, 2016, $16.7 million, or approximately 81% of our consolidated accounts receivable from customers was related to these customers. For the year ended December 31, 2015, three customers accounted for $168.9 million, or approximately 64% of our consolidated product revenues. The revenues generated from these customers during 2015 were $74.5 million, $63.5 million and $30.9 million, or approximately 28%, 24% and 12% of the consolidated total, respectively. As of December 31, 2015, $21.1 million, or approximately 90% of our consolidated accounts receivable from customers was related to these customers. No significant uncertainties exist related to the collectability of amounts owed to us by any of these customers. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We utilize derivative instruments to mitigate our financial exposure to crude oil and natural gas price volatility. Our derivative instruments are not formally designated as hedges in the context of U.S. GAAP. Commodity Derivatives We typically utilize collars, swaps and swaptions, which are placed with financial institutions that we believe are acceptable credit risks, to hedge against the variability in cash flows associated with anticipated sales of our future oil and gas production. While the use of derivative instruments limits the risk of adverse price movements, such use may also limit future revenues from favorable price movements. The counterparty to a collar or swap contract is required to make a payment to us if the settlement price for any settlement period is below the floor or swap price for such contract. We are required to make a payment to the counterparty if the settlement price for any settlement period is above the ceiling or swap price for such contract. Neither party is required to make a payment to the other party if the settlement price for any settlement period is equal to or greater than the floor price and equal to or less than the ceiling price for such collar contract. We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for NYMEX Henry Hub gas and West Texas Intermediate crude oil closing prices as of the end of the reporting period. The discounted cash flows utilize discount rates adjusted for the credit risk of our counterparties if the derivative is in an asset position, and our own credit risk if the derivative is in a liability position. We terminated all of our pre-petition derivative contracts from March 2016 through May 2016 for $63.0 million and reduced our amounts outstanding under the RBL by $52.0 million. In connection with these transactions, the counterparties to the derivative contracts, which were also affiliates of lenders under the RBL, transferred the cash proceeds that were used for RBL repayments directly to the administrative agent under the RBL. Accordingly, all of these RBL repayments have been presented as non-cash financing activities in our Consolidated Statement of Cash Flows for the period January 1, 2016 through September 12, 2016. On May 13, 2016, the Bankruptcy Court approved our motion to enter into new commodity derivative contracts. Accordingly, we hedged a substantial portion of our future crude oil production through the end of 2019, as required in the RSA, at a weighted-average price of approximately $49.12 per barrel. We are currently unhedged with respect to natural gas as well as NGL production. The following table sets forth our commodity derivative positions as of December 31, 2016:
Financial Statement Impact of Derivatives The impact of our derivatives activities on income is included in the “Derivatives” caption on our Consolidated Statements of Operations. The following table summarizes the effects of our derivative activities for the periods presented:
The effects of derivative gains and (losses) and cash settlements (except for those cash settlements attributable to the aforementioned termination transactions) are reported as adjustments to reconcile net income (loss) to net cash provided by operating activities. These items are recorded in the “Derivative contracts” section of our Consolidated Statements of Cash Flows under the “Net losses (gains)” and “Cash settlements, net.” The following table summarizes the fair value of our derivative instruments, as well as the locations of these instruments, on our Consolidated Balance Sheets as of the dates presented:
As of December 31, 2016, we reported a commodity derivative liability of $27.4 million. The net and gross amounts for our derivative assets and liabilities are the same for both periods presented above. The contracts associated with this position are with three counterparties, all of which are investment grade financial institutions. This concentration may impact our overall credit risk, either positively or negatively, in that these counterparties may be similarly affected by changes in economic or other conditions. We have neither paid to, nor received from, our counterparties any cash collateral in connection with our derivative positions. Furthermore, our derivative contracts are not subject to margin calls or similar accelerations. No significant uncertainties exist related to the collectability of amounts that may be owed to us by these counterparties. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment The following table summarizes our property and equipment as of the dates presented:
1 See Note 19 for information regarding impairments to our property and equipment while we applied the successful efforts method of accounting. As discussed in Note 3, we adopted the full cost method of accounting for oil and gas properties on the Effective Date. Our unproved property costs of $4.7 million as of December 31, 2016 have been excluded from amortization. These costs are anticipated to be included in the full cost pool for amortization in 2017. These unproved property costs, excluding capitalized interest, were incurred during the Predecessor periods and were adjusted to their fair value in connection with the application of Fresh Start Accounting. During the Successor period in 2016, we transferred $3.8 million of undeveloped leasehold costs, including capitalized interest, from unproved properties to the full cost pool due primarily to expiring acreage. We capitalized internal costs of $0.5 million and interest of less than $0.1 million during the Successor period in 2016 in accordance with our accounting policies. Average DD&A per BOE of proved oil and gas properties was $11.20 for the Successor period ended December 31, 2016, $10.04 for the Predecessor period ended September 12, 2016 and $42.22 and $37.85 for the years ended December 31, 2015 and 2014, respectively. |
Asset Retirement Obligations |
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Asset Retirement Obligation Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations The following table reconciles our AROs as of the dates presented, which are included in the “Other liabilities” caption on our Consolidated Balance Sheets:
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Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt The following table summarizes our long-term debt as of the dates presented:
1 Issuance costs attributable to the Senior Notes were subject to an accelerated write-off in advance of our bankruptcy filing during the three months ended June 30, 2016. 2 Issuance costs attributable to the Credit Facility, which represent costs attributable to the access to credit over the Credit Facility’s contractual term, have been presented as a component of Other assets (see Note 14). 3 Issuance costs attributable to the RBL were presented as a component of Other assets (see Note 14) prior to the accelerated write-off in advance of our bankruptcy filing during the three months ended June 30, 2016. Credit Facility On the Effective Date, we entered into the Credit Facility. The Credit Facility provides for a $200 million revolving commitment and has an initial borrowing base of $128 million. The Credit Facility also includes a $5.0 million sublimit for the issuance of letters of credit, of which $0.8 million were outstanding as of December 31, 2016. The Credit Facility is governed by a borrowing base calculation, which is redetermined semi-annually, and the availability under the Credit Facility may not exceed the lesser of the aggregate commitments and the borrowing base. The Credit Facility is scheduled for its initial redetermination in April 2017. After April 1, 2017, the Credit Facility lenders may, at their discretion, initiate a redetermination at any time during the six-month period between scheduled redeterminations. The Credit Facility is available to us to pay expenses associated with our bankruptcy proceedings and for general corporate purposes including working capital. The Credit Facility matures in September 2020. The outstanding borrowings under the Credit Facility bear interest at a rate equal to, at our option, either (a) a customary reference rate plus an applicable margin ranging from 2.00% to 3.00%, determined based on the average availability under the Credit Facility or (b) a customary London interbank offered rate (“LIBOR”) plus an applicable margin ranging from 3.00% to 4.00%, determined based on the average availability under the Credit Facility. Interest on reference rate borrowings is payable quarterly in arrears and is computed on the basis of a year of 365/366 days, and interest on eurocurrency borrowings is payable every one, three or six months, at the election of the borrower, and is computed on the basis of a year of 360 days. As of December 31, 2016, the actual interest rate on the outstanding borrowings under the Credit Facility was 3.67%. Unused commitment fees are charged at a rate of 0.50%. The Credit Facility is guaranteed by us and all of our subsidiaries (the “Guarantor Subsidiaries”). The guarantees under the Credit Facility are full and unconditional and joint and several. Substantially all of our consolidated assets are held by the Guarantor Subsidiaries. The parent company has no material independent assets or operations. There are no significant restrictions on the ability of the parent company or any of the Guarantor Subsidiaries to obtain funds through dividends, advances or loans. The obligations under the Credit Facility are secured by a first priority lien on substantially all of our assets. The Credit Facility requires us to maintain (1) a minimum interest coverage ratio (adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses as defined in the Credit Facility (“EBITDAX”) to adjusted interest expense), measured as of the last day of each fiscal quarter, of 3.00 to 1.00, (2) a minimum current ratio (as defined in the Credit Facility, which considers the unused portion of the total commitment as a current asset), measured as of the last day of each fiscal quarter of 1.00 to 1.00, and (3) a maximum leverage ratio (consolidated indebtedness to adjusted EBITDAX), measured as of the last day of each fiscal quarter, initially of 4.00 to 1.00, decreasing on December 31, 2017 to 3.75 to 1.00 and on March 31, 2018 and thereafter to 3.50 to 1.00. The Credit Facility also contains customary affirmative and negative covenants, including as to compliance with laws (including environmental laws, ERISA and anti-corruption laws), maintenance of required insurance, delivery of quarterly and annual financial statements, oil and gas engineering reports and budgets, maintenance and operation of property (including oil and gas properties), restrictions on the incurrence of liens and indebtedness, merger, consolidation or sale of assets, payment of dividends, and transactions with affiliates and other customary covenants. As of December 31, 2016, and through the date upon which the Consolidated Financial Statements were issued, we were in compliance with all of these covenants. Pre-Petition Credit Facility As described in Notes 4 and 5, our principal and interest obligations outstanding under the RBL as well as certain associated fees and expenses were satisfied in cash in full on the Effective Date. These obligations were funded from a combination of cash on hand, proceeds from the Rights Offering and proceeds from initial borrowings under the Credit Facility. 2019 Senior Notes and 2020 Senior Notes The Senior Notes were included in “Liabilities subject to compromise” on the Consolidated Balance Sheet of the Predecessor as of September 12, 2016 (see Note 5) and were included in “Current liabilities” as of December 31, 2015. As described in Notes 4 and 5, the Senior Notes were canceled upon our emergence from bankruptcy. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The following table summarizes our provision for income taxes for the periods presented:
The following table reconciles the difference between the income tax benefit computed by applying the statutory tax rate to our loss before income taxes and our reported income tax benefit for the periods presented:
The following table summarizes the principal components of our deferred income tax assets and liabilities as of the dates presented:
As of December 31, 2016, we had federal NOL carryforwards of approximately $120.3 million, which, if not utilized, expire between 2032 and 2036, and tax-effected state NOL carryforwards of approximately $69.6 million, which expire between 2024 and 2036. Because of the change in ownership provisions of the Tax Reform Act of 1986, use of a portion of our federal and state NOL may be limited in future periods. As of December 31, 2015, we carried a valuation allowance against our federal and state deferred tax assets of $662.9 million. We incurred a pre-tax loss in 2015 which, when aggregated with the prior two years, resulted in a pre-tax loss for the three year period ended December 31, 2015. We considered both the positive and negative evidence in determining whether it was more likely than not that some portion or all of our deferred tax assets will be realized. Due to the reorganization and subsequent emergence from bankruptcy, our NOL carryforwards were reduced under Internal Revenue Code Section 108(b), as well as a corresponding decrease in the valuation allowance of $374.5 million which resulted in an ending balance of $288.4 million as of December 31, 2016. The amount of deferred tax asset considered realizable could, however, be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth. We had no liability for unrecognized tax benefits as of December 31, 2016 and 2015. There were no interest and penalty charges recognized during the years ended December 31, 2016, 2015 and 2014. Tax years from 2012 forward remain open for examination by the Internal Revenue Service and various state jurisdictions. |
Exit Activities |
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Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Firm Transportation Obligation | We have committed to a number of actions, or exit activities, consistent with our current business plans for which we have continuing financial commitments. The most significant of these activities are attributable to an overall reduction in the scope and scale of our organization and require payments to satisfy obligations associated with the underlying commitments. The following summarizes our most significant exit activities. Reductions in Force In connection with efforts to reduce our administrative costs, we took certain actions to reduce our total employee headcount. In 2016, we reduced our total employee headcount by 53 employees. We paid a total of $2.1 million, including $1.4 million in severance and termination benefits and $0.7 million in retention bonuses during the year ended December 31, 2016. The costs associated with these reduction-in-force and retention actions are included as a component of our “General and administrative” expenses in our Consolidated Statements of Operations. The related obligations are included in “Accounts payable and accrued liabilities” on our Consolidated Balance Sheet. Drilling Rig Termination In connection with the suspension of our 2016 drilling program in the Eagle Ford, we terminated our one remaining drilling rig contract and incurred $1.7 million in early termination charges. As this obligation represented a pre-petition liability of the Predecessor, it was included in “Reorganization items, net” in our Consolidated Statements of Operations. Firm Transportation Obligation We had a contractual obligation with a carrying value of $10.8 million for certain firm transportation capacity in the Appalachian region that was scheduled to expire in 2022 and, as a result of the sale of our natural gas assets in this region in 2012, we no longer had production available to satisfy this commitment. We originally recognized a liability in 2012 representing this obligation for the estimated discounted future net cash outflows over the remaining term of the contract. The accretion of the obligation through the Petition Date, net of any recoveries from periodic sales of our contractual capacity, was charged as an offset to Other revenue. In connection with our emergence from bankruptcy, we rejected the underlying contract and the obligation was included in “Reorganization items, net” in our Consolidated Statements of Operations. |
Additional Balance Sheet Detail |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Balance Sheet Detail | Additional Balance Sheet Detail The following table summarizes components of selected balance sheet accounts as of the dates presented:
1 The balance as of December 31, 2016 includes those costs, net of amortization, attributable to the the Credit Facility. Deferred issuance costs attributable to the RBL, which represents the amounts outstanding as of December 31, 2015, were charged in full to interest expense during the three months ended June 30, 2016 in advance of our bankruptcy filing. 2 In connection with our emergence from bankruptcy, the assets of the SERP reverted to us upon the release of claims by our employees attributable to certain deferred compensation arrangements in September 2016. The SERP assets were liquidated by the plan trustee in October 2016 and the cash value was transferred to us (See Notes 4 and 5). |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
We apply the authoritative accounting provisions for measuring fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. We use a hierarchy that prioritizes the inputs we use to measure fair value into three distinct categories based upon whether such inputs are observable in active markets or unobservable. We classify assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our methodology for categorizing assets and liabilities that are measured at fair value pursuant to this hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest level to unobservable inputs as outlined below. Fair value measurements are classified and disclosed in one of the following three categories:
Our financial instruments that are subject to fair value disclosure consist of cash and cash equivalents, accounts receivable, accounts payable, derivatives and long-term debt. As of December 31, 2016, the carrying values of all of these financial instruments approximated fair value. The following table summarizes the fair value of our long-term debt with fixed interest rates, which is estimated based on the published market prices for these debt obligations as of the dates presented:
1 The Senior Notes were canceled upon our emergence from bankruptcy. Recurring Fair Value Measurements Certain financial assets and liabilities are measured at fair value on a recurring basis on our Consolidated Balance Sheets. The following tables summarize the valuation of those assets and (liabilities) as of the dates presented:
Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one level of the fair value hierarchy to another level. In such instances, the transfer is deemed to have occurred at the beginning of the quarterly period in which the event or change in circumstances that caused the transfer occurred. There were no transfers during any period in the years ended December 31, 2016, 2015 and 2014. We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below:
Non-Recurring Fair Value Measurements The most significant non-recurring fair value measurements utilized in the preparation of our Consolidated Financial Statements are those attributable to the recognition and measurement of the Successor’s net assets with respect to the application of Fresh Start Accounting. Those measurements are more fully described in Note 5. In addition, we utilize non-recurring fair value measurements with respect to the recognition and measurement of asset impairments, particularly during our Predecessor periods during which time we applied the successful efforts method to our oil and gas properties, as well as the initial determination of AROs associated with the ongoing development of new oil and gas properties. The factors used to determine fair value for purposes of recognizing and measuring asset impairments while we applied the successful efforts method to our oil and gas properties during our Predecessor periods included, but were not limited to, estimates of proved and risk-adjusted probable reserves, future commodity prices, indicative sales prices for properties, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and gas properties. Because these significant fair value inputs were typically not observable, we have categorized the amounts as level 3 inputs. Under the full cost method, which we have applied since the Effective Date, we apply a ceiling test determination utilizing prescribed procedures as described in Note 3. The full cost method is substantially different from the successful efforts method which relies upon fair value measurements. The determination of the fair value of AROs is based upon regional market and facility specific information. The amount of an ARO and the costs capitalized represent the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor after discounting the future cost back to the date that the abandonment obligation was incurred using a rate commensurate with the risk, which approximates our cost of funds. Because these significant fair value inputs are typically not observable, we have categorized the initial estimates as level 3 inputs. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The following table sets forth our significant commitments as of December 31, 2016, by category, for the next five years and thereafter:
Rental Commitments Operating lease rental expense was $0.2 million, $2.4 million, $7.2 million and $8.7 million, for the Successor period from September 13, 2016 through December 31, 2016, the Predecessor period from January 1, 2016 through September 12, 2016, and the Predecessor years ended December 31, 2015 and 2014, respectively, related primarily to field equipment, office equipment and office leases. Gathering and Intermediate Transportation Commitments We have long-term agreements with Republic Midstream and Republic Midstream Marketing, LLC (“Republic Marketing” and, together with Republic Midstream, collectively, “Republic”) to provide gathering and intermediate pipeline transportation services for a substantial portion of our crude oil and condensate production in the South Texas region as well as volume capacity support for certain downstream interstate pipeline transportation. In August 2016, the Bankruptcy Court approved a settlement with Republic and authorized the assumption of certain amended agreements with Republic (the “Amended Agreements”). We paid Republic $0.3 million in connection with the settlement which is included in “Reorganization items, net” in our Consolidated Statements of Operations. Under the terms of the Amended Agreements, Republic is obligated to gather and transport our crude oil and condensate from within a dedicated area in the Eagle Ford (the “Dedication Area”) via a gathering system and intermediate takeaway pipeline connecting to a downstream interstate pipeline operated by a third party. The amended gathering agreement reduced our minimum volume commitment from 15,000 to 8,000 gross barrels of oil per day. The term of the amended gathering agreement runs through 2041, with the term of the minimum volume commitment extended from 10 to 15 years. The gathering portion of these minimum commitments are being recognized as a component of our gathering, processing and transportation expense while the intermediate transportation and pipeline support commitments are recognized as a reduction to the index-based price that we receive for crude oil sold to Republic in accordance with Amended Agreements. Under the amended marketing agreement, we have a 10-year commitment to sell 8,000 barrels per day of crude oil to Republic, or any third party, utilizing Republic Marketing’s capacity on a certain downstream interstate pipeline. Other Commitments We have entered into certain contractual arrangements for other products and services. We have minimum commitments under information technology licensing, service agreements and employment agreements, among others. Legal We are involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, our management believes that these claims will not have a material effect on our financial position, results of operations or cash flows. During 2016, we reduced our reserve for a litigation matter to $0.1 million from $0.9 million due to our dismissal from the subject litigation. Environmental Compliance Extensive federal, state and local laws govern oil and gas operations, regulate the discharge of materials into the environment or otherwise relate to the protection of the environment. Numerous governmental departments issue rules and regulations to implement and enforce such laws that are often difficult and costly to comply with and which carry substantial administrative, civil and even criminal penalties for failure to comply. Some laws, rules and regulations relating to protection of the environment may, in certain circumstances, impose “strict liability” for environmental contamination, rendering a person liable for environmental and natural resource damages and cleanup costs without regard to negligence or fault on the part of such person. Other laws, rules and regulations may restrict the rate of oil and gas production below the rate that would otherwise exist or even prohibit exploration or production activities in sensitive areas. In addition, state laws often require some form of remedial action to prevent pollution from former operations, such as plugging of abandoned wells. As of December 31, 2016, we have recorded AROs of $2.5 million attributable to these activities. The regulatory burden on the oil and gas industry increases its cost of doing business and consequently affects its profitability. These laws, rules and regulations affect our operations, as well as the oil and gas exploration and production industry in general. We believe that we are in substantial compliance with current applicable environmental laws, rules and regulations and that continued compliance with existing requirements will not have a material impact on our financial condition or results of operations. Nevertheless, changes in existing environmental laws or the adoption of new environmental laws, including any significant limitation on the use of hydraulic fracturing, have the potential to adversely affect our operations. |
Shareholders' Equity |
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Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Preferred Stock As discussed in Note 4, all of our Predecessor preferred stock was canceled upon our emergence from bankruptcy on the Effective Date. As of December 31, 2016, there were 5,000,000 Successor shares of preferred stock authorized with none issued or outstanding. Common Stock As discussed in Note 4, all our Predecessor common stock was canceled upon our emergence from bankruptcy on the Effective Date and 14,992,018 shares of New Common Stock were issued with a par value of $0.01 per share. We have a total of 45,000,000 shares authorized. We do not anticipate that cash dividends or other distributions will be paid with respect to our common stock in the foreseeable future. In addition, our Credit Facility has restrictive covenants that limit our ability to pay dividends. Accumulated Other Comprehensive Income Accumulated other comprehensive income and losses are entirely attributable to our pension and postretirement health care benefit obligations. The accumulated other comprehensive income, net of tax, was $0.1 million, less than $0.1 million, $0.4 million and $0.2 million as of December 31, 2016, September 12, 2016 and December 31, 2015 and 2014, respectively. Treasury Stock Shares of our Predecessor common stock held by the SERP and Predecessor deferred common stock units that had not been converted into Predecessor common stock were previously presented for financial reporting purposes as treasury stock carried at cost. A total of 455,689 Predecessor shares were recorded as treasury stock as of December 31, 2015. As discussed above, all of the Predecessor common stock held by the SERP and Predecessor deferred common stock units were canceled upon our emergence from bankruptcy on the Effective Date. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation and Other Benefit Plans We recognize share-based compensation expense related to our share-based compensation plans as a component of “General and administrative” expense in our Consolidated Statements of Operations. We reserved 749,600 shares of New Common Stock for issuance under the Penn Virginia Corporation Management Incentive Plan for future share-based compensation awards. A total of 107,563 shares of time-vested restricted stock units had been granted as of December 31, 2016. In the Predecessor periods in 2016, 2015 and 2014, we had outstanding equity-classified awards in the form of stock options, restricted stock units and deferred stock units. As discussed in Notes 4 and 5, all remaining equity-classified share-based compensation awards were canceled in connection with our emergence from bankruptcy. With the exception of our Predecessor performance-based restricted stock units (“PBRSUs”), all of our Successor and Predecessor share-based compensation awards are classified as equity instruments because they result in the issuance of common stock on the date of grant, upon exercise or are otherwise payable in common stock upon vesting, as applicable. The compensation cost attributable to these awards has been measured at the grant date and recognized over the applicable vesting period as a non-cash item of expense. Because the Predecessor PBRSUs were payable in cash, they were typically considered liability-classified awards and were included in “Accounts payable and accrued liabilities” (current portion) and “Other liabilities” (noncurrent portion) on the Consolidated Balance Sheets of the Predecessor. Compensation cost associated with the Predecessor PBRSUs was measured at the end of each reporting period and recognized based on the period of time that had elapsed during each of the individual performance periods. The following tables summarize our share-based compensation expense (benefit) recognized for the periods presented:
Stock Options The exercise price of all stock options granted under our Predecessor incentive compensation plans was equal to the fair value of our common stock on the date of the grant. Options could be exercised at any time after vesting and prior to ten years following the date of grant. Options vested upon terms established by the compensation and benefits committee of our board of directors (the “Committee”). Generally, options vested over a three-year period, with one-third vesting in each year. The fair value of each option award was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula. Expected volatilities were based on historical changes in the market value of our stock. Separate groups of employees that had similar historical exercise behavior were considered separately to estimate expected lives. Options granted had a maximum term of ten years. We based the risk-free interest rate on the U.S. Treasury rate for the week of the grant having a term equal to the expected life of the option. The ranges for the assumptions used in the Black-Scholes-Merton pricing formula for the Predecessor stock options granted in the periods presented were as follows:
The following table summarizes activity for our most recent fiscal year with respect to stock options:
The weighted-average grant-date fair value of options granted during the Predecessor years ended December 31, 2015 and 2014, respectively, was $3.15 and $7.46 per option. The total intrinsic value of options exercised during the Predecessor year ended December 31, 2014 was $2.3 million. There were no options exercised during 2015 and 2016. The total grant-date fair values of stock options that vested in Predecessor years 2015 and 2014 were $1.3 million and $1.8 million, respectively. In connection with our emergence from bankruptcy, all stock options outstanding as of September 12, 2016 were canceled. Common Stock A portion of the compensation paid to certain non-employee members of our Predecessor board of directors was paid in common stock. Each share of common stock granted as compensation vested immediately upon issuance. In 2015 and 2014 respectively, we granted 195,395 and 15,501 shares of common stock to our non-employee directors at a weighted-average grant date fair value of $1.33 and $11.61 per share. No shares were granted during the Successor or Predecessor periods in 2016. In connection with our emergence from bankruptcy, all shares granted to the non-employee members of our Predecessor board of directors as of September 12, 2016 were canceled. Deferred Common Stock Units A portion of the compensation paid to certain non-employee members of our Predecessor board of directors was paid in deferred common stock units. Each deferred common stock unit represented one share of common stock, vested immediately upon issuance, and was available to the holder upon termination or retirement from our board of directors. Deferred common stock units awarded to directors received all cash or other dividends we paid on shares of our common stock. The following table summarizes activity for our most recent fiscal year with respect to awarded deferred common stock units:
As of December 31, 2015, our Predecessor shareholders’ deficit included deferred compensation obligations of $3.4 million and corresponding amounts for treasury stock. In connection with our emergence from bankruptcy, all deferred common stock units outstanding as of September 12, 2016 were canceled. Time-Vested Restricted Stock Units A restricted stock unit entitles the grantee to receive a share of common stock upon the vesting of the restricted stock unit. The grant date fair value of our time-vested restricted stock unit awards are recognized on a straight-line basis over the applicable vesting period. The following table summarizes activity for our most recent fiscal year with respect to awarded restricted stock units:
As of December 31, 2016, we had $2.4 million of unrecognized compensation cost attributable to Successor unvested restricted stock units. We expect that cost to be recognized over a weighted-average period of 1.5 years. The Predecessor total grant-date fair values of restricted stock units that vested in 2015 and 2014 were $2.2 million and $0.6 million, respectively. No restricted stock units vested during 2016. In connection with our emergence from bankruptcy, all outstanding restricted stock units as of September 12, 2016 were canceled. Predecessor Performance-Based Restricted Stock Units In May 2015, May 2014 and May 2013, we granted PBRSUs to certain executive officers. Vested PBRSUs were payable solely in cash on the third anniversary of the date of grant based upon the achievement of specified market-based performance metrics with respect to each of a one-year, two-year and three-year performance period, in each case commencing on the date of grant. The number of PBRSUs vested ranged from 0% to 200% of the initial grant. The PBRSUs did not have voting rights and did not participate in dividends. The compensation cost of the PBRSUs was based on the fair value derived from a Monte Carlo model. The Monte Carlo model is a binomial valuation model that utilizes certain assumptions, including expected volatility, dividend yield, risk-free interest rates and a measure of total shareholder return. The ranges for the assumptions used in the Monte Carlo model for the Predecessor PBRSUs granted in the periods presented were as follows:
The following table summarizes activity for our most recent fiscal year with respect to PBRSUs:
In connection with our emergence of bankruptcy, all outstanding PBRSUs as of September 12, 2016 were canceled. Defined Contribution Plan We maintain the Penn Virginia Corporation and Affiliated Companies Employees 401(k) Plan (the “401(k) Plan”), a defined contribution plan, which covers substantially all of our employees. We provide matching contributions on our employees’ elective deferral contributions up to six percent of compensation up to the maximum statutory limits. The 401(k) Plan also provides for discretionary employer contributions. The expense recognized with respect to the 401(k) Plan was $0.1 million, $0.5 million, $0.9 million and $1.7 million for the Successor period from September 13, 2016 through December 31, 2016, the Predecessor period from January 1, 2016 through September 12, 2016, and the Predecessor years ended December 31, 2015, and 2014, respectively, and is included as a component of “General and administrative expenses” in our Statements of Operations. Amounts representing accrued obligations to the 401(k) Plan of $0.1 million and $0.2 million are included in the “Accounts payable and accrued expenses” caption on our Consolidated Balance Sheets as of December 31, 2016 and 2015, respectively. Defined Benefit Pension and Postretirement Health Care Plans We maintain unqualified legacy defined benefit pension and defined benefit postretirement health care plans which cover a limited population of former employees that retired prior to 2000. The combined expense recognized with respect to these plans was less than $0.1 million, less than $0.1 million, $0.1 million and $0.1 million for the Successor period from September 13, 2016 through December 31, 2016, the Predecessor period from January 1, 2016 through September 12, 2016, and the Predecessor years ended December 31, 2015 and 2014, respectively, and is included as a component of “General and administrative expenses” in our Statements of Operations. The combined unfunded benefit obligations under these plans were $1.7 million and $2.1 million and are included within the “Accounts payable and accrued expenses” (current portion) and “Other liabilities” (noncurrent) captions on our Consolidated Balance Sheets as of December 31, 2016 and 2015, respectively. |
Impairments |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairments | Impairments The following table summarizes impairment charges recorded during the periods presented:
The following table summarizes the aggregate fair values of the assets described below, by asset category and the classification of inputs within the fair value measurement hierarchy, at the respective dates of impairment:
We recorded no impairment charges during 2016. The significant deterioration of commodity prices in 2015, as reflected in the future strip pricing as of December 31, 2015, triggered an impairment of approximately $1.4 billion to our proved and unproved Eagle Ford properties, which required us to reduce their carrying value to a fair value of approximately $312 million. In 2015, we also recorded an impairment charge of $1.1 million attributable to surplus tubular inventory and well materials. In 2014, we recognized oil and gas asset impairments of: (i) $667.8 million in the East Texas, Granite Wash and Marcellus regions due to the decline in commodity prices in the fourth quarter of 2014, (ii) $6.1 million in connection with an uneconomic field drilled in the Mid-Continent region and (iii) $117.9 million to write-down our Selma Chalk assets in Mississippi triggered by the disposition of those properties. |
Interest Expense |
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Interest Expense | Interest Expense The following table summarizes the components of interest expense for the periods presented:
______________________ 1 Absent the bankruptcy proceedings and the corresponding suspension of the accrual of interest on unsecured debt, we would have recorded total contractual interest expense of $66.1 million for the period from January 1, 2016 through September 12, 2016, including $15.3 million attributable to the 2019 Senior Notes and $46.3 million attributable to the 2020 Senior Notes.
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Earnings per Share |
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Earnings per Share | Earnings per Share The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings per share utilizing the two-class method for the periods presented:
1 Preferred stock dividends were excluded from diluted earnings per share for the years ended December 31, 2015 and 2014, respectively, as the assumed conversion of the outstanding preferred stock would have been anti-dilutive. 2 For the period from September 13, 2016 through December 31, 2016, less than 0.1 million potentially dilutive securities, represented by restricted stock units, had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per common share. For 2015 and 2014, respectively, approximately 30.2 million and 26.6 million potentially dilutive securities, including the Series A and Series B Preferred Stock, stock options and restricted stock units had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per common share. |
Basis of Presentation New Accounting Pronouncements (Policies) |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)2016–09, Improvements to Employee Share-based Payment Accounting (“ASU 2016–09”), which simplifies the accounting for share-based compensation. The areas for simplification that are applicable to publicly-held companies are as follows: (i) Accounting for Income Taxes, (ii) Classification of Excess Tax Benefits on the Statement of Cash Flows, (iii) Forfeitures, (iv) Minimum Statutory Tax Withholding Requirements and (v) Classification of Employee Taxes Paid on the Statement of Cash Flows when an employer withholds shares for tax-withholding purposes. The effective date of ASU 2016–09 is January 1, 2017, with early adoption permitted. We adopted ASU 2016–09 on September 12, 2016 effective upon our emergence from bankruptcy. The adoption of ASU 2016–09 did not have a significant impact on our Consolidated Financial Statements and Notes. Recently Issued Accounting Pronouncements Pending Adoption In June 2016, the FASB issued ASU 2016–13, Measurement of Credit Losses on Financial Instruments (“ASU 2016–13”), which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016–13 is required to be adopted using the modified retrospective method by January 1, 2020, with early adoption permitted for fiscal periods beginning after December 15, 2018. In contrast to current guidance, which considers current information and events and utilizes a probable threshold, (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. ASU 2016–13 will have applicability to our accounts receivable portfolio, particularly those receivables attributable to our joint interest partners. At this time, we do not anticipate that the adoption of ASU 2016–13 will have a significant impact on our Consolidated Financial Statements and related disclosures; however, we are currently in the early stages of evaluating the requirements and the period for which we will adopt the standard. In February 2016, the FASB issued ASU 2016–02, Leases (“ASU 2016–02”), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. ASU 2016–02 also will require disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The effective date of ASU 2016–02 is January 1, 2019, with early adoption permitted. We believe that ASU 2016–02 will likely be applicable to our oil and natural gas gathering commitment arrangements as described in Note 16, our existing leases for office facilities and certain office equipment and potentially to certain drilling rig and completion contracts with terms in excess of twelve months to the extent we may have such contracts in the future. Our oil and natural gas gathering arrangements are fairly complex and involve multiple elements that could be construed as leases. Accordingly, we are continuing to evaluate the effect that ASU 2016–02 will have on our Consolidated Financial Statements and related disclosures as well as the period for which we will adopt the standard, however, at this time, we believe that we will likely adopt ASU 2016–02 in 2019. In May 2014, the FASB issued ASU 2014–09, Revenues from Contracts with Customers (“ASU 2014–09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014–09 will replace most existing revenue recognition guidance in GAAP when it becomes effective on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. While traditional commodity sales transactions, property conveyances and joint interest arrangements in the oil and gas industry are not expected to be significantly impacted by ASU 2014–09, natural gas imbalances and other non-product revenues, including our ancillary marketing, gathering and transportation and water service revenues could be affected. Accordingly, we are continuing to evaluate the effect that ASU 2014–09 will have on our Consolidated Financial Statements and related disclosures, with a more focused analysis on these other revenue sources, which we do not believe are significant. We are also continuing to monitor developments regarding ASU 2014–09 that are unique to our industry. We fully expect to adopt ASU 2014–09 in 2018. |
Summary of Significant Accounting Policies (Policies) |
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Principles of Consolidation | Principles of Consolidation Our Consolidated Financial Statements include the accounts of Penn Virginia and all of its subsidiaries. Intercompany balances and transactions have been eliminated. |
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Use of Estimates | Use of Estimates Preparation of our Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include certain asset and liability valuations as further described in these Notes. Actual results could differ from those estimates. |
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Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
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Derivative Instruments | Derivative Instruments From time to time, we utilize derivative instruments to mitigate our financial exposure to commodity price and interest rate volatility. The derivative instruments, which are placed with financial institutions that we believe are of acceptable credit risk, take the form of collars, swaps and swaptions. All derivative transactions are subject to our risk management policy, which has been reviewed and approved by our Predecessor board of directors. All derivative instruments are recognized in our Consolidated Financial Statements at fair value. The fair values of our derivative instruments are determined based on discounted cash flows derived from quoted forward prices. Our derivative instruments are not formally designated as hedges. We recognize changes in fair value in earnings currently as a component of the Derivatives caption in our Consolidated Statements of Operations. We have experienced and could continue to experience significant changes in the amount of derivative gains or losses recognized due to fluctuations in the value of these commodity derivative contracts, which fluctuate with changes in commodity prices and interest rates. |
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Oil and Gas Properties | Oil and Gas Properties We have adopted the full cost method of accounting for our oil and gas properties effective with our adoption of Fresh Start Accounting. Under this method, all productive and nonproductive costs incurred in the exploration, development and acquisition of oil and gas reserves are capitalized. Such costs may be incurred both prior to and after the acquisition of a property and include lease acquisitions, geological and geophysical, or seismic, drilling, completion and equipment costs. Internal costs incurred that are directly attributable to exploration, development and acquisition activities undertaken by us for our own account, and which are not attributable to production, general corporate overhead or similar activities are also capitalized. Future development costs are estimated on a property-by-property basis based on current economic conditions and are amortized as a component of depreciation, depletion and amortization (“DD&A”). Unproved properties not being amortized include unevaluated leasehold costs and associated capitalized interest. These costs are reviewed quarterly to determine whether or not and to what extent proved reserves have been assigned to a property or if an impairment has occurred due to lease expirations, general economic conditions and other factors, in which case the related costs along with associated capitalized interest are reclassified to the proved oil and gas properties subject to DD&A. At the end of each quarterly reporting period, the unamortized cost of our oil and gas properties, net of deferred income taxes, is limited to the sum of the estimated discounted future net revenues from proved properties adjusted for costs excluded from amortization and related income taxes (a “Ceiling Test”). The estimated discounted future net revenues are determined using the prior 12-month’s average price based on closing prices on the first day of each month, adjusted for differentials, discounted at 10%. The calculation of the Ceiling Test and provision for DD&A are based on estimates of proved reserves. There are significant uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production, timing and plan of development. For the periods prior to the Effective Date, we applied the successful efforts method of accounting for our oil and gas properties. Under this method, costs of acquiring properties, costs of drilling successful exploration wells and development costs were capitalized. Seismic costs, delay rentals and costs to drill exploratory wells that did not find proved reserves were expensed as oil and gas exploration. We carried the costs of exploratory wells as assets if the wells had found a sufficient quantity of reserves to justify its completion as a producing well and as long as we were making sufficient progress assessing the reserves and the economic and operating viability of the project. For certain projects, it may have taken us more than one year to evaluate the future potential of the exploratory well and make determinations of their economic viability. Our ability to move forward on projects was dependent on gaining access to transportation or processing facilities or obtaining permits and government or partner approval, the timing of which was beyond our control. In such cases, exploratory well costs remained suspended as long as we were actively pursuing access to the necessary facilities or receiving such permits and approvals and believed that they would be obtained. We assessed the status of suspended exploratory well costs on a quarterly basis. Depreciation, Depletion and Amortization DD&A of our oil and gas properties is computed using the units-of-production method. We apply this method by multiplying the unamortized cost of our proved oil and gas properties, net of estimated salvage plus future development costs, by a rate determined by dividing the physical units of oil and gas produced during the period by the total estimated units of proved oil and gas reserves at the beginning of the period. DD&A of our proved properties while we applied the successful efforts method during the Predecessor periods was computed using the units-of-production method. Historically, we adjusted our depletion rate throughout the year as new data became available and in the fourth quarter based on our year-end reserve report through December 31, 2015. |
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Other Property and Equipment | Other Property and Equipment Other property and equipment consists primarily of gathering systems and related support equipment. Property and equipment are carried at cost and include expenditures for additions and improvements, such as roads and land improvements, which increase the productive lives of existing assets. Maintenance and repair costs are charged to expense as incurred. Renewals and betterments, which extend the useful life of the properties, are capitalized. We compute depreciation and amortization of property and equipment using the straight-line balance method over the estimated useful life of each asset as follows: Gathering systems – fifteen to twenty years and Other property and equipment – three to twenty years. |
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Impairment of Long-Lived and Other Assets | Impairment of Long-Lived Assets While we applied the successful efforts method of accounting for our oil and gas properties during the Predecessor periods, we reviewed our assets for impairment when events or circumstances indicated a possible decline in the recoverability of the carrying value of the properties. If the carrying value of the asset was determined to be impaired, we reduced the asset to its fair value. Fair value may have been estimated using comparable market data, a discounted cash flow method, or a combination of the two. In the discounted cash flow method, estimated future cash flows were based on management’s expectations for the future and included estimates of future production, commodity prices based on published forward commodity price curves as of the date of the estimate, operating and development costs, intent to develop properties and a risk-adjusted discount rate. We reviewed oil and gas properties for impairment periodically when events and circumstances indicated a decline in the recoverability of the carrying value of such properties, such as a downward revision of the reserve estimates or lower commodity prices. We estimated the future cash flows expected in connection with the properties and compared such future cash flows to the carrying amounts of the properties to determine if the carrying amounts were recoverable. Performing the impairment evaluations required use of judgments and estimates since the results were dependent on future events. Such events included estimates of proved and unproved reserves, future commodity prices, the timing of future production, capital expenditures and intent to develop properties, among others. The costs of unproved leaseholds, including associated interest costs for the period activities were in progress to bring projects to their intended use, were capitalized pending the results of exploration efforts. Unproved properties whose acquisition costs were insignificant to total oil and gas properties were amortized in the aggregate over the lesser of five years or the average remaining lease term and the amortization was charged to exploration expense. We assessed unproved properties whose acquisition costs were relatively significant, if any, for impairment on a stand-alone basis. As exploration work progressed and the reserves on properties were proved, capitalized costs of these properties became subject to depreciation and depletion. If the exploration work was unsuccessful, the capitalized costs of the properties related to the unsuccessful work was charged to exploration expense. The timing of any write-downs of any significant unproved properties depended upon the nature, timing and extent of future exploration and development activities and their results. |
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Asset Retirement Obligations | Asset Retirement Obligations We recognize the fair value of a liability for an asset retirement obligation (“ARO”) in the period in which it is incurred. Associated asset retirement costs are capitalized as part of the carrying cost of the asset. Our AROs relate to the plugging and abandonment of oil and gas wells and the associated asset is recorded as a component of oil and gas properties. After recording these amounts, the ARO is accreted to its future estimated value, and the additional capitalized costs are depreciated over the productive life of the assets. Both the accretion of the ARO and the depreciation of the related long-lived assets are included in the DD&A expense caption in our Consolidated Statements of Operations. |
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Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Using this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates. In assessing our deferred tax assets, we consider whether a valuation allowance should be recorded for some or all of the deferred tax assets which may not be realized. The ultimate realization of deferred tax assets is assessed at each reporting period and is dependent upon the generation of future taxable income and our ability to utilize tax credits and operating loss carryforwards during the periods in which the temporary differences become deductible. We also consider the scheduled reversal of deferred tax liabilities and available tax planning strategies. We recognize interest attributable to income taxes, to the extent they arise, as a component of interest expense and penalties as a component of income tax expense. We are subject to ongoing tax examinations in numerous domestic jurisdictions. Accordingly, we may record incremental tax expense based upon the more-likely-than-not outcomes of uncertain tax positions. In addition, when applicable, we adjust the previously recorded tax expense to reflect examination results when the position is effectively settled. Our ongoing assessments of the more-likely-than-not outcomes of the examinations and related tax positions require judgment and can increase or decrease our effective tax rate, as well as impact our operating results. The specific timing of when the resolution of each tax position will be reached is uncertain. |
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Revenue Recognition | Revenue Recognition We record revenues associated with sales of crude oil, NGLs and natural gas when title passes to the customer. We recognize natural gas sales revenues from properties in which we have an interest with other producers on the basis of our net revenue interest (“entitlement” method of accounting). Natural gas imbalances occur when we sell more or less than our entitled ownership percentage of natural gas production. We treat any amount received in excess of our share as a liability. If we take less than we are entitled to take, we record the under-delivery as a receivable. As a result of the numerous requirements necessary to gather information from purchasers or various measurement locations, calculate volumes produced, perform field and wellhead allocations and distribute and disburse funds to various working interest partners and royalty owners, the collection of revenues from oil and gas production may take up to 60 days following the month of production. Therefore, we make accruals for revenues and accounts receivable based on estimates of our share of production, particularly from properties that are operated by our partners. We record any differences, which historically have not been significant, between the actual amounts ultimately received and the original estimates in the period they become finalized. |
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Share-Based Compensation | Share-Based Compensation Our stock compensation plans permit the grant of incentive and nonqualified stock options, common stock, deferred common stock units, restricted stock and restricted stock units to our employees and directors. We measure the cost of employee services received in exchange for an award of equity-classified instruments based on the grant-date fair value of the award. Compensation cost associated with the liability-classified awards is measured at the end of each reporting period and recognized based on the period of time that has elapsed during the applicable performance period. |
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Fair Value of Financial Instruments, Policy [Policy Text Block] | We apply the authoritative accounting provisions for measuring fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. We use a hierarchy that prioritizes the inputs we use to measure fair value into three distinct categories based upon whether such inputs are observable in active markets or unobservable. We classify assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our methodology for categorizing assets and liabilities that are measured at fair value pursuant to this hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest level to unobservable inputs as outlined below. Fair value measurements are classified and disclosed in one of the following three categories:
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Fair Value of Financial Instruments, Policy [Policy Text Block] | We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below:
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Fair Value Measurements Fair Value of Financial Instruments, Policy (Policies) |
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Fair Value of Financial Instruments, Policy [Policy Text Block] | We apply the authoritative accounting provisions for measuring fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. We use a hierarchy that prioritizes the inputs we use to measure fair value into three distinct categories based upon whether such inputs are observable in active markets or unobservable. We classify assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our methodology for categorizing assets and liabilities that are measured at fair value pursuant to this hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest level to unobservable inputs as outlined below. Fair value measurements are classified and disclosed in one of the following three categories:
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below:
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Fresh Start Accounting Fresh Start Accounting (Tables) |
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Fresh-Start Balance Sheet [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cumulative impact of Reorganization Adjustments [Table Text Block] | Represents the cumulative impact of the reorganization adjustments described above:
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Schedule of Fresh-Start Adjustments [Table Text Block] | The following table reflects the reorganization and application of Fresh Start Accounting adjustments on our Consolidated Balance Sheet as of September 12, 2016:
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Reconcile Enterprise Value to FV of Successor CS [Table Text Block] | The following table reconciles the enterprise value, net of cash and cash equivalents, to the estimated fair value of our Successor common stock as of the Effective Date:
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Reconciliation of Enterprise Value to Reorganization Value [Table Text Block] | The following table reconciles the enterprise value to the reorganization value of our Successor assets as of the Effective Date:
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Schedule of Net Cash Payments [Table Text Block] | Represents the net cash payments that occurred on the Effective Date:
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Schedule of Liabilities Subject to Compromise Settled [Table Text Block] | Liabilities subject to compromise were settled as follows in accordance with the Plan:
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Schedule of Reorganization Items [Table Text Block] | The following table summarizes the components included in “Reorganization items, net” in our Consolidated Statements of Operations for the period presented:
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Accounts Receivable and Major Customers (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounts Receivable | The following table summarizes our accounts receivable by type as of the dates presented:
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Derivative Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Derivative Positions | The following table sets forth our commodity derivative positions as of December 31, 2016:
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Impact of Derivative Activities on Condensed Consolidated Statements of Income | The impact of our derivatives activities on income is included in the “Derivatives” caption on our Consolidated Statements of Operations. The following table summarizes the effects of our derivative activities for the periods presented:
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Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets | The following table summarizes the fair value of our derivative instruments, as well as the locations of these instruments, on our Consolidated Balance Sheets as of the dates presented:
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Property and Equipment (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property and Equipment | The following table summarizes our property and equipment as of the dates presented:
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Asset Retirement Obligations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Asset Retirement Obligations which are Included in Other Liabilities | The following table reconciles our AROs as of the dates presented, which are included in the “Other liabilities” caption on our Consolidated Balance Sheets:
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Long-Term Debt (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | Interest Expense The following table summarizes the components of interest expense for the periods presented:
______________________ 1 Absent the bankruptcy proceedings and the corresponding suspension of the accrual of interest on unsecured debt, we would have recorded total contractual interest expense of $66.1 million for the period from January 1, 2016 through September 12, 2016, including $15.3 million attributable to the 2019 Senior Notes and $46.3 million attributable to the 2020 Senior Notes.
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Carrying Amount of Components of Long-term Debt | The following table summarizes our long-term debt as of the dates presented:
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Components of Interest Expense | The following table summarizes the components of interest expense for the periods presented:
______________________ 1 Absent the bankruptcy proceedings and the corresponding suspension of the accrual of interest on unsecured debt, we would have recorded total contractual interest expense of $66.1 million for the period from January 1, 2016 through September 12, 2016, including $15.3 million attributable to the 2019 Senior Notes and $46.3 million attributable to the 2020 Senior Notes.
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Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Provision for Income Taxes from Continuing Operations | The following table summarizes our provision for income taxes for the periods presented:
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Income Taxes Reconciliation | The following table reconciles the difference between the income tax benefit computed by applying the statutory tax rate to our loss before income taxes and our reported income tax benefit for the periods presented:
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Summary of Principal Components of Net Deferred Income Tax Liability | The following table summarizes the principal components of our deferred income tax assets and liabilities as of the dates presented:
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Additional Balance Sheet Detail (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Selected Balance Sheet Accounts | The following table summarizes components of selected balance sheet accounts as of the dates presented:
1 The balance as of December 31, 2016 includes those costs, net of amortization, attributable to the the Credit Facility. Deferred issuance costs attributable to the RBL, which represents the amounts outstanding as of December 31, 2015, were charged in full to interest expense during the three months ended June 30, 2016 in advance of our bankruptcy filing. 2 In connection with our emergence from bankruptcy, the assets of the SERP reverted to us upon the release of claims by our employees attributable to certain deferred compensation arrangements in September 2016. The SERP assets were liquidated by the plan trustee in October 2016 and the cash value was transferred to us (See Notes 4 and 5). |
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Summary of Long-Term Debt with Fixed Interest Rates | The following table summarizes the fair value of our long-term debt with fixed interest rates, which is estimated based on the published market prices for these debt obligations as of the dates presented:
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Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize the valuation of those assets and (liabilities) as of the dates presented:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loss Contingencies by Contingency | The following table sets forth our significant commitments as of December 31, 2016, by category, for the next five years and thereafter:
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Share-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-Based Compensation Expense |
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Fair Value of Each Option Award Estimated on Date of Grant Using Black-Scholes-Merton Option-Pricing Formula | The fair value of each option award was estimated on the date of grant using the Black-Scholes-Merton option-pricing formula. Expected volatilities were based on historical changes in the market value of our stock. Separate groups of employees that had similar historical exercise behavior were considered separately to estimate expected lives. Options granted had a maximum term of ten years. We based the risk-free interest rate on the U.S. Treasury rate for the week of the grant having a term equal to the expected life of the option. The ranges for the assumptions used in the Black-Scholes-Merton pricing formula for the Predecessor stock options granted in the periods presented were as follows:
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Activity of Awarded Options | The following table summarizes activity for our most recent fiscal year with respect to stock options:
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Activity of Awarded Deferred Common Stock Units | The following table summarizes activity for our most recent fiscal year with respect to awarded deferred common stock units:
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Restricted Stock Units (RSUs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity of Awarded Restricted Stock Units | The following table summarizes activity for our most recent fiscal year with respect to awarded restricted stock units:
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Performance Based Restricted Stock Units (PBRSUs) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions | The ranges for the assumptions used in the Monte Carlo model for the Predecessor PBRSUs granted in the periods presented were as follows:
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Activity of Awarded Performance-based RSUs | The following table summarizes activity for our most recent fiscal year with respect to PBRSUs:
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Impairments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Impairment of Long-Lived Assets Held and Used by Asset | The following table summarizes impairment charges recorded during the periods presented:
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Fair Value Measurements, Nonrecurring | The following table summarizes the aggregate fair values of the assets described below, by asset category and the classification of inputs within the fair value measurement hierarchy, at the respective dates of impairment:
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Interest Expense (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Interest Expense | The following table summarizes the components of interest expense for the periods presented:
______________________ 1 Absent the bankruptcy proceedings and the corresponding suspension of the accrual of interest on unsecured debt, we would have recorded total contractual interest expense of $66.1 million for the period from January 1, 2016 through September 12, 2016, including $15.3 million attributable to the 2019 Senior Notes and $46.3 million attributable to the 2020 Senior Notes.
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Earnings per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Calculation of Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings per share utilizing the two-class method for the periods presented:
1 Preferred stock dividends were excluded from diluted earnings per share for the years ended December 31, 2015 and 2014, respectively, as the assumed conversion of the outstanding preferred stock would have been anti-dilutive. 2 For the period from September 13, 2016 through December 31, 2016, less than 0.1 million potentially dilutive securities, represented by restricted stock units, had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per common share. For 2015 and 2014, respectively, approximately 30.2 million and 26.6 million potentially dilutive securities, including the Series A and Series B Preferred Stock, stock options and restricted stock units had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per common share. |
Summary of Significant Accounting Policies - Additional Information (Detail) |
12 Months Ended |
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Dec. 31, 2016
Boe
| |
Property, Plant and Equipment [Line Items] | |
Barrel of liquids equivalents of natural gas | 0.006 |
Oil And Gas Unproved Properties | |
Property, Plant and Equipment [Line Items] | |
Useful lives | over the lesser of five years or the average remaining lease term |
Useful life | 5 years |
Minimum | Gathering systems | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Minimum | Other property and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Revenue collection period | 60 days |
Maximum | Gathering systems | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Maximum | Other property and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts Receivable and Major Customers [Line Items] | ||
Customers | $ 20,489 | $ 23,481 |
Joint interest partners | 7,238 | 18,381 |
Other | 3,789 | 7,658 |
Accounts Receivable, Gross, Current, Total | 31,516 | 49,520 |
Less: Allowance for doubtful accounts | (2,421) | (1,555) |
Accounts receivable, net of allowance for doubtful accounts | $ 29,095 | $ 47,965 |
Impact of Derivative Activities on Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives | $ (16,622) | $ (8,333) | $ 71,247 | $ 162,212 |
Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | $ 0 | $ 97,956 |
Derivative assets | 0 | 97,956 |
Derivative liabilities, noncurrent | 14,437 | 0 |
Derivative liabilities, current | 12,932 | 0 |
Derivative liabilities | 27,369 | 0 |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 27,400 | |
Commodity contracts | Derivative assets/liabilities - current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | 0 | 97,956 |
Derivative liabilities, current | 12,932 | 0 |
Commodity contracts | Derivative assets/liabilities - noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, noncurrent | 0 | 0 |
Derivative liabilities, noncurrent | $ 14,437 | $ 0 |
Summary of Property and Equipment (Detail) $ in Thousands |
4 Months Ended | 8 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
$ / bbl
|
Sep. 12, 2016
USD ($)
$ / bbl
|
Dec. 31, 2015
USD ($)
$ / bbl
|
Dec. 31, 2014
$ / bbl
|
|
Property, Plant and Equipment [Line Items] | ||||
Proved Oil and Gas Property, Full Cost Method | $ 251,083 | |||
Undeveloped Leasehold Costs Transferred | $ 3,800 | |||
Capitalized Costs, Proved Properties | $ 500 | |||
Interest Costs Capitalized | $ 100 | |||
Amortization Expense Per Physical Unit of Production | $ / bbl | 11.20 | 10.04 | 42.22 | 37.85 |
Oil and gas properties: | ||||
Proved | $ 2,678,415 | |||
Unproved Oil and Gas Property, Full Cost Method | $ 4,719 | |||
Unproved 1 | 4,700 | 6,881 | ||
Oil and Gas Property, Full Cost Method, Gross | 255,802 | |||
Total oil and gas properties | 2,685,296 | |||
Other property and equipment | 3,575 | 31,365 | ||
Total property and equipment | 259,377 | 2,716,661 | ||
Accumulated depreciation, depletion and amortization 1 | (11,904) | (2,372,266) | ||
Property and equipment, net (successful efforts method) | $ 247,473 | $ 344,395 |
Reconciliation of Asset Retirement Obligations which are Included in Other Liabilities (Detail) - USD ($) $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended |
---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
|
Business Acquisition [Line Items] | |||
Asset Retirement Obligation, Fresh Start Adjustment | $ 0 | $ (754) | $ 0 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at beginning of period | 2,687 | 2,621 | 5,890 |
Changes in estimates | 27 | 176 | 172 |
Liabilities incurred | 0 | 469 | 110 |
Liabilities settled | (311) | 0 | 0 |
Sale of properties | 0 | 0 | (3,932) |
Accretion expense | 56 | 175 | 381 |
Balance at end of period | $ 2,459 | $ 2,687 | $ 2,621 |
Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs 2 | $ 226 | $ 22,189 | $ 4,749 | $ 4,197 |
Credit facility 2 | 25,000 | 0 | ||
Long-term debt | 25,000 | 0 | ||
Debt Instrument, Unamortized Discount | 0 | (20,617) | ||
Long-term Debt | 25,000 | 1,245,000 | ||
Long-term Debt, Current Maturities | 0 | (1,224,383) | ||
Senior Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 0 | 300,000 | ||
Debt Instrument, Unamortized Discount | 0 | (3,295) | ||
Senior Notes Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | 0 | 775,000 | ||
Debt Instrument, Unamortized Discount | $ 0 | $ (17,322) |
Summary of Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current income taxes (benefit) | ||||
Federal | $ 0 | $ 0 | $ (660) | $ 2,045 |
State | 0 | 0 | 1 | 1,504 |
Current income tax expense (benefit), total | 0 | 0 | (659) | 3,549 |
Deferred income tax benefit | ||||
Federal | 0 | 0 | (261) | (130,693) |
State | 0 | 0 | (4,451) | (4,534) |
Deferred income tax benefit, total | 0 | 0 | (4,712) | (135,227) |
Income tax benefit | $ 0 | $ 0 | $ (5,371) | $ (131,678) |
Summary of Principal Components of Net Deferred Income Tax Liability (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred tax assets: | ||
Property and equipment | $ 183,303 | $ 417,535 |
Pension and postretirement benefits | 710 | 2,276 |
Share-based compensation | 28 | 7,393 |
Net operating loss (“NOL”) carryforwards | 87,622 | 222,971 |
Deferred Tax Assets, Derivative Instruments | 9,579 | |
Deferred gains | 0 | 30,382 |
Other | 7,166 | 16,637 |
Deferred tax assets, gross | 288,408 | 697,194 |
Less: Valuation allowance | (288,408) | (662,909) |
Total net deferred tax assets | 0 | 34,285 |
Deferred tax liabilities: | ||
Fair value of derivative instruments | 0 | 34,285 |
Deferred tax liabilities, gross | 0 | 34,285 |
Deferred tax liabilities, net | $ 0 | $ 0 |
Exit Activities - Exit Activities (Detail) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016
USD ($)
|
Sep. 12, 2016
USD ($)
|
|
Restructuring and Related Activities [Abstract] | ||
Restructuring and Related Cost, Number of Positions Eliminated | 53 | |
Severance and Termination Benefits Paid | $ 2.1 | |
Severance and Termination Benefits | 1.4 | |
Retention Bonuses | 0.7 | |
Liabilities Subject to Compromise, Early Contract Termination Fees | $ 1.7 | |
Restructuring Reserve | $ 10.8 |
Fair Value Summary of Long-Term Debt with Fixed Interest Rates (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 25,000 | $ 0 | |||
Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt with fixed interest rates | 0 | 166,303 | |||
Fair Value | Senior Notes Due 2019 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt with fixed interest rates | 0 | [1] | 40,830 | ||
Fair Value | Senior Notes Due 2020 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt with fixed interest rates | 0 | [1] | 125,473 | ||
Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 0 | 1,075,000 | |||
Carrying Value | Senior Notes Due 2019 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 0 | [1] | 300,000 | ||
Carrying Value | Senior Notes Due 2020 [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 0 | $ 775,000 | |||
|
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets: | ||
Commodity derivative assets – current | $ 0 | $ 97,956,000 |
Liabilities: | ||
Derivative liabilities, current | 12,932,000 | 0 |
Derivative liabilities, noncurrent | 14,437,000 | 0 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Assets of SERP | 4,123 | |
Liabilities: | ||
Deferred compensation – SERP obligation | 4,125,000 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Assets of SERP | 4,123 | |
Liabilities: | ||
Deferred compensation – SERP obligation | (4,125,000) | |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Assets of SERP | 0 | |
Liabilities: | ||
Deferred compensation – SERP obligation | 0 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Assets of SERP | 0 | |
Liabilities: | ||
Deferred compensation – SERP obligation | 0 | |
Fair Value, Measurements, Recurring | Commodity contracts | ||
Assets: | ||
Commodity derivative assets – current | 97,956,000 | |
Liabilities: | ||
Derivative liabilities, current | (12,932,000) | |
Derivative liabilities, noncurrent | (14,437,000) | |
Fair Value, Measurements, Recurring | Commodity contracts | Level 1 | ||
Assets: | ||
Commodity derivative assets – current | 0 | |
Liabilities: | ||
Derivative liabilities, current | 0 | |
Derivative liabilities, noncurrent | 0 | |
Fair Value, Measurements, Recurring | Commodity contracts | Level 2 | ||
Assets: | ||
Commodity derivative assets – current | 97,956,000 | |
Liabilities: | ||
Derivative liabilities, current | (12,932,000) | |
Derivative liabilities, noncurrent | (14,437,000) | |
Fair Value, Measurements, Recurring | Commodity contracts | Level 3 | ||
Assets: | ||
Commodity derivative assets – current | $ 0 | |
Liabilities: | ||
Derivative liabilities, current | 0 | |
Derivative liabilities, noncurrent | $ 0 |
Significant Commitments by Category (Detail) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Minimum Rental Commitments | |
2017 | $ 264 |
2018 | 190 |
2019 | 70 |
2020 | 41 |
2021 | 0 |
Thereafter | 0 |
Total | 565 |
Gathering and Intermediate Transportation [Member] | |
Commitments | |
Contractual Commitments Future Minimum Payments Due Current | 9,646 |
2018 | 10,376 |
2019 | 11,702 |
2020 | 12,962 |
2021 | 12,962 |
Thereafter | 76,674 |
Total | 134,322 |
Drilling carry [Member] | |
Commitments | |
Contractual Commitments Future Minimum Payments Due Current | 12,932 |
2018 | 8,691 |
2019 | 5,746 |
2020 | 0 |
2021 | 0 |
Thereafter | 0 |
Total | 27,369 |
Other Commitments | |
Commitments | |
Contractual Commitments Future Minimum Payments Due Current | 596 |
2018 | 71 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
Thereafter | 0 |
Total | $ 667 |
Commitments and Contingencies - Additional Information (Detail) $ in Thousands |
2 Months Ended | 4 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|---|---|
Sep. 12, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 12, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
bbl
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2010
USD ($)
|
|
Commitments and Contingencies Disclosure [Line Items] | |||||||
Operating lease rental expense | $ 200 | $ 2,400 | $ 7,200 | $ 8,700 | |||
Reorganization items, Settlements related to contract amendments | 2,550 | ||||||
Long-term Purchase Commitment, Minimum Volume Required | bbl | 8,000 | ||||||
Crude Oil Gathering Agreement | 10 | ||||||
Asset retirement obligations | $ 2,687 | 2,459 | $ 2,687 | $ 2,621 | $ 5,890 | ||
Environmental Compliance | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Asset retirement obligations | 2,500 | ||||||
Legal Reserve | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Reserve established for contingency matters | $ 100 | $ 900 | |||||
Gathering and Intermediate Transportation [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Contractual Commitments Future Minimum Payments Due | 134,322 | ||||||
Contractual Commitments Future Minimum Payments Due Current | 9,646 | ||||||
Drilling carry [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Contractual Commitments Future Minimum Payments Due | 27,369 | ||||||
Contractual Commitments Future Minimum Payments Due Current | $ 12,932 | ||||||
Crude Oil Gathering And Transportation Services [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Reorganization items, Settlements related to contract amendments | $ 300 | ||||||
Original Volume Required [Domain] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Long-term Purchase Commitment, Minimum Volume Required | bbl | 15,000 | ||||||
Term in Years [Domain] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Crude Oil Gathering Agreement | 15 | ||||||
Marketing Agreement | 10 |
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
Dec. 31, 2016 |
Sep. 13, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized | 5,000,000 | 100,000 | |||
Common stock, shares issued | 14,992,018 | 14,992,018 | 14,992,018 | 81,252,676 | |
Common stock, par value | $ 0.01 | $ 0.01 | $ 12.73 | $ 0.01 | |
Common stock, shares authorized | 45,000,000 | 228,000,000 | |||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Accumulated other comprehensive losses attributable to pension and postretirement benefit obligations, net of tax | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.2 | |
Treasury stock (in shares) | 0 | 455,689 |
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation (equity-classified) | $ 81 | $ 1,511 | $ 4,540 | $ 3,627 | |
Exercised (in shares) | 0 | ||||
Deferred compensation obligation | 0 | 17,148 | |||
Recognized expense | 100 | 500 | 900 | 1,700 | |
Compensation | 2,557 | $ 2,557 | 9,904 | ||
Liability-classified awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation (equity-classified) | 0 | $ (19) | $ (711) | $ 4,520 | |
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Vesting period | 3 years | ||||
Weighted-average grant-date fair value of options granted during period (per share) | $ 3.15 | $ 7.46 | |||
Total intrinsic value of options exercised | $ 2,300 | ||||
Exercised (in shares) | 0 | ||||
Unrecognized compensation cost weighted-average recognition period | 1 year 6 months | ||||
Total grant-date fair values of options vested during period | $ 1,300 | $ 1,800 | |||
Deferred Common Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | ||||
Granted (in dollars per share) | $ 0.00 | ||||
Deferred compensation obligation | 3,400 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 2,400 | $ 2,400 | |||
Granted (in shares) | 107,563 | ||||
Granted (in dollars per share) | $ 23.15 | ||||
Total grant-date fair values of RSUs that vested during period | $ 2,200 | $ 600 | |||
Performance Based Restricted Stock Units (PBRSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | ||||
Granted (in dollars per share) | $ 0.00 | ||||
Performance Based Restricted Stock Units (PBRSUs) | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares expected to vest at grant date | 0.00% | ||||
Performance Based Restricted Stock Units (PBRSUs) | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares expected to vest at grant date | 200.00% | ||||
Vests ratably over 3 years | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting description | One-third vesting in each year | ||||
Award vesting rights percentage | 33.33% | ||||
Vests ratably over 3 years | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting description | One-third vesting in each year | ||||
Award vesting rights percentage | 33.33% | ||||
Vests ratably over 3 years | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting description | One-third vesting in each year | ||||
Award vesting rights percentage | 33.33% | ||||
Performance Period 1 | Performance Based Restricted Stock Units (PBRSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 1 year | ||||
Performance Period 2 | Performance Based Restricted Stock Units (PBRSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 2 years | ||||
Performance Period 3 | Performance Based Restricted Stock Units (PBRSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years | ||||
Employees and Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for issuance | 749,600 | 749,600 | |||
Non-employee Director | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercised (in shares) | 0 | 0 | |||
Granted (in shares) | 195,395 | 15,501 | |||
Granted (in dollars per share) | $ 1.33 | $ 11.61 | |||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Pension and Other Postretirement Benefit Expense | $ 100 | $ 100 | $ 100 | $ 100 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | 1,700 | $ 1,700 | 2,100 | ||
Pension Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||||
Compensation | $ 100 | $ 100 | $ 200 |
Summary of Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation (equity-classified) | $ 81 | $ 1,511 | $ 4,540 | $ 3,627 |
Allocated Share-based Compensation Expense | 81 | 1,492 | 3,829 | 8,147 |
Liability-classified awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation (equity-classified) | $ 0 | $ (19) | $ (711) | $ 4,520 |
Fair Value of Each Award Estimated on Date of Grant Using Black-Scholes-Merton Option-Pricing Formula (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Stock Options | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Expected volatility, min | 64.60% | 56.20% | |
Expected volatility, max | 69.40% | 63.70% | |
Dividend yield, min | 0.00% | 0.00% | |
Dividend yield, max | 0.00% | 0.00% | |
Risk-free interest rate, min | 0.87% | 0.82% | |
Risk-free interest rate, max | 1.54% | 1.63% | |
Stock Options | Minimum | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Expected life | 3 years 6 months | 3 years 6 months | |
Stock Options | Maximum | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Expected life | 4 years 7 months | 4 years 7 months | |
Performance Based Restricted Stock Units (PBRSUs) | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Expected volatility, min | 66.50% | 52.60% | |
Expected volatility, max | 97.70% | 72.30% | |
Dividend yield, min | 0.00% | 0.00% | |
Dividend yield, max | 0.00% | 0.00% | |
Risk-free interest rate, min | 1.00% | 0.02% | |
Risk-free interest rate, max | 1.31% | 1.07% |
Activity of Awarded Options (Detail) - USD ($) |
8 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 12, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Cancelled | $ (3,083,821) | ||
Share-based Compensation Arrangement by Share-by Payment Awards, Options, Weighted Average Price of Shares Canceled | $ 16.05 | ||
Shares Under Options | |||
Outstanding at beginning of year (in shares) | 3,083,821 | 3,083,821 | |
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Outstanding at end of year (in shares) | 0 | 3,083,821 | |
Exercisable at end of year (in shares) | 0 | ||
Weighted- Average Exercise Price | |||
Outstanding at beginning of year (in dollars per share) | $ 16.05 | $ 16.05 | |
Granted (in dollars per share) | 0.00 | ||
Exercised (in dollars per share) | 0.00 | ||
Forfeited (in dollars per share) | 0.00 | ||
Outstanding at end of year (in dollars per share) | 0.00 | $ 16.05 | |
Exercisable at end of year (in dollars per share) | $ 0.00 | ||
Aggregate Intrinsic Value | |||
Balance as of December 31, 2016 (Successor) | $ 0 | ||
Exercisable as of end of year (Successor) | $ 0 | ||
Non-employee Director | Common Stock [Member] | |||
Shares Under Options | |||
Exercised (in shares) | 0 | 0 |
Activity of Awarded Deferred Common Stock Units (Detail) - USD ($) |
8 Months Ended | 12 Months Ended |
---|---|---|
Sep. 12, 2016 |
Dec. 31, 2016 |
|
Number of shares | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Cancelled | $ 3,083,821 | |
Weighted-Average Grant Date Fair Value | ||
Share-based Compensation Arrangement by Share-by Payment Awards, Options, Weighted Average Price of Shares Canceled | $ 16.05 | |
Deferred Common Stock Units | ||
Number of shares | ||
Balance at beginning of year (in shares) | 447,498 | 447,498 |
Granted (in shares) | 0 | |
Converted (in shares) | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Cancelled | $ (447,498) | |
Balance at end of year (in shares) | 0 | |
Weighted-Average Grant Date Fair Value | ||
Balance at beginning of year (in dollars per share) | $ 7.75 | $ 7.75 |
Granted (in dollars per share) | 0.00 | |
Converted (in dollars per share) | 0.00 | |
Share-based Compensation Arrangement by Share-by Payment Awards, Options, Weighted Average Price of Shares Canceled | 7.75 | |
Balance at end of year (in dollars per share) | $ 0.00 |
Activity of Awarded Restricted Stock Units (Detail) - USD ($) |
8 Months Ended | 12 Months Ended |
---|---|---|
Sep. 12, 2016 |
Dec. 31, 2016 |
|
Weighted-Average Grant Date Fair Value | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Cancelled | $ 3,083,821 | |
Share-based Compensation Arrangement by Share-by Payment Awards, Options, Weighted Average Price of Shares Canceled | $ 16.05 | |
Restricted Stock Units (RSUs) | ||
Number of shares | ||
Balance at beginning of year (in shares) | 468,986 | 468,986 |
Granted (in shares) | 107,563 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Balance at end of year (in shares) | 107,563 | |
Weighted-Average Grant Date Fair Value | ||
Balance at beginning of year (in dollars per share) | $ 6.97 | $ 6.97 |
Granted (in dollars per share) | 23.15 | |
Vested (in dollars per share) | 0.00 | |
Forfeited (in dollars per share) | $ 0.00 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Cancelled | $ (468,986) | |
Balance at end of year (in dollars per share) | $ 23.15 | |
Share-based Compensation Arrangement by Share-by Payment Awards, Options, Weighted Average Price of Shares Canceled | $ 6.97 | |
Performance Based Restricted Stock Units (PBRSUs) | ||
Number of shares | ||
Balance at beginning of year (in shares) | 941,097 | 941,097 |
Granted (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Balance at end of year (in shares) | 0 | |
Weighted-Average Grant Date Fair Value | ||
Balance at beginning of year (in dollars per share) | $ 9.19 | $ 9.19 |
Granted (in dollars per share) | 0.00 | |
Forfeited (in dollars per share) | $ 0.00 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Cancelled | $ (941,097) | |
Balance at end of year (in dollars per share) | $ 0.00 | |
Share-based Compensation Arrangement by Share-by Payment Awards, Options, Weighted Average Price of Shares Canceled | $ 9.19 | |
Minimum | Performance Based Restricted Stock Units (PBRSUs) | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares, Expected to Vest, Percentage | 0.00% | |
Maximum | Performance Based Restricted Stock Units (PBRSUs) | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares, Expected to Vest, Percentage | 200.00% |
Impairments (Details) - USD ($) $ in Thousands |
3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|
Jun. 30, 2014 |
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairments | $ 0 | $ 0 | $ 1,397,424 | $ 791,809 | |
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | 1,396,340 | 791,809 | |
Other Asset Impairment Charges | $ 0 | $ 0 | 1,084 | 0 | |
Eagle Ford Shale, Lavaca County [Member] | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 1,400,000 | ||||
East Texas, Granite Wash and Marcellus regions | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 667,800 | ||||
Mid-Continent region | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Oil and Gas Properties | 6,100 | ||||
Selma Chalk | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Oil and Gas Properties | $ 117,900 | $ 117,900 | |||
Tubular Goods | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Other Asset Impairment Charges | 1,100 | ||||
Fair Value, Measurements, Nonrecurring | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 312,000 |
Impairments Impairments Fair Value Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring - Long-lived assets held for use - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Assets, fair value | $ 311,886 | $ 65,203 |
Level 1 | ||
Property, Plant and Equipment [Line Items] | ||
Assets, fair value | 0 | 0 |
Level 2 | ||
Property, Plant and Equipment [Line Items] | ||
Assets, fair value | 0 | 0 |
Level 3 | ||
Property, Plant and Equipment [Line Items] | ||
Assets, fair value | $ 311,886 | $ 65,203 |
Components of Interest Expense (Detail) - USD ($) $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Debt Instrument, Redemption [Line Items] | ||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 66,100 | |||
Debtor Reorganization Items, Write-off of Debt Issuance Costs and Debt Discounts | 20,500 | |||
Interest on borrowings and related fees 1 | $ 678 | 36,012 | $ 92,490 | $ 91,866 |
Amortization of debt issuance costs 2 | 226 | 22,189 | 4,749 | 4,197 |
Capitalized interest | (25) | (183) | (6,288) | (7,232) |
Interest expense | $ 879 | 58,018 | $ 90,951 | $ 88,831 |
Senior Notes Due 2019 [Member] | ||||
Debt Instrument, Redemption [Line Items] | ||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | 15,300 | |||
Senior Notes Due 2020 [Member] | ||||
Debt Instrument, Redemption [Line Items] | ||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 46,300 |
Components of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands |
4 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 12, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Net income (loss) | $ (5,296) | $ 1,054,602 | $ (1,582,961) | $ (409,592) | ||||||||
Less: Preferred stock dividends | 0 | (5,972) | [1] | (22,789) | [1] | (17,148) | [1] | |||||
Induced conversion of preferred stock | 0 | 0 | 0 | (4,256) | ||||||||
Net loss attributable to common shareholders – basic and diluted | $ (5,296) | $ 1,048,630 | $ (1,605,750) | $ (430,996) | ||||||||
Weighted-average shares – basic | 14,992 | 88,013 | 73,639 | 68,887 | ||||||||
Effect of dilutive securities | 0 | [2] | 36,074 | 0 | [2] | 0 | [2] | |||||
Weighted-average shares – diluted | 14,992 | 124,087 | 73,639 | 68,887 | ||||||||
Potentially dilutive securities with the effect of being anti-dilutive excluded from the calculation of diluted earnings per common share | 100 | 30,200 | 26,600 | |||||||||
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