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Fresh Start Accounting (Schedule of Fresh Start Adjustments) (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Sep. 01, 2020
Aug. 31, 2020
Fresh-Start Adjustment [Line Items]      
Preconfirmation, Cash and Cash Equivalents     $ 32,280
Plus: Cash and cash equivalents   $ 25,482  
Preconfirmation, Restricted Cash and Cash Equivalents, Current     0
Plus: Restricted cash   7,458  
Preconfirmation, Receivables, Net     50,621
Postconfirmation, Receivables, Net   50,621  
Preconfirmation, Inventories     64
Postconfirmation, Inventories   0  
Preconfirmation, Deferred Income Tax Assets, Current     850
Postconfirmation, Deferred Income Tax Assets, Current   850  
Preconfirmation, Prepaid and Other Current Assets     13,692
Postconfirmation, Prepaid and Other Current Assets   19,084  
Preconfirmation, Current Assets     97,507
Postconfirmation, Current Assets   103,495  
Preconfirmation, Capitalized Costs, Proved Properties     6,539,816
Postconfirmation, Capitalized Costs, Proved Properties   238,284  
Preconfirmation, Capitalized Costs of Unproved Properties     30,205
Postconfirmation, Capitalized Costs of Unproved Properties   0  
Preconfirmation, Capitalized Costs, Support Equipment and Facilities     1,285,024
Postconfirmation, Capitalized Costs, Support Equipment and Facilities   63,458  
Preconfirmation, Natural gas gathering systems and treating plants     833,788
Postconfirmation, Natural gas gathering systems and treating plants   250,098  
Preconfirmation, Saltwater disposal systems     43,541
Postconfirmation, Saltwater disposal systems   0  
Preconfirmation, Land     59,080
Postconfirmation, Land   32,635  
Preconfirmation, Equipment     15,577
Postconfirmation, Equipment   3,314  
Preconfirmation, Other Property and Equipment     57,427
Postconfirmation, Other Property and Equipment   9,958  
Preconfirmation, Property, plant and equipment, gross     8,864,458
Postconfirmation, Property, plant, and equipment, gross   597,747  
Preconfirmation, Accumulated Depreciation and Amortization     7,923,868
Postconfirmation, Accumulated Depreciation and Amortization   0  
Preconfirmation, Property and Equipment, Net     940,590
Postconfirmation, Property and Equipment, Net   597,747  
Preconfirmation, operating lease, right-of-use asset     7,476
Postconfirmation, operating lease, right-of-use asset   6,817  
Preconfirmation, Other Assets, Noncurrent     24,666
Postconfirmation, Other Assets   18,284  
Preconfirmation, Other Assets     1,070,239
Postconfirmation, Assets   726,343  
Preconfirmation, Accounts Payable     27,354
Postconfirmation, Accounts Payable   33,736  
Preconfirmation, Accrued Liabilities     36,990
Postconfirmation, Accrued Liabilities   32,875  
Preconfirmation, Operating lease, liability, current     4,643
Postconfirmation, Operating lease, liability, current   3,974  
Preconfirmation, Current Maturities of Long-term Debt     124,000
Postconfirmation, Current Maturities of Long-term Debt   400  
Preconfirmation, Current derivative liabilities     5,089
Postconfirmation, Derivative liability, current   5,089  
Preconfirmation, Warrant liability     0
Postconfirmation, Warrant liability   885  
Preconfirmation, Other Current Liabilities     11,201
Postconfirmation, Other Current Liabilities   14,960  
Preconfirmation, Current Liabilities     209,277
Postconfirmation, Current Liabilities   91,919  
Preconfirmation, Long-term Debt     16,000
Postconfirmation, Postconfirmation Credit Facility   147,600  
Preconfirmation, Derivative liability, Noncurrent     766
Postconfirmation, Derivative Liability, Noncurrent   766  
Preconfirmation, Operating lease, liability, Noncurrent     2,760
Postconfirmation, Operating lease, liability, Noncurrent   2,771  
Preconfirmation, Noncurrent Other Obligations     61,393
Postconfirmation, Noncurrent Other Obligations   43,764  
Preconfirmation, Liabilities Subject to Compromise     762,215
Postconfirmation, Liabilities Subject to Compromise   0  
Preconfirmation, Deferred Income Tax Liabilities, Noncurrent     4,466
Postconfirmation, Deferred Income Tax Liabilities, Noncurrent   0  
Preconfirmation, Preferred Stock     0
Preconfirmation, Common Stock     10,704
Preconfirmation, Additional Paid-in Capital     650,153
Postconfirmation, Preferred Stock   0  
Postconfirmation, Common Stock   120  
Postconfirmation, Additional Paid-in Capital   197,203  
Preconfirmation, Retained Earnings (Deficit)     (818,679)
Postconfirmation, Retained Earnings (Deficit)   0  
Preconfirmation, Stockholders' Equity Attributable to Parent     (157,822)
Fair value of Successor equity   197,323  
Preconfirmation, Stockholders' Equity Attributable to Noncontrolling Interest     171,184
Postconfirmation, Stockholders' Equity Attributable to Noncontrolling Interest   242,200  
Preconfirmation, Stockholders' Equity     13,362
Postconfirmation, Stockholders' Equity   439,523  
Preconfirmation, Liabilities and Stockholders' Equity     $ 1,070,239
Postconfirmation, Liabilities and Stockholders' Equity   726,343  
Operating loss carryforwards $ 409,100 726,400  
Operating loss carryforwards subject to expiration $ 223,000 584,200  
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration   142,200  
Reorganization Adjustments      
Fresh-Start Adjustment [Line Items]      
Changes in cash and cash equivalents [1],[2]   (6,798)  
Fresh-Start Adjustment, Increase (Decrease), Restricted Cash and Cash Equivalents, Current [1],[3]   7,458  
Fresh-Start Adjustment, Increase (Decrease), Receivables, Net [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Inventories [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Deferred Income Tax Assets, Current [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Prepaid and Other Current Assets [1],[4]   6,382  
Fresh-Start Adjustment, Increase (Decrease), Current Assets [1]   7,042  
Fresh Start Adjustment, Increase (Decrease), Capitalized Costs, Proved Properties [1]   0  
Fresh Start Adjustment, Increase (Decrease) Capitalized Costs of Unproved Properties [1]   0  
Fresh Start Adjustment, Increase (Decrease) Capitalized Costs, Support Equipment and Facilities [1]   0  
Fresh Start Adjustments, Increase (Decrease) Natural gas gathering systems and treating plants [1]   0  
Fresh Start Adjustments, Increase (Decrease) Saltwater disposal systems [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Land [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Equipment [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Other Property and Equipment [1]   0  
Fresh Start Adjustments, Increase (Decrease) Property, plant, and equipment, gross [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Accumulated Depreciation and Amortization [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Property and Equipment, Net [1]   0  
Fresh Start Accounting, Increase (Decrease) Operating lease, right-of-use asset [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Other Assets [1],[4]   (6,382)  
Fresh-Start Adjustment, Increase (Decrease), Assets [1]   660  
Fresh-Start Adjustment, Increase (Decrease), Accounts Payable [1],[4]   6,382  
Fresh-Start Adjustment, Increase (Decrease), Accrued Liabilities [1],[5]   (4,115)  
Fresh Start Adjustment, Increase/(Decrease), Operating Lease Liability, Current [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Current Maturities of Long-term Debt [1],[6]   (123,600)  
Fresh Start Adjustment, Increase (Decrease), Derivative liability, current [1]   0  
Fresh Start Adjustment, Increase (Decrease) Warrant liability [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Other Current Liabilities [1],[7]   3,743  
Fresh-Start Adjustment, Increase (Decrease), Current Liabilities [1]   (117,590)  
Fresh-Start Adjustment, Increase (Decrease), Postconfirmation Credit Facility [1],[6]   131,600  
Fresh Start Adjustment, Increase (Decrease), Derivative Liability, Noncurrent [1]   0  
Fresh Start Adjustment, Increase (Decrease) Operating lease, liability, noncurrent [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Noncurrent Other Obligations [1],[4],[7]   (3,220)  
Fresh-Start Adjustment, Increase (Decrease), Liabilities Subject to Compromise [1],[8]   (762,215)  
Fresh-Start Adjustment, Increase (Decrease), Deferred Income Tax Liabilities, Noncurrent [1]   0  
Preconfirmation, Preferred Stock [1]   0  
Preconfirmation, Common Stock [1],[9]   (10,704)  
Preconfirmation, Additional Paid-in Capital [1],[9]   (650,153)  
Fresh-Start Adjustment, Increase (Decrease), Preferred Stock [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Common Stock [1],[8]   120  
Fresh-Start Adjustment, Increase (Decrease), Additional Paid-in Capital [1],[8]   197,203  
Fresh-Start Adjustment, Increase (Decrease), Retained Earnings (Deficit) [1],[10]   1,215,619  
Fresh Start Adjustment, Increase (Decrease) Stockholders' Equity Attributable to Parent [1]   752,085  
Fresh Start Adjustment, Increase (Decrease) Stockholders' Equity Attributable to Noncontrolling Interest [1]   0  
Fresh-Start Adjustment, Increase (Decrease), Stockholders' Equity [1]   752,085  
Fresh-Start Adjustment, Increase (Decrease), Liabilities and Stockholders' Equity [1]   660  
Fresh start adjustments      
Fresh-Start Adjustment [Line Items]      
Changes in cash and cash equivalents   0  
Fresh-Start Adjustment, Increase (Decrease), Restricted Cash and Cash Equivalents, Current   0  
Fresh-Start Adjustment, Increase (Decrease), Receivables, Net   0  
Fresh-Start Adjustment, Increase (Decrease), Inventories [11]   (64)  
Fresh-Start Adjustment, Increase (Decrease), Deferred Income Tax Assets, Current   0  
Fresh-Start Adjustment, Increase (Decrease), Prepaid and Other Current Assets [12]   (990)  
Fresh-Start Adjustment, Increase (Decrease), Current Assets   (1,054)  
Fresh Start Adjustment, Increase (Decrease), Capitalized Costs, Proved Properties [13]   (6,301,532)  
Fresh Start Adjustment, Increase (Decrease) Capitalized Costs of Unproved Properties [13]   (30,205)  
Fresh Start Adjustment, Increase (Decrease) Capitalized Costs, Support Equipment and Facilities [14]   (1,221,566)  
Fresh Start Adjustments, Increase (Decrease) Natural gas gathering systems and treating plants [14]   (583,690)  
Fresh Start Adjustments, Increase (Decrease) Saltwater disposal systems [14]   (43,541)  
Fresh-Start Adjustment, Increase (Decrease), Land [14]   (26,445)  
Fresh-Start Adjustment, Increase (Decrease), Equipment [14]   (12,263)  
Fresh-Start Adjustment, Increase (Decrease), Other Property and Equipment [14]   (47,469)  
Fresh Start Adjustments, Increase (Decrease) Property, plant, and equipment, gross   (8,266,711)  
Fresh-Start Adjustment, Increase (Decrease), Accumulated Depreciation and Amortization [13],[14]   (7,923,868)  
Fresh-Start Adjustment, Increase (Decrease), Property and Equipment, Net   (342,843)  
Fresh Start Accounting, Increase (Decrease) Operating lease, right-of-use asset [15]   (659)  
Fresh-Start Adjustment, Increase (Decrease), Other Assets   0  
Fresh-Start Adjustment, Increase (Decrease), Assets   (344,556)  
Fresh-Start Adjustment, Increase (Decrease), Accounts Payable [16]   0  
Fresh-Start Adjustment, Increase (Decrease), Accrued Liabilities [16]   0  
Fresh Start Adjustment, Increase/(Decrease), Operating Lease Liability, Current [15],[16]   (669)  
Fresh-Start Adjustment, Increase (Decrease), Current Maturities of Long-term Debt [16]   0  
Fresh Start Adjustment, Increase (Decrease), Derivative liability, current [16]   0  
Fresh Start Adjustment, Increase (Decrease) Warrant liability [16],[17]   885  
Fresh-Start Adjustment, Increase (Decrease), Other Current Liabilities [16],[18]   16  
Fresh-Start Adjustment, Increase (Decrease), Current Liabilities [16]   232  
Fresh-Start Adjustment, Increase (Decrease), Postconfirmation Credit Facility [16]   0  
Fresh Start Adjustment, Increase (Decrease), Derivative Liability, Noncurrent [16]   0  
Fresh Start Adjustment, Increase (Decrease) Operating lease, liability, noncurrent [15],[16]   11  
Fresh-Start Adjustment, Increase (Decrease), Noncurrent Other Obligations [16],[18]   (14,409)  
Fresh-Start Adjustment, Increase (Decrease), Liabilities Subject to Compromise [16]   0  
Fresh-Start Adjustment, Increase (Decrease), Deferred Income Tax Liabilities, Noncurrent [16],[19]   (4,466)  
Preconfirmation, Preferred Stock   0  
Preconfirmation, Common Stock   0  
Preconfirmation, Additional Paid-in Capital   0  
Fresh-Start Adjustment, Increase (Decrease), Preferred Stock   0  
Fresh-Start Adjustment, Increase (Decrease), Common Stock   0  
Fresh-Start Adjustment, Increase (Decrease), Additional Paid-in Capital   0  
Fresh-Start Adjustment, Increase (Decrease), Retained Earnings (Deficit) [20]   (396,940)  
Fresh Start Adjustment, Increase (Decrease) Stockholders' Equity Attributable to Parent   (396,940)  
Fresh Start Adjustment, Increase (Decrease) Stockholders' Equity Attributable to Noncontrolling Interest [21]   71,016  
Fresh-Start Adjustment, Increase (Decrease), Stockholders' Equity   (325,924)  
Fresh-Start Adjustment, Increase (Decrease), Liabilities and Stockholders' Equity   $ (344,556)  
[1] Reflects accounts recorded as of the Effective Date, including among other items, settlement of the Predecessor's liabilities subject to compromise, cancellation of the Predecessor's equity, issuance of the New Common Stock and the Warrants, repayment of certain of Predecessor's liabilities and settlement with holders of the Notes.
[2] The table below details the company’s uses of cash, under the terms of the Plan described in Note 2 – Emergence From Voluntary Reorganization Under Chapter 11 (in thousands):
Funding of the professional fees escrow account$(7,458)
Proceeds from Exit credit facility8,000 
Payment of debt issuance costs on the Exit credit facility(3,225)
Payment of professional fees(3,943)
Payment of accrued interest payable under the Predecessor credit facility(172)
Changes in cash and cash equivalents$(6,798)
[3] Represents the reserve for professional fee escrow of $7.5 million.
[4] Represents the reclassification of other long-term assets related to deferred compensation to prepaid expenses and other assets as the deferred compensation payout must be paid within 12 months from the date of emergence under the Plan. Simultaneously, the current portion of deferred compensation liability was reclassified from other long-term liabilities to accounts payable.
[5] Represents the payment of the DIP facility interest of $0.2 million and professional fees for $3.9 million
[6] Represents the transition of the DIP Credit Agreement and the Predecessor Credit Agreement of $124.0 million into the Exit Facility and issuing an additional $8.0 million of borrowings under the Exit Credit Agreement.
[7] Represents the reclassification of the short-term portion of the separation benefit liabilities from non-current to current liabilities which was offset by the increase in non-current portion of liabilities.
[8] Settlement of liabilities subject to compromise and the resulting net gain were determined as follows (in thousands):
Liabilities subject to compromise before the Effective Date:
6.625% senior subordinated notes due 2021 (including accrued interest as of the petition date)$672,369 
Accounts payable1,179 
Employee separation benefit plan obligations23,394 
Litigation settlements45,000 
Royalty suspense accounts payable20,273 
Total liabilities subject to compromise762,215 
Separation settlement treatment(6,905)
Successor Common Stock and APIC(1) issued to allowed claim holders
(175,521)
Successor Common Stock and APIC for disputed claims reserve(11,936)
Gain on settlement of liabilities subject to compromise$567,853 
(1)    Balance excludes the Successor Common Stock and APIC of $9.9 million to the 5% Equity Facility which was not a liability subject to compromise.
[9] Represents the cancellation of Old Common Stock.
[10] Represents the cumulative impact to Predecessor retained earnings of the reorganization adjustments described above.
[11] Represents the reclassification of materials and supplies to proved properties.
[12] Represents the write off of the Predecessor's unamortized debt fees related to the DIP facility.
[13] Reflects a decrease of oil and natural gas properties, net, based on the methodology discussed above, and the elimination of accumulated depletion and amortization. The following table summarizes the components of oil and natural gas properties as of the Effective Date:
SuccessorPredecessor
Fair ValueHistorical Book Value
(In thousands)
Proved properties$238,284 $6,539,816 
Unproved properties— 30,205 
238,284 6,570,021 
Less accumulated depletion, amortization, and impairment— (6,305,113)
$238,284 $264,908 
[14] Reflects a decrease in fair value of drilling equipment, gas gathering and processing equipment, saltwater disposal systems, land and building, transportation equipment, and other property and equipment and the elimination of accumulated depreciation, based on the methodologies discussed above. The following table summarizes the components of other property and equipment as of the Effective Date:
SuccessorPredecessor
Fair ValueHistorical Book Value
(In thousands)
Drilling equipment$63,458 $1,285,024 
Gas gathering and processing equipment250,098 833,788 
Saltwater disposal systems— 43,541 
Land and building32,635 59,080 
Transportation equipment3,314 15,577 
Other9,958 57,427 
359,463 2,294,437 
Less accumulated depreciation and impairment— (1,618,754)
$359,463 $675,683 
[15] Reflects the valuation adjustments to the company’s right of use assets, current operating lease liability, and operating lease liability, adjusted for fair value of favorable and unfavorable lease terms, and the revised incremental borrowing rates of the Successor.
[16] Reflects accounts recorded as of the Effective Date for the fresh start adjustments based on the methodologies noted below.
[17] Represents the liability for the Warrants using a Black-Scholes-Merton model which uses various market-based inputs including: stock prices, strike price, time to maturity, risk-free rate, annual volatility rate, and annual dividend yield.
[18] Represents the reclassification of the short-term portion of ARO from non-current liabilities to current and the fair value adjustment, which was determined using our fresh start updates to these obligations, including the application of the Successor's credit adjusted risk free rate, which now incorporates a term structure based on the estimated timing of well plugging activity, and resetting all ARO to a single layer.
[19] Represents the adjustments to deferred tax liability as a result of the cumulative tax impact of the fresh start adjustments. The significant revisions to the carrying value of our assets and liabilities because of applying fresh start accounting resulted in the company increasing its overall net deferred tax asset position on emergence from bankruptcy. Besides the changes in book value, the company has as of the Effective Date, approximately $726.4 million of net operating losses (NOLs) carried forward to offset taxable income in the future years. Approximately $584.2 million of this NOL will expire commencing in fiscal 2021 through 2037. The NOLs of approximately $142.2 million from years ended
after December 31, 2017 have an indefinite carryforward period. The amount of these NOLs which is available to offset future income may be severely limited due to change-in-control tax provisions.
Because of our history of operating losses and the uncertainty surrounding the realization of the deferred tax assets in future years, we have determined that it is more likely than not that the deferred tax assets will not be realized in future periods. Accordingly, we recorded a 100% valuation allowance against our net deferred tax assets.
[20] Represents the cumulative impact of the fresh start accounting adjustments discussed above.
[21] The valuation of the non-controlling interest was calculated by taking an income-based approach in valuing Superior. The value of the non-controlling interest was then determined based on a market-based approach for similar type investments, given the contractual rights of the related parties.