Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Equity

12. Equity

New Common Stock.

As discussed in Note 2, on the Effective Date, we issued an aggregate of 97,907,081 shares of New Common Stock, par value $0.01 per share, to the holders of allowed claims, and approximately 2,092,918 shares of New Common Stock were reserved for future distributions under the Plan. During the 2021 Successor Period, 864,090 reserved shares were issued to resolve allowed unsecured claims.

As discussed in Note 4, on November 1, 2021, we acquired Vine and issued 18,709,399 shares of New Common Stock.

Dividends

In the 2021 Successor Period, we initiated a new annual dividend on our common shares, expected to be paid quarterly. The following table summarizes our dividend payments in the 2021 Successor Period:

Payment Date	Stockholders of Record Date	Dividend Payment		Rate Per Share
June 10, 2021	May 24, 2021	$	34	$	0.34375
September 9, 2021	August 24, 2021	33		$	0.34375
December 9, 2021	November 24, 2021	52		$	0.43750
Total dividends paid		$	119

Warrants

	Class A Warrants	Class B Warrants	Class C Warrants(a)
Issued as of February 10, 2021	11,111,111	12,345,679	9,768,527
Converted into New Common Stock(b)	(254,259)	(32,406)	(10,603)
Issued for General Unsecured Claims	—	—	1,630,447
Outstanding as of December 31, 2021	10,856,852	12,313,273	11,388,371

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(a)As of December 31, 2021, we had 2,318,446 of reserved Class C Warrants.

(b)As of December 31, 2021, we issued 188,292 common shares as a result of Warrant exercises.

As discussed in Note 2, on the Effective Date, we issued Class A, Class B and Class C Warrants that are initially exercisable for one share of New Common Stock per Warrant at initial exercise prices of $27.63, $32.13 and $36.18 per share, respectively, subject to adjustments pursuant to the terms of the Warrants. The Warrants are exercisable from the Effective Date until February 9, 2026. The Warrants contain customary anti-dilution adjustments in the event of any stock split, reverse stock split, reclassification, stock dividend or other distributions. The exercise prices of the Warrants were adjusted to prevent the dilution of rights for the effects of the quarterly dividend distribution on December 9, 2021, and the adjusted exercise prices are $27.08, $31.49, and $35.46 per share for the Class A, Class B and Class C Warrants, respectively.

Chapter 11 Proceedings

Upon our emergence from Chapter 11 on February 9, 2021, as discussed in Note 2, Predecessor common stock and preferred stock were canceled and released under the Plan without receiving any recovery on account thereof.

Noncontrolling Interests

In the 2019 Predecessor Period and part of the 2020 Predecessor Period, we owned 23,750,000 common units in the Chesapeake Granite Wash Trust (the “Trust”) representing a 51% beneficial interest. We determined that the Trust was a VIE and that we were the primary beneficiary. As a result, the Trust was included in our consolidated financial statements. In the 2020 Predecessor Period, we sold our interests in the Mid-Continent operating area and the units we owned in the Trust. See Note 4 for additional discussion.