(Exact Name of Registrant as Specified in Its Charter) |
State or Other Jurisdiction of Incorporation or Organization | I.R.S. Employer Identification No. | ||||||||||
Address of Principal Executive Offices | Zip Code |
Registrant’s Telephone Number, Including Area Code | |||||||||||||||||||||||
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Part I. Financial Information | |||||
Item 1. Financial Statements (Unaudited) | |||||
Consolidated Statements of Cash Flows | |||||
Part II. Other Information | |||||
September 30, 2020 | December 31, 2019 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, net | ||||||||||||||
Fair value of derivatives | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Oil and natural gas properties, full cost accounting method: | ||||||||||||||
Evaluated properties | ||||||||||||||
Unevaluated properties | ||||||||||||||
Total oil and natural gas properties, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Other property and equipment, net | ||||||||||||||
Deferred tax asset | ||||||||||||||
Deferred financing costs | ||||||||||||||
Other assets, net | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued liabilities | $ | $ | ||||||||||||
Operating lease liabilities | ||||||||||||||
Fair value of derivatives | ||||||||||||||
Other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Asset retirement obligations | ||||||||||||||
Fair value of derivatives | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Common stock, $ | ||||||||||||||
Capital in excess of par value | ||||||||||||||
Retained earnings (Accumulated deficit) | ( | |||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating revenues: | |||||||||||||||||||||||
Oil | $ | $ | $ | $ | |||||||||||||||||||
Natural gas | |||||||||||||||||||||||
Natural gas liquids | |||||||||||||||||||||||
Sales of purchased oil and gas | |||||||||||||||||||||||
Total operating revenues | |||||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Lease operating | |||||||||||||||||||||||
Production and ad valorem taxes | |||||||||||||||||||||||
Gathering, transportation and processing | |||||||||||||||||||||||
Cost of purchased oil and gas | |||||||||||||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Impairment of evaluated oil and gas properties | |||||||||||||||||||||||
Merger and integration | |||||||||||||||||||||||
Other operating | ( | ||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income (Loss) From Operations | ( | ( | |||||||||||||||||||||
Other (Income) Expenses: | |||||||||||||||||||||||
Interest expense, net of capitalized amounts | |||||||||||||||||||||||
(Gain) loss on derivative contracts | ( | ( | |||||||||||||||||||||
Other (income) expense | ( | ( | ( | ( | |||||||||||||||||||
Total other (income) expense | ( | ( | |||||||||||||||||||||
Income (Loss) Before Income Taxes | ( | ( | |||||||||||||||||||||
Income tax expense | ( | ( | ( | ||||||||||||||||||||
Net Income (Loss) | ( | ( | |||||||||||||||||||||
Preferred stock dividends | ( | ( | |||||||||||||||||||||
Loss on redemption of preferred stock | ( | ( | |||||||||||||||||||||
Income (Loss) Available to Common Stockholders | ($ | $ | ($ | $ | |||||||||||||||||||
Income (Loss) Available to Common Stockholders Per Common Share (1): | |||||||||||||||||||||||
Basic | ($ | $ | ($ | $ | |||||||||||||||||||
Diluted | ($ | $ | ($ | $ | |||||||||||||||||||
Weighted Average Common Shares Outstanding (1): | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Retained | |||||||||||||||||||||||||||||||||||||||||
Preferred | Common | Capital in | Earnings | Total | |||||||||||||||||||||||||||||||||||||
Stock | Stock | Excess | (Accumulated | Stockholders’ | |||||||||||||||||||||||||||||||||||||
Shares | $ | Shares (1) | $ | of Par | Deficit) | Equity | |||||||||||||||||||||||||||||||||||
Balance at 12/31/2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Restricted stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance at 3/31/2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Restricted stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Balance at 6/30/2020 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Restricted stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Reverse stock split | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at 9/30/2020 | $ | $ | $ | $ | ( | $ |
Preferred | Common | Capital in | Total | ||||||||||||||||||||||||||||||||||||||
Stock | Stock | Excess | Accumulated | Stockholders’ | |||||||||||||||||||||||||||||||||||||
Shares | $ | Shares (1) | $ | of Par | Deficit | Equity | |||||||||||||||||||||||||||||||||||
Balance at 12/31/2018 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Shares issued pursuant to employee benefit plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Restricted stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at 3/31/2019 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Restricted stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Preferred stock redemption costs | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance at 6/30/2019 | $ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Restricted stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Preferred stock redemption | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Loss on redemption of preferred stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at 9/30/2019 | $ | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
Cash flows from operating activities: | 2020 | 2019 | |||||||||
Net income (loss) | ($ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation, depletion and amortization | |||||||||||
Impairment of evaluated oil and gas properties | |||||||||||
Amortization of non-cash debt related items | |||||||||||
Deferred income tax expense | |||||||||||
(Gain) loss on derivative contracts | ( | ||||||||||
Cash (paid) received for commodity derivative settlements | ( | ||||||||||
Loss on sale of other property and equipment | |||||||||||
Non-cash expense related to equity share-based awards | |||||||||||
Change in the fair value of liability share-based awards | ( | ||||||||||
Payments to settle asset retirement obligations | ( | ||||||||||
Payments for cash-settled restricted stock unit awards | ( | ( | |||||||||
Other, net | |||||||||||
Changes in current assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Other current assets | ( | ( | |||||||||
Current liabilities | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisitions | ( | ||||||||||
Proceeds from sale of assets | |||||||||||
Cash paid for settlements of contingent consideration arrangements, net | ( | ||||||||||
Other, net | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings on senior secured revolving credit facility | |||||||||||
Payments on senior secured revolving credit facility | ( | ( | |||||||||
Issuance of | |||||||||||
Discount on the issuance of | ( | ||||||||||
Issuance of warrants | |||||||||||
Payment of preferred stock dividends | ( | ||||||||||
Payment of deferred financing costs | ( | ( | |||||||||
Tax withholdings related to restricted stock units | ( | ( | |||||||||
Redemption of preferred stock | ( | ||||||||||
Other, net | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Balance, beginning of period | |||||||||||
Balance, end of period | $ | $ | |||||||||
9. | |||||||||||
10. | Share-based Compensation | ||||||||||
3. | Acquisitions and Divestitures | 11. | Stockholders’ Equity | ||||||||
4. | Property and Equipment, Net | 12. | |||||||||
5. | 13. | Accounts Receivable, Net | |||||||||
6. | 14. | Accounts Payable and Accrued Liabilities | |||||||||
7. | 15. | Supplemental Cash Flow | |||||||||
8. | 16. | Subsequent Events |
Preliminary Purchase Price Allocation | ||||||||
(In thousands) | ||||||||
Consideration: | ||||||||
Fair value of the Company’s common stock issued | $ | |||||||
Total consideration | $ | |||||||
Liabilities: | ||||||||
Accounts payable | $ | |||||||
Revenues and royalties payable | ||||||||
Operating lease liabilities - current | ||||||||
Fair value of derivatives - current | ||||||||
Other current liabilities | ||||||||
Long-term debt | ||||||||
Operating lease liabilities - non-current | ||||||||
Asset retirement obligation | ||||||||
Fair value of derivatives - non-current | ||||||||
Other long-term liabilities | ||||||||
Common stock warrants | ||||||||
Total liabilities assumed | $ | |||||||
Assets: | ||||||||
Accounts receivable, net | $ | |||||||
Fair value of derivatives - current | ||||||||
Other current assets | ||||||||
Evaluated oil and natural gas properties | ||||||||
Unevaluated properties | ||||||||
Other property and equipment | ||||||||
Fair value of derivatives - non-current | ||||||||
Deferred tax asset | ||||||||
Operating lease right-of-use-assets | ||||||||
Other long term assets | ||||||||
Total assets acquired | $ |
For the Year Ended | ||||||||
December 31, 2019 | ||||||||
(In thousands) | ||||||||
Revenues | $ | |||||||
Income from operations | ||||||||
Net income | ||||||||
Basic earnings per common share | ||||||||
Diluted earnings per common share |
September 30, 2020 | December 31, 2019 | |||||||||||||
Oil and natural gas properties, full cost accounting method | (In thousands) | |||||||||||||
Evaluated properties | $ | $ | ||||||||||||
Accumulated depreciation, depletion, amortization and impairments | ( | ( | ||||||||||||
Net evaluated oil and natural gas properties | ||||||||||||||
Unevaluated properties | ||||||||||||||
Unevaluated leasehold and seismic costs | ||||||||||||||
Capitalized interest | ||||||||||||||
Total unevaluated properties | ||||||||||||||
Total oil and natural gas properties, net | $ | $ | ||||||||||||
Other property and equipment | $ | $ | ||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Other property and equipment, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Impairment of evaluated oil and gas properties (in thousands) | $ | $ | $ | $ | ||||||||||||||||||||||
Beginning of period 12-Month Average Realized Price ($/Bbl) | $ | $ | $ | $ | ||||||||||||||||||||||
End of period 12-Month Average Realized Price ($/Bbl) | $ | $ | $ | $ | ||||||||||||||||||||||
Percent decrease in 12-Month Average Realized Price | ( | %) | ( | %) | ( | %) | ( | %) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||
Net income (loss) | ($ | $ | ($ | $ | |||||||||||||||||||
Preferred stock dividends (1) | ( | ( | |||||||||||||||||||||
Loss on redemption of preferred stock | ( | ( | |||||||||||||||||||||
Income (loss) available to common stockholders | ($ | $ | ($ | $ | |||||||||||||||||||
Basic weighted average common shares outstanding (2) | |||||||||||||||||||||||
Dilutive impact of restricted stock (2) | |||||||||||||||||||||||
Diluted weighted average common shares outstanding (2) | |||||||||||||||||||||||
Income (Loss) Available to Common Stockholders Per Common Share (2) | |||||||||||||||||||||||
Basic | ($ | $ | ($ | $ | |||||||||||||||||||
Diluted | ($ | $ | ($ | $ | |||||||||||||||||||
Restricted stock (2)(3) |
September 30, 2020 | December 31, 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Senior Secured Revolving Credit Facility due 2024 | $ | $ | ||||||||||||
Total principal outstanding | ||||||||||||||
Unamortized premium on | ||||||||||||||
Unamortized premium on | ||||||||||||||
Unamortized premium on | ||||||||||||||
Unamortized discount on | ( | |||||||||||||
Unamortized deferred financing costs for Senior Notes | ( | ( | ||||||||||||
Total carrying value of borrowings (1) | $ | $ |
Issuance Date Fair Value Assumptions | ||||||||
Exercise price | $ | |||||||
Expected term (in years) | ||||||||
Expected volatility | % | |||||||
Risk-free interest rate | % | |||||||
Dividend yield | % |
Year | Threshold (1) | Contingent Receipt - Annual | Threshold (1) | Contingent Receipt - Annual | Period Cash Flow Occurs | Statement of Cash Flows Presentation | Remaining Contingent Receipt - Aggregate Limit (3) | Divestiture Date Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Settlement | 2019 | Greater than $60/Bbl, less than $65/Bbl | $ | Equal to or greater than $ | $ | 1Q20 | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||
Remaining Potential Settlements | 2020-2021 | Greater than $60/Bbl, less than $65/Bbl | $ | Equal to or greater than $ | $ | (2) | (2) | $ |
Year | Threshold (1) | Period Cash Flow Occurs | Statement of Cash Flows Presentation | Contingent Payment - Annual | Remaining Contingent Payments - Aggregate Limit | Acquisition Date Fair Value | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
($ | ||||||||||||||||||||||||||||||||||||||||||||
Actual Settlement(2)(3) | 2019 | $ | 1Q20 | Investing | ($ | |||||||||||||||||||||||||||||||||||||||
Remaining Potential Settlements | 2020-2021 | $ | (2) | (2) | ($ | ($ |
As of September 30, 2020 | |||||||||||||||||
Presented without | As Presented with | ||||||||||||||||
Effects of Netting | Effects of Netting | Effects of Netting | |||||||||||||||
ASSETS | (In thousands) | ||||||||||||||||
Commodity derivative instruments | $ | ($ | $ | ||||||||||||||
Contingent consideration arrangements | |||||||||||||||||
Fair value of derivatives - current | $ | ($ | $ | ||||||||||||||
Commodity derivative instruments | ( | ||||||||||||||||
Contingent consideration arrangements | |||||||||||||||||
Other assets, net | $ | ($ | $ | ||||||||||||||
LIABILITIES | |||||||||||||||||
Commodity derivative instruments | ($ | $ | ($ | ||||||||||||||
Contingent consideration arrangements | ( | ( | |||||||||||||||
Fair value of derivatives - current | ($ | $ | ($ | ||||||||||||||
Commodity derivative instruments | ( | ( | |||||||||||||||
Contingent consideration arrangements | ( | ( | |||||||||||||||
Warrant liability | ( | ( | |||||||||||||||
Fair value of derivatives - non current | ($ | $ | ($ |
As of December 31, 2019 | |||||||||||||||||
Presented without | As Presented with | ||||||||||||||||
Effects of Netting | Effects of Netting | Effects of Netting | |||||||||||||||
ASSETS | (In thousands) | ||||||||||||||||
Commodity derivative instruments | $ | ($ | $ | ||||||||||||||
Contingent consideration arrangements | |||||||||||||||||
Fair value of derivatives - current | $ | ($ | $ | ||||||||||||||
Commodity derivative instruments | |||||||||||||||||
Contingent consideration arrangements | |||||||||||||||||
Other assets, net | $ | $ | $ | ||||||||||||||
LIABILITIES | |||||||||||||||||
Commodity derivative instruments | ($ | $ | ($ | ||||||||||||||
Contingent consideration arrangements | ( | ( | |||||||||||||||
Fair value of derivatives - current | ($ | $ | ($ | ||||||||||||||
Commodity derivative instruments | ( | ( | |||||||||||||||
Contingent consideration arrangements | ( | ( | |||||||||||||||
Fair value of derivatives - non current | ($ | $ | ($ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
(Gain) loss on oil derivatives | $ | ($ | ($ | $ | |||||||||||||||||||
(Gain) loss on natural gas derivatives | ( | ( | |||||||||||||||||||||
(Gain) loss on NGL derivatives | |||||||||||||||||||||||
(Gain) loss on contingent consideration arrangements | ( | ||||||||||||||||||||||
(Gain) loss on derivative contracts | $ | ($ | ($ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Cash (paid) received on oil derivatives | $ | ($ | $ | ($ | |||||||||||||||||||
Cash (paid) received on natural gas derivatives | ( | ||||||||||||||||||||||
Cash (paid) received for commodity derivative settlements | $ | $ | $ | ($ | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Cash paid for settlements of contingent consideration arrangements, net | $ | $ | ($ | $ |
For the Remainder | For the Full Year | ||||||||||||||||
Oil contracts (WTI) | of 2020 | of 2021 | |||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | $ | $ | |||||||||||||||
Collar contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | |||||||||||||||||
Ceiling (short call) | $ | $ | |||||||||||||||
Floor (long put) | $ | $ | |||||||||||||||
Short put contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | $ | $ | |||||||||||||||
Long call contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | $ | $ | |||||||||||||||
Short call contracts | |||||||||||||||||
Total volume (Bbls) | (1) | (1) | |||||||||||||||
Weighted average price per Bbl | $ | $ | |||||||||||||||
Short call swaption contracts | |||||||||||||||||
Total volume (Bbls) | (2) | ||||||||||||||||
Weighted average price per Bbl | $ | $ | |||||||||||||||
Oil contracts (Brent ICE) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | $ | $ | |||||||||||||||
Collar contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | |||||||||||||||||
Ceiling (short call) | $ | $ | |||||||||||||||
Floor (long put) | $ | $ | |||||||||||||||
Oil contracts (Midland basis differential) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | ($ | $ | |||||||||||||||
Oil contracts (Argus Houston MEH basis differential) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | $ | $ | |||||||||||||||
Oil contracts (Argus Houston MEH swaps) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | $ | $ |
For the Remainder | For the Full Year | ||||||||||||||||
Natural gas contracts (Henry Hub) | of 2020 | of 2021 | |||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (MMBtu) | |||||||||||||||||
Weighted average price per MMBtu | $ | $ | |||||||||||||||
Collar contracts (three-way collars) | |||||||||||||||||
Total volume (MMBtu) | |||||||||||||||||
Weighted average price per MMBtu | |||||||||||||||||
Ceiling (short call) | $ | $ | |||||||||||||||
Floor (long put) | $ | $ | |||||||||||||||
Floor (short put) | $ | $ | |||||||||||||||
Collar contracts (two-way collars) | |||||||||||||||||
Total volume (MMBtu) | |||||||||||||||||
Weighted average price per MMBtu | |||||||||||||||||
Ceiling (short call) | $ | $ | |||||||||||||||
Floor (long put) | $ | $ | |||||||||||||||
Short call contracts | |||||||||||||||||
Total volume (MMBtu) | |||||||||||||||||
Weighted average price per MMBtu | $ | $ | |||||||||||||||
Natural gas contracts (Waha basis differential) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (MMBtu) | |||||||||||||||||
Weighted average price per MMBtu | ($ | ($ |
For the Remainder | For the Full Year | ||||||||||||||||
NGL contracts (OPIS Mont Belvieu Purity Ethane) | of 2020 | of 2021 | |||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | |||||||||||||||||
Weighted average price per Bbl | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Principal Amount | Fair Value | Principal Amount | Fair Value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Principal Amount | Fair Value | Principal Amount | Fair Value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
$ | $ | $ | $ |
September 30, 2020 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
(In thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Commodity derivative instruments | $ | $ | $ | ||||||||||||||
Contingent consideration arrangements | |||||||||||||||||
Liabilities | |||||||||||||||||
Commodity derivative instruments | ( | ||||||||||||||||
Contingent consideration arrangements | ( | ||||||||||||||||
Total net assets (liabilities) | $ | ($ | $ | ||||||||||||||
December 31, 2019 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||
(In thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Commodity derivative instruments | $ | $ | $ | ||||||||||||||
Contingent consideration arrangements | |||||||||||||||||
Liabilities | |||||||||||||||||
Commodity derivative instruments | ( | ||||||||||||||||
Contingent consideration arrangements | ( | ||||||||||||||||
Total net assets (liabilities) | $ | ($ | $ |
Nine Months Ended September 30, 2020 | ||||||||
Beginning of period | $ | |||||||
Recognition of issuance date fair value | ||||||||
Gain (loss) on changes in fair value | ||||||||
Transfers into (out of) Level 3 | ||||||||
End of period | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Income tax provision computed at statutory federal income tax rate | % | % | % | % | |||||||||||||||||||
State taxes net of federal expense | % | % | % | % | |||||||||||||||||||
Section 162(m) | % | % | % | % | |||||||||||||||||||
Effective income tax rate, before discrete items | % | % | % | % | |||||||||||||||||||
Valuation allowance | ( | %) | % | ( | %) | % | |||||||||||||||||
Other discrete items (1) | % | % | % | % | |||||||||||||||||||
Effective income tax rate, after discrete items | % | % | ( | %) | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
RSU Equity Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | RSU Equity Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | |||||||||||||||||||||||
Unvested, beginning of the period | $ | $ | ||||||||||||||||||||||||
Granted (2) | $ | $ | ||||||||||||||||||||||||
Vested (3) | ( | $ | ( | $ | ||||||||||||||||||||||
Forfeited | ( | $ | ( | $ | ||||||||||||||||||||||
Unvested, end of the period | $ | $ |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
RSU Equity Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | RSU Equity Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | |||||||||||||||||||||||
Unvested, beginning of the period | $ | $ | ||||||||||||||||||||||||
Granted (2) | $ | $ | ||||||||||||||||||||||||
Vested (3) | ( | $ | ( | $ | ||||||||||||||||||||||
Forfeited | ( | $ | ( | $ | ||||||||||||||||||||||
Unvested, end of the period | $ | $ |
Performance-based Awards | June 29, 2020 | January 31, 2020 | January 31, 2019 | |||||||||||||||||
Expected term (in years) | ||||||||||||||||||||
Expected volatility | % | % | % | |||||||||||||||||
Risk-free interest rate | % | % | % | |||||||||||||||||
Dividend yield | % | % | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Cash-Settled RSU Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | Cash-Settled RSU Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | |||||||||||||||||||||||
Unvested, beginning of the period | $ | $ | ||||||||||||||||||||||||
Granted | $ | $ | ||||||||||||||||||||||||
Vested | ( | $ | $ | |||||||||||||||||||||||
Did not vest at end of performance period | ( | $ | $ | |||||||||||||||||||||||
Forfeited | $ | ( | $ | |||||||||||||||||||||||
Unvested, end of the period | $ | $ |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Cash-Settled RSU Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | Cash-Settled RSU Awards (in thousands) (1) | Weighted Average Grant Date Fair Value (1) | |||||||||||||||||||||||
Unvested, beginning of the period | $ | $ | ||||||||||||||||||||||||
Granted | $ | $ | ||||||||||||||||||||||||
Vested | ( | $ | ( | $ | ||||||||||||||||||||||
Did not vest at end of performance period | ( | $ | $ | |||||||||||||||||||||||
Forfeited | $ | ( | $ | |||||||||||||||||||||||
Unvested, end of the period | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Other current liabilities | $ | $ | ||||||||||||
Other long-term liabilities | ||||||||||||||
Total Cash-Settled RSU Awards | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
RSU Equity Awards | $ | $ | $ | $ | ||||||||||||||||||||||
Cash-Settled RSU Awards | ( | ( | ( | |||||||||||||||||||||||
Cash SARs | ( | ( | ||||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||||
Less: amounts capitalized to oil and gas properties | ( | ( | ( | ( | ||||||||||||||||||||||
Total share-based compensation expense (benefit), net | ($ | $ | ($ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Components of Lease Costs | |||||||||||||||||||||||
Finance lease costs | $ | $ | $ | $ | |||||||||||||||||||
Amortization of right-of-use assets (1) | |||||||||||||||||||||||
Interest on lease liabilities (2) | |||||||||||||||||||||||
Operating lease costs (3) | |||||||||||||||||||||||
Impairment of Operating lease ROU assets (4) | |||||||||||||||||||||||
Short-term lease costs (5) | |||||||||||||||||||||||
Variable lease costs (6) | |||||||||||||||||||||||
Total lease costs | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(In thousands) | |||||||||||
Leases | |||||||||||
Operating leases: | |||||||||||
Operating lease ROU assets | $ | $ | |||||||||
Current operating lease liabilities | $ | $ | |||||||||
Long-term operating lease liabilities | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Financing leases: | |||||||||||
Other property and equipment | $ | $ | |||||||||
Accumulated depreciation | ( | ( | |||||||||
Other property and equipment, net | $ | $ | |||||||||
Current financing lease liabilities | $ | $ | |||||||||
Long-term financing lease liabilities | |||||||||||
Total financing lease liabilities | $ | $ |
As of September 30, 2020 | |||||
Weighted Average Remaining Lease Term (In years) | |||||
Operating leases | |||||
Financing leases | |||||
Weighted Average Discount Rate | |||||
Operating leases | % | ||||
Financing leases | % |
Operating Leases | Financing Leases | ||||||||||
(In thousands) | |||||||||||
Remainder of 2020 | $ | $ | |||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less imputed interest | ( | ( | |||||||||
Total | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(In thousands) | |||||||||||
Oil and natural gas receivables | $ | $ | |||||||||
Joint interest receivables | |||||||||||
Other receivables | |||||||||||
Total | |||||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Total accounts receivable, net | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(In thousands) | |||||||||||
Accounts payable | $ | $ | |||||||||
Revenues payable | |||||||||||
Accrued capital expenditures | |||||||||||
Accrued interest | |||||||||||
Accrued severance (1) | |||||||||||
Total accounts payable and accrued liabilities | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Supplemental cash flow information: | |||||||||||
Interest paid, net of capitalized amounts | $ | $ | |||||||||
Income taxes paid | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Investing cash flows from operating leases | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Change in accrued capital expenditures | ($ | ($ | |||||||||
Change in asset retirement costs | ( | ||||||||||
ROU assets obtained in exchange for lease liabilities: | |||||||||||
Operating leases | $ | $ |
For the Full Year | |||||
Oil contracts (WTI) | of 2021 | ||||
Collar contracts | |||||
Total volume (Bbls) | |||||
Weighted average price per Bbl | |||||
Ceiling (short call) | $ | ||||
Floor (long put) | $ |
For the Full Year | |||||
Natural gas contracts (Waha basis differential) | of 2021 | ||||
Swap contracts | |||||
Total volume (MMBtu) | |||||
Weighted average price per MMBtu | ($ |
Three Months Ended September 30, 2020 | As of September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Drilled | Completed | Drilled But Uncompleted | Producing | |||||||||||||||||||||||||||||||||||||||||||||||
Region | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||||||||||||
Permian Basin | — | — | 6 | 5.5 | 30 | 27.4 | 842 | 731.7 | ||||||||||||||||||||||||||||||||||||||||||
Eagle Ford Shale | — | — | 6 | 5.9 | 29 | 29.0 | 637 | 574.2 | ||||||||||||||||||||||||||||||||||||||||||
Total | — | — | 12 | 11.4 | 59 | 56.4 | 1,479 | 1,305.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
Total production (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Oil (MBbls) | 5,875 | 2,725 | 3,150 | 116 | % | 18,118 | 8,431 | 9,687 | 115 | % | ||||||||||||||||||||||||||||||||||||||||
Natural gas (MMcf) | 10,261 | 4,538 | 5,723 | 126 | % | 31,064 | 14,188 | 16,876 | 119 | % | ||||||||||||||||||||||||||||||||||||||||
NGLs (MBbls) | 1,802 | — | 1,802 | 100 | % | 5,166 | — | 5,166 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Total barrels of oil equivalent (MBoe) | 9,387 | 3,481 | 5,906 | 170 | % | 28,461 | 10,796 | 17,665 | 164 | % | ||||||||||||||||||||||||||||||||||||||||
Total daily production (Boe/d) | 102,029 | 37,837 | 64,192 | 170 | % | 103,873 | 39,546 | 64,327 | 163 | % | ||||||||||||||||||||||||||||||||||||||||
Oil as % of total daily production | 63 | % | 78 | % | 64 | % | 78 | % | ||||||||||||||||||||||||||||||||||||||||||
Average realized sales price (excluding impact of settled derivatives) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Oil (per Bbl) | $39.43 | $54.39 | ($14.96) | (28 | %) | $34.66 | $53.38 | ($18.72) | (35 | %) | ||||||||||||||||||||||||||||||||||||||||
Natural gas (per Mcf) | 1.47 | 1.58 | (0.11) | (7 | %) | 1.07 | 1.79 | (0.72) | (40 | %) | ||||||||||||||||||||||||||||||||||||||||
NGLs (per Bbl) | 12.78 | — | 12.78 | 100 | % | 10.77 | — | 10.77 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Total (per Boe) | $28.73 | $44.64 | ($15.91) | (36 | %) | $25.19 | $44.04 | ($18.85) | (43 | %) | ||||||||||||||||||||||||||||||||||||||||
Revenues (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Oil | $231,654 | $148,210 | $83,444 | 56 | % | $627,934 | $450,036 | $177,898 | 40 | % | ||||||||||||||||||||||||||||||||||||||||
Natural gas | 15,034 | 7,168 | 7,866 | 110 | % | 33,305 | 25,441 | 7,864 | 31 | % | ||||||||||||||||||||||||||||||||||||||||
NGLs | 23,025 | — | 23,025 | 100 | % | 55,627 | — | 55,627 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Total | $269,713 | $155,378 | $114,335 | 74 | % | $716,866 | $475,477 | $241,389 | 51 | % | ||||||||||||||||||||||||||||||||||||||||
Benchmark prices (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
WTI (per Bbl) | $40.94 | $56.34 | ($15.40) | (27 | %) | $38.30 | $57.04 | ($18.74) | (33 | %) | ||||||||||||||||||||||||||||||||||||||||
Henry Hub (per Mcf) | 2.13 | 2.38 | (0.25) | (11 | %) | 1.92 | 2.62 | (0.70) | (27 | %) |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
Oil | Natural Gas | NGLs | Total | Oil | Natural Gas | NGLs | Total | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues for the periods ended in 2019 | $148,210 | $7,168 | $— | $155,378 | $450,036 | $25,441 | $— | $475,477 | ||||||||||||||||||||||||||||||||||||||||||
Volume increase (decrease) | 171,325 | 9,040 | 23,025 | 203,390 | 517,080 | 30,261 | 55,627 | 602,968 | ||||||||||||||||||||||||||||||||||||||||||
Price increase (decrease) | (87,881) | (1,174) | — | (89,055) | (339,182) | (22,397) | — | (361,579) | ||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) | 83,444 | 7,866 | 23,025 | 114,335 | 177,898 | 7,864 | 55,627 | 241,389 | ||||||||||||||||||||||||||||||||||||||||||
Revenues for the periods ended in 2020 (1) | $231,654 | $15,034 | $23,025 | $269,713 | $627,934 | $33,305 | $55,627 | $716,866 |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
Per | Per | Total Change | Boe Change | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | Boe | 2019 | Boe | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per Boe and % amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Lease operating expenses | $45,870 | $4.89 | $19,668 | $5.65 | $26,202 | 133 | % | ($0.76) | (13 | %) | ||||||||||||||||||||||||||||||||||||||||
Production and ad valorem taxes | 16,110 | 1.72 | 11,866 | 3.41 | 4,244 | 36 | % | (1.69) | (50 | %) | ||||||||||||||||||||||||||||||||||||||||
Gathering, transportation and processing | 22,200 | 2.36 | — | — | 22,200 | 100 | % | 2.36 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 114,201 | 12.17 | 56,130 | 16.12 | 58,071 | 103 | % | (3.95) | (25 | %) | ||||||||||||||||||||||||||||||||||||||||
General and administrative | 8,224 | 0.88 | 9,388 | 2.70 | (1,164) | (12 | %) | (1.82) | (67 | %) | ||||||||||||||||||||||||||||||||||||||||
Impairment of evaluated oil and gas properties | 684,956 | 72.97 | — | — | 684,956 | 100 | % | 72.97 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Merger and integration | 2,465 | 0.26 | 5,943 | 1.71 | (3,478) | (59 | %) | (1.45) | (85 | %) |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
Per | Per | Total Change | Boe Change | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | Boe | 2019 | Boe | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per Boe and % amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Lease operating expenses | $149,091 | $5.24 | $66,511 | $6.16 | $82,580 | 124 | % | ($0.92) | (15 | %) | ||||||||||||||||||||||||||||||||||||||||
Production and ad valorem taxes | 46,151 | 1.62 | 33,810 | 3.13 | 12,341 | 37 | % | (1.51) | (48 | %) | ||||||||||||||||||||||||||||||||||||||||
Gathering, transportation and processing | 56,615 | 1.99 | — | — | 56,615 | 100 | % | 1.99 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 384,594 | 13.51 | 179,275 | 16.61 | 205,319 | 115 | % | (3.10) | (19 | %) | ||||||||||||||||||||||||||||||||||||||||
General and administrative | 26,573 | 0.93 | 34,729 | 3.22 | (8,156) | (23 | %) | (2.29) | (71 | %) | ||||||||||||||||||||||||||||||||||||||||
Impairment of evaluated oil and gas properties | 1,961,474 | 68.92 | — | — | 1,961,474 | 100 | % | 68.92 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Merger and integration | 26,362 | 0.93 | 5,943 | 0.55 | 20,419 | 344 | % | 0.38 | 69 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per Boe amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Per Boe | Amount | Per Boe | Amount | Per Boe | Amount | Per Boe | |||||||||||||||||||||||||||||||||||||||||||
DD&A of evaluated oil and gas properties | $111,699 | $11.90 | $56,000 | $16.09 | $377,353 | $13.26 | $178,673 | $16.55 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation of other property and equipment | 836 | 0.09 | 2 | — | 2,908 | 0.10 | 17 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of other assets | 837 | 0.09 | — | — | 1,832 | 0.06 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Accretion of asset retirement obligations | 829 | 0.09 | 128 | 0.03 | 2,501 | 0.09 | 585 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||
DD&A | $114,201 | $12.17 | $56,130 | $16.12 | $384,594 | $13.51 | $179,275 | $16.61 | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except % amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $45,358 | $18,869 | $26,489 | 140 | % | $133,427 | $58,929 | $74,498 | 126 | % | |||||||||||||||||||||||||||||||||||||||||||
Capitalized interest | (20,675) | (18,130) | (2,545) | 14 | % | (65,584) | (56,711) | (8,873) | 16 | % | |||||||||||||||||||||||||||||||||||||||||||
Interest expense, net of capitalized amounts | 24,683 | 739 | 23,944 | 3,240 | % | 67,843 | 2,218 | 65,625 | 2,959 | % | |||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on derivative contracts | $27,038 | ($21,809) | $48,847 | (224 | %) | ($97,966) | $31,415 | ($129,381) | (412 | %) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
(Gain) loss on oil derivatives | $16,606 | ($24,722) | ($118,348) | $34,798 | |||||||||||||||||||
(Gain) loss on natural gas derivatives | 7,296 | (1,323) | 18,819 | (4,306) | |||||||||||||||||||
(Gain) loss on NGL derivatives | 2,421 | — | 2,418 | — | |||||||||||||||||||
(Gain) loss on contingent consideration arrangements | 715 | 4,236 | (855) | 923 | |||||||||||||||||||
(Gain) loss on derivative contracts | $27,038 | ($21,809) | ($97,966) | $31,415 |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Net cash provided by operating activities | $425,197 | $338,738 | ||||||||||||
Net cash used in investing activities | (449,667) | (264,261) | ||||||||||||
Net cash provided by (used in) financing activities | 21,629 | (79,219) | ||||||||||||
Net change in cash and cash equivalents | ($2,841) | ($4,742) |
Nine Months Ended September 30, | ||||||||||||||||||||
2020 | 2019 | $ Change | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Capital expenditures | $567,746 | $503,425 | $64,321 | |||||||||||||||||
Acquisitions | — | 40,788 | (40,788) | |||||||||||||||||
Proceeds from the sale of assets | (149,818) | (279,952) | 130,134 | |||||||||||||||||
Cash paid for settlements of contingent consideration arrangements, net | 40,000 | — | 40,000 | |||||||||||||||||
Other, net | (8,261) | — | (8,261) | |||||||||||||||||
Total investing activities | $449,667 | $264,261 | $185,406 | |||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||
| 2020 | 2019 | $ Change | ||||||||||||||
(In thousands) | |||||||||||||||||
Net borrowings on senior secured revolving credit facility | ($260,000) | $— | ($260,000) | ||||||||||||||
Issuance of Second Lien Notes, net of discount | 264,730 | — | 264,730 | ||||||||||||||
Issuance of warrants | 23,909 | — | 23,909 | ||||||||||||||
Payment of deferred financing costs | (6,312) | (31) | (6,281) | ||||||||||||||
Payment of preferred stock dividends(1) | — | (3,997) | 3,997 | ||||||||||||||
Tax withholdings related to restricted stock units and other | (698) | (2,174) | 1,476 | ||||||||||||||
Redemption of preferred stock | — | (73,017) | 73,017 | ||||||||||||||
Net cash provided by (used in) financing activities | $21,629 | ($79,219) | $100,848 |
For the Remainder | For the Full Year | ||||||||||||||||
Oil contracts (WTI) | of 2020 | of 2021 | |||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | 2,496,880 | 1,377,000 | |||||||||||||||
Weighted average price per Bbl | $42.10 | $42.00 | |||||||||||||||
Collar contracts | |||||||||||||||||
Total volume (Bbls) | 1,501,440 | 9,423,275 | |||||||||||||||
Weighted average price per Bbl | |||||||||||||||||
Ceiling (short call) | $45.00 | $46.78 | |||||||||||||||
Floor (long put) | $35.00 | $39.21 | |||||||||||||||
Short put contracts | |||||||||||||||||
Total volume (Bbls) | 552,000 | — | |||||||||||||||
Weighted average price per Bbl | $42.50 | $— | |||||||||||||||
Long call contracts | |||||||||||||||||
Total volume (Bbls) | 460,000 | — | |||||||||||||||
Weighted average price per Bbl | $67.50 | $— | |||||||||||||||
Short call contracts | |||||||||||||||||
Total volume (Bbls) | 460,000 | (1) | 4,825,300 | (1) | |||||||||||||
Weighted average price per Bbl | $55.00 | $63.62 | |||||||||||||||
Oil contracts (Brent ICE) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | — | 848,300 | |||||||||||||||
Weighted average price per Bbl | $— | $37.36 | |||||||||||||||
Collar contracts | |||||||||||||||||
Total volume (Bbls) | — | 730,000 | |||||||||||||||
Weighted average price per Bbl | |||||||||||||||||
Ceiling (short call) | $— | $50.00 | |||||||||||||||
Floor (long put) | $— | $45.00 | |||||||||||||||
Oil contracts (Midland basis differential) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | 1,380,000 | 3,022,900 | |||||||||||||||
Weighted average price per Bbl | ($1.89) | $0.26 | |||||||||||||||
Oil contracts (Argus Houston MEH basis differential) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | 1,435,202 | — | |||||||||||||||
Weighted average price per Bbl | $0.03 | $— | |||||||||||||||
Oil contracts (Argus Houston MEH swaps) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | — | 1,060,375 | |||||||||||||||
Weighted average price per Bbl | $— | $38.94 |
For the Remainder | For the Full Year | ||||||||||||||||
Natural gas contracts (Henry Hub) | of 2020 | of 2021 | |||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (MMBtu) | 1,633,000 | 11,123,000 | |||||||||||||||
Weighted average price per MMBtu | $2.05 | $2.60 | |||||||||||||||
Collar contracts (three-way collars) | |||||||||||||||||
Total volume (MMBtu) | 1,525,000 | 1,350,000 | |||||||||||||||
Weighted average price per MMBtu | |||||||||||||||||
Ceiling (short call) | $2.72 | $2.70 | |||||||||||||||
Floor (long put) | $2.45 | $2.42 | |||||||||||||||
Floor (short put) | $2.00 | $2.00 | |||||||||||||||
Collar contracts (two-way collars) | |||||||||||||||||
Total volume (MMBtu) | 1,525,000 | 9,550,000 | |||||||||||||||
Weighted average price per MMBtu | |||||||||||||||||
Ceiling (short call) | $3.25 | $3.04 | |||||||||||||||
Floor (long put) | $2.67 | $2.59 | |||||||||||||||
Short call contracts | |||||||||||||||||
Total volume (MMBtu) | 2,013,000 | 7,300,000 | |||||||||||||||
Weighted average price per MMBtu | $3.50 | $3.09 | |||||||||||||||
Natural gas contracts (Waha basis differential) | |||||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (MMBtu) | 4,421,000 | 16,425,000 | |||||||||||||||
Weighted average price per MMBtu | ($0.91) | ($0.42) |
For the Remainder | For the Full Year | ||||||||||||||||
NGL contracts (OPIS Mont Belvieu Purity Ethane) | of 2020 | of 2021 | |||||||||||||||
Swap contracts | |||||||||||||||||
Total volume (Bbls) | — | 1,825,000 | |||||||||||||||
Weighted average price per Bbl | $— | $7.62 |
Payments due by Period | |||||||||||||||||||||||||||||||||||||||||
October - December 2020 | 2021 | 2022 | 2023 | 2024 and Thereafter | Total | ||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
6.25% Senior Notes (1) | $— | $— | $— | $650,000 | $— | $650,000 | |||||||||||||||||||||||||||||||||||
6.125% Senior Notes (1) | — | — | — | — | 600,000 | 600,000 | |||||||||||||||||||||||||||||||||||
8.25% Senior Notes (1) | — | — | — | — | 250,000 | 250,000 | |||||||||||||||||||||||||||||||||||
6.375% Senior Notes (1) | — | — | — | — | 400,000 | 400,000 | |||||||||||||||||||||||||||||||||||
Second Lien Notes (1) | 300,000 | 300,000 | |||||||||||||||||||||||||||||||||||||||
Senior secured revolving credit facility (2) | — | — | — | — | 1,025,000 | 1,025,000 | |||||||||||||||||||||||||||||||||||
Interest expense and other fees related to debt commitments (3) | 46,885 | 183,286 | 183,286 | 162,974 | 226,798 | 803,229 | |||||||||||||||||||||||||||||||||||
Delivery commitments (4) | 3,469 | 13,437 | 10,980 | 11,553 | 51,715 | 91,154 | |||||||||||||||||||||||||||||||||||
Operating leases | 3,639 | 10,460 | 5,438 | 5,011 | 23,033 | 47,581 | |||||||||||||||||||||||||||||||||||
Asset retirement obligations (5) | 2,857 | 23 | 380 | 197 | 48,942 | 52,399 | |||||||||||||||||||||||||||||||||||
Produced water disposal commitments (6) | 7,687 | 21,355 | 18,321 | 10,775 | 12,983 | 71,121 | |||||||||||||||||||||||||||||||||||
Drilling rig leases (7) | 4,736 | 4,317 | — | — | — | 9,053 | |||||||||||||||||||||||||||||||||||
Other commitments | 290 | 884 | 524 | 392 | 39 | 2,129 | |||||||||||||||||||||||||||||||||||
Total contractual obligations | $69,563 | $233,762 | $218,929 | $840,902 | $2,938,510 | $4,301,666 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Impairment of evaluated oil and gas properties (in thousands) | $684,956 | $— | $1,961,474 | $— | ||||||||||||||||||||||
Beginning of period 12-Month Average Realized Price ($/Bbl) | $45.87 | $53.00 | $53.90 | $58.40 | ||||||||||||||||||||||
End of period 12-Month Average Realized Price ($/Bbl) | $41.71 | $52.44 | $41.71 | $52.44 | ||||||||||||||||||||||
Percent decrease in 12-Month Average Realized Price | (9 | %) | (1 | %) | (23 | %) | (10 | %) |
12-Month Average Realized Prices | Excess (deficit) of cost center ceiling over net book value, less related deferred income taxes | Increase (decrease) of cost center ceiling over net book value, less related deferred income taxes | ||||||||||||||||||||||||
Full Cost Pool Scenarios | Crude Oil ($/Bbl) | Natural Gas ($/Mcf) | (In millions) | (In millions) | ||||||||||||||||||||||
September 30, 2020 Actual | $41.71 | $1.08 | $— | |||||||||||||||||||||||
Crude Oil and Natural Gas Price Sensitivity | ||||||||||||||||||||||||||
Crude Oil and Natural Gas +10% | $46.04 | $1.28 | $715 | $715 | ||||||||||||||||||||||
Crude Oil and Natural Gas -10% | $37.37 | $0.88 | ($721) | ($721) | ||||||||||||||||||||||
Crude Oil Price Sensitivity | ||||||||||||||||||||||||||
Crude Oil +10% | $46.04 | $1.08 | $674 | $674 | ||||||||||||||||||||||
Crude Oil -10% | $37.37 | $1.08 | ($672) | ($672) | ||||||||||||||||||||||
Natural Gas Price Sensitivity | ||||||||||||||||||||||||||
Natural Gas +10% | $41.71 | $1.28 | $49 | $49 | ||||||||||||||||||||||
Natural Gas -10% | $41.71 | $0.88 | ($49) | ($49) |
Incorporated by reference (File No. 001-14039, unless otherwise indicated) | |||||||||||||||||||||||||||||
Exhibit Number | Description | Form | Exhibit | Filing Date | |||||||||||||||||||||||||
3.1 | 10-Q | 3.1 | 11/03/2016 | ||||||||||||||||||||||||||
3.2 | 8-K | 3.1 | 11/20/2019 | ||||||||||||||||||||||||||
3.3 | 8-K | 3.1 | 8/07/2020 | ||||||||||||||||||||||||||
3.4 | 10-K | 3.2 | 2/27/2019 | ||||||||||||||||||||||||||
4.1 | 8-K | 4.1 | 10/01/2020 | ||||||||||||||||||||||||||
4.2 | 8-K | 4.2 | 10/01/2020 | ||||||||||||||||||||||||||
4.3 | 8-K | 4.3 | 10/01/2020 | ||||||||||||||||||||||||||
10.1 | 8-K | 10.1 | 10/01/2020 | ||||||||||||||||||||||||||
10.2 | 8-K | 10.2 | 10/01/2020 | ||||||||||||||||||||||||||
10.3 | 8-K | 10.3 | 10/01/2020 | ||||||||||||||||||||||||||
10.4 | (a)(c) | ||||||||||||||||||||||||||||
10.5 | (a)(c) | ||||||||||||||||||||||||||||
31.1 | (a) | ||||||||||||||||||||||||||||
31.2 | (a) | ||||||||||||||||||||||||||||
32.1 | (b) | ||||||||||||||||||||||||||||
101.INS | (a) | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||||
101.SCH | (a) | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||||||||||||||||
101.CAL | (a) | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||||||||||||
101.DEF | (a) | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||||||||||||
101.LAB | (a) | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||||||||||||||||||
101.PRE | (a) | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||||||||||||||||
104 | (a) | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Signature | Title | Date | ||||||
/s/ Joseph C. Gatto, Jr. | President and | November 3, 2020 | ||||||
Joseph C. Gatto, Jr. | Chief Executive Officer |
/s/ James P. Ulm, II | Senior Vice President and | November 3, 2020 | ||||||
James P. Ulm, II | Chief Financial Officer |
Date: | November 3, 2020 | /s/ Joseph C. Gatto, Jr. | |||||||||
Joseph C. Gatto, Jr. | |||||||||||
President and Chief Executive Officer | |||||||||||
(Principal executive officer) |
Date: | November 3, 2020 | /s/ James P. Ulm, II | |||||||||
James P. Ulm, II | |||||||||||
Senior Vice President and Chief Financial Officer | |||||||||||
(Principal financial officer) |
Date: | November 3, 2020 | /s/ Joseph C. Gatto, Jr. | |||||||||
Joseph C. Gatto, Jr. | |||||||||||
(Principal executive officer) | |||||||||||
Date: | November 3, 2020 | /s/ James P. Ulm, II | |||||||||
James P. Ulm, II | |||||||||||
(Principal financial officer) |
Consolidated Balance Sheets (Parenthetical) |
Sep. 30, 2020
$ / shares
shares
|
Dec. 31, 2019
$ / shares
shares
|
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 52,500,000 | 52,500,000 |
Common stock, shares outstanding (in shares) | 39,749,985 | 39,659,001 |
Consolidated Statements of Operations - USD ($) shares in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Operating revenues: | ||||||
Total operating revenues | $ 290,026,000 | $ 155,378,000 | $ 738,335,000 | $ 475,477,000 | ||
Operating Expenses: | ||||||
Lease operating | 45,870,000 | 19,668,000 | 149,091,000 | 66,511,000 | ||
Production and ad valorem taxes | 16,110,000 | 11,866,000 | 46,151,000 | 33,810,000 | ||
Gathering, transportation and processing | 22,200,000 | 0 | 56,615,000 | 0 | ||
Depreciation, depletion and amortization | 114,201,000 | 56,130,000 | 384,594,000 | 179,275,000 | ||
General and administrative | 8,224,000 | 9,388,000 | 26,573,000 | 34,729,000 | ||
Impairment of evaluated oil and gas properties | 684,956,000 | 0 | 1,961,474,000 | 0 | ||
Merger and integration | 2,465,000 | 5,943,000 | 26,362,000 | 5,943,000 | ||
Other operating | 4,425,000 | (161,000) | 8,548,000 | 931,000 | ||
Total operating expenses | 919,733,000 | 102,834,000 | 2,681,858,000 | 321,199,000 | ||
Income (Loss) From Operations | (629,707,000) | 52,544,000 | (1,943,523,000) | 154,278,000 | ||
Other (Income) Expenses: | ||||||
Interest expense, net of capitalized amounts | 24,683,000 | 739,000 | 67,843,000 | 2,218,000 | ||
(Gain) loss on derivative contracts | 27,038,000 | (21,809,000) | (97,966,000) | 31,415,000 | ||
Other (income) expense | (1,044,000) | (122,000) | (149,000) | (270,000) | ||
Total other (income) expense | 50,677,000 | (21,192,000) | (30,272,000) | 33,363,000 | ||
Income (Loss) Before Income Taxes | (680,384,000) | 73,736,000 | (1,913,251,000) | 120,915,000 | ||
Income tax expense | 0 | (17,902,000) | (115,299,000) | (29,444,000) | ||
Net Income (Loss) | (680,384,000) | 55,834,000 | (2,028,550,000) | 91,471,000 | ||
Preferred stock dividends | 0 | (350,000) | 0 | (3,997,000) | ||
Loss on redemption of preferred stock | 0 | (8,304,000) | 0 | (8,304,000) | ||
Income (Loss) Available to Common Stockholders | $ (680,384,000) | $ 47,180,000 | $ (2,028,550,000) | $ 79,170,000 | ||
Income (Loss) Available to Common Stockholders Per Common Share | ||||||
Basic (in dollars per share) | [1] | $ (17.12) | $ 2.07 | $ (51.09) | $ 3.47 | |
Diluted (in dollars per share) | [1] | $ (17.12) | $ 2.07 | $ (51.09) | $ 3.47 | |
Weighted Average Common Shares Outstanding | ||||||
Basic (in shares) | [1] | 39,746 | 22,831 | 39,707 | 22,805 | |
Diluted (in shares) | [1] | 39,746 | 22,846 | 39,707 | 22,841 | |
Oil | ||||||
Operating revenues: | ||||||
Total operating revenues | $ 231,654,000 | $ 148,210,000 | $ 627,934,000 | $ 450,036,000 | ||
Natural gas | ||||||
Operating revenues: | ||||||
Total operating revenues | 15,034,000 | 7,168,000 | 33,305,000 | 25,441,000 | ||
Natural gas liquids | ||||||
Operating revenues: | ||||||
Total operating revenues | 23,025,000 | 0 | 55,627,000 | 0 | ||
Purchased oil and gas | ||||||
Operating revenues: | ||||||
Total operating revenues | 20,313,000 | 0 | 21,469,000 | 0 | ||
Operating Expenses: | ||||||
Cost of goods and services sold | $ 21,282,000 | $ 0 | $ 22,450,000 | $ 0 | ||
|
Consolidated Statements of Operations (Parenthetical) |
Aug. 07, 2020 |
---|---|
Income Statement [Abstract] | |
Stock split, conversion ratio | 0.1 |
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands |
Total |
Preferred Stock |
Common Stock |
Capital in Excess of Par |
Retained Earnings (Accumulated Deficit) |
|||
---|---|---|---|---|---|---|---|---|
Balance (in shares) at Dec. 31, 2018 | 1,459 | 22,757 | [1] | |||||
Balance at Dec. 31, 2018 | $ 2,445,208 | $ 15 | $ 2,276 | $ 2,477,278 | $ (34,361) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (19,543) | (19,543) | ||||||
Shares issued pursuant to employee benefit plans (in shares) | [1] | 2 | ||||||
Shares issued pursuant to employee benefit plans | 154 | 154 | ||||||
Restricted stock (in shares) | [1] | 28 | ||||||
Restricted stock | 4,450 | $ 3 | 4,447 | |||||
Preferred stock dividend | (1,824) | (1,824) | ||||||
Balance (in shares) at Mar. 31, 2019 | 1,459 | 22,787 | [1] | |||||
Balance at Mar. 31, 2019 | 2,428,445 | $ 15 | $ 2,279 | 2,481,879 | (55,728) | |||
Balance (in shares) at Dec. 31, 2018 | 1,459 | 22,757 | [1] | |||||
Balance at Dec. 31, 2018 | 2,445,208 | $ 15 | $ 2,276 | 2,477,278 | (34,361) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 91,471 | |||||||
Loss on redemption of preferred stock | (8,304) | |||||||
Balance (in shares) at Sep. 30, 2019 | 0 | 22,836 | [1] | |||||
Balance at Sep. 30, 2019 | 2,468,652 | $ 0 | $ 2,284 | 2,421,559 | 44,809 | |||
Balance (in shares) at Mar. 31, 2019 | 1,459 | 22,787 | [1] | |||||
Balance at Mar. 31, 2019 | 2,428,445 | $ 15 | $ 2,279 | 2,481,879 | (55,728) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 55,180 | 55,180 | ||||||
Restricted stock (in shares) | [1] | 38 | ||||||
Restricted stock | 2,075 | $ 4 | 2,071 | |||||
Preferred stock dividend | (1,823) | (1,823) | ||||||
Preferred stock redemption | (5) | (5) | ||||||
Balance (in shares) at Jun. 30, 2019 | 1,459 | 22,825 | [1] | |||||
Balance at Jun. 30, 2019 | 2,483,872 | $ 15 | $ 2,283 | 2,483,945 | (2,371) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 55,834 | 55,834 | ||||||
Restricted stock (in shares) | [1] | 11 | ||||||
Restricted stock | 2,308 | $ 1 | 2,307 | |||||
Preferred stock dividend | (350) | (350) | ||||||
Preferred stock redemption (in shares) | (1,459) | |||||||
Preferred stock redemption | (64,708) | $ (15) | (64,693) | |||||
Loss on redemption of preferred stock | (8,304) | (8,304) | ||||||
Balance (in shares) at Sep. 30, 2019 | 0 | 22,836 | [1] | |||||
Balance at Sep. 30, 2019 | 2,468,652 | $ 0 | $ 2,284 | 2,421,559 | 44,809 | |||
Balance (in shares) at Dec. 31, 2019 | 0 | 39,659 | [1] | |||||
Balance at Dec. 31, 2019 | 3,223,308 | $ 0 | $ 3,966 | 3,198,076 | 21,266 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 216,565 | 216,565 | ||||||
Restricted stock (in shares) | [1] | 14 | ||||||
Restricted stock | 3,142 | $ 1 | 3,141 | |||||
Other | (112) | (112) | ||||||
Balance (in shares) at Mar. 31, 2020 | 0 | 39,673 | ||||||
Balance at Mar. 31, 2020 | 3,442,903 | $ 0 | $ 3,967 | 3,201,105 | 237,831 | |||
Balance (in shares) at Dec. 31, 2019 | 0 | 39,659 | [1] | |||||
Balance at Dec. 31, 2019 | 3,223,308 | $ 0 | $ 3,966 | 3,198,076 | 21,266 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (2,028,550) | |||||||
Loss on redemption of preferred stock | 0 | |||||||
Balance (in shares) at Sep. 30, 2020 | 0 | 39,750 | [1] | |||||
Balance at Sep. 30, 2020 | 1,204,104 | $ 0 | $ 397 | 3,210,991 | (2,007,284) | |||
Balance (in shares) at Mar. 31, 2020 | 0 | 39,673 | ||||||
Balance at Mar. 31, 2020 | 3,442,903 | $ 0 | $ 3,967 | 3,201,105 | 237,831 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (1,564,731) | (1,564,731) | ||||||
Restricted stock (in shares) | [1] | 66 | ||||||
Restricted stock | 3,212 | $ 7 | 3,205 | |||||
Balance (in shares) at Jun. 30, 2020 | 0 | 39,739 | [1] | |||||
Balance at Jun. 30, 2020 | 1,881,384 | $ 0 | $ 3,974 | 3,204,310 | (1,326,900) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (680,384) | (680,384) | ||||||
Restricted stock (in shares) | [1] | 11 | ||||||
Restricted stock | 3,009 | $ 1 | 3,008 | |||||
Reverse stock split | 0 | $ (3,578) | 3,578 | |||||
Other | 95 | 95 | ||||||
Loss on redemption of preferred stock | 0 | |||||||
Balance (in shares) at Sep. 30, 2020 | 0 | 39,750 | [1] | |||||
Balance at Sep. 30, 2020 | $ 1,204,104 | $ 0 | $ 397 | $ 3,210,991 | $ (2,007,284) | |||
|
Consolidated Statements of Stockholders' Equity (Parenthetical) |
Aug. 07, 2020 |
---|---|
Statement of Stockholders' Equity [Abstract] | |
Stock split, conversion ratio | 0.1 |
Consolidated Statements of Cash Flows - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Cash flows from operating activities: | ||
Net income (loss) | $ (2,028,550,000) | $ 91,471,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 384,594,000 | 182,738,000 |
Impairment of evaluated oil and gas properties | 1,961,474,000 | 0 |
Amortization of non-cash debt related items | 1,582,000 | 2,218,000 |
Deferred income tax expense | 115,299,000 | 29,444,000 |
(Gain) loss on derivative contracts | (97,966,000) | 31,415,000 |
Cash (paid) received for commodity derivative settlements | 101,754,000 | (436,000) |
Loss on sale of other property and equipment | 0 | 36,000 |
Non-cash expense related to equity share-based awards | 6,302,000 | 7,868,000 |
Change in the fair value of liability share-based awards | (6,607,000) | 106,000 |
Payments to settle asset retirement obligations | 0 | (1,425,000) |
Payments for cash-settled restricted stock unit awards | (770,000) | (1,425,000) |
Other, net | 6,510,000 | 0 |
Changes in current assets and liabilities: | ||
Accounts receivable | 96,110,000 | 17,600,000 |
Other current assets | (6,556,000) | (5,172,000) |
Current liabilities | (107,979,000) | (13,038,000) |
Other | 0 | (2,662,000) |
Net cash provided by operating activities | 425,197,000 | 338,738,000 |
Cash flows from investing activities: | ||
Capital expenditures | (567,746,000) | (503,425,000) |
Acquisitions | 0 | (40,788,000) |
Proceeds from sale of assets | 149,818,000 | 279,952,000 |
Cash paid for settlements of contingent consideration arrangements, net | (40,000,000) | 0 |
Other, net | 8,261,000 | 0 |
Net cash used in investing activities | (449,667,000) | (264,261,000) |
Cash flows from financing activities: | ||
Borrowings on senior secured revolving credit facility | 5,087,500,000 | 581,000,000 |
Payments on senior secured revolving credit facility | (5,347,500,000) | (581,000,000) |
Issuance of 9.00% Second Lien Senior Secured Notes due 2025 | 300,000,000 | 0 |
Discount on the issuance of 9.00% Second Lien Senior Secured Notes due 2025 | (35,270,000) | 0 |
Issuance of warrants | 23,909,000 | 0 |
Payment of preferred stock dividends | 0 | (3,997,000) |
Payment of deferred financing costs | (6,312,000) | (31,000) |
Tax withholdings related to restricted stock units | (495,000) | (2,174,000) |
Redemption of preferred stock | 0 | (73,017,000) |
Other, net | (203,000) | 0 |
Net cash provided by (used in) financing activities | 21,629,000 | (79,219,000) |
Net change in cash and cash equivalents | (2,841,000) | (4,742,000) |
Balance, beginning of period | 13,341,000 | 16,051,000 |
Balance, end of period | $ 10,500,000 | $ 11,309,000 |
Consolidated Statements of Cash Flows (Parenthetical) |
Sep. 30, 2020 |
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9.00% Second Lien Senior Secured Notes due 2025 | |
Debt instrument, interest rate, stated (as a percent) | 9.00% |
Description of Business and Basis of Presentation |
9 Months Ended |
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Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of business Callon is an independent oil and natural gas company focused on the acquisition, exploration and development of high-quality assets in the leading oil plays of South and West Texas. As used herein, the “Company,” “Callon,” “we,” “us,” and “our” refer to Callon Petroleum Company and its predecessors and subsidiaries unless the context requires otherwise. The Company’s activities are primarily focused on horizontal development in the Midland and Delaware Basins, both of which are part of the larger Permian Basin in West Texas, as well as the Eagle Ford Shale, which the Company entered into through its acquisition of Carrizo Oil & Gas, Inc. (“Carrizo”) in late 2019. The Company’s primary operations in the Permian Basin reflect a high-return, oil-weighted drilling inventory with multiple prospective horizontal development intervals and are complemented by a well-established and repeatable cash flow generating business in the Eagle Ford Shale. Basis of presentation The accompanying unaudited interim consolidated financial statements include the accounts of the Company after elimination of intercompany transactions and balances and have been prepared pursuant to the rules and regulations of the SEC and therefore do not include all disclosures required for financial statements prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). In the opinion of management, these financial statements include all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly, in all material respects, the Company’s interim financial position, results of operations and cash flows. However, the results of operations for the periods presented are not necessarily indicative of the results of operations that may be expected for the full year. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications had no material impact on prior period financial statements. However, the comparability of certain 2020 amounts to prior periods could be impacted as a result of the Carrizo Acquisition in December 2019. Significant Accounting Policies The Company’s significant accounting policies are described in “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Annual Report”) and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this report should be read in conjunction with the Company’s 2019 Annual Report. Three-stream reporting. Effective January 1, 2020, certain of our natural gas processing agreements were modified to allow the Company to take title to NGLs resulting from the processing of our natural gas. As a result, sales and reserve volumes, prices, and revenues for NGLs and natural gas are presented separately for periods subsequent to January 1, 2020. For periods prior to January 1, 2020, except for sales and reserve volumes, prices, and revenues specifically associated with the Carrizo Acquisition, as defined below, sales and reserve volumes, prices, and revenues for NGLs were presented with natural gas. See “Note 2 - Revenue Recognition” for additional information regarding the impact of three-stream reporting on our current results. Recently Adopted Accounting Standards None that had a material impact on our financial statements. Recently Issued Accounting Pronouncements Income Taxes. In December 2019, the FASB released Accounting Standards Update No. 2019-12 (ASU 2019-12): Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The amended standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our financial statements. Subsequent Events The Company evaluates subsequent events through the date the financial statements are issued. See “Note 16 - Subsequent Events” for further discussion.
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Revenue Recognition |
9 Months Ended |
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Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue from contracts with customers Oil sales Under the Company’s oil sales contracts it sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue when control transfers to the purchaser at the point of delivery at the net price received. Natural gas sales Effective January 1, 2020, certain of our natural gas processing agreements were modified to allow the Company to take title to NGLs resulting from the processing of our natural gas. As a result, sales and reserve volumes, prices, and revenues for NGLs and natural gas are presented separately for periods subsequent to January 1, 2020. For periods prior to January 1, 2020, except for sales and reserve volumes, prices, and revenues specifically associated with Carrizo, sales and reserve volumes, prices, and revenues for NGLs were presented with natural gas. Under the Company’s natural gas sales processing contracts, it delivers natural gas to a midstream processing entity which gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of NGLs and residue gas. We evaluate whether the processing entity is the principal or the agent in the transaction for each of our natural gas processing agreements and have concluded that we maintain control through processing or we have the right to take residue gas and/or NGLs in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. We recognize revenue when control transfers to the purchaser at the delivery point based on the contractual index price received. Contractual fees associated with gathering, processing, treating and compression, as well as any transportation fees incurred to deliver the product to the purchaser, for the majority of the Company’s natural gas processing agreements were previously recorded as a reduction of revenue. As a result of the modifications to certain of the Company’s natural gas processing agreements, as well as the natural gas processing agreements assumed in the Carrizo Acquisition, the Company now recognizes revenue for natural gas and NGLs on a gross basis with gathering, transportation and processing fees recognized separately as “Gathering, transportation and processing” in its consolidated statements of operations as the Company maintains control throughout processing. These changes impact the comparability of 2020 with prior periods. For the three and nine months ended September 30, 2019, $2.6 million and $7.8 million of gathering, transportation, and processing fees were recognized as a reduction to natural gas revenues in the consolidated statement of operations. Oil and Gas Purchase and Sale Arrangements Sales of purchased oil and gas represent revenues the Company receives from sales of commodities purchased from a third-party. The Company recognizes these revenues and the purchase of the third-party commodities, as well as any costs associated with the purchase, on a gross basis, as the Company acts as a principal in these transactions by assuming control of the purchased commodity before it is transferred to the customer. Accounts receivable from revenues from contracts with customers Net accounts receivable include amounts billed and currently due from revenues from contracts with customers of our oil and natural gas production, which had a balance at September 30, 2020 and December 31, 2019 of $81.4 million and $165.3 million, respectively, are presented in “Accounts receivable, net” in the consolidated balance sheets. Transaction price allocated to remaining performance obligations For the Company’s product sales that have a contract term greater than one year, it utilized the practical expedient in ASC 606, which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation, therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Prior period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant.
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Acquisitions and Divestitures |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures 2020 Acquisitions and Divestitures ORRI Transaction. On September 30, 2020, the Company entered into a Purchase and Sale Agreement with Chambers Minerals, LLC, a private investment vehicle managed by Kimmeridge Energy, where the Company agreed to sell an undivided 2.0% (on an 8/8ths basis) overriding royalty interest, proportionately reduced to the Company’s net revenue interest, in and to the Company’s operated leases, excluding certain interests as defined in the Purchase and Sale Agreement, for an aggregate purchase price of $140.0 million (“ORRI Transaction”), with an effective date of October 1, 2020. After adjusting for costs associated with the sale, the net proceeds of $135.8 million were used to repay borrowings outstanding under the Company’s senior secured revolving credit facility. The net proceeds were recognized as a reduction of evaluated oil and gas properties with no gain or loss recognized. Non-Operated Working Interest Transaction. On September 25, 2020, the Company entered into a Purchase and Sale Agreement to sell substantially all of its non-operated assets for estimated gross proceeds of approximately $30.0 million, with an effective date of September 1, 2020, subject to purchase price adjustments. The Company received $29.6 million at closing on November 2, 2020, subject to post-closing adjustments. 2019 Acquisitions and Divestitures Carrizo Oil & Gas, Inc. Merger. On December 20, 2019, the Company completed its acquisition of Carrizo in an all-stock transaction (the “Merger” or the “Carrizo Acquisition”). Under the terms of the Merger, each outstanding share of Carrizo common stock was converted into 1.75 shares of the Company’s common stock. The Company issued approximately 168.2 million shares of common stock at a price of $4.55 per share, resulting in total consideration paid by the Company to the former Carrizo shareholders of approximately $765.4 million. In connection with the closing of the Merger, the Company funded the redemption of Carrizo’s 8.875% Preferred Stock, repaid the outstanding principal under Carrizo’s revolving credit facility and assumed all of Carrizo’s senior notes. The Merger was accounted for as a business combination, therefore, the purchase price was allocated to the assets acquired and the liabilities assumed based on their estimated acquisition date fair values with information available at that time. A combination of a discounted cash flow model and market data was used by a third-party specialist in determining the fair value of the oil and gas properties. Significant inputs into the calculation included future commodity prices, estimated volumes of oil and gas reserves, expectations for timing and amount of future development and operating costs, future plugging and abandonment costs and a risk-adjusted discount rate. Certain data necessary to complete the purchase price allocation is not yet available, including final tax returns that provide the underlying tax basis of Carrizo’s assets and liabilities. The Company expects to complete the purchase price allocation during the 12-month period following the acquisition date. The following table sets forth the Company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date.
Approximately $160.5 million and $408.8 million of revenues and $51.6 million and $151.5 million of direct operating expenses attributed to the Carrizo Acquisition were included in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2020, respectively. Pro Forma Operating Results (Unaudited). The following unaudited pro forma combined condensed financial data for the year ended December 31, 2019 was derived from the historical financial statements of the Company giving effect to the Merger, as if it had occurred on January 1, 2018. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for Carrizo’s outstanding shares of common stock, as well as pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including (i) the Company’s common stock issued to convert Carrizo’s outstanding shares of common stock and equity awards as of the closing date of the Merger, (ii) the depletion of Carrizo’s fair-valued proved oil and natural gas properties and (iii) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by the Company of approximately $58.8 million for the year ended December 31, 2019 and acquisition-related costs incurred by Carrizo that totaled approximately $15.6 million for the year ended December 31, 2019. The pro forma results of operations do not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred by the Company to integrate the Carrizo assets. The pro forma financial data does not include the pro forma results of operations for any other acquisitions made during the periods presented, as they were primarily acreage acquisitions and their results were not deemed material. The pro forma consolidated statements of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2018 and is not intended to be a projection of future results.
In conjunction with the Carrizo Acquisition, the Company incurred costs totaling $2.5 million and $26.4 million for the three and nine months ended September 30, 2020, respectively, comprised of severance costs of $0.8 million and $6.2 million for the three and nine months ended September 30, 2020, respectively, and other merger and integration expenses of $1.7 million and $20.2 million for the three and nine months ended September 30, 2020, respectively. Through September 30, 2020, the Company has incurred cumulative costs associated with the Carrizo Acquisition of $100.8 million comprised of severance costs of $35.8 million and other merger and integration expenses of $65.0 million. As of September 30, 2020, $5.6 million remained accrued and is included as a component of “Accounts payable and accrued liabilities” in the consolidated balance sheets. Ranger Divestiture. In the second quarter of 2019, the Company completed its divestiture of certain non-core assets in the southern Midland Basin (the “Ranger Asset Divestiture”) for net cash proceeds of $244.9 million. The transaction also provided for potential additional contingent consideration in payments of up to $60.0 million based on West Texas Intermediate average annual pricing over a -year period. See “Note 7 - Derivative Instruments and Hedging Activities” and “Note 8 - Fair Value Measurements” for further discussion of this contingent consideration arrangement. The divestiture encompasses the Ranger operating area in the southern Midland Basin which includes approximately 9,850 net Wolfcamp acres with an average 66% working interest. The net cash proceeds were recognized as a reduction of evaluated oil and gas properties with no gain or loss recognized.
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Property and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and Equipment, Net As of September 30, 2020 and December 31, 2019, total property and equipment, net consisted of the following:
The Company capitalized internal costs of employee compensation and benefits, including stock-based compensation, directly associated with acquisition, exploration and development activities totaling $10.3 million and $8.2 million for the three months ended September 30, 2020 and 2019, respectively, and $26.7 million and $27.4 million for the nine months ended September 30, 2020 and 2019. The Company capitalized interest costs associated with its unproved properties totaling $20.7 million and $18.1 million for the three months ended September 30, 2020 and 2019, respectively, and $65.6 million and $56.7 million for the nine months ended September 30, 2020 and 2019. As a result of the downturn in the oil and gas industry as well as in the broader macroeconomic environment, the Company analyzed its unevaluated leasehold giving consideration to its updated exploration program as well as to the remaining lease term of certain unevaluated leaseholds. The Company transferred $235.9 million from unevaluated leasehold to evaluated properties during the nine months ended September 30, 2020 primarily as a result of the analysis described above. Impairment of Evaluated Oil and Gas Properties Primarily due to declines in the average realized prices for sales of oil on the first calendar day of each month during the trailing 12-month period (“12-Month Average Realized Price”) prior to September 30, 2020, the capitalized costs of oil and gas properties exceeded the cost center ceiling resulting in an impairment in the carrying value of evaluated oil and gas properties for the three and nine months ended September 30, 2020. An impairment of evaluated oil and gas properties recognized in one period may not be reversed in a subsequent period even if higher oil and gas prices in the future increase the cost center ceiling applicable to the subsequent period. There were no impairments of evaluated oil and gas properties for the three months ended March 31, 2020 or for the corresponding prior year periods.
The Company expects to record an additional impairment in the carrying value of evaluated oil and gas properties in the fourth quarter of 2020 based on an estimated 12-Month Average Realized price of crude oil of approximately $39.65 per Bbl as of December 31, 2020, which is based on the average realized price for sales of crude oil on the first calendar day of each month for the first 10 months and an estimate for the eleventh and twelfth months based on a quoted forward price. Declines in the 12-Month Average Realized Price of crude oil in subsequent quarters could result in a lower present value of the estimated future net revenues from proved oil and gas reserves and may result in additional impairments of evaluated oil and gas properties.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted average number of shares outstanding for the periods presented. The calculation of diluted earnings per share includes the potential dilutive impact of non-vested restricted shares outstanding during the periods presented, as calculated using the treasury stock method, unless their effect is anti-dilutive. For the three and nine months ended September 30, 2020, the Company reported a loss available to common stockholders. As a result, the calculation of diluted weighted average common shares outstanding excluded the anti-dilutive effect of 1.3 million and 1.0 million potentially dilutive common shares outstanding for the three and nine months ended September 30, 2020, respectively. The following table sets forth the computation of basic and diluted earnings per share:
(1) The Company redeemed all outstanding shares of its 10% Series A Cumulative Preferred Stock (“Preferred Stock”) on July 18, 2019 and all dividends ceased to accrue upon redemption. (2) Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information. (3) Shares excluded from the diluted earnings per share calculation because their effect would be anti-dilutive.
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Borrowings |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings The Company’s borrowings consisted of the following:
(1) Excludes unamortized deferred financing costs related to the Company’s senior secured revolving credit facility of $24.9 million and $22.2 million as of September 30, 2020 and December 31, 2019, respectively, which are classified in “Deferred financing costs” in the consolidated balance sheets. Senior secured revolving credit facility The Company has a senior secured revolving credit facility with a syndicate of lenders that, as of September 30, 2020, had a borrowing base of $1.6 billion, with an elected commitment amount of $1.6 billion, borrowings outstanding of $1.03 billion at a weighted-average interest rate of 2.93%, and letters of credit outstanding of $24.2 million. The credit agreement governing the revolving credit facility provides for interest-only payments until December 20, 2024 (subject to springing maturity dates of (i) January 14, 2023 if the 6.25% Senior Notes due 2023 (the “6.25% Senior Notes”) are outstanding at such time, (ii) July 2, 2024 if the 6.125% Senior Notes due 2024 (the “6.125% Senior Notes”) are outstanding at such time, and (iii) if the Second Lien Notes, defined below, are outstanding at such time, the date which is 182 days prior to the maturity of any of the 6.25% Senior Notes or the 6.125% Senior Notes, in each case, to the extent a principal amount of more than $100.0 million with respect to each such issuance is outstanding as of such date), when the credit agreement matures and any outstanding borrowings are due. The borrowing base under the credit agreement is subject to regular redeterminations in the spring and fall of each year, as well as special redeterminations described in the credit agreement, which in each case may reduce the amount of the borrowing base. The revolving credit facility is secured by first preferred mortgages covering the Company’s major producing properties. The capitalized terms which are not defined in this description of the revolving credit facility shall have the meaning given to such terms in the credit agreement. On May 7, 2020, the Company entered into the first amendment to its credit agreement governing the revolving credit facility. The amendment, among other things, (a) established a new borrowing base as a result of the spring 2020 scheduled redetermination in the amount of $1.7 billion and reduced the elected commitments to $1.7 billion, which were subsequently revised as described below; (b) permits the incurrence of, among other things, new second lien notes in 2020 exchanged for unsecured notes in an aggregate principal amount of up to $400.0 million (the “Exchange Notes”) without triggering a reduction in the borrowing base so long as any such Exchange Notes are subject to an intercreditor agreement providing that the liens securing the Exchange Notes rank junior to the liens securing the credit agreement; (c) provides that testing of the Leverage Ratio, which is the ratio of consolidated total debt to Adjusted EBITDAX on a quarterly basis is suspended until March 31, 2022, as of which testing date and the last day of each fiscal quarter ending thereafter, such ratio may not exceed 4.00 to 1.00; (d) provides a new financial covenant testing the Secured Leverage Ratio, which is the ratio of the consolidated total secured debt to Adjusted EBITDAX and provides that such ratio on a quarterly basis as of the last day of each quarter beginning with March 31, 2020 up to and including the quarter ending December 31, 2021 may not exceed 3.00 to 1.00; (e) provided that the testing of the Current Ratio, which is the ratio of current assets to current liabilities was suspended until September 30, 2020, as of which testing date and the last day of each fiscal quarter ending thereafter, such ratio may not be less than 1.00 to 1.00; (f) increases the applicable margins for borrowings under the credit agreement for both LIBOR loans and base rate loans by 75 basis points across all commitment utilization ranges; (g) introduces customary anti-cash hoarding protections tested weekly, which restrict the Company’s ability to maintain unrestricted cash on its balance sheet in amounts in the excess of the lesser of (i) $125.0 million or (ii) 7.5% of the then current borrowing base; (h) requires the Company to enter into and maintain minimum hedges for the 12 month period starting January 1, 2021 through December 31, 2021, for which the net notional volumes on a barrel of oil equivalent basis are not less than 40% of the reasonably anticipated production from the Company’s oil and gas properties which are classified as proved developed producing reserves as of April 1, 2020; (i) requires mortgage and title coverage on at least 90% of the total value of proved oil and gas properties evaluated in the most recently delivered reserve report; and (j) restricts the Company’s ability to make certain investments and cash distributions by lowering the maximum leverage ratio required to make such distributions to 2.50 to 1.00. On September 30, 2020, the Company entered into the second amendment to its credit agreement governing the revolving credit facility. The amendment, among other things, reaffirmed the $1.7 billion borrowing base as a result of the fall 2020 scheduled redetermination. Also on September 30, 2020, the Company entered into the third amendment to its credit agreement governing the revolving credit facility. The amendment, among other things, (a) established a new borrowing base of $1.6 billion and reduced the elected commitments to $1.6 billion in connection with the issuance of the Second Lien Notes and Warrants, described below, and ORRI Transaction; (b) permitted the issuance of the $300.0 million of Second Lien Notes as contemplated by the Purchase Agreement described below without triggering a reduction in the borrowing base; (c) extends through the end of 2021 the time period during which Exchange Notes may be issued without triggering a reduction in the borrowing base; and (d) if the Second Lien Notes are outstanding at such time, caused the maturity of the revolving credit facility to spring forward to a date which is 182 days prior to the maturity of any of the 6.25% Senior Notes or the 6.125% Senior Notes, in each case, to the extent a principal amount of more than $100.0 million with respect to each such issuance is outstanding as of such date. Borrowings outstanding under the credit agreement bear interest at the Company’s option at either (i) a base rate for a base rate loan plus a margin between 1.00% to 2.00%, where the base rate is defined as the greatest of the prime rate, the federal funds rate plus 0.50% and the adjusted LIBO rate plus 1.00%, or (ii) an adjusted LIBO rate for a Eurodollar loan plus a margin between 2.00% to 3.00%. The Company also incurs commitment fees at rates ranging between 0.375% to 0.500% on the unused portion of lender commitments, which are included in “Interest expense, net” in the consolidated statements of operations. Second Lien Notes and Warrants On September 30, 2020, the Company entered into a Purchase Agreement (the “Purchase Agreement”) where it issued (i) $300.0 million in aggregate principal amount of its 9.00% Second Lien Senior Secured Notes due 2025 (the “Second Lien Notes”) and (ii) warrants for 7.3 million of the Company’s common stock, with a term of five years and an exercise price of $5.60 per share, exercisable only on a net share settlement basis (the “Warrants”), for aggregate consideration of $294.0 million. The Company used the proceeds, net of issuance costs, of approximately $288.6 million to repay borrowings outstanding under its senior secured revolving credit facility. The Company also entered into a registration rights agreement with the purchaser of the Second Lien Notes. Net proceeds were allocated to the Warrants based on their fair value on the date of issuance with the remaining net proceeds allocated to the Second Lien Notes. The fair value of the Warrants was calculated by a third-party valuation specialist using a Black Scholes-Merton option pricing model, incorporating the following assumptions at the issuance date:
See “Note 8 - Fair Value Measurements” for further discussion. Second Lien Notes. The Second Lien Notes will mature on the earlier of (i) April 1, 2025 and (ii) 91 days prior to the maturity date of any outstanding unsecured notes in a principal amount at or greater than $100.0 million and have interest payable semi-annually each April 1 and October 1, commencing on April 1, 2021. The Company may redeem the Second Lien Notes in accordance with the following terms: (1) prior to October 1, 2022, a redemption of up to 35% of the principal in an amount not greater than the net proceeds from certain equity offerings, and within 180 days of the closing date of such equity offerings, at a redemption price of 109.00% of principal, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption, if at least 65% of the principal will remain outstanding after such redemption; (2) prior to October 1, 2022, a redemption of all or part of the principal at a price of 100% of the principal amount redeemed, plus an applicable make-whole premium and accrued and unpaid interest, if any, to, but excluding, the date of redemption; and (3) a redemption, in whole or in part, at a redemption price, plus accrued and unpaid interest, if any, to, but excluding, the date of the redemption, of (i) 105.00% of principal if the redemption occurs on or after October 1, 2022, but before October 1, 2023, and (ii) 102.50% of principal if the redemption occurs on or after October 1, 2023, but before October 1, 2024, and (iii) 100% of principal if the redemption occurs on or after October 1, 2024. Upon the occurrence of certain change of control events, each holder of the Second Lien Notes may require the Company to repurchase all or a portion of the Second Lien Notes at a price of 101% of the principal amount repurchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. Restrictive covenants The Company’s credit agreement contains certain covenants including restrictions on additional indebtedness, payment of cash dividends and maintenance of certain financial ratios. Under the credit agreement, the Company must maintain the following financial covenants determined as of the last day of the quarter, each as described above: (1) a Secured Leverage Ratio of no more than 3.00 to 1.00 and (2) a Current Ratio of not less than 1.00 to 1.00. The Company was in compliance with these covenants at September 30, 2020. The credit agreement also places restrictions on the Company and certain of its subsidiaries with respect to additional indebtedness, liens, dividends and other payments to shareholders, repurchases or redemptions of the Company’s common stock, redemptions of senior notes, investments, acquisitions, mergers, asset dispositions, transactions with affiliates, hedging transactions and other matters. The credit agreement is subject to customary events of default. If an event of default occurs and is continuing, the lenders may elect to accelerate amounts due under the credit agreement (except in the case of a bankruptcy event of default, in which case such amounts will automatically become due and payable).
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Objectives and strategies for using derivative instruments The Company is exposed to fluctuations in oil, natural gas and NGL prices received for its production. Consequently, the Company believes it is prudent to manage the variability in cash flows on a portion of its oil, natural gas and NGL production. The Company utilizes a mix of collars, swaps, and put and call options to manage fluctuations in cash flows resulting from changes in commodity prices. The Company does not use these instruments for speculative or trading purposes. Counterparty risk and offsetting The Company typically has numerous commodity derivative instruments outstanding with a counterparty that were executed at various dates, for various contract types, commodities and time periods. This often results in both commodity derivative asset and liability positions with that counterparty. The Company nets its commodity derivative instrument fair values executed with the same counterparty to a single asset or liability pursuant to International Swap Dealers Association Master Agreements (“ISDA Agreements”), which provide for net settlement over the term of the contract and in the event of default or termination of the contract. In general, if a party to a derivative transaction incurs an event of default, as defined in the applicable agreement, the other party will have the right to demand the posting of collateral, demand a cash payment transfer or terminate the arrangement. As of September 30, 2020, the Company has outstanding commodity derivative instruments with fifteen counterparties to minimize its credit exposure to any individual counterparty. All of the counterparties to the Company’s commodity derivative instruments are also lenders under the Company’s credit agreement. Therefore, each of the Company’s counterparties allow the Company to satisfy any need for margin obligations associated with commodity derivative instruments where the Company is in a net liability position with the collateral securing the credit agreement, thus eliminating the need for independent collateral posting. Because each of the Company’s counterparties has an investment grade credit rating, the Company believes it does not have significant credit risk and accordingly does not currently require its counterparties to post collateral to support the net asset positions of its commodity derivative instruments. Although the Company does not currently anticipate nonperformance from its counterparties, it continually monitors the credit ratings of each counterparty. While the Company monitors counterparty creditworthiness on an ongoing basis, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its derivative instruments under lower commodity prices while continuing to be obligated under higher commodity price contracts subject to any right of offset under the agreements. Counterparty credit risk is considered when determining the fair value of a derivative instrument. See “Note 8 - Fair Value Measurements” for further discussion. Financial statement presentation and settlements Settlements of the Company’s commodity derivative instruments are based on the difference between the contract price or prices specified in the derivative instrument and a benchmark price, such as the NYMEX price. To determine the fair value of the Company’s derivative instruments, the Company utilizes present value methods that include assumptions about commodity prices based on those observed in underlying markets. See “Note 8 - Fair Value Measurements” for additional information regarding fair value. Contingent consideration arrangements Ranger Divestiture. The Company’s Ranger Divestiture provides for potential contingent consideration to be received by the Company if commodity prices exceed specified thresholds in each of the next several years. See “Note 3 - Acquisitions and Divestitures” and “Note 8 - Fair Value Measurements” for further discussion. This contingent consideration arrangement is summarized in the table below (in thousands except for per Bbl amounts):
(1) The price used to determine whether the specified thresholds have been met is the average of the final monthly settlements for each month during each annual period end for NYMEX Light Sweet Crude Oil Futures, as reported by the CME Group Inc. (2) Cash received for settlements of contingent consideration arrangements are classified as cash flows from financing activities up to the divestiture date fair value with any excess classified as cash flows from operating activities. Therefore, if the commodity price threshold is reached, $8.5 million of the next contingent receipt will be presented in cash flows from financing activities with the remainder, as well as all subsequent contingent receipts, presented in cash flows from operating activities. (3) The specified pricing threshold for 2019 was not met. As such, approximately $41.7 million remains for potential settlements in future years. As a result of the Carrizo Acquisition, the Company assumed all contingent consideration arrangements previously entered into by Carrizo. These contingent consideration arrangements are summarized below: Contingent ExL Consideration
(1) The price used to determine whether the specified threshold for each year has been met is the average daily closing spot price per barrel of WTI crude oil as measured by the U.S. Energy Information Administration (“U.S. EIA”). (2) Cash paid for settlements related to 2019 are classified as cash flows used in investing activities as the cash payment was made soon after the acquisition date. Due to the extended time frame over which the 2020 and 2021 contingent arrangements could settle, any future payments would be considered financing arrangements. As such, cash settlements of those contingent consideration arrangements would be classified as cash flows from financing activities up to the acquisition date fair value with any excess classified as cash flows from operating activities. Therefore, if the commodity price threshold were reached, $19.2 million of the final contingent payment would be presented in cash flows used in financing activities with the remainder presented in operating cash flows. (3) In January 2020, the Company paid $50.0 million as the specified pricing threshold was met. Only $25.0 million remains for potential settlements in future years. Additionally, as part of the Carrizo Acquisition, the Company acquired contingent consideration arrangements where the Company could receive payments if certain pricing thresholds are met in 2020, which range between $53.00 - $60.00 per barrel of oil or $3.18 - $3.30 per MMBtu of natural gas. In January 2020, the Company received $10.0 million as the specified pricing thresholds were met for certain of the contingent consideration arrangements. As such, the aggregate limit of the remaining contingent receipts is $13.0 million and would be settled in January 2021 based on the specified pricing thresholds for 2020. Warrants The Company determined that the Warrants issued with the Second Lien Notes are required to be accounted for as a derivative instrument. The Company records the Warrants as a liability on its consolidated balance sheet measured at fair value as a component of “Fair value of derivatives” with gains and losses as a result of changes in the fair value of the Warrants recorded as “(Gain) loss on derivative contracts” in the consolidated statements of operations in the period in which the changes occur. Derivatives not designated as hedging instruments The Company records its derivative instruments at fair value in the consolidated balance sheets and records changes in fair value as “(Gain) loss on derivative contracts” in the consolidated statements of operations. Settlements are also recorded as a gain or loss on derivative contracts in the consolidated statements of operations. As previously discussed, the Company’s commodity derivative contracts are subject to master netting arrangements. The Company’s policy is to present the fair value of derivative contracts on a net basis in the consolidated balance sheets. The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
The components of “(Gain) loss on derivative contracts” are as follows for the respective periods:
The components of “Cash (paid) received for commodity derivative settlements” and “Cash paid for settlements of contingent consideration arrangements, net” are as follows for the respective periods:
Derivative positions Listed in the tables below are the outstanding oil, natural gas and NGL derivative contracts as of September 30, 2020:
(1) Premiums from the sale of call options were used to increase the fixed price of certain simultaneously executed price swaps. (2) The short call swaption contract has an exercise expiration date of October 30, 2020.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 – Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Other inputs that are observable directly or indirectly such as 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 – Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. Fair value of financial instruments Cash, cash equivalents, and restricted investments. The carrying amounts for these instruments approximate fair value due to the short-term nature or maturity of the instruments. Debt. The carrying amount of borrowings outstanding under the Credit Facility approximate fair value as the borrowings bear interest at variable rates and are reflective of market rates. The following table presents the principal amounts of the Company’s senior notes with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy. See “Note 6 - Borrowings” for further discussion.
Second Lien Notes. The fair value measurements of the Second Lien Notes are measured by a third-party valuation specialist using a discounted cash flow model based on inputs that are not observable in the market and are designated as Level 3 inputs. Significant inputs to the valuation of the Second Lien Notes include redemption premiums and redemption assumptions provided by the Company. The following table presents the principal amount of the Company’s Second Lien Notes with the fair value measured using the Level 3 inputs mentioned above. See “Note 6 - Borrowings” for details regarding the allocation of the net proceeds to the Second Lien Notes and Warrants.
Assets and liabilities measured at fair value on a recurring basis Certain assets and liabilities are reported at fair value on a recurring basis in the consolidated balance sheet. The following methods and assumptions were used to estimate fair value: Commodity derivative instruments. The fair value of commodity derivative instruments is derived using a third-party income approach valuation model that utilizes market-corroborated inputs that are observable over the term of the commodity derivative contract. The Company’s fair value calculations also incorporate an estimate of the counterparties’ default risk for commodity derivative assets and an estimate of the Company’s default risk for commodity derivative liabilities. As the inputs in the model are substantially observable over the term of the commodity derivative contract and there is a wide availability of quoted market prices for similar commodity derivative contracts, the Company designates its commodity derivative instruments as Level 2 within the fair value hierarchy. See “Note 7 - Derivative Instruments and Hedging Activities” for further discussion. Contingent consideration arrangements - embedded derivative financial instruments. The embedded options within the contingent consideration arrangements are considered financial instruments under ASC 815. The Company engages a third-party valuation specialist using an option pricing model approach to measure the fair value of the embedded options on a recurring basis. The valuation includes significant inputs such as forward oil price curves, time to expiration, and implied volatility. The model provides for the probability that the specified pricing thresholds would be met for each settlement period, estimates undiscounted payouts, and risk adjusts for the discount rates inclusive of adjustments for each of the counterparty’s credit quality. As these inputs are substantially observable for the full term of the contingent consideration arrangements, the inputs are considered Level 2 inputs within the fair value hierarchy. See “Note 7 - Derivative Instruments and Hedging Activities” for further discussion. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis:
Warrants. The fair value of the Warrants was calculated by a third-party valuation specialist using a Black Scholes-Merton option pricing model. As historical volatility is a significant input into the model, the Warrants are designated as Level 3 within the valuation hierarchy. See “Note 6 - Borrowings” and “Note 7 - Derivative Instruments and Hedging Activities” for additional details regarding the Warrants. The following table presents a reconciliation of the change in the fair value of the liability related to the Warrants for the nine months ended September 30, 2020.
Assets and liabilities measured at fair value on a nonrecurring basis Acquisitions. The fair value of assets acquired and liabilities assumed, other than the contingent consideration arrangements which are discussed above, are measured as of the acquisition date by a third-party valuation specialist using a combination of income and market approaches, which are not observable in the market and are therefore designated as Level 3 inputs. Significant inputs include expected discounted future cash flows from estimated reserve quantities, estimates for timing and costs to produce and develop reserves, oil and natural gas forward prices, and a risk-adjusted discount rate. See “Note 3 - Acquisitions and Divestitures” for additional discussion. Asset retirement obligations. The Company measures the fair value of asset retirement obligations as of the date a well begins drilling or when production equipment and facilities are installed using a discounted cash flow model based on inputs that are not observable in the market and therefore are designated as Level 3 within the valuation hierarchy. Significant inputs to the fair value measurement of asset retirement obligations include estimates of the costs of plugging and abandoning oil and gas wells, removing production equipment and facilities and restoring the surface of the land as well as estimates of the economic lives of the oil and gas wells and future inflation rates.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company provides for income taxes at the statutory rate of 21% adjusted for permanent differences expected to be realized, which primarily relate to non-deductible executive compensation expenses, restricted stock windfalls, and state income taxes. The following table presents a reconciliation of the reported amount of income tax expense (benefit) to the amount of income tax expense (benefit) that would result from applying domestic federal statutory tax rates to pretax income (loss) from continuing operations:
(1) Accounts for the potential impact of periodic volatility of stock-based compensation tax deductions on future effective tax rates. Management monitors company-specific, oil and natural gas industry and worldwide economic factors and assesses the likelihood that the Company’s net deferred tax assets will be utilized prior to their expiration. A significant item of objective negative evidence considered was the cumulative historical three year pre-tax loss and a net deferred tax asset position at September 30, 2020, driven primarily by the impairments of evaluated oil and gas properties recognized beginning in the second quarter of 2020 and continuing through the three months ended September 30, 2020. This limits the ability to consider other subjective evidence such as the Company’s potential for future growth. Beginning in the second quarter of 2020 and continuing through the third quarter of 2020, based on the evaluation of the evidence available, the Company concluded that it is more likely than not that the net deferred tax assets will not be realized. As a result, the Company has recorded a valuation allowance of $520.8 million, reducing the net deferred tax assets as of September 30, 2020 to zero. The Company will continue to evaluate whether the valuation allowance is needed in future reporting periods. The valuation allowance will remain until the Company can conclude that the net deferred tax assets are more likely than not to be realized. Future events or new evidence which may lead the Company to conclude that it is more likely than not its net deferred tax assets will be realized include, but are not limited to, cumulative historical pre-tax earnings, improvements in crude oil prices, and taxable events that could result from one or more future potential transactions. The valuation allowance does not preclude the Company from utilizing the tax attributes if the Company recognizes taxable income. As long as the Company continues to conclude that the valuation allowance against its net deferred tax assets is necessary, the Company will have no significant deferred income tax expense or benefit. Due to the issuance of common stock associated with the Carrizo acquisition, the Company incurred a cumulative ownership change and as such, the Company’s net operating losses (“NOLs”) prior to the acquisition are subject to an annual limitation under Internal Revenue Code Section 382. At September 30, 2020, the Company had approximately $897.0 million of NOLs, including $288.2 million acquired from Carrizo, of which approximately $496.5 million expire between 2035 and 2037 and $400.5 million have an indefinite carryforward life.
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Share-based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation | Share-based Compensation Stock-Based Compensation Plans At the Company’s annual meeting of shareholders on June 8, 2020, shareholders approved the 2020 Omnibus Incentive Plan (the “2020 Plan”), which replaced the 2018 Omnibus Incentive Plan (the “Prior Incentive Plan”). From the effective date of the 2020 Plan, no further awards may be granted under the Prior Incentive Plan, however, awards previously granted under the Prior Incentive Plan will remain outstanding in accordance with their terms. Effective August 7, 2020, in connection with the reverse stock split and reduction in authorized shares, the Board of Directors approved and adopted an amendment to the 2020 Plan to proportionately adjust the limitations on awards that may be granted. See “Note 11 - Stockholders’ Equity” for discussion of the reverse stock split and reduction in authorized shares. As of September 30, 2020, there were 1,967,782 common shares remaining available for grant under the 2020 Plan. RSU Equity Awards The following table summarizes activity for restricted stock units may be settled in common stock (“RSU Equity Awards”) for the three and nine months ended September 30, 2020 and 2019:
(1)Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information. (2)Includes zero target performance-based RSU Equity Awards during the three months ended September 30, 2020 and 2019, respectively, and 111.2 thousand and 38.8 thousand during the nine months ended September 30, 2020 and 2019, respectively. The performance-based RSU Equity Awards granted during the nine months ended September 30, 2020 and 2019 will vest at a range of 0% to 300% and 0% to 200%, respectively. (3)The fair value of shares vested was $0.1 million and $0.8 million during the three months ended September 30, 2020 and 2019, respectively, and $1.4 million and $6.8 million for the nine months ended September 30, 2020 and 2019, respectively. Grant activity for the nine months ended September 30, 2020 and 2019 primarily consisted of RSU Equity Awards granted to executives and employees as part of the annual grant of long-term equity incentive awards in January and June 2020, respectively, as compared to the annual grant of long-term equity to executives and employees during the first quarter of 2019. The number of outstanding performance-based RSU Equity Awards that can vest is based on a calculation that compares the Company’s total shareholder return (“TSR”) to the same calculated return of a group of peer companies selected by the Company and can range between 0% and 300% of the target units for the awards granted in 2020 and between 0% and 200% of the target units for the awards granted in 2018 and 2019. The increase in the maximum amount of performance-based RSU Equity Awards that can vest for the awards granted in 2020 is due to an absolute TSR modifier, which was added as a second factor in the calculation, in addition to the relative TSR multiplier. While the absolute TSR modifier could increase the number of awards that vest, the number of awards that vest could also be reduced if the absolute TSR is less than 5% over the performance period. The Company recognizes expense for performance-based RSU Equity Awards based on the fair value of the awards at the grant date. Awards with a performance-based provision do not allow for the reversal of previously recognized expense, even if the market metric is not achieved and no shares ultimately vest. The grant date fair value of performance-based RSU Equity Awards, calculated using a Monte Carlo simulation, was zero for the three months ended September 30, 2020 and 2019, respectively, and $3.4 million and $4.3 million for the nine months ended September 30, 2020 and 2019, respectively. The following table summarizes the assumptions used to calculate the grant date fair value of the performance-based RSU Equity Awards granted during the nine months ended September 30, 2020 and 2019:
As of September 30, 2020, unrecognized compensation costs related to unvested RSU Equity Awards were $16.4 million and will be recognized over a weighted average period of 1.9 years. Cash-Settled RSU Awards The table below summarizes the activity for restricted stock units that may be settled in cash (“Cash-Settled RSU Awards”) for the three and nine months ended September 30, 2020 and 2019:
(1)Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information. Grant activity primarily consisted of Cash-Settled RSU Awards to executives as part of the annual grant of long-term equity incentive awards that occurred in the first half of each of the years presented in the table above. These awards cliff vest after an approximate -year performance period. The Company’s outstanding Cash-Settled RSU Awards include the same performance-based vesting conditions as the performance-based RSU Equity Awards, which are described above. Additionally, the assumptions used to calculate the grant date fair value per Cash-Settled RSU Award granted for each of the respective periods presented are the same as the performance-based RSU Equity Awards presented above. The following table summarizes the Company’s liability for Cash-Settled RSU Awards and the classification in the consolidated balance sheets for the periods indicated:
As of September 30, 2020, unrecognized compensation costs related to unvested Cash-Settled RSU Awards were $0.5 million and will be recognized over a weighted average period of 2.0 years. Share-Based Compensation Expense, Net Share-based compensation expense associated with the RSU Equity Awards, Cash-Settled RSU Awards, and cash-settled stock appreciation rights (“Cash SARs”), net of amounts capitalized, is included in “General and administrative” in the consolidated statements of operations. The following table presents share-based compensation expense (benefit), net for each respective period:
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Stockholders’ Equity |
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Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Reverse Stock Split On August 7, 2020, the Board of Directors effected a reverse stock split of the Company’s outstanding shares of common stock at a ratio of 1-for-10 and reduced the total number of authorized shares of the Company’s common stock pursuant to an amendment to the Company’s Certificate of Incorporation, which was approved by the Company’s shareholders at the Company’s annual meeting of shareholders on June 8, 2020. The reverse stock split became effective as of the close of business on August 7, 2020. The Company’s common stock began trading on a split-adjusted basis on the New York Stock Exchange (“NYSE”) at the market open on August 10, 2020. The par value of the common stock was not adjusted as a result of the reverse stock split. The reverse stock split was intended to, among other things, increase the per share trading price of the Company’s common shares to satisfy the $1.00 minimum closing price requirement for continued listing on the NYSE. As a result of the reverse stock split, each 10 pre-split shares of common stock outstanding were automatically combined into one issued and outstanding share of common stock. The fractional shares that resulted from the reverse stock split were canceled by paying cash in lieu of the fair value. The number of outstanding shares of common stock were reduced from 397,479,684 as of August 7, 2020 to 39,746,967 shares. The total number of shares of common stock that the Company is authorized to issue was reduced from 525,000,000 to 52,500,000 shares. All share and per share amounts, except par value per share, in the accompanying consolidated financial statements and notes thereto were retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital in the current period.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company determines if an arrangement is a lease at inception of the contract. If the contract is determined to be a lease the Company classifies the lease as an operating or financing lease. The Company recognizes an operating or financing lease on its consolidated balance sheets as a lease liability, which represents the present value of the Company’s obligation to make lease payments arising from the lease. The Company also records a corresponding right-of-use (“ROU”) asset, which represents the Company’s right to use the underlying asset for the lease term. The Company’s operating leases typically do not provide an implicit interest rate, therefore, the Company utilizes its incremental borrowing rate to calculate the present value of the lease payments based on information available at inception of the contract. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for financing leases is comprised of interest expense on the financing lease liability and the amortization of the associated ROU asset, which is also recognized on a straight-line basis over the lease term. Variable lease expense that is not dependent on an index or rate is not included in the operating or financing lease liability or ROU asset and is recognized in the period in which the obligation for those payments is incurred. The majority of the lease liability on the Company’s consolidated balance sheets is comprised of its drilling rig and office lease contracts. The tables below, which present the components of lease costs and supplemental balance sheet information are presented on a gross basis. Other joint owners in the properties operated by the Company generally pay for their working interest share of costs associated with drilling rigs and well equipment. The table below presents the components of the Company’s lease costs for the periods indicated:
(1) Included as a component of “Depreciation, depletion and amortization” in the consolidated statements of operations. (2) Included as a component of “Interest expense, net of capitalized amounts” in the consolidated statements of operations. (3) For the three months ended September 30, 2020 and 2019, approximately $6.1 million and $7.6 million were costs associated with drilling rigs. For the nine months ended September 30, 2020 and 2019, approximately $29.7 million and $21.5 million were costs associated with drilling rigs. and were capitalized to “Evaluated properties” in the consolidated balance sheets and the other remaining operating lease costs were components of “General and administrative” and “Lease operating” in the consolidated statements of operations. (4) As a result of the downturn in economic conditions in conjunction with our ongoing effort to consolidate various office locations due to the Carrizo Acquisition, the Company evaluated certain of its office leases for impairment. Upon evaluation, the Company recorded impairments of certain of its Operating lease ROU assets for the three and nine months ended September 30, 2020 of zero and $3.6 million which is a component of “Merger and integration expenses” in the consolidated statements of operations. (5) Short-term lease costs exclude expenses related to leases with a contract term of one month or less. (6) Variable lease costs include additional payments that were not included in the initial measurement of the lease liability and related ROU asset for lease agreements with terms greater than 12 months. Variable lease costs primarily consist of incremental usage associated with drilling rigs. The table below presents supplemental balance sheet information for the Company’s leases as of the periods indicated:
The table below presents the weighted average remaining lease terms and weighted average discounts rates for the Company’s leases for the period indicated:
The table below presents the maturity of the Company’s lease liabilities as of September 30, 2020:
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Leases | Leases The Company determines if an arrangement is a lease at inception of the contract. If the contract is determined to be a lease the Company classifies the lease as an operating or financing lease. The Company recognizes an operating or financing lease on its consolidated balance sheets as a lease liability, which represents the present value of the Company’s obligation to make lease payments arising from the lease. The Company also records a corresponding right-of-use (“ROU”) asset, which represents the Company’s right to use the underlying asset for the lease term. The Company’s operating leases typically do not provide an implicit interest rate, therefore, the Company utilizes its incremental borrowing rate to calculate the present value of the lease payments based on information available at inception of the contract. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for financing leases is comprised of interest expense on the financing lease liability and the amortization of the associated ROU asset, which is also recognized on a straight-line basis over the lease term. Variable lease expense that is not dependent on an index or rate is not included in the operating or financing lease liability or ROU asset and is recognized in the period in which the obligation for those payments is incurred. The majority of the lease liability on the Company’s consolidated balance sheets is comprised of its drilling rig and office lease contracts. The tables below, which present the components of lease costs and supplemental balance sheet information are presented on a gross basis. Other joint owners in the properties operated by the Company generally pay for their working interest share of costs associated with drilling rigs and well equipment. The table below presents the components of the Company’s lease costs for the periods indicated:
(1) Included as a component of “Depreciation, depletion and amortization” in the consolidated statements of operations. (2) Included as a component of “Interest expense, net of capitalized amounts” in the consolidated statements of operations. (3) For the three months ended September 30, 2020 and 2019, approximately $6.1 million and $7.6 million were costs associated with drilling rigs. For the nine months ended September 30, 2020 and 2019, approximately $29.7 million and $21.5 million were costs associated with drilling rigs. and were capitalized to “Evaluated properties” in the consolidated balance sheets and the other remaining operating lease costs were components of “General and administrative” and “Lease operating” in the consolidated statements of operations. (4) As a result of the downturn in economic conditions in conjunction with our ongoing effort to consolidate various office locations due to the Carrizo Acquisition, the Company evaluated certain of its office leases for impairment. Upon evaluation, the Company recorded impairments of certain of its Operating lease ROU assets for the three and nine months ended September 30, 2020 of zero and $3.6 million which is a component of “Merger and integration expenses” in the consolidated statements of operations. (5) Short-term lease costs exclude expenses related to leases with a contract term of one month or less. (6) Variable lease costs include additional payments that were not included in the initial measurement of the lease liability and related ROU asset for lease agreements with terms greater than 12 months. Variable lease costs primarily consist of incremental usage associated with drilling rigs. The table below presents supplemental balance sheet information for the Company’s leases as of the periods indicated:
The table below presents the weighted average remaining lease terms and weighted average discounts rates for the Company’s leases for the period indicated:
The table below presents the maturity of the Company’s lease liabilities as of September 30, 2020:
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Accounts Receivable, Net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | Accounts Receivable, Net
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Accounts Payable and Accrued Liabilities |
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Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities
(1) See “Note 3 - Acquisitions and Divestitures” for further information regarding the Carrizo Acquisition.
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Supplemental Cash Flow |
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Supplemental Cash Flow | Supplemental Cash Flow
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Subsequent Events |
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Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | Subsequent Events Hedging Subsequent to September 30, 2020, the Company entered into the following derivative contracts:
Additionally, subsequent to September 30, 2020, the Company terminated 1,908,675 Bbls of Argus WTI-Houston fixed price oil swaps at a weighted average price of $39.78 per Bbl, certain of which were terminated contemporaneously with entering into the WTI collars above. The Company also terminated 424,150 Bbls of ICE Brent fixed price oil swaps at a weighted average price of $40.00 per Bbl, resulting in neither cash receipts or payments. Non-operated sale On November 2, 2020, the Company closed the sale of substantially all of its non-operated assets. See “Note 3 - Acquisitions and Divestitures” for additional details. Senior Note Exchange On November 2, 2020, the Company entered into an Exchange Agreement (the “Exchange Agreement”) with certain holders (the “Holders”) of the Company’s 6.25% Senior Notes, 6.125% Senior Notes, 8.25% Senior Notes due 2025 (the “8.25% Senior Notes”), and 6.375% Senior Notes due 2026 (the “6.375% Senior Notes”, and together with the 6.25% Senior Notes, 6.125% Senior Notes, and 8.25% Senior Notes, the “Senior Unsecured Notes”). Pursuant to the Exchange Agreement, the Company has agreed to exchange $286.0 million of aggregate principal amount of Senior Unsecured Notes held by the Holders for $158.5 million aggregate principal amount of newly issued 9.00% Second Lien Senior Secured Notes due 2025 (the “New Notes”) at exchange ratios of $650, $575, $480 and $460 per $1,000 principal amount of 6.25% Senior Notes, 6.125% Senior Notes, 8.25% Senior Notes, and 6.375% Senior Notes, respectively, tendered (the “Exchange Ratios”). Pursuant to the Exchange Agreement, the Company has also agreed to issue to the Holders approximately 1.16 million warrants exercisable for shares of common stock, with a term of 5 years and an exercise price of $5.60 per share, exercisable only on a net share settlement basis. The Holders and their affiliates may elect to include in the exchange up to an additional $104.0 million of Senior Unsecured Notes for New Notes at the Exchange Ratios set forth above. In the event the aggregate principal amount of Senior Unsecured Notes exchanged for New Notes at closing is greater than $286.0 million, the Company will increase proportionally the number of warrants to be issued to the Holders up to a warrant eligibility cap of $375.3 million. The maximum number of warrants issuable to the Holders is approximately 1.76 million.
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Description of Business and Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | The accompanying unaudited interim consolidated financial statements include the accounts of the Company after elimination of intercompany transactions and balances and have been prepared pursuant to the rules and regulations of the SEC and therefore do not include all disclosures required for financial statements prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). In the opinion of management, these financial statements include all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly, in all material respects, the Company’s interim financial position, results of operations and cash flows. However, the results of operations for the periods presented are not necessarily indicative of the results of operations that may be expected for the full year. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications had no material impact on prior period financial statements. However, the comparability of certain 2020 amounts to prior periods could be impacted as a result of the Carrizo Acquisition in December 2019. Significant Accounting Policies The Company’s significant accounting policies are described in “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Annual Report”) and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this report should be read in conjunction with the Company’s 2019 Annual Report. Three-stream reporting. Effective January 1, 2020, certain of our natural gas processing agreements were modified to allow the Company to take title to NGLs resulting from the processing of our natural gas. As a result, sales and reserve volumes, prices, and revenues for NGLs and natural gas are presented separately for periods subsequent to January 1, 2020. For periods prior to January 1, 2020, except for sales and reserve volumes, prices, and revenues specifically associated with the Carrizo Acquisition, as defined below, sales and reserve volumes, prices, and revenues for NGLs were presented with natural gas.
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Recently Adopted Accounting Standards | None that had a material impact on our financial statements. Recently Issued Accounting Pronouncements Income Taxes. In December 2019, the FASB released Accounting Standards Update No. 2019-12 (ASU 2019-12): Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The amended standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our financial statements.
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Subsequent Events | The Company evaluates subsequent events through the date the financial statements are issued. See “Note 16 - Subsequent Events” for further discussion. |
Revenue from contracts with customers | Oil sales Under the Company’s oil sales contracts it sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue when control transfers to the purchaser at the point of delivery at the net price received. Natural gas sales Effective January 1, 2020, certain of our natural gas processing agreements were modified to allow the Company to take title to NGLs resulting from the processing of our natural gas. As a result, sales and reserve volumes, prices, and revenues for NGLs and natural gas are presented separately for periods subsequent to January 1, 2020. For periods prior to January 1, 2020, except for sales and reserve volumes, prices, and revenues specifically associated with Carrizo, sales and reserve volumes, prices, and revenues for NGLs were presented with natural gas. Under the Company’s natural gas sales processing contracts, it delivers natural gas to a midstream processing entity which gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of NGLs and residue gas. We evaluate whether the processing entity is the principal or the agent in the transaction for each of our natural gas processing agreements and have concluded that we maintain control through processing or we have the right to take residue gas and/or NGLs in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. We recognize revenue when control transfers to the purchaser at the delivery point based on the contractual index price received. Contractual fees associated with gathering, processing, treating and compression, as well as any transportation fees incurred to deliver the product to the purchaser, for the majority of the Company’s natural gas processing agreements were previously recorded as a reduction of revenue. As a result of the modifications to certain of the Company’s natural gas processing agreements, as well as the natural gas processing agreements assumed in the Carrizo Acquisition, the Company now recognizes revenue for natural gas and NGLs on a gross basis with gathering, transportation and processing fees recognized separately as “Gathering, transportation and processing” in its consolidated statements of operations as the Company maintains control throughout processing. These changes impact the comparability of 2020 with prior periods. For the three and nine months ended September 30, 2019, $2.6 million and $7.8 million of gathering, transportation, and processing fees were recognized as a reduction to natural gas revenues in the consolidated statement of operations. Oil and Gas Purchase and Sale Arrangements Sales of purchased oil and gas represent revenues the Company receives from sales of commodities purchased from a third-party. The Company recognizes these revenues and the purchase of the third-party commodities, as well as any costs associated with the purchase, on a gross basis, as the Company acts as a principal in these transactions by assuming control of the purchased commodity before it is transferred to the customer. Accounts receivable from revenues from contracts with customers Net accounts receivable include amounts billed and currently due from revenues from contracts with customers of our oil and natural gas production, which had a balance at September 30, 2020 and December 31, 2019 of $81.4 million and $165.3 million, respectively, are presented in “Accounts receivable, net” in the consolidated balance sheets.
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Acquisitions and Divestitures (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Net Assets Acquired | The following table sets forth the Company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date.
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Business Acquisition, Pro Forma Information | The pro forma consolidated statements of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2018 and is not intended to be a projection of future results.
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Property and Equipment, Net (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | As of September 30, 2020 and December 31, 2019, total property and equipment, net consisted of the following:
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Schedule of Impairment of Evaluated Oil and Gas Properties |
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share:
(1) The Company redeemed all outstanding shares of its 10% Series A Cumulative Preferred Stock (“Preferred Stock”) on July 18, 2019 and all dividends ceased to accrue upon redemption. (2) Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information. (3) Shares excluded from the diluted earnings per share calculation because their effect would be anti-dilutive.
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Borrowings (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Borrowings | The Company’s borrowings consisted of the following:
(1) Excludes unamortized deferred financing costs related to the Company’s senior secured revolving credit facility of $24.9 million and $22.2 million as of September 30, 2020 and December 31, 2019, respectively, which are classified in “Deferred financing costs” in the consolidated balance sheets.
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Fair Value Measurement Inputs and Valuation Techniques | The fair value of the Warrants was calculated by a third-party valuation specialist using a Black Scholes-Merton option pricing model, incorporating the following assumptions at the issuance date:
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Derivative Instruments and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Price Risk Derivatives | This contingent consideration arrangement is summarized in the table below (in thousands except for per Bbl amounts):
(1) The price used to determine whether the specified thresholds have been met is the average of the final monthly settlements for each month during each annual period end for NYMEX Light Sweet Crude Oil Futures, as reported by the CME Group Inc. (2) Cash received for settlements of contingent consideration arrangements are classified as cash flows from financing activities up to the divestiture date fair value with any excess classified as cash flows from operating activities. Therefore, if the commodity price threshold is reached, $8.5 million of the next contingent receipt will be presented in cash flows from financing activities with the remainder, as well as all subsequent contingent receipts, presented in cash flows from operating activities. (3) The specified pricing threshold for 2019 was not met. As such, approximately $41.7 million remains for potential settlements in future years.
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Fair Value of Derivative Instruments | These contingent consideration arrangements are summarized below: Contingent ExL Consideration
(1) The price used to determine whether the specified threshold for each year has been met is the average daily closing spot price per barrel of WTI crude oil as measured by the U.S. Energy Information Administration (“U.S. EIA”). (2) Cash paid for settlements related to 2019 are classified as cash flows used in investing activities as the cash payment was made soon after the acquisition date. Due to the extended time frame over which the 2020 and 2021 contingent arrangements could settle, any future payments would be considered financing arrangements. As such, cash settlements of those contingent consideration arrangements would be classified as cash flows from financing activities up to the acquisition date fair value with any excess classified as cash flows from operating activities. Therefore, if the commodity price threshold were reached, $19.2 million of the final contingent payment would be presented in cash flows used in financing activities with the remainder presented in operating cash flows. (3) In January 2020, the Company paid $50.0 million as the specified pricing threshold was met. Only $25.0 million remains for potential settlements in future years.
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Schedule of Offsetting Assets | The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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Schedule of Offsetting Liabilities | The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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Schedule of Gain or Loss on Derivative Contracts | The components of “(Gain) loss on derivative contracts” are as follows for the respective periods:
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Schedule of Derivative Instruments | The components of “Cash (paid) received for commodity derivative settlements” and “Cash paid for settlements of contingent consideration arrangements, net” are as follows for the respective periods:
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Schedule of Outstanding Oil and Natural Gas Derivative Contracts | Listed in the tables below are the outstanding oil, natural gas and NGL derivative contracts as of September 30, 2020:
(1) Premiums from the sale of call options were used to increase the fixed price of certain simultaneously executed price swaps. (2) The short call swaption contract has an exercise expiration date of October 30, 2020.
Subsequent to September 30, 2020, the Company entered into the following derivative contracts:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Instruments at Carrying and Fair Value | The carrying amount of borrowings outstanding under the Credit Facility approximate fair value as the borrowings bear interest at variable rates and are reflective of market rates. The following table presents the principal amounts of the Company’s senior notes with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy. See “Note 6 - Borrowings” for further discussion.
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Fair Value of Assets Measured on Recurring Basis | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis:
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Fair Value of Liabilities Measured on Recurring Basis | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the change in the fair value of the liability related to the Warrants for the nine months ended September 30, 2020.
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Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the reported amount of income tax expense (benefit) to the amount of income tax expense (benefit) that would result from applying domestic federal statutory tax rates to pretax income (loss) from continuing operations:
(1) Accounts for the potential impact of periodic volatility of stock-based compensation tax deductions on future effective tax rates.
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Share-based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Unit Activity | The following table summarizes activity for restricted stock units may be settled in common stock (“RSU Equity Awards”) for the three and nine months ended September 30, 2020 and 2019:
(1)Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information. (2)Includes zero target performance-based RSU Equity Awards during the three months ended September 30, 2020 and 2019, respectively, and 111.2 thousand and 38.8 thousand during the nine months ended September 30, 2020 and 2019, respectively. The performance-based RSU Equity Awards granted during the nine months ended September 30, 2020 and 2019 will vest at a range of 0% to 300% and 0% to 200%, respectively. (3)The fair value of shares vested was $0.1 million and $0.8 million during the three months ended September 30, 2020 and 2019, respectively, and $1.4 million and $6.8 million for the nine months ended September 30, 2020 and 2019, respectively.
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Schedule of Fair Value Inputs | The following table summarizes the assumptions used to calculate the grant date fair value of the performance-based RSU Equity Awards granted during the nine months ended September 30, 2020 and 2019:
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Schedule of Cash-Settleable Vesting Period RSU Awards | The table below summarizes the activity for restricted stock units that may be settled in cash (“Cash-Settled RSU Awards”) for the three and nine months ended September 30, 2020 and 2019:
(1)Shares and per share data have been retroactively adjusted to reflect the Company’s 1-for-10 reverse stock split effective August 7, 2020. See “Note 11 - Stockholders’ Equity” for additional information.
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Schedule of Cash-Settleable Restricted Stock Units Awards | The following table summarizes the Company’s liability for Cash-Settled RSU Awards and the classification in the consolidated balance sheets for the periods indicated:
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Schedule of Cost by Plan | The following table presents share-based compensation expense (benefit), net for each respective period:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The table below presents the components of the Company’s lease costs for the periods indicated:
(1) Included as a component of “Depreciation, depletion and amortization” in the consolidated statements of operations. (2) Included as a component of “Interest expense, net of capitalized amounts” in the consolidated statements of operations. (3) For the three months ended September 30, 2020 and 2019, approximately $6.1 million and $7.6 million were costs associated with drilling rigs. For the nine months ended September 30, 2020 and 2019, approximately $29.7 million and $21.5 million were costs associated with drilling rigs. and were capitalized to “Evaluated properties” in the consolidated balance sheets and the other remaining operating lease costs were components of “General and administrative” and “Lease operating” in the consolidated statements of operations. (4) As a result of the downturn in economic conditions in conjunction with our ongoing effort to consolidate various office locations due to the Carrizo Acquisition, the Company evaluated certain of its office leases for impairment. Upon evaluation, the Company recorded impairments of certain of its Operating lease ROU assets for the three and nine months ended September 30, 2020 of zero and $3.6 million which is a component of “Merger and integration expenses” in the consolidated statements of operations. (5) Short-term lease costs exclude expenses related to leases with a contract term of one month or less. (6) Variable lease costs include additional payments that were not included in the initial measurement of the lease liability and related ROU asset for lease agreements with terms greater than 12 months. Variable lease costs primarily consist of incremental usage associated with drilling rigs.
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Assets and Liabilities, Lessee | The table below presents supplemental balance sheet information for the Company’s leases as of the periods indicated:
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Lease Term and Discount Rate, Lessee | The table below presents the weighted average remaining lease terms and weighted average discounts rates for the Company’s leases for the period indicated:
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Lessee, Operating Lease, Liability, Maturity | The table below presents the maturity of the Company’s lease liabilities as of September 30, 2020:
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Finance Lease, Liability, Maturity | The table below presents the maturity of the Company’s lease liabilities as of September 30, 2020:
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Accounts Receivable, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable, Net |
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Accounts Payable and Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities |
(1) See “Note 3 - Acquisitions and Divestitures” for further information regarding the Carrizo Acquisition.
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Supplemental Cash Flow (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures |
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Subsequent Events (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Oil and Natural Gas Derivative Contracts | Listed in the tables below are the outstanding oil, natural gas and NGL derivative contracts as of September 30, 2020:
(1) Premiums from the sale of call options were used to increase the fixed price of certain simultaneously executed price swaps. (2) The short call swaption contract has an exercise expiration date of October 30, 2020.
Subsequent to September 30, 2020, the Company entered into the following derivative contracts:
|
Revenue Recognition (Gathering and Treating Fees) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable | $ 114,304 | $ 210,999 | ||
Natural Gas, Gathering and Treating Fees | Natural Gas Revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cost of goods and services sold | $ 2,600 | $ 7,800 | ||
Oil and natural gas receivables | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable | $ 81,364 | $ 165,275 |
Revenue Recognition (Performance Obligation) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation, description of timing | The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. |
Acquisitions and Divestitures (Narrative - Dispositions) (Details) |
3 Months Ended | |||
---|---|---|---|---|
Nov. 02, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
a
|
Oct. 01, 2020 |
|
Subsequent Event | Non-Operated Working Interest Transaction | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale | $ 29,600,000 | |||
ORRI Transaction | Subsequent Event | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Percent of overriding royalty interest to be sold | 2.00% | |||
ORRI Transaction | Plan | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration | $ 140,000,000.0 | |||
Proceeds from divestiture of businesses | $ 135,800,000 | |||
Gain (loss) on disposal | $ 0 | |||
Non-Operated Working Interest Transaction | Subsequent Event | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration | $ 30,000,000.0 | |||
Certain Non-core Assets in the Midland Basin | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration | 244,900,000 | |||
Potential contingency payments | $ 60,000,000.0 | |||
Potential contingency payments, period | 3 years | |||
Area of land | a | 9,850 | |||
Working interest | 66.00% |
Acquisitions and Divestitures (Narrative - Acquisitions) (Details) $ / shares in Units, $ in Thousands, shares in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Dec. 20, 2019
USD ($)
$ / shares
shares
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Business Acquisition [Line Items] | |||||||
Revenues | $ 290,026 | $ 155,378 | $ 738,335 | $ 475,477 | |||
Total operating expenses | 919,733 | 102,834 | 2,681,858 | 321,199 | |||
Merger and integration | 2,465 | $ 5,943 | 26,362 | $ 5,943 | |||
Accrued severance | 2,682 | 2,682 | $ 2,682 | $ 28,803 | |||
Carrizo Oil & Gas, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 15,600 | ||||||
8.875% Preferred Stock | Carrizo Oil & Gas, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Preferred stock cumulative cash dividends rate | 8.875% | ||||||
Carrizo Oil & Gas, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Share conversion ratio | 1.75 | ||||||
Equity interest issued, number of shares (in shares) | shares | 168.2 | ||||||
Equity interest issued, price per share (in dollars per share) | $ / shares | $ 4.55 | ||||||
Total consideration | $ 765,373 | ||||||
Revenues | 160,500 | 408,800 | |||||
Total operating expenses | 51,600 | 151,500 | |||||
Acquisition related costs | $ 58,800 | ||||||
Restructuring charges | 100,800 | ||||||
Carrizo Oil & Gas, Inc. | Accounts Payable and Accrued Liabilities | |||||||
Business Acquisition [Line Items] | |||||||
Restructuring reserve | 5,600 | 5,600 | 5,600 | ||||
Carrizo Oil & Gas, Inc. | Employee Severance | |||||||
Business Acquisition [Line Items] | |||||||
Restructuring charges | 800 | 6,200 | 35,800 | ||||
Carrizo Oil & Gas, Inc. | Acquisition & Integration | |||||||
Business Acquisition [Line Items] | |||||||
Restructuring charges | $ 1,700 | $ 20,200 | $ 65,000 |
Acquisitions and Divestitures (Assets Acquired and Liabilities Assumed) (Details) - Carrizo Oil & Gas, Inc. $ in Thousands |
Dec. 20, 2019
USD ($)
|
---|---|
Consideration: | |
Fair value of the Company’s common stock issued | $ 765,373 |
Total consideration | 765,373 |
Liabilities: | |
Accounts payable | 37,657 |
Revenues and royalties payable | 52,449 |
Operating lease liabilities - current | 29,924 |
Fair value of derivatives - current | 61,015 |
Other current liabilities | 88,714 |
Long-term debt | 1,984,135 |
Operating lease liabilities - non-current | 30,070 |
Asset retirement obligation | 26,151 |
Fair value of derivatives - non-current | 26,960 |
Other long-term liabilities | 17,260 |
Common stock warrants | 10,029 |
Total liabilities assumed | 2,364,364 |
Assets: | |
Accounts receivable, net | 48,479 |
Fair value of derivatives - current | 17,451 |
Other current assets | 11,640 |
Other property and equipment | 9,614 |
Fair value of derivatives - non-current | 4,518 |
Deferred tax asset | 159,320 |
Operating lease right-of-use-assets | 59,907 |
Other long term assets | 2,578 |
Total assets acquired | 3,129,737 |
Evaluated oil and natural gas properties | |
Assets: | |
Oil and natural gas properties | 2,133,280 |
Unevaluated oil and natural gas properties | |
Assets: | |
Oil and natural gas properties | $ 682,950 |
Acquisitions and Divestitures (Unaudited Pro Forma Financial Information) (Details) - Carrizo Oil & Gas, Inc. $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
$ / shares
| |
Business Acquisition [Line Items] | |
Revenues | $ 1,620,357 |
Income from operations | 614,668 |
Net income | $ 369,777 |
Net income per common share: | |
Basic (in dollars per share) | $ / shares | $ 0.89 |
Diluted (in dollars per share) | $ / shares | $ 0.89 |
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Oil and natural gas properties, full cost accounting method | ||
Evaluated properties | $ 7,775,858 | $ 7,203,482 |
Accumulated depreciation, depletion, amortization and impairments | (4,859,316) | (2,520,488) |
Net evaluated oil and natural gas properties | 2,916,542 | 4,682,994 |
Unevaluated properties | ||
Unevaluated leasehold and seismic costs | 1,574,451 | 1,843,725 |
Capitalized interest | 183,681 | 142,399 |
Total unevaluated properties | 1,758,132 | 1,986,124 |
Total oil and natural gas properties, net | 4,674,674 | 6,669,118 |
Other property and equipment | 66,365 | 67,202 |
Accumulated depreciation | (33,445) | (31,949) |
Other property and equipment, net | $ 32,920 | $ 35,253 |
Property and Equipment, Net (Narrative) (Details) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2020
$ / bbl
|
Sep. 30, 2020
USD ($)
$ / bbl
|
Mar. 31, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
$ / bbl
|
Mar. 31, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
$ / bbl
|
Sep. 30, 2019
USD ($)
$ / bbl
|
|
Property, Plant and Equipment [Abstract] | |||||||
Internal costs capitalized | $ 10,300,000 | $ 8,200,000 | $ 26,700,000 | $ 27,400,000 | |||
Interest costs capitalized | 20,700,000 | 18,100,000 | 65,600,000 | 56,700,000 | |||
Amount transferred from unevaluated properties into evaluated properties | 235,900,000 | ||||||
Impairment of evaluated oil and gas properties | $ 684,956,000 | $ 0 | $ 0 | $ 0 | $ 1,961,474,000 | $ 0 | |
Property, Plant and Equipment [Line Items] | |||||||
Beginning of period 12-Month Average Realized Price ($/Bbl) | $ / bbl | 45.87 | 53.00 | 53.90 | 58.40 | |||
Forecast | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Beginning of period 12-Month Average Realized Price ($/Bbl) | $ / bbl | 39.65 |
Property and Equipment, Net (Impairment) (Details) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
$ / bbl
|
Mar. 31, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
$ / bbl
|
Mar. 31, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
$ / bbl
|
Sep. 30, 2019
USD ($)
$ / bbl
|
|
Property, Plant and Equipment [Abstract] | ||||||
Impairment of proved oil and gas properties | $ | $ 684,956,000 | $ 0 | $ 0 | $ 0 | $ 1,961,474,000 | $ 0 |
Beginning of period 12-Month Average Realized Price ($/Bbl) | 45.87 | 53.00 | 53.90 | 58.40 | ||
End of period 12-Month Average Realized Price ($/Bbl) | 41.71 | 52.44 | 41.71 | 52.44 | ||
Percent decrease in 12-Month Average Realized Price | (9.00%) | (1.00%) | (23.00%) | (10.00%) |
Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 07, 2020 |
Sep. 30, 2020
USD ($)
$ / shares
shares
|
Jun. 30, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
$ / shares
shares
|
Jun. 30, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
$ / shares
shares
|
Sep. 30, 2019
USD ($)
$ / shares
shares
|
Jul. 18, 2019 |
|||
Earnings Per Share, Basic and Diluted [Line Items] | ||||||||||||
Net income (loss) | $ | $ (680,384) | $ (1,564,731) | $ 216,565 | $ 55,834 | $ 55,180 | $ (19,543) | $ (2,028,550) | $ 91,471 | ||||
Preferred stock dividends | $ | 0 | (350) | 0 | (3,997) | ||||||||
Loss on redemption of preferred stock | $ | 0 | (8,304) | 0 | (8,304) | ||||||||
Income (Loss) Available to Common Stockholders | $ | $ (680,384) | $ 47,180 | $ (2,028,550) | $ 79,170 | ||||||||
Basic weighted average common shares outstanding (in shares) | shares | [1] | 39,746 | 22,831 | 39,707 | 22,805 | |||||||
Dilutive impact of restricted stock (in shares) | shares | 0 | 15 | 0 | 36 | ||||||||
Diluted weighted average common shares outstanding (in shares) | shares | [1] | 39,746 | 22,846 | 39,707 | 22,841 | |||||||
Income (Loss) Available to Common Stockholders Per Common Share | ||||||||||||
Basic (in dollars per share) | $ / shares | [1] | $ (17.12) | $ 2.07 | $ (51.09) | $ 3.47 | |||||||
Diluted (in dollars per share) | $ / shares | [1] | $ (17.12) | $ 2.07 | $ (51.09) | $ 3.47 | |||||||
Stock split, conversion ratio | 0.1 | |||||||||||
10% Series A Cumulative Preferred Stock | ||||||||||||
Income (Loss) Available to Common Stockholders Per Common Share | ||||||||||||
Debt instrument, interest rate, stated (as a percent) | 10.00% | |||||||||||
Restricted Stock | ||||||||||||
Income (Loss) Available to Common Stockholders Per Common Share | ||||||||||||
Restricted stock (in shares) | shares | 1,263 | 249 | 1,014 | 191 | ||||||||
|
Borrowings (Schedule of Borrowings) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
Oct. 03, 2016 |
---|---|---|---|
Principal components: | |||
Total principal outstanding | $ 3,225,000 | $ 3,185,000 | |
Unamortized deferred financing costs for Senior Notes | (12,346) | (14,359) | |
Total carrying value of borrowings | 3,190,273 | 3,186,109 | |
Deferred financing costs | 24,850 | 22,233 | |
Senior Secured Revolving Credit Facility due 2024 | |||
Principal components: | |||
Total principal outstanding | 1,025,000 | 1,285,000 | |
Deferred financing costs | $ 24,900 | 22,200 | |
9.00% Second Lien Senior Secured Notes due 2025 | |||
Principal components: | |||
Debt instrument, interest rate, stated (as a percent) | 9.00% | ||
Total principal outstanding | $ 300,000 | 0 | |
Premium on senior unsecured notes, net of accumulated amortization | (35,270) | 0 | |
6.25% Senior Notes due 2023 | |||
Principal components: | |||
Debt instrument, interest rate, stated (as a percent) | 6.25% | ||
Total principal outstanding | 650,000 | 650,000 | |
Premium on senior unsecured notes, net of accumulated amortization | $ 3,818 | 4,838 | |
6.25% Senior Notes due 2023 | Unsecured debt | |||
Principal components: | |||
Debt instrument, interest rate, stated (as a percent) | 6.25% | 6.25% | |
6.125% Senior Notes due 2024 | |||
Principal components: | |||
Debt instrument, interest rate, stated (as a percent) | 6.125% | ||
Total principal outstanding | $ 600,000 | 600,000 | |
Premium on senior unsecured notes, net of accumulated amortization | $ 4,500 | 5,344 | |
6.125% Senior Notes due 2024 | Unsecured debt | |||
Principal components: | |||
Debt instrument, interest rate, stated (as a percent) | 6.125% | ||
8.25% Senior Notes due 2025 | |||
Principal components: | |||
Total principal outstanding | $ 250,000 | 250,000 | |
Premium on senior unsecured notes, net of accumulated amortization | $ 4,571 | 5,286 | |
8.25% Senior Notes due 2025 | Unsecured debt | |||
Principal components: | |||
Debt instrument, interest rate, stated (as a percent) | 8.25% | ||
6.375% Senior Unsecured Notes due 2026 | |||
Principal components: | |||
Total principal outstanding | $ 400,000 | $ 400,000 | |
6.375% Senior Unsecured Notes due 2026 | Unsecured debt | |||
Principal components: | |||
Debt instrument, interest rate, stated (as a percent) | 6.375% |
Borrowings (Narrative) (Details) - USD ($) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
May 07, 2020 |
Sep. 30, 2020 |
Dec. 31, 2021 |
Dec. 31, 2019 |
Oct. 03, 2016 |
|
Line of Credit Facility [Line Items] | ||||||
Total principal outstanding | $ 3,225,000,000 | $ 3,225,000,000 | $ 3,185,000,000 | |||
Period prior to maturity | 182 days | |||||
Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Outstanding principal amount of issuance | 100,000,000.0 | $ 100,000,000.0 | ||||
New Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility borrowing base | 1,600,000,000 | $ 1,700,000,000 | 1,600,000,000 | |||
Increase limit | $ 1,600,000,000 | |||||
Total principal outstanding | $ 1,030,000,000.00 | $ 1,030,000,000.00 | ||||
Interest rate at period end (as a percent) | 2.93% | 2.93% | ||||
Letters of credit outstanding | $ 24,200,000 | $ 24,200,000 | ||||
Extinguishment of debt | 288,600,000 | |||||
Reduction in commitments due to issuance of notes | 1,600,000,000 | 1,600,000,000 | ||||
New Credit Facility | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument interest rate (as a percent) | 1.00% | |||||
New Credit Facility | Federal Funds Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument interest rate (as a percent) | 0.50% | |||||
New Credit Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage ratio | 300.00% | |||||
Unused capacity, commitment fee (as a percent) | 0.50% | |||||
New Credit Facility | Maximum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument interest rate (as a percent) | 2.00% | |||||
New Credit Facility | Maximum | Eurodollar | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument interest rate (as a percent) | 3.00% | |||||
New Credit Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage ratio | 100.00% | |||||
Unused capacity, commitment fee (as a percent) | 0.375% | |||||
New Credit Facility | Minimum | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument interest rate (as a percent) | 1.00% | |||||
New Credit Facility | Minimum | Eurodollar | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument interest rate (as a percent) | 2.00% | |||||
6.25% Senior Notes due 2023 | ||||||
Line of Credit Facility [Line Items] | ||||||
Total principal outstanding | $ 650,000,000 | $ 650,000,000 | 650,000,000 | |||
Debt instrument, interest rate, stated (as a percent) | 6.25% | |||||
6.25% Senior Notes due 2023 | Unsecured debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, interest rate, stated (as a percent) | 6.25% | 6.25% | 6.25% | |||
6.125% Senior Notes due 2024 | ||||||
Line of Credit Facility [Line Items] | ||||||
Total principal outstanding | $ 600,000,000 | $ 600,000,000 | 600,000,000 | |||
Debt instrument, interest rate, stated (as a percent) | 6.125% | |||||
6.125% Senior Notes due 2024 | Unsecured debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, interest rate, stated (as a percent) | 6.125% | 6.125% | ||||
9.00% Second Lien Senior Secured Notes due 2025 | ||||||
Line of Credit Facility [Line Items] | ||||||
Total principal outstanding | $ 300,000,000 | $ 300,000,000 | $ 0 | |||
Debt instrument, interest rate, stated (as a percent) | 9.00% | 9.00% | ||||
Debt instrument aggregate principal amount | $ 300,000,000.0 | $ 400,000,000.0 | $ 300,000,000.0 | |||
First Amendment to the Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount of cash held to lesser | $ 125,000,000.0 | |||||
Percent of borrowing base | 7.50% | |||||
Period required for entering into and maintain minimum hedges | 12 months | |||||
First Amendment to the Credit Agreement | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Increase in applicable margins | 0.75% | |||||
First Amendment to the Credit Agreement | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Increase in applicable margins | 0.75% | |||||
First Amendment to the Credit Agreement | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Total funded debt to EBITDAX ratio | 400.00% | |||||
Leverage ratio | 100.00% | |||||
Leverage ratio for certain investments and cash distributions | 250.00% | |||||
First Amendment to the Credit Agreement | Maximum | Forecast | ||||||
Line of Credit Facility [Line Items] | ||||||
Total funded debt to EBITDAX ratio | 300.00% | |||||
First Amendment to the Credit Agreement | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Net notional volumes, percent of reasonably anticipated production | 40.00% | |||||
Mortgage and title coverage as percent of total value of proved oil and gas properties | 90.00% | |||||
Second Amendment to the Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility borrowing base | $ 1,700,000,000 | $ 1,700,000,000 |
Borrowings (Second Lien Notes and Warrants) (Details) - USD ($) |
Sep. 30, 2020 |
May 07, 2020 |
---|---|---|
Debt Instrument, Redemption [Line Items] | ||
Warrants, term | 5 years | |
Warrant, exercise price (in dollars per share) | $ 5.60 | |
Consideration | $ 294,000,000.0 | |
Minimum | ||
Debt Instrument, Redemption [Line Items] | ||
Outstanding principal amount of issuance | $ 100,000,000.0 | |
Common Stock | ||
Debt Instrument, Redemption [Line Items] | ||
Number of securities called by warrants (in warrants) | 7,300,000 | |
9.00% Second Lien Senior Secured Notes due 2025 | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument aggregate principal amount | $ 300,000,000.0 | $ 400,000,000.0 |
Debt instrument, interest rate, stated (as a percent) | 9.00% | |
New Credit Facility | ||
Debt Instrument, Redemption [Line Items] | ||
Extinguishment of debt | $ 288,600,000 | |
Second Lien Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Warrants, term | 91 days | |
Number of days to closing date of equity offerings | 180 days | |
Second Lien Notes | Prior to October 1, 2021, a Redemption of up to 35% of the Principal | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument redemption price percent (as a percent) | 109.00% | |
Second Lien Notes | Prior to July 1, 2021, a Redemption of All or Part of the Principal | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument redemption price percent (as a percent) | 100.00% | |
Second Lien Notes | On or After October 1, 2022, but Before October 1, 2023 | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument redemption price percent (as a percent) | 105.00% | |
Second Lien Notes | On or After October 1, 2023, but Before October 1, 2024 | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument redemption price percent (as a percent) | 102.50% | |
Second Lien Notes | Upon the occurrence of certain change of control events | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument redemption price percent (as a percent) | 100.00% | |
Second Lien Notes | If the Company is Required to Repurchase | ||
Debt Instrument, Redemption [Line Items] | ||
Debt instrument redemption price percent (as a percent) | 101.00% | |
Second Lien Notes | Minimum | ||
Debt Instrument, Redemption [Line Items] | ||
Outstanding principal amount of issuance | $ 100,000,000.0 | |
Second Lien Notes | Maximum | Prior to October 1, 2021, a Redemption of up to 35% of the Principal | ||
Debt Instrument, Redemption [Line Items] | ||
Percentage of principal amount redeemed | 35.00% | |
Second Lien Notes | Maximum | Prior to July 1, 2021, a Redemption of All or Part of the Principal | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption principal amount percentage (as a percent) | 65.00% |
Borrowings (Assumptions at Issuance Date) (Details) |
Sep. 30, 2020 |
---|---|
Exercise price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement input | 5.60 |
Expected term (in years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement input | 5.0 |
Expected volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement input | 1.163 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement input | 0.003 |
Dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Measurement input | 0 |
Borrowings (Restrictive Covenants) (Details) - New Credit Facility |
May 07, 2020 |
---|---|
Maximum | |
Debt Instrument [Line Items] | |
Leverage ratio | 300.00% |
Minimum | |
Debt Instrument [Line Items] | |
Leverage ratio | 100.00% |
Derivative Instruments and Hedging Activities (Narrative) (Details) - Acquired Contingent Consideration |
Sep. 30, 2020
$ / bbl
$ / MMBTU
|
Jan. 31, 2020
USD ($)
|
---|---|---|
Derivative [Line Items] | ||
Contingent payment received | $ | $ 10,000,000.0 | |
Aggregate settlements limit | $ | $ 13,000,000.0 | |
Minimum | ||
Derivative [Line Items] | ||
Threshold | $ / bbl | 53.00 | |
Weighted average price (in dollars per share) | $ / MMBTU | 3.18 | |
Maximum | ||
Derivative [Line Items] | ||
Threshold | $ / bbl | 60.00 | |
Weighted average price (in dollars per share) | $ / MMBTU | 3.30 |
Derivative Instruments and Hedging Activities (Contingent Consideration Arrangement) (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
$ / bbl
|
Jan. 31, 2020
USD ($)
|
---|---|---|
Actual Settlement 2019 | ||
Derivative [Line Items] | ||
Threshold | $ / bbl | 65 | |
Remaining Potential Settlements 2020-2021 | ||
Derivative [Line Items] | ||
Threshold | $ / bbl | 65 | |
Divestiture, Ranger | ||
Derivative [Line Items] | ||
Divestiture Date Fair Value | $ 8,512 | |
Payment to be presented in cash flows | 8,500 | |
Remaining potential settlements, receipts in future years | 41,700 | |
Divestiture, Ranger | Actual Settlement 2019 | ||
Derivative [Line Items] | ||
Contingent Receipt - Annual | 0 | |
Contingent Receipt - Annual | 0 | |
Divestiture, Ranger | Remaining Potential Settlements 2020-2021 | ||
Derivative [Line Items] | ||
Contingent Receipt - Annual | 9,000 | |
Contingent Receipt - Annual | 20,833 | |
Remaining Contingent Receipt - Aggregate Limit | 41,666 | |
Merger, Contingent ExL Consideration | ||
Derivative [Line Items] | ||
Payment to be presented in cash flows | 19,200 | |
Acquisition Date Fair Value | $ (69,171) | |
Contingent payment made | $ 50,000 | |
Remaining potential settlements, payments in future years | $ 25,000 | |
Merger, Contingent ExL Consideration | Actual Settlement 2019 | ||
Derivative [Line Items] | ||
Threshold | $ / bbl | 50.00 | |
Contingent Payment - Annual | $ (50,000) | |
Merger, Contingent ExL Consideration | Remaining Potential Settlements 2020-2021 | ||
Derivative [Line Items] | ||
Threshold | $ / bbl | 50.00 | |
Contingent Payment - Annual | $ (25,000) | |
Remaining Contingent Payments - Aggregate Limit | $ (25,000) |
Derivative Instruments and Hedging Activities (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair value of derivatives - current | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | $ 34,362 | $ 43,567 |
Effects of Netting | (24,541) | (17,511) |
As Presented with Effects of Netting | 9,821 | 26,056 |
Fair value of derivatives - current | Contingent Consideration Arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 0 | 16,718 |
Effects of Netting | 0 | 0 |
As Presented with Effects of Netting | 0 | 16,718 |
Fair value of derivatives - current | Contingent consideration arrangement | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 34,362 | 26,849 |
Effects of Netting | (24,541) | (17,511) |
As Presented with Effects of Netting | 9,821 | 9,338 |
Other assets, net | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 6,778 | 9,216 |
Effects of Netting | (5,457) | 0 |
As Presented with Effects of Netting | 1,321 | 9,216 |
Other assets, net | Contingent Consideration Arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 1,089 | 9,216 |
Effects of Netting | 0 | 0 |
As Presented with Effects of Netting | 1,089 | 9,216 |
Other assets, net | Contingent consideration arrangement | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 5,689 | 0 |
Effects of Netting | (5,457) | 0 |
As Presented with Effects of Netting | 232 | 0 |
Fair value of derivatives - current | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (59,491) | (88,708) |
Effects of Netting | 24,541 | 17,511 |
As Presented with Effects of Netting | (34,950) | (71,197) |
Fair value of derivatives - current | Contingent Consideration Arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (3) | (50,000) |
Effects of Netting | 0 | 0 |
As Presented with Effects of Netting | (3) | (50,000) |
Fair value of derivatives - current | Contingent consideration arrangement | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (59,488) | (38,708) |
Effects of Netting | 24,541 | 17,511 |
As Presented with Effects of Netting | (34,947) | (21,197) |
Fair value of derivatives - non current | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (41,162) | (32,695) |
Effects of Netting | 5,457 | 0 |
As Presented with Effects of Netting | (35,705) | (32,695) |
Fair value of derivatives - non current | Warrant liability | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (23,909) | |
Effects of Netting | 0 | |
As Presented with Effects of Netting | (23,909) | |
Fair value of derivatives - non current | Contingent Consideration Arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (4,058) | (19,760) |
Effects of Netting | 0 | 0 |
As Presented with Effects of Netting | (4,058) | (19,760) |
Fair value of derivatives - non current | Contingent consideration arrangement | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (13,195) | (12,935) |
Effects of Netting | 5,457 | 0 |
As Presented with Effects of Netting | $ (7,738) | $ (12,935) |
Derivative Instruments and Hedging Activities (Schedule of Gain or Loss on Derivative Contracts) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on derivative contracts | $ (27,038) | $ 21,809 | $ 97,966 | $ (31,415) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on derivative contracts | 27,038 | (21,809) | (97,966) | 31,415 |
Not Designated as Hedging Instrument | (Gain) loss on contingent consideration arrangements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on derivative contracts | 715 | 4,236 | (855) | 923 |
Not Designated as Hedging Instrument | Commodity - Oil | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on derivative contracts | 16,606 | (24,722) | (118,348) | 34,798 |
Not Designated as Hedging Instrument | Commodity - Natural gas | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on derivative contracts | 7,296 | (1,323) | 18,819 | (4,306) |
Not Designated as Hedging Instrument | Commodity - Natural gas liquids | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on derivative contracts | $ 2,421 | $ 0 | $ 2,418 | $ 0 |
Derivative Instruments and Hedging Activities (Schedule of Cash Paid (Received)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Cash flows from operating activities | ||||
Cash (paid) received for commodity derivative settlements | $ 453 | $ 1,011 | $ 101,754 | $ (436) |
Not Designated as Hedging Instrument | (Gain) loss on contingent consideration arrangements | ||||
Cash flows from investing activities | ||||
Cash paid for settlements of contingent consideration arrangements, net | 0 | 0 | (40,000) | 0 |
Commodity - Oil | Not Designated as Hedging Instrument | ||||
Cash flows from operating activities | ||||
Cash (paid) received for commodity derivative settlements | 2,130 | (1,045) | 100,823 | (7,048) |
Commodity - Natural gas | Not Designated as Hedging Instrument | ||||
Cash flows from operating activities | ||||
Cash (paid) received for commodity derivative settlements | $ (1,677) | $ 2,056 | $ 931 | $ 6,612 |
Derivative Instruments and Hedging Activities (Schedule of Outstanding Oil and Natural Gas Derivative Contracts) (Details) - Forecast - Not Designated as Hedging Instrument |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2022
MMBTU
bbl
|
Jun. 30, 2022
bbl
|
Dec. 31, 2020
MMBTU
$ / bbl
$ / MMBTU
bbl
|
Dec. 31, 2020
$ / bbl
$ / MMBTU
bbl
|
Dec. 31, 2021
$ / MMBTU
$ / bbl
|
|
Commodity - Oil | Call option | Short | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 4,825,300 | 460,000 | |||
Weighted average price (in dollars per share) | 55.00 | 55.00 | 63.62 | ||
Commodity - Oil | Call option | Long | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 0 | 460,000 | |||
Weighted average price (in dollars per share) | $ / bbl | 67.50 | 67.50 | 0 | ||
Commodity - Oil | Put option | Short | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 0 | 552,000 | |||
Weighted average price (in dollars per share) | $ / bbl | 42.50 | 42.50 | 0 | ||
Commodity - Oil | Collar Contracts | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 4,653,750 | 1,501,440 | |||
Commodity - Oil | Collar Contracts | Call option | Short | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | $ / bbl | 45.00 | 45.00 | 45.31 | ||
Commodity - Oil | Collar Contracts | Put option | Long | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | $ / bbl | 35.00 | 35.00 | 40.00 | ||
Commodity - Oil | Oil contracts (Brent ICE) | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 730,000 | 0 | |||
Commodity - Oil | Oil contracts (Brent ICE) | Call option | Short | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | $ / bbl | 0 | 0 | 50.00 | ||
Commodity - Oil | Oil contracts (Brent ICE) | Put option | Long | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | $ / bbl | 0 | 0 | 45.00 | ||
Commodity - Oil | Swap contracts | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 1,377,000 | 2,496,880 | |||
Weighted average price (in dollars per share) | 42.10 | 42.10 | 42.00 | ||
Commodity - Oil | Swap contracts | Call option | Short | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 730,000 | 0 | |||
Weighted average price (in dollars per share) | 0 | 0 | 47.00 | ||
Commodity - Oil | Swap contracts | Oil contracts (Brent ICE) | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 1,272,450 | 0 | |||
Weighted average price (in dollars per share) | $ / bbl | 0 | 0 | 38.24 | ||
Commodity - Oil | Swap contracts | Oil contracts (Midland basis differential) | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 3,022,900 | 1,380,000 | |||
Weighted average price (in dollars per share) | $ / bbl | 0.26 | ||||
Weighted average price (in dollars per share) | $ / bbl | (1.89) | (1.89) | |||
Commodity - Oil | Swap contracts | Oil contracts (Argus Houston MEH basis differential) | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 0 | 1,435,202 | |||
Weighted average price (in dollars per share) | 0.03 | 0.03 | 0 | ||
Commodity - Oil | Swap contracts | Oil contracts (Argus Houston MEH swaps) | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 2,969,050 | 0 | |||
Weighted average price (in dollars per share) | 0 | 0 | 39.48 | ||
Commodity - Natural gas | Call option | Short | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | 3.50 | 3.50 | 3.09 | ||
Total volume (MMBtu) | MMBTU | 7,300,000 | 2,013,000 | |||
Commodity - Natural gas | Collar contracts (three-way collars) | |||||
Derivative [Line Items] | |||||
Total volume (MMBtu) | MMBTU | 1,350,000 | 1,525,000 | |||
Commodity - Natural gas | Collar contracts (three-way collars) | Call option | Short | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | 2.72 | 2.72 | 2.70 | ||
Commodity - Natural gas | Collar contracts (three-way collars) | Put option | Short | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | 2.00 | 2.00 | 2.00 | ||
Commodity - Natural gas | Collar contracts (three-way collars) | Put option | Long | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | 2.45 | 2.45 | 2.42 | ||
Commodity - Natural gas | Collar contracts (two-way collars) | |||||
Derivative [Line Items] | |||||
Total volume (MMBtu) | MMBTU | 9,550,000 | 1,525,000 | |||
Commodity - Natural gas | Collar contracts (two-way collars) | Call option | Short | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | 3.25 | 3.25 | 3.04 | ||
Commodity - Natural gas | Collar contracts (two-way collars) | Put option | Long | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | 2.67 | 2.67 | 2.59 | ||
Commodity - Natural gas | Swap contracts | |||||
Derivative [Line Items] | |||||
Weighted average price (in dollars per share) | 2.05 | 2.05 | 2.60 | ||
Total volume (MMBtu) | MMBTU | 11,123,000 | 1,633,000 | |||
Commodity - Natural gas | Swap contracts | Waha Basis Differential | |||||
Derivative [Line Items] | |||||
Total volume (MMBtu) | MMBTU | 12,775,000 | 4,421,000 | |||
Weighted average price (in dollars per share) | (0.91) | (0.91) | (0.47) | ||
Commodity - Natural gas liquids | Swap contracts | NGL contracts (OPIS Mont Belvieu Purity Ethane) | |||||
Derivative [Line Items] | |||||
Total volume (Bbls) | bbl | 1,825,000 | 0 | |||
Weighted average price (in dollars per share) | 0 | 0 | 7.62 |
Fair Value Measurements (Summary of Financial Instruments at Carrying and Fair Value) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
Oct. 03, 2016 |
---|---|---|---|
6.25% Senior Notes due 2023 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated (as a percent) | 6.25% | ||
6.125% Senior Notes due 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated (as a percent) | 6.125% | ||
9.00% Second Lien Senior Secured Notes due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated (as a percent) | 9.00% | ||
Unsecured debt | 6.25% Senior Notes due 2023 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated (as a percent) | 6.25% | 6.25% | |
Unsecured debt | 6.125% Senior Notes due 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated (as a percent) | 6.125% | ||
Unsecured debt | 8.25% Senior Notes due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated (as a percent) | 8.25% | ||
Unsecured debt | 6.375% Senior Unsecured Notes due 2026 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate, stated (as a percent) | 6.375% | ||
Carrying Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | $ 1,900,000 | $ 1,900,000 | |
Carrying Value | Level 2 | Unsecured debt | 6.25% Senior Notes due 2023 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 650,000 | 650,000 | |
Carrying Value | Level 2 | Unsecured debt | 6.125% Senior Notes due 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 600,000 | 600,000 | |
Carrying Value | Level 2 | Unsecured debt | 8.25% Senior Notes due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 250,000 | 250,000 | |
Carrying Value | Level 2 | Unsecured debt | 6.375% Senior Unsecured Notes due 2026 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 400,000 | 400,000 | |
Carrying Value | Level 3 | 9.00% Second Lien Senior Secured Notes due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | 300,000 | 0 | |
Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | 745,500 | 1,930,929 | |
Fair Value | Level 2 | Unsecured debt | 6.25% Senior Notes due 2023 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 273,000 | 658,125 | |
Fair Value | Level 2 | Unsecured debt | 6.125% Senior Notes due 2024 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 240,000 | 611,130 | |
Fair Value | Level 2 | Unsecured debt | 8.25% Senior Notes due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 92,500 | 256,250 | |
Fair Value | Level 2 | Unsecured debt | 6.375% Senior Unsecured Notes due 2026 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | 140,000 | 405,424 | |
Fair Value | Level 3 | 9.00% Second Lien Senior Secured Notes due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total | $ 260,966 | $ 0 |
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring Basis - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Level 1 | ||
Assets | ||
Derivative financial instruments | $ 0 | $ 0 |
Contingent consideration arrangements | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration arrangements | 0 | 0 |
Net Derivative Fair Value | 0 | 0 |
Level 2 | ||
Assets | ||
Derivative financial instruments | 10,053 | 9,338 |
Contingent consideration arrangements | 1,089 | 25,934 |
Liabilities | ||
Derivative financial instruments | (42,685) | (34,132) |
Contingent consideration arrangements | (4,061) | (69,760) |
Net Derivative Fair Value | (35,604) | (68,620) |
Level 3 | ||
Assets | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration arrangements | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration arrangements | 0 | 0 |
Net Derivative Fair Value | $ 0 | $ 0 |
Fair Value Measurements (Fair Value of Warrant Liabilities Measured on Recurring Basis) (Details) - Level 3 - Warrant liability $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning of period | $ 0 |
Recognition of issuance date fair value | 23,909 |
Gain (loss) on changes in fair value | 0 |
Transfers into (out of) Level 3 | 0 |
End of period | $ 23,909 |
Income Taxes (Schedule) (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Income tax provision computed at statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
State taxes net of federal expense | 1.00% | 1.00% | 1.00% | 1.00% |
Section 162(m) | 0.00% | 0.00% | 0.00% | 0.00% |
Effective income tax rate, before discrete items | 22.00% | 22.00% | 22.00% | 22.00% |
Valuation allowance | (22.00%) | 0.00% | (28.00%) | 0.00% |
Other discrete items | 0.00% | 2.00% | 0.00% | 2.00% |
Effective income tax rate, after discrete items | 0.00% | 24.00% | (6.00%) | 24.00% |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, valuation allowance | $ 520,800 | |
Deferred tax asset | 0 | $ 115,720 |
Business Acquisition [Line Items] | ||
Operating loss carryforwards | 897,000 | |
Operating loss carryforwards, subject to expiration | 496,500 | |
Operating loss carryforwards, not subject to expiration | 400,500 | |
Carrizo Oil & Gas, Inc. | ||
Business Acquisition [Line Items] | ||
Operating loss carryforwards | $ 288,200 |
Share-based Compensation (Narrative) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
TSR, maximum percent of performance period | 5.00% | 5.00% | |||
Vested (in shares) | (14,000) | (17,000) | (120,000) | (96,000) | |
Grant date fair value | $ 100,000 | $ 800,000 | $ 1,400,000 | $ 6,800,000 | |
Unrecognized compensation costs | 16,400,000 | $ 16,400,000 | |||
Period for recognition | 1 year 10 months 24 days | ||||
RSUs | Vesting Percentage, Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 0.00% | 0.00% | |||
RSUs | Vesting Percentage, Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 300.00% | 200.00% | |||
Performance-based Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested (in shares) | 0 | ||||
Grant date fair value | $ 0 | $ 0 | $ 3,400,000 | $ 4,300,000 | |
Performance-based Equity Awards | Vesting Percentage, Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 0.00% | 0.00% | |||
Performance-based Equity Awards | Vesting Percentage, Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 300.00% | 200.00% | |||
Cash-Settled RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested (in shares) | (1,000) | 0 | (3,000) | (2,000) | |
Unrecognized compensation costs | $ 500,000 | $ 500,000 | |||
Period for recognition | 2 years | ||||
Award vesting period | 3 years | ||||
2020 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock available for grant (in shares) | 1,967,782 | 1,967,782 |
Share-based Compensation (RSU Equity Awards (Details) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Aug. 07, 2020 |
Sep. 30, 2020
USD ($)
$ / shares
shares
|
Sep. 30, 2019
USD ($)
$ / shares
shares
|
Jun. 30, 2020
$ / shares
shares
|
Sep. 30, 2020
USD ($)
$ / shares
shares
|
Sep. 30, 2019
USD ($)
$ / shares
shares
|
|
Weighted Average Grant Date Fair Value | ||||||
Stock split, conversion ratio | 0.1 | |||||
RSUs | ||||||
RSU Equity Awards | ||||||
Unvested, beginning of the period (in shares) | 719,000 | 305,000 | 269,000 | 269,000 | 210,000 | |
Granted (in shares) | 6,000 | 0 | 562,000 | 188,000 | ||
Vested (in shares) | (14,000) | (17,000) | (120,000) | (96,000) | ||
Forfeited (in shares) | (12,000) | (8,000) | (12,000) | (22,000) | ||
Unvested, end of the period (in shares) | 699,000 | 280,000 | 719,000 | 699,000 | 280,000 | |
Weighted Average Grant Date Fair Value | ||||||
Unvested, beginning of the period (in dollars per share) | $ / shares | $ 39.99 | $ 105.86 | $ 102.48 | $ 102.48 | $ 130.39 | |
Granted (in dollars per share) | $ / shares | 9.35 | 0 | 21.07 | 85.89 | ||
Vested (in dollars per share) | $ / shares | 99.88 | 131.20 | 100.19 | 124.24 | ||
Forfeited (in dollars per share) | $ / shares | 46.51 | 110.81 | 46.51 | 116.20 | ||
Unvested, end of the period (in dollars per share) | $ / shares | $ 38.46 | $ 104.17 | $ 39.99 | $ 38.46 | $ 104.17 | |
Grant date fair value | $ | $ 0.1 | $ 0.8 | $ 1.4 | $ 6.8 | ||
RSUs | Vesting Percentage Range of 0 and 300 | ||||||
RSU Equity Awards | ||||||
Granted (in shares) | 111,200 | |||||
RSUs | Vesting Percentage Range of 0 and 200 | ||||||
RSU Equity Awards | ||||||
Granted (in shares) | 0 | 0 | 38,800 | |||
RSUs | Vesting Percentage, Minimum | ||||||
Weighted Average Grant Date Fair Value | ||||||
Award vesting rights | 0.00% | 0.00% | ||||
RSUs | Vesting Percentage, Maximum | ||||||
Weighted Average Grant Date Fair Value | ||||||
Award vesting rights | 300.00% | 200.00% |
Share-based Compensation (Fair Value Inputs) (Details) - Performance-Based Cash-Settled RSUs |
1 Months Ended | ||
---|---|---|---|
Jun. 29, 2020 |
Jan. 31, 2020 |
Jan. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years 6 months | 2 years 10 months 24 days | 2 years 10 months 24 days |
Expected volatility | 113.20% | 54.80% | 47.90% |
Risk-free interest rate | 0.20% | 1.30% | 2.40% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Share-based Compensation (Cash-Settled RSU Awards) (Details) shares in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Aug. 07, 2020 |
Sep. 30, 2020
$ / shares
shares
|
Sep. 30, 2019
$ / shares
shares
|
Sep. 30, 2020
$ / shares
shares
|
Sep. 30, 2019
$ / shares
shares
|
|
Weighted Average Grant Date Fair Value | |||||
Stock split, conversion ratio | 0.1 | ||||
Cash-Settled RSUs | |||||
Cash-Settled RSU Awards | |||||
Unvested, beginning of the period (in shares) | shares | 208 | 103 | 86 | 66 | |
Granted (in shares) | shares | 0 | 0 | 125 | 44 | |
Vested (in shares) | shares | (1) | 0 | (3) | (2) | |
Did not vest at end of performance period (in shares) | shares | (2) | 0 | (3) | 0 | |
Forfeited (in shares) | shares | 0 | (3) | 0 | (8) | |
Unvested, end of the period (in shares) | shares | 205 | 100 | 205 | 100 | |
Weighted Average Grant Date Fair Value | |||||
Unvested, beginning of the period (in dollars per share) | $ / shares | $ 67.20 | $ 129.67 | $ 124.22 | $ 147.59 | |
Granted (in dollars per share) | $ / shares | 0 | 0 | 29.76 | 105.08 | |
Vested (in dollars per share) | $ / shares | 131.54 | 0 | 130.12 | 108.10 | |
Did not vest at end of performance period (in dollars per share) | $ / shares | 133.95 | 0 | 148.81 | 0 | |
Forfeited (in dollars per share) | $ / shares | 0 | 132.86 | 0 | 145.65 | |
Unvested, end of the period (in dollars per share) | $ / shares | $ 66.28 | $ 129.58 | $ 66.28 | $ 129.58 |
Share-based Compensation (Summary of Liability for Cash-Settled RSU Awards) (Details) - Cash-Settled RSUs - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Other current liabilities | $ 49 | $ 966 |
Other long-term liabilities | 275 | 2,089 |
Total Cash-Settled RSU Awards | $ 324 | $ 3,055 |
Share-based Compensation (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense (benefit), net | $ 1,438 | $ 1,533 | $ 3,557 | $ 11,270 |
Less: amounts capitalized to oil and gas properties | (1,532) | (866) | (3,862) | (3,170) |
Total share-based compensation expense (benefit), net | (94) | 667 | (305) | 8,100 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense (benefit), net | 3,009 | 2,649 | 10,169 | 11,032 |
Cash-Settled RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense (benefit), net | (566) | (1,116) | (1,966) | 238 |
Cash SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense (benefit), net | $ (1,005) | $ 0 | $ (4,646) | $ 0 |
Stockholders’ Equity (Details) |
Aug. 07, 2020
shares
|
Sep. 30, 2020
shares
|
Aug. 06, 2020
shares
|
Dec. 31, 2019
shares
|
---|---|---|---|---|
Equity [Abstract] | ||||
Stock split, conversion ratio | 0.1 | |||
Common stock, shares outstanding (in shares) | 39,746,967 | 39,749,985 | 397,479,684 | 39,659,001 |
Common stock, shares authorized (in shares) | 52,500,000 | 52,500,000 | 525,000,000 | 52,500,000 |
Leases (Cost) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
ROU assets obtained in exchange for lease liabilities: | ||||
Finance lease costs | $ 252,000 | $ 0 | $ 1,380,000 | $ 0 |
Amortization of right-of-use assets | 233,000 | 0 | 1,253,000 | 0 |
Interest on lease liabilities | 19,000 | 0 | 127,000 | 0 |
Operating lease costs | 9,347,000 | 7,964,000 | 39,251,000 | 27,122,000 |
Impairment of Operating lease ROU assets | 0 | 0 | 3,575,000 | 0 |
Short-term lease costs | 19,000 | 293,000 | 1,736,000 | 3,640,000 |
Variable lease costs | 116,000 | 0 | 190,000 | 0 |
Total lease costs | 9,734,000 | 8,257,000 | 46,132,000 | 30,762,000 |
Capitalized exploratory well costs | 6,100,000 | $ 7,600,000 | 29,700,000 | $ 21,500,000 |
Carrizo Oil & Gas, Inc. | ||||
ROU assets obtained in exchange for lease liabilities: | ||||
Impairment of Operating lease ROU assets | $ 0 | $ 3,600,000 |
Leases (Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating leases: | ||
Operating lease right-of-use assets | $ 29,519 | $ 63,908 |
Operating lease liabilities | 19,458 | 42,858 |
Operating lease liabilities | 28,906 | 37,088 |
Total operating lease liabilities | 48,364 | 79,946 |
Financing leases: | ||
Other property and equipment | 1,285 | 2,197 |
Accumulated depreciation | (395) | (82) |
Other property and equipment, net | 890 | 2,115 |
Current financing lease liabilities | 321 | 1,334 |
Long-term financing lease liabilities | 543 | 807 |
Total financing lease liabilities | $ 864 | $ 2,141 |
Leases (Lease Term and Discount Rate) (Details) |
Sep. 30, 2020 |
---|---|
Weighted Average Remaining Lease Term (In years) | |
Operating leases | 5 years 7 months 6 days |
Financing leases | 3 years 1 month 6 days |
Weighted Average Discount Rate | |
Operating leases | 5.50% |
Financing leases | 6.80% |
Leases (Maturities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2020 | $ 8,375 | |
2021 | 14,777 | |
2022 | 5,438 | |
2023 | 5,011 | |
2024 | 4,935 | |
Thereafter | 18,098 | |
Total lease payments | 56,634 | |
Less imputed interest | (8,270) | |
Total operating lease liabilities | 48,364 | $ 79,946 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2020 | 120 | |
2021 | 314 | |
2022 | 250 | |
2023 | 233 | |
2024 | 39 | |
Thereafter | 0 | |
Total lease payments | 956 | |
Less imputed interest | (92) | |
Total financing lease liabilities | $ 864 | $ 2,141 |
Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 114,304 | $ 210,999 |
Allowance for doubtful accounts | (1,768) | (1,536) |
Total accounts receivable, net | 112,536 | 209,463 |
Joint interest receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 15,700 | 39,114 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 17,240 | 6,610 |
Oil and natural gas receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 81,364 | $ 165,275 |
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accounts payable | $ 104,665 | $ 217,578 |
Revenues payable | 148,387 | 145,816 |
Accrued capital expenditures | 27,875 | 61,950 |
Accrued interest | 49,370 | 36,295 |
Accrued severance | 2,682 | 28,803 |
Total accounts payable and accrued liabilities | $ 332,979 | $ 490,442 |
Supplemental Cash Flow (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Supplemental cash flow information: | ||
Interest paid, net of capitalized amounts | $ 62,414 | $ 0 |
Income taxes paid | 0 | 0 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 35,919 | 1,667 |
Investing cash flows from operating leases | 16,956 | 25,455 |
Non-cash investing and financing activities: | ||
Change in accrued capital expenditures | (72,782) | (15,032) |
Change in asset retirement costs | 1,208 | (393) |
ROU assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 10,475 | $ 2,588 |
Subsequent Events (Hedging) (Details) - Not Designated as Hedging Instrument |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|---|
Nov. 03, 2020
$ / bbl
bbl
|
Mar. 31, 2022
MMBTU
bbl
|
Jun. 30, 2022
bbl
|
Dec. 31, 2020
MMBTU
$ / MMBTU
$ / bbl
bbl
|
Dec. 31, 2020
$ / MMBTU
$ / bbl
bbl
|
Dec. 31, 2021
MMBTU
$ / bbl
$ / MMBTU
bbl
|
|
Commodity - Oil | Argus WTI-Houston | Swap contracts | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Derivative, Nonmonetary Notional Amount Terminated, Volume | 1,908,675 | |||||
Terminated Derivative, Price Risk Option Strike Price | $ / bbl | 39.78 | |||||
Commodity - Oil | ICE Brent | Swap contracts | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Derivative, Nonmonetary Notional Amount Terminated, Volume | 424,150 | |||||
Terminated Derivative, Price Risk Option Strike Price | $ / bbl | 40.00 | |||||
Forecast | Commodity - Oil | Swap contracts | ||||||
Subsequent Event [Line Items] | ||||||
Total volume (Bbls) | 1,377,000 | 2,496,880 | ||||
Weighted average price (in dollars per share) | $ / MMBTU | 42.10 | 42.10 | 42.00 | |||
Forecast | Commodity - Oil | Short | Call option | ||||||
Subsequent Event [Line Items] | ||||||
Total volume (Bbls) | 4,825,300 | 460,000 | ||||
Weighted average price (in dollars per share) | $ / MMBTU | 55.00 | 55.00 | 63.62 | |||
Forecast | Commodity - Oil | Short | Call option | Swap contracts | ||||||
Subsequent Event [Line Items] | ||||||
Total volume (Bbls) | 730,000 | 0 | ||||
Weighted average price (in dollars per share) | $ / MMBTU | 0 | 0 | 47.00 | |||
Forecast | Commodity - Oil | Short | Put option | ||||||
Subsequent Event [Line Items] | ||||||
Total volume (Bbls) | 0 | 552,000 | ||||
Weighted average price (in dollars per share) | $ / bbl | 42.50 | 42.50 | 0 | |||
Forecast | Commodity - Oil | Long | Call option | ||||||
Subsequent Event [Line Items] | ||||||
Total volume (Bbls) | 0 | 460,000 | ||||
Weighted average price (in dollars per share) | $ / bbl | 67.50 | 67.50 | 0 | |||
Forecast | Commodity - Oil | Collar contracts | ||||||
Subsequent Event [Line Items] | ||||||
Total volume (Bbls) | 4,769,525 | |||||
Forecast | Commodity - Oil | Collar contracts | Short | Call option | ||||||
Subsequent Event [Line Items] | ||||||
Weighted average price (in dollars per share) | $ / bbl | 48.22 | |||||
Forecast | Commodity - Oil | Collar contracts | Long | Put option | ||||||
Subsequent Event [Line Items] | ||||||
Weighted average price (in dollars per share) | $ / bbl | 38.44 | |||||
Forecast | Commodity - Natural gas | Swap contracts | ||||||
Subsequent Event [Line Items] | ||||||
Weighted average price (in dollars per share) | $ / MMBTU | 2.05 | 2.05 | 2.60 | |||
Total volume (MMBtu) | MMBTU | 11,123,000 | 1,633,000 | ||||
Forecast | Commodity - Natural gas | Short | Call option | ||||||
Subsequent Event [Line Items] | ||||||
Weighted average price (in dollars per share) | $ / MMBTU | 3.50 | 3.50 | 3.09 | |||
Total volume (MMBtu) | MMBTU | 7,300,000 | 2,013,000 | ||||
Forecast | Commodity - Natural gas | Waha basis differential | Swap contracts | ||||||
Subsequent Event [Line Items] | ||||||
Total volume (MMBtu) | MMBTU | 3,650,000 | |||||
Weighted average price (in dollars per share) | $ / MMBTU | (0.25) |
Subsequent Events (Non-operated Sale) (Details) - USD ($) $ / shares in Units, shares in Thousands |
Nov. 02, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Oct. 03, 2016 |
---|---|---|---|---|
Subsequent Event [Line Items] | ||||
Warrants, term | 5 years | |||
Warrant, exercise price (in dollars per share) | $ 5.60 | |||
Total principal outstanding | $ 3,225,000,000 | $ 3,185,000,000 | ||
6.25% Senior Notes due 2023 | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated (as a percent) | 6.25% | |||
Total principal outstanding | $ 650,000,000 | 650,000,000 | ||
6.25% Senior Notes due 2023 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated (as a percent) | 6.25% | 6.25% | ||
6.125% Senior Notes due 2024 | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated (as a percent) | 6.125% | |||
Total principal outstanding | $ 600,000,000 | 600,000,000 | ||
6.125% Senior Notes due 2024 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated (as a percent) | 6.125% | |||
8.25% Senior Notes due 2025 | ||||
Subsequent Event [Line Items] | ||||
Total principal outstanding | $ 250,000,000 | 250,000,000 | ||
8.25% Senior Notes due 2025 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated (as a percent) | 8.25% | |||
6.375% Senior Unsecured Notes due 2026 | ||||
Subsequent Event [Line Items] | ||||
Total principal outstanding | $ 400,000,000 | 400,000,000 | ||
6.375% Senior Unsecured Notes due 2026 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated (as a percent) | 6.375% | |||
9.00% Second Lien Senior Secured Notes due 2025 | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated (as a percent) | 9.00% | |||
Total principal outstanding | $ 300,000,000 | $ 0 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Exchanged amount | $ 286,000,000.0 | |||
Warrants to be issued (in warrants) | 1,160 | |||
Warrants, term | 5 years | |||
Warrant, exercise price (in dollars per share) | $ 5.60 | |||
Additional face amount that can be exchanged | $ 104,000,000.0 | |||
Exchange agreement warrant eligibility cap | 375,300,000 | |||
Subsequent Event | Minimum | ||||
Subsequent Event [Line Items] | ||||
Benchmark of face amount exchange to increase number of warrants to be issued | $ 286,000,000.0 | |||
Subsequent Event | Maximum | ||||
Subsequent Event [Line Items] | ||||
Warrants to be issued (in warrants) | 1,760 | |||
Subsequent Event | 6.25% Senior Notes due 2023 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Amount exchanged per $1000 | $ 650 | |||
Subsequent Event | 6.125% Senior Notes due 2024 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Amount exchanged per $1000 | 575 | |||
Subsequent Event | 8.25% Senior Notes due 2025 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Amount exchanged per $1000 | 480 | |||
Subsequent Event | 6.375% Senior Unsecured Notes due 2026 | Unsecured debt | ||||
Subsequent Event [Line Items] | ||||
Amount exchanged per $1000 | 460 | |||
Subsequent Event | 9.00% Second Lien Senior Secured Notes due 2025 | ||||
Subsequent Event [Line Items] | ||||
Total principal outstanding | $ 158,500,000 |
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