DE | 001-14039 | 64-0844345 | ||||||||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
(Address of Principal Executive Offices, and Zip Code) |
(Registrant’s Telephone Number, Including Area Code) |
(Former Name or Former Address, if Changed Since Last Report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value | CPE | NYSE |
Exhibit Number | Title of Document | |||||||
99.1 | ||||||||
99.2 |
Callon Petroleum Company | |||||||||||
(Registrant) | |||||||||||
February 26, 2024 | /s/ Kevin Haggard | ||||||||||
Kevin Haggard | |||||||||||
Senior Vice President and Chief Financial Officer |
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands except per share data) | ||||||||||||||||||||||||||
Net income | $168,975 | $119,484 | $221,868 | $401,201 | ||||||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 55,804 | 25,855 | (18,898) | ||||||||||||||||||||||
Gain (loss) on commodity derivative settlements, net | (4,638) | (9,196) | (44,380) | 11,841 | ||||||||||||||||||||||
Non-cash expense related to share-based awards | 1,889 | 3,955 | 3,615 | 11,413 | ||||||||||||||||||||||
Impairment of oil and gas properties | — | — | 2,201 | 406,898 | ||||||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | (20,570) | — | (23,476) | ||||||||||||||||||||||
Merger, integration and transaction | 4,730 | 4,925 | — | 11,198 | ||||||||||||||||||||||
Other (income) expense | (3,544) | 3,220 | (485) | (6,684) | ||||||||||||||||||||||
(Gain) loss on extinguishment of debt | — | (1,238) | 3,241 | (1,238) | ||||||||||||||||||||||
Tax effect on adjustments above (a) | 9,993 | (7,749) | 2,090 | (82,121) | ||||||||||||||||||||||
Change in valuation allowance | (22,379) | (24,690) | (40,836) | (234,201) | ||||||||||||||||||||||
Adjusted income | $109,004 | $123,945 | $173,169 | $475,933 | ||||||||||||||||||||||
Net income per diluted share | $2.51 | $1.75 | $3.59 | $6.19 | ||||||||||||||||||||||
Adjusted income per diluted share | $1.62 | $1.82 | $2.80 | $7.34 | ||||||||||||||||||||||
Basic weighted average common shares outstanding | 67,257 | 67,931 | 61,610 | 64,692 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding (GAAP) | 67,421 | 68,083 | 61,844 | 64,852 | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Net income | $168,975 | $119,484 | $221,868 | $401,201 | ||||||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 55,804 | 25,855 | (18,898) | ||||||||||||||||||||||
Gain (loss) on commodity derivative settlements, net | (4,638) | (9,196) | (44,380) | 11,841 | ||||||||||||||||||||||
Non-cash expense related to share-based awards | 1,889 | 3,955 | 3,615 | 11,413 | ||||||||||||||||||||||
Impairment of oil and gas properties | — | — | 2,201 | 406,898 | ||||||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | (20,570) | — | (23,476) | ||||||||||||||||||||||
Merger, integration and transaction | 4,730 | 4,925 | — | 11,198 | ||||||||||||||||||||||
Other (income) expense | (3,544) | 3,220 | (485) | (6,684) | ||||||||||||||||||||||
Income tax (benefit) expense | 16,590 | 509 | 7,286 | (189,808) | ||||||||||||||||||||||
Interest expense | 42,611 | 43,149 | 46,772 | 179,305 | ||||||||||||||||||||||
Depreciation, depletion and amortization | 143,750 | 138,598 | 134,735 | 535,661 | ||||||||||||||||||||||
Exploration | 1,441 | 3,588 | 2,466 | 9,143 | ||||||||||||||||||||||
(Gain) loss on extinguishment of debt | — | (1,238) | 3,241 | (1,238) | ||||||||||||||||||||||
Adjusted EBITDAX | $325,782 | $342,228 | $403,174 | $1,326,556 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Net cash provided by operating activities | $298,266 | $266,828 | $333,987 | $1,092,529 | ||||||||||||||||||||||
Changes in working capital and other | (16,255) | 26,344 | 13,781 | 40,146 | ||||||||||||||||||||||
Changes in accrued hedge settlements | 5,714 | (10,224) | 15,816 | 8,919 | ||||||||||||||||||||||
Merger, integration and transaction | 4,730 | 4,925 | — | 11,198 | ||||||||||||||||||||||
Cash flow from operations before net change in working capital | 292,455 | 287,873 | 363,584 | 1,152,792 | ||||||||||||||||||||||
Capital expenditures | 217,978 | 252,407 | 200,539 | 968,982 | ||||||||||||||||||||||
Increase (decrease) in accrued capital expenditures | (45,756) | (12,872) | (1,870) | (4,251) | ||||||||||||||||||||||
Capital expenditures before accruals | 172,222 | 239,535 | 198,669 | 964,731 | ||||||||||||||||||||||
Adjusted free cash flow | $120,233 | $48,338 | $164,915 | $188,061 |
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total debt | $1,918,655 | $1,948,619 | $2,241,295 | |||||||||||||||||
Unamortized premiums, discount, and deferred loan costs, net | 17,128 | 18,164 | 19,726 | |||||||||||||||||
Adjusted total debt | $1,935,783 | $1,966,783 | $2,261,021 | |||||||||||||||||
Less: Cash and cash equivalents | 3,325 | 3,456 | 3,395 | |||||||||||||||||
Net debt | $1,932,458 | $1,963,327 | $2,257,626 |
As of December 31, 2023 | ||||||||
(In millions) | ||||||||
Standardized measure of discounted future net cash flows | $5,434.2 | |||||||
Add: present value of future income taxes discounted at 10% per annum | $455.4 | |||||||
Total proved reserves - PV-10 | $5,889.6 | |||||||
Total proved developed reserves - PV-10 | $4,294.9 | |||||||
Total proved undeveloped reserves - PV-10 | $1,594.7 |
December 31, 2023 | December 31, 2022* | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $3,325 | $3,395 | |||||||||
Accounts receivable, net | 206,791 | 237,128 | |||||||||
Fair value of derivatives | 11,857 | 21,332 | |||||||||
Other current assets | 30,154 | 35,783 | |||||||||
Total current assets | 252,127 | 297,638 | |||||||||
Oil and natural gas properties, successful efforts accounting method: | |||||||||||
Proved properties, net | 5,086,973 | 4,851,529 | |||||||||
Unproved properties | 1,063,033 | 1,225,768 | |||||||||
Total oil and natural gas properties, net | 6,150,006 | 6,077,297 | |||||||||
Other property and equipment, net | 26,784 | 26,152 | |||||||||
Deferred income taxes | 180,963 | — | |||||||||
Other assets, net | 101,596 | 87,382 | |||||||||
Total assets | $6,711,476 | $6,488,469 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $526,446 | $536,233 | |||||||||
Fair value of derivatives | 24,147 | 16,197 | |||||||||
Other current liabilities | 96,369 | 150,384 | |||||||||
Total current liabilities | 646,962 | 702,814 | |||||||||
Long-term debt | 1,918,655 | 2,241,295 | |||||||||
Asset retirement obligations | 42,653 | 53,892 | |||||||||
Fair value of derivatives | 29,880 | 13,415 | |||||||||
Other long-term liabilities | 81,965 | 51,272 | |||||||||
Total liabilities | 2,720,115 | 3,062,688 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.01 par value, 130,000,000 shares authorized; 66,474,525 and 61,621,518 shares outstanding, respectively | 665 | 616 | |||||||||
Capital in excess of par value | 4,186,524 | 4,022,194 | |||||||||
Accumulated deficit | (195,828) | (597,029) | |||||||||
Total stockholders’ equity | 3,991,361 | 3,425,781 | |||||||||
Total liabilities and stockholders’ equity | $6,711,476 | $6,488,469 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022* | 2023 | 2022* | ||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
Oil | $427,030 | $513,734 | $1,697,026 | $2,262,647 | |||||||||||||||||||
Natural gas | 19,414 | 42,774 | 82,468 | 232,681 | |||||||||||||||||||
Natural gas liquids | 43,919 | 49,776 | 174,407 | 260,472 | |||||||||||||||||||
Sales of purchased oil and gas | 110,994 | 97,965 | 389,083 | 475,164 | |||||||||||||||||||
Total operating revenues | 601,357 | 704,249 | 2,342,984 | 3,230,964 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Lease operating | 77,948 | 74,097 | 303,363 | 290,486 | |||||||||||||||||||
Production and ad valorem taxes | 25,493 | 34,079 | 113,512 | 159,920 | |||||||||||||||||||
Gathering, transportation and processing | 27,651 | 25,285 | 108,221 | 96,902 | |||||||||||||||||||
Exploration | 1,441 | 2,466 | 9,143 | 9,703 | |||||||||||||||||||
Cost of purchased oil and gas | 113,295 | 100,338 | 399,242 | 478,445 | |||||||||||||||||||
Depreciation, depletion and amortization | 143,750 | 134,735 | 535,661 | 494,229 | |||||||||||||||||||
Impairment of oil and gas properties | — | 2,201 | 406,898 | 2,201 | |||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | — | (23,476) | — | |||||||||||||||||||
General and administrative | 28,439 | 26,511 | 115,344 | 97,996 | |||||||||||||||||||
Merger, integration and transaction | 4,730 | — | 11,198 | 769 | |||||||||||||||||||
Total operating expenses | 419,841 | 399,712 | 1,979,106 | 1,630,651 | |||||||||||||||||||
Income From Operations | 181,516 | 304,537 | 363,878 | 1,600,313 | |||||||||||||||||||
Other (Income) Expenses: | |||||||||||||||||||||||
Interest expense | 42,611 | 46,772 | 179,305 | 187,792 | |||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 25,855 | (18,898) | 330,953 | |||||||||||||||||||
(Gain) loss on extinguishment of debt | — | 3,241 | (1,238) | 45,658 | |||||||||||||||||||
Other (income) expense | (3,544) | (485) | (6,684) | 2,645 | |||||||||||||||||||
Total other (income) expense | (4,049) | 75,383 | 152,485 | 567,048 | |||||||||||||||||||
Income Before Income Taxes | 185,565 | 229,154 | 211,393 | 1,033,265 | |||||||||||||||||||
Income tax benefit (expense) | (16,590) | (7,286) | 189,808 | (13,822) | |||||||||||||||||||
Net Income | $168,975 | $221,868 | $401,201 | $1,019,443 | |||||||||||||||||||
Net Income Per Common Share: | |||||||||||||||||||||||
Basic | $2.51 | $3.60 | $6.20 | $16.54 | |||||||||||||||||||
Diluted | $2.51 | $3.59 | $6.19 | $16.47 | |||||||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 67,257 | 61,610 | 64,692 | 61,620 | |||||||||||||||||||
Diluted | 67,421 | 61,844 | 64,852 | 61,904 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022* | 2023 | 2022* | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $168,975 | $221,868 | $401,201 | $1,019,443 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation, depletion and amortization | 143,750 | 134,735 | 535,661 | 494,229 | |||||||||||||||||||
Impairment of oil and gas properties | — | 2,201 | 406,898 | 2,201 | |||||||||||||||||||
Amortization of non-cash debt related items, net | 2,811 | 2,652 | 10,790 | 12,332 | |||||||||||||||||||
Deferred income tax (benefit) expense | 18,771 | 5,198 | (187,270) | 6,308 | |||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 25,855 | (18,898) | 330,953 | |||||||||||||||||||
Cash received (paid) for commodity derivative settlements, net | (10,352) | (60,196) | 2,922 | (493,714) | |||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | — | (23,476) | — | |||||||||||||||||||
(Gain) loss on extinguishment of debt | — | 3,241 | (1,238) | 45,658 | |||||||||||||||||||
Non-cash expense related to share-based awards | 1,889 | 3,615 | 11,413 | 8,042 | |||||||||||||||||||
Other, net | 824 | (1,568) | 5,387 | 7,136 | |||||||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | 34,066 | 48,943 | 48,285 | (3,480) | |||||||||||||||||||
Other current assets | (3,284) | (3,163) | (16,462) | (15,392) | |||||||||||||||||||
Accounts payable and accrued liabilities | (13,162) | (49,394) | (82,684) | (58,043) | |||||||||||||||||||
Net cash provided by operating activities | 298,266 | 333,987 | 1,092,529 | 1,355,673 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (217,978) | (200,539) | (968,982) | (848,688) | |||||||||||||||||||
Acquisition of oil and gas properties | (9,505) | (9,700) | (287,939) | (26,706) | |||||||||||||||||||
Proceeds from sales of assets | 1,776 | 17,780 | 553,222 | 27,093 | |||||||||||||||||||
Cash paid for settlement of contingent consideration arrangement | — | — | — | (19,171) | |||||||||||||||||||
Other, net | (762) | 792 | (3,612) | 14,289 | |||||||||||||||||||
Net cash used in investing activities | (226,469) | (191,667) | (707,311) | (853,183) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Borrowings on credit facility | 883,500 | 751,000 | 3,513,000 | 3,286,000 | |||||||||||||||||||
Payments on credit facility | (914,500) | (884,000) | (3,651,000) | (3,568,000) | |||||||||||||||||||
Issuance of 7.5% Senior Notes due 2030 | — | — | — | 600,000 | |||||||||||||||||||
Redemption of 8.25% Senior Notes due 2025 | — | — | (187,238) | — | |||||||||||||||||||
Redemption of 6.125% Senior Notes due 2024 | — | — | — | (467,287) | |||||||||||||||||||
Redemption of 9.0% Second Lien Senior Secured Notes due 2025 | — | — | — | (339,507) | |||||||||||||||||||
Payment of deferred financing costs | (362) | (10,275) | (922) | (21,898) | |||||||||||||||||||
Cash paid to repurchase common stock | (40,525) | — | (55,505) | — | |||||||||||||||||||
Other, net | (41) | — | (3,623) | 1,715 | |||||||||||||||||||
Net cash used in financing activities | (71,928) | (143,275) | (385,288) | (508,977) | |||||||||||||||||||
Net change in cash and cash equivalents | (131) | (955) | (70) | (6,487) | |||||||||||||||||||
Balance, beginning of period | 3,456 | 4,350 | 3,395 | 9,882 | |||||||||||||||||||
Balance, end of period | $3,325 | $3,395 | $3,325 | $3,395 |
Table of Contents: | Page: | ||||
Consolidated Balance Sheets | |||||
Consolidated Statements of Operations | |||||
Consolidated Statements of Cash Flows | |||||
Operating Results | |||||
Commodity Derivatives | |||||
Non-GAAP Measures |
December 31, 2023 | December 31, 2022* | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $3,325 | $3,395 | |||||||||
Accounts receivable, net | 206,791 | 237,128 | |||||||||
Fair value of derivatives | 11,857 | 21,332 | |||||||||
Other current assets | 30,154 | 35,783 | |||||||||
Total current assets | 252,127 | 297,638 | |||||||||
Oil and natural gas properties, successful efforts accounting method: | |||||||||||
Proved properties, net | 5,086,973 | 4,851,529 | |||||||||
Unproved properties | 1,063,033 | 1,225,768 | |||||||||
Total oil and natural gas properties, net | 6,150,006 | 6,077,297 | |||||||||
Other property and equipment, net | 26,784 | 26,152 | |||||||||
Deferred income taxes | 180,963 | — | |||||||||
Other assets, net | 101,596 | 87,382 | |||||||||
Total assets | $6,711,476 | $6,488,469 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $526,446 | $536,233 | |||||||||
Fair value of derivatives | 24,147 | 16,197 | |||||||||
Other current liabilities | 96,369 | 150,384 | |||||||||
Total current liabilities | 646,962 | 702,814 | |||||||||
Long-term debt | 1,918,655 | 2,241,295 | |||||||||
Asset retirement obligations | 42,653 | 53,892 | |||||||||
Fair value of derivatives | 29,880 | 13,415 | |||||||||
Other long-term liabilities | 81,965 | 51,272 | |||||||||
Total liabilities | 2,720,115 | 3,062,688 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.01 par value, 130,000,000 shares authorized; 66,474,525 and 61,621,518 shares outstanding, respectively | 665 | 616 | |||||||||
Capital in excess of par value | 4,186,524 | 4,022,194 | |||||||||
Accumulated deficit | (195,828) | (597,029) | |||||||||
Total stockholders’ equity | 3,991,361 | 3,425,781 | |||||||||
Total liabilities and stockholders’ equity | $6,711,476 | $6,488,469 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022* | 2023 | 2022* | ||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
Oil | $427,030 | $513,734 | $1,697,026 | $2,262,647 | |||||||||||||||||||
Natural gas | 19,414 | 42,774 | 82,468 | 232,681 | |||||||||||||||||||
Natural gas liquids | 43,919 | 49,776 | 174,407 | 260,472 | |||||||||||||||||||
Sales of purchased oil and gas | 110,994 | 97,965 | 389,083 | 475,164 | |||||||||||||||||||
Total operating revenues | 601,357 | 704,249 | 2,342,984 | 3,230,964 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Lease operating | 77,948 | 74,097 | 303,363 | 290,486 | |||||||||||||||||||
Production and ad valorem taxes | 25,493 | 34,079 | 113,512 | 159,920 | |||||||||||||||||||
Gathering, transportation and processing | 27,651 | 25,285 | 108,221 | 96,902 | |||||||||||||||||||
Exploration | 1,441 | 2,466 | 9,143 | 9,703 | |||||||||||||||||||
Cost of purchased oil and gas | 113,295 | 100,338 | 399,242 | 478,445 | |||||||||||||||||||
Depreciation, depletion and amortization | 143,750 | 134,735 | 535,661 | 494,229 | |||||||||||||||||||
Impairment of oil and gas properties | — | 2,201 | 406,898 | 2,201 | |||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | — | (23,476) | — | |||||||||||||||||||
General and administrative | 28,439 | 26,511 | 115,344 | 97,996 | |||||||||||||||||||
Merger, integration and transaction | 4,730 | — | 11,198 | 769 | |||||||||||||||||||
Total operating expenses | 419,841 | 399,712 | 1,979,106 | 1,630,651 | |||||||||||||||||||
Income From Operations | 181,516 | 304,537 | 363,878 | 1,600,313 | |||||||||||||||||||
Other (Income) Expenses: | |||||||||||||||||||||||
Interest expense | 42,611 | 46,772 | 179,305 | 187,792 | |||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 25,855 | (18,898) | 330,953 | |||||||||||||||||||
(Gain) loss on extinguishment of debt | — | 3,241 | (1,238) | 45,658 | |||||||||||||||||||
Other (income) expense | (3,544) | (485) | (6,684) | 2,645 | |||||||||||||||||||
Total other (income) expense | (4,049) | 75,383 | 152,485 | 567,048 | |||||||||||||||||||
Income Before Income Taxes | 185,565 | 229,154 | 211,393 | 1,033,265 | |||||||||||||||||||
Income tax benefit (expense) | (16,590) | (7,286) | 189,808 | (13,822) | |||||||||||||||||||
Net Income | $168,975 | $221,868 | $401,201 | $1,019,443 | |||||||||||||||||||
Net Income Per Common Share: | |||||||||||||||||||||||
Basic | $2.51 | $3.60 | $6.20 | $16.54 | |||||||||||||||||||
Diluted | $2.51 | $3.59 | $6.19 | $16.47 | |||||||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 67,257 | 61,610 | 64,692 | 61,620 | |||||||||||||||||||
Diluted | 67,421 | 61,844 | 64,852 | 61,904 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022* | 2023 | 2022* | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $168,975 | $221,868 | $401,201 | $1,019,443 | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation, depletion and amortization | 143,750 | 134,735 | 535,661 | 494,229 | |||||||||||||||||||
Impairment of oil and gas properties | — | 2,201 | 406,898 | 2,201 | |||||||||||||||||||
Amortization of non-cash debt related items, net | 2,811 | 2,652 | 10,790 | 12,332 | |||||||||||||||||||
Deferred income tax (benefit) expense | 18,771 | 5,198 | (187,270) | 6,308 | |||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 25,855 | (18,898) | 330,953 | |||||||||||||||||||
Cash received (paid) for commodity derivative settlements, net | (10,352) | (60,196) | 2,922 | (493,714) | |||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | — | (23,476) | — | |||||||||||||||||||
(Gain) loss on extinguishment of debt | — | 3,241 | (1,238) | 45,658 | |||||||||||||||||||
Non-cash expense related to share-based awards | 1,889 | 3,615 | 11,413 | 8,042 | |||||||||||||||||||
Other, net | 824 | (1,568) | 5,387 | 7,136 | |||||||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | 34,066 | 48,943 | 48,285 | (3,480) | |||||||||||||||||||
Other current assets | (3,284) | (3,163) | (16,462) | (15,392) | |||||||||||||||||||
Accounts payable and accrued liabilities | (13,162) | (49,394) | (82,684) | (58,043) | |||||||||||||||||||
Net cash provided by operating activities | 298,266 | 333,987 | 1,092,529 | 1,355,673 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (217,978) | (200,539) | (968,982) | (848,688) | |||||||||||||||||||
Acquisition of oil and gas properties | (9,505) | (9,700) | (287,939) | (26,706) | |||||||||||||||||||
Proceeds from sales of assets | 1,776 | 17,780 | 553,222 | 27,093 | |||||||||||||||||||
Cash paid for settlement of contingent consideration arrangement | — | — | — | (19,171) | |||||||||||||||||||
Other, net | (762) | 792 | (3,612) | 14,289 | |||||||||||||||||||
Net cash used in investing activities | (226,469) | (191,667) | (707,311) | (853,183) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Borrowings on credit facility | 883,500 | 751,000 | 3,513,000 | 3,286,000 | |||||||||||||||||||
Payments on credit facility | (914,500) | (884,000) | (3,651,000) | (3,568,000) | |||||||||||||||||||
Issuance of 7.5% Senior Notes due 2030 | — | — | — | 600,000 | |||||||||||||||||||
Redemption of 8.25% Senior Notes due 2025 | — | — | (187,238) | — | |||||||||||||||||||
Redemption of 6.125% Senior Notes due 2024 | — | — | — | (467,287) | |||||||||||||||||||
Redemption of 9.0% Second Lien Senior Secured Notes due 2025 | — | — | — | (339,507) | |||||||||||||||||||
Payment of deferred financing costs | (362) | (10,275) | (922) | (21,898) | |||||||||||||||||||
Cash paid to repurchase common stock | (40,525) | — | (55,505) | — | |||||||||||||||||||
Other, net | (41) | — | (3,623) | 1,715 | |||||||||||||||||||
Net cash used in financing activities | (71,928) | (143,275) | (385,288) | (508,977) | |||||||||||||||||||
Net change in cash and cash equivalents | (131) | (955) | (70) | (6,487) | |||||||||||||||||||
Balance, beginning of period | 3,456 | 4,350 | 3,395 | 9,882 | |||||||||||||||||||
Balance, end of period | $3,325 | $3,395 | $3,325 | $3,395 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
Total production | ||||||||||||||||||||||||||
Oil (MBbls) | ||||||||||||||||||||||||||
Permian | 5,402 | 5,310 | 4,715 | 19,658 | ||||||||||||||||||||||
Eagle Ford | — | 28 | 1,377 | 2,233 | ||||||||||||||||||||||
Total oil | 5,402 | 5,338 | 6,092 | 21,891 | ||||||||||||||||||||||
Natural gas (MMcf) | ||||||||||||||||||||||||||
Permian | 12,096 | 11,644 | 9,013 | 43,437 | ||||||||||||||||||||||
Eagle Ford | — | 44 | 1,530 | 2,672 | ||||||||||||||||||||||
Total natural gas | 12,096 | 11,688 | 10,543 | 46,109 | ||||||||||||||||||||||
NGLs (MBbls) | ||||||||||||||||||||||||||
Permian | 2,097 | 2,069 | 1,645 | 7,554 | ||||||||||||||||||||||
Eagle Ford | — | 6 | 285 | 457 | ||||||||||||||||||||||
Total NGLs | 2,097 | 2,075 | 1,930 | 8,011 | ||||||||||||||||||||||
Total production (MBoe) | ||||||||||||||||||||||||||
Permian | 9,515 | 9,320 | 7,862 | 34,452 | ||||||||||||||||||||||
Eagle Ford | — | 41 | 1,917 | 3,135 | ||||||||||||||||||||||
Total barrels of oil equivalent | 9,515 | 9,361 | 9,779 | 37,587 | ||||||||||||||||||||||
Total daily production (Boe/d) | ||||||||||||||||||||||||||
Permian | 103,426 | 101,292 | 85,461 | 94,388 | ||||||||||||||||||||||
Eagle Ford | — | 449 | 20,826 | 8,590 | ||||||||||||||||||||||
Total barrels of oil equivalent | 103,426 | 101,741 | 106,287 | 102,977 | ||||||||||||||||||||||
Oil as % of total daily production | 57 | % | 57 | % | 62 | % | 58 | % | ||||||||||||||||||
Average realized sales price (excluding impact of settled derivatives) | ||||||||||||||||||||||||||
Oil (per Bbl) | ||||||||||||||||||||||||||
Permian | $79.05 | $82.19 | $84.19 | $77.81 | ||||||||||||||||||||||
Eagle Ford | — | 79.61 | 84.82 | 75.01 | ||||||||||||||||||||||
Total oil | $79.05 | $82.18 | $84.33 | $77.52 | ||||||||||||||||||||||
Natural gas (per Mcf) | ||||||||||||||||||||||||||
Permian | $1.60 | $2.13 | $3.83 | $1.74 | ||||||||||||||||||||||
Eagle Ford | — | 4.82 | 5.38 | 2.64 | ||||||||||||||||||||||
Total natural gas | $1.60 | $2.14 | $4.06 | $1.79 | ||||||||||||||||||||||
NGL (per Bbl) | ||||||||||||||||||||||||||
Permian | $20.94 | $22.25 | $25.99 | $21.86 | ||||||||||||||||||||||
Eagle Ford | — | 74.33 | 24.67 | 20.26 | ||||||||||||||||||||||
Total NGL | $20.94 | $22.40 | $25.79 | $21.77 | ||||||||||||||||||||||
Average realized sales price (per Boe) | ||||||||||||||||||||||||||
Permian | $51.54 | $54.43 | $60.32 | $51.38 | ||||||||||||||||||||||
Eagle Ford | — | 70.41 | 68.89 | 58.63 | ||||||||||||||||||||||
Total average realized sales price | $51.54 | $54.50 | $62.00 | $51.98 | ||||||||||||||||||||||
Average realized sales price (including impact of settled derivatives) | ||||||||||||||||||||||||||
Oil (per Bbl) | $78.23 | $80.66 | $76.82 | $77.27 | ||||||||||||||||||||||
Natural gas (per Mcf) | 1.62 | 2.08 | 4.19 | 2.18 | ||||||||||||||||||||||
NGLs (per Bbl) | 20.78 | 22.23 | 25.79 | 21.68 | ||||||||||||||||||||||
Total average realized sales price (per Boe) | $51.05 | $53.52 | $57.46 | $52.30 | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
Revenues (in thousands)(a) | ||||||||||||||||||||||||||
Oil | ||||||||||||||||||||||||||
Permian | $427,030 | $436,436 | $396,940 | $1,529,538 | ||||||||||||||||||||||
Eagle Ford | — | 2,229 | 116,794 | 167,488 | ||||||||||||||||||||||
Total oil | $427,030 | $438,665 | $513,734 | $1,697,026 | ||||||||||||||||||||||
Natural gas | ||||||||||||||||||||||||||
Permian | $19,414 | $24,833 | $34,541 | $75,411 | ||||||||||||||||||||||
Eagle Ford | — | 212 | 8,233 | 7,057 | ||||||||||||||||||||||
Total natural gas | $19,414 | $25,045 | $42,774 | $82,468 | ||||||||||||||||||||||
NGLs | ||||||||||||||||||||||||||
Permian | $43,919 | $46,043 | $42,746 | $165,148 | ||||||||||||||||||||||
Eagle Ford | — | 446 | 7,030 | 9,259 | ||||||||||||||||||||||
Total NGLs | $43,919 | $46,489 | $49,776 | $174,407 | ||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Permian | $490,363 | $507,312 | $474,227 | $1,770,097 | ||||||||||||||||||||||
Eagle Ford | — | 2,887 | 132,057 | 183,804 | ||||||||||||||||||||||
Total revenues | $490,363 | $510,199 | $606,284 | $1,953,901 | ||||||||||||||||||||||
Additional per Boe data | ||||||||||||||||||||||||||
Sales price (b) | ||||||||||||||||||||||||||
Permian | $51.54 | $54.43 | $60.32 | $51.38 | ||||||||||||||||||||||
Eagle Ford | — | 70.41 | 68.89 | 58.63 | ||||||||||||||||||||||
Total sales price | $51.54 | $54.50 | $62.00 | $51.98 | ||||||||||||||||||||||
Lease operating expense | ||||||||||||||||||||||||||
Permian | $8.19 | $7.91 | $6.97 | $7.86 | ||||||||||||||||||||||
Eagle Ford | — | (3.90) | 10.08 | 10.38 | ||||||||||||||||||||||
Total lease operating expense | $8.19 | $7.85 | $7.58 | $8.07 | ||||||||||||||||||||||
Production and ad valorem taxes | ||||||||||||||||||||||||||
Permian | $2.68 | $3.26 | $3.39 | $2.93 | ||||||||||||||||||||||
Eagle Ford | — | 4.51 | 3.87 | 3.98 | ||||||||||||||||||||||
Total production and ad valorem taxes | $2.68 | $3.27 | $3.48 | $3.02 | ||||||||||||||||||||||
Gathering, transportation and processing | ||||||||||||||||||||||||||
Permian | $2.91 | $2.92 | $2.75 | $2.96 | ||||||||||||||||||||||
Eagle Ford | — | 1.12 | 1.90 | 1.99 | ||||||||||||||||||||||
Total gathering, transportation and processing | $2.91 | $2.91 | $2.59 | $2.88 | ||||||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||
Permian | $37.76 | $40.34 | $47.21 | $37.63 | ||||||||||||||||||||||
Eagle Ford | — | 68.68 | 53.04 | 42.28 | ||||||||||||||||||||||
Total operating margin | $37.76 | $40.47 | $48.35 | $38.01 | ||||||||||||||||||||||
Depletion, depreciation and amortization | $15.11 | $14.81 | $13.78 | $14.25 | ||||||||||||||||||||||
General and administrative | $2.99 | $3.13 | $2.71 | $3.07 | ||||||||||||||||||||||
Adjusted G&A | ||||||||||||||||||||||||||
Cash component (c) | $2.79 | $2.71 | $2.34 | $2.77 | ||||||||||||||||||||||
Non-cash component | $0.32 | $0.42 | $0.40 | $0.39 |
Three Months Ended | Year Ended | |||||||||||||
December 31, 2023 | December 31, 2023 | |||||||||||||
Gain on oil derivatives | ($40,536) | ($22,371) | ||||||||||||
Gain on natural gas derivatives | (7,370) | (4,990) | ||||||||||||
(Gain) loss on NGL derivatives | (270) | 2,663 | ||||||||||||
Loss on contingent consideration arrangements | 5,060 | 5,800 | ||||||||||||
Gain on commodity derivative contracts | ($43,116) | ($18,898) |
Three Months Ended | Year Ended | |||||||||||||
December 31, 2023 | December 31, 2023 | |||||||||||||
Cash paid on oil derivatives | ($10,177) | ($14,626) | ||||||||||||
Cash received on natural gas derivatives | 293 | 18,109 | ||||||||||||
Cash paid on NGL derivatives | (468) | (561) | ||||||||||||
Cash received (paid) for commodity derivative settlements, net | ($10,352) | $2,922 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands except per share data) | ||||||||||||||||||||||||||
Net income | $168,975 | $119,484 | $221,868 | $401,201 | ||||||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 55,804 | 25,855 | (18,898) | ||||||||||||||||||||||
Gain (loss) on commodity derivative settlements, net | (4,638) | (9,196) | (44,380) | 11,841 | ||||||||||||||||||||||
Non-cash expense related to share-based awards | 1,889 | 3,955 | 3,615 | 11,413 | ||||||||||||||||||||||
Impairment of oil and gas properties | — | — | 2,201 | 406,898 | ||||||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | (20,570) | — | (23,476) | ||||||||||||||||||||||
Merger, integration and transaction | 4,730 | 4,925 | — | 11,198 | ||||||||||||||||||||||
Other (income) expense | (3,544) | 3,220 | (485) | (6,684) | ||||||||||||||||||||||
(Gain) loss on extinguishment of debt | — | (1,238) | 3,241 | (1,238) | ||||||||||||||||||||||
Tax effect on adjustments above (a) | 9,993 | (7,749) | 2,090 | (82,121) | ||||||||||||||||||||||
Change in valuation allowance | (22,379) | (24,690) | (40,836) | (234,201) | ||||||||||||||||||||||
Adjusted income | $109,004 | $123,945 | $173,169 | $475,933 | ||||||||||||||||||||||
Net income per diluted share | $2.51 | $1.75 | $3.59 | $6.19 | ||||||||||||||||||||||
Adjusted income per diluted share | $1.62 | $1.82 | $2.80 | $7.34 | ||||||||||||||||||||||
Basic weighted average common shares outstanding | 67,257 | 67,931 | 61,610 | 64,692 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding (GAAP) | 67,421 | 68,083 | 61,844 | 64,852 | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Net income | $168,975 | $119,484 | $221,868 | $401,201 | ||||||||||||||||||||||
(Gain) loss on derivative contracts | (43,116) | 55,804 | 25,855 | (18,898) | ||||||||||||||||||||||
Gain (loss) on commodity derivative settlements, net | (4,638) | (9,196) | (44,380) | 11,841 | ||||||||||||||||||||||
Non-cash expense related to share-based awards | 1,889 | 3,955 | 3,615 | 11,413 | ||||||||||||||||||||||
Impairment of oil and gas properties | — | — | 2,201 | 406,898 | ||||||||||||||||||||||
Gain on sale of oil and gas properties | (2,906) | (20,570) | — | (23,476) | ||||||||||||||||||||||
Merger, integration and transaction | 4,730 | 4,925 | — | 11,198 | ||||||||||||||||||||||
Other (income) expense | (3,544) | 3,220 | (485) | (6,684) | ||||||||||||||||||||||
Income tax (benefit) expense | 16,590 | 509 | 7,286 | (189,808) | ||||||||||||||||||||||
Interest expense | 42,611 | 43,149 | 46,772 | 179,305 | ||||||||||||||||||||||
Depreciation, depletion and amortization | 143,750 | 138,598 | 134,735 | 535,661 | ||||||||||||||||||||||
Exploration | 1,441 | 3,588 | 2,466 | 9,143 | ||||||||||||||||||||||
(Gain) loss on extinguishment of debt | — | (1,238) | 3,241 | (1,238) | ||||||||||||||||||||||
Adjusted EBITDAX | $325,782 | $342,228 | $403,174 | $1,326,556 | ||||||||||||||||||||||
Add: (Gain) loss on commodity derivative settlements, net | 4,638 | 9,196 | 44,380 | (11,841) | ||||||||||||||||||||||
Unhedged adjusted EBITDAX | $330,420 | $351,424 | $447,554 | $1,314,715 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Net cash provided by operating activities | $298,266 | $266,828 | $333,987 | $1,092,529 | ||||||||||||||||||||||
Changes in working capital and other | (16,255) | 26,344 | 13,781 | 40,146 | ||||||||||||||||||||||
Changes in accrued hedge settlements | 5,714 | (10,224) | 15,816 | 8,919 | ||||||||||||||||||||||
Merger, integration and transaction | 4,730 | 4,925 | — | 11,198 | ||||||||||||||||||||||
Cash flow from operations before net change in working capital | 292,455 | 287,873 | 363,584 | 1,152,792 | ||||||||||||||||||||||
Capital expenditures | 217,978 | 252,407 | 200,539 | 968,982 | ||||||||||||||||||||||
Increase (decrease) in accrued capital expenditures | (45,756) | (12,872) | (1,870) | (4,251) | ||||||||||||||||||||||
Capital expenditures before accruals | 172,222 | 239,535 | 198,669 | 964,731 | ||||||||||||||||||||||
Adjusted free cash flow | $120,233 | $48,338 | $164,915 | $188,061 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
G&A | $28,439 | $29,339 | $26,511 | $115,344 | ||||||||||||||||||||||
Change in the fair value of liability share-based awards (non-cash) | 1,156 | (49) | 339 | 3,245 | ||||||||||||||||||||||
Adjusted G&A – total | 29,595 | 29,290 | 26,850 | 118,589 | ||||||||||||||||||||||
Equity settled, share-based compensation (non-cash) | (3,045) | (3,906) | (3,954) | (14,658) | ||||||||||||||||||||||
Adjusted G&A – cash component | $26,550 | $25,384 | $22,896 | $103,931 | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||
Oil | $427,030 | $438,665 | $513,734 | $1,697,026 | ||||||||||||||||||||||
Natural gas | 19,414 | 25,045 | 42,774 | 82,468 | ||||||||||||||||||||||
NGLs | 43,919 | 46,489 | 49,776 | 174,407 | ||||||||||||||||||||||
Total operating revenues | $490,363 | $510,199 | $606,284 | $1,953,901 | ||||||||||||||||||||||
Impact of settled derivatives | (4,638) | (9,196) | (44,380) | 11,841 | ||||||||||||||||||||||
Adjusted total revenue | $485,725 | $501,003 | $561,904 | $1,965,742 |
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total debt | $1,918,655 | $1,948,619 | $2,241,295 | |||||||||||||||||
Unamortized premiums, discount, and deferred loan costs, net | 17,128 | 18,164 | 19,726 | |||||||||||||||||
Adjusted total debt | $1,935,783 | $1,966,783 | $2,261,021 | |||||||||||||||||
Less: Cash and cash equivalents | 3,325 | 3,456 | 3,395 | |||||||||||||||||
Net debt | $1,932,458 | $1,963,327 | $2,257,626 |
As of December 31, 2023 | ||||||||
(In millions) | ||||||||
Standardized measure of discounted future net cash flows | $5,434.2 | |||||||
Add: present value of future income taxes discounted at 10% per annum | $455.4 | |||||||
Total proved reserves - PV-10 | $5,889.6 | |||||||
Total proved developed reserves - PV-10 | $4,294.9 | |||||||
Total proved undeveloped reserves - PV-10 | $1,594.7 |
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