Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-31446 | ||
Entity Registrant Name | CIMAREX ENERGY CO | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-0466694 | ||
Entity Address, Address Line One | 1700 Lincoln Street, Suite 3700 | ||
Entity Address, City or Town | Denver | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80203 | ||
City Area Code | 303 | ||
Local Phone Number | 295-3995 | ||
Title of 12(b) Security | Common Stock ($0.01 par value) | ||
Trading Symbol | XEC | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,920 | ||
Entity Common Stock, Shares Outstanding | 102,135,577 | ||
Entity Central Index Key | 0001168054 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 94,722 | $ 800,666 |
Accounts receivable, net of allowance: | ||
Trade | 57,879 | 122,065 |
Oil and gas sales | 384,707 | 315,063 |
Gas gathering, processing, and marketing | 5,998 | 17,072 |
Oil and gas well equipment and supplies | 47,893 | 55,553 |
Derivative instruments | 17,944 | 101,939 |
Prepaid expenses | 10,759 | 7,554 |
Other current assets | 1,584 | 4,227 |
Total current assets | 621,486 | 1,424,139 |
Oil and gas properties at cost, using the full cost method of accounting: | ||
Proved properties | 20,678,334 | 18,566,757 |
Unproved properties and properties under development, not being amortized | 1,255,908 | 436,325 |
Gross oil and gas properties | 21,934,242 | 19,003,082 |
Less—accumulated depreciation, depletion, amortization, and impairment | (16,723,544) | (15,287,752) |
Net oil and gas properties | 5,210,698 | 3,715,330 |
Fixed assets, net of accumulated depreciation of $389,458 and $324,631, respectively | 519,291 | 257,686 |
Goodwill | 716,865 | 620,232 |
Derivative instruments | 580 | 9,246 |
Other assets | 71,109 | 35,451 |
Total assets | 7,140,029 | 6,062,084 |
Accounts payable: | ||
Trade | 36,280 | 76,927 |
Gas gathering, processing, and marketing | 12,740 | 29,887 |
Accrued liabilities: | ||
Exploration and development | 112,228 | 124,674 |
Taxes other than income | 54,446 | 33,622 |
Other | 252,304 | 221,159 |
Derivative instruments | 16,681 | 27,627 |
Revenue payable | 207,939 | 194,811 |
Operating leases | 66,003 | 0 |
Total current liabilities | 758,621 | 708,707 |
Long-term debt: | ||
Principal | 2,000,000 | 1,500,000 |
Less—unamortized debt issuance costs and discounts | (14,754) | (11,446) |
Long-term debt, net | 1,985,246 | 1,488,554 |
Deferred income taxes | 338,424 | 334,473 |
Asset retirement obligation | 154,045 | 152,758 |
Derivative instruments | 1,018 | 2,267 |
Operating leases | 184,172 | 0 |
Other liabilities | 60,742 | 45,539 |
Total liabilities | 3,482,268 | 2,732,298 |
Commitments and contingencies (Note 10) | ||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 62,500 shares authorized and issued and no shares authorized and issued, respectively (Note 2) | 81,620 | 0 |
Stockholders’ equity: | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 102,144,577 and 95,755,797 shares issued, respectively | 1,021 | 958 |
Additional paid-in capital | 3,243,325 | 2,785,188 |
Retained earnings | 331,795 | 542,885 |
Accumulated other comprehensive income | 0 | 755 |
Total stockholders’ equity | 3,576,141 | 3,329,786 |
Total liabilities and stockholders' equity | $ 7,140,029 | $ 6,062,084 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Fixed assets, accumulated depreciation | $ 389,458 | $ 324,631 |
Redeemable preferred stock dividend rate (as a percent) | 8.125% | 8.125% |
Redeemable preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Redeemable preferred stock authorized (shares) | 62,500 | 0 |
Redeemable preferred stock issued (shares) | 62,500 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 200,000,000 | 200,000,000 |
Common stock issued (shares) | 102,144,577 | 95,755,797 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Total revenues | $ 2,362,969 | $ 2,339,017 | $ 1,918,249 |
Costs and expenses: | |||
Impairment of oil and gas properties | 618,693 | 0 | 0 |
Depreciation, depletion, and amortization | 882,173 | 590,473 | 446,031 |
Asset retirement obligation | 8,586 | 7,142 | 15,624 |
Production | 339,941 | 296,189 | 263,349 |
Transportation, processing, and other operating | 238,259 | 211,463 | 248,124 |
Gas gathering and other | 23,294 | 28,327 | 18,187 |
Taxes other than income | 148,953 | 125,169 | 89,864 |
General and administrative | 95,843 | 77,843 | 79,996 |
Stock compensation | 26,398 | 22,895 | 26,256 |
Loss (gain) on derivative instruments, net | 76,850 | (85,959) | (21,210) |
Other operating expense, net | 19,305 | 18,507 | 1,314 |
Total costs and expenses | 2,478,295 | 1,292,049 | 1,167,535 |
Operating (loss) income | (115,326) | 1,046,968 | 750,714 |
Other (income) and expense: | |||
Interest expense | 93,386 | 68,224 | 74,821 |
Capitalized interest | (56,232) | (20,855) | (22,948) |
Loss on early extinguishment of debt | 4,250 | 0 | 28,187 |
Other, net | (5,741) | (22,908) | (11,342) |
(Loss) income before income tax | (150,989) | 1,022,507 | 681,996 |
Income tax (benefit) expense | (26,370) | 230,656 | 187,667 |
Net (loss) income | $ (124,619) | $ 791,851 | $ 494,329 |
Earnings (loss) per share to common stockholders: | |||
Basic (USD per share) | $ (1.33) | $ 8.32 | $ 5.19 |
Diluted (USD per share) | $ (1.33) | $ 8.32 | $ 5.19 |
Comprehensive (loss) income: | |||
Net (loss) income | $ (124,619) | $ 791,851 | $ 494,329 |
Other comprehensive (loss) income: | |||
Change in fair value of investments, net of tax of $(222), $(425), and $106, respectively | (755) | (1,444) | 1,254 |
Total comprehensive (loss) income | (125,374) | 790,407 | 495,583 |
Oil sales | |||
Revenues: | |||
Total revenues | 1,660,210 | 1,398,813 | 981,646 |
Gas and NGL sales | |||
Revenues: | |||
Total revenues | 661,711 | 898,832 | 892,357 |
Gas gathering and other | |||
Revenues: | |||
Total revenues | 42,454 | 41,180 | 43,751 |
Gas marketing | |||
Revenues: | |||
Total revenues | $ (1,406) | $ 192 | $ 495 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Change in fair value investments, tax | $ (222) | $ (425) | $ 106 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (124,619) | $ 791,851 | $ 494,329 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Impairment of oil and gas properties | 618,693 | 0 | 0 |
Depreciation, depletion, and amortization | 882,173 | 590,473 | 446,031 |
Asset retirement obligation | 8,586 | 7,142 | 15,624 |
Deferred income taxes | (26,902) | 233,280 | 190,479 |
Stock compensation | 26,398 | 22,895 | 26,256 |
Loss (gain) on derivative instruments, net | 76,850 | (85,959) | (21,210) |
Settlements on derivative instruments | (13,131) | (24,429) | (1,633) |
Loss on early extinguishment of debt | 4,250 | 0 | 28,187 |
Changes in non-current assets and liabilities | (2,797) | (1,779) | 1,891 |
Other, net | 14,639 | 105 | 5,677 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 65,128 | 5,421 | (186,157) |
Other current assets | (739) | (1,957) | (17,931) |
Accounts payable and other current liabilities | (184,563) | 13,951 | 115,021 |
Net cash provided by operating activities | 1,343,966 | 1,550,994 | 1,096,564 |
Cash flows from investing activities: | |||
Oil and gas capital expenditures | (1,249,797) | (1,566,583) | (1,233,126) |
Acquisition of Resolute Energy, net of cash acquired (Note 13) | (284,441) | 0 | 0 |
Other capital expenditures | (73,693) | (103,459) | (45,352) |
Sales of oil and gas assets | 28,945 | 580,652 | 11,680 |
Sales of other assets | 1,104 | 3,772 | 901 |
Net cash used by investing activities | (1,577,882) | (1,085,618) | (1,265,897) |
Cash flows from financing activities: | |||
Borrowings of long-term debt | 2,619,310 | 0 | 748,110 |
Repayments of long-term debt | (2,990,000) | 0 | (750,000) |
Financing, underwriting, and debt redemption fees | (11,798) | (100) | (29,312) |
Finance lease payments | (3,869) | 0 | 0 |
Dividends paid | (81,709) | (55,243) | (30,532) |
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (5,229) | (12,142) | (21,669) |
Proceeds from exercise of stock options | 1,267 | 2,241 | 394 |
Net cash used by financing activities | (472,028) | (65,244) | (83,009) |
Net change in cash and cash equivalents | (705,944) | 400,132 | (252,342) |
Cash and cash equivalents at beginning of period | 800,666 | 400,534 | 652,876 |
Cash and cash equivalents at end of period | $ 94,722 | $ 800,666 | $ 400,534 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period (shares) at Dec. 31, 2016 | 95,124 | ||||
Balance at beginning of period at Dec. 31, 2016 | $ 2,042,989 | $ 951 | $ 2,763,452 | $ (722,359) | $ 945 |
Increase (Decrease) in Stockholders' Equity | |||||
Dividends paid on stock awards subsequently forfeited | 43 | 11 | 32 | ||
Dividends declared | (30,489) | (30,489) | |||
Net (loss) income | 494,329 | 494,329 | |||
Unrealized change in fair value of investments, net of tax | 1,254 | 1,254 | |||
Issuance of restricted stock awards (shares) | 552 | ||||
Issuance of restricted stock awards | 0 | $ 5 | (5) | ||
Common stock reacquired and retired (shares) | (204) | ||||
Common stock reacquired and retired | (21,669) | $ (2) | (21,667) | ||
Restricted stock forfeited or canceled and retired (shares) | (41) | ||||
Restricted stock forfeited or canceled and retired | 0 | ||||
Exercise of stock options (shares) | 6 | ||||
Exercise of stock options | 394 | 394 | |||
Stock-based compensation | 48,321 | 48,321 | |||
Other | (26) | (26) | |||
Balance at end of period (shares) at Dec. 31, 2017 | 95,437 | ||||
Balance at end of period at Dec. 31, 2017 | 2,568,278 | $ 954 | 2,764,384 | (199,259) | 2,199 |
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative effect adjustment of adopting ASU 2016-09 (Note 6) | 33,132 | 4,393 | 28,739 | ||
Dividends paid on stock awards subsequently forfeited | 52 | 34 | 18 | ||
Dividends declared | (64,921) | (15,196) | (49,725) | ||
Net (loss) income | 791,851 | 791,851 | |||
Unrealized change in fair value of investments, net of tax | (1,444) | (1,444) | |||
Issuance of restricted stock awards (shares) | 593 | ||||
Issuance of restricted stock awards | 0 | $ 6 | (6) | ||
Common stock reacquired and retired (shares) | (139) | ||||
Common stock reacquired and retired | (12,142) | (12,142) | |||
Restricted stock forfeited or canceled and retired (shares) | (168) | ||||
Restricted stock forfeited or canceled and retired | 0 | $ (2) | 2 | ||
Exercise of stock options (shares) | 33 | ||||
Exercise of stock options | 2,241 | 2,241 | |||
Stock-based compensation | 45,871 | 45,871 | |||
Balance at end of period (shares) at Dec. 31, 2018 | 95,756 | ||||
Balance at end of period at Dec. 31, 2018 | 3,329,786 | $ 958 | 2,785,188 | 542,885 | 755 |
Increase (Decrease) in Stockholders' Equity | |||||
Dividends paid on stock awards subsequently forfeited | 26 | 8 | 18 | ||
Dividends declared | (81,350) | 61 | (81,411) | ||
Dividends declared on redeemable preferred stock ($81.25 per share) | (5,078) | (5,078) | |||
Net (loss) income | (124,619) | (124,619) | |||
Issuance of stock for Resolute Energy acquisition (Note 13) (shares) | 5,652 | ||||
Issuance of stock for Resolute Energy acquisition (Note 13) | 413,015 | $ 56 | 412,959 | ||
Unrealized change in fair value of investments, net of tax | (755) | (755) | |||
Issuance of restricted stock awards (shares) | 946 | ||||
Issuance of restricted stock awards | 0 | $ 9 | (9) | ||
Common stock reacquired and retired (shares) | (105) | ||||
Common stock reacquired and retired | (5,229) | $ (1) | (5,228) | ||
Restricted stock forfeited or canceled and retired (shares) | (133) | ||||
Restricted stock forfeited or canceled and retired | 0 | $ (1) | 1 | ||
Exercise of stock options (shares) | 29 | ||||
Exercise of stock options | 1,267 | 1,267 | |||
Stock-based compensation | 49,078 | 49,078 | |||
Balance at end of period (shares) at Dec. 31, 2019 | 102,145 | ||||
Balance at end of period at Dec. 31, 2019 | $ 3,576,141 | $ 1,021 | $ 3,243,325 | $ 331,795 | $ 0 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividends declared (USD per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.16 | $ 0.16 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.8 | $ 0.68 | $ 0.32 |
Dividends declared per preferred share (USD per share) | $ 20.3125 | $ 20.31 | $ 20.31 | $ 20.31 | $ 81.25 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cimarex Energy Co., a Delaware corporation, is an independent oil and gas exploration and production company. Our operations are mainly located in Texas, Oklahoma, and New Mexico. Basis of Presentation Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. Our significant accounting policies are discussed below. The accounts of Cimarex and its subsidiaries are presented in the accompanying Consolidated Financial Statements. All intercompany accounts and transactions were eliminated in consolidation. Segment Information We have determined that our business is comprised of only one segment because our gathering, processing, and marketing activities are ancillary to our oil and gas production operations. Use of Estimates The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. Areas of significance requiring the use of management’s judgments include the estimation of proved oil and gas reserves used in calculating depletion, the estimation of future net revenues used in computing ceiling test limitations, the estimation of future abandonment obligations used in recording asset retirement obligations, and the assessment of goodwill. Estimates and judgments also are required in determining allowances for doubtful accounts, impairments of unproved properties and other assets, valuation of deferred tax assets, fair value measurements, lease liabilities, and contingencies. We analyze our estimates and base them on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The process of estimating quantities of oil and gas reserves is complex, requiring significant decisions in the evaluation of all available geological, geophysical, engineering, and economic data. The data for a given field may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history, and continual reassessment of the viability of production under varying economic conditions. As a result, material revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure that our reserve estimates represent the most accurate assessments possible, subjective decisions, and available data for our various fields make these estimates generally less precise than other estimates included in financial statement disclosures. Prior Year Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the 2019 financial statement presentation. These reclassifications include reclassifying certain Gas gathering and other expenses to Transportation, processing, and other operating expense and Production expense. These reclassifications were made to reflect an allocation of the costs incurred to operate our gas gathering facilities as a cost to transport our equity share of gas produced and operate our wells. The following table shows the reclassifications made: Years Ended December 31, 2018 2017 (in thousands) Prior Year Presentation Current Year Reclassifications Current Year Presentation Prior Year Presentation Current Year Reclassifications Current Year Presentation Production $ 293,213 $ 2,976 $ 296,189 $ 262,180 $ 1,169 $ 263,349 Transportation, processing, and other operating $ 200,802 10,661 $ 211,463 $ 231,640 16,484 $ 248,124 Gas gathering and other $ 41,964 (13,637 ) $ 28,327 $ 35,840 (17,653 ) $ 18,187 $ — $ — Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and investments readily convertible into cash, which have original maturities of three months or less. Cash equivalents are stated at cost, which approximates market value. Oil and Gas Well Equipment and Supplies Our oil and gas well equipment and supplies are valued at the lower of cost and net realizable value, where net realizable value is based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Declines in the price of oil and gas well equipment and supplies in future periods could cause us to recognize impairments on these assets. An impairment would not affect cash flow from operating activities, but would adversely affect our net income and stockholders’ equity. Oil and Gas Properties We use the full cost method of accounting for our oil and gas operations. All costs associated with property acquisition, exploration, and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities, and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the acquisition, exploration, and development of properties, as well as other internal costs that can be directly identified with acquisition, exploration and development activities, are also capitalized. Under the full cost method of accounting, no gain or loss is recognized upon the disposition of oil and gas properties unless such disposition would significantly alter the relationship between capitalized costs and proved reserves. Expenditures for maintenance and repairs are charged to production expense in the period incurred. Under the full cost method of accounting, we are required to perform quarterly ceiling test calculations to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties, as adjusted for income taxes, exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of: (i) the present value discounted at 10% of estimated future net revenues from proved reserves, (ii) the cost of properties not being amortized, and (iii) the lower of cost or estimated fair value of unproven properties included in the costs being amortized, as adjusted for income taxes. We currently do not have any unproven properties that are being amortized. Estimated future net revenues are determined based on trailing twelve-month average commodity prices and estimated proved reserve quantities, operating costs, and capital expenditures. For the year ended December 31, 2019 , we recognized a ceiling test impairment of $618.7 million , all of which was recognized in the fourth quarter. The impairment resulted primarily from the impact of decreases in the 12-month average trailing prices for oil, natural gas, and NGLs as well as significant basis differentials utilized in determining the estimated future net cash flows from proved reserves. We did not recognize a ceiling test impairment during the years ended December 31, 2018 and 2017 because the net capitalized cost of our oil and gas properties, as adjusted for income taxes, did not exceed the ceiling limitation. The quarterly ceiling test is primarily impacted by commodity prices, changes in estimated reserve quantities, reserves produced, overall exploration and development costs, depletion expense, and deferred taxes. If pricing conditions decline, or if there is a negative impact on one or more of the other components of the calculation, we may incur full cost ceiling test impairments in future quarters. The calculated ceiling limitation is not intended to be indicative of the fair market value of our proved reserves or future results. Impairment charges do not affect cash flow from operating activities, but do adversely affect our net income and various components of our balance sheet. Any impairment of oil and gas properties is not reversible at a later date. Depletion of proved oil and gas properties is computed on the units-of-production method, whereby capitalized costs, including future development costs and asset retirement costs, are amortized over total estimated proved reserves. Changes in our estimate of proved reserve quantities and impairment of oil and gas properties will cause corresponding changes in depletion expense in periods subsequent to these changes. The capitalized costs of unproved properties, including those in wells in progress, are excluded from the costs being amortized. We do not have major development projects that are excluded from costs being amortized. On a quarterly basis, we evaluate excluded costs for inclusion in the costs to be amortized. Significant unproved properties are evaluated individually. Unproved properties that are not considered individually significant are aggregated for evaluation purposes and related costs are transferred to the costs to be amortized quarterly based on the application of historical factors. Fixed Assets Fixed assets consist primarily of gathering and plant facilities, vehicles, airplanes, office furniture, and computer equipment and software. These items are recorded at cost and are depreciated on the straight-line method based on expected lives of the individual assets, which range from 3 to 30 years . Also included in Fixed assets are operating lease right-of-use assets. See Note 10 for additional information regarding our leases. Goodwill Goodwill represents the excess of the purchase price of business combinations over the fair value of the net assets acquired and is tested for impairment at least annually. In performing the goodwill test, we compare the fair value of our reporting unit with its carrying amount. If the carrying amount of the reporting unit were to exceed its fair value, an impairment charge would be recognized in the amount of this excess, limited to the total amount of goodwill allocated to that reporting unit. We evaluate our goodwill for impairment in the fourth quarter of each year and whenever events or changes in circumstances indicate the possibility that goodwill may be impaired. Based upon our assessment as of October 31, 2019, goodwill was not impaired. It is possible that goodwill could become impaired in the future if commodity prices or other economic factors become unfavorable. Revenue Recognition Oil, Gas, and NGL Sales Effective January 1, 2018, we adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers (“Topic 606”), utilizing the modified retrospective approach, which we applied to contracts that were not completed as of that date. Because we utilized the modified retrospective approach, there was no impact to prior periods’ reported amounts. Application of Topic 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating in the Consolidated Statements of Operations and Comprehensive Income (Loss) under prior accounting standards are now reflected as deductions from revenue under Topic 606. Revenue is recognized from the sales of oil, gas, and NGLs when the customer obtains control of the product, when we have no further obligations to perform related to the sale, and when collectability is probable. All of our sales of oil, gas, and NGLs are made under contracts with customers, which typically include variable consideration based on monthly pricing tied to local indices and monthly volumes delivered. The nature of our contracts with customers does not require us to constrain that variable consideration or to estimate the amount of transaction price attributable to future performance obligations for accounting purposes. As of December 31, 2019 , we had open contracts with customers with terms of one month to multiple years, as well as “evergreen” contracts that renew on a periodic basis if not canceled by us or the customer. Performance obligations under our contracts with customers are typically satisfied at a point-in-time through monthly delivery of oil, gas, and/or NGLs. Our contracts with customers typically require payment within one month of delivery. Our gas and NGLs are sold under a limited number of contract structure types common in our industry. Under these contracts the gas and its components, including NGLs, may be sold to a single purchaser or the residue gas and NGLs may be sold to separate purchasers. Regardless of the contract structure type, the terms of these contracts compensate us for the value of the residue gas and NGLs at current market prices for each product. However, depending on the contract structure type, certain transportation, processing, and other charges may be deducted against the prices received for the product. Our oil typically is sold at specific delivery points under contract terms that also are common in our industry. Gas Gathering When we transport and/or process third-party gas associated with our equity gas, we recognize revenue for the fees charged to third-parties for such services. Gas Marketing When we market and sell gas for working interest owners, we act as agent under short-term sales and supply agreements and may earn a fee for such services. Revenues from such services are recognized as gas is delivered. Gas Imbalances Revenue from the sale of gas is recorded on the basis of gas actually sold by us. If our aggregate sales volumes for a well are greater (or less) than our proportionate share of production from the well, a liability (or receivable) is established to the extent there are insufficient proved reserves available to make-up the overproduced (or underproduced) imbalance. Imbalances have not been significant in the periods presented. General and Administrative Expenses General and administrative expenses are reported net of amounts reimbursed by working interest owners of the oil and gas properties operated by Cimarex and net of amounts capitalized pursuant to the full cost method of accounting. Derivatives Our derivative contracts are recorded on the balance sheet at fair value. Our firm sales contracts qualify for the normal purchase and normal sale exception. Contracts that qualify for this treatment do not require mark-to-market accounting treatment. See Note 4 for additional information regarding our derivative instruments. Income Taxes We record deferred tax assets and liabilities to account for the expected future tax consequences of events that have been recognized in the financial statements and tax returns. We classify all deferred tax assets and liabilities as non-current. We routinely assess the realizability of our deferred tax assets. Numerous judgments and assumptions are inherent in this assessment, including the determination of future taxable income, which is affected by factors such as future operating conditions (particularly as related to prevailing oil and gas prices) and changing tax laws. If we conclude that it is more likely than not that some or all of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. We regularly assess and, if required, establish accruals for tax contingencies that could result from assessments of additional tax by taxing jurisdictions where the company operates. See Note 9 for additional information regarding our income taxes. Contingencies A provision for contingencies is charged to expense when the loss is probable and the cost can be reasonably estimated. Determining when expenses should be recorded for these contingencies and the appropriate amounts for accrual is a complex estimation process that includes subjective judgment. In many cases, this judgment is based on interpretation of laws and regulations, which can be interpreted differently by regulators and/or courts of law. We closely monitor known and potential legal, environmental, and other contingencies and determine when we should record losses for these items based on information available to us. See Note 10 for additional information regarding our contingencies. Asset Retirement Obligations We recognize the present value of the fair value of liabilities for retirement obligations associated with tangible long-lived assets in the period in which there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. This liability includes costs related to the abandonment of wells, the removal of facilities and equipment, and site restorations. In periods subsequent to the initial measurement of an asset retirement obligation at present value, a period-to-period increase in the carrying amount of the liability is recognized as accretion expense, which represents the effect of the passage of time on the amount of the liability. An equivalent amount is added to the carrying amount of the liability. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement capitalized cost. Capitalized costs are included as a component of the DD&A calculations. The current portion of our asset retirement obligations is recorded in “Accrued liabilities — Other” in the accompanying Consolidated Balance Sheets and cash payments for settlements of retirement obligations are classified as cash used in operating activities in the accompanying Consolidated Statements of Cash Flows. See Note 8 for additional information regarding our asset retirement obligations. Stock-based Compensation We recognize compensation cost related to all stock-based awards in the financial statements based on their estimated grant date fair value. We grant various types of stock-based awards including stock options, restricted stock (including awards with service-based vesting and market condition-based vesting provisions), and restricted stock units. The grant date fair value of stock option awards is determined using the Black-Scholes option pricing model. Service-based restricted stock and units are valued using the market price of our common stock on the grant date. The grant date fair value of the market condition-based restricted stock incorporates the effect of the market condition using valuation techniques that take into consideration various share-price paths. Compensation cost is recognized ratably over the applicable vesting period. To the extent compensation cost relates to employees directly involved in oil and gas acquisition, exploration, and development activities, such amounts are capitalized to oil and gas properties. Amounts not capitalized to oil and gas properties are recognized as stock compensation expense. See Note 6 for additional information regarding our stock-based compensation. Earnings (Loss) per Share We calculate earnings (loss) per share recognizing that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, should be included in computing earnings per share using the two-class earnings allocation method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Our unvested share-based payment awards, consisting of restricted stock and units, qualify as participating securities. See Note 7 for additional information regarding our earnings per share. Lease Accounting In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842”). The FASB subsequently issued various ASUs that provided additional implementation guidance. Topic 842 requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for contracts that provide lessees with the right to control the use of identified assets for a period of time. The scope of Topic 842 excludes leases to explore for or use minerals, oil, natural gas, and similar nonregenerative resources. We adopted Topic 842 effective January 1, 2019, using the modified retrospective method applied to all leases that existed on that date, which resulted in the recognition of lease liabilities of $276.9 million and right-of-use assets of $265.0 million . In connection with adoption we made use of the following practical expedients, which are provided in Topic 842: • a package of practical expedients to not reassess: 1) whether expired or existing contracts are or contain a lease, 2) lease classification for expired or existing leases, and 3) initial direct costs for existing leases; • an election not to apply the recognition requirements in Topic 842 to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that the company is reasonably certain to exercise); • a practical expedient that permits combining lease and nonlease components in a contract and accounting for the combination as a lease (elected by asset class); and • a practical expedient to not reassess certain land easements in existence prior to January 1, 2019. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Authorized capital stock consists of 200 million shares of common stock and 15 million shares of preferred stock. At December 31, 2019 , there were 102.1 million shares of common stock and 62.5 thousand shares of preferred stock outstanding. Redeemable Preferred Stocks In February 2019, our Board of Directors created a new series of preferred stock, par value $0.01 per share, designated as 8.125% Series A Cumulative Perpetual Convertible Preferred Stock (the “Convertible Preferred Stock”) and authorized 62.5 thousand shares. In March 2019, in conjunction with the Resolute acquisition (see Note 13), we issued all of these shares of Convertible Preferred Stock. Prior to this issuance, we had not issued any preferred stock. Holders of the Convertible Preferred Stock are entitled to receive, when, as, and if declared by the Board out of funds of Cimarex legally available for payment, cumulative cash dividends at the annual rate of 8.125% of each share’s liquidation preference of $1,000 . Dividends on the preferred stock are payable quarterly in arrears and accumulate from the most recent date as to which dividends have been paid. In the event of any liquidation, winding up, or dissolution of Cimarex, whether voluntary or involuntary, each holder will be entitled to receive in respect of its shares and to be paid out of the assets of Cimarex legally available for distribution to its stockholders, after satisfaction of liabilities to Cimarex’s creditors and any senior stock (of which there is currently none) and before any payment or distribution is made to holders of junior stock (including common stock), the liquidation preference of $1,000 per share, with the total liquidation preference being $62.5 million in the aggregate. Each holder has the right at any time, at its option, to convert any or all of such holder’s shares of Convertible Preferred Stock at an initial conversion rate of 8.0421 shares of fully paid and nonassessable shares of our common stock and $471.40 in cash per share of Convertible Preferred Stock. The initial conversion rate of 8.0421 adjusts upon the occurrence of certain events, including the payment of cash dividends to common shareholders, and is 8.13828 as of December 31, 2019 . Additionally, at any time on or after October 15, 2021, we shall have the right, at our option, if the closing sale price of our common stock meets certain criteria, to elect to cause all, and not part, of the outstanding shares of Convertible Preferred Stock to be automatically converted into that number of shares of Cimarex common stock for each share of Convertible Preferred Stock equal to the conversion rate in effect on the mandatory conversion date as such terms are defined in the Certificate of Designations for the Convertible Preferred Stock and $471.40 in cash per share of Convertible Preferred Stock. As a result of the cash redemption features included in the Convertible Preferred Stock conversion option, with such conversion not solely within our control, the instruments are classified as Redeemable preferred stock in temporary equity on the Consolidated Balance Sheet. Dividends Common Stock A quarterly cash dividend has been paid on our common stock every quarter since the first quarter of 2006. In each quarter of 2019 a $0.20 per common share dividend was declared. A dividend of $0.18 per common share was declared in both the third and fourth quarters of 2018 while a dividend of $0.16 per common share was declared in the first and second quarters of 2018. In each quarter of 2017 an $0.08 per common share dividend was declared. We typically declare dividends in one quarter and pay them in the following quarter. At December 31, 2019 , we had dividends payable to common stock of $20.5 million that was included in “Accrued liabilities — Other”. Dividends declared are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the declared dividend. Dividends in excess of retained earnings are recorded as a reduction of additional paid-in capital. All dividends declared during 2019 were recorded as a reduction of retained earnings. During 2018, the dividend declared during the first quarter was recorded as a reduction of additional paid-in capital, while the remaining three dividends declared were recorded as a reduction of retained earnings. All dividends declared during 2017 were recorded as a reduction of additional paid-in capital. Nonforfeitable dividends paid on stock awards that subsequently forfeit are reclassified out of retained earnings or additional paid-in capital, as applicable, to compensation expense in the period in which the forfeitures occur. Dividends accrued and unpaid on performance stock awards that are canceled upon completion of the vesting period due to the performance criteria not being met, are reversed out of retained earnings or additional paid-in capital, as applicable, in the period in which the cancellations occur. Future dividend payments will depend on our level of earnings, financial requirements, and other factors considered relevant by our Board of Directors. Preferred Stock In each quarter of 2019 our Board of Directors declared a cash dividend of $20.3125 per share of Convertible Preferred Stock. All dividends declared during 2019 were recorded as a reduction of retained earnings. At December 31, 2019 , we had dividends payable to preferred stock of $1.3 million that was included in “Accrued liabilities — Other”. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 (in thousands) Principal Unamortized Debt Issuance Costs and Discounts (1) Long-term Debt, net Principal Unamortized Debt Issuance Costs and Discount (1) Long-term Debt, net 4.375% notes due 2024 $ 750,000 $ (3,535 ) $ 746,465 $ 750,000 $ (4,439 ) $ 745,561 3.90% notes due 2027 750,000 (6,289 ) 743,711 750,000 (7,007 ) 742,993 4.375% notes due 2029 500,000 (4,930 ) 495,070 — — — Total long-term debt $ 2,000,000 $ (14,754 ) $ 1,985,246 $ 1,500,000 $ (11,446 ) $ 1,488,554 ________________________________________ (1) The 4.375% notes due 2024 were issued at par , therefore, the amounts shown in the table are for unamortized debt issuance costs only. At December 31, 2019 , the unamortized debt issuance costs and discount related to the 3.90% notes were $4.8 million and $1.5 million , respectively. At December 31, 2019 , the unamortized debt issuance costs and discount related to the 4.375% notes due 2029 were $4.3 million and $0.6 million , respectively. At December 31, 2018 , the unamortized debt issuance costs and discount related to the 3.90% notes were $5.4 million and $1.6 million , respectively. Bank Debt On February 5, 2019 , we entered into an Amended and Restated Credit Agreement for our senior unsecured revolving credit facility (“Credit Facility”). Among other things, the amended and restated credit facility increased the aggregate commitments to $1.25 billion with an option for us to increase the aggregate commitments to $1.5 billion , and extended the maturity date to February 5, 2024 . There is no borrowing base subject to the discretion of the lenders based on the value of our proved reserves under the Credit Facility. As of December 31, 2019 , we had no bank borrowings outstanding under the Credit Facility, but did have letters of credit of $2.5 million outstanding, leaving an unused borrowing availability of $1.248 billion . During the year ended December 31, 2019 , we borrowed and repaid an aggregate of $2.12 billion , on the Credit Facility to meet cash requirements as needed. At our option, borrowings under the Credit Facility may bear interest at either (a) LIBOR (or an alternate rate determined by the administrative agent for the Credit Facility in accordance with the Credit Facility when LIBOR is no longer available) plus 1.125 - 2.0% based on the credit rating for our senior unsecured long-term debt, or (b) a base rate (as defined in the credit agreement) plus 0.125 - 1.0% , based on the credit rating for our senior unsecured long-term debt. Unused borrowings are subject to a commitment fee of 0.125 - 0.35% , based on the credit rating for our senior unsecured long-term debt. The Credit Facility contains representations, warranties, covenants, and events of default that are customary for investment grade, senior unsecured bank credit agreements, including a financial covenant for the maintenance of a defined total debt-to-capital ratio of no greater than 65% . As of December 31, 2019 , we were in compliance with all of the financial covenants. At December 31, 2019 and 2018 , we had $4.0 million and $2.2 million , respectively, of unamortized debt issuance costs associated with our Credit Facility, which were recorded as assets and included in “Other assets” in our balance sheets. The costs are being amortized to interest expense ratably over the life of the Credit Facility. We incurred $3.0 million in additional debt issuance costs in amending our Credit Facility. Senior Notes On March 8, 2019 , we issued $500.0 million aggregate principal amount of 4.375% senior unsecured notes due March 15, 2029 at 99.862% of par to yield 4.392% per annum. We received $494.7 million in net cash proceeds, after deducting underwriters’ fees, discount, and debt issuance costs. The notes bear an annual interest rate of 4.375% and interest is payable semiannually on March 15 and September 15 , with the first payment made on September 15, 2019 . We used the net proceeds to repay borrowings under our Credit Facility that were used to help fund the Resolute acquisition on March 1, 2019 . The effective interest rate on these notes, including the amortization of debt issuance costs and discount, is 4.50% . On April 10, 2017, we issued $750 million aggregate principal amount of 3.90% senior unsecured notes due May 15, 2027 at 99.748% of par to yield 3.93% per annum. We received $741.8 million in net cash proceeds, after deducting underwriters’ fees, discount, and debt issuance costs. The notes bear an annual interest rate of 3.90% and interest is payable semiannually on May 15 and November 15. The effective interest rate on these notes, including the amortization of debt issuance costs and discount, is 4.01% . Along with cash on hand, we used the proceeds to fund the early extinguishment of $750 million aggregate principal amount of 5.875% notes whose original maturity date was May 1, 2022 . During the year ended December 31, 2017 , we recognized a loss on early extinguishment of debt related to these transactions of $28.2 million , composed primarily of tender and redemption premiums of $22.6 million and the write-off of $5.3 million of unamortized debt issuance costs. In June 2014, we issued $750 million aggregate principal amount of 4.375% senior unsecured notes at par. These notes are due June 1, 2024 and interest is payable semiannually on June 1 and December 1. The effective interest rate on these notes, including the amortization of debt issuance costs, is 4.50% . Each of our senior unsecured notes is governed by an indenture containing certain covenants, events of default, and other restrictive provisions with which we were in compliance as of December 31, 2019 . At December 31, 2019 , we had accrued interest related to our notes of $12.8 million that was included in “Accrued liabilities — Other”. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS We periodically use derivative instruments to mitigate volatility in commodity prices. While the use of these instruments limits the downside risk of adverse price changes, their use may also limit future cash flow from favorable price changes. Depending on changes in oil and gas futures markets and management’s view of underlying supply and demand trends, we may increase or decrease our derivative positions from current levels. As of December 31, 2019 , we have entered into oil and gas collars and oil basis swaps. Under our collars, we receive the difference between the published index price and a floor price if the index price is below the floor price or we pay the difference between the ceiling price and the index price if the index price is above the ceiling price. No amounts are paid or received if the index price is between the floor and the ceiling prices. By using a collar, we have fixed the minimum and maximum prices we can receive on the underlying production. Our basis swaps are settled based on the difference between a published index price plus a fixed differential and the applicable local index price under which the underlying production is sold. By using a basis swap, we have fixed the differential between the published index price and certain of our physical pricing points. For our Permian oil production, the basis swaps fix the price differential between the WTI NYMEX (Cushing Oklahoma) price and the WTI Midland price. For our Permian and Mid-Continent gas production, the contract prices in our collars are consistent with the index prices used to sell our production. The following tables summarize our outstanding derivative contracts as of December 31, 2019 : Oil Collars First Quarter Second Quarter Third Quarter Fourth Quarter Total 2020: WTI (1) Volume (Bbls) 3,549,000 2,821,000 2,116,000 2,116,000 10,602,000 Weighted Avg Price - Floor $ 52.40 $ 50.43 $ 49.80 $ 49.80 $ 50.84 Weighted Avg Price - Ceiling $ 64.48 $ 61.55 $ 60.59 $ 60.59 $ 62.15 2021: WTI (1) Volume (Bbls) 1,350,000 455,000 — — 1,805,000 Weighted Avg Price - Floor $ 49.70 $ 50.00 $ — $ — $ 49.77 Weighted Avg Price - Ceiling $ 59.41 $ 60.14 $ — $ — $ 59.59 ________________________________________ (1) The index price for these collars is West Texas Intermediate (“WTI”) as quoted on the New York Mercantile Exchange (“NYMEX”). Gas Collars First Quarter Second Quarter Third Quarter Fourth Quarter Total 2020: PEPL (1) Volume (MMBtu) 8,190,000 5,460,000 2,760,000 2,760,000 19,170,000 Weighted Avg Price - Floor $ 1.92 $ 1.90 $ 1.85 $ 1.85 $ 1.90 Weighted Avg Price - Ceiling $ 2.36 $ 2.28 $ 2.31 $ 2.31 $ 2.32 Perm EP (2) Volume (MMBtu) 3,640,000 2,730,000 1,840,000 1,840,000 10,050,000 Weighted Avg Price - Floor $ 1.40 $ 1.40 $ 1.35 $ 1.35 $ 1.38 Weighted Avg Price - Ceiling $ 1.79 $ 1.82 $ 1.66 $ 1.66 $ 1.75 Waha (3) Volume (MMBtu) 4,550,000 2,730,000 — — 7,280,000 Weighted Avg Price - Floor $ 1.50 $ 1.57 $ — $ — $ 1.53 Weighted Avg Price - Ceiling $ 1.87 $ 1.97 $ — $ — $ 1.91 2021: PEPL (1) Volume (MMBtu) 900,000 — — — 900,000 Weighted Avg Price - Floor $ 1.85 $ — $ — $ — $ 1.85 Weighted Avg Price - Ceiling $ 2.31 $ — $ — $ — $ 2.31 ________________________________________ (1) The index price for these collars is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (2) The index price for these collars is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (3) The index price for these collars is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC. Oil Basis Swaps First Quarter Second Quarter Third Quarter Fourth Quarter Total 2020: WTI Midland (1) Volume (Bbls) 2,639,000 1,911,000 1,288,000 1,288,000 7,126,000 Weighted Avg Differential (2) $ 0.25 $ 0.30 $ 0.65 $ 0.65 $ 0.40 2021: WTI Midland (1) Volume (Bbls) 540,000 — — — 540,000 Weighted Avg Differential (2) $ 0.56 $ — $ — $ — $ 0.56 ________________________________________ (1) The index price we pay under these basis swaps is WTI Midland as quoted by Argus Americas Crude. (2) The index price we receive under these basis swaps is WTI as quoted on the NYMEX plus the weighted average differential shown in the table. The following table summarizes our derivative contracts entered into subsequent to December 31, 2019 through February 19, 2020: Oil Basis Swaps First Second Third Fourth Total 2020: WTI Midland (1) Volume (Bbls) 300,000 455,000 460,000 460,000 1,675,000 Weighted Avg Differential (2) $ 1.02 $ 1.02 $ 1.02 $ 1.02 $ 1.02 2021: WTI Midland (1) Volume (Bbls) 450,000 455,000 — — 905,000 Weighted Avg Differential (2) $ 1.02 $ 1.02 $ — $ — $ 1.02 ________________________________________ (1) The index price we pay under these basis swaps is WTI Midland as quoted by Argus Americas Crude. (2) The index price we receive under these basis swaps is WTI as quoted on the NYMEX less the weighted average differential shown in the table. Derivative Gains and Losses Net gains and losses on our derivative instruments are a function of fluctuations in the underlying commodity index prices as compared to the contracted prices and the monthly cash settlements (if any) of the instruments. We have elected not to designate our derivatives as hedging instruments for accounting purposes and, therefore, we do not apply hedge accounting treatment to our derivative instruments. Consequently, changes in the fair value of our derivative instruments and cash settlements on the instruments are included as a component of operating costs and expenses as either a net gain or loss on derivative instruments. Cash settlements of our contracts are included in cash flows from operating activities in our statements of cash flows. The following table presents the components of Loss (gain) on derivative instruments, net for the periods indicated. Years Ended December 31, (in thousands) 2019 2018 2017 Decrease (increase) in fair value of derivative instruments, net: Gas contracts $ (13,114 ) $ 15,742 $ (40,226 ) Oil contracts 76,833 (126,130 ) 17,383 63,719 (110,388 ) (22,843 ) Cash payments (receipts) on derivative instruments, net: Gas contracts (40,114 ) (13,794 ) (4,557 ) Oil contracts 53,245 38,223 6,190 13,131 24,429 1,633 Loss (gain) on derivative instruments, net $ 76,850 $ (85,959 ) $ (21,210 ) Derivative Fair Value Our derivative contracts are carried at their fair value on our balance sheet using Level 2 inputs and are subject to master netting arrangements, which allow us to offset recognized asset and liability fair value amounts on contracts with the same counterparty. Our accounting policy is to not offset asset and liability positions in our balance sheets. The following tables present the amounts and classifications of our derivative assets and liabilities as of December 31, 2019 and 2018 , as well as the potential effect of netting arrangements on our recognized derivative asset and liability amounts. December 31, 2019 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 1,624 $ — Gas contracts Current assets — Derivative instruments 16,320 — Oil contracts Non-current assets — Derivative instruments 580 — Oil contracts Current liabilities — Derivative instruments — 16,681 Oil contracts Non-current liabilities — Derivative instruments — 824 Gas contracts Non-current liabilities — Derivative instruments — 194 Total gross amounts presented in the balance sheet 18,524 17,699 Less: gross amounts not offset in the balance sheet (9,865 ) (9,865 ) Net amount $ 8,659 $ 7,834 December 31, 2018 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 94,240 $ — Gas contracts Current assets — Derivative instruments 7,699 — Oil contracts Non-current assets — Derivative instruments 9,246 — Oil contracts Current liabilities — Derivative instruments — 23,378 Gas contracts Current liabilities — Derivative instruments — 4,249 Oil contracts Non-current liabilities — Derivative instruments — 311 Gas contracts Non-current liabilities — Derivative instruments — 1,956 Total gross amounts presented in the balance sheet 111,185 29,894 Less: gross amounts not offset in the balance sheet (29,894 ) (29,894 ) Net amount $ 81,291 $ — We are exposed to financial risks associated with our derivative contracts from non-performance by our counterparties. We mitigate our exposure to any single counterparty by contracting with a number of financial institutions, each of which has a high credit rating and is a member of our bank credit facility. Our member banks do not require us to post collateral for our derivative liability positions, nor do we require our counterparties to post collateral for our benefit. In the future we may enter into derivative instruments with counterparties outside our bank group to obtain competitive terms and to spread counterparty risk. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB has established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs are the highest priority and consist of unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for an asset or liability. The following table provides fair value measurement information for certain assets and liabilities as of December 31, 2019 and 2018 . December 31, 2019 December 31, 2018 (in thousands) Book Value Fair Value Book Value Fair Value Financial Assets (Liabilities): 4.375% Notes due 2024 $ (750,000 ) $ (792,225 ) $ (750,000 ) $ (744,578 ) 3.90% Notes due 2027 $ (750,000 ) $ (778,050 ) $ (750,000 ) $ (701,273 ) 4.375% Notes due 2029 $ (500,000 ) $ (530,400 ) $ — $ — Derivative instruments — assets $ 18,524 $ 18,524 $ 111,185 $ 111,185 Derivative instruments — liabilities $ (17,699 ) $ (17,699 ) $ (29,894 ) $ (29,894 ) Assessing the significance of a particular input to the fair value measurement requires judgment, including the consideration of factors specific to the asset or liability. The fair value (Level 1) of our fixed rate notes was based on quoted market prices. The fair value of our derivative instruments (Level 2) was estimated using discounted cash flow and option pricing models. These models use certain observable variables including forward prices, volatility curves, interest rates, and credit ratings and spreads. The fair value estimates are adjusted relative to non-performance risk as appropriate. See Note 4 for further information on the fair value of our derivative instruments. Other Financial Instruments The carrying amounts of our cash, cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. Included in “Accrued liabilities — Other” at December 31, 2019 are: (i) accrued operating expenses (e.g. production, transportation, and gathering expenses) of approximately $74.7 million and (ii) accrued general and administrative, primarily payroll-related, costs of approximately $43.3 million . Included in “Accrued liabilities — Other” at December 31, 2018 are: (i) accrued operating expenses (e.g. production, transportation, and gathering expenses) of approximately $69.1 million , (ii) accrued general and administrative, primarily payroll-related, costs of approximately $47.4 million , and (iii) an accrual of approximately $35.8 million representing the amount by which checks issued, but not yet presented to our banks, exceeded balances in applicable bank accounts. Most of our accounts receivable balances are uncollateralized and result from transactions with other companies in the oil and gas industry. Concentration of customers may impact our overall credit risk because our customers may be similarly affected by changes in economic or other conditions within the industry. We conduct credit analyses prior to making any sales to new customers or increasing credit for existing customers and may require parent company guarantees, letters of credit, or prepayments when deemed necessary. We routinely assess the recoverability of all material accounts receivable to determine their collectability. We accrue a reserve to the allowance for doubtful accounts when it is probable that a receivable will not be collected and the amount of the reserve may be reasonably estimated. At December 31, 2019 and 2018 , the allowance for doubtful accounts totaled $3.6 million and $2.7 million , respectively. Major Customers In each of the years ended December 31, 2019 , 2018 , and 2017 , we made sales to two customers that each amounted to 10% or more of our consolidated revenues for the respective year. Sales to those two customers accounted for 29% and 25% , respectively, of our consolidated revenues in 2019 , 21% and 23% , respectively, of our consolidated revenues in 2018 , and 13% and 21% , respectively, of our consolidated revenues in 2017 . If any one of our major customers was to stop purchasing our production, we believe there are a number of other purchasers to whom we could sell our production with some delay. If multiple significant customers were to discontinue purchasing our production, we believe there would be challenges initially, but ample markets to handle the disruption. |
STOCK-BASED AND OTHER COMPENSAT
STOCK-BASED AND OTHER COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
STOCK-BASED AND OTHER COMPENSATION | STOCK-BASED AND OTHER COMPENSATION Equity Incentive Plan Our 2019 Equity Incentive Plan (the “2019 Plan”) was approved by stockholders in May 2019 and no awards will be made under our previous plans. Outstanding awards under the previous plans were not impacted. A total of 6.3 million shares of common stock may be issued under the 2019 Plan, including shares available from the previous plans. The 2019 Plan provides for grants of options, stock appreciation rights, restricted stock, restricted stock units, performance stock units, cash awards, and other stock-based awards. Stock-based Compensation Cost We have recognized non-cash stock-based compensation cost as shown below. Historical amounts may not be representative of future amounts as the value of future awards may vary from historical amounts. Years Ended December 31, (in thousands) 2019 2018 2017 Restricted stock awards: Performance stock awards $ 21,590 $ 23,083 $ 26,020 Service-based stock awards 25,611 20,385 19,746 47,201 43,468 45,766 Stock option awards 1,903 2,456 2,599 Total stock compensation cost 49,104 45,924 48,365 Less amounts capitalized to oil and gas properties (22,706 ) (23,029 ) (22,109 ) Stock compensation expense $ 26,398 $ 22,895 $ 26,256 Periodic stock compensation expense will fluctuate based on the grant date fair value of awards, the number of awards, the requisite service period of the awards, employee forfeitures, and the timing of the awards. The increase in total stock compensation cost in 2019 as compared to 2018 is primarily due to performance stock award forfeitures that occurred during 2018 as well as due to expense on awards granted during the periods more than offsetting the expense on awards that vested during the periods. Our a ccounting policy is to account for forfeitures in compensation cost when they occur. We adopted Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) on January 1, 2017. The amendments within ASU 2016-09 related to the timing of when excess tax benefits and tax benefits on dividends on nonvested equity shares are recognized and accounting for forfeitures were adopted using a modified retrospective method. In accordance with this method, we recorded a cumulative-effect adjustment that increased beginning deferred income tax assets by $33.1 million , reduced beginning accumulated deficit by $28.7 million , and increased beginning additional paid-in capital by $4.4 million . Restricted Stock The following table provides information about restricted stock awards granted during the last three years. Years Ended December 31, 2019 2018 2017 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Performance stock awards 264,393 $ 47.66 123,533 $ 90.26 300,525 $ 89.46 Service-based stock awards 681,988 $ 45.88 469,438 $ 81.29 251,312 $ 94.04 Total restricted stock awards 946,381 $ 46.38 592,971 $ 83.16 551,837 $ 91.55 Performance stock awards are granted to eligible executives and are subject to service and market condition-based vesting determined by our stock price performance relative to defined peer groups’ stock price performance. For awards granted prior to 2018, after three years of continued service, an executive will be entitled to vest in 50% to 100% of the award depending on the stock price performance. For awards granted in 2018 and 2019, after three years of continued service, an executive will be entitled to vest in 0% to 200% of the award depending on the stock price performance. In accordance with Internal Revenue Code Section 162(m), certain of the amounts awarded may not be deductible for tax purposes. Service-based stock awards are granted to eligible employees and non-employee directors and have vesting schedules ranging from one to five years . The majority of our service-based stock awards cliff vest five years from the grant date. Compensation cost for the performance stock awards is based on the grant date fair value of the award utilizing a Monte Carlo simulation model. Compensation cost for the service-based stock awards is based upon the grant date market value of the award. Such costs are recognized ratably over the applicable vesting period. The following table provides information on restricted stock activity during the year. Service-based Performance (subject to market conditions) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding as of January 1, 2019 1,135,882 $ 99.12 650,096 $ 100.42 Vested (155,751 ) $ 126.20 (139,723 ) $ 117.63 Granted 681,988 $ 45.88 264,393 $ 47.66 Canceled (1) — $ — (109,789 ) $ 117.63 Forfeited (23,050 ) $ 90.97 — $ — Outstanding as of December 31, 2019 1,639,069 $ 74.51 664,977 $ 72.99 ________________________________________ (1) These performance shares were canceled since the market condition was not satisfied as of the end of the performance period. The total vest date market value of restricted stock that vested during the years ended December 31, 2019 , 2018 , and 2017 was $15.1 million , $34.1 million , and $54.4 million , respectively. Unrecognized compensation cost related to unvested restricted stock at December 31, 2019 was $96.9 million . We expect to recognize that cost over a weighted average period of 2.6 years . Restricted Units As of December 31, 2019 and 2018 , we had 8,838 restricted units outstanding. These represent restricted units held by a non-employee director who has elected to defer payment of common stock represented by the units until termination of his service on the Board of Directors. Stock Options Options outstanding as of December 31, 2019 expire seven to ten years from the grant date and have service-based vesting whereby the awards vest in increments of one-third on each of the first three anniversary dates of the grant. The exercise price for an option under the 2019 Plan and the plan in effect immediately prior to the 2019 Plan, is at least equal to the closing price of our common stock as reported by the New York Stock Exchange (“NYSE”) on the date of grant. The previous plans provided that all grants have an exercise price of the average of the high and low prices of our common stock as reported by the NYSE on the date of grant. Compensation cost related to stock options is based on the grant date fair value of the award and is recognized ratably over the applicable vesting period. We estimate the fair value using the Black-Scholes option-pricing model. Expected volatilities are based on the historical volatility of our common stock. We also use historical data to estimate the expected years until exercise. We use U.S. Treasury bond rates in effect at the grant date for our risk-free interest rates. The following summarizes information regarding options granted, including the assumptions used to determine the fair value of those options. Years Ended December 31, 2019 2018 2017 Options granted 132,900 92,050 96,100 Weighted average grant date fair value $ 12.14 $ 26.71 $ 28.37 Weighted average exercise price $ 42.78 $ 83.28 $ 92.37 Total fair value (in thousands) $ 1,613 $ 2,458 $ 2,727 Expected years until exercise 4.9 5.0 4.5 Expected stock volatility 37.1 % 34.7 % 35.0 % Dividend yield 1.9 % 0.9 % 0.3 % Risk-free interest rate 1.4 % 2.7 % 1.7 % Information about outstanding stock options is summarized below. Number of Options Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) Outstanding as of January 1, 2019 420,332 $ 99.01 Exercised (29,222 ) $ 43.37 Granted 132,900 $ 42.78 Canceled (10,661 ) $ 115.06 Forfeited (17,811 ) $ 90.66 Outstanding as of December 31, 2019 495,538 $ 87.17 4.3 years $ 1,201 Exercisable as of December 31, 2019 287,283 $ 107.97 2.9 years $ — The following table provides information regarding options exercised and the grant date fair value of options vested. Years Ended December 31, (in thousands) 2019 2018 2017 Cash received from option exercises $ 1,267 $ 2,241 $ 394 Intrinsic value of options exercised $ 425 $ 1,030 $ 257 Grant date fair value of options vested $ 2,262 $ 2,547 $ 2,227 The following summary reflects the status of non-vested stock options as of December 31, 2019 and changes during the year. Number of Options Weighted Average Grant Date Fair Value Weighted Average Exercise Price Non-vested as of January 1, 2019 170,241 $ 28.29 $ 91.05 Vested (77,075 ) $ 29.35 $ 95.94 Granted 132,900 $ 12.14 $ 42.78 Forfeited (17,811 ) $ 28.19 $ 90.66 Non-vested as of December 31, 2019 208,255 $ 17.60 $ 58.47 As of December 31, 2019 , there was $2.8 million of unrecognized compensation cost related to non-vested stock options. We expect to recognize that cost over a weighted average period of 2.1 years . Other Compensation We maintain and sponsor a contributory 401(k) plan for our employees. Employer contributions related to the plan were $8.7 million , $13.1 million , and $10.4 million for 2019 , 2018 , and 2017 , respectively. Included in the 2018 and 2017 amounts were accrued employer discretionary contributions. No such employer discretionary contributions were accrued for 2019. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The calculations of basic and diluted net earnings (loss) per common share under the two-class method are presented below. Earnings (loss) per share are based on actual figures rather than the rounded figures presented. Year Ended December 31, 2019 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (124,619 ) Less: dividends attributable to participating securities (1) (1,519 ) Less: preferred stock dividends (5,078 ) Basic loss per share Loss available to common stockholders (131,216 ) 98,789 $ (1.33 ) Effects of dilutive securities Options (2) — — Diluted loss per share Loss available to common stockholders and assumed conversions $ (131,216 ) 98,789 $ (1.33 ) Year Ended December 31, 2018 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 791,851 Less: dividends and net income attributable to participating securities (11,087 ) Basic earnings per share Income available to common stockholders 780,764 93,793 $ 8.32 Effects of dilutive securities Options (2) 3 27 Diluted earnings per share Income available to common stockholders and assumed conversions $ 780,767 93,820 $ 8.32 Year Ended December 31, 2017 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 494,329 Less: dividends and net income attributable to participating securities (8,551 ) Basic earnings per share Income available to common stockholders 485,778 93,466 $ 5.19 Effects of dilutive securities Options (2) 3 43 Diluted earnings per share Income available to common stockholders and assumed conversions $ 485,781 93,509 $ 5.19 ________________________________________ (1) Participating securities do not have a contractual obligation to share in the losses of the entity, therefore, net losses are not attributable to participating securities. (2) Inclusion of certain potential common shares would have an anti-dilutive effect, therefore, these shares were excluded from the calculations of diluted earnings per share. Excluded from the calculation for the year ended December 31, 2019 were 495.5 thousand potential common shares from the assumed exercise of employee stock options, 508.6 thousand potential common shares from the assumed conversion of the Convertible Preferred Stock, and 37.4 thousand potential common shares from the assumed vesting of incremental shares of unvested restricted stock awards. Excluded from the calculations for the years ended December 31, 2018 and 2017 were potential common shares from the assumed exercise of employee stock options of 387.7 thousand and 302.9 thousand |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The following table reflects the components of the change in the carrying amount of the asset retirement obligation for the years ended December 31, 2019 and 2018 . (in thousands) 2019 2018 Asset retirement obligation at January 1, $ 166,904 $ 169,469 Liabilities incurred 21,511 9,899 Liability settlements and disposals (19,595 ) (21,550 ) Accretion expense 7,499 7,318 Revisions of estimated liabilities 5,550 1,768 Asset retirement obligation at December 31, 181,869 166,904 Less current obligation 27,824 14,146 Long-term asset retirement obligation $ 154,045 $ 152,758 For the year ended December 31, 2019 , liabilities incurred included $9.4 million for the Resolute acquisition. For the years ended, December 31, 2019 and 2018 , the liability settlements and disposals included $9.3 million and $13.7 million , respectively, related to properties that were sold. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of the provision for income taxes are as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Current taxes: Federal benefit $ — $ (3,007 ) $ (2,810 ) State expense (benefit) 532 383 (2 ) 532 (2,624 ) (2,812 ) Deferred taxes: Federal (benefit) expense (24,055 ) 211,717 173,859 State (benefit) expense (2,847 ) 21,563 16,620 (26,902 ) 233,280 190,479 $ (26,370 ) $ 230,656 $ 187,667 Federal income tax expense (benefit) for the years presented differs from the amounts that would be provided by applying the U.S. federal income tax rate, primarily due to the effect of state income taxes, non-deductible expenses, and changes in tax laws and tax rates enacted in the period. Reconciliations of the income tax expense (benefit) calculated at the federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 to the total income tax expense (benefit) are as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Provision at statutory rate $ (31,708 ) $ 214,726 $ 238,699 Effect of state taxes (1,717 ) 18,795 10,074 Acquisition-related costs 1,318 — — Tax credits and other permanent differences 2,548 1,583 5,442 Change in valuation allowance, net — (1,376 ) 486 Stock-based compensation 3,189 (3,072 ) (5,888 ) Impact of reduction in federal statutory rate — — (61,146 ) Income tax (benefit) expense $ (26,370 ) $ 230,656 $ 187,667 As a result of the enactment of H.R.1 (Public Law 115-97) on December 22, 2017, we remeasured our deferred tax assets and liabilities as of December 31, 2017 to reflect the reduction in the U.S. income tax rate from 35% to 21% for years after 2017. As a result of this remeasurement, we recorded an income tax benefit of $61.1 million and a corresponding $61.1 million decrease in net deferred tax liabilities as of December 31, 2017. The components of net deferred taxes are as follows: December 31, (in thousands) 2019 2018 Assets: Stock compensation and other accrued amounts $ 31,521 $ 8,229 Net operating loss and other carryforwards, net of valuation allowance 454,743 266,011 Credit carryforward, net of valuation allowance 3,936 3,513 490,200 277,753 Liabilities: Property, plant and equipment (828,624 ) (612,226 ) Net deferred tax liabilities $ (338,424 ) $ (334,473 ) On March 1, 2019, we completed the acquisition of Resolute. For federal income tax purposes, the acquisition was a tax-free merger whereby Cimarex acquired carryover tax basis in Resolute’s tax assets and liabilities. As of December 31, 2019, we recorded a net deferred tax liability of $31.1 million to reflect the difference between the fair value of Resolute’s assets and liabilities recorded in the acquisition and the income tax basis of the assets and liabilities assumed. See Note 13 for more information regarding the preliminary purchase price allocation and subsequent adjustments made to it. The deferred tax liability includes certain deferred tax assets net of valuation allowances. Because the acquisition resulted in a greater than 50% ownership change in Resolute, the tax attributes Cimarex acquired from Resolute are subject to limitation pursuant to Section 382 of the Internal Revenue Code. Our ability to use the Resolute net operating losses (“NOLs”) and credits acquired is limited to an annual amount plus any built-in gains recognized within five years of the ownership change. The annual limitation amount is $19.6 million and the net unrealized built-in gain is projected to be $253.9 million . The acquired Resolute federal NOLs of $746.3 million have been reduced by a $57.6 million valuation allowance. Additionally, a full valuation allowance was recorded on an acquired capital loss carryforward of $67.7 million and enhanced oil recovery credit carryforwards of $4.0 million to reflect the expected tax effect of the Section 382 limitation. The Resolute federal NOLs will begin to expire in 2032. At December 31, 2019 , we had a U.S. net tax operating loss carryforward (including Resolute) of approximately $1.93 billion , which would expire in years 2032 through 2039 . We believe that the carryforward, net of valuation allowance, will be utilized before it expires. We recorded a $9.7 million increase to the net operating loss carryforward at December 31, 2019 and a corresponding $9.7 million increase to the valuation allowance related to state net operating losses. The total valuation allowance on state net operating losses at December 31, 2019 was $119.0 million since it is not more likely than not that these additional state net operating losses will be utilized before they expire. We also had enhanced oil recovery and marginal well credits of $3.9 million at December 31, 2019 . At December 31, 2019 and 2018 , we had no unrecognized tax benefits that would impact our effective rate and we have made no provisions for interest or penalties related to uncertain tax positions. The tax years 2016 through 2018 remain open to examination by the Internal Revenue Service of the United States. We file tax returns with various state taxing authorities which remain open to examination for tax years 2015 through 2018 . We do not anticipate the need for any significant income tax payments in the near term. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments Effective January 1, 2019, we began accounting for leases in accordance with Topic 842, which requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for contracts that provide lessees with the right to control the use of identified assets for periods of greater than 12 months. Prior to January 1, 2019, we accounted for leases in accordance with ASC Topic 840, Leases , under which operating leases were not recorded on the balance sheet. Real Estate Leases We have operating leases for office space in various locations that provide us the right to control the use of the specified office space over the term of the contract. These leases require us to make monthly “base rent” payments, as well as “additional payments” for our share of operating expenses and taxes incurred by the landlord. At our option, the terms of these leases can be renewed for varying periods, and in some cases may be terminated early at our option. As of December 31, 2019 , these leases had remaining lease terms ranging from 4.4 to 6.7 years. These leases do not contain residual value guarantees, options to purchase the underlying office space, or terms or covenants that impose restrictions on our ability to pay dividends, incur debt, or enter into additional leases. We have no subleases of office space. Lease liabilities associated with our real estate leases were recorded at the present value of the estimated future lease payments, after considering the following: • “Base rent” payments are considered fixed lease payments, while “additional payments” are considered variable lease payments. • At commencement of each real estate lease we were not reasonably certain to exercise the option to renew or terminate such lease. • The discount rate used to calculate each lease liability was based on our incremental borrowing rate, which was estimated utilizing trading metrics for our senior unsecured notes as adjusted using relevant market factors to develop a synthetic secured yield curve. • As an accounting policy we have elected not to separate nonlease components from lease components for our real estate class of assets. • Where applicable, we determined that the effect of accounting for the right to use land separately from other lease components would be insignificant. Production-Related Leases We have operating leases for equipment used in connection with our oil and gas production operations, including well-head compressors, pipeline compressors, and artificial lift mechanisms. These leases provide us the right to control the use of explicitly or implicitly identified equipment during the term of the contract. These leases often include an “evergreen” provision that allows the contract term to continue on a month-to-month basis following expiration of the initial term stated in the contract. As of December 31, 2019 , these leases had remaining lease terms ranging from one month to 10.6 years. These leases require us to make monthly payments of fixed amounts, which cover the cost of renting the equipment and, in some cases, the cost of maintaining the leased equipment. These leases do not typically require us to make variable lease payments. These leases do not contain residual value guarantees, options to purchase the underlying equipment, or terms or covenants that impose restrictions on our ability to pay dividends, incur debt, or enter into additional leases. We have no subleases of production-related equipment. Lease liabilities associated with our production-related operating leases were recorded at the present value of the estimated future lease payments, after considering the following: • For leases with an evergreen provision, the term of the lease was determined to be the noncancellable period in the contract plus the period beyond the noncancellable period that we believe it is reasonably certain we will need the equipment for operational purposes, limited to the point in time at which both we and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty. • The discount rate used to calculate each lease liability was based on our incremental borrowing rate, which was estimated utilizing trading metrics for our senior unsecured notes as adjusted using relevant market factors to develop a synthetic secured yield curve. • As an accounting policy, we have elected not to separate nonlease components from lease components for our production-related class of assets. We have one finance lease, which results from a gathering agreement (the “Gathering Agreement”) on a gathering system. Under terms of the Gathering Agreement, we have the option to acquire a portion of the underlying gathering system upon termination of the Gathering Agreement. We make monthly payments under the Gathering Agreement based on the volume of oil gathered and a gathering rate per barrel, which is adjusted periodically. As of December 31, 2019 , this lease had a remaining term of 5.9 years. Exploration and Development-Related Leases We have operating leases for equipment used in connection with our exploration and development activities, including drilling rigs, pressure pumping equipment, directional drilling tools, well-control devices, and various pieces of support equipment. These leases provide us the right to control the use of explicitly or implicitly identified equipment during the term of the contract. As of December 31, 2019 , these leases had remaining lease terms of 12 months or less. These leases typically require us to make payments in amounts based on the usage of the underlying equipment. These leases do not contain residual value guarantees, options to purchase the underlying equipment, or terms or covenants that impose restrictions on our ability to pay dividends, incur debt, or enter into additional leases. We have no subleases of exploration and development-related equipment. As an accounting policy, we have elected not to apply the recognition requirements of Topic 842 to our exploration and development-related class of assets with lease terms at commencement of 12 months or less. As such, we have not recorded any lease liabilities associated with our exploration and development-related leases. In addition, as an accounting policy we have elected not to separate nonlease components from lease components for our exploration and development-related class of assets. Balance Sheet Presentation The following tables present the amounts and classifications of our right-of-use assets and estimated lease liabilities as of December 31, 2019 : (in thousands) Balance Sheet Location December 31, 2019 Operating lease right-of-use assets Non-current assets — Fixed assets, net $ 240,263 Finance lease right-of-use asset Non-current assets — Other assets 24,849 Total right-of-use assets $ 265,112 (in thousands) Balance Sheet Location December 31, 2019 Operating lease liabilities — current Current liabilities — Operating leases $66,003 Operating lease liabilities — non-current Non-current liabilities — Operating leases 184,172 Finance lease liability — current Current liabilities — Accrued liabilities-Other 7,328 Finance lease liability — non-current Non-current liabilities — Other liabilities 18,749 Total lease liabilities $276,252 Lease Cost and Cash Flows The following table summarizes estimated total lease cost, which includes amounts recognized in income and amounts capitalized for the indicated period: (in thousands) Year Ended December 31, 2019 Finance lease cost: Amortization of right-of-use asset $ 4,385 Interest on lease liability 1,719 Operating lease cost: (1) Production expense 20,965 Transportation, processing, and other operating 17,264 Gas gathering and other expense 5,607 General and administrative expense (2) 12,421 Short-term lease cost (3) 539,110 Total lease cost $ 601,471 ________________________________________ (1) Operating lease cost in the table above is composed of costs incurred under real estate and production-related leases. These costs are included in the indicated captions on the Consolidated Statements of Operations and Comprehensive Income (Loss). (2) Includes variable lease costs of $ 3.1 million . (3) Short-term lease cost in the table above is composed of costs incurred under leases with terms of 12 months or less for right-of-use assets used in exploration and development activities. Payments under such leases are typically based on usage of the underlying right-of-use asset and, therefore, are also variable lease payments. These costs are capitalized as part of proved properties on the Consolidated Balance Sheet. The following table summarizes estimated cash paid for our leases for the indicated period: (in thousands) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash outflows from finance lease $ 3,869 Operating cash outflows from operating leases $ 54,044 Cash paid for short-term leases and variable lease payments: Operating cash outflows from operating leases $ 3,103 Investing cash outflows from operating leases $ 551,325 During the year ended December 31, 2019 , we recognized $91.7 million in right-of-use assets in connection with new operating leases entered into during the period. Lease Liability Maturity Analysis The following table presents the weighted-average remaining lease terms and discount rates of our leases as of the indicated date: December 31, 2019 Weighted-average remaining lease term (in years): Finance lease 5.9 Operating leases 4.1 Weighted-average discount rate: Finance lease 5.7 % Operating leases 3.9 % The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities recorded at December 31, 2019 : December 31, 2019 (in thousands) Operating Leases Finance Lease January 1, 2020 — December 31, 2020 $ 75,102 $ 5,944 January 1, 2021 — December 31, 2021 67,027 5,687 January 1, 2022 — December 31, 2022 60,686 5,429 January 1, 2023 — December 31, 2023 38,128 5,171 January 1, 2024 — December 31, 2024 17,851 4,913 Remaining periods 12,426 3,132 Total undiscounted future cash flows 271,220 30,276 Less effects of discounting (21,045 ) (4,199 ) Lease liabilities recognized $ 250,175 $ 26,077 As of December 31, 2018 , the following future minimum cash payments were required under leases for office space: (in thousands) December 31, 2018 2019 $ 9,849 2020 10,790 2021 11,000 2022 11,130 2023 11,433 Remaining periods 20,831 Total future minimum lease payments $ 75,033 In addition, as of December 31, 2018 , we had various contractual commitments for compressor equipment under operating lease arrangements totaling $34.8 million with lease terms expiring from 1 - 35 months after December 31, 2018 . Other Commitments At December 31, 2019 , we had estimated commitments of approximately: (i) $321.7 million to finish drilling, completing, or performing other work on wells and various other infrastructure projects in progress and (ii) $6.6 million to finish gathering system construction in progress. At December 31, 2019 , we had firm sales contracts to deliver approximately 703.7 Bcf of gas over the next 11.5 years . If we do not deliver this gas, our estimated financial commitment, calculated using the January 2020 index price, would be approximately $1.03 billion . The value of this commitment will fluctuate due to price volatility and actual volumes delivered. However, we believe no financial commitment will be due based on our current proved reserves and production levels from which we can fulfill these volumetric obligations. In connection with gas gathering and processing agreements, we have volume commitments over the next 9.0 years . If we do not deliver the committed gas or NGLs, as the case may be, the estimated maximum amount that would be payable under these commitments, calculated as of December 31, 2019 , would be approximately $697.2 million . However, we believe no financial commitment will be due based on our current proved reserves and production levels from which we can fulfill these volumetric obligations. We have minimum volume delivery commitments associated with agreements to reimburse connection costs to various pipelines. If we do not deliver this gas, or oil, as the case may be, the estimated maximum amount that would be payable under these commitments, calculated as of December 31, 2019 , would be approximately $117.6 million . Of this total, we have accrued a liability of $4.5 million representing the estimated amount we will have to pay due to insufficient forecasted volumes at particular connection points. At December 31, 2019 , we have various firm transportation agreements for gas and oil pipeline capacity with end dates ranging from 2020 - 2028 under which we will have to pay an estimated $64.0 million over the remaining terms of the agreements. These agreements were entered into to support our residue gas and oil marketing efforts, and we believe we have sufficient reserves that will utilize this firm transportation. All of the noted commitments were routine and made in the ordinary course of our business. Litigation In the ordinary course of business, we are involved with various litigation matters. When a loss contingency exists, we assess whether it is probable that an asset has been impaired or a liability has been incurred and, if so, we determine if the amount of loss can be reasonably estimated, all in accordance with guidance established by the FASB, and adjust our accruals accordingly. Though some of the related claims may be significant, the resolution of them, we believe, individually or in the aggregate, would not have a material adverse effect on our financial condition or results of operations after consideration of current accruals. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Helmerich & Payne, Inc. (“H&P”) provides contract drilling services to Cimarex. Cimarex incurred drilling costs of approximately $72.8 million , $80.1 million , and $52.6 million related to these services during the years ended December 31, 2019 , 2018 , and 2017 , respectively. The amount incurred in 2019 is included in the short-term lease costs disclosed in Note 10. Hans Helmerich, a director of Cimarex, is Chairman of the Board of Directors of H&P. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Years Ended December 31, (in thousands) 2019 2018 2017 Cash paid during the period for: Interest expense (net of capitalized amounts of $49,944, $19,969, and $23,113, respectively) (1) $ 50,601 $ 45,357 $ 52,245 Income taxes $ 1,364 $ — $ 3 Cash received for income tax refunds $ 2,033 $ 760 $ 111 ________________________________________ (1) The year ended December 31, 2019 includes $17.6 million in interest paid upon the redemption of Resolute’s senior notes and credit facility on March 1, 2019. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES On August 31, 2018 , we closed on the divestiture of oil and gas properties principally located in Ward County, Texas for which we received $534.6 million in net cash proceeds in 2018 as adjusted for customary closing adjustments to reflect an effective date of April 1, 2018 and transaction costs. This divestiture did not significantly alter the relationship between capitalized costs and proved reserves, therefore, in accordance with the full cost method of accounting, no gain or loss was recognized. On March 1, 2019 , we completed the acquisition of Resolute Energy Corporation, an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin area of the Permian Basin of west Texas. The principal factors considered by management in making this acquisition included: (i) our expectation that Resolute’s assets’ attractive returns are competitive with those in our existing portfolio, (ii) the opportunity to apply our experience and learnings from already operating in this area to generating productivity gains from Resolute’s properties, (iii) the ability to increase our acreage position in the Delaware Basin, and (iv) the expectation that the acquisition will be financially accretive. We acquired 100% of the outstanding common shares and voting interests of Resolute in a cash and stock transaction. The acquisition date fair value of the consideration transferred totaled $820.3 million , which consisted of cash, common stock, and a newly created series of preferred stock (see Note 5 for more information on the preferred stock) as follows: (in thousands) Fair Value of Consideration Transferred Cash $ 325,677 Common stock (5,652 shares issued) 413,015 Preferred stock (63 shares issued) 81,620 $ 820,312 The fair value of the common stock issued as part of the consideration was determined on the basis of the closing market price of Cimarex common stock on the acquisition date. The fair value of the preferred stock issued as part of the consideration was determined using a multiple probability simulation model. Preliminary Purchase Price Allocation The Resolute acquisition has been accounted for as a business combination, using the acquisition method. The following table presents the preliminary allocation of the Resolute purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded to goodwill. The table also presents the adjustments to the preliminary purchase price allocation recorded through December 31, 2019 . The most significant adjustment was made to reduce the fair value of the unproved oil and gas properties acquired by $30.3 million based on the finalization of the quantity of acres acquired. The tax effect of this adjustment reduced the related deferred tax liability by $6.9 million . The completion of the final Resolute tax returns provided the underlying tax basis of Resolute’s assets and liabilities and net operating losses and resulted in a reduction of the deferred tax liability of $24.4 million . The remaining adjustments were related to finalization of some working capital balances. The offset to all of the adjustments is goodwill. The purchase price allocation remains preliminary as certain data necessary to finalize pre-acquisition working capital balances is not yet available. We expect to complete the purchase price allocation during the 12 -month period following the acquisition date, during which time the value of the assets and liabilities may be revised as appropriate. The following table sets forth the preliminary purchase price allocation: (in thousands) March 1, 2019 Adjustments December 31, 2019 Cash $ 41,236 $ — $ 41,236 Accounts receivable 50,739 11,463 62,202 Other current assets 13,280 (1,260 ) 12,020 Proved oil and gas properties 692,600 — 692,600 Unproved oil and gas properties 1,054,200 (30,314 ) 1,023,886 Fixed assets 5,355 (32 ) 5,323 Goodwill 107,341 (10,708 ) 96,633 Other assets 142 — 142 Current liabilities (202,735 ) (486 ) (203,221 ) Long-term debt (870,000 ) — (870,000 ) Deferred income taxes (62,409 ) 31,337 (31,072 ) Asset retirement obligation (9,437 ) — (9,437 ) Total identifiable net assets $ 820,312 $ — $ 820,312 In connection with the acquisition, we assumed, and immediately repaid, $870.0 million principal amount of long-term debt consisting of $600.0 million of senior notes and $270.0 million of credit facility borrowings. On March 1, 2019 , we repaid Resolute’s credit facility borrowings, delivered a notice of optional redemption of Resolute’s senior notes for an April 1, 2019 redemption date, and irrevocably deposited with a trustee the full amount of funds to repay the aggregate outstanding senior notes principal balance plus accrued and unpaid interest, incurring a $4.3 million loss on early extinguishment of debt. The cash consideration transferred and the repayment of Resolute’s long-term debt was funded using cash on hand and borrowings on our Credit Facility. We subsequently repaid the borrowings on our Credit Facility using the net proceeds from the March 8, 2019 issuance of $500.0 million aggregate principal amount of 4.375% senior unsecured notes (see Note 3 for more information on our debt issuance). Goodwill of $96.6 million has been recognized principally as a result of recording net deferred tax liabilities arising from the difference between the tax basis and the purchase price allocated to Resolute’s assets and liabilities, and anticipated opportunities for cost savings through administrative and operational synergies. Goodwill is not expected to be deductible for tax purposes. Acquisition-related costs incurred were $11.4 million , with $8.4 million expensed in 2019 and $3.0 million expensed in 2018. These costs, which were comprised primarily of advisory and legal fees, are included in the Other operating expense, net line item on our Consolidated Statements of Operations and Comprehensive Income (Loss). The results of Resolute’s operations have been included in our consolidated financial statements since the March 1, 2019 acquisition date. The amount of revenue and direct operating expenses resulting from the acquisition included in our Consolidated Statements of Operations and Comprehensive Income (Loss) from March 1, 2019 through December 31, 2019 is $203.6 million and $51.0 million , respectively. Pro Forma Financial Information (Unaudited) The following supplemental pro forma information for the years ended December 31, 2019 and 2018 has been prepared to give effect to the Resolute acquisition as if it had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including (i) the depletion of the combined company’s proved oil and gas properties, (ii) the capitalization of interest expense, and (iii) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by Cimarex of $11.4 million and transaction-related costs incurred by Resolute of $66.6 million . The pro forma results of operations do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by Cimarex to integrate the Resolute assets. The pro forma financial data has not been adjusted to reflect any other acquisitions or dispositions made during the periods presented as their results were not deemed material. The pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2018 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected in the following pro forma information because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities, and other factors. Years Ended December 31, (in thousands, except per share information) 2019 2018 Revenue $ 2,416,105 $ 2,667,561 Net (loss) income $ (139,553 ) $ 872,140 Net (loss) income per common share: Basic $ (1.47 ) $ 8.65 Diluted $ (1.47 ) $ 8.65 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. Our significant accounting policies are discussed below. The accounts of Cimarex and its subsidiaries are presented in the accompanying Consolidated Financial Statements. All intercompany accounts and transactions were eliminated in consolidation. |
Segment Information | Segment Information We have determined that our business is comprised of only one segment because our gathering, processing, and marketing activities are ancillary to our oil and gas production operations. |
Use of Estimates | Use of Estimates The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. Areas of significance requiring the use of management’s judgments include the estimation of proved oil and gas reserves used in calculating depletion, the estimation of future net revenues used in computing ceiling test limitations, the estimation of future abandonment obligations used in recording asset retirement obligations, and the assessment of goodwill. Estimates and judgments also are required in determining allowances for doubtful accounts, impairments of unproved properties and other assets, valuation of deferred tax assets, fair value measurements, lease liabilities, and contingencies. We analyze our estimates and base them on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The process of estimating quantities of oil and gas reserves is complex, requiring significant decisions in the evaluation of all available geological, geophysical, engineering, and economic data. The data for a given field may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history, and continual reassessment of the viability of production under varying economic conditions. As a result, material revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure that our reserve estimates represent the most accurate assessments possible, subjective decisions, and available data for our various fields make these estimates generally less precise than other estimates included in financial statement disclosures. |
Prior Year Reclassifications | Prior Year Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the 2019 financial statement presentation. These reclassifications include reclassifying certain Gas gathering and other expenses to Transportation, processing, and other operating expense and Production expense. These reclassifications were made to reflect an allocation of the costs incurred to operate our gas gathering facilities as a cost to transport our equity share of gas produced and operate our wells. The following table shows the reclassifications made: |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and investments readily convertible into cash, which have original maturities of three months or less. Cash equivalents are stated at cost, which approximates market value. |
Oil and Gas Properties | Oil and Gas Well Equipment and Supplies Our oil and gas well equipment and supplies are valued at the lower of cost and net realizable value, where net realizable value is based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Declines in the price of oil and gas well equipment and supplies in future periods could cause us to recognize impairments on these assets. An impairment would not affect cash flow from operating activities, but would adversely affect our net income and stockholders’ equity. Oil and Gas Properties We use the full cost method of accounting for our oil and gas operations. All costs associated with property acquisition, exploration, and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities, and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the acquisition, exploration, and development of properties, as well as other internal costs that can be directly identified with acquisition, exploration and development activities, are also capitalized. Under the full cost method of accounting, no gain or loss is recognized upon the disposition of oil and gas properties unless such disposition would significantly alter the relationship between capitalized costs and proved reserves. Expenditures for maintenance and repairs are charged to production expense in the period incurred. Under the full cost method of accounting, we are required to perform quarterly ceiling test calculations to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties, as adjusted for income taxes, exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of: (i) the present value discounted at 10% of estimated future net revenues from proved reserves, (ii) the cost of properties not being amortized, and (iii) the lower of cost or estimated fair value of unproven properties included in the costs being amortized, as adjusted for income taxes. We currently do not have any unproven properties that are being amortized. Estimated future net revenues are determined based on trailing twelve-month average commodity prices and estimated proved reserve quantities, operating costs, and capital expenditures. For the year ended December 31, 2019 , we recognized a ceiling test impairment of $618.7 million , all of which was recognized in the fourth quarter. The impairment resulted primarily from the impact of decreases in the 12-month average trailing prices for oil, natural gas, and NGLs as well as significant basis differentials utilized in determining the estimated future net cash flows from proved reserves. We did not recognize a ceiling test impairment during the years ended December 31, 2018 and 2017 because the net capitalized cost of our oil and gas properties, as adjusted for income taxes, did not exceed the ceiling limitation. The quarterly ceiling test is primarily impacted by commodity prices, changes in estimated reserve quantities, reserves produced, overall exploration and development costs, depletion expense, and deferred taxes. If pricing conditions decline, or if there is a negative impact on one or more of the other components of the calculation, we may incur full cost ceiling test impairments in future quarters. The calculated ceiling limitation is not intended to be indicative of the fair market value of our proved reserves or future results. Impairment charges do not affect cash flow from operating activities, but do adversely affect our net income and various components of our balance sheet. Any impairment of oil and gas properties is not reversible at a later date. Depletion of proved oil and gas properties is computed on the units-of-production method, whereby capitalized costs, including future development costs and asset retirement costs, are amortized over total estimated proved reserves. Changes in our estimate of proved reserve quantities and impairment of oil and gas properties will cause corresponding changes in depletion expense in periods subsequent to these changes. The capitalized costs of unproved properties, including those in wells in progress, are excluded from the costs being amortized. We do not have major development projects that are excluded from costs being amortized. On a quarterly basis, we evaluate excluded costs for inclusion in the costs to be amortized. Significant unproved properties are evaluated individually. Unproved properties that are not considered individually significant are aggregated for evaluation purposes and related costs are transferred to the costs to be amortized quarterly based on the application of historical factors. |
Fixed Assets | Fixed Assets Fixed assets consist primarily of gathering and plant facilities, vehicles, airplanes, office furniture, and computer equipment and software. These items are recorded at cost and are depreciated on the straight-line method based on expected lives of the individual assets, which range from 3 to 30 years |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of business combinations over the fair value of the net assets acquired and is tested for impairment at least annually. In performing the goodwill test, we compare the fair value of our reporting unit with its carrying amount. If the carrying amount of the reporting unit were to exceed its fair value, an impairment charge would be recognized in the amount of this excess, limited to the total amount of goodwill allocated to that reporting unit. We evaluate our goodwill for impairment in the fourth quarter of each year and whenever events or changes in circumstances indicate the possibility that goodwill may be impaired. Based upon our assessment as of October 31, 2019, goodwill was not impaired. It is possible that goodwill could become impaired in the future if commodity prices or other economic factors become unfavorable. |
Revenue Recognition | Revenue Recognition Oil, Gas, and NGL Sales Effective January 1, 2018, we adopted the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers (“Topic 606”), utilizing the modified retrospective approach, which we applied to contracts that were not completed as of that date. Because we utilized the modified retrospective approach, there was no impact to prior periods’ reported amounts. Application of Topic 606 has no impact on our net income or cash flows from operations; however, certain costs classified as Transportation, processing, and other operating in the Consolidated Statements of Operations and Comprehensive Income (Loss) under prior accounting standards are now reflected as deductions from revenue under Topic 606. Revenue is recognized from the sales of oil, gas, and NGLs when the customer obtains control of the product, when we have no further obligations to perform related to the sale, and when collectability is probable. All of our sales of oil, gas, and NGLs are made under contracts with customers, which typically include variable consideration based on monthly pricing tied to local indices and monthly volumes delivered. The nature of our contracts with customers does not require us to constrain that variable consideration or to estimate the amount of transaction price attributable to future performance obligations for accounting purposes. As of December 31, 2019 , we had open contracts with customers with terms of one month to multiple years, as well as “evergreen” contracts that renew on a periodic basis if not canceled by us or the customer. Performance obligations under our contracts with customers are typically satisfied at a point-in-time through monthly delivery of oil, gas, and/or NGLs. Our contracts with customers typically require payment within one month of delivery. Our gas and NGLs are sold under a limited number of contract structure types common in our industry. Under these contracts the gas and its components, including NGLs, may be sold to a single purchaser or the residue gas and NGLs may be sold to separate purchasers. Regardless of the contract structure type, the terms of these contracts compensate us for the value of the residue gas and NGLs at current market prices for each product. However, depending on the contract structure type, certain transportation, processing, and other charges may be deducted against the prices received for the product. Our oil typically is sold at specific delivery points under contract terms that also are common in our industry. Gas Gathering When we transport and/or process third-party gas associated with our equity gas, we recognize revenue for the fees charged to third-parties for such services. Gas Marketing When we market and sell gas for working interest owners, we act as agent under short-term sales and supply agreements and may earn a fee for such services. Revenues from such services are recognized as gas is delivered. Gas Imbalances Revenue from the sale of gas is recorded on the basis of gas actually sold by us. If our aggregate sales volumes for a well are greater (or less) than our proportionate share of production from the well, a liability (or receivable) is established to the extent there are insufficient proved reserves available to make-up the overproduced (or underproduced) imbalance. Imbalances have not been significant in the periods presented. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses are reported net of amounts reimbursed by working interest owners of the oil and gas properties operated by Cimarex and net of amounts capitalized pursuant to the full cost method of accounting. |
Derivatives | Derivatives Our derivative contracts are recorded on the balance sheet at fair value. Our firm sales contracts qualify for the normal purchase and normal sale exception. Contracts that qualify for this treatment do not require mark-to-market accounting treatment. See Note 4 for additional information regarding our derivative instruments. |
Income Taxes | Income Taxes We record deferred tax assets and liabilities to account for the expected future tax consequences of events that have been recognized in the financial statements and tax returns. We classify all deferred tax assets and liabilities as non-current. We routinely assess the realizability of our deferred tax assets. Numerous judgments and assumptions are inherent in this assessment, including the determination of future taxable income, which is affected by factors such as future operating conditions (particularly as related to prevailing oil and gas prices) and changing tax laws. If we conclude that it is more likely than not that some or all of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. We regularly assess and, if required, establish accruals for tax contingencies that could result from assessments of additional tax by taxing jurisdictions where the company operates. See Note 9 for additional information regarding our income taxes. |
Contingencies | Contingencies A provision for contingencies is charged to expense when the loss is probable and the cost can be reasonably estimated. Determining when expenses should be recorded for these contingencies and the appropriate amounts for accrual is a complex estimation process that includes subjective judgment. In many cases, this judgment is based on interpretation of laws and regulations, which can be interpreted differently by regulators and/or courts of law. We closely monitor known and potential legal, environmental, and other contingencies and determine when we should record losses for these items based on information available to us. See Note 10 for additional information regarding our contingencies. |
Asset Retirement Obligations | Asset Retirement Obligations We recognize the present value of the fair value of liabilities for retirement obligations associated with tangible long-lived assets in the period in which there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. This liability includes costs related to the abandonment of wells, the removal of facilities and equipment, and site restorations. In periods subsequent to the initial measurement of an asset retirement obligation at present value, a period-to-period increase in the carrying amount of the liability is recognized as accretion expense, which represents the effect of the passage of time on the amount of the liability. An equivalent amount is added to the carrying amount of the liability. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement capitalized cost. Capitalized costs are included as a component of the DD&A calculations. The current portion of our asset retirement obligations is recorded in “Accrued liabilities — Other” in the accompanying Consolidated Balance Sheets and cash payments for settlements of retirement obligations are classified as cash used in operating activities in the accompanying Consolidated Statements of Cash Flows. See Note 8 for additional information regarding our asset retirement obligations. |
Stock-based Compensation | Stock-based Compensation We recognize compensation cost related to all stock-based awards in the financial statements based on their estimated grant date fair value. We grant various types of stock-based awards including stock options, restricted stock (including awards with service-based vesting and market condition-based vesting provisions), and restricted stock units. The grant date fair value of stock option awards is determined using the Black-Scholes option pricing model. Service-based restricted stock and units are valued using the market price of our common stock on the grant date. The grant date fair value of the market condition-based restricted stock incorporates the effect of the market condition using valuation techniques that take into consideration various share-price paths. Compensation cost is recognized ratably over the applicable vesting period. To the extent compensation cost relates to employees directly involved in oil and gas acquisition, exploration, and development activities, such amounts are capitalized to oil and gas properties. Amounts not capitalized to oil and gas properties are recognized as stock compensation expense. See Note 6 for additional information regarding our stock-based compensation. |
Earnings (Loss) per Share | Earnings (Loss) per Share We calculate earnings (loss) per share recognizing that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, should be included in computing earnings per share using the two-class earnings allocation method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Our unvested share-based payment awards, consisting of restricted stock and units, qualify as participating securities. See Note 7 for additional information regarding our earnings per share. |
Lease Accounting | Lease Accounting In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842”). The FASB subsequently issued various ASUs that provided additional implementation guidance. Topic 842 requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for contracts that provide lessees with the right to control the use of identified assets for a period of time. The scope of Topic 842 excludes leases to explore for or use minerals, oil, natural gas, and similar nonregenerative resources. We adopted Topic 842 effective January 1, 2019, using the modified retrospective method applied to all leases that existed on that date, which resulted in the recognition of lease liabilities of $276.9 million and right-of-use assets of $265.0 million . In connection with adoption we made use of the following practical expedients, which are provided in Topic 842: • a package of practical expedients to not reassess: 1) whether expired or existing contracts are or contain a lease, 2) lease classification for expired or existing leases, and 3) initial direct costs for existing leases; • an election not to apply the recognition requirements in Topic 842 to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that the company is reasonably certain to exercise); • a practical expedient that permits combining lease and nonlease components in a contract and accounting for the combination as a lease (elected by asset class); and • a practical expedient to not reassess certain land easements in existence prior to January 1, 2019. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Reclassifications Made | The following table shows the reclassifications made: Years Ended December 31, 2018 2017 (in thousands) Prior Year Presentation Current Year Reclassifications Current Year Presentation Prior Year Presentation Current Year Reclassifications Current Year Presentation Production $ 293,213 $ 2,976 $ 296,189 $ 262,180 $ 1,169 $ 263,349 Transportation, processing, and other operating $ 200,802 10,661 $ 211,463 $ 231,640 16,484 $ 248,124 Gas gathering and other $ 41,964 (13,637 ) $ 28,327 $ 35,840 (17,653 ) $ 18,187 $ — $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-Term Debt | Long-term debt at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 (in thousands) Principal Unamortized Debt Issuance Costs and Discounts (1) Long-term Debt, net Principal Unamortized Debt Issuance Costs and Discount (1) Long-term Debt, net 4.375% notes due 2024 $ 750,000 $ (3,535 ) $ 746,465 $ 750,000 $ (4,439 ) $ 745,561 3.90% notes due 2027 750,000 (6,289 ) 743,711 750,000 (7,007 ) 742,993 4.375% notes due 2029 500,000 (4,930 ) 495,070 — — — Total long-term debt $ 2,000,000 $ (14,754 ) $ 1,985,246 $ 1,500,000 $ (11,446 ) $ 1,488,554 ________________________________________ (1) The 4.375% notes due 2024 were issued at par , therefore, the amounts shown in the table are for unamortized debt issuance costs only. At December 31, 2019 , the unamortized debt issuance costs and discount related to the 3.90% notes were $4.8 million and $1.5 million , respectively. At December 31, 2019 , the unamortized debt issuance costs and discount related to the 4.375% notes due 2029 were $4.3 million and $0.6 million , respectively. At December 31, 2018 , the unamortized debt issuance costs and discount related to the 3.90% notes were $5.4 million and $1.6 million , respectively. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Schedule of Outstanding Derivative Contracts | The following tables summarize our outstanding derivative contracts as of December 31, 2019 : Oil Collars First Quarter Second Quarter Third Quarter Fourth Quarter Total 2020: WTI (1) Volume (Bbls) 3,549,000 2,821,000 2,116,000 2,116,000 10,602,000 Weighted Avg Price - Floor $ 52.40 $ 50.43 $ 49.80 $ 49.80 $ 50.84 Weighted Avg Price - Ceiling $ 64.48 $ 61.55 $ 60.59 $ 60.59 $ 62.15 2021: WTI (1) Volume (Bbls) 1,350,000 455,000 — — 1,805,000 Weighted Avg Price - Floor $ 49.70 $ 50.00 $ — $ — $ 49.77 Weighted Avg Price - Ceiling $ 59.41 $ 60.14 $ — $ — $ 59.59 ________________________________________ (1) The index price for these collars is West Texas Intermediate (“WTI”) as quoted on the New York Mercantile Exchange (“NYMEX”). Gas Collars First Quarter Second Quarter Third Quarter Fourth Quarter Total 2020: PEPL (1) Volume (MMBtu) 8,190,000 5,460,000 2,760,000 2,760,000 19,170,000 Weighted Avg Price - Floor $ 1.92 $ 1.90 $ 1.85 $ 1.85 $ 1.90 Weighted Avg Price - Ceiling $ 2.36 $ 2.28 $ 2.31 $ 2.31 $ 2.32 Perm EP (2) Volume (MMBtu) 3,640,000 2,730,000 1,840,000 1,840,000 10,050,000 Weighted Avg Price - Floor $ 1.40 $ 1.40 $ 1.35 $ 1.35 $ 1.38 Weighted Avg Price - Ceiling $ 1.79 $ 1.82 $ 1.66 $ 1.66 $ 1.75 Waha (3) Volume (MMBtu) 4,550,000 2,730,000 — — 7,280,000 Weighted Avg Price - Floor $ 1.50 $ 1.57 $ — $ — $ 1.53 Weighted Avg Price - Ceiling $ 1.87 $ 1.97 $ — $ — $ 1.91 2021: PEPL (1) Volume (MMBtu) 900,000 — — — 900,000 Weighted Avg Price - Floor $ 1.85 $ — $ — $ — $ 1.85 Weighted Avg Price - Ceiling $ 2.31 $ — $ — $ — $ 2.31 ________________________________________ (1) The index price for these collars is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (2) The index price for these collars is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (3) The index price for these collars is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC. Oil Basis Swaps First Quarter Second Quarter Third Quarter Fourth Quarter Total 2020: WTI Midland (1) Volume (Bbls) 2,639,000 1,911,000 1,288,000 1,288,000 7,126,000 Weighted Avg Differential (2) $ 0.25 $ 0.30 $ 0.65 $ 0.65 $ 0.40 2021: WTI Midland (1) Volume (Bbls) 540,000 — — — 540,000 Weighted Avg Differential (2) $ 0.56 $ — $ — $ — $ 0.56 ________________________________________ (1) The index price we pay under these basis swaps is WTI Midland as quoted by Argus Americas Crude. (2) The index price we receive under these basis swaps is WTI as quoted on the NYMEX plus the weighted average differential shown in the table. The following table summarizes our derivative contracts entered into subsequent to December 31, 2019 through February 19, 2020: Oil Basis Swaps First Second Third Fourth Total 2020: WTI Midland (1) Volume (Bbls) 300,000 455,000 460,000 460,000 1,675,000 Weighted Avg Differential (2) $ 1.02 $ 1.02 $ 1.02 $ 1.02 $ 1.02 2021: WTI Midland (1) Volume (Bbls) 450,000 455,000 — — 905,000 Weighted Avg Differential (2) $ 1.02 $ 1.02 $ — $ — $ 1.02 ________________________________________ (1) The index price we pay under these basis swaps is WTI Midland as quoted by Argus Americas Crude. |
Schedule of Net (Gains) and Losses from Settlements and Changes of Derivative Contracts | The following table presents the components of Loss (gain) on derivative instruments, net for the periods indicated. Years Ended December 31, (in thousands) 2019 2018 2017 Decrease (increase) in fair value of derivative instruments, net: Gas contracts $ (13,114 ) $ 15,742 $ (40,226 ) Oil contracts 76,833 (126,130 ) 17,383 63,719 (110,388 ) (22,843 ) Cash payments (receipts) on derivative instruments, net: Gas contracts (40,114 ) (13,794 ) (4,557 ) Oil contracts 53,245 38,223 6,190 13,131 24,429 1,633 Loss (gain) on derivative instruments, net $ 76,850 $ (85,959 ) $ (21,210 ) |
Schedule of Amounts and Classifications of Derivative Assets and Liabilities | The following tables present the amounts and classifications of our derivative assets and liabilities as of December 31, 2019 and 2018 , as well as the potential effect of netting arrangements on our recognized derivative asset and liability amounts. December 31, 2019 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 1,624 $ — Gas contracts Current assets — Derivative instruments 16,320 — Oil contracts Non-current assets — Derivative instruments 580 — Oil contracts Current liabilities — Derivative instruments — 16,681 Oil contracts Non-current liabilities — Derivative instruments — 824 Gas contracts Non-current liabilities — Derivative instruments — 194 Total gross amounts presented in the balance sheet 18,524 17,699 Less: gross amounts not offset in the balance sheet (9,865 ) (9,865 ) Net amount $ 8,659 $ 7,834 December 31, 2018 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 94,240 $ — Gas contracts Current assets — Derivative instruments 7,699 — Oil contracts Non-current assets — Derivative instruments 9,246 — Oil contracts Current liabilities — Derivative instruments — 23,378 Gas contracts Current liabilities — Derivative instruments — 4,249 Oil contracts Non-current liabilities — Derivative instruments — 311 Gas contracts Non-current liabilities — Derivative instruments — 1,956 Total gross amounts presented in the balance sheet 111,185 29,894 Less: gross amounts not offset in the balance sheet (29,894 ) (29,894 ) Net amount $ 81,291 $ — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Information for Certain Assets and Liabilities | The following table provides fair value measurement information for certain assets and liabilities as of December 31, 2019 and 2018 . December 31, 2019 December 31, 2018 (in thousands) Book Value Fair Value Book Value Fair Value Financial Assets (Liabilities): 4.375% Notes due 2024 $ (750,000 ) $ (792,225 ) $ (750,000 ) $ (744,578 ) 3.90% Notes due 2027 $ (750,000 ) $ (778,050 ) $ (750,000 ) $ (701,273 ) 4.375% Notes due 2029 $ (500,000 ) $ (530,400 ) $ — $ — Derivative instruments — assets $ 18,524 $ 18,524 $ 111,185 $ 111,185 Derivative instruments — liabilities $ (17,699 ) $ (17,699 ) $ (29,894 ) $ (29,894 ) |
STOCK-BASED AND OTHER COMPENS_2
STOCK-BASED AND OTHER COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Recognition of Non-Cash Stock-Based Compensation Cost | We have recognized non-cash stock-based compensation cost as shown below. Historical amounts may not be representative of future amounts as the value of future awards may vary from historical amounts. Years Ended December 31, (in thousands) 2019 2018 2017 Restricted stock awards: Performance stock awards $ 21,590 $ 23,083 $ 26,020 Service-based stock awards 25,611 20,385 19,746 47,201 43,468 45,766 Stock option awards 1,903 2,456 2,599 Total stock compensation cost 49,104 45,924 48,365 Less amounts capitalized to oil and gas properties (22,706 ) (23,029 ) (22,109 ) Stock compensation expense $ 26,398 $ 22,895 $ 26,256 |
Schedule of Restricted Stock Awards Granted | The following table provides information about restricted stock awards granted during the last three years. Years Ended December 31, 2019 2018 2017 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Performance stock awards 264,393 $ 47.66 123,533 $ 90.26 300,525 $ 89.46 Service-based stock awards 681,988 $ 45.88 469,438 $ 81.29 251,312 $ 94.04 Total restricted stock awards 946,381 $ 46.38 592,971 $ 83.16 551,837 $ 91.55 |
Schedule of Restricted Stock Rollforward | The following table provides information on restricted stock activity during the year. Service-based Performance (subject to market conditions) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding as of January 1, 2019 1,135,882 $ 99.12 650,096 $ 100.42 Vested (155,751 ) $ 126.20 (139,723 ) $ 117.63 Granted 681,988 $ 45.88 264,393 $ 47.66 Canceled (1) — $ — (109,789 ) $ 117.63 Forfeited (23,050 ) $ 90.97 — $ — Outstanding as of December 31, 2019 1,639,069 $ 74.51 664,977 $ 72.99 ________________________________________ (1) These performance shares were canceled since the market condition was not satisfied as of the end of the performance period. |
Schedule of Options Granted, Weighted-Average Grant-Date Fair Value, Total Fair Value of the Options and Assumptions used to Determine Fair Market Value of those Options | The following summarizes information regarding options granted, including the assumptions used to determine the fair value of those options. Years Ended December 31, 2019 2018 2017 Options granted 132,900 92,050 96,100 Weighted average grant date fair value $ 12.14 $ 26.71 $ 28.37 Weighted average exercise price $ 42.78 $ 83.28 $ 92.37 Total fair value (in thousands) $ 1,613 $ 2,458 $ 2,727 Expected years until exercise 4.9 5.0 4.5 Expected stock volatility 37.1 % 34.7 % 35.0 % Dividend yield 1.9 % 0.9 % 0.3 % Risk-free interest rate 1.4 % 2.7 % 1.7 % |
Schedule of Outstanding Stock Options Rollforward | Information about outstanding stock options is summarized below. Number of Options Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) Outstanding as of January 1, 2019 420,332 $ 99.01 Exercised (29,222 ) $ 43.37 Granted 132,900 $ 42.78 Canceled (10,661 ) $ 115.06 Forfeited (17,811 ) $ 90.66 Outstanding as of December 31, 2019 495,538 $ 87.17 4.3 years $ 1,201 Exercisable as of December 31, 2019 287,283 $ 107.97 2.9 years $ — |
Schedule of Information regarding Options Exercised and Grant-Date Fair Value of Options Vested | The following table provides information regarding options exercised and the grant date fair value of options vested. Years Ended December 31, (in thousands) 2019 2018 2017 Cash received from option exercises $ 1,267 $ 2,241 $ 394 Intrinsic value of options exercised $ 425 $ 1,030 $ 257 Grant date fair value of options vested $ 2,262 $ 2,547 $ 2,227 |
Schedule of Non-Vested Stock Options Rollforward | The following summary reflects the status of non-vested stock options as of December 31, 2019 and changes during the year. Number of Options Weighted Average Grant Date Fair Value Weighted Average Exercise Price Non-vested as of January 1, 2019 170,241 $ 28.29 $ 91.05 Vested (77,075 ) $ 29.35 $ 95.94 Granted 132,900 $ 12.14 $ 42.78 Forfeited (17,811 ) $ 28.19 $ 90.66 Non-vested as of December 31, 2019 208,255 $ 17.60 $ 58.47 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted Net Earnings (Loss) per Common Share | The calculations of basic and diluted net earnings (loss) per common share under the two-class method are presented below. Earnings (loss) per share are based on actual figures rather than the rounded figures presented. Year Ended December 31, 2019 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (124,619 ) Less: dividends attributable to participating securities (1) (1,519 ) Less: preferred stock dividends (5,078 ) Basic loss per share Loss available to common stockholders (131,216 ) 98,789 $ (1.33 ) Effects of dilutive securities Options (2) — — Diluted loss per share Loss available to common stockholders and assumed conversions $ (131,216 ) 98,789 $ (1.33 ) Year Ended December 31, 2018 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 791,851 Less: dividends and net income attributable to participating securities (11,087 ) Basic earnings per share Income available to common stockholders 780,764 93,793 $ 8.32 Effects of dilutive securities Options (2) 3 27 Diluted earnings per share Income available to common stockholders and assumed conversions $ 780,767 93,820 $ 8.32 Year Ended December 31, 2017 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 494,329 Less: dividends and net income attributable to participating securities (8,551 ) Basic earnings per share Income available to common stockholders 485,778 93,466 $ 5.19 Effects of dilutive securities Options (2) 3 43 Diluted earnings per share Income available to common stockholders and assumed conversions $ 485,781 93,509 $ 5.19 ________________________________________ (1) Participating securities do not have a contractual obligation to share in the losses of the entity, therefore, net losses are not attributable to participating securities. (2) Inclusion of certain potential common shares would have an anti-dilutive effect, therefore, these shares were excluded from the calculations of diluted earnings per share. Excluded from the calculation for the year ended December 31, 2019 were 495.5 thousand potential common shares from the assumed exercise of employee stock options, 508.6 thousand potential common shares from the assumed conversion of the Convertible Preferred Stock, and 37.4 thousand potential common shares from the assumed vesting of incremental shares of unvested restricted stock awards. Excluded from the calculations for the years ended December 31, 2018 and 2017 were potential common shares from the assumed exercise of employee stock options of 387.7 thousand and 302.9 thousand , respectively. See Note 2 for further information regarding our Convertible Preferred Stock and Note 6 for further information regarding our stock awards. |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Change in the Carrying Amount of the Asset Retirement Obligation | The following table reflects the components of the change in the carrying amount of the asset retirement obligation for the years ended December 31, 2019 and 2018 . (in thousands) 2019 2018 Asset retirement obligation at January 1, $ 166,904 $ 169,469 Liabilities incurred 21,511 9,899 Liability settlements and disposals (19,595 ) (21,550 ) Accretion expense 7,499 7,318 Revisions of estimated liabilities 5,550 1,768 Asset retirement obligation at December 31, 181,869 166,904 Less current obligation 27,824 14,146 Long-term asset retirement obligation $ 154,045 $ 152,758 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of the Provision for Income Taxes | The components of the provision for income taxes are as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Current taxes: Federal benefit $ — $ (3,007 ) $ (2,810 ) State expense (benefit) 532 383 (2 ) 532 (2,624 ) (2,812 ) Deferred taxes: Federal (benefit) expense (24,055 ) 211,717 173,859 State (benefit) expense (2,847 ) 21,563 16,620 (26,902 ) 233,280 190,479 $ (26,370 ) $ 230,656 $ 187,667 |
Schedule of Reconciliations of Income Tax (Benefit) Expense Calculated at Federal Statutory Rate of 35% to the Total Income Tax (Benefit) Expense | Reconciliations of the income tax expense (benefit) calculated at the federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 to the total income tax expense (benefit) are as follows: Years Ended December 31, (in thousands) 2019 2018 2017 Provision at statutory rate $ (31,708 ) $ 214,726 $ 238,699 Effect of state taxes (1,717 ) 18,795 10,074 Acquisition-related costs 1,318 — — Tax credits and other permanent differences 2,548 1,583 5,442 Change in valuation allowance, net — (1,376 ) 486 Stock-based compensation 3,189 (3,072 ) (5,888 ) Impact of reduction in federal statutory rate — — (61,146 ) Income tax (benefit) expense $ (26,370 ) $ 230,656 $ 187,667 |
Schedule of Components of Net Deferred Tax Liabilities | The components of net deferred taxes are as follows: December 31, (in thousands) 2019 2018 Assets: Stock compensation and other accrued amounts $ 31,521 $ 8,229 Net operating loss and other carryforwards, net of valuation allowance 454,743 266,011 Credit carryforward, net of valuation allowance 3,936 3,513 490,200 277,753 Liabilities: Property, plant and equipment (828,624 ) (612,226 ) Net deferred tax liabilities $ (338,424 ) $ (334,473 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Supplemental Balance Sheet Information of Leases | The following tables present the amounts and classifications of our right-of-use assets and estimated lease liabilities as of December 31, 2019 : (in thousands) Balance Sheet Location December 31, 2019 Operating lease right-of-use assets Non-current assets — Fixed assets, net $ 240,263 Finance lease right-of-use asset Non-current assets — Other assets 24,849 Total right-of-use assets $ 265,112 (in thousands) Balance Sheet Location December 31, 2019 Operating lease liabilities — current Current liabilities — Operating leases $66,003 Operating lease liabilities — non-current Non-current liabilities — Operating leases 184,172 Finance lease liability — current Current liabilities — Accrued liabilities-Other 7,328 Finance lease liability — non-current Non-current liabilities — Other liabilities 18,749 Total lease liabilities $276,252 |
Schedule of Lease Cost and Cash Paid for Leases | The following table summarizes estimated total lease cost, which includes amounts recognized in income and amounts capitalized for the indicated period: (in thousands) Year Ended December 31, 2019 Finance lease cost: Amortization of right-of-use asset $ 4,385 Interest on lease liability 1,719 Operating lease cost: (1) Production expense 20,965 Transportation, processing, and other operating 17,264 Gas gathering and other expense 5,607 General and administrative expense (2) 12,421 Short-term lease cost (3) 539,110 Total lease cost $ 601,471 ________________________________________ (1) Operating lease cost in the table above is composed of costs incurred under real estate and production-related leases. These costs are included in the indicated captions on the Consolidated Statements of Operations and Comprehensive Income (Loss). (2) Includes variable lease costs of $ 3.1 million . (3) Short-term lease cost in the table above is composed of costs incurred under leases with terms of 12 months or less for right-of-use assets used in exploration and development activities. Payments under such leases are typically based on usage of the underlying right-of-use asset and, therefore, are also variable lease payments. These costs are capitalized as part of proved properties on the Consolidated Balance Sheet. The following table summarizes estimated cash paid for our leases for the indicated period: (in thousands) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash outflows from finance lease $ 3,869 Operating cash outflows from operating leases $ 54,044 Cash paid for short-term leases and variable lease payments: Operating cash outflows from operating leases $ 3,103 Investing cash outflows from operating leases $ 551,325 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rates of Leases | The following table presents the weighted-average remaining lease terms and discount rates of our leases as of the indicated date: December 31, 2019 Weighted-average remaining lease term (in years): Finance lease 5.9 Operating leases 4.1 Weighted-average discount rate: Finance lease 5.7 % Operating leases 3.9 % |
Schedule of Maturity of Finance Leases | The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities recorded at December 31, 2019 : December 31, 2019 (in thousands) Operating Leases Finance Lease January 1, 2020 — December 31, 2020 $ 75,102 $ 5,944 January 1, 2021 — December 31, 2021 67,027 5,687 January 1, 2022 — December 31, 2022 60,686 5,429 January 1, 2023 — December 31, 2023 38,128 5,171 January 1, 2024 — December 31, 2024 17,851 4,913 Remaining periods 12,426 3,132 Total undiscounted future cash flows 271,220 30,276 Less effects of discounting (21,045 ) (4,199 ) Lease liabilities recognized $ 250,175 $ 26,077 |
Schedule of Maturity of Operating Leases | The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities recorded at December 31, 2019 : December 31, 2019 (in thousands) Operating Leases Finance Lease January 1, 2020 — December 31, 2020 $ 75,102 $ 5,944 January 1, 2021 — December 31, 2021 67,027 5,687 January 1, 2022 — December 31, 2022 60,686 5,429 January 1, 2023 — December 31, 2023 38,128 5,171 January 1, 2024 — December 31, 2024 17,851 4,913 Remaining periods 12,426 3,132 Total undiscounted future cash flows 271,220 30,276 Less effects of discounting (21,045 ) (4,199 ) Lease liabilities recognized $ 250,175 $ 26,077 |
Schedule of Future Minimum Payments Required under Leases | As of December 31, 2018 , the following future minimum cash payments were required under leases for office space: (in thousands) December 31, 2018 2019 $ 9,849 2020 10,790 2021 11,000 2022 11,130 2023 11,433 Remaining periods 20,831 Total future minimum lease payments $ 75,033 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Years Ended December 31, (in thousands) 2019 2018 2017 Cash paid during the period for: Interest expense (net of capitalized amounts of $49,944, $19,969, and $23,113, respectively) (1) $ 50,601 $ 45,357 $ 52,245 Income taxes $ 1,364 $ — $ 3 Cash received for income tax refunds $ 2,033 $ 760 $ 111 ________________________________________ (1) The year ended December 31, 2019 includes $17.6 million in interest paid upon the redemption of Resolute’s senior notes and credit facility on March 1, 2019. |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The acquisition date fair value of the consideration transferred totaled $820.3 million , which consisted of cash, common stock, and a newly created series of preferred stock (see Note 5 for more information on the preferred stock) as follows: (in thousands) Fair Value of Consideration Transferred Cash $ 325,677 Common stock (5,652 shares issued) 413,015 Preferred stock (63 shares issued) 81,620 $ 820,312 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the preliminary purchase price allocation: (in thousands) March 1, 2019 Adjustments December 31, 2019 Cash $ 41,236 $ — $ 41,236 Accounts receivable 50,739 11,463 62,202 Other current assets 13,280 (1,260 ) 12,020 Proved oil and gas properties 692,600 — 692,600 Unproved oil and gas properties 1,054,200 (30,314 ) 1,023,886 Fixed assets 5,355 (32 ) 5,323 Goodwill 107,341 (10,708 ) 96,633 Other assets 142 — 142 Current liabilities (202,735 ) (486 ) (203,221 ) Long-term debt (870,000 ) — (870,000 ) Deferred income taxes (62,409 ) 31,337 (31,072 ) Asset retirement obligation (9,437 ) — (9,437 ) Total identifiable net assets $ 820,312 $ — $ 820,312 |
Business Acquisition, Pro Forma Information | Years Ended December 31, (in thousands, except per share information) 2019 2018 Revenue $ 2,416,105 $ 2,667,561 Net (loss) income $ (139,553 ) $ 872,140 Net (loss) income per common share: Basic $ (1.47 ) $ 8.65 Diluted $ (1.47 ) $ 8.65 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)segments | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | segments | 1 | |||
Oil and Gas Properties | ||||
Discount rate for calculating present value of estimated future net revenues from proved reserves (as a percent) | 10.00% | |||
Impairment of oil and gas properties | $ 618,693 | $ 0 | $ 0 | |
Fixed assets, net | ||||
Lease liabilities | 250,175 | |||
Right-of-use assets | $ 240,263 | |||
Accounting Standards Update 2016-02 | ||||
Fixed assets, net | ||||
Lease liabilities | $ 276,900 | |||
Right-of-use assets | $ 265,000 | |||
Minimum | ||||
Fixed assets, net | ||||
Fixed assets expected lives | 3 years | |||
Maximum | ||||
Fixed assets, net | ||||
Fixed assets expected lives | 30 years |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Production | $ 339,941 | $ 296,189 | $ 263,349 |
Transportation, processing, and other operating | 238,259 | 211,463 | 248,124 |
Gas gathering and other | $ 23,294 | 28,327 | 18,187 |
Prior Year Presentation | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Production | 293,213 | 262,180 | |
Transportation, processing, and other operating | 200,802 | 231,640 | |
Gas gathering and other | 41,964 | 35,840 | |
Current Year Reclassifications | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Production | 2,976 | 1,169 | |
Transportation, processing, and other operating | 10,661 | 16,484 | |
Gas gathering and other | (13,637) | (17,653) | |
Total current year reclassifications | $ 0 | $ 0 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2019 | |
Class of Stock [Line Items] | ||||||||||||||||
Common stock authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||
Preferred stock authorized (shares) | 15,000,000 | 15,000,000 | ||||||||||||||
Common stock outstanding (shares) | 102,100,000 | 102,100,000 | ||||||||||||||
Redeemable preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Preferred stock dividend rate (as a percent) | 8.125% | 8.125% | ||||||||||||||
Preferred stock liquidation preference per share (USD per share) | $ 1,000 | $ 1,000 | ||||||||||||||
Preferred stock, liquidation preference | $ 62.5 | $ 62.5 | ||||||||||||||
Stock issued upon conversion of preferred stock (shares) | 8.13828 | 8.13828 | 8.0421 | |||||||||||||
Price received per share upon conversion (USD per share) | $ 471.40 | $ 471.40 | ||||||||||||||
Dividends | ||||||||||||||||
Dividends declared per common share (USD per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.16 | $ 0.16 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.8 | $ 0.68 | $ 0.32 | |
Dividends payable | $ 20.5 | $ 20.5 | ||||||||||||||
Dividends declared per preferred share (USD per share) | $ 20.3125 | $ 20.31 | $ 20.31 | $ 20.31 | $ 81.25 | |||||||||||
Series A Preferred Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred stock outstanding (shares) | 62,500 | 62,500 | ||||||||||||||
Preferred stock issued (shares) | 62,500 | |||||||||||||||
Dividends | ||||||||||||||||
Dividends payable | $ 1.3 | $ 1.3 |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 08, 2019 | Dec. 31, 2018 | Apr. 10, 2017 | Jun. 30, 2014 |
Debt Instrument | |||||
Principal | $ 2,000,000 | $ 1,500,000 | |||
Unamortized Debt Issuance Costs and Discount | (14,754) | (11,446) | |||
Long-term debt, net | 1,985,246 | 1,488,554 | |||
4.375% notes due 2024 | |||||
Debt Instrument | |||||
Principal | 750,000 | 750,000 | |||
Unamortized Debt Issuance Costs and Discount | (3,535) | (4,439) | |||
Long-term debt, net | $ 746,465 | 745,561 | $ 750,000 | ||
Interest rate (as a percent) | 4.375% | 4.375% | |||
3.90% notes due 2027 | |||||
Debt Instrument | |||||
Principal | $ 750,000 | 750,000 | $ 750,000 | ||
Unamortized Debt Issuance Costs and Discount | (6,289) | (7,007) | |||
Long-term debt, net | $ 743,711 | 742,993 | |||
Interest rate (as a percent) | 3.90% | 3.90% | |||
Unamortized debt issuance costs | $ 4,800 | 5,400 | |||
Unamortized discount | 1,500 | 1,600 | |||
4.375% notes due 2029 | |||||
Debt Instrument | |||||
Principal | 500,000 | 0 | |||
Unamortized Debt Issuance Costs and Discount | (4,930) | 0 | |||
Long-term debt, net | 495,070 | $ 0 | |||
Interest rate (as a percent) | 4.375% | ||||
Unamortized debt issuance costs | 4,300 | ||||
Unamortized discount | $ 600 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) | Mar. 08, 2019 | Mar. 01, 2019 | Apr. 10, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 05, 2019 | Jun. 30, 2014 |
Debt Instrument | ||||||||
Additional debt issuance costs | $ 14,754,000 | $ 11,446,000 | ||||||
Proceeds from Issuance of Long-term Debt | 2,619,310,000 | 0 | $ 748,110,000 | |||||
Gross long-term debt | 2,000,000,000 | 1,500,000,000 | ||||||
Gain (loss) on extinguishment of debt | $ 4,300,000 | 4,250,000 | 0 | 28,187,000 | ||||
Long-term debt, net | 1,985,246,000 | 1,488,554,000 | ||||||
Accrued interest | 12,800,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Aggregate commitments | $ 1,250,000,000 | |||||||
Maximum borrowing capacity including accordion feature | 1,500,000,000 | |||||||
Borrowings outstanding | 0 | |||||||
Proceeds from lines of credit | 2,120,000,000 | |||||||
Unamortized debt issuance costs | $ 4,000,000 | 2,200,000 | ||||||
Additional debt issuance costs | $ 3,000,000 | |||||||
Revolving Credit Facility | Minimum | ||||||||
Debt Instrument | ||||||||
Commitment fee (as a percent) | 0.125% | |||||||
Revolving Credit Facility | Maximum | ||||||||
Debt Instrument | ||||||||
Commitment fee (as a percent) | 0.35% | |||||||
Debt-to-capital ratio (as a percent) | 65.00% | |||||||
Line of credit | ||||||||
Debt Instrument | ||||||||
Letters of credit outstanding under the credit facility | $ 2,500,000 | |||||||
Unused borrowing availability of credit facility | 1,248,000,000 | |||||||
5.875% Senior Notes | ||||||||
Debt Instrument | ||||||||
Interest rate (as a percent) | 5.875% | |||||||
Gain (loss) on extinguishment of debt | 28,200,000 | |||||||
Redemption premium of debt instrument | 22,600,000 | |||||||
Write-off of deferred debt issuance cost | $ 5,300,000 | |||||||
3.90% notes due 2027 | ||||||||
Debt Instrument | ||||||||
Unamortized debt issuance costs | 4,800,000 | 5,400,000 | ||||||
Additional debt issuance costs | $ 6,289,000 | 7,007,000 | ||||||
Interest rate (as a percent) | 3.90% | 3.90% | ||||||
Issuance price as percentage of par value (as a percent) | 99.748% | |||||||
Effective rate (as a percent) | 3.93% | 4.01% | ||||||
Gross long-term debt | $ 750,000,000 | $ 750,000,000 | 750,000,000 | |||||
Proceeds from issuance of unsecured debt | $ 741,800,000 | |||||||
Long-term debt, net | 743,711,000 | 742,993,000 | ||||||
4.375% notes due 2029 | ||||||||
Debt Instrument | ||||||||
Unamortized debt issuance costs | 4,300,000 | |||||||
Additional debt issuance costs | 4,930,000 | 0 | ||||||
Interest rate (as a percent) | 4.375% | |||||||
Gross long-term debt | 500,000,000 | 0 | ||||||
Long-term debt, net | 495,070,000 | 0 | ||||||
4.375% notes due 2024 | ||||||||
Debt Instrument | ||||||||
Additional debt issuance costs | $ 3,535,000 | 4,439,000 | ||||||
Interest rate (as a percent) | 4.375% | 4.375% | ||||||
Effective rate (as a percent) | 4.50% | 4.50% | ||||||
Gross long-term debt | $ 750,000,000 | 750,000,000 | ||||||
Long-term debt, net | $ 746,465,000 | $ 745,561,000 | $ 750,000,000 | |||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Minimum | ||||||||
Debt Instrument | ||||||||
Interest rate margin (as a percent) | 1.125% | |||||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Maximum | ||||||||
Debt Instrument | ||||||||
Interest rate margin (as a percent) | 2.00% | |||||||
Base Rate | Revolving Credit Facility | Minimum | ||||||||
Debt Instrument | ||||||||
Interest rate margin (as a percent) | 0.125% | |||||||
Base Rate | Revolving Credit Facility | Maximum | ||||||||
Debt Instrument | ||||||||
Interest rate margin (as a percent) | 1.00% | |||||||
Senior notes | 4.375% notes due 2029 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||
Senior notes | 4.375% notes due 2024 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||
Issuance price as percentage of par value (as a percent) | 99.862% | |||||||
Effective rate (as a percent) | 4.392% | |||||||
Proceeds from Issuance of Long-term Debt | $ 494,700,000 |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivative Contracts (Details) bbl in Thousands, MMBTU in Thousands | 12 Months Ended |
Dec. 31, 2019MMBTU$ / bbl$ / MMBTUbbl | |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 10,602 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 50.84 |
Weighted Avg Price - Ceiling (USD per unit) | 62.15 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | First Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,549 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 52.40 |
Weighted Avg Price - Ceiling (USD per unit) | 64.48 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | Second Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 2,821 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 50.43 |
Weighted Avg Price - Ceiling (USD per unit) | 61.55 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | Third Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 2,116 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 49.80 |
Weighted Avg Price - Ceiling (USD per unit) | 60.59 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | Fourth Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 2,116 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 49.80 |
Weighted Avg Price - Ceiling (USD per unit) | 60.59 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,805 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 49.77 |
Weighted Avg Price - Ceiling (USD per unit) | 59.59 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,350 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 49.70 |
Weighted Avg Price - Ceiling (USD per unit) | 59.41 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 455 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 50 |
Weighted Avg Price - Ceiling (USD per unit) | 60.14 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Oil Collar W T I Index | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 19,170 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.90 |
Weighted Avg Price - Ceiling (USD per unit) | 2.32 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | First Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 8,190 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.92 |
Weighted Avg Price - Ceiling (USD per unit) | 2.36 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | Second Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 5,460 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.90 |
Weighted Avg Price - Ceiling (USD per unit) | 2.28 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | Third Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 2,760 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.85 |
Weighted Avg Price - Ceiling (USD per unit) | 2.31 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | Fourth Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 2,760 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.85 |
Weighted Avg Price - Ceiling (USD per unit) | 2.31 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 900 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.85 |
Weighted Avg Price - Ceiling (USD per unit) | 2.31 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 900 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.85 |
Weighted Avg Price - Ceiling (USD per unit) | 2.31 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar PEPL Index | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Perm EP | 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 10,050 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.38 |
Weighted Avg Price - Ceiling (USD per unit) | 1.75 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Perm EP | First Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 3,640 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.40 |
Weighted Avg Price - Ceiling (USD per unit) | 1.79 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Perm EP | Second Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 2,730 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.40 |
Weighted Avg Price - Ceiling (USD per unit) | 1.82 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Perm EP | Third Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 1,840 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.35 |
Weighted Avg Price - Ceiling (USD per unit) | 1.66 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Perm EP | Fourth Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 1,840 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.35 |
Weighted Avg Price - Ceiling (USD per unit) | 1.66 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Waha | 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 7,280 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.53 |
Weighted Avg Price - Ceiling (USD per unit) | 1.91 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Waha | First Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 4,550 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.50 |
Weighted Avg Price - Ceiling (USD per unit) | 1.87 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Waha | Second Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 2,730 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.57 |
Weighted Avg Price - Ceiling (USD per unit) | 1.97 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Waha | Third Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Outstanding Derivative as of Balance Sheet Date | Derivative Contract Gas Collar Waha | Fourth Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 7,126 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.40 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | First Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 2,639 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.25 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Second Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,911 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.30 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Third Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,288 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.65 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Fourth Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,288 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.65 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 540 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.56 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 540 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.56 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0 |
Outstanding Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,675 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | First Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 300 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Second Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 455 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Third Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 460 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Fourth Quarter - 2020 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 460 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 905 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 450 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 455 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 1.02 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0 |
Subsequent Derivative as of Balance Sheet Date | WTI Midland Oil Basis Swaps | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0 |
DERIVATIVE INSTRUMENTS - (Gains
DERIVATIVE INSTRUMENTS - (Gains) / Losses from Cash Settlements of Derivative Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net (gains) and losses on derivative contracts | |||
Change in fair value of derivative instruments, net | $ 63,719 | $ (110,388) | $ (22,843) |
Cash (receipts) payments on derivative instruments, net | 13,131 | 24,429 | 1,633 |
(Gain) loss on derivative instruments, net | 76,850 | (85,959) | (21,210) |
Gas contracts | |||
Net (gains) and losses on derivative contracts | |||
Change in fair value of derivative instruments, net | (13,114) | 15,742 | (40,226) |
Cash (receipts) payments on derivative instruments, net | (40,114) | (13,794) | (4,557) |
Oil contracts | |||
Net (gains) and losses on derivative contracts | |||
Change in fair value of derivative instruments, net | 76,833 | (126,130) | 17,383 |
Cash (receipts) payments on derivative instruments, net | $ 53,245 | $ 38,223 | $ 6,190 |
DERIVATIVE INSTRUMENTS - Deri_2
DERIVATIVE INSTRUMENTS - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Asset | ||
Derivative instruments - assets | $ 17,944 | $ 101,939 |
Liability | ||
Derivative instruments - liabilities | 16,681 | 27,627 |
Not Designated as Hedging Instrument | ||
Asset | ||
Derivative instruments - assets | 18,524 | 111,185 |
Less: gross amounts not offset in the balance sheet | (9,865) | (29,894) |
Aggregate Intrinsic Value | ||
Net amount | 8,659 | 81,291 |
Liability | ||
Derivative instruments - liabilities | 17,699 | 29,894 |
Less: gross amounts not offset in the balance sheet | (9,865) | (29,894) |
Net amount | 7,834 | 0 |
Not Designated as Hedging Instrument | Oil contracts | Current Assets | ||
Asset | ||
Derivative instruments - assets | 1,624 | 94,240 |
Liability | ||
Derivative instruments - liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Oil contracts | Non-Current Assets | ||
Asset | ||
Derivative instruments - assets | 580 | 9,246 |
Liability | ||
Derivative instruments - liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Oil contracts | Current Liabilities | ||
Asset | ||
Derivative instruments - assets | 0 | 0 |
Liability | ||
Derivative instruments - liabilities | 16,681 | 23,378 |
Not Designated as Hedging Instrument | Oil contracts | Non-Current Liabilities | ||
Asset | ||
Derivative instruments - assets | 0 | 0 |
Liability | ||
Derivative instruments - liabilities | 824 | 311 |
Not Designated as Hedging Instrument | Gas contracts | Current Assets | ||
Asset | ||
Derivative instruments - assets | 16,320 | 7,699 |
Liability | ||
Derivative instruments - liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Gas contracts | Current Liabilities | ||
Asset | ||
Derivative instruments - assets | 0 | |
Liability | ||
Derivative instruments - liabilities | 4,249 | |
Not Designated as Hedging Instrument | Gas contracts | Non-Current Liabilities | ||
Asset | ||
Derivative instruments - assets | 0 | 0 |
Liability | ||
Derivative instruments - liabilities | $ 194 | $ 1,956 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 08, 2019 | Dec. 31, 2018 | Apr. 10, 2017 | Jun. 30, 2014 |
Financial Assets (Liabilities): | |||||
Derivative instruments - assets | $ 17,944 | $ 101,939 | |||
Derivative instruments - liabilities | (16,681) | (27,627) | |||
Level 2: Fair Value Inputs | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Derivative instruments - assets | 18,524 | 111,185 | |||
Derivative instruments - liabilities | (17,699) | (29,894) | |||
Level 2: Fair Value Inputs | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Derivative instruments - assets | 18,524 | 111,185 | |||
Derivative instruments - liabilities | $ (17,699) | (29,894) | |||
4.375% notes due 2024 | |||||
Financial Assets (Liabilities): | |||||
Interest rate (as a percent) | 4.375% | 4.375% | |||
4.375% notes due 2024 | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | $ (750,000) | (750,000) | |||
4.375% notes due 2024 | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | $ (792,225) | (744,578) | |||
3.90% notes due 2027 | |||||
Financial Assets (Liabilities): | |||||
Interest rate (as a percent) | 3.90% | 3.90% | |||
3.90% notes due 2027 | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | $ (750,000) | (750,000) | |||
3.90% notes due 2027 | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | (778,050) | (701,273) | |||
4.375% notes due 2029 | |||||
Financial Assets (Liabilities): | |||||
Interest rate (as a percent) | 4.375% | ||||
4.375% notes due 2029 | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | (500,000) | 0 | |||
4.375% notes due 2029 | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | $ (530,400) | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk | |||
Accrued operating expenses | $ 74.7 | $ 69.1 | |
Accrued payroll related general and administrative expenses | $ 43.3 | 47.4 | |
Overdrawn account accrual | $ 35.8 | ||
Revenue Benchmark | Customer One | Customer Concentration Risk | |||
Concentration Risk | |||
Percentage of sales to revenue, major customers (as a percent) | 25.00% | 23.00% | |
Revenue Benchmark | Customer Two | Customer Concentration Risk | |||
Concentration Risk | |||
Percentage of sales to revenue, major customers (as a percent) | 29.00% | 21.00% | 21.00% |
Revenue Benchmark | Customer Three | Customer Concentration Risk | |||
Concentration Risk | |||
Percentage of sales to revenue, major customers (as a percent) | 13.00% | ||
Allowance for Trade Receivables | |||
Concentration Risk | |||
Aggregate allowance for doubtful accounts | $ 3.6 | $ 2.7 |
STOCK-BASED AND OTHER COMPENS_3
STOCK-BASED AND OTHER COMPENSATION - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Options, Restricted Stock and Unit Awards | ||||
Maximum number of shares of common stock that may be issued under the Stock Incentive Plan (shares) | 6,300,000 | |||
Total stock compensation cost | $ 49,104 | $ 45,924 | $ 48,365 | |
Less amounts capitalized to oil and gas properties | (22,706) | (23,029) | (22,109) | |
Stock compensation expense | 26,398 | 22,895 | 26,256 | |
Cumulative effect adjustment | 33,132 | |||
Net cash provided by operating activities | (1,343,966) | (1,550,994) | (1,096,564) | |
Net cash provided by financing activities | (472,028) | (65,244) | (83,009) | |
Restricted Stock and Units | ||||
Options, Restricted Stock and Unit Awards | ||||
Total stock compensation cost | $ 47,201 | $ 43,468 | $ 45,766 | |
Restricted Stock | ||||
Options, Restricted Stock and Unit Awards | ||||
Restricted stock granted (shares) | 946,381 | 592,971 | 551,837 | |
Restricted stock granted, weighted average grant-date fair value (USD per share) | $ 46.38 | $ 83.16 | $ 91.55 | |
Performance Based Restricted Stock | ||||
Options, Restricted Stock and Unit Awards | ||||
Total stock compensation cost | $ 21,590 | $ 23,083 | $ 26,020 | |
Restricted stock granted (shares) | 264,393 | 123,533 | 300,525 | |
Restricted stock granted, weighted average grant-date fair value (USD per share) | $ 47.66 | $ 90.26 | $ 89.46 | |
Vesting period | 3 years | |||
Performance Based Restricted Stock, Prior to 2018 | Minimum | ||||
Options, Restricted Stock and Unit Awards | ||||
Award vesting rate (as a percent) | 50.00% | |||
Performance Based Restricted Stock, Prior to 2018 | Maximum | ||||
Options, Restricted Stock and Unit Awards | ||||
Award vesting rate (as a percent) | 100.00% | |||
Performance Based Restricted Stock, 2018 and Afterward | Minimum | ||||
Options, Restricted Stock and Unit Awards | ||||
Award vesting rate (as a percent) | 0.00% | |||
Performance Based Restricted Stock, 2018 and Afterward | Maximum | ||||
Options, Restricted Stock and Unit Awards | ||||
Award vesting rate (as a percent) | 200.00% | |||
Service Based Restricted Stock | ||||
Options, Restricted Stock and Unit Awards | ||||
Total stock compensation cost | $ 25,611 | $ 20,385 | $ 19,746 | |
Restricted stock granted (shares) | 681,988 | 469,438 | 251,312 | |
Restricted stock granted, weighted average grant-date fair value (USD per share) | $ 45.88 | $ 81.29 | $ 94.04 | |
Service Based Restricted Stock | Minimum | ||||
Options, Restricted Stock and Unit Awards | ||||
Vesting period | 1 year | |||
Service Based Restricted Stock | Maximum | ||||
Options, Restricted Stock and Unit Awards | ||||
Vesting period | 5 years | |||
Service Based Restricted Stock | Average | ||||
Options, Restricted Stock and Unit Awards | ||||
Vesting period | 5 years | |||
Employee Stock Option | ||||
Options, Restricted Stock and Unit Awards | ||||
Total stock compensation cost | $ 1,903 | $ 2,456 | $ 2,599 | |
Vesting period | 3 years | |||
Retained Earnings | ||||
Options, Restricted Stock and Unit Awards | ||||
Cumulative effect adjustment | 28,739 | |||
Additional Paid-in Capital | ||||
Options, Restricted Stock and Unit Awards | ||||
Cumulative effect adjustment | 4,393 | |||
Accounting Standards Update 2016-09 | ||||
Options, Restricted Stock and Unit Awards | ||||
Cumulative effect adjustment | $ 33,100 | |||
Net cash provided by financing activities | $ (26,600) | |||
Accounting Standards Update 2016-09 | Retained Earnings | ||||
Options, Restricted Stock and Unit Awards | ||||
Cumulative effect adjustment | 28,700 | |||
Accounting Standards Update 2016-09 | Additional Paid-in Capital | ||||
Options, Restricted Stock and Unit Awards | ||||
Cumulative effect adjustment | $ 4,400 |
STOCK-BASED AND OTHER COMPENS_4
STOCK-BASED AND OTHER COMPENSATION - RSU Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock and Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unrecognized compensation cost of unvested restricted stock | $ 96.9 | ||
Unrecognized compensation cost of unvested restricted stock, period for recognition | 2 years 7 months 6 days | ||
Restricted Stock | |||
Restricted stock and unit activity | |||
Granted (shares) | 946,381 | 592,971 | 551,837 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted (USD per share) | $ 46.38 | $ 83.16 | $ 91.55 |
Fair value of resticted stock vested | $ 15.1 | $ 34.1 | $ 54.4 |
Service Based Restricted Stock | |||
Restricted stock and unit activity | |||
Outstanding at beginning of period (shares) | 1,135,882 | ||
Vested (shares) | (155,751) | ||
Granted (shares) | 681,988 | 469,438 | 251,312 |
Canceled (shares) | 0 | ||
Forfeited (shares) | (23,050) | ||
Outstanding at end of period (shares) | 1,639,069 | 1,135,882 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding beginning of period (USD per share) | $ 99.12 | ||
Vested (USD per share) | 126.20 | ||
Granted (USD per share) | 45.88 | $ 81.29 | $ 94.04 |
Canceled (USD per share) | 0 | ||
Forfeited (USD per share) | 90.97 | ||
Outstanding end of period (USD per share) | $ 74.51 | $ 99.12 | |
Performance Based Restricted Stock | |||
Restricted stock and unit activity | |||
Outstanding at beginning of period (shares) | 650,096 | ||
Vested (shares) | (139,723) | ||
Granted (shares) | 264,393 | 123,533 | 300,525 |
Canceled (shares) | (109,789) | ||
Forfeited (shares) | 0 | ||
Outstanding at end of period (shares) | 664,977 | 650,096 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding beginning of period (USD per share) | $ 100.42 | ||
Vested (USD per share) | 117.63 | ||
Granted (USD per share) | 47.66 | $ 90.26 | $ 89.46 |
Canceled (USD per share) | 117.63 | ||
Forfeited (USD per share) | 0 | ||
Outstanding end of period (USD per share) | $ 72.99 | $ 100.42 |
STOCK-BASED AND OTHER COMPENS_5
STOCK-BASED AND OTHER COMPENSATION - Options, Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Grant-Date Fair value | |||
Cash received from option exercises | $ 1,267 | $ 2,241 | $ 394 |
Restricted Stock and Units | |||
Weighted Average Exercise Price | |||
Unrecognized compensation cost of unvested restricted stock | $ 96,900 | ||
Unrecognized compensation cost of unvested restricted stock, period for recognition | 2 years 7 months 6 days | ||
Restricted Stock Units | |||
Options, Restricted Stock and Unit Awards | |||
Restricted stock units outstanding (shares) | 8,838 | 8,838 | |
Employee Stock Option | |||
Options, Restricted Stock and Unit Awards | |||
Vesting period | 3 years | ||
Assumptions used to determine the fair market value of options | |||
Granted (shares) | 132,900 | 92,050 | 96,100 |
Granted (USD per share) | $ 12.14 | $ 26.71 | $ 28.37 |
Weighted average exercise price (USD per share) | $ 42.78 | $ 83.28 | $ 92.37 |
Total fair value of options granted | $ 1,613 | $ 2,458 | $ 2,727 |
Expected years until exercise | 4 years 10 months 24 days | 5 years | 4 years 6 months |
Expected stock volatility (as a percent) | 37.10% | 34.70% | 35.00% |
Dividend yield (as a percent) | 1.90% | 0.90% | 0.30% |
Risk-free interest rate (as a percent) | 1.40% | 2.70% | 1.70% |
Number of Options | |||
Outstanding balance at beginning of period (shares) | 420,332 | ||
Exercised (shares) | (29,222) | ||
Granted (shares) | 132,900 | 92,050 | 96,100 |
Canceled (shares) | (10,661) | ||
Forfeited (shares) | (17,811) | ||
Outstanding balance at end of period (shares) | 495,538 | 420,332 | |
Exercisable at end of period (shares) | 287,283 | ||
Weighted Average Exercise Price | |||
Outstanding balance at beginning of period (USD per share) | $ 99.01 | ||
Exercised (USD per share) | 43.37 | ||
Granted (USD per share) | 42.78 | ||
Canceled (USD per share) | 115.06 | ||
Forfeited (USD per share) | 90.66 | ||
Outstanding balance at end of period (USD per share) | 87.17 | $ 99.01 | |
Exercisable at end of period (USD per share) | $ 107.97 | ||
Weighted Average Remaining Term | |||
Weighted average remaining term, outstanding at end of period | 4 years 3 months 18 days | ||
Weighted average remaining term, exercisable at end of period | 2 years 10 months 24 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value outstanding at end of period | $ 1,201 | ||
Aggregate intrinsic value exercisable at the end of the period | 0 | ||
Grant-Date Fair value | |||
Cash received from option exercises | 1,267 | $ 2,241 | $ 394 |
Intrinsic value of options exercised | 425 | 1,030 | 257 |
Grant date fair value of options vested | $ 2,262 | $ 2,547 | $ 2,227 |
Number of Options | |||
Non-vested at beginning of period (shares) | 170,241 | ||
Vested (shares) | (77,075) | ||
Granted (shares) | 132,900 | 92,050 | 96,100 |
Forfeited (shares) | (17,811) | ||
Non-vested at end of period (shares) | 208,255 | 170,241 | |
Weighted Average Grant Date Fair Value | |||
Non-vested at beginning of period (USD per share) | $ 28.29 | ||
Vested (USD per share) | 29.35 | ||
Granted (USD per share) | 12.14 | $ 26.71 | $ 28.37 |
Forfeited (USD per share) | 28.19 | ||
Non-vested at end of period (USD per share) | 17.60 | 28.29 | |
Weighted Average Exercise Price | |||
Non-vested at beginning of period (USD per share) | 91.05 | ||
Vested (USD per share) | 95.94 | ||
Granted (USD per share) | 42.78 | ||
Forfeited (USD per share) | 90.66 | ||
Non-vested at end of period (USD per share) | $ 58.47 | $ 91.05 | |
Unrecognized compensation cost of unvested restricted stock | $ 2,800 | ||
Unrecognized compensation cost of unvested restricted stock, period for recognition | 2 years 1 month 6 days | ||
Minimum | Employee Stock Option | |||
Options, Restricted Stock and Unit Awards | |||
Term of options from grant to expiration | 7 years | ||
Maximum | Employee Stock Option | |||
Options, Restricted Stock and Unit Awards | |||
Term of options from grant to expiration | 10 years |
STOCK-BASED AND OTHER COMPENS_6
STOCK-BASED AND OTHER COMPENSATION - Other Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Annual costs related to the plan | $ 8.7 | $ 13.1 | $ 10.4 |
EARNINGS (LOSS) PER SHARE - Sum
EARNINGS (LOSS) PER SHARE - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share: | |||
Net (loss) income | $ (124,619) | $ 791,851 | $ 494,329 |
Less: dividends and net income attributable to participating securities | (1,519) | (11,087) | (8,551) |
Less: preferred stock dividends | (5,078) | ||
Loss available to common stockholders | (131,216) | 780,764 | 485,778 |
Diluted earnings per share: | |||
Effects of dilutive securities - options | 0 | 3 | 3 |
Loss available to common stockholders and assumed conversions | $ (131,216) | $ 780,767 | $ 485,781 |
Shares (Denominator) | |||
Basic stock outstanding (shares) | 98,789,000 | 93,793,000 | 93,466,000 |
Effects of dilutive securities - options (shares) | 0 | 27,000 | 43,000 |
Fully diluted common stock (shares) | 98,789,000 | 93,820,000 | 93,509,000 |
Earnings (loss) per share to common stockholders | |||
Basic (USD per share) | $ (1.33) | $ 8.32 | $ 5.19 |
Diluted (USD per share) | $ (1.33) | $ 8.32 | $ 5.19 |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded antidilutive securities (shares) | 495,500 | 387,700 | 302,900 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded antidilutive securities (shares) | 508,600 | ||
Restricted Stock and Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded antidilutive securities (shares) | 37,400 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligations | ||
Balance at beginning of year | $ 166,904 | $ 169,469 |
Liabilities incurred | 21,511 | 9,899 |
Liability settlements and disposals | (19,595) | (21,550) |
Accretion expense | 7,499 | 7,318 |
Revisions of estimated liabilities | 5,550 | 1,768 |
Balance at end of year | 181,869 | 166,904 |
Less current obligation | 27,824 | 14,146 |
Long-term asset retirement obligation | $ 154,045 | $ 152,758 |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Liabilities incurred | $ 21,511 | $ 9,899 |
Liability settlements and disposals related to properties that were sold | 9,300 | $ 13,700 |
Resolute | ||
Business Acquisition [Line Items] | ||
Liabilities incurred | $ 9,400 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current taxes: | |||
Federal benefit | $ 0 | $ (3,007) | $ (2,810) |
State expense (benefit) | 532 | 383 | (2) |
Current taxes (benefit) | 532 | (2,624) | (2,812) |
Deferred taxes: | |||
Federal (benefit) expense | (24,055) | 211,717 | 173,859 |
State (benefit) expense | (2,847) | 21,563 | 16,620 |
Deferred income taxes | (26,902) | 233,280 | 190,479 |
Income tax (benefit) expense | $ (26,370) | $ 230,656 | $ 187,667 |
INCOME TAXES - Reconciliations
INCOME TAXES - Reconciliations of the Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliations of the income tax (benefit) expense | |||
Provision at statutory rate | $ (31,708) | $ 214,726 | $ 238,699 |
Effect of state taxes | (1,717) | 18,795 | 10,074 |
Acquisition-related costs | 1,318 | 0 | 0 |
Tax credits and other permanent differences | 2,548 | 1,583 | 5,442 |
Change in valuation allowance, net | 0 | (1,376) | 486 |
Stock-based compensation | 3,189 | (3,072) | (5,888) |
Impact of reduction in federal statutory rate | 0 | 0 | (61,146) |
Income tax (benefit) expense | $ (26,370) | $ 230,656 | $ 187,667 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | Mar. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Items [Abstract] | ||||
Increase (decrease) income tax expense (benefit) | $ 61,100,000 | |||
U.S. net tax operating loss carryforward | $ 1,930,000,000 | |||
Oil recovery and marginal well tax credit carryforward | 3,900,000 | |||
Unrecognized tax benefits that would impact the entity's effective rate | 0 | $ 0 | ||
Provisions for interest or penalties related to uncertain tax positions | 0 | $ 0 | ||
State | ||||
Income Tax Items [Abstract] | ||||
Net operating loss carryforward | 9,700,000 | |||
Valuation allowance against net operating losses | 9,700,000 | |||
Total valuation allowance on net operating losses | 119,000,000 | |||
Resolute | ||||
Income Tax Items [Abstract] | ||||
Deferred tax liability | $ 62,409,000 | $ 31,072,000 | ||
Proportion of ownership interest change (as a percent) | 50.00% | |||
Period of recognition of built-in gains | 5 years | |||
Limitation amount | $ 19,600,000 | |||
Limited amount of net unrealized built-in gain projection | 253,900,000 | |||
Resolute | Domestic | ||||
Income Tax Items [Abstract] | ||||
Net operating loss carryforward | 746,300,000 | |||
Valuation allowance against net operating losses | 57,600,000 | |||
Capital loss | 67,700,000 | |||
Credit carryforwards | $ 4,000,000 |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Stock compensation and other accrued amounts | $ 31,521 | $ 8,229 |
Net operating loss and other carryforwards, net of valuation allowance | 454,743 | 266,011 |
Credit carryforward, net of valuation allowance | 3,936 | 3,513 |
Gross deferred tax assets | 490,200 | 277,753 |
Liabilities: | ||
Property, plant and equipment | (828,624) | (612,226) |
Net deferred tax liabilities | $ (338,424) | $ (334,473) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Right-of-use asset exchange for operating lease liability | $ 91.7 |
Building | Minimum | |
Long-term Purchase Commitment [Line Items] | |
Lessee, operating lease, remaining lease term | 4 years 4 months 24 days |
Building | Maximum | |
Long-term Purchase Commitment [Line Items] | |
Lessee, operating lease, remaining lease term | 6 years 8 months 12 days |
Energy equipment | Minimum | |
Long-term Purchase Commitment [Line Items] | |
Lessee, operating lease, remaining lease term | 1 month |
Energy equipment | Maximum | |
Long-term Purchase Commitment [Line Items] | |
Lessee, operating lease, remaining lease term | 10 years 7 months 6 days |
Gas gathering and processing equipment | |
Long-term Purchase Commitment [Line Items] | |
Lessee, operating lease, remaining lease term | 5 years 10 months 24 days |
Exploration and production equipment | Maximum | |
Long-term Purchase Commitment [Line Items] | |
Lessee, operating lease, remaining lease term | 12 months |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Right-of-Use Assets and Estimated Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 240,263 | |
Finance lease right-of-use asset | 24,849 | |
Total right-of-use assets | 265,112 | |
Operating lease liabilities — current | 66,003 | $ 0 |
Operating lease liabilities — non-current | 184,172 | $ 0 |
Finance lease liability — current | 7,328 | |
Finance lease liability — non-current | 18,749 | |
Total lease liabilities | $ 276,252 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Amounts Recognized In Income and Amounts Capitalized (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Finance lease cost: | |
Amortization of right-of-use asset | $ 4,385 |
Interest on lease liability | 1,719 |
Operating lease cost | |
Short-term lease, cost | 539,110 |
Total lease cost | 601,471 |
Variable lease cost | 3,100 |
Production expense | |
Operating lease cost | |
Operating lease, cost | 20,965 |
Transportation, processing, and other operating | |
Operating lease cost | |
Operating lease, cost | 17,264 |
Gas gathering and other expense | |
Operating lease cost | |
Operating lease, cost | 5,607 |
General and administrative expense | |
Operating lease cost | |
Operating lease, cost | $ 12,421 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Summarizes Estimated Cash Paid For Our Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Financing cash outflows from finance lease | $ 3,869 | $ 0 | $ 0 |
Operating cash outflows from operating leases | 54,044 | ||
Cash paid for short-term leases and variable lease payments: | |||
Operating cash outflows from operating leases | 3,103 | ||
Investing cash outflows from operating leases | $ 551,325 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Weighted-Average Remaining Lease Terms (Details) | Dec. 31, 2019 |
Weighted-average remaining lease term (in years): | |
Finance lease | 5 years 10 months 24 days |
Operating leases | 4 years 1 month 6 days |
Weighted-average discount rate: | |
Finance lease | 5.70% |
Operating leases | 3.90% |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
January 1, 2020 — December 31, 2020 | $ 75,102 |
January 1, 2021 — December 31, 2021 | 67,027 |
January 1, 2022 — December 31, 2022 | 60,686 |
January 1, 2023 — December 31, 2023 | 38,128 |
January 1, 2024 — December 31, 2024 | 17,851 |
Remaining periods | 12,426 |
Total undiscounted future cash flows | 271,220 |
Less effects of discounting | (21,045) |
Lease liabilities recognized | 250,175 |
Finance Lease | |
January 1, 2020 — December 31, 2020 | 5,944 |
January 1, 2021 — December 31, 2021 | 5,687 |
January 1, 2022 — December 31, 2022 | 5,429 |
January 1, 2023 — December 31, 2023 | 5,171 |
January 1, 2024 — December 31, 2024 | 4,913 |
Remaining periods | 3,132 |
Total undiscounted future cash flows | 30,276 |
Less effects of discounting | (4,199) |
Lease liabilities recognized | $ 26,077 |
COMMITMENTS AND CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Future minimum payments under leases | |
2019 | $ 9,849 |
2020 | 10,790 |
2021 | 11,000 |
2022 | 11,130 |
2023 | 11,433 |
Remaining periods | 20,831 |
Total future minimum lease payments | 75,033 |
Compressor Equipment | |
Future minimum payments under leases | |
Commitments for purchases and other expenditures | $ 34,800 |
Compressor Equipment | Minimum | |
Future minimum payments under leases | |
Delivery term | 1 month |
Compressor Equipment | Maximum | |
Future minimum payments under leases | |
Delivery term | 35 months |
COMMITMENTS AND CONTINGENCIES_8
COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Drilling Commitments | |
Oil and Gas, Delivery Commitment [Line Items] | |
Commitments for purchases and other expenditures | $ 321.7 |
Other Transportation, Delivery And Facilities Commitments | |
Oil and Gas, Delivery Commitment [Line Items] | |
Other commitments | $ 6.6 |
COMMITMENTS AND CONTINGENCIES_9
COMMITMENTS AND CONTINGENCIES - Other Commitments - Delivery, Operating Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)Bcf | |
Natural Gas Sales Contracts | |
Oil and Gas, Delivery Commitment [Line Items] | |
Volume of gas deliverable (Bcf) | Bcf | 703.7 |
Delivery term | 11 years 6 months |
Maximum financial commitment resulting from inability to meet gas delivery commitments | $ 1,030 |
Gas Gathering And Processing Agreements | |
Oil and Gas, Delivery Commitment [Line Items] | |
Delivery term | 9 years |
Maximum financial commitment resulting from inability to meet gas delivery commitments | $ 697.2 |
Minimum Volume Agreement | |
Oil and Gas, Delivery Commitment [Line Items] | |
Maximum financial commitment resulting from inability to meet gas delivery commitments | 117.6 |
Financial commitment resulting from inability to meet gas delivery commitments, insufficient forecasted volumes | 4.5 |
Other Transportation, Delivery And Facilities Commitments | |
Oil and Gas, Delivery Commitment [Line Items] | |
Maximum financial commitment resulting from inability to meet gas delivery commitments | $ 64 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Helmerich and Payne | |||
Related Party Transactions | |||
Contract drilling services costs | $ 72.8 | $ 80.1 | $ 52.6 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid during the period for: | |||
Interest expense, net | $ 50,601 | $ 45,357 | $ 52,245 |
Income taxes | 1,364 | 0 | 3 |
Cash received for income tax refunds | 2,033 | 760 | 111 |
Interest capitalized | 49,944 | $ 19,969 | $ 23,113 |
Interest paid upon redemption of debt | $ 17,600 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) - USD ($) | Mar. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Mar. 08, 2019 | Jun. 30, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net cash proceeds received | $ 28,945,000 | $ 580,652,000 | $ 11,680,000 | ||||||
Purchase price allocation period | 12 months | ||||||||
Gain (loss) on extinguishment of debt | $ 4,300,000 | $ 4,250,000 | 0 | $ 28,187,000 | |||||
Goodwill | $ 620,232,000 | $ 716,865,000 | 716,865,000 | 620,232,000 | $ 716,865,000 | ||||
Ward County, TX | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net cash proceeds received | $ 534,600,000 | ||||||||
Resolute | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Total purchase price | 820,300,000 | 820,312,000 | |||||||
Increase (decrease) in fair value of unproved oil and gas properties | (30,314,000) | ||||||||
Deferred income taxes | $ (6,900,000) | (31,337,000) | (24,400,000) | ||||||
Business acquisition, percentage of voting interests acquired | 100.00% | ||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities | $ 870,000,000 | 870,000,000 | 870,000,000 | 870,000,000 | |||||
Goodwill | 107,341,000 | 96,633,000 | 96,633,000 | 96,633,000 | |||||
Business combination, acquisition related costs | 8,400,000 | $ 3,000,000 | $ 11,400,000 | ||||||
Business combination, pro forma information, revenue of acquiree | 203,600,000 | ||||||||
Business combination, pro forma information, operating expense of acquiree | $ 51,000,000 | ||||||||
Resolute | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Business combination, acquisition related costs | $ 66,600,000 | ||||||||
Senior notes | Resolute | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities | 600,000,000 | ||||||||
Line of credit | Resolute | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities | $ 270,000,000 | ||||||||
4.375% notes due 2029 | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Interest rate (as a percent) | 4.375% | ||||||||
4.375% notes due 2029 | Senior notes | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||
4.375% Notes due 2024 | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% | |||||
4.375% Notes due 2024 | Senior notes | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Debt instrument, face amount | $ 500,000,000 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Consideration Transferred (Details) - Resolute shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Business Acquisition [Line Items] | |
Cash | $ 325,677 |
Common stock (5,652 shares issued) | |
Business Acquisition [Line Items] | |
Stock | $ 413,015 |
Stock issued in acquisition (shares) | shares | 5,652 |
Preferred stock (63 shares issued) | |
Business Acquisition [Line Items] | |
Stock | $ 81,620 |
Stock issued in acquisition (shares) | shares | 63 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 716,865 | $ 716,865 | $ 620,232 | |
Resolute | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 41,236 | 41,236 | 41,236 | |
Accounts receivable | 50,739 | 62,202 | 62,202 | |
Other current assets | 13,280 | 12,020 | 12,020 | |
Proved oil and gas properties | 692,600 | 692,600 | 692,600 | |
Unproved oil and gas properties | 1,054,200 | 1,023,886 | 1,023,886 | |
Fixed assets | 5,355 | 5,323 | 5,323 | |
Goodwill | 107,341 | 96,633 | 96,633 | |
Other assets | 142 | 142 | 142 | |
Current liabilities | (202,735) | (203,221) | (203,221) | |
Long-term debt | (870,000) | (870,000) | (870,000) | |
Deferred income taxes | (62,409) | (31,072) | (31,072) | |
Asset retirement obligation | (9,437) | (9,437) | (9,437) | |
Total identifiable net assets | 820,312 | 820,312 | 820,312 | |
Adjustments | ||||
Cash | 0 | |||
Accounts receivable | 11,463 | |||
Other current assets | (1,260) | |||
Proved oil and gas properties | 0 | |||
Unproved oil and gas properties | (30,314) | |||
Fixed assets | (32) | |||
Goodwill | (10,708) | |||
Other assets | 0 | |||
Current liabilities | (486) | |||
Long-term debt | 0 | |||
Deferred income taxes | $ 6,900 | 31,337 | $ 24,400 | |
Asset retirement obligation | 0 | |||
Total identifiable net assets | $ 0 |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Pro Forma Financial Information (Details) - Resolute - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 2,416,105 | $ 2,667,561 |
Net (loss) income | $ (139,553) | $ 872,140 |
Net (loss) income per common share: | ||
Basic (USD per share) | $ (1.47) | $ 8.65 |
Diluted (USD per share) | $ (1.47) | $ 8.65 |