Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 06, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | HALCON RESOURCES CORP | |
Entity Central Index Key | 1,282,648 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 149,596,067 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 09, 2016 | Sep. 30, 2017 | Sep. 09, 2016 | Sep. 30, 2017 | |
Oil, natural gas and natural gas liquids sales: | |||||
Oil | $ 21,260 | $ 88,256 | $ 319,472 | ||
Natural gas | 823 | 2,886 | 15,051 | ||
Natural gas liquids | 798 | 5,448 | 16,779 | ||
Total oil, natural gas and natural gas liquids sales | 22,881 | 96,590 | 351,302 | ||
Other | 226 | 363 | 1,386 | ||
Total operating revenues | 23,107 | 96,953 | 352,688 | ||
Production: | |||||
Lease operating | 3,791 | 17,798 | 58,822 | ||
Workover and other | 1,565 | 3,644 | 22,213 | ||
Taxes other than income | 2,173 | 6,846 | 29,149 | ||
Gathering and other | 2,637 | 10,886 | 34,640 | ||
Restructuring | 1,275 | 2,080 | |||
General and administrative | 16,681 | 39,195 | 86,966 | ||
Depletion, depreciation and accretion | 9,051 | 35,940 | 100,788 | ||
Full cost ceiling impairment | 420,934 | ||||
(Gain) loss on sale of oil and natural gas properties | (491,830) | (727,520) | |||
Total operating expenses | 456,832 | (376,246) | (392,862) | ||
Income (loss) from operations | (433,725) | 473,199 | 745,550 | ||
Other income (expenses): | |||||
Net gain (loss) on derivative contracts | (7,575) | (22,415) | 28,139 | ||
Interest expense and other, net | (5,479) | (19,330) | (63,808) | ||
Reorganization items | (556) | ||||
Gain (loss) on extinguishment of debt | (29,167) | (86,065) | |||
Total other income (expenses) | (13,610) | (70,912) | (121,734) | ||
Income (loss) before income taxes | (447,335) | 402,287 | 623,816 | ||
Income tax benefit (provision) | (3,357) | 17,000 | 5,000 | ||
Net income (loss) | (450,692) | 419,287 | 628,816 | ||
Non-cash preferred dividend | (48,007) | ||||
Preferred dividends and accretion on redeemable noncontrolling interest | (791) | ||||
Net income (loss) available to common stockholders | $ (451,483) | $ 419,287 | $ 580,809 | ||
Net income (loss) per share of common stock: | |||||
Basic (in dollars per share) | $ (4.96) | $ 2.85 | $ 4.56 | ||
Diluted (in dollars per share) | $ (4.96) | $ 2.82 | $ 4.52 | ||
Weighted average common shares outstanding: | |||||
Basic (in shares) | 91,071 | 146,944 | 127,458 | ||
Diluted (in shares) | 91,071 | 148,490 | 128,410 | ||
Predecessor | |||||
Oil, natural gas and natural gas liquids sales: | |||||
Oil | $ 74,002 | $ 248,064 | |||
Natural gas | 2,610 | 9,511 | |||
Natural gas liquids | 2,488 | 7,929 | |||
Total oil, natural gas and natural gas liquids sales | 79,100 | 265,504 | |||
Other | 247 | 1,339 | |||
Total operating revenues | 79,347 | 266,843 | |||
Production: | |||||
Lease operating | 12,473 | 50,032 | |||
Workover and other | 6,801 | 22,507 | |||
Taxes other than income | 7,442 | 24,453 | |||
Gathering and other | 7,376 | 29,279 | |||
Restructuring | 95 | 5,168 | |||
General and administrative | 17,317 | 83,641 | |||
Depletion, depreciation and accretion | 25,618 | 120,555 | |||
Full cost ceiling impairment | 754,769 | ||||
Other operating property and equipment impairment | 28,056 | ||||
Total operating expenses | 77,122 | 1,118,460 | |||
Income (loss) from operations | 2,225 | (851,617) | |||
Other income (expenses): | |||||
Net gain (loss) on derivative contracts | 17,783 | (17,998) | |||
Interest expense and other, net | (16,136) | (122,249) | |||
Reorganization items | 913,722 | 913,722 | |||
Gain (loss) on extinguishment of debt | 81,434 | ||||
Total other income (expenses) | 915,369 | 854,909 | |||
Income (loss) before income taxes | 917,594 | 3,292 | |||
Income tax benefit (provision) | 8,666 | 8,666 | |||
Net income (loss) | 926,260 | 11,958 | |||
Series A preferred dividends | (2,451) | (8,847) | |||
Preferred dividends and accretion on redeemable noncontrolling interest | (7,388) | (35,905) | |||
Net income (loss) available to common stockholders | $ (451,483) | $ 916,421 | $ (32,794) | ||
Net income (loss) per share of common stock: | |||||
Basic (in dollars per share) | $ (4.96) | $ 7.58 | $ (0.27) | ||
Diluted (in dollars per share) | $ (4.96) | $ 6.06 | $ (0.27) | ||
Weighted average common shares outstanding: | |||||
Basic (in shares) | 91,071 | 120,905 | 120,513 | ||
Diluted (in shares) | 91,071 | 151,876 | 120,513 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 10, 2016 | Sep. 09, 2016 |
Current assets: | ||||
Cash | $ 989,347 | $ 24 | $ 13,943 | |
Accounts receivable | 108,753 | 147,762 | 116,859 | |
Receivables from derivative contracts | 5,166 | 5,923 | 97,648 | |
Prepaids and other | 12,171 | 6,940 | 7,629 | |
Total current assets | 1,115,437 | 160,649 | 253,243 | |
Oil and natural gas properties (full cost method): | ||||
Evaluated | 782,695 | 1,269,034 | 1,214,129 | |
Unevaluated | 757,401 | 316,439 | 332,115 | |
Gross oil and natural gas properties | 1,540,096 | 1,585,473 | 1,546,244 | |
Less - accumulated depletion | (561,989) | (465,849) | ||
Net oil and natural gas properties | 978,107 | 1,119,624 | 1,546,244 | |
Other operating property and equipment: | ||||
Other operating property and equipment | 68,195 | 38,617 | 38,071 | |
Less - accumulated depreciation | (2,967) | (1,107) | ||
Net other operating property and equipment | 65,228 | 37,510 | 38,071 | |
Other noncurrent assets: | ||||
Receivables from derivative contracts | 1,444 | 4,431 | ||
Funds in escrow and other | 2,408 | 1,887 | 1,637 | |
Total assets | 2,162,624 | 1,319,670 | 1,843,626 | |
Current liabilities: | ||||
Accounts payable and accrued liabilities | 172,012 | 186,184 | 173,688 | |
Liabilities from derivative contracts | 3,279 | 16,434 | 102 | |
Current portion of long-term debt, net | 408,879 | |||
Other | 8 | 4,935 | 4,849 | |
Total current liabilities | 584,178 | 207,553 | 178,639 | |
Other noncurrent liabilities: | ||||
Long-term debt, net | 408,879 | 964,653 | 1,016,160 | |
Liabilities from derivative contracts | 2,175 | 486 | 525 | |
Asset retirement obligations | 5,116 | 31,985 | 32,156 | |
Other | 288 | 2,305 | 3,953 | |
Commitments and contingencies (Note 10) | ||||
Stockholders' equity: | ||||
Common stock: 1,000,000,000 shares of $0.0001 par value authorized; 149,665,527 and 92,991,183 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 15 | 9 | 9 | |
Additional paid-in capital | 1,013,141 | 592,663 | 571,114 | |
Retained earnings (accumulated deficit) | 148,832 | (479,984) | ||
Total stockholders' equity | 1,161,988 | 112,688 | $ 571,123 | 571,123 |
Total liabilities and stockholders' equity | $ 2,162,624 | $ 1,319,670 | $ 1,843,626 |
CONDENSED CONSOLIDATED BALANCE4
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Stockholders' equity: | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 149,665,527 | 92,991,183 |
Common stock, shares outstanding | 149,665,527 | 92,991,183 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Total |
Balances (Predecessor) at Dec. 31, 2015 | $ 12 | $ 3,283,097 | $ (3,230,695) | $ 52,414 | |
Balances (in shares) (Predecessor) at Dec. 31, 2015 | 245 | 122,524 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | Predecessor | 11,958 | 11,958 | |||
Conversion of preferred stock (in shares) | Predecessor | (23) | 724 | |||
Preferred dividends of redeemable noncontrolling interest | Predecessor | (9,329) | (9,329) | |||
Accretion of redeemable noncontrolling interest | Predecessor | (26,576) | (26,576) | |||
Fair value of equity issued to Predecessor common stockholders | Predecessor | (22,176) | (22,176) | |||
Cash payment to Preferred Holders | Predecessor | (11,100) | (11,100) | |||
Reverse stock split rounding (in shares) | Predecessor | 5 | ||||
Offering costs | Predecessor | (10) | (10) | |||
Long-term incentive plan forfeitures (in shares) | Predecessor | (517) | ||||
Reduction in shares to cover individuals' tax withholding | Predecessor | (176) | (176) | |||
Reduction in shares to cover individuals' tax withholding (in shares) | Predecessor | (498) | ||||
Share-based compensation | Predecessor | 4,995 | 4,995 | |||
Balances (Predecessor) at Sep. 09, 2016 | $ 12 | 3,254,630 | (3,254,642) | (933,139) | |
Balances at Sep. 09, 2016 | 571,123 | ||||
Balances (in shares) (Predecessor) at Sep. 09, 2016 | 222 | 122,238 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Cancellation of Predecessor equity | Predecessor | $ (12) | (3,254,630) | 3,254,642 | ||
Cancellation of Predecessor equity (in shares) | Predecessor | (222) | (122,238) | |||
Issuance of Successor common stock and warrants | $ 9 | 571,114 | 571,123 | ||
Issuance of Successor common stock and warrants (in shares) | 90,000 | ||||
Balances at Sep. 10, 2016 | $ 9 | 571,114 | 571,123 | ||
Balances (in shares) at Sep. 10, 2016 | 90,000 | ||||
Balances (Predecessor) at Sep. 09, 2016 | $ 12 | 3,254,630 | (3,254,642) | (933,139) | |
Balances at Sep. 09, 2016 | 571,123 | ||||
Balances (in shares) (Predecessor) at Sep. 09, 2016 | 222 | 122,238 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (479,193) | (479,193) | |||
Preferred dividends of redeemable noncontrolling interest | (791) | (791) | |||
Long-term incentive plan grants (in shares) | 2,991 | ||||
Share-based compensation | 21,549 | 21,549 | |||
Balances at Dec. 31, 2016 | $ 9 | 592,663 | (479,984) | 112,688 | |
Balances (in shares) at Dec. 31, 2016 | 92,991 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 628,816 | 628,816 | |||
Sale of convertible preferred stock | 352,048 | 352,048 | |||
Sale of convertible preferred stock (in shares) | 6 | ||||
Preferred beneficial conversion feature | 48,007 | 48,007 | |||
Conversion of preferred stock | $ 6 | (6) | |||
Conversion of preferred stock (in shares) | (6) | 55,180 | |||
Offering costs | (11,919) | (11,919) | |||
Long-term incentive plan grants (in shares) | 2,022 | ||||
Long-term incentive plan forfeitures (in shares) | (232) | ||||
Reduction in shares to cover individuals' tax withholding | (1,845) | (1,845) | |||
Reduction in shares to cover individuals' tax withholding (in shares) | (295) | ||||
Share-based compensation | 34,193 | 34,193 | |||
Balances at Sep. 30, 2017 | $ 15 | $ 1,013,141 | $ 148,832 | $ 1,161,988 | |
Balances (in shares) at Sep. 30, 2017 | 149,666 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 1 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 09, 2016 | Sep. 30, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (450,692) | $ 628,816 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depletion, depreciation and accretion | 9,051 | 100,788 | |
Full cost ceiling impairment | 420,934 | ||
(Gain) loss on sale of oil and natural gas properties | (727,520) | ||
Share-based compensation, net | 13,196 | 33,548 | |
Unrealized loss (gain) on derivative contracts | 30,338 | (11,010) | |
Amortization and write-off of deferred loan costs | 1,306 | ||
Amortization of discount and premium | 377 | 2,358 | |
Reorganization items | 560 | (739) | |
Loss (gain) on extinguishment of debt | 86,065 | ||
Accrued settlements on derivative contracts | (22,695) | (673) | |
Other income (expense) | (94) | (3,393) | |
Change in assets and liabilities: | |||
Accounts receivable | 12,541 | 37,950 | |
Prepaids and other | (81) | (5,231) | |
Accounts payable and accrued liabilities | (1,113) | (40,043) | |
Net cash provided by (used in) operating activities | 12,322 | 102,222 | |
Cash flows from investing activities: | |||
Oil and natural gas capital expenditures | (10,289) | (218,880) | |
Proceeds received from sales of oil and natural gas properties | 1,901,578 | ||
Acquisition of oil and natural gas properties | (916,676) | ||
Acquisition of other operating property and equipment | (25,538) | ||
Other operating property and equipment capital expenditures | (231) | (25,474) | |
Proceeds received from sale of other operating property and equipment | 21,291 | ||
Funds held in escrow and other | (1,721) | 1,459 | |
Net cash provided by (used in) investing activities | (12,241) | 737,760 | |
Cash flows from financing activities: | |||
Proceeds from borrowings | 30,000 | 1,349,000 | |
Repayments of borrowings | (32,000) | (1,497,826) | |
Cash payments to Noteholders and Preferred Holders | (10,013) | (70,903) | |
Debt issuance costs | (17,220) | ||
Preferred stock issued | 400,055 | ||
Offering costs and other | (13,765) | ||
Net cash provided by (used in) financing activities | (12,013) | 149,341 | |
Net increase (decrease) in cash | (11,932) | 989,323 | |
Cash at beginning of period | 13,943 | 24 | |
Cash at end of period | 2,011 | $ 13,943 | 989,347 |
Supplemental cash flow information: | |||
Cash paid (received) for reorganization items | (4) | 739 | |
Disclosure of non-cash investing and financing activities: | |||
Asset retirement obligations | 8 | (28,481) | |
Accretion of non-cash preferred dividend | 48,007 | ||
Preferred dividends on redeemable noncontrolling interest paid-in-kind | 791 | ||
Accrued debt issuance costs | $ (153) | ||
Predecessor | |||
Cash flows from operating activities: | |||
Net income (loss) | 11,958 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depletion, depreciation and accretion | 120,555 | ||
Full cost ceiling impairment | 754,769 | ||
Other operating property and equipment impairment | 28,056 | ||
Share-based compensation, net | 4,876 | ||
Unrealized loss (gain) on derivative contracts | 263,732 | ||
Amortization and write-off of deferred loan costs | 6,371 | ||
Amortization of discount and premium | 1,515 | ||
Reorganization items | (929,084) | ||
Loss (gain) on extinguishment of debt | (81,434) | ||
Other income (expense) | (4,233) | ||
Change in assets and liabilities: | |||
Accounts receivable | 47,920 | ||
Prepaids and other | (4,329) | ||
Accounts payable and accrued liabilities | (45,324) | ||
Net cash provided by (used in) operating activities | 175,348 | ||
Cash flows from investing activities: | |||
Oil and natural gas capital expenditures | (226,741) | ||
Proceeds received from sales of oil and natural gas properties | (407) | ||
Acquisition of oil and natural gas properties | 124 | ||
Other operating property and equipment capital expenditures | (950) | ||
Proceeds received from sale of other operating property and equipment | 138 | ||
Funds held in escrow and other | 62 | ||
Net cash provided by (used in) investing activities | (227,774) | ||
Cash flows from financing activities: | |||
Proceeds from borrowings | 886,000 | ||
Repayments of borrowings | (727,648) | ||
Cash payments to Noteholders and Preferred Holders | (97,521) | ||
Debt issuance costs | (1,977) | ||
Offering costs and other | (511) | ||
Net cash provided by (used in) financing activities | 58,343 | ||
Net increase (decrease) in cash | 5,917 | ||
Cash at beginning of period | $ 13,943 | 8,026 | |
Cash at end of period | 13,943 | ||
Supplemental cash flow information: | |||
Cash paid (received) for reorganization items | 15,362 | ||
Disclosure of non-cash investing and financing activities: | |||
Accrued capitalized interest | (23,966) | ||
Asset retirement obligations | 939 | ||
Preferred dividends on redeemable noncontrolling interest paid-in-kind | 9,329 | ||
Accretion of redeemable noncontrolling interest | 26,576 | ||
Accrued debt issuance costs | $ 1,176 |
FINANCIAL STATEMENT PRESENTATIO
FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Sep. 30, 2017 | |
FINANCIAL STATEMENT PRESENTATION | |
FINANCIAL STATEMENT PRESENTATION | 1. FINANCIAL STATEMENT PRESENTATION Basis of Presentation and Principles of Consolidation Halcón Resources Corporation (Halcón or the Company) is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The unaudited condensed consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries. The Company operates in one segment which focuses on oil and natural gas acquisition, production, exploration and development. The Company's oil and natural gas properties are managed as a whole rather than through discrete operating areas. Operational information is tracked by operating area; however, financial performance is assessed as a whole. Allocation of capital is made across the Company's entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company's management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. During interim periods, Halcón follows the accounting policies disclosed in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on March 1, 2017. Please refer to the notes in the 2016 Annual Report on Form 10-K when reviewing interim financial results, though, as described below, such prior financial statements may not be comparable to the interim financial statements due to the adoption of fresh-start accounting on September 9, 2016. Emergence from Voluntary Reorganization under Chapter 11 On July 27, 2016 (the Petition Date), the Company and certain of its subsidiaries (the Halcón Entities) filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court in the District of Delaware (the Bankruptcy Court) to pursue a joint prepackaged plan of reorganization (the Plan). On September 8, 2016, the Bankruptcy Court entered an order confirming the Plan and on September 9, 2016, the Plan became effective (the Effective Date) and the Halcón Entities emerged from chapter 11 bankruptcy. The Company's subsidiary, HK TMS, LLC which was divested on September 30, 2016, was not part of the chapter 11 bankruptcy filings. See Note 2, "Reorganization," for further details on the Company's chapter 11 bankruptcy and the Plan and Note 4, "Acquisitions and Divestitures," for further details on the divestiture of HK TMS, LLC. Upon emergence from chapter 11 bankruptcy, the Company adopted fresh-start accounting in accordance with provisions of the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) 852, "Reorganizations" (ASC 852) which resulted in the Company becoming a new entity for financial reporting purposes on the Effective Date. Upon the adoption of fresh-start accounting, the Company's assets and liabilities were recorded at their fair values as of the fresh-start reporting date. As a result of the adoption of fresh-start accounting, the Company's unaudited condensed consolidated financial statements subsequent to September 9, 2016 are not comparable to its unaudited condensed consolidated financial statements prior to, and including, September 9, 2016. See Note 3, "Fresh-start Accounting," for further details on the impact of fresh-start accounting on the Company's unaudited condensed consolidated financial statements. References to "Successor" or "Successor Company" relate to the financial position and results of operations of the reorganized Company subsequent to September 9, 2016. References to "Predecessor" or "Predecessor Company" relate to the financial position and results of operations of the Company prior to, and including, September 9, 2016. Use of Estimates The preparation of the Company's unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue accruals, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, fair value estimates, including estimates of Reorganization Value, Enterprise Value and the fair value of assets and liabilities recorded as a result of the adoption of fresh-start accounting, plus the estimated fair values of assets acquired and liabilities assumed in connection with the Pecos County Acquisition and the fair value of assets sold in connection with the Williston Divestiture and the El Halcón Divestiture (see Note 4, "Acquisitions and Divestitures," for information on the Pecos County Acquisition, the Williston Divestiture and the El Halcón Divestiture), including the gains on sales recorded, and income taxes. The Company bases its estimates and judgments on historical experience and on various other assumptions and information believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company's operating environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company's unaudited condensed consolidated financial statements. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and, accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States has been condensed or omitted. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. Accounts Receivable and Allowance for Doubtful Accounts The Company's accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. The Company establishes provisions for losses on accounts receivable if it determines that collection of all or part of the outstanding balance is doubtful. The Company regularly reviews collectability and establishes or adjusts the allowance for doubtful accounts as necessary using the specific identification method. There were no significant allowances for doubtful accounts as of September 30, 2017 (Successor) or December 31, 2016 (Successor). Other Operating Property and Equipment Other operating property and equipment were recorded at fair value as a result of fresh-start accounting on September 9, 2016 and additions since that date are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: gas gathering systems, thirty years; water disposal and recycling facilities, twenty years; compressed natural gas facility, ten years; automobiles and computers, three years; computer software, fixtures, furniture and equipment, five years or the lesser of the lease term; trailers, seven years; heavy equipment, eight to ten years; buildings, twenty years and leasehold improvements, lease term. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures which increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. Refer to Note 4, "Acquisitions and Divestitures," for a discussion of other operating property and equipment acquired and divested during the period. The Company reviews its other operating property and equipment for impairment in accordance with ASC 360, Property, Plant, and Equipment (ASC 360). ASC 360 requires the Company to evaluate other operating property and equipment for impairment as events occur or circumstances change that would more likely than not reduce the fair value below the carrying amount. If the carrying amount is not recoverable from its undiscounted cash flows, then the Company would recognize an impairment loss for the difference between the carrying amount and the current fair value. Further, the Company evaluates the remaining useful lives of its other operating property and equipment at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods. For the period from January 1, 2016 through September 9, 2016 (Predecessor), the Company recorded a non-cash impairment charge of $28.1 million in "Other operating property and equipment impairment" in the Company's unaudited condensed consolidated statements of operations and in "Other operating property and equipment" in the Company's unaudited condensed consolidated balance sheets related to $32.8 million gross investments in gas gathering infrastructure that were deemed non-economical due to a shift in exploration, drilling and developmental plans in a low commodity price environment. In accordance with ASC 820, Fair Value Measurements and Disclosures (ASC 820), a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The estimate of the fair value of the Company's gas gathering infrastructure was based on an income approach that estimated future cash flows associated with those assets over the remaining asset lives. This estimation includes the use of unobservable inputs, such as estimated future production, gathering and compression revenues and operating expenses. The use of these unobservable inputs results in the fair value estimate of the Company's gas gathering infrastructure being classified as Level 3. Recently Issued Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). For public business entities, ASU 2017-01 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2017. The amendments in this ASU should be applied prospectively on or after the effective date. The ASU was issued to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The Company is in the process of assessing the effects of the application of the new guidance. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) (ASU 2016-15). For public business entities, ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. The areas for simplification in this ASU involve addressing eight specific classification issues in the statement of cash flows. An entity should apply the amendments in this ASU using a retrospective transition method. The Company is in the process of assessing the effects of the application of the new guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). For public business entities, ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and early adoption is permitted. The FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. An entity should apply the amendments in this ASU on a modified retrospective basis. The transition will require application of the new guidance at the beginning of the earliest comparative period presented in the financial statements. The Company is in the early stages of assessing the effects of the application of the new guidance and the financial statement and disclosure impacts. The Company will adopt ASU 2016-02 no later than January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides five steps an entity should apply in determining its revenue recognition. In March 2016, ASU 2014-09 was updated with ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), which provides further clarification on the principal versus agent evaluation. ASU 2014-09 is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet and is effective for annual reporting periods, and interim periods within that reporting period, beginning after December 15, 2017. Early adoption is not permitted. The Company is in the process of assessing its contracts with customers and evaluating the effects of the new guidance on its financial statements and disclosures. This process includes evaluating certain components of its natural gas gathering and processing agreements to determine whether changes to revenues and expenses will be appropriate when complying with the new guidance. The adoption is not expected to have a significant impact on the Company's net income or cash flows from operations. The Company will adopt ASU 2014-09 effective January 1, 2018. |
REORGANIZATION
REORGANIZATION | 9 Months Ended |
Sep. 30, 2017 | |
REORGANIZATION | |
REORGANIZATION | 2. REORGANIZATION On June 9, 2016, the Halcón Entities entered into a restructuring support agreement (the Restructuring Support Agreement) with certain holders of the Company's 13% senior secured third lien notes due 2022 (the Third Lien Noteholders), the Company's 8.875% senior unsecured notes due 2021, 9.25% senior unsecured notes due 2022 and 9.75% senior unsecured notes due 2020 (collectively, the Unsecured Noteholders), the holder of the Company's 8% senior unsecured convertible note due 2020 (the Convertible Noteholder), and certain holders of the Company's 5.75% Series A Convertible Perpetual Preferred Stock. On July 27, 2016, the Halcón Entities filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court in the District of Delaware to effect an accelerated prepackaged bankruptcy restructuring as contemplated in the Restructuring Support Agreement. On September 8, 2016, the Bankruptcy Court entered an order confirming the Plan and on September 9, 2016, the Halcón Entities emerged from chapter 11 bankruptcy. Upon emergence, pursuant to the terms of the Plan, the following significant transactions occurred: · the Predecessor Company's financing facility under the Predecessor Credit Agreement was refinanced and replaced with a debtor-in-possession senior secured, super-priority revolving credit facility, which was subsequently converted into the Senior Credit Agreement (refer to Note 6, "Debt," for further details regarding the Senior Credit Agreement); · the Predecessor Company's Second Lien Notes (consisting of $700.0 million in aggregate principal amount outstanding of 8.625% senior secured notes due 2020 and $112.8 million in aggregate principal amount outstanding of 12% senior secured notes due 2022) were unimpaired and reinstated; · the Predecessor Company's Third Lien Notes were cancelled and the Third Lien Noteholders received their pro rata share of 76.5% of the common stock of reorganized Halcón, together with a cash payment of $33.8 million, and accrued and unpaid interest on their notes through May 15, 2016, which interest was paid prior to the chapter 11 bankruptcy filing, in full and final satisfaction of their claims; · the Predecessor Company's Unsecured Notes were cancelled and the Unsecured Noteholders received their pro rata share of 15.5% of the common stock of reorganized Halcón, together with a cash payment of $37.6 million and warrants to purchase 4% of the common stock of reorganized Halcón (with a four year term and an exercise price of $14.04 per share), and accrued and unpaid interest on their notes through May 15, 2016, which interest was paid prior to the chapter 11 bankruptcy filing, in full and final satisfaction of their claims; · the Predecessor Company's Convertible Note was cancelled and the Convertible Noteholder received 4% of the common stock of reorganized Halcón, together with a cash payment of $15.0 million and warrants to purchase 1% of the common stock of reorganized Halcón (with a four year term and an exercise price of $14.04 per share), in full and final satisfaction of their claims; · the general unsecured claims were unimpaired and paid in full in the ordinary course; · all outstanding shares of the Predecessor Company's Series A Preferred Stock were cancelled and the Preferred Holders received their pro rata share of $11.1 million in cash, in full and final satisfaction of their interests; and · all of the Predecessor Company's outstanding shares of common stock were cancelled and the common stockholders received their pro rata share of 4% of the common stock of reorganized Halcón, in full and final satisfaction of their interests. Each of the foregoing percentages of equity in the reorganized Company were as of September 9, 2016 and are subject to dilution from the exercise of the new warrants described above, a management incentive plan discussed further in Note 11 , "Stockholders' Equity," and other future issuances of equity securities. See Note 6, " Debt ," and Note 11, " Stockholders' Equity ," for further information regarding the Company's Successor and Predecessor debt and equity instruments. |
FRESH-START ACCOUNTING
FRESH-START ACCOUNTING | 9 Months Ended |
Sep. 30, 2017 | |
FRESH-START ACCOUNTING | |
FRESH-START ACCOUNTING | 3. FRESH-START ACCOUNTING Upon the Company's emergence from chapter 11 bankruptcy, the Company qualified for and adopted fresh-start accounting in accordance with the provisions set forth in ASC 852 as (i) the Reorganization Value of the Company's assets immediately prior to the date of confirmation was less than the post-petition liabilities and allowed claims, and (ii) the holders of the existing voting shares of the Predecessor entity received less than 50% of the voting shares of the emerging entity. Refer to Note 2 , "Reorganization," for the terms of the Plan. Fresh-start accounting requires the Company to present its assets, liabilities, and equity as if it were a new entity upon emergence from bankruptcy. The new entity is referred to as "Successor" or "Successor Company." However, the Company will continue to present financial information for any periods before adoption of fresh-start accounting for the Predecessor Company. The Predecessor and Successor companies may lack comparability, as required in ASC Topic 205, Presentation of Financial Statements (ASC 205). ASC 205 states financial statements are required to be presented comparably from year to year, with any exceptions to comparability clearly disclosed. Therefore, "black-line" financial statements are presented to distinguish between the Predecessor and Successor companies. Adopting fresh-start accounting results in a new financial reporting entity with no beginning retained earnings or deficit as of the fresh-start reporting date. Upon the application of fresh-start accounting, the Company allocated the Reorganization Value (the fair value of the Successor Company's total assets) to its individual assets based on their estimated fair values. The Reorganization Value is intended to represent the approximate amount a willing buyer would value the Company's assets immediately after the reorganization. Reorganization Value is derived from an estimate of Enterprise Value, or the fair value of the Company's long-term debt, stockholders' equity and working capital. The estimated Enterprise Value at the Effective Date was below the midpoint of the Court approved range of $1.6 billion to $1.8 billion, primarily reflecting the decline in forward commodity prices during the period between the Company's analysis performed in advance of the July 2016 chapter 11 bankruptcy filing and the Effective Date. The Enterprise Value was derived from an independent valuation using an asset based methodology of proved reserves, undeveloped acreage, and other financial information, considerations and projections, applying a combination of the income, cost and market approaches as of the fresh-start reporting date of September 9, 2016. The Company's principal assets are its oil and natural gas properties. For purposes of estimating the fair value of the Company's proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Company's reserves, risked by reserve category and discounted using a weighted average cost of capital rate of 10.5% for proved reserves and 12.5% for probable and possible reserves. The proved reserve locations were limited to wells expected to be drilled in the Company's five year development plan. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $72.30 per barrel of oil, $3.50 per million British thermal units (MMBtu) of natural gas and $12.00 per barrel of oil equivalent of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and analysts' estimated prices. In estimating the fair value of the Company's unproved acreage that was not included in the valuation of probable and possible reserves, a market approach was used in which a review of recent transactions involving properties in the same geographical location indicated the fair value of the Company's unproved acreage from a market participant perspective. See further discussion below in the "Fresh-start accounting adjustments" for the specific assumptions used in the valuation of the Company's various other assets. Although the Company believes the assumptions and estimates used to develop Enterprise Value and Reorganization Value were reasonable and appropriate, different assumptions and estimates could materially impact the analysis and resulting conclusions. The assumptions used in estimating these values are inherently uncertain and require judgment. The following table reconciles the Company's Enterprise Value to the estimated fair value of the Successor's common stock as of September 9, 2016 (in thousands): September 9, Enterprise Value $ Plus: Cash Less: Fair value of debt ) Less: Fair value of redeemable noncontrolling interest ) Less: Fair value of other long-term liabilities ) Less: Fair value of warrants ) ​ ​ ​ ​ ​ Fair Value of Successor common stock $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table reconciles the Company's Enterprise Value to its Reorganization Value as of September 9, 2016 (in thousands): September 9, Enterprise Value $ Plus: Cash Plus: Current liabilities Plus: Noncurrent asset retirement obligation ​ ​ ​ ​ ​ Reorganization Value of Successor assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidated Balance Sheet The following illustrates the effects on the Company's unaudited condensed consolidated balance sheet due to the reorganization and fresh-start accounting adjustments. The explanatory notes following the table below provide further details on the adjustments, including the Company's assumptions and methods used to determine fair value for its assets and liabilities. Amounts included in the table below are rounded to thousands. As of September 9, 2016 Predecessor Reorganization Fresh-Start Successor Current assets: Cash $ $ ) (1) $ — $ Accounts receivable — — Receivables from derivative contracts — — Restricted cash — — Prepaids and other — ) (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and natural gas properties (full cost method): Evaluated — ) (8) Unevaluated — ) (8) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross oil and natural gas properties — ) Less—accumulated depletion ) — (8) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net oil and natural gas properties — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating property and equipment: Other operating property and equipment — ) (9) Less—accumulated depreciation ) — (9) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other operating property and equipment — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other noncurrent assets: Receivables from derivative contracts — — Funds in escrow and other — (10) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Accounts payable and accrued liabilities $ $ (2) $ — $ Liabilities from derivative contracts — — Other — (11)(12) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt, net — ) (13) Liabilities subject to compromise ) (3) — — Other noncurrent liabilities: Liabilities from derivative contracts — — Asset retirement obligations — ) (12) Other — (11)(14) Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest — ) (14) Stockholders' equity: Preferred stock (Predecessor) — — (4) — — Common Stock (Predecessor) ) (4) — — Common Stock (Successor) — (5) — Additional paid-in capital (Predecessor) ) (4) — — Additional paid-in capital (Successor) — (5) — Retained earnings (accumulated deficit) ) (6) ) (15) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reorganization adjustments (1) The table below details cash payments as of September 9, 2016, pursuant to the terms of the Plan described in Note 2, " Reorganization, " (in thousands): Payment to Third Lien Noteholders $ Payment to Unsecured Noteholders Payment to Convertible Noteholder Payment to Preferred Holders ​ ​ ​ ​ ​ Total Uses $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (2) In connection with the chapter 11 bankruptcy, the Company modified and rejected certain office lease arrangements and paid approximately $3.4 million for these modifications and rejections subsequent to the emergence from chapter 11 bankruptcy. This amount also reflects $10.3 million paid to the Company's restructuring advisors subsequent to the emergence from chapter 11 bankruptcy. (3) Liabilities subject to compromise were as follows (in thousands): 13.0% senior secured third lien notes due 2022 $ 9.25% senior notes due 2022 8.875% senior notes due 2021 9.75% senior notes due 2020 8.0% convertible note due 2020 Accrued interest Office lease modification and rejection fees ​ ​ ​ ​ ​ Liabilities subject to compromise Fair value of equity and warrants issued to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder ) Cash payments to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder ) Office lease modification and rejection fees ) ​ ​ ​ ​ ​ Gain on settlement of Liabilities subject to compromise $ ​ ​ ​ ​ ​ ​ ​ ​ ​ (4) Reflects the cancellation of Predecessor equity, as follows (in thousands): Predecessor Company stock $ Fair value of equity issued to Predecessor common stockholders ) Cash payment to Preferred Holders ) ​ ​ ​ ​ ​ Cancellation of Predecessor Company equity $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Reflects the issuance of Successor equity. In accordance with the Plan, the Successor Company issued 3.6 million shares of common stock to the Predecessor Company's existing common stockholders, 68.8 million shares of common stock to the Third Lien Noteholders, 14.0 million shares of common stock to the Unsecured Noteholders, and 3.6 million shares of common stock to the Convertible Noteholder. This amount is subject to dilution by warrants issued to the Unsecured Noteholders and the Convertible Noteholder totaling 4.7 million shares with an exercise price of $14.04 per share and a term of four years. The fair value of the warrants was estimated at $3.52 per share using a Black-Scholes-Merton valuation model. (6) The table below reflects the cumulative effect of the reorganization adjustments discussed above (in thousands): Gain on settlement of Liabilities subject to compromise $ Accrued reorganization items ) Cancellation of Predecessor Company equity ​ ​ ​ ​ ​ Net impact to retained earnings (accumulated deficit) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fresh-start accounting adjustments (7) Reflects the reclassification of tubulars and well equipment to " Oil and natural gas properties ." (8) In estimating the fair value of its oil and natural gas properties, the Company used a combination of the income and market approaches. For purposes of estimating the fair value of the Company's proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Company's reserves, risked by reserve category and discounted using a weighted average cost of capital rate of 10.5% for proved reserves and 12.5% for probable and possible reserves. The proved reserve locations were limited to wells expected to be drilled in the Company's five year development plan. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $72.30 per barrel of oil, $3.50 per MMBtu of natural gas and $12.00 per barrel of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and analysts' estimated prices. In estimating the fair value of the Company's unproved acreage that was not included in the valuation of probable and possible reserves, a market approach was used in which a review of recent transactions involving properties in the same geographical location indicated the fair value of the Company's unproved acreage from a market participant perspective. (9) In estimating the fair value of its other operating property and equipment, the Company used a combination of the income, cost, and market approaches. For purposes of estimating the fair value of its other operating property and equipment, an income approach was used that estimated future cash flows associated with the assets over the remaining useful lives. The valuation included such inputs as estimated future production, gathering and compression revenues, and operating expenses that were discounted at a weighted average cost of capital rate of 9.5%. For purposes of estimating the fair value of its other operating assets, the Company used a combination of the market and cost approaches. A market approach was relied upon to value land and computer equipment, and in this valuation approach, recent transactions of similar assets were utilized to determine the value from a market participant perspective. For the remaining other operating assets, a cost approach was used. The estimation of fair value under the cost approach was based on current replacement costs of the assets, less depreciation based on the estimated economic useful lives of the assets and age of the assets. (10) Reflects the adjustment of the Company's equity method investment in SBE Partners, L.P. to fair value based on an income approach, which calculated the discounted cash flows of the Company's share of the partnership's interest in oil and gas proved reserves. The anticipated cash flows of the reserves were risked by reserve category and discounted at 10.5%. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $72.30 per barrel of oil, $3.50 per MMBtu of natural gas and $12.00 per barrel of oil equivalent of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and analysts' estimated prices. (11) Records an intangible liability of approximately $8.3 million, $4.5 million of which was recorded as current, to adjust the Company's active rig contract to fair value at September 9, 2016. The intangible liability will be amortized over the remaining life of the contract. (12) Reflects the adjustment of asset retirement obligations to fair value using estimated plugging and abandonment costs as of September 9, 2016, adjusted for inflation and then discounted at the appropriate credit-adjusted risk free rate ranging from 5.5% to 6.6% depending on the life of the well. The fair value of asset retirement obligations was estimated at $32.5 million, approximately $0.3 million of which was recorded as current. Refer to Note 9, "Asset Retirement Obligations," for further details of the Company's asset retirement obligations. (13) Reflects the adjustment of the 2020 Second Lien Notes and the 2022 Second Lien Notes to fair value. The fair value estimate was based on quoted market prices from trades of such debt on September 9, 2016. Refer to Note 6, "Debt," for definitions of and further information regarding the 2020 Second Lien Notes and 2022 Second Lien Notes. (14) Reflects the adjustment of the Company's redeemable noncontrolling interest and related embedded derivative of HK TMS, LLC to fair value. The fair value of the redeemable noncontrolling interest was estimated at $41.1 million and the embedded derivative was estimated at zero. For purposes of estimating the fair values, an income approach was used that estimated fair value based on the anticipated cash flows associated with HK TMS, LLC's proved reserves, risked by reserve category and discounted using a weighted average cost of capital rate of 12.5%. The value of the redeemable noncontrolling interest was further reduced by a probability factor of the potential assignment of the common shares of HK TMS, LLC to Apollo Global Management, which occurred subsequent to the fresh-start date. Refer to Note 4, "Acquisitions and Divestitures," for further information regarding the divestiture of HK TMS, LLC on September 30, 2016. (15) Reflects the cumulative effect of the fresh-start accounting adjustments discussed above. Reorganization Items Reorganization items represent (i) expenses or income incurred subsequent to the Petition Date as a direct result of the Plan, (ii) gains or losses from liabilities settled, and (iii) fresh-start accounting adjustments and are recorded in "Reorganization items" in the Company's unaudited condensed consolidated statements of operations. The following table summarizes the net reorganization items (in thousands): Successor Predecessor Period from Period from Gain on settlement of Liabilities subject to compromise $ — $ Fresh start adjustments — ) Reorganization professional fees and other ) ) Write-off debt discounts/premiums and debt issuance costs — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (loss) on reorganization items $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 9 Months Ended |
Sep. 30, 2017 | |
ACQUISITIONS AND DIVESTITURES | |
ACQUISITIONS AND DIVESTITURES | 4. ACQUISITIONS AND DIVESTITURES Acquisitions Delaware Basin Assets (Pecos and Reeves Counties, Texas) On January 18, 2017 (Successor), Halcón Energy Properties, Inc., a wholly owned subsidiary of the Company, entered into a Purchase and Sale Agreement with Samson Exploration, LLC (Samson), pursuant to which it agreed to acquire acreage and related assets in the Hackberry Draw area of the Delaware Basin, located in Pecos and Reeves Counties, Texas (collectively, the Pecos County Assets), for a total purchase price of $699.2 million (the Pecos County Acquisition). The Pecos County Acquisition closed on February 28, 2017. The transaction had an effective date of November 1, 2016. The Company funded the Pecos County Acquisition with the net proceeds from the private placement of its preferred stock and borrowings under its Senior Credit Agreement. Refer to Note 11, "Stockholders' Equity," for further discussion of the Company's issuance of the Preferred Stock. The Pecos County Acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations (ASC 805) which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. The estimated fair value of the properties acquired approximates the fair value of consideration and as a result no goodwill was recognized. The following table summarizes the consideration paid to acquire the Pecos County Assets, as well as the estimated values of assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash consideration paid to Samson at closing (1) $ Less: Post-effective closing date adjustments (2) ) ​ ​ ​ ​ ​ Final consideration transferred $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plus: Estimated Fair Value of Liabilities Assumed: Current liabilities $ Asset retirement obligations ​ ​ ​ ​ ​ Amount attributable to liabilites assumed ​ ​ ​ ​ ​ Total purchase price plus liabilities assumed $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated Fair Value of Assets Acquired: Evaluated oil and natural gas properties (3)(4) $ Unevaluated oil and natural gas properties (3)(4) Other operating property and equipment (5) ​ ​ ​ ​ ​ Amount attributable to assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents amount of cash consideration, adjusted for customary closing items, for the purchase of the Pecos County Assets funded by the issuance of approximately $400.1 million of new 8% automatically convertible preferred stock and borrowings under the Senior Credit Agreement. (2) In accordance with the purchase agreement, the effective date of the acquisition was November 1, 2016 and therefore revenues, expenses and related capital expenditures from November 1, 2016 through February 28, 2017, the closing date of the Pecos County Acquisition, have been reflected as adjustments to the purchase price consideration. (3) In estimating the fair value of the Pecos County Assets' oil and natural gas properties, the Company used an income approach. For purposes of estimating the fair value of the proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Pecos County Assets' estimated reserves risked by reserve category and discounted using a weighted average cost of capital rate of 10.0% for proved reserves and 12.0% for probable and possible reserves. The proved reserve locations were limited to wells expected to be drilled in the Company's five-year development plan. This estimation includes the use of unobservable inputs, such as estimated future production, oil and natural gas revenues and expenses. The use of these unobservable inputs results in the fair value estimate of the Pecos County Assets being classified as Level 3. (4) Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $76.10 per barrel of oil, $4.14 per Mcf of natural gas and $29.48 per barrel of oil equivalent of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and research analysts' estimated prices. (5) In estimating the fair value of the Pecos County Assets' other operating property and equipment, the Company used a combination of the cost and market approaches. A market approach was relied upon to value the land, heavy equipment and vehicles, and in this valuation approach, recent transactions of similar assets were utilized to determine the value from a market participant perspective. For the remaining other operating assets, a cost approach was used. The estimation of fair value under the cost approach was based on current replacement costs of the assets, less depreciation based on the estimated economic useful lives of the assets and age of the assets. The following unaudited pro forma combined results of operations are provided for the nine months ended September 30, 2017 (Successor) and the period of September 10, 2016 through September 30, 2016 (Successor) and the period of January 1, 2016 through September 9, 2016 (Predecessor) as though the Pecos County Acquisition had been completed as of the beginning of the comparable prior annual reporting period, or January 1, 2016. The pro forma combined results of operations for the nine months ended September 30, 2017 (Successor) and the period of September 10, 2016 through September 30, 2016 (Successor) and the period of January 1, 2016 through September 9, 2016 (Predecessor) have been prepared by adjusting the historical results of the Company to include the historical results of the Pecos County Assets. These supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined Company for the periods presented or that may be achieved by the combined Company in the future. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Pecos County Acquisition or any estimated costs that will be incurred to integrate the Pecos County Assets. Future results may vary significantly from the results reflected in this unaudited pro forma financial information because of future events and transactions, as well as other factors. Amounts included in the table below are rounded to thousands. Successor Predecessor Nine Months Period from Period from (Unaudited) (Unaudited) (Unaudited) Revenue $ $ $ Net income (loss) ) Net income (loss) available to common stockholders ) ) Pro forma net income (loss) per share of common stock: Basic $ $ ) $ ) Diluted $ $ ) $ ) The Company's historical financial information was adjusted to give effect to the pro forma events that are directly attributable to the Pecos County Assets and are factually supportable. The unaudited pro forma consolidated results include the historical revenues and expenses of assets acquired and liabilities assumed, with the following adjustments: • Adjustment to recognize incremental depletion expense under the full cost method of accounting based on the fair value of the oil and natural gas properties and incremental accretion expense based on the asset retirement costs of the oil and natural gas properties at acquisition; • Adjustment to recognize incremental depreciation expense of the other operating property and equipment and incremental accretion expense based on the asset retirement costs of the other operating property and equipment at acquisition; and • Eliminate transaction costs and non-recurring charges directly related to the transactions that were included in the historical results of operations for the Company in the amount of approximately $1.0 million. Transaction costs directly related to the transaction that do not have a continuing impact on the combined Company's operating results have been excluded from the pro forma earnings. For the nine months ended September 30, 2017 (Successor), the Company recognized $28.3 million of oil, natural gas and natural gas liquids and other revenue related to the Pecos County Assets and $2.4 million of net field operating income (oil, natural gas and natural gas liquids and other revenues less lease operating expense, workover expense, production taxes, gathering and other expense, and depletion, depreciation and accretion expense) related to the Pecos County Assets. Additionally, non-recurring transaction costs of approximately $1.0 million related to the Pecos County Acquisition for the nine months ended September 30, 2017 (Successor) are included in the unaudited condensed consolidated statements of operations in " General and administrative" expenses; these non-recurring transaction costs have been excluded from the pro forma results for all periods presented in the above table. Divestitures Williston Basin Operated Assets On July 10, 2017 (Successor), the Company and certain of its subsidiaries entered into an Agreement of Sale and Purchase (the Purchase Agreement) with Bruin Williston Holdings, LLC (the Purchaser) for the sale of all of the Company's operated oil and natural gas leases, oil and natural gas wells and related assets located in the Williston Basin in North Dakota, as well as 100% of the membership interests in two of its subsidiaries (the Williston Assets) for a total adjusted sales price of approximately $1.4 billion, subject to post-closing adjustments (the Williston Divestiture). The effective date of the sale was June 1, 2017 and the transaction closed on September 7, 2017. The Company is using the net proceeds from the sale to repay borrowings outstanding under its Senior Credit Agreement, repurchase approximately $425 million principal amount of the outstanding $850 million principal amount of its 6.75% senior unsecured notes, redeem all of its outstanding 12% second lien notes and for general corporate purposes. The net proceeds from the sale were allocated between the Company's oil and natural gas properties, other operating property and equipment and liabilities transferred on a fair value basis. Approximately $1.39 billion was allocated to the Company's oil and natural gas properties and approximately $10.9 million was allocated to other operating property and equipment. As discussed further in Note 5, "Oil and Natural Gas Properties," the Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, sales of oil and gas properties are accounted for as adjustments to capitalized costs with no gain or loss recognized, unless the adjustment significantly alters the relationship between capitalized costs and proved reserves. If the Williston Divestiture was accounted for as an adjustment of capitalized costs with no gain or loss recognized, the adjustment would have significantly altered the relationship between capitalized costs and proved reserves. Accordingly, the Company recognized a gain on the sale of the Williston Assets of $491.8 million during the three months ended September 30, 2017 (Successor). The carrying value of the properties sold was determined by allocating total capitalized costs within the full cost pool between properties sold and properties retained based on their relative fair values. The gain was recorded in "Gain (loss) on the sale of oil and natural gas properties," on the Company's unaudited condensed consolidated statements of operations. East Texas Eagle Ford Assets On January 24, 2017 (Successor), certain of the Company's subsidiaries entered into an Agreement of Sale and Purchase with a subsidiary of Hawkwood Energy, LLC (Hawkwood) for the sale of all of the Company's oil and natural gas properties and related assets located in the Eagle Ford formation of East Texas (the El Halcón Assets) for a total adjusted sales price of $491.1 million (the El Halcón Divestiture). The effective date of the sale was January 1, 2017 and the transaction closed on March 9, 2017. The Company used the net proceeds from the sale to repay borrowings outstanding under its Senior Credit Agreement and for general corporate purposes. The net proceeds from the sale were allocated between the Company's oil and natural gas properties, other operating property and equipment and liabilities transferred on a fair value basis. Approximately $10.2 million was allocated to other operating property and equipment and approximately $484.1 million was allocated to the Company's oil and natural gas properties. Under the full cost method of accounting, sales of oil and gas properties are accounted for as adjustments of capitalized costs with no gain or loss recognized, unless the adjustment significantly alters the relationship between capitalized costs and proved reserves. If the El Halcón Divestiture was accounted for as an adjustment of capitalized costs with no gain or loss recognized, the adjustment would have significantly altered the relationship between capitalized costs and proved reserves. Accordingly, the Company recognized a gain on the sale of $235.7 million during the nine months ended September 30, 2017 (Successor). The carrying value of the properties sold was determined by allocating total capitalized costs within the full cost pool between properties sold and properties retained based on their relative fair values. The gain was recorded in "Gain (loss) on sale of oil and natural gas properties," on the Company's unaudited condensed consolidated statements of operations. HK TMS, LLC On September 30, 2016, certain wholly-owned subsidiaries of the Successor Company executed an Assignment and Assumption Agreement with an affiliate of Apollo Global Management (Apollo) pursuant to which Apollo acquired one hundred percent (100%) of the common shares (the Membership Interests) of HK TMS, LLC (HK TMS), which transaction is referred to as the HK TMS Divestiture. HK TMS was previously a wholly-owned subsidiary and held all of the Successor Company's oil and natural gas properties in the Tuscaloosa Marine Shale (TMS). In exchange for the assignment of the Membership Interests, Apollo assumed all obligations relating to the Membership Interests, which were previously classified as "Mezzanine Equity" on the unaudited condensed consolidated balance sheets of HK TMS, from and after such date. Prior to the HK TMS Divestiture, the preferred shares were considered probable of becoming redeemable and therefore were accreted up to the estimated required redemption value. The accretion was presented as a deemed dividend and recorded in " Preferred dividends and accretion on redeemable noncontrolling interest " on the unaudited condensed consolidated statements of operations. For the period of September 10, 2016 through September 30, 2016 (Successor) and January 1, 2016 through September 9, 2016 (Predecessor), HK TMS issued 791 and 9,329 additional preferred shares to Apollo for dividends paid-in-kind, respectively. These dividends were presented within " Preferred dividends and accretion on redeemable noncontrolling interest " on the unaudited condensed consolidated statements of operations. HK TMS was not included in the chapter 11 bankruptcy filings or the Restructuring Support Agreement discussed in Note 2, " Reorganization. " |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 9 Months Ended |
Sep. 30, 2017 | |
OIL AND NATURAL GAS PROPERTIES | |
OIL AND NATURAL GAS PROPERTIES | 5. OIL AND NATURAL GAS PROPERTIES The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas reserves (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs are charged to expense. Additionally, the Company assesses all properties classified as unevaluated property on a quarterly basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group, if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and the full cost ceiling test limitation. Investments in unevaluated oil and natural gas properties and exploration and development projects for which depletion expense is not currently recognized, and for which exploration or development activities are in progress, qualify for interest capitalization. The Predecessor Company determined capitalized interest by multiplying the Predecessor Company's weighted-average borrowing cost on debt by the average amount of qualifying costs incurred that were excluded from the full cost pool. The capitalized interest amounts were recorded as additions to "Unevaluated oil and natural gas properties" on the unaudited condensed consolidated balance sheets. For the period from January 1, 2016 through September 9, 2016 (Predecessor), the Company capitalized interest costs of $68.2 million. The Successor Company's policy on the capitalization of interest establishes thresholds for the determination of a development project for the purpose of interest capitalization. At September 30, 2017 (Successor), the ceiling test value of the Company's reserves was calculated based on the first-day-of-the-month average for the 12-months ended September 30, 2017 of the West Texas Intermediate (WTI) crude oil spot price of $49.81 per barrel, adjusted by lease or field for quality, transportation fees, and regional price differentials, and the first-day-of-the-month average for the 12-months ended September 30, 2017 of the Henry Hub natural gas price of $3.00 per MMBtu, adjusted by lease or field for energy content, transportation fees, and regional price differentials. Using these prices, the Company's net book value of oil and natural gas properties at September 30, 2017 (Successor) did not exceed the ceiling amount. At September 30, 2016 (Successor), the ceiling test value of the Company's reserves was calculated based on the first-day-of-the-month average for the 12-months ended September 30, 2016 of the WTI crude oil spot price of $41.68 per barrel, adjusted by lease or field for quality, transportation fees, and regional price differentials, and the first-day-of-the-month average for the 12-months ended September 30, 2016 of the Henry Hub natural gas price of $2.28 per MMBtu, adjusted by lease or field for energy content, transportation fees, and regional price differentials. Using these prices, the Company's net book value of oil and natural gas properties at September 30, 2016 exceeded the ceiling amount by $420.9 million ($268.1 million after taxes, before valuation allowance) which resulted in a ceiling test impairment of that amount for the period of September 10, 2016 through September 30, 2016 (Successor). The impairment at September 30, 2016 reflects the differences between the first day of the month average prices for the preceding 12-months required by Regulation S-X, Rule 4-10 and ASC 932 in calculating the ceiling test and the forward-looking prices required by ASC 852 to estimate the fair value of the Company's oil and natural gas properties on the fresh-start reporting date of September 9, 2016. At June 30, 2016 (Predecessor) and March 31, 2016 (Predecessor), the Company recorded a full cost ceiling impairment before income taxes of $257.9 million ($163.1 million after taxes, before valuation allowance) and $496.9 million ($315.1 million after taxes, before valuation allowance), respectively. The ceiling test impairments at March 31, 2016 and June 30, 2016, were driven by decreases in the first-day-of-the-month 12-month average prices for crude oil used in the ceiling test calculations since December 31, 2015, when the first-day-of-month 12-month average price for crude oil was $50.28 per barrel. The impairment at March 31, 2016 also reflects the transfer of the remaining unevaluated Utica/Point Pleasant (Utica) and TMS properties of approximately $330.4 million and $74.8 million, respectively, to the full cost pool. As discussed above, the Company considers the facts and circumstances around its unevaluated properties that may indicate impairment on a quarterly basis. For the quarter ended March 31, 2016, management concluded that it was no longer probable that capital would be available or approved to continue exploratory drilling activities in the Company's Utica or TMS acreage positions in advance of the related lease expirations due to the Company's evaluation of strategic alternatives to reduce its debt and preserve liquidity in light of continued low commodity prices, together with a reduction of the Company's exploration department and the Company's intent to expend capital only on its most economical and proven areas. The Company recorded the full cost ceiling test impairments in " Full cost ceiling impairment " in the Company's unaudited condensed consolidated statements of operations and in " Accumulated depletion " in the Company's unaudited condensed consolidated balance sheets. Changes in commodity prices, production rates, levels of reserves, future development costs, transfers of unevaluated properties, capital spending, and other factors will determine the Company's ceiling test calculations and impairment analyses in future periods. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2017 | |
DEBT | |
DEBT | 6. DEBT Long-term debt as of September 30, 2017 (Successor) and December 31, 2016 (Successor) consisted of the following (in thousands): Successor September 30, December 31, Senior revolving credit facility $ — $ 8.625% senior secured second lien notes due 2020 (1) — 12.0% senior secured second lien notes due 2022 (2) — 6.75% senior notes due 2025 (3) — ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) On February 16, 2017, the Company repurchased approximately 41% of the outstanding aggregate principal amount of its 8.625% senior secured second lien notes due 2020 with proceeds from the issuance of new 6.75% senior unsecured notes due 2025. The remaining aggregate principal amount was redeemed on March 20, 2017. Amount was net of a $27.4 million unamortized discount at December 31, 2016 (Successor). Refer to "8.625% Senior Secured Second Lien Notes" below for further details. (2) On September 7, 2017, the Company issued an irrevocable notice to redeem the outstanding aggregate principal amount of its 12.0% senior secured second lien notes due 2022 on October 7, 2017. Amount is net of a $6.8 million unamortized discount at December 31, 2016 (Successor). Refer to "12.0% Senior Secured Second Lien Notes" below for further details. (3) On February 16, 2017, the Company issued $850.0 million aggregate principal amount of new 6.75% senior unsecured notes due 2025. On October 10, 2017, the Company repurchased $425.0 million principal amount of the 2025 Notes at 103.0% of par plus accrued and unpaid interest. The repurchased 2025 Notes are presented in "Current portion of long-term debt, net" on the unaudited condensed consolidated balance sheet at September 30, 2017. Amount is net of $8.3 million unamortized discount and $7.8 million unamortized debt issuance costs at September 30, 2017 (Successor). Refer to "6.75% Senior Notes" below for further details. Senior Revolving Credit Facility On September 7, 2017, the Company entered into an Amended and Restated Senior Secured Revolving Credit Agreement (the Senior Credit Agreement) by and among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and certain other financial institutions party thereto, as lenders. The Senior Credit Agreement amends and restates in its entirety the original Senior Secured Revolving Credit Agreement entered into on September 9, 2016. Pursuant to the Senior Credit Agreement, the lenders party thereto have agreed to provide the Company with a $1.0 billion senior secured reserve-based revolving credit facility with a current borrowing base of $100.0 million. The maturity date of the Senior Credit Agreement is September 7, 2022. The borrowing base will be redetermined semi-annually, with the lenders and the Company each having the right to one interim unscheduled redetermination between any two consecutive semi-annual redeterminations. The borrowing base takes into account the estimated value of the Company's oil and natural gas properties, proved reserves, total indebtedness, and other relevant factors consistent with customary oil and natural gas lending criteria. Amounts outstanding under the Senior Credit Agreement bear interest at specified margins over the base rate of 1.25% to 2.25% for ABR-based loans or at specified margins over LIBOR of 2.25% to 3.25% for Eurodollar-based loans. These margins fluctuate based on the Company's utilization of the facility. The Company may elect, at its option, to prepay any borrowings outstanding under the Senior Credit Agreement without premium or penalty (except with respect to any break funding payments which may be payable pursuant to the terms of the Senior Credit Agreement). Amounts outstanding under the Senior Credit Agreement are guaranteed by certain of the Company's direct and indirect subsidiaries and secured by a security interest in substantially all of the assets of the Company and its subsidiaries. The Senior Credit Agreement also contains certain financial covenants, including the maintenance of (i) a Total Net Indebtedness Leverage Ratio (as defined in the Senior Credit Agreement) not to exceed 4.00:1.00 and (ii) a Current Ratio (as defined in the Senior Credit Agreement) not to be less than 1.00:1.00. At September 30, 2017 (Successor), the Company was in compliance with the financial covenants under the Senior Credit Agreement. The Senior Credit Agreement also contains certain events of default, including non-payment; breaches of representations and warranties; non-compliance with covenants or other agreements; cross-default to material indebtedness; judgments; change of control; and voluntary and involuntary bankruptcy. At September 30, 2017 (Successor), under the then effective borrowing base of $140.0 million, the Company had no indebtedness outstanding, approximately $6.4 million letters of credit outstanding and approximately $133.6 million of borrowing capacity available under the Senior Credit Agreement. 8.625% Senior Secured Second Lien Notes On May 1, 2015 (Predecessor), the Company issued $700.0 million aggregate principal amount of its 8.625% senior secured second lien notes due 2020 (the 2020 Second Lien Notes) in a private offering. The 2020 Second Lien Notes were issued at par. The net proceeds from the sale of the 2020 Second Lien Notes were approximately $686.2 million (after deducting offering fees and expenses). The 2020 Second Lien Notes bore interest at a rate of 8.625% per annum, payable semi-annually on February 1 and August 1 of each year. In accordance with the Plan, the 2020 Second Lien Notes were unimpaired and reinstated upon the Company's emergence from chapter 11 bankruptcy. On February 16, 2017 (Successor), the Company paid approximately $303.5 million for approximately $289.2 million principal amount of 2020 Second Lien Notes, a make-whole premium of $13.2 million plus accrued and unpaid interest of approximately $1.1 million to repurchase such notes pursuant to a tender offer and issued a redemption notice to redeem the remaining 2020 Second Lien Notes. On February 21, 2017 (Successor), the Company paid approximately $1.2 million for approximately $1.2 million of principal amount of 2020 Second Lien Notes, a make-whole premium of approximately $54,000 plus accrued and unpaid interest to repurchase such notes pursuant to guaranteed delivery procedures of the tender offer. On March 20, 2017 (Successor), the Company paid approximately $432.0 million for $409.6 million aggregate principal amount of 2020 Second Lien Notes, a make-whole premium of $17.7 million and unpaid interest of approximately $4.8 million to redeem the remaining notes at a price of 104.313% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date. The repurchase and redemption of the 2020 Second Lien Notes was funded with proceeds from the issuance of $850.0 million in new 6.75% senior unsecured notes due 2025. The Company recognized a loss on the extinguishment of debt, representing a $30.9 million loss on the repurchase for the tender premium paid and a $26.0 million loss on the write-off of the discount on the notes. The loss was recorded in "Gain (loss) on extinguishment of debt" on the unaudited condensed consolidated statements of operations. 12.0% Senior Secured Second Lien Notes On December 21, 2015 (Predecessor), the Company completed the issuance in a private placement of approximately $112.8 million aggregate principal amount of new 12.0% senior secured second lien notes due 2022 (the 2022 Second Lien Notes) in exchange for approximately $289.6 million principal amount of its then outstanding senior unsecured notes, consisting of $116.6 million principal amount of 9.75% senior notes due 2020, $137.7 million principal amount of 8.875% senior notes due 2021 and $35.3 million principal amount of 9.25% senior notes due 2022. At closing, the Predecessor Company paid all accrued and unpaid interest since the respective interest payment dates of the unsecured notes surrendered in the exchange. The 2022 Second Lien Notes bore interest at a rate of 12.0% per annum, payable semi-annually on February 15 and August 15 of each year. In accordance with the terms of the Plan, the 2022 Second Lien Notes were unimpaired and reinstated upon the Company's emergence from chapter 11 bankruptcy. On September 7, 2017 (Successor), the Company issued an irrevocable notice to redeem the outstanding aggregate principal amount of its 2022 Second Lien Notes on October 7, 2017 (the Redemption Date). In accordance with the terms of the indenture governing the 2022 Second Lien Notes, all of the outstanding 2022 Second Lien Notes were redeemed at a redemption price equal to the principal amount of $112.8 million plus a make whole premium of approximately $23.0 million and accrued and unpaid interest of approximately $2.0 million. On September 7, 2017, utilizing $137.8 million of the proceeds from the Williston Divestiture, the Company deposited with U.S. Bank National Association an amount of funds sufficient to fund the redemption, delivered instructions to apply the deposited funds toward the redemption, and received a written acknowledgment from U.S. Bank National Association of the satisfaction and discharge of the indenture governing the 2022 Second Lien Notes and the obligations of the Company and the subsidiary guarantors under the 2022 Second Lien Notes and related guarantees. The payment of the redemption price and accrued interest to a holder of 2022 Second Lien Notes became due and payable on the Redemption Date upon presentation and surrender by the holder of such notes. The Company recognized a loss on the extinguishment of debt, representing a $23.0 million loss on the redemption for the make whole premium paid and a $6.2 million loss on the write-off of the discount on the notes. The loss was recorded in "Gain (loss) on extinguishment of debt" on the unaudited condensed consolidated statements of operations. 6.75% Senior Notes On February 16, 2017 (Successor), the Company issued $850.0 million aggregate principal amount of new 6.75% senior unsecured notes due 2025 (the 2025 Notes) in a private placement exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (Securities Act), Rule 144A and Regulation S, and applicable state securities laws. The 2025 Notes were issued at par and bear interest at a rate of 6.75% per annum, payable semi-annually on February 15 and August 15 of each year, beginning on August 15, 2017. The 2025 Notes will mature on February 15, 2025. Proceeds from the private placement were approximately $834.1 million after deducting initial purchasers' discounts and commissions and offering expenses. The Company used a portion of the net proceeds from the private placement to fund the repurchase and redemption of the outstanding 2020 Second Lien Notes, as discussed above, and for general corporate purposes. The 2025 Notes are governed by an Indenture, dated as of February 16, 2017 (as supplemented, the February 2017 Indenture) by and among the Company, the Guarantors and U.S. Bank National Association, as Trustee, which contains affirmative and negative covenants that, among other things, limit the ability of the Company and the Guarantors to incur indebtedness; purchase or redeem stock or subordinated indebtedness; make investments; create liens; enter into transactions with affiliates; sell assets; refinance certain indebtedness; merge with or into other companies or transfer substantially all of their assets; and, in certain circumstances, to pay dividends or make other distributions on stock. The February 2017 Indenture also contains customary events of default. Upon the occurrence of certain events of default, the Trustee or the holders of the 2025 Notes may declare all outstanding 2025 Notes to be due and payable immediately. The 2025 Notes are jointly and severally, fully and unconditionally guaranteed on a senior unsecured basis by the Company's existing wholly-owned subsidiaries. Halcón, the issuer of the 2025 Notes, has no material independent assets or operations apart from the assets and operations of its subsidiaries. In connection with the sale of the 2025 Notes, on February 16, 2017, the Company, the Guarantors and J.P. Morgan Securities LLC, on behalf of itself and as representative of the initial purchasers, entered into a Registration Rights Agreement (the 2017 Registration Rights Agreement) pursuant to which the Company agreed to, among other things, use reasonable best efforts to file a registration statement under the Securities Act and complete an exchange offer for the 2025 Notes within 365 days after closing. In the event the Company fails to comply with its obligations under the 2017 Registration Rights Agreement, it will be subject to penalties in the form of additional interest payable on the 2025 Notes. At any time prior to February 15, 2020, the Company may redeem the 2025 Notes, in whole or in part, at a redemption price equal to 100% of their principal amount plus a make-whole premium, together with accrued and unpaid interest, if any, to the redemption date. The 2025 Notes will be redeemable, in whole or in part, on or after February 15, 2020 at redemption prices equal to the principal amount multiplied by the percentage set forth below, plus accrued and unpaid interest (if any) on the 2025 Notes redeemed during the twelve month period indicated beginning on February 15 of the years indicated below: Year Percentage 2020 2021 2022 2023 and thereafter Additionally, the Company may redeem up to 35% of the 2025 Notes prior to February 15, 2020 for a redemption price of 106.75% of the principal amount thereof, plus accrued and unpaid interest, utilizing net cash proceeds from certain equity offerings. In addition, upon a change of control of the Company, holders of the 2025 Notes will have the right to require the Company to repurchase all or any part of their 2025 Notes for cash at a price equal to 101% of the aggregate principal amount of the 2025 Notes repurchased, plus any accrued and unpaid interest. On July 25, 2017, the Company concluded a consent solicitation of the holders of the 2025 Notes (the Consent Solicitation) and obtained consents to amend the February 2017 Indenture from approximately 99% of the holders of the 2025 Notes. As supplemented, the February 2017 Indenture amends provisions in order to exempt, among other things, the Williston Divestiture from certain provisions therein triggered upon a sale of "all or substantially all of the assets" of the Company. Consenting holders of the 2025 Notes received a consent fee of 2.0% of principal, or $16.9 million. The Company recorded the $16.9 million consent fees paid as a discount on the 2025 Notes during the three months ended September 30, 2017. The remaining unamortized discount on the $850 million principal amount of 2025 Notes was $16.7 million at September 30, 2017. On September 7, 2017, the Company commenced an offer to purchase for cash up to $425.0 million of the $850.0 million outstanding aggregate principal amount of its 2025 Notes at 103.0% of principal plus accrued and unpaid interest. The consummation of the Williston Divestiture constituted a "Williston Sale" under the February 2017 Indenture, and the Company was required to make an offer to all holders of the 2025 Notes to purchase for cash an aggregate principal amount up to $425.0 million of the 2025 Notes. The offer to purchase expired on October 6, 2017, with notes representing in excess of $425.0 million of principal amount validly tendered. As a result, on October 10, 2017, the Company repurchased $425.0 million principal amount of the 2025 Notes on a pro rata basis at 103.0% of par plus accrued and unpaid interest. The repurchased 2025 Notes are presented in "Current portion of long-term debt, net" on the unaudited condensed consolidated balance sheet at September 30, 2017. Debt Issuance Costs The Company capitalizes certain direct costs associated with the issuance of debt and amortizes such costs over the lives of the respective debt. During the nine months ended September 30, 2017 (Successor), the Company capitalized approximately $17.1 million of debt issuance costs related to the Senior Credit Agreement and the 2025 Notes. The debt issuance costs for the Successor Company's Senior Credit Agreement are presented in "Funds in escrow and other " and the debt issuance costs for the Company's senior unsecured debt are presented in "Current portion of long-term debt, net" and "Long-term debt, net" on the unaudited condensed consolidated balance sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 7. FAIR VALUE MEASUREMENTS Pursuant to ASC 820, Fair Value Measurements (ASC 820), the Company's determination of fair value incorporates not only the credit standing of the counterparties involved in transactions with the Company resulting in receivables on the Company's unaudited condensed consolidated balance sheets, but also the impact of the Company's nonperformance risk on its own liabilities. ASC 820 defines fair value as 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 (exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 measurements are inputs that are observable for assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. As required by ASC 820, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There were no transfers between fair value hierarchy levels for any period presented. The following tables set forth by level within the fair value hierarchy the Company's financial assets and liabilities that were accounted for at fair value as of September 30, 2017 (Successor) and December 31, 2016 (Successor) (in thousands): Successor September 30, 2017 Level 1 Level 2 Level 3 Total Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2016 Level 1 Level 2 Level 3 Total Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative contracts listed above as Level 2 include collars and basis swaps that are carried at fair value. The Company records the net change in the fair value of these positions in "Net gain (loss) on derivative contracts" on the unaudited condensed consolidated statements of operations. The Company is able to value the assets and liabilities based on observable market data for similar instruments, which resulted in the Company reporting its derivatives as Level 2. This observable data includes the forward curves for commodity prices based on quoted market prices and implied volatility factors related to changes in the forward curves. See Note 8, "Derivative and Hedging Activities," for additional discussion of derivatives. The Company's derivative contracts are with major financial institutions with investment grade credit ratings which are believed to have minimal credit risk. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties in the derivative contracts; however, the Company does not anticipate such nonperformance. The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of ASC 825, Financial Instruments . The estimated fair value amounts have been determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, accounts receivables and accounts payables approximate their carrying value due to their short-term nature. The estimated fair value of the Company's Senior Credit Agreement approximates carrying value because the interest rates approximate current market rates. The following table presents the estimated fair values of the Company's fixed interest rate debt instruments as of September 30, 2017 (Successor) and December 31, 2016 (Successor) (excluding discounts and debt issuance costs and including the current portion) (in thousands): Successor September 30, December 31, Debt Principal Estimated Principal Estimated 8.625% senior secured second lien notes $ — $ — $ $ 12.0% senior secured second lien notes — — 6.75% senior notes — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fair value of the Company's fixed interest rate debt instruments was calculated using Level 2 criteria. The fair value of the Company's senior notes is based on quoted market prices from trades of such debt. On February 28, 2017 (Successor), the Company closed the Pecos County Acquisition and recorded the assets acquired and liabilities assumed at their acquisition date fair values. See Note 4, "Acquisitions and Divestitures ," for a discussion of the fair value approaches used by the Company and the classification of the estimates within the fair value hierarchy. On September 9, 2016, the Company emerged from chapter 11 bankruptcy and adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. Upon the adoption of fresh-start accounting, the Company's assets and liabilities were recorded at their fair values as of the fresh-start reporting date, September 9, 2016. See Note 3, "Fresh-start Accounting," for a detailed discussion of the fair value approaches used by the Company. For the period from January 1, 2016 through September 9, 2016 (Predecessor), the Company recorded a non-cash impairment charge of $28.1 million related to its gas gathering infrastructure. See Note 1, "Financial Statement Presentation," for a discussion of the valuation approach used and the classification of the estimate within the fair value hierarchy. The Company follows the provisions of ASC 820 for nonfinancial assets and liabilities measured at fair value on a non-recurring basis. These provisions apply to the Company's initial recognition of asset retirement obligations for which fair value is used. The asset retirement obligation estimates are derived from historical costs and management's expectation of future cost environments; consequently, the Company has designated these liabilities as Level 3. See Note 9, " Asset Retirement Obligations ," for a reconciliation of the beginning and ending balances of the liability for the Company's asset retirement obligations. |
DERIVATIVE AND HEDGING ACTIVITI
DERIVATIVE AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2017 | |
DERIVATIVE AND HEDGING ACTIVITIES | |
DERIVATIVE AND HEDGING ACTIVITIES | 8. DERIVATIVE AND HEDGING ACTIVITIES The Company is exposed to certain risks relating to its ongoing business operations, including commodity price risk and interest rate risk. Derivative contracts are utilized to hedge the Company's exposure to price fluctuations and reduce the variability in the Company's cash flows associated with anticipated sales of future oil and natural gas production. When derivative contracts are available at terms (or prices) acceptable to the Company, it generally hedges a substantial, but varying, portion of anticipated oil and natural gas production for future periods. Derivatives are carried at fair value on the unaudited condensed consolidated balance sheets as assets or liabilities, with the changes in the fair value included in the unaudited condensed consolidated statements of operations for the period in which the change occurs. The Company's hedge policies and objectives may change significantly as its operational profile changes and/or commodities prices change. The Company does not enter into derivative contracts for speculative trading purposes. It is the Company's policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions determined by management as competent and competitive market makers. The Company did not post collateral under any of its derivative contracts as they are secured under the Company's Senior Credit Agreement or are uncollateralized trades. At September 30, 2017 (Successor), the Company's crude oil and natural gas derivative positions consisted of basis swaps and costless put/call "collars." At December 31, 2016 (Successor), the Company's derivative positions consisted of collars only. Basis swaps effectively lock in a price differential between regional prices (i.e. Midland) and the relevant price index at which the oil production is sold (i.e. Cushing). A costless collar consists of a sold call, which establishes a maximum price the Company will receive for the volumes under contract and a purchased put that establishes a minimum price. The Company has elected not to designate any of its derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of these derivative contracts, as well as payments and receipts on settled derivative contracts, in "Net gain (loss) on derivative contracts" on the unaudited condensed consolidated statements of operations. At September 30, 2017 (Successor), the Company had 32 open commodity derivative contracts summarized in the following tables: four natural gas collar arrangements, 11 crude oil basis swaps and 17 crude oil collar arrangements. At December 31, 2016 (Successor), the Company had 22 open commodity derivative contracts summarized in the following tables: two natural gas collar arrangements and 20 crude oil collar arrangements. All derivative contracts are recorded at fair market value in accordance with ASC 815 and ASC 820 and included in the unaudited condensed consolidated balance sheets as assets or liabilities. The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets (in thousands): Asset derivative contracts Liability derivative contracts Successor Successor Derivatives not Balance sheet September 30, December 31, Balance sheet September 30, December 31, Commodity contracts Current assets—receivables from derivative contracts $ $ Current liabilities—liabilities from derivative contracts $ ) $ ) Commodity contracts Other noncurrent assets—receivables from derivative contracts — Other noncurrent liabilities—liabilities from derivative contracts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging contracts under ASC 815 $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts in the Company's unaudited condensed consolidated statements of operations (in thousands): Amount of gain or (loss) recognized in Successor Predecessor Period from Period from Three Location of gain or (loss) recognized in Derivatives not designated as hedging Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts $ ) $ ) $ ) Realized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net gain (loss) on derivative contracts $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of gain or (loss) recognized in Successor Predecessor Period from Period from Nine Months Location of gain or (loss) recognized in Derivatives not designated as hedging Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts $ $ ) $ ) Realized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net gain (loss) on derivative contracts $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2017 (Successor) and December 31, 2016 (Successor), the Company had the following open crude oil and natural gas derivative contracts: Successor September 30, 2017 Floors Ceilings Basis Differential Period Instrument Commodity Volume in Price / Weighted Price / Weighted Price / Weighted October 2017 - December 2017 Collars Natural Gas $ $ $ $ $ — $ — October 2017 - December 2017 Collars Crude Oil 51.07 - 60.00 56.07 - 75.00 November 2017 - December 2017 Collars Crude Oil January 2018 - December 2018 Basis Swap Crude Oil (1.05) - (1.50) ) January 2018 - December 2018 Collars Crude Oil 45.00 - 53.00 50.00 - 60.00 January 2018 - December 2018 Collars Natural Gas 3.00 - 3.03 3.22 - 3.38 April 2018 - December 2018 Basis Swap Crude Oil ) April 2018 - December 2018 Collars Crude Oil July 2018 - December 2018 Basis Swap Crude Oil (0.98) - (1.18) ) July 2018 - December 2018 Collars Crude Oil January 2019 - March 2019 Collars Crude Oil January 2019 - December 2019 Basis Swap Crude Oil (0.98) - (1.33) ) Successor December 31, 2016 Floors Ceilings Period Instrument Commodity Volume in Price / Weighted Price / Weighted January 2017 - December 2017 Collars Natural Gas $ 3.15 - $3.26 $ $ 3.50 - $3.76 $ January 2017 - December 2017 Collars Crude Oil 47.00 - 60.00 52.00 - 76.84 January 2018 - December 2018 Collars Crude Oil The Company presents the fair value of its derivative contracts at the gross amounts in the unaudited condensed consolidated balance sheets. The following table shows the potential effects of master netting arrangements on the fair value of the Company's derivative contracts (in thousands): Derivative Assets Derivative Liabilities Successor Successor Offsetting of Derivative Assets and Liabilities September 30, December 31, September 30, December 31, Gross Amounts Presented in the Consolidated Balance Sheet $ $ $ ) $ ) Amounts Not Offset in the Consolidated Balance Sheet ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Amount $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company enters into an International Swap Dealers Association Master Agreement (ISDA) with each counterparty prior to a derivative contract with such counterparty. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2017 | |
ASSET RETIREMENT OBLIGATIONS | |
ASSET RETIREMENT OBLIGATIONS | 9. ASSET RETIREMENT OBLIGATIONS The Company records an asset retirement obligation (ARO) on oil and natural gas properties when it can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. For other operating property and equipment, the Company records an ARO when the system is placed in service and it can reasonably estimate the fair value of an obligation to perform site reclamation and other necessary work when it is required. The Company records the ARO liability on the unaudited condensed consolidated balance sheets and capitalizes a portion of the cost in " Oil and natural gas properties " or " Other operating property and equipment " during the period in which the obligation is incurred. The Company records the accretion of its ARO liabilities in " Depletion, depreciation and accretion " expense in the unaudited condensed consolidated statements of operations. The additional capitalized costs are depreciated on a unit-of-production basis or straight-line basis. The Company recorded the following activity related to its ARO liability (in thousands, inclusive of the current portion): Liability for asset retirement obligations as of December 31, 2016 (Sucessor) $ Liabilities settled and divested (1) ) Additions Acquisitions (1) Accretion expense Revisions in estimated cash flows ​ ​ ​ ​ ​ Liability for asset retirement obligations as of September 30, 2017 (Successor) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) See Note 4, "Acquisitions and Divestitures," for further information. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Commitments The Company leases corporate office space in Houston, Texas; and Denver, Colorado as well as other field office locations. Rent expense was approximately $3.0 million for the nine months ended September 30, 2017 (Successor). Rent expense was approximately $0.4 million for the period of September 10, 2016 through September 30, 2016 (Successor) and $5.9 million for the period of January 1, 2016 through September 9, 2016 (Predecessor). Future obligations associated with the Company's operating leases are presented in the table below (in thousands): Remaining period in 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2017 (Successor), the Company has the following active drilling rig commitments (in thousands): Remaining period in 2017 $ 2018 2019 — 2020 — 2021 — Thereafter — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2017 (Successor), termination of the Company's active drilling rig commitments would require early termination penalties of $1.7 million, which would be in lieu of paying the remaining active commitments of $4.4 million. In past years, with the sustained decline in crude oil prices, the Company stacked certain drilling rigs and amended other previous drilling rig contracts. In the future, the Company expects to incur stacking charges/early termination fees on certain drilling rig commitments as follows (in thousands): Remaining period in 2017 $ 2018 2019 — 2020 2021 — Thereafter — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stacking fees and early termination fees are expensed as incurred within " Gathering and other " on the unaudited condensed consolidated statements of operations. In December 2016 (Successor), the Company entered into an agreement with a private company for the right to purchase up to 15,040 net acres in the Monument Draw area of the Delaware Basin, located in Ward and Winkler Counties, Texas (the Ward County Assets) prospective for the Wolfcamp and Bone Spring formations for an initial purchase price of $11,000 per acre. The Ward County Assets are divided into two tracts: the Southern Tract, comprising 6,720 net acres, and the Northern Tract, comprising 8,320 net acres, with separate options for each tract. The agreement was subsequently amended on June 14, 2017 (Successor) to increase the purchase price of the Southern and Northern Tract acreage, from $11,000 per acre to $13,000 per acre, for rights to additional depths in the acreage under option. Pursuant to the terms of the agreement, the Company initially paid $5.0 million and drilled a commitment well on the Southern Tract and on June 15, 2017 (Successor) purchased the Southern Tract acreage for approximately $13,000 per acre. On June 15, 2017 (Successor), the Company also paid $5.0 million and recently drilled a commitment well on the Northern Tract, to earn the option to acquire the Northern Tract acreage for $13,000 per acre by December 31, 2017. This option purchase agreement is not included in the tables above. The Company has entered into various long-term gathering, transportation and sales contracts with respect to production from the Delaware Basin in West Texas. As of September 30, 2017 (Successor), the Company had in place two long-term crude oil contracts and four long-term natural gas contracts in this area. Under the terms of these contracts, the Company has committed a substantial portion of its production from this area for periods ranging from one to eight years from the date of first production. The sales prices under these contracts are based on posted market rates. Contingencies From time to time, the Company may be a plaintiff or defendant in a pending or threatened legal proceeding arising in the normal course of its business. While the outcome and impact of currently pending legal proceedings cannot be determined, the Company's management and legal counsel believe that the resolution of these proceedings through settlement or adverse judgment will not have a material effect on the Company's unaudited condensed consolidated operating results, financial position or cash flows. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 11. STOCKHOLDERS' EQUITY Preferred Stock and Non-Cash Preferred Stock Dividend On January 24, 2017 (Successor) (the Commitment Date), the Company entered into a stock purchase agreement with certain accredited investors to sell, in a private placement exempt from registration requirements of the Securities Act pursuant to Section 4(a)(2), approximately 5,518 shares of 8% Automatically Convertible Preferred Stock, par value $0.0001 per share (the Preferred Stock), each share of which was convertible into 10,000 shares of common stock. Also on January 24, 2017, the Company received an executed written consent in lieu of a stockholders' meeting authorizing and approving the conversion of the Preferred Stock into common stock. On February 27, 2017, the Company filed with the Delaware Secretary of State a Certificate of Designation, Preferences, Rights and Limitations of the Preferred Stock (the Certificate of Designation), which created the series of preferred stock issued by the Company on that same date. The Company issued the Preferred Stock at $72,500 per share. Gross proceeds were approximately $400.1 million, or $7.25 per share of common stock. The Company incurred approximately $11.9 million in expenses associated with this offering, including placement agent fees. On March 16, 2017, the Company mailed a definitive information statement to its common stockholders notifying them that a majority of its stockholders had consented to the issuance of common stock, par value $0.0001 per share, upon the conversion of the Preferred Stock. The Preferred Stock automatically converted into 55.2 million shares of common stock on April 6, 2017 in accordance with the terms of the Certificate of Designation. No cash dividends were paid on the Preferred Stock since, pursuant to the terms of the Certificate of Designation of the Preferred Stock, conversion occurred prior to June 1, 2017. The Company agreed to file a registration statement to register the resale of shares of common stock issuable upon conversion of the Preferred Stock and to pay penalties in the event such registration was not effective by June 27, 2017. The Company filed such registration statement on March 3, 2017 and it was declared effective by the SEC on April 7, 2017. In accordance with ASC Topic 470, Debt (ASC 470), the Company determined that the conversion feature in the Preferred Stock represented a beneficial conversion feature. The fair value of the Company's common stock of $8.12 per share on the Commitment Date was greater than the conversion price of $7.25 per share of common stock, representing a beneficial conversion feature of $0.87 per share of common stock, or approximately $48.0 million in aggregate. Under ASC 470, $48.0 million (the intrinsic value of the beneficial conversion feature) of the proceeds received from the issuance of the Preferred Stock was allocated to "Additional paid-in capital," creating a discount on the Preferred Stock (the Discount). The Discount is required to be amortized on a non-cash basis over the approximate 65-month period between the issuance date and the required redemption date of July 28, 2022, or fully amortized upon an accelerated date of redemption or conversion, and recorded as a preferred dividend. As a result, approximately $0.8 million of the Discount was amortized and a non-cash preferred dividend was recorded in the three months ended March 31, 2017 (Successor) and due to the conversion date occurring on April 6, 2017, the remaining $47.2 million of the amortization of the Discount was accelerated to the conversion date and fully amortized in the three months ended June 30, 2017 (Successor). The Discount amortization is reflected in "Non-cash preferred dividend" in the unaudited condensed consolidated statements of operations. The preferred dividend was charged against additional paid-in capital since no retained earnings were available. Common Stock On September 9, 2016, upon emergence from chapter 11 bankruptcy, all existing shares of Predecessor common stock were cancelled and the Successor Company issued approximately 90.0 million shares of common stock in total to the Predecessor Company's existing common stockholders, Third Lien Noteholders, Unsecured Noteholders, and the Convertible Noteholder. Refer to Note 2, " Reorganization " for further details. On September 9, 2016, upon emergence from chapter 11 bankruptcy, the Successor Company filed an amended and restated certificate of incorporation with the Delaware Secretary of State to provide for (i) the total number of shares of all classes of capital stock that the Successor Company has the authority to issue is 1,001,000,000 of which 1,000,000,000 shares are common stock, par value $0.0001 per share and 1,000,000 shares are preferred stock, par value $0.0001 per share, (ii) a classified board structure, (iii) the right of removal of directors with or without cause by stockholders, and (iv) a restriction on the Successor Company from issuing any non-voting equity securities in violation of Section 1123(a)(6) of chapter 11 of title 11 of the United States Code. Additionally, the Company's 5.75% Series A Convertible Perpetual Preferred Stock (the Series A Preferred), was cancelled pursuant to the Plan, and no shares of Series A Preferred are outstanding. Warrants On September 9, 2016, upon the emergence from chapter 11 bankruptcy, all existing February 2012 warrants were cancelled and the Successor Company issued 3.8 million new warrants to the Unsecured Noteholders and 0.9 million new warrants to the Convertible Noteholder. The warrants in aggregate can be exercised to purchase 4.7 million shares of the Successor Company's common stock at an exercise price of $14.04 per share. The Company allocated approximately $16.7 million of the Enterprise Value to the warrants which is reflected in " Additional paid-in capital " on the unaudited condensed consolidated balance sheets. The holders are entitled to exercise the warrants in whole or in part at any time prior to expiration on September 9, 2020. See Note 2, " Reorganization " for further details. Incentive Plans Immediately prior to emergence from chapter 11 bankruptcy, the Predecessor incentive plan was cancelled and all share-based compensation awards granted thereunder were either vested or cancelled and the Predecessor Company's Board adopted the 2016 Long-Term Incentive Plan (the 2016 Incentive Plan). An aggregate of 10.0 million shares of the Successor Company's common stock were available for grant pursuant to awards under the 2016 Incentive Plan in the form of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance units, performance bonuses, stock awards and other incentive awards. On April 6, 2017 (Successor), an amendment to the 2016 Incentive Plan to increase by 9.0 million shares the maximum number of shares of common stock that may be issued thereunder, i.e., a maximum of 19.0 million shares, became effective, which was 20 calendar days following the date the Company mailed an information statement to all stockholders of record notifying them of approval of the amendment by written consent. As of September 30, 2017 (Successor) and December 31, 2016 (Successor), a maximum of 7.3 million and 1.7 million shares of common stock, respectively, remained reserved for issuance under the 2016 Incentive Plan. The Company accounts for share-based payment accruals under authoritative guidance on stock compensation. The guidance requires all share-based payments to employees and directors, including grants of stock options and restricted stock, to be recognized in the financial statements based on their fair values. For awards granted under the 2016 Incentive Plan subsequent to emerging from chapter 11 bankruptcy and in conjunction with the early adoption of ASU 2016-09, the Company has elected to not apply a forfeiture estimate and will recognize a credit in compensation expense to the extent awards are forfeited. For the three and nine months ended September 30, 2017 (Successor) the Company recognized $12.3 million and $33.5 million, respectively, of share-based compensation expense. For the period from September 10, 2016 through September 30, 2016 (Successor), the period from July 1, 2016 through September 9, 2016 (Predecessor) and the period from January 1, 2016 through September 9, 2016 (Predecessor) the Company recognized $13.2 million, $1.2 million, and $4.9 million, respectively, of share-based compensation expense. These were recorded as a component of " General and administrative " on the unaudited condensed consolidated statements of operations. Stock Options From time to time, the Company grants stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant and expire ten years from the grant date. During the nine months ended September 30, 2017 (Successor), the Company granted stock options under the 2016 Incentive Plan covering 1.8 million shares of common stock to employees of the Company. These stock options have exercise prices ranging from $6.55 to $7.75 per share with a weighted average exercise price of $7.72 per share. At September 30, 2017 (Successor), the Company had $17.3 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.5 years. During the period from September 10, 2016 through September 30, 2016 (Successor), the Company granted stock options under the 2016 Incentive Plan covering 5.0 million shares of common stock to employees of the Company. These stock options have an exercise price of $9.24 per share with a weighted average exercise price of $9.24 per share. At September 30, 2016 (Successor), the Company had $29.8 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.9 years. Immediately prior to emergence from chapter 11 bankruptcy, all outstanding stock options under the Predecessor Incentive Plan were cancelled. Refer to Note 2, "Reorganization," for further details. Restricted Stock From time to time, the Company grants shares of restricted stock to employees and non-employee directors of the Company. Employee shares typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant, and the non-employee directors' shares vest six months from the date of grant. Certain shares granted under the 2016 Incentive Plan specifically related to the Company's emergence from chapter 11 bankruptcy vested on or before September 30, 2017. During the nine months ended September 30, 2017 (Successor), the Company granted 2.0 million shares of restricted stock under the 2016 Incentive Plan to employees and non-employee directors of the Company. These restricted shares were granted at prices ranging from $6.08 to $7.75 per share with a weighted average price of $7.07 per share. At September 30, 2017 (Successor), the Company had $5.7 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.3 years. During the period from September 10, 2016 through September 30, 2016 (Successor), the Company granted 2.6 million shares of restricted stock under the 2016 Incentive Plan to employees and non-employee directors of the Company. These restricted shares were granted at prices ranging from $7.82 to $9.24 per share with a weighted average price of $9.17 per share. At September 30, 2016 (Successor), the Company had $12.0 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 0.9 years. Immediately prior to emergence from chapter 11 bankruptcy, all restricted stock awards granted under the Predecessor Incentive Plan were vested. Refer to Note 2, "Reorganization," for further details. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | 12. EARNINGS PER COMMON SHARE On September 9, 2016, upon emergence from chapter 11 bankruptcy, the Company's Predecessor equity was cancelled and new equity was issued. Refer to Note 2, "Reorganization," for further details. The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): Successor Predecessor Period from Period from Three Months Basic: Net income (loss) available to common stockholders $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per share of common stock $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: Net income (loss) available to common stockholders $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest on Convertible Note, net — — Series A preferred dividends — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders after assumed conversions $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding Common stock equivalent shares representing shares issuable upon: Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Exercise of February 2012 Warrants — — Anti-dilutive Exercise of warrants Anti-dilutive Anti-dilutive — Vesting of restricted shares Anti-dilutive Anti-dilutive Vesting of performance units — — — Conversion of preferred stock — — — Conversion of Convertible Note — — Conversion of Series A Preferred Stock — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share of common stock $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Successor Predecessor Period from Period from Nine Months Basic: Net income (loss) available to common stockholders $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per share of common stock $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: Net income (loss) available to common stockholders $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding Common stock equivalent shares representing shares issuable upon: Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Exercise of February 2012 Warrants — — Anti-dilutive Exercise of warrants Anti-dilutive Anti-dilutive — Vesting of restricted shares Anti-dilutive Anti-dilutive Vesting of performance units — — — Conversion of preferred stock Anti-dilutive — Conversion of Convertible Note — — Anti-dilutive Conversion of Series A Preferred Stock — — Anti-dilutive ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share of common stock $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock equivalents, including stock options, restricted shares, warrants, and preferred stock totaling 11.7 million and 19.0 million shares for the three and nine months ended September 30, 2017 (Successor), respectively, were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive. Common stock equivalents, including stock options, warrants, restricted shares, convertible debt and preferred stock totaling 11.1 million, 11.9 million and 43.6 million shares for the period from September 10, 2016 through September 30, 2016 (Successor), the period from July 1, 2016 through September 9, 2016 (Predecessor), and the period from January 1, 2016 through September 9, 2016 (Predecessor), respectively, were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive. |
ADDITIONAL FINANCIAL STATEMENT
ADDITIONAL FINANCIAL STATEMENT INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | 13. ADDITIONAL FINANCIAL STATEMENT INFORMATION Certain balance sheet amounts are comprised of the following (in thousands): Successor September 30, 2017 December 31, 2016 Accounts receivable: Oil, natural gas and natural gas liquids revenues $ $ Joint interest accounts Accrued settlements on derivative contracts Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prepaids and other: Prepaids $ $ Income tax receivable — Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funds in escrow and other: Funds in escrow $ $ Debt issuance costs — Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities: Trade payables $ $ Accrued oil and natural gas capital costs Revenues and royalties payable Accrued interest expense Accrued employee compensation Accrued lease operating expenses Drilling advances from partners Income tax payable — Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS Divestiture of Williston Basin Non-Operated Assets On September 19, 2017 (Successor), certain wholly owned subsidiaries of the Company entered into an Agreement of Sale and Purchase with a privately-owned company pursuant to which the Company agreed to sell its non-operated properties and related assets located in the Williston Basin in North Dakota and Montana (the Non-Operated Williston Assets) for a total adjusted purchase price of approximately $105.2 million, subject to post-closing adjustments. The effective date of the transaction is April 1, 2017 and the transaction closed on November 9, 2017. The purchase price is subject to post-closing adjustments for (i) operating expenses, capital expenditures and revenues between the effective date and the closing date, (ii) title and environmental defects, and (iii) other purchase price adjustments customary in oil and gas purchase and sale agreements. Upon the closing of the sale of the Non-Operated Williston Assets, the borrowing base on the Company's Senior Credit Agreement was reduced from $140.0 million to $100.0 million. |
FINANCIAL STATEMENT PRESENTAT21
FINANCIAL STATEMENT PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
FINANCIAL STATEMENT PRESENTATION | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Halcón Resources Corporation (Halcón or the Company) is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The unaudited condensed consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries. The Company operates in one segment which focuses on oil and natural gas acquisition, production, exploration and development. The Company's oil and natural gas properties are managed as a whole rather than through discrete operating areas. Operational information is tracked by operating area; however, financial performance is assessed as a whole. Allocation of capital is made across the Company's entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company's management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. During interim periods, Halcón follows the accounting policies disclosed in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on March 1, 2017. Please refer to the notes in the 2016 Annual Report on Form 10-K when reviewing interim financial results, though, as described below, such prior financial statements may not be comparable to the interim financial statements due to the adoption of fresh-start accounting on September 9, 2016. |
Emergence from Voluntary Reorganization under Chapter 11 | Emergence from Voluntary Reorganization under Chapter 11 On July 27, 2016 (the Petition Date), the Company and certain of its subsidiaries (the Halcón Entities) filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court in the District of Delaware (the Bankruptcy Court) to pursue a joint prepackaged plan of reorganization (the Plan). On September 8, 2016, the Bankruptcy Court entered an order confirming the Plan and on September 9, 2016, the Plan became effective (the Effective Date) and the Halcón Entities emerged from chapter 11 bankruptcy. The Company's subsidiary, HK TMS, LLC which was divested on September 30, 2016, was not part of the chapter 11 bankruptcy filings. See Note 2, "Reorganization," for further details on the Company's chapter 11 bankruptcy and the Plan and Note 4, "Acquisitions and Divestitures," for further details on the divestiture of HK TMS, LLC. Upon emergence from chapter 11 bankruptcy, the Company adopted fresh-start accounting in accordance with provisions of the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) 852, "Reorganizations" (ASC 852) which resulted in the Company becoming a new entity for financial reporting purposes on the Effective Date. Upon the adoption of fresh-start accounting, the Company's assets and liabilities were recorded at their fair values as of the fresh-start reporting date. As a result of the adoption of fresh-start accounting, the Company's unaudited condensed consolidated financial statements subsequent to September 9, 2016 are not comparable to its unaudited condensed consolidated financial statements prior to, and including, September 9, 2016. See Note 3, "Fresh-start Accounting," for further details on the impact of fresh-start accounting on the Company's unaudited condensed consolidated financial statements. References to "Successor" or "Successor Company" relate to the financial position and results of operations of the reorganized Company subsequent to September 9, 2016. References to "Predecessor" or "Predecessor Company" relate to the financial position and results of operations of the Company prior to, and including, September 9, 2016. |
Use of Estimates | Use of Estimates The preparation of the Company's unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue accruals, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, fair value estimates, including estimates of Reorganization Value, Enterprise Value and the fair value of assets and liabilities recorded as a result of the adoption of fresh-start accounting, plus the estimated fair values of assets acquired and liabilities assumed in connection with the Pecos County Acquisition and the fair value of assets sold in connection with the Williston Divestiture and the El Halcón Divestiture (see Note 4, "Acquisitions and Divestitures," for information on the Pecos County Acquisition, the Williston Divestiture and the El Halcón Divestiture), including the gains on sales recorded, and income taxes. The Company bases its estimates and judgments on historical experience and on various other assumptions and information believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company's operating environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company's unaudited condensed consolidated financial statements. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and, accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States has been condensed or omitted. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company's accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. The Company establishes provisions for losses on accounts receivable if it determines that collection of all or part of the outstanding balance is doubtful. The Company regularly reviews collectability and establishes or adjusts the allowance for doubtful accounts as necessary using the specific identification method. There were no significant allowances for doubtful accounts as of September 30, 2017 (Successor) or December 31, 2016 (Successor). |
Other Operating Property and Equipment | Other Operating Property and Equipment Other operating property and equipment were recorded at fair value as a result of fresh-start accounting on September 9, 2016 and additions since that date are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: gas gathering systems, thirty years; water disposal and recycling facilities, twenty years; compressed natural gas facility, ten years; automobiles and computers, three years; computer software, fixtures, furniture and equipment, five years or the lesser of the lease term; trailers, seven years; heavy equipment, eight to ten years; buildings, twenty years and leasehold improvements, lease term. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures which increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. Refer to Note 4, "Acquisitions and Divestitures," for a discussion of other operating property and equipment acquired and divested during the period. The Company reviews its other operating property and equipment for impairment in accordance with ASC 360, Property, Plant, and Equipment (ASC 360). ASC 360 requires the Company to evaluate other operating property and equipment for impairment as events occur or circumstances change that would more likely than not reduce the fair value below the carrying amount. If the carrying amount is not recoverable from its undiscounted cash flows, then the Company would recognize an impairment loss for the difference between the carrying amount and the current fair value. Further, the Company evaluates the remaining useful lives of its other operating property and equipment at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods. For the period from January 1, 2016 through September 9, 2016 (Predecessor), the Company recorded a non-cash impairment charge of $28.1 million in "Other operating property and equipment impairment" in the Company's unaudited condensed consolidated statements of operations and in "Other operating property and equipment" in the Company's unaudited condensed consolidated balance sheets related to $32.8 million gross investments in gas gathering infrastructure that were deemed non-economical due to a shift in exploration, drilling and developmental plans in a low commodity price environment. In accordance with ASC 820, Fair Value Measurements and Disclosures (ASC 820), a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The estimate of the fair value of the Company's gas gathering infrastructure was based on an income approach that estimated future cash flows associated with those assets over the remaining asset lives. This estimation includes the use of unobservable inputs, such as estimated future production, gathering and compression revenues and operating expenses. The use of these unobservable inputs results in the fair value estimate of the Company's gas gathering infrastructure being classified as Level 3. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). For public business entities, ASU 2017-01 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2017. The amendments in this ASU should be applied prospectively on or after the effective date. The ASU was issued to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The Company is in the process of assessing the effects of the application of the new guidance. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) (ASU 2016-15). For public business entities, ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. The areas for simplification in this ASU involve addressing eight specific classification issues in the statement of cash flows. An entity should apply the amendments in this ASU using a retrospective transition method. The Company is in the process of assessing the effects of the application of the new guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). For public business entities, ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and early adoption is permitted. The FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. An entity should apply the amendments in this ASU on a modified retrospective basis. The transition will require application of the new guidance at the beginning of the earliest comparative period presented in the financial statements. The Company is in the early stages of assessing the effects of the application of the new guidance and the financial statement and disclosure impacts. The Company will adopt ASU 2016-02 no later than January 1, 2019. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides five steps an entity should apply in determining its revenue recognition. In March 2016, ASU 2014-09 was updated with ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), which provides further clarification on the principal versus agent evaluation. ASU 2014-09 is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet and is effective for annual reporting periods, and interim periods within that reporting period, beginning after December 15, 2017. Early adoption is not permitted. The Company is in the process of assessing its contracts with customers and evaluating the effects of the new guidance on its financial statements and disclosures. This process includes evaluating certain components of its natural gas gathering and processing agreements to determine whether changes to revenues and expenses will be appropriate when complying with the new guidance. The adoption is not expected to have a significant impact on the Company's net income or cash flows from operations. The Company will adopt ASU 2014-09 effective January 1, 2018. |
FRESH-START ACCOUNTING (Tables)
FRESH-START ACCOUNTING (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
FRESH-START ACCOUNTING | |
Schedule of Enterprise value to estimated fair value of the Successor's common stock | The following table reconciles the Company's Enterprise Value to the estimated fair value of the Successor's common stock as of September 9, 2016 (in thousands): September 9, Enterprise Value $ Plus: Cash Less: Fair value of debt ) Less: Fair value of redeemable noncontrolling interest ) Less: Fair value of other long-term liabilities ) Less: Fair value of warrants ) ​ ​ ​ ​ ​ Fair Value of Successor common stock $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Enterprise Value to its Reorganization Value | The following table reconciles the Company's Enterprise Value to its Reorganization Value as of September 9, 2016 (in thousands): September 9, Enterprise Value $ Plus: Cash Plus: Current liabilities Plus: Noncurrent asset retirement obligation ​ ​ ​ ​ ​ Reorganization Value of Successor assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reorganization balance sheet and fresh-start accounting adjustments | Amounts included in the table below are rounded to thousands. As of September 9, 2016 Predecessor Reorganization Fresh-Start Successor Current assets: Cash $ $ ) (1) $ — $ Accounts receivable — — Receivables from derivative contracts — — Restricted cash — — Prepaids and other — ) (7) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and natural gas properties (full cost method): Evaluated — ) (8) Unevaluated — ) (8) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross oil and natural gas properties — ) Less—accumulated depletion ) — (8) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net oil and natural gas properties — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating property and equipment: Other operating property and equipment — ) (9) Less—accumulated depreciation ) — (9) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other operating property and equipment — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other noncurrent assets: Receivables from derivative contracts — — Funds in escrow and other — (10) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Accounts payable and accrued liabilities $ $ (2) $ — $ Liabilities from derivative contracts — — Other — (11)(12) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt, net — ) (13) Liabilities subject to compromise ) (3) — — Other noncurrent liabilities: Liabilities from derivative contracts — — Asset retirement obligations — ) (12) Other — (11)(14) Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest — ) (14) Stockholders' equity: Preferred stock (Predecessor) — — (4) — — Common Stock (Predecessor) ) (4) — — Common Stock (Successor) — (5) — Additional paid-in capital (Predecessor) ) (4) — — Additional paid-in capital (Successor) — (5) — Retained earnings (accumulated deficit) ) (6) ) (15) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reorganization adjustments (1) The table below details cash payments as of September 9, 2016, pursuant to the terms of the Plan described in Note 2, " Reorganization, " (in thousands): Payment to Third Lien Noteholders $ Payment to Unsecured Noteholders Payment to Convertible Noteholder Payment to Preferred Holders ​ ​ ​ ​ ​ Total Uses $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (2) In connection with the chapter 11 bankruptcy, the Company modified and rejected certain office lease arrangements and paid approximately $3.4 million for these modifications and rejections subsequent to the emergence from chapter 11 bankruptcy. This amount also reflects $10.3 million paid to the Company's restructuring advisors subsequent to the emergence from chapter 11 bankruptcy. (3) Liabilities subject to compromise were as follows (in thousands): 13.0% senior secured third lien notes due 2022 $ 9.25% senior notes due 2022 8.875% senior notes due 2021 9.75% senior notes due 2020 8.0% convertible note due 2020 Accrued interest Office lease modification and rejection fees ​ ​ ​ ​ ​ Liabilities subject to compromise Fair value of equity and warrants issued to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder ) Cash payments to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder ) Office lease modification and rejection fees ) ​ ​ ​ ​ ​ Gain on settlement of Liabilities subject to compromise $ ​ ​ ​ ​ ​ ​ ​ ​ ​ (4) Reflects the cancellation of Predecessor equity, as follows (in thousands): Predecessor Company stock $ Fair value of equity issued to Predecessor common stockholders ) Cash payment to Preferred Holders ) ​ ​ ​ ​ ​ Cancellation of Predecessor Company equity $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Reflects the issuance of Successor equity. In accordance with the Plan, the Successor Company issued 3.6 million shares of common stock to the Predecessor Company's existing common stockholders, 68.8 million shares of common stock to the Third Lien Noteholders, 14.0 million shares of common stock to the Unsecured Noteholders, and 3.6 million shares of common stock to the Convertible Noteholder. This amount is subject to dilution by warrants issued to the Unsecured Noteholders and the Convertible Noteholder totaling 4.7 million shares with an exercise price of $14.04 per share and a term of four years. The fair value of the warrants was estimated at $3.52 per share using a Black-Scholes-Merton valuation model. (6) The table below reflects the cumulative effect of the reorganization adjustments discussed above (in thousands): Gain on settlement of Liabilities subject to compromise $ Accrued reorganization items ) Cancellation of Predecessor Company equity ​ ​ ​ ​ ​ Net impact to retained earnings (accumulated deficit) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fresh-start accounting adjustments (7) Reflects the reclassification of tubulars and well equipment to " Oil and natural gas properties ." (8) In estimating the fair value of its oil and natural gas properties, the Company used a combination of the income and market approaches. For purposes of estimating the fair value of the Company's proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Company's reserves, risked by reserve category and discounted using a weighted average cost of capital rate of 10.5% for proved reserves and 12.5% for probable and possible reserves. The proved reserve locations were limited to wells expected to be drilled in the Company's five year development plan. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $72.30 per barrel of oil, $3.50 per MMBtu of natural gas and $12.00 per barrel of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and analysts' estimated prices. In estimating the fair value of the Company's unproved acreage that was not included in the valuation of probable and possible reserves, a market approach was used in which a review of recent transactions involving properties in the same geographical location indicated the fair value of the Company's unproved acreage from a market participant perspective. (9) In estimating the fair value of its other operating property and equipment, the Company used a combination of the income, cost, and market approaches. For purposes of estimating the fair value of its other operating property and equipment, an income approach was used that estimated future cash flows associated with the assets over the remaining useful lives. The valuation included such inputs as estimated future production, gathering and compression revenues, and operating expenses that were discounted at a weighted average cost of capital rate of 9.5%. For purposes of estimating the fair value of its other operating assets, the Company used a combination of the market and cost approaches. A market approach was relied upon to value land and computer equipment, and in this valuation approach, recent transactions of similar assets were utilized to determine the value from a market participant perspective. For the remaining other operating assets, a cost approach was used. The estimation of fair value under the cost approach was based on current replacement costs of the assets, less depreciation based on the estimated economic useful lives of the assets and age of the assets. (10) Reflects the adjustment of the Company's equity method investment in SBE Partners, L.P. to fair value based on an income approach, which calculated the discounted cash flows of the Company's share of the partnership's interest in oil and gas proved reserves. The anticipated cash flows of the reserves were risked by reserve category and discounted at 10.5%. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $72.30 per barrel of oil, $3.50 per MMBtu of natural gas and $12.00 per barrel of oil equivalent of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and analysts' estimated prices. (11) Records an intangible liability of approximately $8.3 million, $4.5 million of which was recorded as current, to adjust the Company's active rig contract to fair value at September 9, 2016. The intangible liability will be amortized over the remaining life of the contract. (12) Reflects the adjustment of asset retirement obligations to fair value using estimated plugging and abandonment costs as of September 9, 2016, adjusted for inflation and then discounted at the appropriate credit-adjusted risk free rate ranging from 5.5% to 6.6% depending on the life of the well. The fair value of asset retirement obligations was estimated at $32.5 million, approximately $0.3 million of which was recorded as current. Refer to Note 9, "Asset Retirement Obligations," for further details of the Company's asset retirement obligations. (13) Reflects the adjustment of the 2020 Second Lien Notes and the 2022 Second Lien Notes to fair value. The fair value estimate was based on quoted market prices from trades of such debt on September 9, 2016. Refer to Note 6, "Debt," for definitions of and further information regarding the 2020 Second Lien Notes and 2022 Second Lien Notes. (14) Reflects the adjustment of the Company's redeemable noncontrolling interest and related embedded derivative of HK TMS, LLC to fair value. The fair value of the redeemable noncontrolling interest was estimated at $41.1 million and the embedded derivative was estimated at zero. For purposes of estimating the fair values, an income approach was used that estimated fair value based on the anticipated cash flows associated with HK TMS, LLC's proved reserves, risked by reserve category and discounted using a weighted average cost of capital rate of 12.5%. The value of the redeemable noncontrolling interest was further reduced by a probability factor of the potential assignment of the common shares of HK TMS, LLC to Apollo Global Management, which occurred subsequent to the fresh-start date. Refer to Note 4, "Acquisitions and Divestitures," for further information regarding the divestiture of HK TMS, LLC on September 30, 2016. (15) Reflects the cumulative effect of the fresh-start accounting adjustments discussed above. |
Schedule of net cash payments pursuant to the terms of the Reorganization Plan | The table below details cash payments as of September 9, 2016, pursuant to the terms of the Plan described in Note 2, " Reorganization, " (in thousands): Payment to Third Lien Noteholders $ Payment to Unsecured Noteholders Payment to Convertible Noteholder Payment to Preferred Holders ​ ​ ​ ​ ​ Total Uses $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Liabilities subject to compromise, settled | Liabilities subject to compromise were as follows (in thousands): 13.0% senior secured third lien notes due 2022 $ 9.25% senior notes due 2022 8.875% senior notes due 2021 9.75% senior notes due 2020 8.0% convertible note due 2020 Accrued interest Office lease modification and rejection fees ​ ​ ​ ​ ​ Liabilities subject to compromise Fair value of equity and warrants issued to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder ) Cash payments to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder ) Office lease modification and rejection fees ) ​ ​ ​ ​ ​ Gain on settlement of Liabilities subject to compromise $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of cancellation of predecessor equity | Reflects the cancellation of Predecessor equity, as follows (in thousands): Predecessor Company stock $ Fair value of equity issued to Predecessor common stockholders ) Cash payment to Preferred Holders ) ​ ​ ​ ​ ​ Cancellation of Predecessor Company equity $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of cumulative effect of the reorganization adjustments | The table below reflects the cumulative effect of the reorganization adjustments discussed above (in thousands): Gain on settlement of Liabilities subject to compromise $ Accrued reorganization items ) Cancellation of Predecessor Company equity ​ ​ ​ ​ ​ Net impact to retained earnings (accumulated deficit) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of the net reorganization items | The following table summarizes the net reorganization items (in thousands): Successor Predecessor Period from Period from Gain on settlement of Liabilities subject to compromise $ — $ Fresh start adjustments — ) Reorganization professional fees and other ) ) Write-off debt discounts/premiums and debt issuance costs — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (loss) on reorganization items $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
ACQUISITIONS AND DIVESTITURES | |
Summary of the consideration paid for acquisition and the estimated values of assets acquired and liabilities assumed | The following table summarizes the consideration paid to acquire the Pecos County Assets, as well as the estimated values of assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash consideration paid to Samson at closing (1) $ Less: Post-effective closing date adjustments (2) ) ​ ​ ​ ​ ​ Final consideration transferred $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plus: Estimated Fair Value of Liabilities Assumed: Current liabilities $ Asset retirement obligations ​ ​ ​ ​ ​ Amount attributable to liabilites assumed ​ ​ ​ ​ ​ Total purchase price plus liabilities assumed $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated Fair Value of Assets Acquired: Evaluated oil and natural gas properties (3)(4) $ Unevaluated oil and natural gas properties (3)(4) Other operating property and equipment (5) ​ ​ ​ ​ ​ Amount attributable to assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents amount of cash consideration, adjusted for customary closing items, for the purchase of the Pecos County Assets funded by the issuance of approximately $400.1 million of new 8% automatically convertible preferred stock and borrowings under the Senior Credit Agreement. (2) In accordance with the purchase agreement, the effective date of the acquisition was November 1, 2016 and therefore revenues, expenses and related capital expenditures from November 1, 2016 through February 28, 2017, the closing date of the Pecos County Acquisition, have been reflected as adjustments to the purchase price consideration. (3) In estimating the fair value of the Pecos County Assets' oil and natural gas properties, the Company used an income approach. For purposes of estimating the fair value of the proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Pecos County Assets' estimated reserves risked by reserve category and discounted using a weighted average cost of capital rate of 10.0% for proved reserves and 12.0% for probable and possible reserves. The proved reserve locations were limited to wells expected to be drilled in the Company's five-year development plan. This estimation includes the use of unobservable inputs, such as estimated future production, oil and natural gas revenues and expenses. The use of these unobservable inputs results in the fair value estimate of the Pecos County Assets being classified as Level 3. (4) Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $76.10 per barrel of oil, $4.14 per Mcf of natural gas and $29.48 per barrel of oil equivalent of natural gas liquids, after adjustment for transportation fees and regional price differentials. Base pricing was derived from an average of forward strip prices and research analysts' estimated prices. (5) In estimating the fair value of the Pecos County Assets' other operating property and equipment, the Company used a combination of the cost and market approaches. A market approach was relied upon to value the land, heavy equipment and vehicles, and in this valuation approach, recent transactions of similar assets were utilized to determine the value from a market participant perspective. For the remaining other operating assets, a cost approach was used. The estimation of fair value under the cost approach was based on current replacement costs of the assets, less depreciation based on the estimated economic useful lives of the assets and age of the assets. |
Schedule of pro forma financial information | Successor Predecessor Nine Months Period from Period from (Unaudited) (Unaudited) (Unaudited) Revenue $ $ $ Net income (loss) ) Net income (loss) available to common stockholders ) ) Pro forma net income (loss) per share of common stock: Basic $ $ ) $ ) Diluted $ $ ) $ ) |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
DEBT | |
Schedule of long-term debt | Long-term debt as of September 30, 2017 (Successor) and December 31, 2016 (Successor) consisted of the following (in thousands): Successor September 30, December 31, Senior revolving credit facility $ — $ 8.625% senior secured second lien notes due 2020 (1) — 12.0% senior secured second lien notes due 2022 (2) — 6.75% senior notes due 2025 (3) — ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) On February 16, 2017, the Company repurchased approximately 41% of the outstanding aggregate principal amount of its 8.625% senior secured second lien notes due 2020 with proceeds from the issuance of new 6.75% senior unsecured notes due 2025. The remaining aggregate principal amount was redeemed on March 20, 2017. Amount was net of a $27.4 million unamortized discount at December 31, 2016 (Successor). Refer to "8.625% Senior Secured Second Lien Notes" below for further details. (2) On September 7, 2017, the Company issued an irrevocable notice to redeem the outstanding aggregate principal amount of its 12.0% senior secured second lien notes due 2022 on October 7, 2017. Amount is net of a $6.8 million unamortized discount at December 31, 2016 (Successor). Refer to "12.0% Senior Secured Second Lien Notes" below for further details. (3) On February 16, 2017, the Company issued $850.0 million aggregate principal amount of new 6.75% senior unsecured notes due 2025. On October 10, 2017, the Company repurchased $425.0 million principal amount of the 2025 Notes at 103.0% of par plus accrued and unpaid interest. The repurchased 2025 Notes are presented in "Current portion of long-term debt, net" on the unaudited condensed consolidated balance sheet at September 30, 2017. Amount is net of $8.3 million unamortized discount and $7.8 million unamortized debt issuance costs at September 30, 2017 (Successor). Refer to "6.75% Senior Notes" below for further details. |
Schedule of percentages of principal amount at which notes may be redeemed, by applicable redemption dates | Year Percentage 2020 2021 2022 2023 and thereafter |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of the Company's financial assets and liabilities | The following tables set forth by level within the fair value hierarchy the Company's financial assets and liabilities that were accounted for at fair value as of September 30, 2017 (Successor) and December 31, 2016 (Successor) (in thousands): Successor September 30, 2017 Level 1 Level 2 Level 3 Total Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2016 Level 1 Level 2 Level 3 Total Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of the estimated fair values of the Company's fixed interest rate debt instruments | The following table presents the estimated fair values of the Company's fixed interest rate debt instruments as of September 30, 2017 (Successor) and December 31, 2016 (Successor) (excluding discounts and debt issuance costs and including the current portion) (in thousands): Successor September 30, December 31, Debt Principal Estimated Principal Estimated 8.625% senior secured second lien notes $ — $ — $ $ 12.0% senior secured second lien notes — — 6.75% senior notes — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
DERIVATIVE AND HEDGING ACTIVI26
DERIVATIVE AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
DERIVATIVE AND HEDGING ACTIVITIES | |
Summary of location and fair value of derivative contracts | The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets (in thousands): Asset derivative contracts Liability derivative contracts Successor Successor Derivatives not Balance sheet September 30, December 31, Balance sheet September 30, December 31, Commodity contracts Current assets—receivables from derivative contracts $ $ Current liabilities—liabilities from derivative contracts $ ) $ ) Commodity contracts Other noncurrent assets—receivables from derivative contracts — Other noncurrent liabilities—liabilities from derivative contracts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging contracts under ASC 815 $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts | The following table summarizes the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts in the Company's unaudited condensed consolidated statements of operations (in thousands): Amount of gain or (loss) recognized in Successor Predecessor Period from Period from Three Location of gain or (loss) recognized in Derivatives not designated as hedging Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts $ ) $ ) $ ) Realized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net gain (loss) on derivative contracts $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of gain or (loss) recognized in Successor Predecessor Period from Period from Nine Months Location of gain or (loss) recognized in Derivatives not designated as hedging Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts $ $ ) $ ) Realized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net gain (loss) on derivative contracts $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of open derivative contracts | At September 30, 2017 (Successor) and December 31, 2016 (Successor), the Company had the following open crude oil and natural gas derivative contracts: Successor September 30, 2017 Floors Ceilings Basis Differential Period Instrument Commodity Volume in Price / Weighted Price / Weighted Price / Weighted October 2017 - December 2017 Collars Natural Gas $ $ $ $ $ — $ — October 2017 - December 2017 Collars Crude Oil 51.07 - 60.00 56.07 - 75.00 November 2017 - December 2017 Collars Crude Oil January 2018 - December 2018 Basis Swap Crude Oil (1.05) - (1.50) ) January 2018 - December 2018 Collars Crude Oil 45.00 - 53.00 50.00 - 60.00 January 2018 - December 2018 Collars Natural Gas 3.00 - 3.03 3.22 - 3.38 April 2018 - December 2018 Basis Swap Crude Oil ) April 2018 - December 2018 Collars Crude Oil July 2018 - December 2018 Basis Swap Crude Oil (0.98) - (1.18) ) July 2018 - December 2018 Collars Crude Oil January 2019 - March 2019 Collars Crude Oil January 2019 - December 2019 Basis Swap Crude Oil (0.98) - (1.33) ) Successor December 31, 2016 Floors Ceilings Period Instrument Commodity Volume in Price / Weighted Price / Weighted January 2017 - December 2017 Collars Natural Gas $ 3.15 - $3.26 $ $ 3.50 - $3.76 $ January 2017 - December 2017 Collars Crude Oil 47.00 - 60.00 52.00 - 76.84 January 2018 - December 2018 Collars Crude Oil |
Schedule of potential effects of master netting arrangements on the fair value of derivative contracts | The following table shows the potential effects of master netting arrangements on the fair value of the Company's derivative contracts (in thousands): Derivative Assets Derivative Liabilities Successor Successor Offsetting of Derivative Assets and Liabilities September 30, December 31, September 30, December 31, Gross Amounts Presented in the Consolidated Balance Sheet $ $ $ ) $ ) Amounts Not Offset in the Consolidated Balance Sheet ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Amount $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
ASSET RETIREMENT OBLIGATIONS | |
Schedule of activity related to ARO liability | The Company recorded the following activity related to its ARO liability (in thousands, inclusive of the current portion): Liability for asset retirement obligations as of December 31, 2016 (Sucessor) $ Liabilities settled and divested (1) ) Additions Acquisitions (1) Accretion expense Revisions in estimated cash flows ​ ​ ​ ​ ​ Liability for asset retirement obligations as of September 30, 2017 (Successor) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) See Note 4, "Acquisitions and Divestitures," for further information. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of approximate future minimum lease payments for subsequent annual periods for all non-cancelable operating leases | Future obligations associated with the Company's operating leases are presented in the table below (in thousands): Remaining period in 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of commitments | As of September 30, 2017 (Successor), the Company has the following active drilling rig commitments (in thousands): Remaining period in 2017 $ 2018 2019 — 2020 — 2021 — Thereafter — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | In the future, the Company expects to incur stacking charges/early termination fees on certain drilling rig commitments as follows (in thousands): Remaining period in 2017 $ 2018 2019 — 2020 2021 — Thereafter — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER COMMON SHARE | |
Schedule of calculation of earnings (loss) per share | The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): Successor Predecessor Period from Period from Three Months Basic: Net income (loss) available to common stockholders $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per share of common stock $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: Net income (loss) available to common stockholders $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest on Convertible Note, net — — Series A preferred dividends — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders after assumed conversions $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding Common stock equivalent shares representing shares issuable upon: Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Exercise of February 2012 Warrants — — Anti-dilutive Exercise of warrants Anti-dilutive Anti-dilutive — Vesting of restricted shares Anti-dilutive Anti-dilutive Vesting of performance units — — — Conversion of preferred stock — — — Conversion of Convertible Note — — Conversion of Series A Preferred Stock — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share of common stock $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Successor Predecessor Period from Period from Nine Months Basic: Net income (loss) available to common stockholders $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per share of common stock $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: Net income (loss) available to common stockholders $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding Common stock equivalent shares representing shares issuable upon: Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Exercise of February 2012 Warrants — — Anti-dilutive Exercise of warrants Anti-dilutive Anti-dilutive — Vesting of restricted shares Anti-dilutive Anti-dilutive Vesting of performance units — — — Conversion of preferred stock Anti-dilutive — Conversion of Convertible Note — — Anti-dilutive Conversion of Series A Preferred Stock — — Anti-dilutive ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share of common stock $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
ADDITIONAL FINANCIAL STATEMEN30
ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | |
Schedule of additional financial statement information, balance sheet | Certain balance sheet amounts are comprised of the following (in thousands): Successor September 30, 2017 December 31, 2016 Accounts receivable: Oil, natural gas and natural gas liquids revenues $ $ Joint interest accounts Accrued settlements on derivative contracts Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prepaids and other: Prepaids $ $ Income tax receivable — Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funds in escrow and other: Funds in escrow $ $ Debt issuance costs — Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities: Trade payables $ $ Accrued oil and natural gas capital costs Revenues and royalties payable Accrued interest expense Accrued employee compensation Accrued lease operating expenses Drilling advances from partners Income tax payable — Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
FINANCIAL STATEMENT PRESENTAT31
FINANCIAL STATEMENT PRESENTATION (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Basis of Presentation and Principles of Consolidation | ||
Number of operating segments | segment | 1 | |
Allowance for doubtful accounts receivable | $ | $ 0 | $ 0 |
FINANCIAL STATEMENT PRESENTAT32
FINANCIAL STATEMENT PRESENTATION - PPE (Details) - USD ($) $ in Thousands | 8 Months Ended | 9 Months Ended | |
Sep. 09, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Other operating property and equipment | |||
Gross investments | $ 38,071 | $ 68,195 | $ 38,617 |
Predecessor | |||
Other operating property and equipment | |||
Non-cash impairment charge | 28,056 | ||
Gross investments | 100,079 | ||
Gas gathering systems and equipment | |||
Other operating property and equipment | |||
Estimated useful life | 30 years | ||
Gas gathering systems and equipment | Predecessor | |||
Other operating property and equipment | |||
Non-cash impairment charge | 28,100 | ||
Gross investments | $ 32,800 | ||
Water disposal and recycling facilities | |||
Other operating property and equipment | |||
Estimated useful life | 20 years | ||
Compressed natural gas facilities | |||
Other operating property and equipment | |||
Estimated useful life | 10 years | ||
Automobiles | |||
Other operating property and equipment | |||
Estimated useful life | 3 years | ||
Computers | |||
Other operating property and equipment | |||
Estimated useful life | 3 years | ||
Computer software | Maximum | |||
Other operating property and equipment | |||
Estimated useful life | 5 years | ||
Fixtures, furniture and equipment | Maximum | |||
Other operating property and equipment | |||
Estimated useful life | 5 years | ||
Trailers | |||
Other operating property and equipment | |||
Estimated useful life | 7 years | ||
Heavy equipment | Minimum | |||
Other operating property and equipment | |||
Estimated useful life | 8 years | ||
Heavy equipment | Maximum | |||
Other operating property and equipment | |||
Estimated useful life | 10 years | ||
Buildings | |||
Other operating property and equipment | |||
Estimated useful life | 20 years |
REORGANIZATION (Details)
REORGANIZATION (Details) $ / shares in Units, $ in Thousands | Sep. 09, 2016USD ($)$ / shares | May 15, 2016USD ($)$ / shares | Sep. 09, 2016USD ($)$ / shares | Sep. 30, 2017USD ($) | Sep. 07, 2017USD ($) | Jul. 10, 2017 | Dec. 31, 2016USD ($) | Dec. 21, 2015USD ($) | May 01, 2015USD ($) |
Restructuring Support Agreement | |||||||||
Principal amount | $ 850,000 | $ 812,826 | |||||||
8.625% senior secured second lien notes due 2020 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 8.625% | 8.625% | |||||||
Principal amount | $ 700,000 | ||||||||
12.0% senior secured second lien notes due 2022 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 12.00% | 12.00% | 12.00% | ||||||
Principal amount | $ 112,800 | $ 112,826 | |||||||
Predecessor | |||||||||
Restructuring Support Agreement | |||||||||
Cash Payments Made To Preferred Holders | $ 11,100 | ||||||||
Dividend rate (as a percent) | 5.75% | ||||||||
Predecessor | Series A Preferred Stock | |||||||||
Restructuring Support Agreement | |||||||||
Dividend rate (as a percent) | 5.75% | ||||||||
Predecessor | 8.625% senior secured second lien notes due 2020 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 8.625% | ||||||||
Principal amount | $ 700,000 | ||||||||
Predecessor | 12.0% senior secured second lien notes due 2022 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 12.00% | ||||||||
Principal amount | $ 112,800 | ||||||||
Predecessor | 13.0% senior secured third lien notes due 2022 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 13.00% | 13.00% | |||||||
Predecessor | 9.25% senior notes due 2022 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 9.25% | 9.25% | |||||||
Predecessor | 8.875% senior notes due 2021 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 8.875% | 8.875% | |||||||
Predecessor | 9.75% senior notes due 2020 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 9.75% | 9.75% | |||||||
Predecessor | 8.0% convertible note due 2020 | |||||||||
Restructuring Support Agreement | |||||||||
Interest rate (as a percent) | 8.00% | 8.00% | |||||||
Predecessor | Restructuring of indebtedness and capitalization | The Restructuring Support Agreement | Common Stock | |||||||||
Restructuring Support Agreement | |||||||||
Pro-forma equity of reorganized Entity (as a percent) | 4 | 4 | |||||||
Predecessor | Restructuring of indebtedness and capitalization | The Restructuring Support Agreement | Series A Preferred Stock | |||||||||
Restructuring Support Agreement | |||||||||
Cash Payments Made To Preferred Holders | $ 11,100 | ||||||||
Predecessor | Restructuring of indebtedness and capitalization | The Restructuring Support Agreement | 13.0% senior secured third lien notes due 2022 | |||||||||
Restructuring Support Agreement | |||||||||
Pro-forma equity of reorganized Entity (as a percent) | 76.5 | ||||||||
Cash payment to noteholders | $ 33,800 | ||||||||
Predecessor | Restructuring of indebtedness and capitalization | The Restructuring Support Agreement | 8.0% convertible note due 2020 | |||||||||
Restructuring Support Agreement | |||||||||
Pro-forma equity of reorganized Entity (as a percent) | 4 | 4 | |||||||
Cash payment to noteholders | $ 15,000 | ||||||||
Warrants to purchase shares of pro-forma equity of reorganized Halcon (as a percent) | 1.00% | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 14.04 | $ 14.04 | |||||||
Extension term | 4 years | ||||||||
Predecessor | Restructuring of indebtedness and capitalization | The Restructuring Support Agreement | Senior Unsecured Notes Held by Certain Holders | |||||||||
Restructuring Support Agreement | |||||||||
Pro-forma equity of reorganized Entity (as a percent) | 15.5 | ||||||||
Cash payment to noteholders | $ 37,600 | ||||||||
Warrants to purchase shares of pro-forma equity of reorganized Halcon (as a percent) | 4.00% | ||||||||
Warrant term | 4 years | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 14.04 | $ 14.04 | $ 14.04 |
FRESH-START ACCOUNTING (Details
FRESH-START ACCOUNTING (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 09, 2016 | Dec. 31, 2015 |
Fresh-Start Adjustment | |||||
Enterprise Value | $ 1,618,888 | ||||
Plus: Cash | $ 989,347 | $ 24 | $ 2,011 | 13,943 | |
Less: Fair value of debt | (1,016,160) | ||||
Less: Fair value of redeemable noncontrolling interest | (41,070) | ||||
Less: Fair value of other long-term liabilities | (4,478) | ||||
Less: Fair value of warrants | (16,691) | ||||
Fair Value of Successor common stock | 554,432 | ||||
Predecessor | |||||
Fresh-Start Adjustment | |||||
Plus: Cash | 13,943 | $ 8,026 | |||
Predecessor | Minimum | |||||
Fresh-Start Adjustment | |||||
Enterprise Value | $ 1,600,000 | ||||
Predecessor | Maximum | |||||
Fresh-Start Adjustment | |||||
Maximum percentage of voting shares of emerging entity to qualify for fresh-start accounting under ASC 852 (as a percent) | 50.00% | ||||
Enterprise Value | $ 1,800,000 |
FRESH-START ACCOUNTING-Enterpri
FRESH-START ACCOUNTING-Enterprise to Reorg Values (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 09, 2016 |
FRESH-START ACCOUNTING | ||||
Enterprise Value | $ 1,618,888 | |||
Plus: Cash | $ 989,347 | $ 24 | $ 2,011 | 13,943 |
Plus: Current liabilities | 178,639 | |||
Plus: Noncurrent asset retirement obligation | 32,156 | |||
Reorganization Value of Successor assets | $ 1,843,626 |
FRESH-START ACCOUNTING-Balance
FRESH-START ACCOUNTING-Balance sheet effects (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 10, 2016 | Sep. 09, 2016 | Dec. 31, 2015 |
Current assets: | |||||
Cash | $ 989,347 | $ 24 | $ 13,943 | ||
Accounts receivable | 108,753 | 147,762 | 116,859 | ||
Receivables from derivative contracts | 5,166 | 5,923 | 97,648 | ||
Restricted cash | 17,164 | ||||
Prepaids and other | 12,171 | 6,940 | 7,629 | ||
Total current assets | 1,115,437 | 160,649 | 253,243 | ||
Oil and natural gas properties (full cost method): | |||||
Evaluated | 782,695 | 1,269,034 | 1,214,129 | ||
Unevaluated | 757,401 | 316,439 | 332,115 | ||
Gross oil and natural gas properties | 1,540,096 | 1,585,473 | 1,546,244 | ||
Less - accumulated depletion | (561,989) | (465,849) | |||
Net oil and natural gas properties | 978,107 | 1,119,624 | 1,546,244 | ||
Other operating property and equipment: | |||||
Other operating property and equipment | 68,195 | 38,617 | 38,071 | ||
Less - accumulated depreciation | (2,967) | (1,107) | |||
Net other operating property and equipment | 65,228 | 37,510 | 38,071 | ||
Other noncurrent assets: | |||||
Receivables from derivative contracts | 1,444 | 4,431 | |||
Funds in escrow and other | 2,408 | 1,887 | 1,637 | ||
Total assets | 2,162,624 | 1,319,670 | 1,843,626 | ||
Current liabilities: | |||||
Accounts payable and accrued liabilities | 172,012 | 186,184 | 173,688 | ||
Liabilities from derivative contracts | 3,279 | 16,434 | 102 | ||
Other | 8 | 4,935 | 4,849 | ||
Total current liabilities | 584,178 | 207,553 | 178,639 | ||
Long-term debt, net | 408,879 | 964,653 | 1,016,160 | ||
Other noncurrent liabilities: | |||||
Liabilities from derivative contracts | 2,175 | 486 | 525 | ||
Asset retirement obligations | 5,116 | 31,985 | 32,156 | ||
Other | 288 | 2,305 | 3,953 | ||
Commitments and contingencies | |||||
Mezzanine equity: | |||||
Redeemable noncontrolling interest | 41,070 | ||||
Stockholders' equity: | |||||
Common stock | 15 | 9 | 9 | ||
Additional paid-in capital | 1,013,141 | 592,663 | 571,114 | ||
Retained earnings (accumulated deficit) | 148,832 | (479,984) | |||
Total stockholders' equity | 1,161,988 | 112,688 | $ 571,123 | 571,123 | |
Total liabilities and stockholders' equity | $ 2,162,624 | $ 1,319,670 | 1,843,626 | ||
Reorganization Adjustments | |||||
Current assets: | |||||
Cash | (97,521) | ||||
Total current assets | (97,521) | ||||
Other noncurrent assets: | |||||
Total assets | (97,521) | ||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | 13,688 | ||||
Total current liabilities | 13,688 | ||||
Liabilities subject to compromise | 2,007,703 | ||||
Other noncurrent liabilities: | |||||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Common stock | 9 | ||||
Additional paid-in capital | 571,114 | ||||
Retained earnings (accumulated deficit) | 4,613,289 | ||||
Total stockholders' equity | 1,896,494 | ||||
Total liabilities and stockholders' equity | (97,521) | ||||
Fresh Start Adjustments | |||||
Current assets: | |||||
Prepaids and other | (1,332) | ||||
Total current assets | (1,332) | ||||
Oil and natural gas properties (full cost method): | |||||
Evaluated | (6,497,874) | ||||
Unevaluated | (861,144) | ||||
Gross oil and natural gas properties | (7,359,018) | ||||
Less - accumulated depletion | 6,803,231 | ||||
Net oil and natural gas properties | (555,787) | ||||
Other operating property and equipment: | |||||
Other operating property and equipment | (62,008) | ||||
Less - accumulated depreciation | 24,154 | ||||
Net other operating property and equipment | (37,854) | ||||
Other noncurrent assets: | |||||
Funds in escrow and other | 27 | ||||
Total assets | (594,946) | ||||
Current liabilities: | |||||
Other | 4,435 | ||||
Total current liabilities | 4,435 | ||||
Long-term debt, net | (14,954) | ||||
Other noncurrent liabilities: | |||||
Asset retirement obligations | (16,799) | ||||
Other | 3,425 | ||||
Commitments and contingencies | |||||
Mezzanine equity: | |||||
Redeemable noncontrolling interest | (178,821) | ||||
Stockholders' equity: | |||||
Retained earnings (accumulated deficit) | (392,232) | ||||
Total stockholders' equity | (392,232) | ||||
Total liabilities and stockholders' equity | (594,946) | ||||
Predecessor | |||||
Current assets: | |||||
Cash | 111,464 | ||||
Accounts receivable | 116,859 | ||||
Receivables from derivative contracts | 97,648 | ||||
Restricted cash | 17,164 | ||||
Prepaids and other | 8,961 | ||||
Total current assets | 352,096 | ||||
Oil and natural gas properties (full cost method): | |||||
Evaluated | 7,712,003 | ||||
Unevaluated | 1,193,259 | ||||
Gross oil and natural gas properties | 8,905,262 | ||||
Less - accumulated depletion | (6,803,231) | ||||
Net oil and natural gas properties | 2,102,031 | ||||
Other operating property and equipment: | |||||
Other operating property and equipment | 100,079 | ||||
Less - accumulated depreciation | (24,154) | ||||
Net other operating property and equipment | 75,925 | ||||
Other noncurrent assets: | |||||
Receivables from derivative contracts | 4,431 | ||||
Funds in escrow and other | 1,610 | ||||
Total assets | 2,536,093 | ||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | 160,000 | ||||
Liabilities from derivative contracts | 102 | ||||
Other | 414 | ||||
Total current liabilities | 160,516 | ||||
Long-term debt, net | 1,031,114 | ||||
Liabilities subject to compromise | 2,007,703 | ||||
Other noncurrent liabilities: | |||||
Liabilities from derivative contracts | 525 | ||||
Asset retirement obligations | 48,955 | ||||
Other | 528 | ||||
Commitments and contingencies | |||||
Mezzanine equity: | |||||
Redeemable noncontrolling interest | 219,891 | ||||
Stockholders' equity: | |||||
Common stock | 12 | ||||
Additional paid-in capital | 3,287,906 | ||||
Retained earnings (accumulated deficit) | (4,221,057) | ||||
Total stockholders' equity | (933,139) | $ 52,414 | |||
Total liabilities and stockholders' equity | 2,536,093 | ||||
Predecessor | Reorganization Adjustments | |||||
Stockholders' equity: | |||||
Common stock | (12) | ||||
Additional paid-in capital | (3,287,906) | ||||
Total stockholders' equity | $ (3,287,918) |
FRESH-START ACCOUNTING-Net cash
FRESH-START ACCOUNTING-Net cash payments (Details) - Reorganization Adjustments $ in Thousands | Sep. 09, 2016USD ($) |
Uses: | |
Payment to settle debt | $ (86,421) |
Total Uses | 97,521 |
Series A Preferred Stock | |
Uses: | |
Cash payment to Preferred holders | 11,100 |
13.0% senior secured third lien notes due 2022 | |
Uses: | |
Payment to settle debt | 33,826 |
8.0% convertible note due 2020 | |
Uses: | |
Payment to settle debt | 15,000 |
Senior Unsecured Notes Held by Certain Holders | |
Uses: | |
Payment to settle debt | $ 37,595 |
FRESH-START ACCOUNTING-Liabilit
FRESH-START ACCOUNTING-Liabilities subject to compromise (Details) - USD ($) $ in Thousands | Sep. 09, 2016 | Sep. 30, 2016 |
Liabilities subject to compromise | ||
Fair value of equity and warrants issued to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder | $ 554,432 | |
Reorganization Adjustments | ||
Fresh-Start Adjustment | ||
Payments for amended certain office lease arrangements | $ 3,400 | |
Restructuring Advisor fees | $ 10,300 | |
Liabilities subject to compromise | ||
Accrued interest | 46,715 | |
Office lease modification and rejection fees | 3,427 | |
Liabilities subject to compromise, Total | 2,007,703 | |
Fair value of equity and warrants issued to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder | (548,947) | |
Cash payments to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder | (86,421) | |
Office lease modification and rejection fees | (3,427) | |
Gain on settlement of Liabilities subject to compromise | 1,368,908 | |
Reorganization Adjustments | 13.0% senior secured third lien notes due 2022 | ||
Liabilities subject to compromise | ||
Debt | 1,017,970 | |
Cash payments to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder | 33,826 | |
Reorganization Adjustments | 9.25% senior notes due 2022 | ||
Liabilities subject to compromise | ||
Debt | 37,194 | |
Reorganization Adjustments | 8.875% senior notes due 2021 | ||
Liabilities subject to compromise | ||
Debt | 297,193 | |
Reorganization Adjustments | 9.75% senior notes due 2020 | ||
Liabilities subject to compromise | ||
Debt | 315,535 | |
Reorganization Adjustments | 8.0% convertible note due 2020 | ||
Liabilities subject to compromise | ||
Debt | 289,669 | |
Cash payments to Third Lien Noteholders, Unsecured Noteholders and Convertible Noteholder | $ 15,000 |
FRESH-START ACCOUNTING-Cancella
FRESH-START ACCOUNTING-Cancellation of predecessor equity (Details) - USD ($) $ in Thousands | Sep. 09, 2016 | Sep. 09, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 10, 2016 | Dec. 31, 2015 |
Cancellation of predecessor equity | ||||||
Company Stock | $ (571,123) | $ (571,123) | $ (1,161,988) | $ (112,688) | $ (571,123) | |
Fair value of equity issued to Predecessor common stockholders | 554,432 | 554,432 | ||||
Predecessor | ||||||
Cancellation of predecessor equity | ||||||
Company Stock | 933,139 | 933,139 | $ (52,414) | |||
Cash payment to Preferred Holders | (11,100) | |||||
Reorganization Adjustments | ||||||
Cancellation of predecessor equity | ||||||
Company Stock | (1,896,494) | (1,896,494) | ||||
Fair value of equity issued to Predecessor common stockholders | (548,947) | (548,947) | ||||
Reorganization Adjustments | Predecessor | ||||||
Cancellation of predecessor equity | ||||||
Company Stock | 3,287,918 | 3,287,918 | ||||
Fair value of equity issued to Predecessor common stockholders | (22,176) | (22,176) | ||||
Cash payment to Preferred Holders | (11,100) | |||||
Cancellation of Predecessor Company equity | $ (3,254,642) | $ (3,254,642) |
FRESH-START ACCOUNTING-Successo
FRESH-START ACCOUNTING-Successor equity (Details) - $ / shares shares in Millions | Apr. 06, 2017 | Sep. 09, 2016 |
Warrants Issued to Former Holders of Unsecured and Convertible Notes | ||
Stockholders' equity | ||
Number of warrants issued | 4.7 | |
Exercise price (in dollars per share) | $ 14.04 | |
Exercise or expiration period | 4 years | |
8.0% convertible note due 2020 | ||
Stockholders' equity | ||
Number of warrants issued | 0.9 | |
Senior Unsecured Notes Held by Certain Holders | ||
Stockholders' equity | ||
Number of warrants issued | 3.8 | |
Common Stock | ||
Stockholders' equity | ||
Shares issued | 55.2 | 90 |
Reorganization Adjustments | Warrants Issued to Former Holders of Unsecured and Convertible Notes | ||
Stockholders' equity | ||
Fair Value price of Warrants (in dollars per share) | $ 3.52 | |
Reorganization Adjustments | 13.0% senior secured third lien notes due 2022 | ||
Stockholders' equity | ||
Shares issued | 68.8 | |
Reorganization Adjustments | 8.0% convertible note due 2020 | ||
Stockholders' equity | ||
Shares issued | 3.6 | |
Reorganization Adjustments | Senior Unsecured Notes Held by Certain Holders | ||
Stockholders' equity | ||
Shares issued | 14 | |
Reorganization Adjustments | Common Stock | ||
Stockholders' equity | ||
Shares issued | 3.6 |
FRESH-START ACCOUNTING-Effect o
FRESH-START ACCOUNTING-Effect of reorganization adj cumulative (Details) $ in Thousands | Sep. 09, 2016USD ($) | Sep. 09, 2016USD ($) |
Reorganization Adjustments | ||
Cumulative effect of the reorganization adjustments | ||
Gain on settlement of Liabilities subject to compromise | $ 1,368,908 | |
Predecessor | ||
Cumulative effect of the reorganization adjustments | ||
Gain on settlement of Liabilities subject to compromise | $ 1,368,908 | |
Predecessor | Reorganization Adjustments | ||
Cumulative effect of the reorganization adjustments | ||
Gain on settlement of Liabilities subject to compromise | 1,368,908 | |
Accrued reorganization items | (10,261) | (10,261) |
Cancellation of Predecessor Company equity | 3,254,642 | 3,254,642 |
Net impact to retained earnings (accumulated deficit) | $ 4,613,289 | $ 4,613,289 |
FRESH-START ACCOUNTING-FV adjus
FRESH-START ACCOUNTING-FV adjustments to oil and natural gas properties (Details) - Fresh Start Adjustments | Sep. 09, 2016$ / MMBTU$ / bbl |
Oil and natural gas properties (full cost method): | |
Weighted average cost of capital rate (as a percent) | 10.50 |
Weighted average cost of capital for probable and possible reserves rate (as a percent) | 12.5 |
Development plan in years | 5 years |
Weighted average commodity price of oil (in dollars per barrel) | 72.30 |
Weighted average commodity price of natural gas (in dollars per Mmbtu) | $ / MMBTU | 3.50 |
Weighted average commodity price of natural gas liquids (in dollars per barrel) | 12 |
FRESH-START ACCOUNTING-FV adj43
FRESH-START ACCOUNTING-FV adjustments to other operating properties (Details) $ in Thousands | Sep. 09, 2016USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Other operating property and equipment: | |||
Asset retirement obligations | $ 5,124 | $ 32,375 | |
Fresh Start Adjustments | |||
Other operating property and equipment: | |||
Asset retirement obligations | $ 32,500 | ||
Fair value of asset retirement obligation current | 300 | ||
Fair value of redeemable noncontrolling interest | 41,100 | ||
Fair Value of embedded derivative | $ 0 | ||
Weighted average cost of capital rate (as a percent) | 10.50 | ||
Fresh Start Adjustments | Embedded Derivative | |||
Other operating property and equipment: | |||
Weighted average cost of capital rate (as a percent) | 12.5 | ||
Fresh Start Adjustments | Minimum | |||
Other operating property and equipment: | |||
Risk free rate (as a percent) | 5.50% | ||
Fresh Start Adjustments | Maximum | |||
Other operating property and equipment: | |||
Risk free rate (as a percent) | 6.60% | ||
Fresh Start Adjustments | Drilling rig commitments | |||
Other operating property and equipment: | |||
Intangible liability for rig contract | $ 8,300 | ||
Intangible current liability for rig contract | $ 4,500 | ||
Fresh Start Adjustments | Gas gathering systems and equipment | |||
Other operating property and equipment: | |||
Weighted average cost of capital rate (as a percent) | 9.5 |
FRESH-START ACCOUNTING-Reorgani
FRESH-START ACCOUNTING-Reorganization items (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 8 Months Ended |
Sep. 30, 2016 | Sep. 09, 2016 | Sep. 09, 2016 | |
Reorganization Items | |||
Reorganization professional fees and other | $ (556) | ||
Gain (loss) on reorganization items | $ (556) | ||
Predecessor | |||
Reorganization Items | |||
Gain on settlement of Liabilities subject to compromise | $ 1,368,908 | ||
Fresh start adjustments | (392,232) | ||
Reorganization professional fees and other | (30,287) | ||
Write-off of debt discounts/premium and debt issuance costs | (32,667) | ||
Gain (loss) on reorganization items | $ 913,722 | $ 913,722 |
ACQUISITIONS AND DIVESTITURES-P
ACQUISITIONS AND DIVESTITURES-Pecos County Consideration (Details) $ in Thousands | Feb. 28, 2017USD ($)$ / Mcf$ / Boe$ / bbl | Jan. 24, 2017 | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 09, 2016USD ($) |
Estimated Fair Value of Assets Acquired: | |||||
Evaluated oil and natural gas properties | $ 782,695 | $ 1,269,034 | $ 1,214,129 | ||
Other operating property and equipment | $ 68,195 | $ 38,617 | $ 38,071 | ||
8% Convertible Preferred Stock | |||||
Additional disclosures | |||||
Dividend rate (as a percent) | 8.00% | ||||
Pecos County Assets | |||||
Consideration paid for acquisition and the estimated values of assets acquired and liabilities assumed | |||||
Cash consideration paid to Samson at closing | $ 703,865 | ||||
Less: Post-effective closing date adjustments | (4,677) | ||||
Final Consideration transferred | 699,188 | ||||
Plus: Estimated Fair Value of Liabilities Assumed: | |||||
Current liabilities | 839 | ||||
Asset retirement obligations | 2,116 | ||||
Amount attributable to liabilities assumed | 2,955 | ||||
Total purchase price plus liabilities assumed | 702,143 | ||||
Estimated Fair Value of Assets Acquired: | |||||
Evaluated oil and natural gas properties | 150,275 | ||||
Unevaluated oil and natural gas properties | 525,489 | ||||
Other operating property and equipment | 26,379 | ||||
Amount attributable to assets acquired | 702,143 | ||||
Additional disclosures | |||||
Goodwill | $ 0 | ||||
Weighted average cost of capital rate (as a percent) | 10 | ||||
Weighted average cost of capital for probable and possible reserves rate (as a percent) | 12 | ||||
Development plan in years | 5 years | ||||
Pecos County Assets | Crude oil | |||||
Additional disclosures | |||||
Weighted average commodity prices | $ / bbl | 76.10 | ||||
Pecos County Assets | Natural gas | |||||
Additional disclosures | |||||
Weighted average commodity prices | $ / Mcf | 4.14 | ||||
Pecos County Assets | NGLs | |||||
Additional disclosures | |||||
Weighted average commodity prices | $ / Boe | 29.48 | ||||
Pecos County Assets | 8% Convertible Preferred Stock | |||||
Additional disclosures | |||||
Net proceeds received | $ 400,100 | ||||
Dividend rate (as a percent) | 8.00% |
ACQUISITIONS AND DIVESTITURES46
ACQUISITIONS AND DIVESTITURES-Pecos County Proforma (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 09, 2016 | Sep. 30, 2017 | Sep. 09, 2016 | Sep. 30, 2017 | |
Pro forma financial information | |||||
Net income (loss) available to common stockholders | $ (451,483) | $ 419,287 | $ 580,809 | ||
Predecessor | |||||
Pro forma financial information | |||||
Net income (loss) available to common stockholders | (451,483) | $ 916,421 | $ (32,794) | ||
Pecos County Assets | |||||
Pro forma financial information | |||||
Revenue | 25,516 | 360,590 | |||
Net income (loss) | (450,035) | 635,854 | |||
Net income (loss) available to common stockholders | $ (450,826) | $ 587,847 | |||
Pro forma net income (loss) per share of common stock: | |||||
Basic (in dollars per share) | $ (4.95) | $ 4.61 | |||
Diluted (in dollars per share) | $ (4.95) | $ 4.58 | |||
Additional disclosures | |||||
Transaction costs and non-recurring charges | $ 1,000 | ||||
Oil, natural gas and natural gas liquids sales related to properties acquired | 28,300 | ||||
Net field operating income related to properties acquired | 2,400 | ||||
Pecos County Assets | General and administrative | |||||
Additional disclosures | |||||
Non-recurring transaction costs | $ 1,000 | ||||
Pecos County Assets | Predecessor | |||||
Pro forma financial information | |||||
Revenue | 288,902 | ||||
Net income (loss) | 16,513 | ||||
Net income (loss) available to common stockholders | $ (28,239) | ||||
Pro forma net income (loss) per share of common stock: | |||||
Basic (in dollars per share) | $ (0.23) | ||||
Diluted (in dollars per share) | $ (0.23) |
ACQUISITIONS AND DIVESTITURES-D
ACQUISITIONS AND DIVESTITURES-Divestitures (Details) shares in Thousands, $ in Thousands | Sep. 19, 2017USD ($) | Jul. 10, 2017USD ($)subsidiary | Jan. 24, 2017USD ($) | Jan. 01, 2017USD ($) | Sep. 30, 2016shares | Sep. 30, 2017USD ($) | Sep. 09, 2016USD ($)shares | Sep. 30, 2017USD ($) | Sep. 07, 2017USD ($) | Feb. 16, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 21, 2015USD ($) |
Divestitures | ||||||||||||
Proceeds received from sales of oil and natural gas properties | $ 1,901,578 | |||||||||||
Aggregate principal amount | $ 850,000 | 850,000 | $ 812,826 | |||||||||
Proceeds received from sale of other operating property and equipment | 21,291 | |||||||||||
Gain (loss) from sale of gas gathering and other operating assets | 491,830 | 727,520 | ||||||||||
Additional preferred shares issued to Apollo for dividends paid-in-kind | shares | 791 | 9,329 | ||||||||||
Gas gathering systems and equipment | ||||||||||||
Divestitures | ||||||||||||
Proceeds received from sales of oil and natural gas properties | $ 484,100 | |||||||||||
Proceeds received from sales of oil and natural gas assets | $ 1,390,000 | |||||||||||
Proceeds received from sale of other operating property and equipment | $ 10,900 | $ 10,200 | ||||||||||
6.75% senior unsecured notes due 2025 | ||||||||||||
Divestitures | ||||||||||||
Aggregate principal amount | $ 850,000 | $ 850,000 | $ 850,000 | |||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | ||||||||
12.0% senior secured second lien notes due 2022 | ||||||||||||
Divestitures | ||||||||||||
Aggregate principal amount | $ 112,800 | $ 112,826 | ||||||||||
Interest rate (as a percent) | 12.00% | 12.00% | 12.00% | 12.00% | ||||||||
Gain on sale of oil and natural gas assets | ||||||||||||
Divestitures | ||||||||||||
Gain (loss) from sale of gas gathering and other operating assets | $ 0 | 0 | $ 491,800 | $ 235,700 | ||||||||
Williston Basin Assets | ||||||||||||
Divestitures | ||||||||||||
Gain (loss) from sale of gas gathering and other operating assets | $ 0 | |||||||||||
Williston Basin Assets | Disposal Group Disposed of by Sale | ||||||||||||
Divestitures | ||||||||||||
Ownership percentage in subsidiaries | 100.00% | |||||||||||
Number of subsidiaries | subsidiary | 2 | |||||||||||
Proceeds received from sales of oil and natural gas assets | $ 105,200 | $ 1,400,000 | ||||||||||
Williston Basin Assets | Disposal Group Disposed of by Sale | 6.75% senior unsecured notes due 2025 | ||||||||||||
Divestitures | ||||||||||||
Repurchase amount of outstanding principal | 425,000 | |||||||||||
Aggregate principal amount | $ 850,000 | |||||||||||
Interest rate (as a percent) | 6.75% | |||||||||||
Williston Basin Assets | Disposal Group Disposed of by Sale | 12.0% senior secured second lien notes due 2022 | ||||||||||||
Divestitures | ||||||||||||
Interest rate (as a percent) | 12.00% | |||||||||||
El Halcon Assets | ||||||||||||
Divestitures | ||||||||||||
Gain (loss) from sale of gas gathering and other operating assets | $ 0 | |||||||||||
El Halcon Assets | Disposal Group Disposed of by Sale | ||||||||||||
Divestitures | ||||||||||||
Proceeds received from sales of oil and natural gas assets | $ 491,100 | |||||||||||
Companys Existing Wholly Owned Subsidiaries Other Than HK TMS | ||||||||||||
Divestitures | ||||||||||||
Ownership percentage in subsidiaries | 100.00% | |||||||||||
Predecessor | ||||||||||||
Divestitures | ||||||||||||
Proceeds received from sales of oil and natural gas properties | $ (407) | |||||||||||
Proceeds received from sale of other operating property and equipment | $ 138 | |||||||||||
Predecessor | 12.0% senior secured second lien notes due 2022 | ||||||||||||
Divestitures | ||||||||||||
Aggregate principal amount | $ 112,800 | |||||||||||
Interest rate (as a percent) | 12.00% |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details) $ in Thousands | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 09, 2016USD ($) | Sep. 30, 2017$ / MMBTU$ / bbl | Sep. 30, 2016$ / MMBTU$ / bbl | Dec. 31, 2015$ / bbl |
Ceiling Limitation Disclosures | |||||||
First day average of the West Texas Intermediate (WTI) crude oil spot price (in dollars per barrel) | $ / bbl | 49.81 | 41.68 | |||||
First day average of the Henry Hub natural gas price (in dollars per Mmbtu) | $ / MMBTU | 3 | 2.28 | |||||
Full cost ceiling impairment | $ 420,934 | ||||||
Full cost ceiling impairment, after tax | $ 268,100 | ||||||
Predecessor | |||||||
Ceiling Limitation Disclosures | |||||||
Full cost ceiling impairment | $ 257,900 | $ 496,900 | $ 754,769 | ||||
Full cost ceiling impairment, after tax | $ 163,100 | 315,100 | |||||
Average price (in dollars per barrel) | $ / bbl | 50.28 | ||||||
Predecessor | Unevaluated Oil and Gas Leaseholds | |||||||
Oil and Natural Gas Properties | |||||||
Interest costs capitalized | $ 68,200 | ||||||
Predecessor | Tuscaloosa Marine Shale | Unevaluated Oil and Gas Leaseholds | |||||||
Oil and Natural Gas Properties | |||||||
Amount of unevaluated property costs transferred to the full cost pool | 74,800 | ||||||
Utica areas | Predecessor | Unevaluated Oil and Gas Leaseholds | |||||||
Oil and Natural Gas Properties | |||||||
Amount of unevaluated property costs transferred to the full cost pool | $ 330,400 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Oct. 10, 2017 | Mar. 20, 2017 | Feb. 16, 2017 | Sep. 30, 2017 | Sep. 07, 2017 | Jul. 10, 2017 | Dec. 31, 2016 | Sep. 09, 2016 |
Current and long-term debt | ||||||||
Current portion of long-term debt, net | $ 408,879 | |||||||
Principal amount outstanding, net | 408,879 | $ 964,653 | $ 1,016,160 | |||||
Principal amount | $ 850,000 | 812,826 | ||||||
8.625% senior secured second lien notes due 2020 | ||||||||
Current and long-term debt | ||||||||
Principal amount outstanding, net | $ 672,613 | |||||||
Interest rate (as a percent) | 8.625% | 8.625% | ||||||
Unamortized discount | $ 27,400 | |||||||
Principal amount | 700,000 | |||||||
Redemption price (as a percent) | 104.313% | |||||||
12.0% senior secured second lien notes due 2022 | ||||||||
Current and long-term debt | ||||||||
Principal amount outstanding, net | $ 106,040 | |||||||
Interest rate (as a percent) | 12.00% | 12.00% | 12.00% | |||||
Unamortized discount | $ 6,800 | |||||||
Principal amount | $ 112,800 | $ 112,826 | ||||||
6.75% senior unsecured notes due 2025 | ||||||||
Current and long-term debt | ||||||||
Principal amount outstanding, net | $ 408,879 | |||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | |||||
Outstanding 8.625% notes repurchased with proceeds from the 6.75% note offering (as a percent) | 41.00% | |||||||
Unamortized discount | $ 16,700 | |||||||
Principal amount | $ 850,000 | 850,000 | ||||||
Unamortized debt issuance costs | $ 7,800 | |||||||
Senior revolving credit facility | ||||||||
Current and long-term debt | ||||||||
Principal amount outstanding, net | $ 186,000 | |||||||
Senior Unsecured Notes Held by Certain Holders | 6.75% senior unsecured notes due 2025 | ||||||||
Current and long-term debt | ||||||||
Principal amount | $ 850,000 | |||||||
Principal amount repurchased | $ 425,000 | |||||||
Redemption price (as a percent) | 103.00% |
DEBT-Senior Facility (Details)
DEBT-Senior Facility (Details) $ in Millions | Sep. 09, 2016USD ($)item | Nov. 30, 2017USD ($) | Sep. 30, 2017USD ($) |
Current and long-term debt | |||
Letters of credit outstanding | $ 6.4 | ||
Senior revolving credit facility | |||
Current and long-term debt | |||
Current borrowing capacity | 140 | ||
Amount outstanding | 0 | ||
Senior revolving credit facility | |||
Current and long-term debt | |||
Maximum borrowing capacity | $ 1,000 | ||
Current borrowing capacity | $ 100 | ||
Number of interim unscheduled redeterminations of borrowing base to which the company and lender each have the right | item | 1 | ||
Number of consecutive semi-annual redeterminations between which the company and the lenders each have the right to one interim unscheduled redetermination of borrowing base | item | 2 | ||
Borrowing capacity available | $ 133.6 | ||
Senior revolving credit facility | Minimum | |||
Current and long-term debt | |||
Current Ratio | 1 | ||
Senior revolving credit facility | Maximum | |||
Current and long-term debt | |||
Total Net Indebtedness Leverage Ratio | 4 | ||
Senior revolving credit facility | ABR - based | Minimum | |||
Current and long-term debt | |||
Applicable margin (as a percent) | 1.25% | ||
Senior revolving credit facility | ABR - based | Maximum | |||
Current and long-term debt | |||
Applicable margin (as a percent) | 2.25% | ||
Senior revolving credit facility | LIBOR | Minimum | |||
Current and long-term debt | |||
Applicable margin (as a percent) | 2.25% | ||
Senior revolving credit facility | LIBOR | Maximum | |||
Current and long-term debt | |||
Applicable margin (as a percent) | 3.25% |
DEBT - Amended Senior Facilitie
DEBT - Amended Senior Facilities (Details) - USD ($) | Sep. 07, 2017 | Mar. 20, 2017 | Feb. 21, 2017 | Feb. 16, 2017 | Dec. 21, 2015 | May 01, 2015 | Sep. 30, 2017 | Jul. 10, 2017 | Dec. 31, 2016 | Sep. 09, 2016 |
Current and long-term debt | ||||||||||
Principal amount | $ 850,000,000 | $ 812,826,000 | ||||||||
Accrued interest expense | $ 7,377,000 | 31,146,000 | ||||||||
Irrevocably deposited with U.S. Bank National Association | $ 137,800,000 | |||||||||
8.625% senior secured second lien notes due 2020 | ||||||||||
Current and long-term debt | ||||||||||
Principal amount | $ 700,000,000 | |||||||||
Interest rate (as a percent) | 8.625% | 8.625% | ||||||||
Payment for repurchase of debt | $ 432,000,000 | $ 1,200,000 | $ 303,500,000 | |||||||
Extinguishment of debt, aggregate principal | 409,600,000 | 1,200,000 | 289,200,000 | |||||||
Make-whole premium | 17,700,000 | $ 54,000 | 13,200,000 | |||||||
Accrued interest expense | $ 4,800,000 | $ 1,100,000 | ||||||||
Redemption price of debt instrument (as a percent) | 104.313% | |||||||||
Loss on the repurchase for the tender premium paid | $ 30,900,000 | |||||||||
Loss on the write-off of the discount on notes | $ 26,000,000 | |||||||||
8.625% senior secured second lien notes due 2020 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Principal amount | $ 700,000,000 | |||||||||
Interest rate (as a percent) | 8.625% | |||||||||
Net proceeds from issuance | $ 686,200,000 | |||||||||
12.0% senior secured second lien notes due 2022 | ||||||||||
Current and long-term debt | ||||||||||
Principal amount | 112,800,000 | $ 112,826,000 | ||||||||
Interest rate (as a percent) | 12.00% | 12.00% | 12.00% | |||||||
Make-whole premium | 23,000,000 | |||||||||
Accrued interest expense | $ 2,000,000 | |||||||||
Loss on the repurchase for the tender premium paid | $ 23,000,000 | |||||||||
Loss on the write-off of the discount on notes | $ 6,200,000 | |||||||||
12.0% senior secured second lien notes due 2022 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Principal amount | $ 112,800,000 | |||||||||
Interest rate (as a percent) | 12.00% | |||||||||
Gross debt extinguished for new notes | $ 289,600,000 | |||||||||
9.75% senior notes due 2020 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Interest rate (as a percent) | 9.75% | |||||||||
8.875% senior notes due 2021 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Interest rate (as a percent) | 8.875% | |||||||||
9.25% senior notes due 2022 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Interest rate (as a percent) | 9.25% | |||||||||
Senior Unsecured Notes Held by Certain Holders | 9.75% senior notes due 2020 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Extinguishment of debt, aggregate principal | 116,600,000 | |||||||||
Senior Unsecured Notes Held by Certain Holders | 8.875% senior notes due 2021 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Extinguishment of debt, aggregate principal | 137,700,000 | |||||||||
Senior Unsecured Notes Held by Certain Holders | 9.25% senior notes due 2022 | Predecessor | ||||||||||
Current and long-term debt | ||||||||||
Extinguishment of debt, aggregate principal | $ 35,300,000 |
DEBT - Issuance of 2025 Senior
DEBT - Issuance of 2025 Senior Notes and Repurchase of 2020 Second Lien Notes (Details) - USD ($) $ in Thousands | Oct. 10, 2017 | Sep. 07, 2017 | Jul. 25, 2017 | Feb. 16, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current and long-term debt | ||||||
Aggregate principal amount | $ 850,000 | $ 812,826 | ||||
6.75% senior unsecured notes due 2025 | ||||||
Current and long-term debt | ||||||
Aggregate principal amount | $ 850,000 | $ 850,000 | ||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | |||
Net proceeds from issuance | $ 834,100 | |||||
Percentage of indenture from holders of the 2025 Notes | 99.00% | |||||
Percentage of consent fee paid | 2.00% | |||||
Consent fee paid | $ 16,900 | |||||
Unamortized discount | $ 16,700 | |||||
Debt Issuance Costs | ||||||
Gross amount of long-term debt issuance costs | $ 17,100 | |||||
6.75% senior unsecured notes due 2025 | Williston Basin Assets | ||||||
Current and long-term debt | ||||||
Redemption price (as a percent) | 103.00% | |||||
Principal amount repurchased | $ 425,000 | |||||
6.75% senior unsecured notes due 2025 | Disposal Group Disposed of by Sale | Williston Basin Assets | ||||||
Current and long-term debt | ||||||
Aggregate principal amount | $ 850,000 | |||||
Interest rate (as a percent) | 6.75% | |||||
Redemption price (as a percent) | 103.00% | |||||
Repurchase amount of outstanding principal | $ 425,000 | |||||
6.75% senior unsecured notes due 2025 | Prior to February 15, 2020 | ||||||
Current and long-term debt | ||||||
Redemption price (as a percent) | 100.00% | |||||
Maximum percentage of the aggregate principal amount of debt instruments that may be redeemed with net proceeds of certain equity offerings | 35.00% | |||||
Redemption price of notes utilizing net proceeds of certain equity offerings (as a percent) | 106.75% | |||||
Redemption price of notes for change of control (as a percent) | 101.00% | |||||
6.75% senior unsecured notes due 2025 | February 15, 2020 | ||||||
Current and long-term debt | ||||||
Redemption price (as a percent) | 105.063% | |||||
6.75% senior unsecured notes due 2025 | February 15, 2021 | ||||||
Current and long-term debt | ||||||
Redemption price (as a percent) | 103.375% | |||||
6.75% senior unsecured notes due 2025 | February 15, 2022 | ||||||
Current and long-term debt | ||||||
Redemption price (as a percent) | 101.688% | |||||
6.75% senior unsecured notes due 2025 | 2023 and thereafter | ||||||
Current and long-term debt | ||||||
Redemption price (as a percent) | 100.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Assets | ||
Asset transfers between levels | $ 0 | |
Liabilities | ||
Liability transfers between levels | 0 | |
Recurring | Total | ||
Assets | ||
Receivables from derivative contracts | 6,610 | $ 5,923 |
Liabilities | ||
Liabilities from derivative contracts | 5,454 | 16,920 |
Recurring | Level 2 | ||
Assets | ||
Receivables from derivative contracts | 6,610 | 5,923 |
Liabilities | ||
Liabilities from derivative contracts | $ 5,454 | 16,920 |
Predecessor | ||
Assets | ||
Asset transfers between levels | 0 | |
Liabilities | ||
Liability transfers between levels | $ 0 |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated FV (Details) - USD ($) $ in Thousands | 8 Months Ended | |||||||
Sep. 09, 2016 | Sep. 30, 2017 | Sep. 07, 2017 | Jul. 10, 2017 | Feb. 16, 2017 | Dec. 31, 2016 | Dec. 21, 2015 | May 01, 2015 | |
Fair value measurements | ||||||||
Principal amount | $ 850,000 | $ 812,826 | ||||||
8.625% senior secured second lien notes due 2020 | ||||||||
Fair value measurements | ||||||||
Interest rate (as a percent) | 8.625% | 8.625% | ||||||
Principal amount | $ 700,000 | |||||||
12.0% senior secured second lien notes due 2022 | ||||||||
Fair value measurements | ||||||||
Interest rate (as a percent) | 12.00% | 12.00% | 12.00% | |||||
Principal amount | $ 112,800 | $ 112,826 | ||||||
6.75% senior unsecured notes due 2025 | ||||||||
Fair value measurements | ||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | |||||
Principal amount | $ 850,000 | $ 850,000 | ||||||
Total | ||||||||
Fair value measurements | ||||||||
Estimated fair value of debt | 879,087 | $ 857,077 | ||||||
Total | 8.625% senior secured second lien notes due 2020 | ||||||||
Fair value measurements | ||||||||
Estimated fair value of debt | 733,250 | |||||||
Total | 12.0% senior secured second lien notes due 2022 | ||||||||
Fair value measurements | ||||||||
Estimated fair value of debt | $ 123,827 | |||||||
Total | 6.75% senior unsecured notes due 2025 | ||||||||
Fair value measurements | ||||||||
Estimated fair value of debt | $ 879,087 | |||||||
Predecessor | ||||||||
Fair value measurements | ||||||||
Non-cash impairment charge | $ 28,056 | |||||||
Predecessor | 8.625% senior secured second lien notes due 2020 | ||||||||
Fair value measurements | ||||||||
Interest rate (as a percent) | 8.625% | |||||||
Principal amount | $ 700,000 | |||||||
Predecessor | 12.0% senior secured second lien notes due 2022 | ||||||||
Fair value measurements | ||||||||
Interest rate (as a percent) | 12.00% | |||||||
Principal amount | $ 112,800 |
DERIVATIVE AND HEDGING ACTIVI55
DERIVATIVE AND HEDGING ACTIVITIES (Details) $ in Thousands | Sep. 30, 2017USD ($)item | Dec. 31, 2016USD ($)item |
Derivative and hedging activities | ||
Asset derivative contracts | $ 6,610 | $ 5,923 |
Liability derivative contracts | (5,454) | (16,920) |
Derivatives not designated as hedging contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 6,610 | 5,923 |
Liability derivative contracts | $ (5,454) | $ (16,920) |
Derivatives not designated as hedging contracts | Commodity contracts | ||
Derivative and hedging activities | ||
Number of open commodity derivative contracts | item | 32 | 22 |
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | $ 5,166 | $ 5,923 |
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 1,444 | |
Derivatives not designated as hedging contracts | Commodity contracts | Current liabilities - liabilities from derivative contracts | ||
Derivative and hedging activities | ||
Liability derivative contracts | (3,279) | (16,434) |
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts | ||
Derivative and hedging activities | ||
Liability derivative contracts | $ (2,175) | $ (486) |
Derivatives not designated as hedging contracts | Commodity contracts | Collars | Natural gas | ||
Derivative and hedging activities | ||
Number of open commodity derivative contracts | item | 4 | 2 |
Derivatives not designated as hedging contracts | Commodity contracts | Collars | Crude oil | ||
Derivative and hedging activities | ||
Number of open commodity derivative contracts | item | 17 | 20 |
Derivatives not designated as hedging contracts | Commodity contracts | Basis Swap | Crude oil | ||
Derivative and hedging activities | ||
Number of open commodity derivative contracts | item | 11 |
DERIVATIVE AND HEDGING ACTIVI56
DERIVATIVE AND HEDGING ACTIVITIES - Realized Unrealized (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 09, 2016 | Sep. 30, 2017 | Sep. 09, 2016 | Sep. 30, 2017 | |
Derivative and hedging activities | |||||
Total net gain (loss) on derivative contracts | $ (7,575) | $ (22,415) | $ 28,139 | ||
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense | |||||
Derivative and hedging activities | |||||
Unrealized gain (loss) on commodity contracts | (30,338) | (31,209) | 11,010 | ||
Realized gain (loss) on commodity contracts | 22,763 | 8,794 | 17,129 | ||
Total net gain (loss) on derivative contracts | $ (7,575) | $ (22,415) | $ 28,139 | ||
Predecessor | |||||
Derivative and hedging activities | |||||
Total net gain (loss) on derivative contracts | $ 17,783 | $ (17,998) | |||
Predecessor | Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense | |||||
Derivative and hedging activities | |||||
Unrealized gain (loss) on commodity contracts | (39,451) | (263,732) | |||
Realized gain (loss) on commodity contracts | 57,234 | 245,734 | |||
Total net gain (loss) on derivative contracts | $ 17,783 | $ (17,998) |
DERIVATIVE AND HEDGING ACTIVI57
DERIVATIVE AND HEDGING ACTIVITIES - Open contracts (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)MMBTU$ / MMBTU$ / bblbbl | Dec. 31, 2016USD ($)MMBTU$ / MMBTU$ / bblbbl | |
Derivative Assets | ||
Gross Amounts Presented in the Consolidated Balance Sheet | $ | $ 6,610 | $ 5,923 |
Amounts Not Offset in the Consolidated Balance Sheet | $ | (2,714) | (5,283) |
Net Amount | $ | 3,896 | 640 |
Derivative Liabilities | ||
Gross Amounts Presented in the Consolidated Balance Sheet | $ | (5,454) | (16,920) |
Amounts Not Offset in the Consolidated Balance Sheet | $ | 2,714 | 5,075 |
Net Amount | $ | $ (2,740) | $ (11,845) |
January 2017 - December 2017 | Collars | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 6,843,750 | |
January 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Minimum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 47 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 52 | |
January 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU | 60 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 76.84 | |
January 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 51.39 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 58.75 | |
January 2017 - December 2017 | Collars | Commodity contracts | Natural gas | ||
Derivative and hedging activities | ||
Volume in Mmbtu's | MMBTU | 3,650,000 | |
January 2017 - December 2017 | Collars | Commodity contracts | Natural gas | Minimum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 3.15 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 3.50 | |
January 2017 - December 2017 | Collars | Commodity contracts | Natural gas | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 3.26 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 3.76 | |
January 2017 - December 2017 | Collars | Commodity contracts | Natural gas | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU | 3.20 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | $ / MMBTU | 3.63 | |
October 2017 - December 2017 | Basis Swap | Commodity contracts | Natural gas | ||
Derivative and hedging activities | ||
Volume in Mmbtu's | MMBTU | 460,000 | |
October 2017 - December 2017 | Basis Swap | Commodity contracts | Natural gas | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU | 3.26 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | $ / MMBTU | 3.76 | |
October 2017 - December 2017 | Basis Swap | Commodity contracts | Natural gas | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU | 3.26 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | $ / MMBTU | 3.76 | |
October 2017 - December 2017 | Collars | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 437,000 | |
October 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Minimum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 51.07 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 56.07 | |
October 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 60 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 75 | |
October 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 55.64 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 63.80 | |
November 2017 - December 2017 | Collars | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 61,000 | |
November 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 51.50 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 56.50 | |
November 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 51.50 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 56.50 | |
January 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 2,555,000 | |
January 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Minimum | ||
Derivative and hedging activities | ||
Basis Differential | (1.05) | |
January 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Basis Differential | (1.50) | |
January 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Basis Differential | (1.29) | |
January 2018 - December 2018 | Collars | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 2,920,000 | 730,000 |
January 2018 - December 2018 | Collars | Commodity contracts | Crude oil | Minimum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 45 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 50 | |
January 2018 - December 2018 | Collars | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 53 | 53 |
Ceilings (in dollars per Mmbtu's/Bbl's) | 60 | 58 |
January 2018 - December 2018 | Collars | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 49.29 | 53 |
Ceilings (in dollars per Mmbtu's/Bbl's) | 56.82 | 58 |
January 2018 - December 2018 | Collars | Commodity contracts | Natural gas | ||
Derivative and hedging activities | ||
Volume in Mmbtu's | MMBTU | 2,737,500 | |
January 2018 - December 2018 | Collars | Commodity contracts | Natural gas | Minimum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 3 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 3.22 | |
January 2018 - December 2018 | Collars | Commodity contracts | Natural gas | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 3.03 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 3.38 | |
January 2018 - December 2018 | Collars | Commodity contracts | Natural gas | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 3.01 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 3.30 | |
April 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 275,000 | |
April 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Basis Differential | (1.15) | |
April 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Basis Differential | (1.15) | |
April 2018 - December 2018 | Collars | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 275,000 | |
April 2018 - December 2018 | Collars | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 46.75 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 51.75 | |
April 2018 - December 2018 | Collars | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 46.75 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 51.75 | |
July 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 1,012,000 | |
July 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Minimum | ||
Derivative and hedging activities | ||
Basis Differential | (0.98) | |
July 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Basis Differential | (1.18) | |
July 2018 - December 2018 | Basis Swap | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Basis Differential | (1.12) | |
July 2018 - December 2018 | Collars | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 184,000 | |
July 2018 - December 2018 | Collars | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 48.50 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 53.50 | |
July 2018 - December 2018 | Collars | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 48.50 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 53.50 | |
January 2019 - March 2019 | Collars | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 90,000 | |
January 2019 - March 2019 | Collars | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 46.75 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 51.75 | |
January 2019 - March 2019 | Collars | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Floors (in dollars per Mmbtu's/Bbl's) | 46.75 | |
Ceilings (in dollars per Mmbtu's/Bbl's) | 51.75 | |
January 2019 - December 2019 | Basis Swap | Commodity contracts | Crude oil | ||
Derivative and hedging activities | ||
Volume in Bbl's | bbl | 3,467,500 | |
January 2019 - December 2019 | Basis Swap | Commodity contracts | Crude oil | Minimum | ||
Derivative and hedging activities | ||
Basis Differential | (0.98) | |
January 2019 - December 2019 | Basis Swap | Commodity contracts | Crude oil | Maximum | ||
Derivative and hedging activities | ||
Basis Differential | (1.33) | |
January 2019 - December 2019 | Basis Swap | Commodity contracts | Crude oil | Weighted Average | ||
Derivative and hedging activities | ||
Basis Differential | (1.15) |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Activity related to ARO liability | |
Liability for asset retirement obligations at the beginning of the period | $ 32,375 |
Liabilities settled and divested | (31,743) |
Additions | 286 |
Acquisitions | 2,194 |
Accretion expense | 1,230 |
Revisions in estimated cash flows | 782 |
Liability for asset retirement obligations at the end of the period | $ 5,124 |
COMMITMENTS AND CONTINGENCIES59
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Jun. 15, 2017USD ($)$ / a | Sep. 30, 2016USD ($) | Sep. 09, 2016USD ($) | Sep. 30, 2017USD ($)item | Dec. 31, 2016aitem$ / a | Jun. 14, 2017$ / a |
Commitments and contingencies | ||||||
Rent expense | $ 400 | $ 3,000 | ||||
Approximate future minimum lease payments for all non-cancelable operating leases | ||||||
Remaining period in 2017 | 830 | |||||
2,018 | 3,339 | |||||
2,019 | 2,990 | |||||
2,020 | 1,811 | |||||
2,021 | 1,497 | |||||
Thereafter | 2,180 | |||||
Total | 12,647 | |||||
Obligation under contractual commitments | ||||||
Remaining period in 2017 | 2,378 | |||||
2,018 | 2,040 | |||||
Total | 4,418 | |||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Remaining period in 2017 | 966 | |||||
2,018 | 1,260 | |||||
2,020 | 3,000 | |||||
Total | 5,226 | |||||
Predecessor | ||||||
Commitments and contingencies | ||||||
Rent expense | $ 5,900 | |||||
Drilling rig commitments | ||||||
Commitments and contingencies | ||||||
Non-cancelable termination penalties | 1,700 | |||||
Approximate future minimum lease payments for all non-cancelable operating leases | ||||||
Drilling rig commitments | $ 4,400 | |||||
Gathering, transportation and sales | North Dakota and West Texas | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Number of long-term crude oil sales contracts to which the entity is committed | item | 2 | |||||
Number of long-term natural gas sales contracts to which the entity is committed | item | 4 | |||||
Gathering, transportation and sales | North Dakota and West Texas | Minimum | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Period of commitment for production from the date of first production | 1 year | |||||
Gathering, transportation and sales | North Dakota and West Texas | Maximum | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Period of commitment for production from the date of first production | 8 years | |||||
Agreement | Southern Tract | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Acreage of working interest acquired (in acres) | a | 6,720 | |||||
Agreement | Northern Tract | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Acreage of working interest acquired (in acres) | a | 8,320 | |||||
Agreement | Ward County Texas Assets | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Number of tracts | item | 2 | |||||
Price per Acre | $ / a | 11,000 | 13,000 | ||||
Agreement | Ward County Texas Assets | Maximum | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Acreage of working interest acquired (in acres) | a | 15,040 | |||||
Agreement | Ward County Texas Assets | Southern Tract | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Required contingent payment | $ 5,000 | |||||
Price per Acre | $ / a | 13,000 | |||||
Agreement | Ward County Texas Assets | Northern Tract | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Price per Acre | $ / a | 13,000 | |||||
Agreement | Ward County Texas Assets | Drilling rig commitments | Northern Tract | ||||||
Other contractual commitments for, among other things, stacking charges on certain drilling rig commitments | ||||||
Required contingent payment | $ 5,000 |
STOCKHOLDERS EQUITY - Private P
STOCKHOLDERS EQUITY - Private Placement of Automatically Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2017 | Feb. 27, 2017 | Jan. 24, 2017 | Sep. 09, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Mar. 16, 2017 | Dec. 31, 2016 |
Stockholders' equity | |||||||||
Par value of common stock (in dollars per share) | $ 0.0001 | $ 0.0001 | |||||||
Gross proceeds from preferred stock offering | $ 400,055 | ||||||||
Offering costs including placement agent fees | 11,919 | ||||||||
8% Convertible Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Shares issued | 5,518 | ||||||||
Dividend rate (as a percent) | 8.00% | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||||||||
Proceeds from issuance of convertible preferred stock per share | $ 72,500 | ||||||||
Number of shares of common stock to be issued upon conversion | 10,000 | ||||||||
Par value of common stock (in dollars per share) | $ 0.0001 | ||||||||
Gross proceeds from preferred stock offering | $ 400,100 | ||||||||
Conversion price (in dollars per share) | $ 0.87 | ||||||||
Share price (in dollars per share) | $ 7.25 | $ 8.12 | |||||||
Preferred dividend | $ 0 | ||||||||
Offering costs including placement agent fees | $ 11,900 | ||||||||
Beneficial conversion proceeds | $ 48,000 | ||||||||
Discount amortization period | 65 months | ||||||||
Amortization of beneficial conversion discount | $ 47,200 | $ 800 | |||||||
Preferred Stock | |||||||||
Stockholders' equity | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | ||||||||
Common Stock | |||||||||
Stockholders' equity | |||||||||
Shares issued | 55,200,000 | 90,000,000 | |||||||
Par value of common stock (in dollars per share) | $ 0.0001 |
STOCKHOLDERS' EQUITY-Common sto
STOCKHOLDERS' EQUITY-Common stock and warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2017 | Sep. 09, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Stockholders' equity | ||||
Authorized shares of capital stock, after amendment of certificate of incorporation | 1,001,000,000 | |||
Authorized shares of common stock, after amendment of certificate of incorporation | 1,000,000,000 | 1,000,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Additional paid-in capital | $ 571,114 | $ 1,013,141 | $ 592,663 | |
8.0% convertible note due 2020 | ||||
Stockholders' equity | ||||
Number of warrants issued | 900,000 | |||
Senior Unsecured Notes Held by Certain Holders | ||||
Stockholders' equity | ||||
Number of warrants issued | 3,800,000 | |||
Warrants Issued to Former Holders of Unsecured and Convertible Notes | ||||
Stockholders' equity | ||||
Number of warrants issued | 4,700,000 | |||
Exercise price (in dollars per share) | $ 14.04 | |||
Additional paid-in capital | $ 16,700 | |||
Preferred stock | ||||
Stockholders' equity | ||||
Authorized shares of preferred stock, after amendment of certificate of incorporation | 1,000,000 | |||
Common Stock | ||||
Stockholders' equity | ||||
Shares issued | 55,200,000 | 90,000,000 | ||
Authorized shares of common stock, after amendment of certificate of incorporation | 1,000,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.0001 | |||
Series A Preferred Stock | ||||
Stockholders' equity | ||||
Preferred stock, shares outstanding | 0 | |||
Predecessor | ||||
Stockholders' equity | ||||
Dividend rate (as a percent) | 5.75% | |||
Additional paid-in capital | $ 3,287,906 | |||
Predecessor | Series A Preferred Stock | ||||
Stockholders' equity | ||||
Dividend rate (as a percent) | 5.75% |
STOCKHOLDERS' EQUITY - Options
STOCKHOLDERS' EQUITY - Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Apr. 06, 2017 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 09, 2016 | Sep. 30, 2017 | Sep. 09, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
General and administrative | ||||||||
Stock-based compensation | ||||||||
Compensation expense recorded | $ 13.2 | $ 12.3 | $ 33.5 | |||||
Stock options | Employee | ||||||||
Stock-based compensation | ||||||||
Percentage of awards other than options vesting on the annual anniversary date of the grant | 33.33% | |||||||
Vesting period | 3 years | |||||||
Expiration term | 10 years | |||||||
Restricted Stock | Non-employee director | ||||||||
Stock-based compensation | ||||||||
Vesting period | 6 months | |||||||
Predecessor | General and administrative | ||||||||
Stock-based compensation | ||||||||
Compensation expense recorded | $ 1.2 | $ 4.9 | ||||||
2016 Incentive Plan | Common Stock | ||||||||
Stock-based compensation | ||||||||
Aggregate number of shares available | 19 | 10 | 10 | |||||
Maximum number of shares that remained reserved for issuance under the Plan | 7.3 | 7.3 | 1.7 | |||||
Increase in shares available for issuance | 9 | |||||||
Number of calculation days for which shares will be available for issuance. | 20 days | |||||||
2016 Incentive Plan | Stock options | ||||||||
Stock-based compensation | ||||||||
Unrecognized compensation expense | $ 17.3 | $ 17.3 | ||||||
Weighted average remaining vesting period | 1 year 10 months 24 days | 1 year 6 months | ||||||
Restricted stock | ||||||||
Unrecognized compensation expense stock option | $ 29.8 | $ 29.8 | ||||||
2016 Incentive Plan | Stock options | Employee | ||||||||
Stock-based compensation | ||||||||
Exercise price (in dollars per share) | $ 9.24 | |||||||
Number of Shares | ||||||||
Granted (in shares) | 5 | 1.8 | ||||||
Weighted Average Exercise Price Per Share | ||||||||
Granted (in dollars per share) | $ 9.24 | $ 7.72 | ||||||
2016 Incentive Plan | Stock options | Minimum | Employee | ||||||||
Stock-based compensation | ||||||||
Exercise price (in dollars per share) | 6.55 | |||||||
2016 Incentive Plan | Stock options | Maximum | Employee | ||||||||
Stock-based compensation | ||||||||
Exercise price (in dollars per share) | $ 7.75 | |||||||
2016 Incentive Plan | Restricted Stock | ||||||||
Stock-based compensation | ||||||||
Weighted average remaining vesting period | 10 months 24 days | 1 year 3 months 18 days | ||||||
Weighted average grant date price (in dollars per share) | $ 9.17 | $ 9.17 | $ 7.07 | $ 7.07 | ||||
Unrecognized compensation expense other than options | $ 12 | $ 12 | $ 5.7 | $ 5.7 | ||||
Number of Shares | ||||||||
Granted (in shares) | 2.6 | 2 | ||||||
2016 Incentive Plan | Restricted Stock | Employee | ||||||||
Stock-based compensation | ||||||||
Percentage of awards other than options vesting on the annual anniversary date of the grant | 33.33% | |||||||
Vesting period | 3 years | |||||||
2016 Incentive Plan | Restricted Stock | Minimum | ||||||||
Stock-based compensation | ||||||||
Grant date price (in dollars per share) | $ 7.82 | $ 7.82 | $ 6.08 | $ 6.08 | ||||
2016 Incentive Plan | Restricted Stock | Maximum | ||||||||
Stock-based compensation | ||||||||
Grant date price (in dollars per share) | $ 9.24 | $ 9.24 | $ 7.75 | $ 7.75 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 09, 2016 | Sep. 30, 2017 | Sep. 09, 2016 | Sep. 30, 2017 | |
Basic: | |||||
Net income (loss) available to common stockholders | $ (451,483) | $ 419,287 | $ 580,809 | ||
Weighted average basic number of common shares outstanding | 91,071 | 146,944 | 127,458 | ||
Basic net income (loss) per share of common share (in dollars per share) | $ (4.96) | $ 2.85 | $ 4.56 | ||
Diluted: | |||||
Net income (loss) available to common stockholders | $ (451,483) | $ 419,287 | $ 580,809 | ||
Net income (loss) available to common stockholders after assumed conversions | $ (451,483) | $ 419,287 | |||
Weighted average basic number of common shares outstanding | 91,071 | 146,944 | 127,458 | ||
Common stock equivalent shares representing shares included upon Vesting of restricted shares | 1,546 | 952 | |||
Weighted average diluted number of common shares outstanding | 91,071 | 148,490 | 128,410 | ||
Diluted net income (loss) per share of common stock (in dollars per share) | $ (4.96) | $ 2.82 | $ 4.52 | ||
Common stock equivalents of stock options, warrants, restricted shares, convertible debt and preferred stock, not included in the computations of diluted earnings per share of common stock as their effect would have been anti-dilutive (in shares) | 11,100 | 11,700 | 19,000 | ||
Predecessor | |||||
Basic: | |||||
Net income (loss) available to common stockholders | $ (451,483) | $ 916,421 | $ (32,794) | ||
Weighted average basic number of common shares outstanding | 91,071 | 120,905 | 120,513 | ||
Basic net income (loss) per share of common share (in dollars per share) | $ (4.96) | $ 7.58 | $ (0.27) | ||
Diluted: | |||||
Net income (loss) available to common stockholders | $ (451,483) | $ 916,421 | $ (32,794) | ||
Interest on Convertible Note, net | 1,522 | ||||
Series A preferred dividends | 2,451 | $ 8,847 | |||
Net income (loss) available to common stockholders after assumed conversions | $ 920,394 | ||||
Weighted average basic number of common shares outstanding | 91,071 | 120,905 | 120,513 | ||
Common stock equivalent shares representing shares issuable upon Conversion of Convertible Note | 23,743 | ||||
Weighted average diluted number of common shares outstanding | 91,071 | 151,876 | 120,513 | ||
Diluted net income (loss) per share of common stock (in dollars per share) | $ (4.96) | $ 6.06 | $ (0.27) | ||
Common stock equivalents of stock options, warrants, restricted shares, convertible debt and preferred stock, not included in the computations of diluted earnings per share of common stock as their effect would have been anti-dilutive (in shares) | 11,900 | 43,600 | |||
Series A Preferred Stock | Predecessor | |||||
Diluted: | |||||
Common stock equivalent shares representing shares included upon Conversion of preferred stock | 7,228 |
ADDITIONAL FINANCIAL STATEMEN64
ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 09, 2016 |
Accounts receivable: | |||
Oil, natural gas and natural gas liquids revenues | $ 74,645 | $ 86,433 | |
Joint interest accounts | 27,637 | 39,828 | |
Accrued settlements on derivative contracts | 673 | 18,599 | |
Affiliated partnership | 11 | 268 | |
Other | 5,787 | 2,634 | |
Total | 108,753 | 147,762 | $ 116,859 |
Prepaids and other: | |||
Prepaids | 5,856 | 6,704 | |
Income tax receivable | 6,250 | ||
Other | 65 | 236 | |
Total | 12,171 | 6,940 | 7,629 |
Funds in escrow and other: | |||
Funds in escrow | 562 | 561 | |
Debt issuance costs | 479 | ||
Other | 1,367 | 1,326 | |
Total | 2,408 | 1,887 | 1,637 |
Accounts payable and accrued liabilities: | |||
Trade payables | 32,911 | 24,364 | |
Accrued oil and natural gas capital costs | 64,427 | 32,967 | |
Revenues and royalties payable | 47,926 | 79,147 | |
Accrued interest expense | 7,377 | 31,146 | |
Accrued employee compensation | 8,158 | 3,428 | |
Accrued lease operating expenses | 8,924 | 14,077 | |
Drilling advances from partners | 922 | 422 | |
Income tax payable | 250 | ||
Affiliated partnership | 22 | 323 | |
Other | 1,345 | 60 | |
Total | $ 172,012 | $ 186,184 | $ 173,688 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | Sep. 19, 2017 | Jul. 10, 2017 | Nov. 09, 2017 | Nov. 08, 2017 | Sep. 30, 2017 |
Senior revolving credit facility | |||||
Subsequent event | |||||
Current borrowing capacity | $ 140 | ||||
Senior revolving credit facility | Subsequent events | |||||
Subsequent event | |||||
Current borrowing capacity | $ 100 | $ 140 | |||
Williston Basin Assets | Disposal Group Disposed of by Sale | |||||
Subsequent event | |||||
Proceeds received from sales of oil and natural gas assets | $ 105.2 | $ 1,400 |