Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | Battalion Oil Corp | |
Entity Central Index Key | 0001282648 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Amendment Flag | false | |
Trading Symbol | BATL | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,337,910 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-0700684 | |
Entity Address, Address Line One | 3505 West Sam Houston Parkway North | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77043 | |
City Area Code | 832 | |
Local Phone Number | 538-0300 | |
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Security Exchange Name | NYSEAMER | |
Entity File Number | 001-35467 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Oil, natural gas and natural gas liquids sales: | ||||
Total oil, natural gas and natural gas liquids sales | $ 101,290 | $ 64,103 | $ 182,698 | $ 119,369 |
Other | 221 | 263 | 415 | 515 |
Total operating revenues | 101,511 | 64,366 | 183,113 | 119,884 |
Production: | ||||
Lease operating | 11,909 | 10,169 | 23,433 | 19,636 |
Workover and other | 1,383 | 767 | 2,248 | 1,327 |
Taxes other than income | 5,372 | 2,912 | 10,323 | 6,104 |
Gathering and other | 15,869 | 14,331 | 31,124 | 27,502 |
General and administrative | 4,588 | 4,031 | 9,573 | 8,858 |
Depletion, depreciation and accretion | 12,601 | 11,249 | 22,821 | 21,844 |
Total operating expenses | 51,722 | 43,459 | 99,522 | 85,271 |
Income (loss) from operations | 49,789 | 20,907 | 83,591 | 34,613 |
Other income (expenses): | ||||
Net gain (loss) on derivative contracts | (31,910) | (53,089) | (155,768) | (98,800) |
Interest expense and other | (4,832) | (1,747) | (7,520) | (3,117) |
Total other income (expenses) | (36,742) | (54,836) | (163,288) | (101,917) |
Income (loss) before income taxes | 13,047 | (33,929) | (79,697) | (67,304) |
Income tax benefit (provision) | ||||
Net income (loss) | $ 13,047 | $ (33,929) | $ (79,697) | $ (67,304) |
Net income (loss) per share of common stock: | ||||
Basic (in dollars per share) | $ 0.80 | $ (2.09) | $ (4.88) | $ (4.14) |
Diluted (in dollars per share) | $ 0.79 | $ (2.09) | $ (4.88) | $ (4.14) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 16,338 | 16,268 | 16,320 | 16,250 |
Diluted (in shares) | 16,510 | 16,268 | 16,320 | 16,250 |
Oil | ||||
Oil, natural gas and natural gas liquids sales: | ||||
Total oil, natural gas and natural gas liquids sales | $ 73,944 | $ 51,935 | $ 136,468 | $ 93,205 |
Natural gas | ||||
Oil, natural gas and natural gas liquids sales: | ||||
Total oil, natural gas and natural gas liquids sales | 14,759 | 5,317 | 23,640 | 14,404 |
NGLs | ||||
Oil, natural gas and natural gas liquids sales: | ||||
Total oil, natural gas and natural gas liquids sales | $ 12,587 | $ 6,851 | $ 22,590 | $ 11,760 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 43,640 | $ 46,864 |
Accounts receivable, net | 53,002 | 36,806 |
Assets from derivative contracts | 6,146 | 1,383 |
Restricted cash | 135 | 1,495 |
Prepaids and other | 927 | 1,366 |
Total current assets | 103,850 | 87,914 |
Oil and natural gas properties (full cost method): | ||
Evaluated | 632,004 | 569,886 |
Unevaluated | 64,760 | 64,305 |
Gross oil and natural gas properties | 696,764 | 634,191 |
Less - accumulated depletion | (362,257) | (339,776) |
Net oil and natural gas properties | 334,507 | 294,415 |
Other operating property and equipment: | ||
Other operating property and equipment | 4,045 | 3,467 |
Less - accumulated depreciation | (1,027) | (1,035) |
Net other operating property and equipment | 3,018 | 2,432 |
Other noncurrent assets: | ||
Assets from derivative contracts | 3,972 | 2,515 |
Operating lease right of use assets | 539 | 721 |
Other assets | 3,329 | 2,270 |
Total assets | 449,215 | 390,267 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 97,334 | 62,826 |
Liabilities from derivative contracts | 91,750 | 58,322 |
Current portion of long-term debt | 15,000 | 85 |
Operating lease liabilities | 377 | 369 |
Asset retirement obligations | 401 | |
Total current liabilities | 204,862 | 121,602 |
Long-term debt, net | 188,372 | 181,565 |
Other noncurrent liabilities: | ||
Liabilities from derivative contracts | 58,138 | 7,144 |
Asset retirement obligations | 11,686 | 11,896 |
Operating lease liabilities | 162 | 352 |
Other | 1,408 | 4,003 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Common stock: 100,000,000 shares of $0.0001 par value authorized; 16,337,910 and 16,273,913 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 2 | 2 |
Additional paid-in capital | 332,766 | 332,187 |
Retained earnings (accumulated deficit) | (348,181) | (268,484) |
Total stockholders' equity | (15,413) | 63,705 |
Total liabilities and stockholders' equity | $ 449,215 | $ 390,267 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Stockholders' equity: | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 16,337,910 | 16,273,913 |
Common stock, shares outstanding | 16,337,910 | 16,273,913 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Total |
Balances at Dec. 31, 2020 | $ 2 | $ 330,123 | $ (240,167) | $ 89,958 |
Balances (in shares) at Dec. 31, 2020 | 16,204 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | (33,375) | (33,375) | ||
Reduction in shares to cover individuals' tax withholding | (264) | (264) | ||
Reduction in shares to cover individuals' tax withholding (in shares) | (24) | |||
Stock-based compensation | 692 | 692 | ||
Balances at Mar. 31, 2021 | $ 2 | 330,551 | (273,542) | 57,011 |
Balances (in shares) at Mar. 31, 2021 | 16,267 | |||
Balances at Dec. 31, 2020 | $ 2 | 330,123 | (240,167) | 89,958 |
Balances (in shares) at Dec. 31, 2020 | 16,204 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | (67,304) | |||
Long-term incentive plan vestings (in shares) | 87 | |||
Balances at Jun. 30, 2021 | $ 2 | 331,117 | (307,471) | 23,648 |
Balances (in shares) at Jun. 30, 2021 | 16,268 | |||
Balances at Mar. 31, 2021 | $ 2 | 330,551 | (273,542) | 57,011 |
Balances (in shares) at Mar. 31, 2021 | 16,267 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | (33,929) | (33,929) | ||
Long-term incentive plan vestings (in shares) | 1 | |||
Reduction in shares to cover individuals' tax withholding | (5) | (5) | ||
Stock-based compensation | 571 | 571 | ||
Balances at Jun. 30, 2021 | $ 2 | 331,117 | (307,471) | 23,648 |
Balances (in shares) at Jun. 30, 2021 | 16,268 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | 13,052 | 13,052 | ||
Long-term incentive plan vestings (in shares) | 8 | |||
Reduction in shares to cover individuals' tax withholding | (22) | (22) | ||
Reduction in shares to cover individuals' tax withholding (in shares) | (2) | |||
Stock-based compensation | 565 | 565 | ||
Balances at Sep. 30, 2021 | $ 2 | 331,660 | (294,419) | 37,243 |
Balances (in shares) at Sep. 30, 2021 | 16,274 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | 25,935 | 25,935 | ||
Stock-based compensation | 527 | 527 | ||
Balances at Dec. 31, 2021 | $ 2 | 332,187 | (268,484) | 63,705 |
Balances (in shares) at Dec. 31, 2021 | 16,274 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | (92,744) | (92,744) | ||
Reduction in shares to cover individuals' tax withholding | (461) | (461) | ||
Reduction in shares to cover individuals' tax withholding (in shares) | (26) | |||
Stock-based compensation | 452 | 452 | ||
Balances at Mar. 31, 2022 | $ 2 | 332,178 | (361,228) | (29,048) |
Balances (in shares) at Mar. 31, 2022 | 16,337 | |||
Balances at Dec. 31, 2021 | $ 2 | 332,187 | (268,484) | 63,705 |
Balances (in shares) at Dec. 31, 2021 | 16,274 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | (79,697) | |||
Long-term incentive plan vestings (in shares) | 89 | |||
Balances at Jun. 30, 2022 | $ 2 | 332,766 | (348,181) | (15,413) |
Balances (in shares) at Jun. 30, 2022 | 16,338 | |||
Balances at Mar. 31, 2022 | $ 2 | 332,178 | (361,228) | (29,048) |
Balances (in shares) at Mar. 31, 2022 | 16,337 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income (loss) | 13,047 | 13,047 | ||
Long-term incentive plan vestings (in shares) | 1 | |||
Reduction in shares to cover individuals' tax withholding | (6) | (6) | ||
Stock-based compensation | 594 | 594 | ||
Balances at Jun. 30, 2022 | $ 2 | $ 332,766 | $ (348,181) | $ (15,413) |
Balances (in shares) at Jun. 30, 2022 | 16,338 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (79,697) | $ (67,304) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depletion, depreciation and accretion | 22,821 | 21,844 |
Stock-based compensation, net | 857 | 1,079 |
Unrealized loss (gain) on derivative contracts | 78,201 | 70,869 |
Amortization of deferred loan costs | 1,807 | |
(Gain) loss on sale of other assets | (96) | |
Reorganization items, net | (744) | |
Accrued settlements on derivative contracts | 14,652 | 6,972 |
Change in fair value of Change of Control Call Option | (2,595) | |
Other income (expense) | (287) | |
Change in assets and liabilities: | ||
Accounts receivable | (12,596) | (5,488) |
Prepaids and other | 438 | (441) |
Accounts payable and accrued liabilities | 5,285 | 1,856 |
Net cash provided by (used in) operating activities | 28,333 | 29,100 |
Cash flows from investing activities: | ||
Oil and natural gas capital expenditures | (51,377) | (37,593) |
Proceeds received from sale of oil and natural gas properties | 926 | |
Other operating property and equipment capital expenditures | (705) | |
Proceeds received from sale of other operating property and equipment | 96 | |
Funds held in escrow and other | (2) | |
Net cash provided by (used in) investing activities | (51,986) | (36,669) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 20,000 | 82,000 |
Repayments of borrowings | (85) | (77,000) |
Debt issuance costs | (379) | |
Other | (467) | (268) |
Net cash provided by (used in) financing activities | 19,069 | 4,732 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,584) | (2,837) |
Cash, cash equivalents and restricted cash at beginning of period | 48,359 | 4,295 |
Cash, cash equivalents and restricted cash at end of period | 43,775 | $ 1,458 |
Supplemental cash flow information: | ||
Cash paid for reorganization items | $ 744 |
FINANCIAL STATEMENT PRESENTATIO
FINANCIAL STATEMENT PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
FINANCIAL STATEMENT PRESENTATION | |
FINANCIAL STATEMENT PRESENTATION | 1. FINANCIAL STATEMENT PRESENTATION Basis of Presentation and Principles of Consolidation Battalion 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 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. 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. 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. During interim periods, Battalion 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 7, 2022. Please refer to the notes in the Annual Report on Form 10- K for the year ended December 31, 2021 when reviewing interim financial results. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. Risk and Uncertainties The Company is continuously monitoring the current and potential impacts of the novel coronavirus (COVID-19) pandemic on its business, including how it has and may continue to impact its operations, financial results, liquidity, contractors, customers, employees and vendors, and taking appropriate actions in response, including implementing various measures to ensure the continued operation of its business in a safe and secure manner. During 2021, widespread availability of COVID-19 vaccines in the United States and elsewhere combined with accommodative governmental monetary and fiscal policies and other factors, led to a rebound in demand for oil and natural gas and increases in oil and natural gas prices. Further, in 2022, the effects of Russian sanctions amidst the conflict with Ukraine have pushed oil and gas prices higher. However, there remains the potential for demand for oil and natural gas to be adversely impacted by the economic effects of rising interest rates and tightening monetary policies, as well as the ongoing COVID-19 pandemic, including as a consequence of the circulation of more infectious “variants” of the disease, vaccine hesitancy, waning vaccine effectiveness or other factors. As a consequence, the Company is unable to predict whether oil and natural gas prices will remain at current levels or will be adversely impacted by these or other factors. The results presented in this Form 10-Q are not necessarily indicative of future operating results. Additionally, in periods of increasing commodity prices, the Company continues to be at risk to supply chain issues, including, but not limited to, labor shortages, pipe restrictions and potential delays in obtaining frac and/or drilling related equipment that could impact our business . During these periods, the costs and delivery times of rigs, equipment and supplies may also be substantially greater. The unavailability or high cost of drilling rigs and/or frac crews, pressure pumping equipment, tubulars and other supplies, and of qualified personnel can materially and adversely affect our operations and profitability. For further information regarding the actual and potential impacts of COVID-19 and supply chain issues on the Company, see “Risk Factors” 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, and fair value estimates. 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. Cash, Cash Equivalents and Restricted Cash “Cash and cash equivalents” “Restricted cash” June 30, 2022 December 31, 2021 Cash and cash equivalents $ 43,640 $ 46,864 Restricted cash 135 1,495 Total cash, cash equivalents and restricted cash $ 43,775 $ 48,359 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. As of June 30, 2022 and December 31, 2021, allowances for doubtful accounts were approximately $0.2 million for both periods. Concentrations of Credit Risk The Company’s primary concentrations of credit risk are the risks of uncollectible accounts receivable and of nonperformance by counterparties under the Company’s derivative contracts. Each reporting period, the Company assesses the recoverability of material receivables using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions to determine expected collectability of its material receivables. The Company’s exposure to credit risk under its derivative contracts is varied among major financial institutions with investment grade credit ratings, where it has master netting agreements which provide for offsetting of amounts payable or receivable between the Company and the counterparty. To manage counterparty risk associated with derivative contracts, the Company selects and monitors counterparties based on an assessment of their financial strength and/or credit ratings. At June 30, 2022, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Term Loan Agreement. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
LEASES | 2. LEASES “Operating lease right of use assets” “Operating lease liabilities” “Gathering and other” “General and administrative” “Operating lease right of use assets” Six Months Ended June 30, 2022 2021 Lease cost Operating lease costs $ 196 $ 235 Short-term lease costs 4,003 1,889 Variable lease costs — 229 Total lease costs $ 4,199 $ 2,353 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 196 $ 328 Weighted-average remaining lease term - operating leases 1.4 years 0.2 years Weighted-average discount rate - operating leases 4.29 % 3.70 % June 30, 2022 Remaining period in 2022 $ 196 2023 359 2024 — 2025 — 2026 — Thereafter — Total operating lease payments 555 Less: discount to present value 16 Total operating lease liabilities 539 Less: current operating lease liabilities 377 Noncurrent operating lease liabilities $ 162 |
OPERATING REVENUES
OPERATING REVENUES | 6 Months Ended |
Jun. 30, 2022 | |
OPERATING REVENUES | |
OPERATING REVENUES | 3. OPERATING REVENUES Substantially all of the Company’s revenues are derived from single basin operations, the Delaware Basin in Pecos, Reeves, Ward and Winkler Counties, Texas. Revenue is presented disaggregated in the statement of operations by major product, and depicts how the nature, timing, and uncertainty of revenue and cash flows are affected by economic factors in the Company’s single basin operations. Revenue is recognized when the following five steps are completed: (1) identify the contract with the customer, (2) identify the performance obligation (promise) in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, (5) recognize revenue when the reporting organization satisfies a performance obligation. Revenues from the sale of crude oil, natural gas and natural gas liquids are recognized, at a point in time, when a performance obligation is satisfied by the transfer of control of the commodity to the customer. Revenue is measured based on consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Because the Company’s performance obligations have been satisfied and an unconditional right to consideration exists as of the balance sheet date, the Company recognized amounts due from contracts with customers of $ “Accounts receivable” “Other assets” |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 6 Months Ended |
Jun. 30, 2022 | |
OIL AND NATURAL GAS PROPERTIES | |
OIL AND NATURAL GAS PROPERTIES | 4. 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, treating equipment and gathering support facilities costs, 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. 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. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2022 | |
DEBT | |
DEBT | 5. DEBT As of June 30, 2022 and December 31, 2021, the Company’s debt consisted of the following (in thousands): June 30, 2022 December 31, 2021 Term loan credit facility (1) $ 203,372 $ 181,565 Paycheck Protection Program loan — 85 Total debt, net 203,372 181,650 Current portion of long-term debt (2) 15,000 85 Total long-term debt, net $ 188,372 $ 181,565 (1) Amount is net of $12.4 million and $14.2 million in unamortized debt issuance costs at June 30, 2022 and December 31, 2021, respectively. Amount also excludes the initial fair value allocated to the change of control call option embedded derivative of $4.2 million. Refer to “Term Loan Credit Facility” below for further details . (2) As of June 30, 2022, amount represents amortization payments of $15.0 million under the Term Loan Agreement due within one year. As of December 31, 2021, amount represents the balance owed under the Company’s Paycheck Protection Program Loan. Term Loan Credit Facility At June 30, 2022, the Company had $220.0 million indebtedness outstanding and approximately $1.3 million letters of credit outstanding under the Term Loan Agreement. The Company also has available $15.0 million in delayed draw term loans, subject to the satisfaction of certain conditions defined in the agreement. Period Premium Months 0 - 12 Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 2.00% Months 25 - 36 1.00% Months 37 - 48 0.00% The Company is required to make scheduled amortization payments in the aggregate amount of $120.0 million from the fiscal quarter ending March 31, 2023 through the fiscal quarter ending September 30, 2025. Amounts outstanding under the Term Loan Agreement are guaranteed by certain of the Borrower’s direct and indirect subsidiaries and secured by substantially all of the assets of the Borrower and such direct and indirect subsidiaries, and by the equity interests of the Borrower held by the Company. As part of the Term Loan Agreement there are certain restrictions on the transfer of assets, including cash, to Battalion from the guarantor subsidiaries. ● Asset Coverage Ratio of not less than 1.60 to 1.00 as of June 30, 2022, 1.70 to 1.00 as of September 30, 2022, and 1.80 to 1.00 as of December 31, 2022 and each fiscal quarter thereafter ● Total Net Leverage Ratio of not greater than 3.25 to 1.00 as of June 30, 2022, 3.00 to 1.00 as of September 30, 2022 and December 31, 2022, 2.75 to 1.00 as of March 31, 2023, and 2.50 to 1.00 as of each fiscal quarter thereafter, and ● Current Ratio of not less than 1.00 to 1.00 , each determined as of the last day of any fiscal quarter period. The Term Loan 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. “Other noncurrent liabilities.” “Interest expense and other” Fair Value Measurements Paycheck Protection Program Loan “Gain (loss) on extinguishment of debt” in the consolidated statements of operations during the quarter ended September 30, 2021. During the first quarter of 2022, the |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 6. FAIR VALUE MEASUREMENTS 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. Fair value is defined 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). The Company separates the fair value of its financial instruments using 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. 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 June 30, 2022 Level 1 Level 2 Level 3 Total Assets Assets from commodity-based derivative contracts $ — $ 10,118 $ — $ 10,118 Liabilities Liabilities from commodity-based derivative contracts $ — $ 149,888 $ — $ 149,888 December 31, 2021 Level 1 Level 2 Level 3 Total Assets Assets from commodity-based derivative contracts $ — $ 3,898 $ — $ 3,898 Liabilities Liabilities from commodity-based derivative contracts $ — $ 65,466 $ — $ 65,466 Derivative contracts listed above as Level 2 include fixed-price swaps, collars, basis swaps and WTI NYMEX rolls 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” “Derivative and Hedging Activities,” 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. As discussed in Note 5, “Debt,” “Other noncurrent liabilities.” “Interest expense and other” Change of Control Call Option Balance at December 31, 2021 $ 4,003 Change in fair value (2,595) Balance at June 30, 2022 $ 1,408 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, cash equivalents and restricted cash, accounts receivable, and accounts payable approximates their carrying value due to their short- term nature. The estimated fair value of borrrowings under the Company’s Term Loan Agreement approximates carrying value because the interest rates approximate current market rates. 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; and therefore, the Company has designated these liabilities as Level 3. See Note 8, “Asset Retirement Obligations,” |
DERIVATIVE AND HEDGING ACTIVITI
DERIVATIVE AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2022 | |
DERIVATIVE AND HEDGING ACTIVITIES | |
DERIVATIVE AND HEDGING ACTIVITIES | 7. DERIVATIVE AND HEDGING ACTIVITIES The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk and interest rate risk. In accordance with the Company’s policy and the requirements under the Term Loan Agreement, 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 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 all payments and receipts on settled derivative contracts, in “Net gain (loss) on derivative contracts” significantly as its operational profile changes. 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 or commodity hedging institutions deemed by management as competent and competitive market makers. As of June 30, 2022, the Company did not post collateral under any of its derivative contracts as they are secured under the Company’s Term Loan Agreement. The Company’s crude oil, and natural gas derivative positions at any point in time may consist of fixed-price swaps, costless put/call collars, basis swaps and WTI NYMEX rolls further described as follows: ● Fixed-price swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for crude oil and natural gas. ● Costless collars consist 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 and are generally utilized less frequently by the Company than fixed-price swaps. ● Basis swaps effectively lock in a price differential between regional prices (i.e. Midland) where the product is sold and the relevant pricing index under which the oil production is hedged (i.e. Cushing). ● WTI NYMEX roll agreements account for pricing adjustments to the trade month versus the delivery month for contract pricing. The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 (in thousands): Derivatives not designated as Asset derivative contracts Liability derivative contracts hedging contracts under ASC 815 Balance sheet location June 30, 2022 December 31, 2021 Balance sheet location June 30, 2022 December 31, 2021 Commodity contracts Current assets - assets from derivative contracts $ 6,146 $ 1,383 Current liabilities - liabilities from derivative contracts $ (91,750) $ (58,322) Commodity contracts Other noncurrent assets - assets from derivative contracts 3,972 2,515 Other noncurrent liabilities - liabilities from derivative contracts (58,138) (7,144) Total derivatives not designated as hedging contracts under ASC 815 $ 10,118 $ 3,898 $ (149,888) $ (65,466) 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) Amount of gain or (loss) recognized in income on recognized in income on derivative contracts for the derivative contracts for the Derivatives not designated Location of gain or Three Months Ended Six Months Ended as hedging contracts (loss) recognized in income June 30, June 30, under ASC 815 on derivative contracts 2022 2021 2022 2021 Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses) - net gain (loss) on derivative contracts $ 12,837 $ (34,817) $ (78,201) $ (70,869) Realized gain (loss) on commodity contracts Other income (expenses) - net gain (loss) on derivative contracts (44,747) (18,272) (77,567) (27,931) Total net gain (loss) on derivative contracts $ (31,910) $ (53,089) $ (155,768) $ (98,800) At June 30, 2022, the Company had the following open crude oil and natural gas derivative contracts: Instrument 2022 2023 2024 2025 2026 Crude oil fixed-price swap: Total volumes (Bbls) 1,240,865 2,000,965 1,449,140 1,028,160 212,810 Weighted average price $ 52.80 65.75 60.91 59.69 59.83 Crude oil basis swap: Total volumes (Bbls) 1,222,565 1,937,165 1,413,120 1,000,360 212,810 Weighted average price $ 0.41 0.25 0.23 0.17 0.19 Crude oil WTI NYMEX roll: Total volumes (Bbls) 1,005,565 1,937,165 1,413,120 1,000,360 212,810 Weighted average price $ 0.10 0.50 0.28 0.10 0.27 Natural gas fixed-price swap: Total volumes (MMBtu) 1,167,500 3,957,750 2,658,750 2,428,050 Weighted average price $ 3.92 3.36 3.09 3.00 Natural gas producer two-way collar: Total volumes (MMBtu) 2,473,400 1,742,100 1,424,100 555,700 653,900 Weighted average price (call) $ 3.97 5.52 4.70 4.24 4.45 Weighted average price (put) $ 3.48 3.86 3.19 3.28 4.00 Natural gas basis swap: Total volumes (MMBtu) 3,640,900 5,700,600 4,084,350 2,983,750 653,900 Weighted average price $ (0.51) (0.64) (0.64) (0.56) (0.96) 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 at June 30, 2022 and December 31, 2021 (in thousands): Derivative Assets Derivative Liabilities Offsetting of Derivative Assets and Liabilities June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Gross Amounts Presented in the Consolidated Balance Sheet $ 10,118 $ 3,898 $ (149,888) $ (65,466) Amounts Not Offset in the Consolidated Balance Sheet (10,118) (3,898) 10,118 3,898 Net Amount $ — $ — $ (139,770) $ (61,568) 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 | 6 Months Ended |
Jun. 30, 2022 | |
ASSET RETIREMENT OBLIGATIONS | |
ASSET RETIREMENT OBLIGATIONS | 8. 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. The Company records the ARO liability on the unaudited condensed consolidated balance sheets and capitalizes the cost in “Oil and natural gas properties” “Depletion, depreciation and accretion” The Company recorded the following activity related to its ARO liability (in thousands): Liability for asset retirement obligations as of December 31, 2021 $ 11,896 Liabilities incurred during the period 103 Liabilities settled during the period (132) Accretion expense 220 Liability for asset retirement obligations as of June 30, 2022 $ 12,087 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES Commitments As of June 30, 2022, the Company has a minimum volume commitment with a third party for the purchase of chemicals to treat sour gas production through December 31, 2022. The future payments associated with the minimum volume commitment are approximately As of June 30, 2022, the Company has an active drilling rig commitment of approximately $1.7 million through the third quarter of 2022. Termination of the active drilling rig commitment would require an early termination penalty of $0.6 million, which would be in lieu of paying the active drilling rig commitment of $1.7 million. In July 2022, we extended our drilling rig commitment through the fourth quarter of 2022. The Company has entered into various long-term gathering, transportation and sales contracts with respect to its oil and natural gas production from the Delaware Basin in West Texas. As of June 30, 2022, the Company had in place two long-term crude oil contracts and 12 long-term natural gas contracts in this area and the sales prices under these contracts are based on posted market rates. Under the terms of these contracts, the Company has committed a substantial portion of its production from this area for periods ranging from one twenty Contingencies Surface owners of properties in Louisiana, where the Company formerly operated, often file lawsuits or assert claims against oil and gas companies claiming that operators and working interest owners are liable for environmental damages arising from operations conducted on the leased properties. These damages are frequently measured by the cost to restore the leased properties to their original condition. Currently and in the past, the Company has been party to such matters in Louisiana. With regard to pending matters, the overall exposure is not currently determinable. The Company intends to vigorously oppose these claims. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 10. STOCKHOLDERS’ EQUITY Incentive Plans "General and administrative" Restricted Stock From time to time, the Company grants shares of restricted stock units (RSUs) under the Plan to employees of the Company. Under the Plan, employee RSUs will generally vest and convert to shares three , depending on award, or when the performance or market conditions described further described in our Annual Report on Form 10-K occur. During the six months ended June 30, 2022, the Company granted 0.2 million shares of RSUs at a weighted average grant date fair value of $14.07 per share. At June 30, 2022, the Company had $4.1 million of unrecognized compensation expense related to non-vested RSU awards to be recognized over a weighted average period of 1.6 years. Stock Options From time to time, the Company grants stock options under the 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. Awards granted under the Plan typically vest over a four year period at a rate of one from the date of grant. Warrants On October 8, 2019, the Company entered into a warrant agreement (the Warrant Agreement) with Broadridge Corporate Issuer Solutions, Inc. as the warrant agent, pursuant to which the Company issued approximately 6.9 million warrants (Series A, Series B and Series C Warrants and together, the Warrants) with corresponding initial exercise prices ranging from $40.17 to $60.45 per share, on a pro rata basis to pre-emergence holders of the predecessor Company’s common stock pursuant to the Company’s plan of reorganization. The Warrants do not grant any voting or control rights or dividend rights, or contain any negative covenants restricting the operation of the Company’s business. Each Warrant represents the right to purchase one share of common stock at the applicable exercise prices, subject to adjustment as provided in the Warrant Agreement and increasing monthly at an annualized rate of 6.75%, compounding monthly. Each series of Warrants issued under the Warrant Agreement has a three-year term, expiring on October 8, 2022. As of June 30, 2022, the Company had 1.8 million Series A, 2.2 million Series B and 2.9 million Series C Warrants outstanding with corresponding exercise prices of $46.15, $55.86 and $70.42 per share, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 11. EARNINGS PER SHARE The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Basic: Net income (loss) $ 13,047 $ (33,929) $ (79,697) $ (67,304) Weighted average basic number of common shares outstanding 16,338 16,268 16,320 16,250 Basic net income (loss) per share of common stock $ 0.80 $ (2.09) $ (4.88) $ (4.14) Diluted: Net income (loss) $ 13,047 $ (33,929) $ (79,697) $ (67,304) Weighted average basic number of common shares outstanding 16,338 16,268 16,320 16,250 Common stock equivalent shares representing shares issuable upon: Exercise of Series A Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of Series B Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of Series C Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Vesting of restricted stock units 172 Anti-dilutive Anti-dilutive Anti-dilutive Weighted average diluted number of common shares outstanding 16,510 16,268 16,320 16,250 Diluted net income (loss) per share of common stock $ 0.79 $ (2.09) $ (4.88) $ (4.14) Common stock equivalents, including warrants and options totaling 7.4 million for the quarter ended June 30, 2022 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 warrants, options and restricted stock units, totaling Common stock equivalents, including warrants, options and restricted stock units, totaling 7.7 million for the six months ended June 30, 2021 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 | 6 Months Ended |
Jun. 30, 2022 | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | 12. ADDITIONAL FINANCIAL STATEMENT INFORMATION Certain balance sheet amounts are comprised of the following (in thousands): June 30, 2022 December 31, 2021 Accounts receivable, net: Oil, natural gas and natural gas liquids revenues $ 47,221 $ 34,110 Joint interest accounts 5,590 2,503 Other 191 193 $ 53,002 $ 36,806 Prepaids and other: Prepaids $ 536 $ 975 Funds in escrow 390 390 Other 1 1 $ 927 $ 1,366 Other assets (Non-current): Investment in unconsolidated affiliate (1) $ 1,653 $ — Oil, natural gas and natural gas liquids revenues 417 1,010 Funds in escrow 1,228 1,227 Other 31 33 $ 3,329 $ 2,270 Accounts payable and accrued liabilities: Trade payables $ 36,885 $ 25,315 Accrued oil and natural gas capital costs 20,518 4,881 Revenues and royalties payable 29,534 22,763 Accrued interest expense 57 42 Accrued employee compensation 2,073 3,735 Accrued lease operating expenses 6,212 6,090 Drilling advances from partners 2,055 — $ 97,334 $ 62,826 (1) In May 2022, we entered into a joint venture with Caracara Services, LLC (“Caracara”) to develop an acid gas treatment facility to remove hydrogen sulfide and carbon dioxide from our produced natural gas. We also entered into a gas treating agreement with the joint venture, Brazos Amine Treater, LLC (“BAT”), and have a minimum volume commitment of 20 MMcf per day, with certain rollover rights and start-up flexibility, for an initial term of five years from the in service date of the facility. Caracara will provide all necessary capital for the construction of the treatment facility. We contributed certain full cost pool assets to the joint venture in exchange for a retained 5% equity interest in BAT, an unconsolidated subsidiary. For accounting purposes, since we do not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance nor do we have the obligation to absorb losses or the right to receive benefits that could potentially be significant, we are not the primary beneficiary of BAT. Accordingly, we account for our investment in BAT using the equity method of accounting based on our ability to exercise significant influence , but not control, over the key activities of the joint venture. |
FINANCIAL STATEMENT PRESENTAT_2
FINANCIAL STATEMENT PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
FINANCIAL STATEMENT PRESENTATION | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Battalion 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 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. 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. 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. During interim periods, Battalion 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 7, 2022. Please refer to the notes in the Annual Report on Form 10- K for the year ended December 31, 2021 when reviewing interim financial results. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. |
Risk and Uncertainties | Risk and Uncertainties The Company is continuously monitoring the current and potential impacts of the novel coronavirus (COVID-19) pandemic on its business, including how it has and may continue to impact its operations, financial results, liquidity, contractors, customers, employees and vendors, and taking appropriate actions in response, including implementing various measures to ensure the continued operation of its business in a safe and secure manner. During 2021, widespread availability of COVID-19 vaccines in the United States and elsewhere combined with accommodative governmental monetary and fiscal policies and other factors, led to a rebound in demand for oil and natural gas and increases in oil and natural gas prices. Further, in 2022, the effects of Russian sanctions amidst the conflict with Ukraine have pushed oil and gas prices higher. However, there remains the potential for demand for oil and natural gas to be adversely impacted by the economic effects of rising interest rates and tightening monetary policies, as well as the ongoing COVID-19 pandemic, including as a consequence of the circulation of more infectious “variants” of the disease, vaccine hesitancy, waning vaccine effectiveness or other factors. As a consequence, the Company is unable to predict whether oil and natural gas prices will remain at current levels or will be adversely impacted by these or other factors. The results presented in this Form 10-Q are not necessarily indicative of future operating results. Additionally, in periods of increasing commodity prices, the Company continues to be at risk to supply chain issues, including, but not limited to, labor shortages, pipe restrictions and potential delays in obtaining frac and/or drilling related equipment that could impact our business . During these periods, the costs and delivery times of rigs, equipment and supplies may also be substantially greater. The unavailability or high cost of drilling rigs and/or frac crews, pressure pumping equipment, tubulars and other supplies, and of qualified personnel can materially and adversely affect our operations and profitability. For further information regarding the actual and potential impacts of COVID-19 and supply chain issues on the Company, see “Risk Factors” |
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, and fair value estimates. 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. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash “Cash and cash equivalents” “Restricted cash” June 30, 2022 December 31, 2021 Cash and cash equivalents $ 43,640 $ 46,864 Restricted cash 135 1,495 Total cash, cash equivalents and restricted cash $ 43,775 $ 48,359 |
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. As of June 30, 2022 and December 31, 2021, allowances for doubtful accounts were approximately $0.2 million for both periods. |
Concentrations of Credit Risk | The Company’s primary concentrations of credit risk are the risks of uncollectible accounts receivable and of nonperformance by counterparties under the Company’s derivative contracts. Each reporting period, the Company assesses the recoverability of material receivables using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions to determine expected collectability of its material receivables. The Company’s exposure to credit risk under its derivative contracts is varied among major financial institutions with investment grade credit ratings, where it has master netting agreements which provide for offsetting of amounts payable or receivable between the Company and the counterparty. To manage counterparty risk associated with derivative contracts, the Company selects and monitors counterparties based on an assessment of their financial strength and/or credit ratings. At June 30, 2022, the Company’s derivative counterparties include two major financial institutions, both of which are secured lenders under the Term Loan Agreement. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) |
FINANCIAL STATEMENT PRESENTAT_3
FINANCIAL STATEMENT PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FINANCIAL STATEMENT PRESENTATION | |
Schedule Of Cash, Cash Equivalents And Restricted Cash | June 30, 2022 December 31, 2021 Cash and cash equivalents $ 43,640 $ 46,864 Restricted cash 135 1,495 Total cash, cash equivalents and restricted cash $ 43,775 $ 48,359 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
Schedule of Company's leases | The table below summarizes the Company’s leases for the six months ended June 30, 2022 and 2021 (in thousands, except term and discount rate): Six Months Ended June 30, 2022 2021 Lease cost Operating lease costs $ 196 $ 235 Short-term lease costs 4,003 1,889 Variable lease costs — 229 Total lease costs $ 4,199 $ 2,353 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 196 $ 328 Weighted-average remaining lease term - operating leases 1.4 years 0.2 years Weighted-average discount rate - operating leases 4.29 % 3.70 % |
Schedule of future minimum lease payments associated with the Company's non-cancellable operating leases for office space and equipment | Future minimum lease payments associated with the Company’s non-cancellable operating leases for office space as of June 30, 2022 are presented in the table below (in thousands): June 30, 2022 Remaining period in 2022 $ 196 2023 359 2024 — 2025 — 2026 — Thereafter — Total operating lease payments 555 Less: discount to present value 16 Total operating lease liabilities 539 Less: current operating lease liabilities 377 Noncurrent operating lease liabilities $ 162 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
DEBT | |
Schedule of debt | As of June 30, 2022 and December 31, 2021, the Company’s debt consisted of the following (in thousands): June 30, 2022 December 31, 2021 Term loan credit facility (1) $ 203,372 $ 181,565 Paycheck Protection Program loan — 85 Total debt, net 203,372 181,650 Current portion of long-term debt (2) 15,000 85 Total long-term debt, net $ 188,372 $ 181,565 (1) Amount is net of $12.4 million and $14.2 million in unamortized debt issuance costs at June 30, 2022 and December 31, 2021, respectively. Amount also excludes the initial fair value allocated to the change of control call option embedded derivative of $4.2 million. Refer to “Term Loan Credit Facility” below for further details . (2) As of June 30, 2022, amount represents amortization payments of $15.0 million under the Term Loan Agreement due within one year. As of December 31, 2021, amount represents the balance owed under the Company’s Paycheck Protection Program Loan. |
Schedule of prepayment premiums | Period Premium Months 0 - 12 Make-whole amount equal to 12 months of interest plus 2.00% Months 13 - 24 2.00% Months 25 - 36 1.00% Months 37 - 48 0.00% |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of the Company's financial assets and liabilities | June 30, 2022 Level 1 Level 2 Level 3 Total Assets Assets from commodity-based derivative contracts $ — $ 10,118 $ — $ 10,118 Liabilities Liabilities from commodity-based derivative contracts $ — $ 149,888 $ — $ 149,888 December 31, 2021 Level 1 Level 2 Level 3 Total Assets Assets from commodity-based derivative contracts $ — $ 3,898 $ — $ 3,898 Liabilities Liabilities from commodity-based derivative contracts $ — $ 65,466 $ — $ 65,466 |
Schedule of changes in fair value of the change of control call option | The following table sets forth a reconciliation of the changes in fair value of the Change of Control Call Option classified as Level 3 in the fair value hierarchy (in thousands): Change of Control Call Option Balance at December 31, 2021 $ 4,003 Change in fair value (2,595) Balance at June 30, 2022 $ 1,408 |
DERIVATIVE AND HEDGING ACTIVI_2
DERIVATIVE AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 as of June 30, 2022 and December 31, 2021 (in thousands): Derivatives not designated as Asset derivative contracts Liability derivative contracts hedging contracts under ASC 815 Balance sheet location June 30, 2022 December 31, 2021 Balance sheet location June 30, 2022 December 31, 2021 Commodity contracts Current assets - assets from derivative contracts $ 6,146 $ 1,383 Current liabilities - liabilities from derivative contracts $ (91,750) $ (58,322) Commodity contracts Other noncurrent assets - assets from derivative contracts 3,972 2,515 Other noncurrent liabilities - liabilities from derivative contracts (58,138) (7,144) Total derivatives not designated as hedging contracts under ASC 815 $ 10,118 $ 3,898 $ (149,888) $ (65,466) |
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) Amount of gain or (loss) recognized in income on recognized in income on derivative contracts for the derivative contracts for the Derivatives not designated Location of gain or Three Months Ended Six Months Ended as hedging contracts (loss) recognized in income June 30, June 30, under ASC 815 on derivative contracts 2022 2021 2022 2021 Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses) - net gain (loss) on derivative contracts $ 12,837 $ (34,817) $ (78,201) $ (70,869) Realized gain (loss) on commodity contracts Other income (expenses) - net gain (loss) on derivative contracts (44,747) (18,272) (77,567) (27,931) Total net gain (loss) on derivative contracts $ (31,910) $ (53,089) $ (155,768) $ (98,800) |
Schedule of open derivative contracts | At June 30, 2022, the Company had the following open crude oil and natural gas derivative contracts: Instrument 2022 2023 2024 2025 2026 Crude oil fixed-price swap: Total volumes (Bbls) 1,240,865 2,000,965 1,449,140 1,028,160 212,810 Weighted average price $ 52.80 65.75 60.91 59.69 59.83 Crude oil basis swap: Total volumes (Bbls) 1,222,565 1,937,165 1,413,120 1,000,360 212,810 Weighted average price $ 0.41 0.25 0.23 0.17 0.19 Crude oil WTI NYMEX roll: Total volumes (Bbls) 1,005,565 1,937,165 1,413,120 1,000,360 212,810 Weighted average price $ 0.10 0.50 0.28 0.10 0.27 Natural gas fixed-price swap: Total volumes (MMBtu) 1,167,500 3,957,750 2,658,750 2,428,050 Weighted average price $ 3.92 3.36 3.09 3.00 Natural gas producer two-way collar: Total volumes (MMBtu) 2,473,400 1,742,100 1,424,100 555,700 653,900 Weighted average price (call) $ 3.97 5.52 4.70 4.24 4.45 Weighted average price (put) $ 3.48 3.86 3.19 3.28 4.00 Natural gas basis swap: Total volumes (MMBtu) 3,640,900 5,700,600 4,084,350 2,983,750 653,900 Weighted average price $ (0.51) (0.64) (0.64) (0.56) (0.96) |
Schedule of potential effects of master netting arrangements on the fair value of derivative contracts | Derivative Assets Derivative Liabilities Offsetting of Derivative Assets and Liabilities June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Gross Amounts Presented in the Consolidated Balance Sheet $ 10,118 $ 3,898 $ (149,888) $ (65,466) Amounts Not Offset in the Consolidated Balance Sheet (10,118) (3,898) 10,118 3,898 Net Amount $ — $ — $ (139,770) $ (61,568) |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ASSET RETIREMENT OBLIGATIONS | |
Schedule of activity related to ARO liability | The Company recorded the following activity related to its ARO liability (in thousands): Liability for asset retirement obligations as of December 31, 2021 $ 11,896 Liabilities incurred during the period 103 Liabilities settled during the period (132) Accretion expense 220 Liability for asset retirement obligations as of June 30, 2022 $ 12,087 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER 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): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Basic: Net income (loss) $ 13,047 $ (33,929) $ (79,697) $ (67,304) Weighted average basic number of common shares outstanding 16,338 16,268 16,320 16,250 Basic net income (loss) per share of common stock $ 0.80 $ (2.09) $ (4.88) $ (4.14) Diluted: Net income (loss) $ 13,047 $ (33,929) $ (79,697) $ (67,304) Weighted average basic number of common shares outstanding 16,338 16,268 16,320 16,250 Common stock equivalent shares representing shares issuable upon: Exercise of Series A Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of Series B Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of Series C Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Vesting of restricted stock units 172 Anti-dilutive Anti-dilutive Anti-dilutive Weighted average diluted number of common shares outstanding 16,510 16,268 16,320 16,250 Diluted net income (loss) per share of common stock $ 0.79 $ (2.09) $ (4.88) $ (4.14) |
ADDITIONAL FINANCIAL STATEMEN_2
ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ADDITIONAL FINANCIAL STATEMENT INFORMATION | |
Schedule of additional financial statement information, balance sheet | Certain balance sheet amounts are comprised of the following (in thousands): June 30, 2022 December 31, 2021 Accounts receivable, net: Oil, natural gas and natural gas liquids revenues $ 47,221 $ 34,110 Joint interest accounts 5,590 2,503 Other 191 193 $ 53,002 $ 36,806 Prepaids and other: Prepaids $ 536 $ 975 Funds in escrow 390 390 Other 1 1 $ 927 $ 1,366 Other assets (Non-current): Investment in unconsolidated affiliate (1) $ 1,653 $ — Oil, natural gas and natural gas liquids revenues 417 1,010 Funds in escrow 1,228 1,227 Other 31 33 $ 3,329 $ 2,270 Accounts payable and accrued liabilities: Trade payables $ 36,885 $ 25,315 Accrued oil and natural gas capital costs 20,518 4,881 Revenues and royalties payable 29,534 22,763 Accrued interest expense 57 42 Accrued employee compensation 2,073 3,735 Accrued lease operating expenses 6,212 6,090 Drilling advances from partners 2,055 — $ 97,334 $ 62,826 (1) In May 2022, we entered into a joint venture with Caracara Services, LLC (“Caracara”) to develop an acid gas treatment facility to remove hydrogen sulfide and carbon dioxide from our produced natural gas. We also entered into a gas treating agreement with the joint venture, Brazos Amine Treater, LLC (“BAT”), and have a minimum volume commitment of 20 MMcf per day, with certain rollover rights and start-up flexibility, for an initial term of five years from the in service date of the facility. Caracara will provide all necessary capital for the construction of the treatment facility. We contributed certain full cost pool assets to the joint venture in exchange for a retained 5% equity interest in BAT, an unconsolidated subsidiary. For accounting purposes, since we do not control the key activities (e.g. operating and maintaining the facility) which most significantly impact economic performance nor do we have the obligation to absorb losses or the right to receive benefits that could potentially be significant, we are not the primary beneficiary of BAT. Accordingly, we account for our investment in BAT using the equity method of accounting based on our ability to exercise significant influence , but not control, over the key activities of the joint venture. |
FINANCIAL STATEMENT PRESENTAT_4
FINANCIAL STATEMENT PRESENTATION (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Basis of Presentation and Principles of Consolidation | ||
Number of operating segments | segment | 1 | |
Allowance for doubtful accounts | $ | $ 0.2 | $ 0.2 |
FINANCIAL STATEMENT PRESENTAT_5
FINANCIAL STATEMENT PRESENTATION- Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
FINANCIAL STATEMENT PRESENTATION | ||||
Cash and cash equivalents | $ 43,640 | $ 46,864 | ||
Restricted cash | 135 | 1,495 | ||
Total cash, cash equivalents and restricted cash | $ 43,775 | $ 48,359 | $ 1,458 | $ 4,295 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Lease cost | |||
Operating lease costs | $ 196 | $ 235 | |
Short-term lease costs | 4,003 | 1,889 | |
Variable lease costs | 229 | ||
Total lease costs | 4,199 | 2,353 | |
Other information | |||
Operating cash flows from operating leases | $ 196 | $ 328 | |
Weighted-average remaining lease term - operating leases | 1 year 4 months 24 days | 2 months 12 days | |
Weighted-average discount rate - operating leases | 4.29% | 3.70% | |
Initial lease term | 2 years 3 months 18 days | 2 years 3 months 18 days |
LEASES - Reported under ASC 842
LEASES - Reported under ASC 842 and ASC 840 (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Future minimum lease payments for non-cancellable operating leases | ||
Remaining period in 2022 | $ 196 | |
2023 | 359 | |
Total operating lease payment | 555 | |
Less: discount to present value | 16 | |
Total operating lease liabilities | 539 | |
Less: current operating lease liabilities | 377 | $ 369 |
Noncurrent operating lease liabilities | $ 162 | $ 352 |
OPERATING REVENUES - Revenue Re
OPERATING REVENUES - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of operating revenue | |||||
Total oil, natural gas and natural gas liquids sales | $ 101,290 | $ 64,103 | $ 182,698 | $ 119,369 | |
Other | 221 | 263 | 415 | 515 | |
Total operating revenues | 101,511 | 64,366 | 183,113 | 119,884 | |
Oil | |||||
Disaggregation of operating revenue | |||||
Total oil, natural gas and natural gas liquids sales | 73,944 | 51,935 | 136,468 | 93,205 | |
Natural gas | |||||
Disaggregation of operating revenue | |||||
Total oil, natural gas and natural gas liquids sales | 14,759 | 5,317 | 23,640 | 14,404 | |
NGLs | |||||
Disaggregation of operating revenue | |||||
Total oil, natural gas and natural gas liquids sales | 12,587 | $ 6,851 | 22,590 | $ 11,760 | |
Accounts receivable | |||||
Disaggregation of operating revenue | |||||
Due from contracts with customers | $ 47,600 | $ 47,600 | $ 35,100 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details) | 6 Months Ended | |
Jun. 30, 2022 $ / MMBTU $ / bbl | Jun. 30, 2021 $ / MMBTU $ / bbl | |
Ceiling Limitation Disclosures | ||
First-day-of-month 12-month average price for natural gas (in $/MMBtu) | $ / MMBTU | 5.13 | 2.43 |
First-day-of-month 12-month average price for crude oil used in ceiling test impairment (in dollars per barrel) | $ / bbl | 85.82 | 49.72 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Nov. 24, 2021 |
Current and long-term debt | |||
Debt | $ 203,372 | $ 181,650 | |
Current portion of long-term debt | 15,000 | 85 | |
Total long-term debt | 188,372 | 181,565 | |
Unamortized premium related to debt issued | 15,000 | ||
Term loan credit facility | |||
Current and long-term debt | |||
Debt | 203,372 | 181,565 | |
Unamortized debt issuance costs | 12,400 | 14,200 | |
Allocated to the change of control call option embedded derivative | 4,200 | 4,200 | |
Term loan credit facility | Other noncurrent liabilities - liabilities from derivative contracts | |||
Current and long-term debt | |||
Allocated to the change of control call option embedded derivative | $ 4,200 | ||
Paycheck Protection Program Loan [Member] | |||
Current and long-term debt | |||
Debt | 85 | ||
Current portion of long-term debt | $ 15,000 | $ 85 |
DEBT - Term Loan Credit Facilit
DEBT - Term Loan Credit Facility (Details) - USD ($) $ in Millions | 6 Months Ended | 7 Months Ended | |
Nov. 24, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | |
Term loan credit facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 200 | ||
Amount available for issuance of letters of credit | $ 5 | ||
Applicable margin (as a percent) | 7% | ||
Credit facility term | 18 months | ||
Maturity date | Nov. 24, 2025 | ||
Amount outstanding | $ 220 | $ 220 | |
Letters of credit outstanding | $ 1.3 | 1.3 | |
Covenant compliance | As of June 30, 2022, the Company was in compliance with the financial covenants under the Term Loan Agreement. | ||
Threshold from capital expenditures to cash balance | $ 20 | ||
Aggregate scheduled amortization payments | $ 120 | 120 | |
Term loan credit facility | Minimum | |||
Debt Instrument [Line Items] | |||
Current ratio | 1% | ||
Term loan credit facility | Maximum | |||
Debt Instrument [Line Items] | |||
Current ratio | 1% | ||
Term loan credit facility | Prior to February 15, 2020 | |||
Debt Instrument [Line Items] | |||
Interest plus | 2% | ||
Term loan credit facility | Prior to February 15, 2020 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 0 months | ||
Term loan credit facility | Prior to February 15, 2020 | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 12 months | ||
Term loan credit facility | February 15, 2020 | |||
Debt Instrument [Line Items] | |||
Interest plus | 2% | ||
Term loan credit facility | February 15, 2020 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 13 months | ||
Term loan credit facility | February 15, 2020 | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 24 months | ||
Term loan credit facility | February 15, 2021 | |||
Debt Instrument [Line Items] | |||
Interest plus | 1% | ||
Term loan credit facility | February 15, 2021 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 25 months | ||
Term loan credit facility | February 15, 2021 | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 36 months | ||
Term loan credit facility | February 15, 2022 | |||
Debt Instrument [Line Items] | |||
Interest plus | 0% | ||
Term loan credit facility | February 15, 2022 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 37 months | ||
Term loan credit facility | February 15, 2022 | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument prepayment term | 48 months | ||
Term loan credit facility | Amount available to be drawn up to 18 months from November 24, 2021 | |||
Debt Instrument [Line Items] | |||
Incremental borrowing that we can make if we meet certain criteria | $ 20 | ||
Term loan credit facility | Amount available to be drawn up to 18 months after November 24, 2021 | |||
Debt Instrument [Line Items] | |||
Incremental borrowing that we can make if we meet certain criteria | $ 15 | ||
Term loan credit facility | Fiscal quarter ending June 30, 2022 | Minimum | |||
Debt Instrument [Line Items] | |||
Asset coverage ratio | 1% | ||
Term loan credit facility | Fiscal quarter ending June 30, 2022 | Maximum | |||
Debt Instrument [Line Items] | |||
Asset coverage ratio | 1.60% | ||
Term loan credit facility | Fiscal quarter ending September 30, 2022 | Minimum | |||
Debt Instrument [Line Items] | |||
Asset coverage ratio | 1% | ||
Term loan credit facility | Fiscal quarter ending September 30, 2022 | Maximum | |||
Debt Instrument [Line Items] | |||
Asset coverage ratio | 1.70% | ||
Term loan credit facility | Fiscal quarter ending December 31, 2022 and each fiscal quarter thereafter | Minimum | |||
Debt Instrument [Line Items] | |||
Asset coverage ratio | 1% | ||
Term loan credit facility | Fiscal quarter ending December 31, 2022 and each fiscal quarter thereafter | Maximum | |||
Debt Instrument [Line Items] | |||
Asset coverage ratio | 1.80% | ||
Term loan credit facility | Fiscal quarter ending December 31, 2021 through and including June 30, 2022 | Minimum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 1% | ||
Term loan credit facility | Fiscal quarter ending December 31, 2021 through and including June 30, 2022 | Maximum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 3.25% | ||
Term loan credit facility | Fiscal quarter ending September 30, 2022 and December 31, 2022 | Minimum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 1% | ||
Term loan credit facility | Fiscal quarter ending September 30, 2022 and December 31, 2022 | Maximum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 3% | ||
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Minimum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 1% | ||
Term loan credit facility | Fiscal quarter ending March 31, 2023 | Maximum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 2.75% | ||
Term loan credit facility | Fiscal quarter ending each fiscal quarter thereafter | Minimum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 1% | ||
Term loan credit facility | Fiscal quarter ending each fiscal quarter thereafter | Maximum | |||
Debt Instrument [Line Items] | |||
Net Leverage Ratio | 2.50% | ||
Delayed Draw Term Loan | |||
Debt Instrument [Line Items] | |||
Borrowing capacity available | $ 15 | $ 15 |
DEBT - Senior Facility (Details
DEBT - Senior Facility (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
DEBT | ||
Debt | $ 203,372 | $ 181,650 |
DEBT - Paycheck Protection Prog
DEBT - Paycheck Protection Program Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 13, 2021 | Apr. 16, 2020 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current and long-term debt | |||||
Proceeds from issuance of debt | $ 20,000 | $ 82,000 | |||
Paycheck Protection Program Loan [Member] | |||||
Current and long-term debt | |||||
Proceeds from issuance of debt | $ 2,200 | ||||
Principal repaid | $ 200 | ||||
Principal amount | $ 200 | ||||
Forgiveness | $ 2,000 | ||||
Gain (loss) on extinguishment of debt | $ 2,100 |
DEBT - Debt Maturities and Debt
DEBT - Debt Maturities and Debt Issuance Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Issuance Costs | ||
Payment of debt issuance costs on Senior Credit Agreement | $ 379 | |
Term loan credit facility | ||
Debt Issuance Costs | ||
Unamortized debt issuance costs | $ 12,400 | $ 14,200 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Assets | ||
Asset transfers between levels | $ 0 | |
Liabilities | ||
Liability transfers between levels | 0 | |
Recurring | Total | ||
Assets | ||
Receivables from derivative contracts | 10,118 | $ 3,898 |
Liabilities | ||
Liabilities from derivative contracts | 149,888 | 65,466 |
Recurring | Level 2 | ||
Assets | ||
Receivables from derivative contracts | 10,118 | 3,898 |
Liabilities | ||
Liabilities from derivative contracts | $ 149,888 | $ 65,466 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Change of Control Call Option (Details) - Change of Control Call Option $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at the beginning of the period | $ 4,003 |
Change in fair value | (2,595) |
Balance at the end of the period | $ 1,408 |
DERIVATIVE AND HEDGING ACTIVI_3
DERIVATIVE AND HEDGING ACTIVITIES - (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative and hedging activities | ||
Asset derivative contracts | $ 10,118 | $ 3,898 |
Liability derivative contracts | (149,888) | (65,466) |
Derivatives not designated as hedging contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 10,118 | 3,898 |
Liability derivative contracts | (149,888) | (65,466) |
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 6,146 | 1,383 |
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts | ||
Derivative and hedging activities | ||
Asset derivative contracts | 3,972 | 2,515 |
Derivatives not designated as hedging contracts | Commodity contracts | Current liabilities - liabilities from derivative contracts | ||
Derivative and hedging activities | ||
Liability derivative contracts | (91,750) | (58,322) |
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts | ||
Derivative and hedging activities | ||
Liability derivative contracts | $ (58,138) | $ (7,144) |
DERIVATIVE AND HEDGING ACTIVI_4
DERIVATIVE AND HEDGING ACTIVITIES - Realized Unrealized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative and hedging activities | ||||
Total net gain (loss) on derivative contracts | $ (31,910) | $ (53,089) | $ (155,768) | $ (98,800) |
Derivatives not designated as hedging contracts | Commodity contracts | ||||
Derivative and hedging activities | ||||
Total net gain (loss) on derivative contracts | (31,910) | (53,089) | (155,768) | (98,800) |
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense | ||||
Derivative and hedging activities | ||||
Unrealized gain (loss) on commodity contracts | 12,837 | (34,817) | (78,201) | (70,869) |
Realized gain (loss) on commodity contracts | $ (44,747) | $ (18,272) | $ (77,567) | $ (27,931) |
DERIVATIVE AND HEDGING ACTIVI_5
DERIVATIVE AND HEDGING ACTIVITIES - Open Contracts (Details) | 6 Months Ended |
Jun. 30, 2022 MMBTU $ / MMBTU $ / bbl bbl | |
January 2022 - December 2022 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,240,865 |
January 2022 - December 2022 | Fixed Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 52.80 |
January 2022 - December 2022 | Fixed Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 1,167,500 |
January 2022 - December 2022 | Fixed Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.92 |
January 2022 - December 2022 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,222,565 |
January 2022 - December 2022 | Basis Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.41 |
January 2022 - December 2022 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 3,640,900 |
January 2022 - December 2022 | Basis Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | (0.51) |
January 2022 - December 2022 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,005,565 |
January 2022 - December 2022 | WTI NYMEX Roll | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.10 |
January 2022 - December 2022 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 2,473,400 |
January 2022 - December 2022 | Call option | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.97 |
January 2022 - December 2022 | Put options | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.48 |
January 2023 - December 2023 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 2,000,965 |
January 2023 - December 2023 | Fixed Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 65.75 |
January 2023 - December 2023 | Fixed Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 3,957,750 |
January 2023 - December 2023 | Fixed Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.36 |
January 2023 - December 2023 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,937,165 |
January 2023 - December 2023 | Basis Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.25 |
January 2023 - December 2023 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 5,700,600 |
January 2023 - December 2023 | Basis Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | (0.64) |
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,937,165 |
January 2023 - December 2023 | WTI NYMEX Roll | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.50 |
January 2023 - December 2023 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 1,742,100 |
January 2023 - December 2023 | Call option | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 5.52 |
January 2023 - December 2023 | Put options | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.86 |
January 2024 - December 2024 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,449,140 |
January 2024 - December 2024 | Fixed Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 60.91 |
January 2024 - December 2024 | Fixed Swap | Natural Gas [Member] | Minimum | |
Derivative and hedging activities | |
Floor (in dollars per Mmbtu's/Bbl's) | 2,658,750 |
January 2024 - December 2024 | Fixed Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.09 |
January 2024 - December 2024 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,413,120 |
January 2024 - December 2024 | Basis Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.23 |
January 2024 - December 2024 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 4,084,350 |
January 2024 - December 2024 | Basis Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | (0.64) |
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,413,120 |
January 2024 - December 2024 | WTI NYMEX Roll | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.28 |
January 2024 - December 2024 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 1,424,100 |
January 2024 - December 2024 | Call option | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 4.70 |
January 2024 - December 2024 | Put options | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.19 |
January 2025 - December 2025 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,028,160 |
January 2025 - December 2025 | Fixed Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 59.69 |
January 2025 - December 2025 | Fixed Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 2,428,050 |
January 2025 - December 2025 | Fixed Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3 |
January 2025 - December 2025 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,000,360 |
January 2025 - December 2025 | Basis Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.17 |
January 2025 - December 2025 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 2,983,750 |
January 2025 - December 2025 | Basis Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | (0.56) |
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 1,000,360 |
January 2025 - December 2025 | WTI NYMEX Roll | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.10 |
January 2025 - December 2025 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 555,700 |
January 2025 - December 2025 | Call option | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 4.24 |
January 2025 - December 2025 | Put options | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 3.28 |
January 2026 - December 2026 | Fixed Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 212,810 |
January 2026 - December 2026 | Fixed Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 59.83 |
January 2026 - December 2026 | Basis Swap | Crude oil | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 212,810 |
January 2026 - December 2026 | Basis Swap | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.19 |
January 2026 - December 2026 | Basis Swap | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 653,900 |
January 2026 - December 2026 | Basis Swap | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | (0.96) |
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Maximum | |
Derivative and hedging activities | |
Volume in Bbl's | bbl | 212,810 |
January 2026 - December 2026 | WTI NYMEX Roll | Crude oil | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | $ / bbl | 0.27 |
January 2026 - December 2026 | Collars | Natural Gas [Member] | |
Derivative and hedging activities | |
Volume in Mmbtu's | MMBTU | 653,900 |
January 2026 - December 2026 | Call option | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 4.45 |
January 2026 - December 2026 | Put options | Natural Gas [Member] | Weighted Average | |
Derivative and hedging activities | |
Weighted Average Price (in dollars per Mmbtu's/Bbl's) | 4 |
DERIVATIVE AND HEDGING ACTIVI_6
DERIVATIVE AND HEDGING ACTIVITIES - Netting Arrangements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Assets | ||
Gross Amounts Presented in the Consolidated Balance Sheet | $ 10,118 | $ 3,898 |
Amounts Not Offset in the Consolidated Balance Sheet | (10,118) | (3,898) |
Net Amount | 0 | 0 |
Derivative Liabilities | ||
Gross Amounts Presented in the Consolidated Balance Sheet | (149,888) | (65,466) |
Amounts Not Offset in the Consolidated Balance Sheet | 10,118 | 3,898 |
Net Amount | $ (139,770) | $ (61,568) |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Activity related to ARO liability | |
Liability for asset retirement obligations at the beginning of the period | $ 11,896 |
Liabilities incurred during the period | 103 |
Liabilities settled and divested | (132) |
Accretion expense | 220 |
Liability for asset retirement obligations at the end of the period | $ 12,087 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) contract | |
Purchase commitments related to equipment | |
Total | $ 1.7 |
Remaining commitment | 3.3 |
Drilling rig commitment | 1.7 |
Early termination penalty | $ 0.6 |
Gathering, transportation and sales | West Texas | |
Purchase commitments related to equipment | |
Number of long-term crude oil sales contracts to which the entity is committed | contract | 2 |
Number of long-term natural gas sales contracts to which the entity is committed | contract | 12 |
Gathering, transportation and sales | West Texas | Minimum | |
Purchase commitments related to equipment | |
Period of commitment for production from the date of first production | 1 year |
Gathering, transportation and sales | West Texas | Maximum | |
Purchase commitments related to equipment | |
Period of commitment for production from the date of first production | 20 years |
STOCKHOLDERS' EQUITY - Warrants
STOCKHOLDERS' EQUITY - Warrants (Details) - $ / shares | Oct. 08, 2019 | Jun. 30, 2022 |
Stockholders' equity | ||
Number of shares of common stock that can be purchased from warrants | 1 | |
Warrants issued | 6,900,000 | |
Annualized rate of increase to the strike price of warrants issued under the warrants agreement. | 6.75% | |
Warrant term (in years) | 3 years | |
Warrant maturity date | Oct. 08, 2022 | |
Minimum | ||
Stockholders' equity | ||
Exercise price (in dollars per share) | $ 40.17 | |
Maximum | ||
Stockholders' equity | ||
Exercise price (in dollars per share) | $ 60.45 | |
Series A Warrants | ||
Stockholders' equity | ||
Exercise price (in dollars per share) | $ 46.15 | |
Number of warrants issued | 1,800,000 | |
Series B Warrants | ||
Stockholders' equity | ||
Exercise price (in dollars per share) | $ 55.86 | |
Number of warrants issued | 2,200,000 | |
Series C Warrants | ||
Stockholders' equity | ||
Exercise price (in dollars per share) | $ 70.42 | |
Number of warrants issued | 2,900,000 |
STOCKHOLDERS' EQUITY - Incentiv
STOCKHOLDERS' EQUITY - Incentive Plans (Details) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Jan. 29, 2020 shares | |
General and administrative | |||
Stock-based compensation | |||
Compensation expense recorded | $ | $ 0.9 | $ 1.1 | |
Restricted Stock | |||
Number of Shares | |||
Granted (in shares) | 0.2 | ||
Weighted Average Grant Date fair Value Per Share | |||
Granted (in dollars per share) | $ / shares | $ 14.07 | ||
2020 Incentive Plan | Common Stock | |||
Stock-based compensation | |||
Aggregate number of shares available | 1.8 | ||
2020 Incentive Plan | Common Stock | Maximum | |||
Stock-based compensation | |||
Maximum number of shares that remained reserved for issuance under the Plan | 0.3 | ||
2020 Incentive Plan | Stock options | |||
Stock-based compensation | |||
Percentage of awards vesting on the annual anniversary date of the grant | 25 |
STOCKHOLDERS' EQUITY - Stock Op
STOCKHOLDERS' EQUITY - Stock Options (Details) - Stock options $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Stock-based compensation | |
Vesting period | 4 years |
Expiration term | 7 years |
Unrecognized compensation expense stock option | $ | $ 0.3 |
Weighted average remaining vesting period | 1 year 1 month 6 days |
2020 Incentive Plan | |
Stock-based compensation | |
Percentage of awards vesting on the annual anniversary date of the grant | 25 |
Granted (in shares) | shares | 0 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Stock (Details) - Restricted Stock $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Stock-based compensation | |
Number of shares granted | shares | 0.2 |
Granted (in dollars per share) | $ / shares | $ 14.07 |
Unrecognized compensation expense other than options | $ | $ 4.1 |
Weighted average remaining vesting period | 1 year 7 months 6 days |
Minimum | |
Stock-based compensation | |
Vesting period | 3 years |
Maximum | |
Stock-based compensation | |
Vesting period | 4 years |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic: | ||||
Net income (loss) available to common stockholders | $ 13,047 | $ (33,929) | $ (79,697) | $ (67,304) |
Weighted average basic number of common shares outstanding | 16,338 | 16,268 | 16,320 | 16,250 |
Basic net income (loss) per share of common share (in dollars per share) | $ 0.80 | $ (2.09) | $ (4.88) | $ (4.14) |
Diluted: | ||||
Net income (loss) available to common stockholders | $ 13,047 | $ (33,929) | $ (79,697) | $ (67,304) |
Weighted average basic number of common shares outstanding | 16,338 | 16,268 | 16,320 | 16,250 |
Common stock equivalent shares representing shares included upon Vesting of restricted shares | 172 | |||
Weighted average diluted number of common shares outstanding | 16,510 | 16,268 | 16,320 | 16,250 |
Diluted net income (loss) per share of common stock (in dollars per share) | $ 0.79 | $ (2.09) | $ (4.88) | $ (4.14) |
Common stock equivalents excluded from computation of diluted earnings per share of common stock because of anti-dilutive effect | 7,400 | 7,700 | 7,700 |
ADDITIONAL FINANCIAL STATEMEN_3
ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) $ in Thousands | 1 Months Ended | ||
May 31, 2022 MMcf / d | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts receivable: | |||
Oil, natural gas and natural gas liquids revenues | $ 47,221 | $ 34,110 | |
Joint interest accounts | 5,590 | 2,503 | |
Other | 191 | 193 | |
Total | 53,002 | 36,806 | |
Prepaids and other: | |||
Prepaids | 536 | 975 | |
Funds in escrow | 390 | 390 | |
Other | 1 | 1 | |
Total | 927 | 1,366 | |
Other assets: | |||
Investment in Unconsolidated Affiliate | 1,653 | ||
Oil, natural gas and natural gas liquids revenues | 417 | 1,010 | |
Funds in escrow | 1,228 | 1,227 | |
Other | 31 | 33 | |
Total | 3,329 | 2,270 | |
Accounts payable and accrued liabilities: | |||
Trade payables | 36,885 | 25,315 | |
Accrued oil and natural gas capital costs | 20,518 | 4,881 | |
Revenues and royalties payable | 29,534 | 22,763 | |
Accrued interest expense | 57 | 42 | |
Accrued employee compensation | 2,073 | 3,735 | |
Accrued lease operating expenses | 6,212 | 6,090 | |
Drilling advances from partners | 2,055 | ||
Total | $ 97,334 | $ 62,826 | |
Minimum volume commitment | MMcf / d | 20 | ||
Volume commitment term | 5 years | ||
Brazos Amine Treater, LLC [Member] | |||
Accounts payable and accrued liabilities: | |||
Equity interest | 5% |