Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Entity Registrant Name | Linn Energy, Inc. | |
Entity Central Index Key | 1,326,428 | |
Current Fiscal Year End | --12-31 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 78,449,265 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 301,365 | $ 464,508 |
Accounts receivable – trade, net | 64,686 | 140,485 |
Derivative instruments | 3,934 | 9,629 |
Restricted cash | 43,387 | 56,445 |
Other current assets | 46,659 | 79,771 |
Assets held for sale | 22 | 106,963 |
Total current assets | 460,053 | 857,801 |
Noncurrent assets: | ||
Oil and natural gas properties (successful efforts method) | 785,815 | 950,083 |
Less accumulated depletion and amortization | (59,870) | (49,619) |
Oil and natural gas properties, successful efforts method, net | 725,945 | 900,464 |
Other property and equipment | 566,861 | 480,729 |
Less accumulated depreciation | (44,412) | (28,658) |
Other property and equipment, net | 522,449 | 452,071 |
Derivative instruments | 1,254 | 469 |
Deferred income taxes | 169,691 | 198,417 |
Equity method investments | 473,269 | 464,926 |
Other noncurrent assets | 5,264 | 6,975 |
Noncurrent assets, excluding property, total | 649,478 | 670,787 |
Total noncurrent assets | 1,897,872 | 2,023,322 |
Total assets | 2,357,925 | 2,881,123 |
Current liabilities: | ||
Accounts payable and accrued expenses | 179,887 | 253,975 |
Share-based payment liability | 111,792 | 0 |
Derivative instruments | 5,536 | 10,103 |
Other accrued liabilities | 19,830 | 58,617 |
Liabilities held for sale | 0 | 43,302 |
Total current liabilities | 317,045 | 365,997 |
Derivative instruments | 24 | 2,849 |
Asset retirement obligations and other noncurrent liabilities | 105,531 | 160,720 |
Total noncurrent liabilities | 105,555 | 163,569 |
Commitments and contingencies (Note 11) | ||
Equity: | ||
Preferred stock ($0.001 par value, 30,000,000 shares authorized; no shares issued at June 30, 2018, or December 31, 2017) | 0 | 0 |
Class A common stock ($0.001 par value, 270,000,000 shares authorized; 78,749,510 shares and 83,582,176 shares issued at June 30, 2018, and December 31, 2017, respectively) | 79 | 84 |
Additional paid-in capital | 1,427,458 | 1,899,642 |
Retained earnings | 507,788 | 432,860 |
Total common stockholders’ equity | 1,935,325 | 2,332,586 |
Noncontrolling interests | 0 | 18,971 |
Total equity | 1,935,325 | 2,351,557 |
Total liabilities and equity | $ 2,357,925 | $ 2,881,123 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock authorized | 270,000,000 | 270,000,000 |
Common stock issued | 78,749,510 | 83,582,176 |
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock authorized | 30,000,000 | 30,000,000 |
Preferred stock issued | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Successor | |||||
Revenues and other: | |||||
Oil, natural gas and natural gas liquids sales | $ 87,004 | $ 243,167 | $ 323,492 | $ 223,880 | |
Gains (losses) on oil and natural gas derivatives | (7,525) | 45,714 | 33,755 | (22,555) | |
Marketing revenues | 42,967 | 12,547 | 15,461 | 89,234 | |
Other revenues | 6,387 | 6,391 | 8,419 | 12,281 | |
Total revenues | 128,833 | 307,819 | 381,127 | 302,840 | |
Expenses: | |||||
Lease operating expenses | 24,088 | 71,057 | 95,687 | 71,972 | |
Transportation expenses | 21,213 | 37,388 | 51,111 | 40,307 | |
Marketing expenses | 40,327 | 6,976 | 9,515 | 82,082 | |
General and administrative expenses | 92,395 | 34,458 | 44,869 | 137,174 | |
Exploration costs | 53 | 811 | 866 | 1,255 | |
Depreciation, depletion and amortization | 21,980 | 51,987 | 71,901 | 50,445 | |
Taxes, other than income taxes | 7,297 | 17,871 | 24,948 | 15,749 | |
(Gains) losses on sale of assets and other, net | (101,777) | (306,878) | (306,394) | (207,852) | |
Total expenses | 105,576 | (86,330) | (7,497) | 191,132 | |
Other income and (expenses): | |||||
Interest expense, net of amounts capitalized | (584) | (7,551) | (11,751) | (988) | |
Earnings (losses) from equity method investments | (9,327) | 91 | 130 | 16,018 | |
Other, net | 538 | (1,163) | (1,551) | 369 | |
Total other income and (expenses) | (9,373) | (8,623) | (13,172) | 15,399 | |
Reorganization items, net | (1,259) | (3,377) | (5,942) | (3,210) | |
Income (loss) from continuing operations before income taxes | 12,625 | 382,149 | 369,510 | 123,897 | |
Income tax expense (benefit) | 5,722 | 158,770 | 153,455 | 45,896 | |
Income (loss) from continuing operations | 6,903 | 223,379 | 216,055 | 78,001 | |
Income (loss) from discontinued operations, net of income taxes | 0 | (3,322) | (3,254) | 0 | |
Net income (loss) | 6,903 | 220,057 | 212,801 | 78,001 | |
Net income attributable to noncontrolling interests | 1,799 | 0 | 0 | 3,073 | |
Net income (loss) attributable to common stockholders/unitholders | $ 5,104 | $ 220,057 | $ 212,801 | $ 74,928 | |
Income (loss) from continuing operations per share/unit – Basic | $ 0.06 | $ 2.49 | $ 2.41 | $ 0.95 | |
Income (loss) from continuing operations per share/unit – Diluted | 0.06 | 2.47 | 2.40 | 0.93 | |
Income (loss) from discontinued operations per share/unit – Basic | 0 | (0.04) | (0.04) | 0 | |
Income (loss) from discontinued operations per share/unit – Diluted | 0 | (0.04) | (0.04) | 0 | |
Net income (loss) per share/unit – Basic | 0.06 | 2.45 | 2.37 | 0.95 | |
Net income (loss) per share/unit – Diluted | $ 0.06 | $ 2.43 | $ 2.36 | $ 0.93 | |
Weighted average shares/units outstanding – Basic | 78,718 | 89,849 | 89,849 | 78,817 | |
Weighted average shares/units outstanding – Diluted | 79,277 | 90,484 | 90,065 | 79,764 | |
Predecessor | |||||
Revenues and other: | |||||
Oil, natural gas and natural gas liquids sales | $ 188,885 | ||||
Gains (losses) on oil and natural gas derivatives | 92,691 | ||||
Marketing revenues | 6,636 | ||||
Other revenues | 9,915 | ||||
Total revenues | 298,127 | ||||
Expenses: | |||||
Lease operating expenses | 49,665 | ||||
Transportation expenses | 25,972 | ||||
Marketing expenses | 4,820 | ||||
General and administrative expenses | 71,745 | ||||
Exploration costs | 93 | ||||
Depreciation, depletion and amortization | 47,155 | ||||
Taxes, other than income taxes | 14,877 | ||||
(Gains) losses on sale of assets and other, net | 829 | ||||
Total expenses | 215,156 | ||||
Other income and (expenses): | |||||
Interest expense, net of amounts capitalized | (16,725) | ||||
Earnings (losses) from equity method investments | 157 | ||||
Other, net | (149) | ||||
Total other income and (expenses) | (16,717) | ||||
Reorganization items, net | 2,331,189 | ||||
Income (loss) from continuing operations before income taxes | 2,397,443 | ||||
Income tax expense (benefit) | (166) | ||||
Income (loss) from continuing operations | 2,397,609 | ||||
Income (loss) from discontinued operations, net of income taxes | (548) | ||||
Net income (loss) | 2,397,061 | ||||
Net income attributable to noncontrolling interests | 0 | ||||
Net income (loss) attributable to common stockholders/unitholders | $ 2,397,061 | ||||
Income (loss) from continuing operations per share/unit – Basic | $ 6.80 | ||||
Income (loss) from continuing operations per share/unit – Diluted | 6.80 | ||||
Income (loss) from discontinued operations per share/unit – Basic | (0.01) | ||||
Income (loss) from discontinued operations per share/unit – Diluted | (0.01) | ||||
Net income (loss) per share/unit – Basic | 6.79 | ||||
Net income (loss) per share/unit – Diluted | $ 6.79 | ||||
Weighted average shares/units outstanding – Basic | 352,792 | ||||
Weighted average shares/units outstanding – Diluted | 352,792 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Unaudited) Statement - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Amount | Additional Paid-in Capital | Accumulated Deficit | Total Common Stockholders’ Equity | Noncontrolling Interests |
Beginning of period (in shares) (Successor) at Dec. 31, 2017 | 83,582,000 | |||||
Beginning of period (Successor) at Dec. 31, 2017 | $ 84 | $ 1,899,642 | $ 432,860 | $ 2,332,586 | ||
Beginning of period at Dec. 31, 2017 | $ 2,332,586 | |||||
Beginning of period (Successor) at Dec. 31, 2017 | $ 18,971 | |||||
Beginning of period at Dec. 31, 2017 | 18,971 | |||||
Beginning of period (Successor) at Dec. 31, 2017 | 2,351,557 | |||||
Beginning of period at Dec. 31, 2017 | 2,351,557 | |||||
Net income | Successor | 74,928 | 0 | 0 | 74,928 | 74,928 | |
Net income | Successor | 3,073 | 3,073 | ||||
Net income | Successor | $ 78,001 | |||||
Issuances of successor Class A common stock | Successor | 811,000 | |||||
Issuances of successor Class A common stock | Successor | $ 0 | 0 | 0 | 0 | 0 | 0 |
Repurchases of successor Class A common stock | Successor | (8,429,000) | |||||
Repurchases of successor Class A common stock | Successor | $ (394,415) | (8) | (394,407) | 0 | (394,415) | 0 |
Settlement of equity classified RSUs | Successor | (58,162) | 0 | (58,162) | 0 | (58,162) | 0 |
Share-based compensation expenses | Successor | 25,132 | 0 | 25,132 | 0 | 25,132 | 0 |
Equity awards modified to liabilities | Successor | (70,550) | 0 | (70,550) | 0 | (70,550) | 0 |
Allocation of noncontrolling interest upon vesting of subsidiary units | Successor | 0 | 0 | (21,233) | 0 | (21,233) | 21,233 |
Distributions to noncontrolling interests | Successor | (8,367) | 0 | 0 | 0 | 0 | (8,367) |
Subsidiary equity transactions | Successor | 0 | 0 | 646 | 0 | 646 | (646) |
Other | Successor | $ 12,129 | 0 | 12,129 | 0 | 12,129 | 0 |
Dissolution of noncontrolling interests | Successor | 2,786,000 | |||||
Dissolution of noncontrolling interests | 2,785,681 | |||||
Dissolution of noncontrolling interests | Successor | 3 | |||||
Dissolution of noncontrolling interests | Successor | $ 0 | 34,261 | 0 | 34,264 | (34,264) | |
End of period (in shares) (Successor) at Jun. 30, 2018 | 78,750,000 | |||||
End of period (Successor) at Jun. 30, 2018 | $ 79 | $ 1,427,458 | $ 507,788 | $ 1,935,325 | ||
End of period at Jun. 30, 2018 | $ 1,935,325 | |||||
End of period (Successor) at Jun. 30, 2018 | $ 0 | |||||
End of period at Jun. 30, 2018 | 0 | |||||
End of period (Successor) at Jun. 30, 2018 | 1,935,325 | |||||
End of period at Jun. 30, 2018 | $ 1,935,325 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 6 Months Ended |
Feb. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Successor | |||
Cash flow from operating activities: | |||
Net income | $ 212,801 | $ 78,001 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss from discontinued operations | 3,254 | 0 | |
Depreciation, depletion and amortization | 71,901 | 50,445 | |
Deferred income taxes | 131,055 | 46,031 | |
(Gains) losses on oil and natural gas derivatives | (33,755) | 22,555 | |
Cash settlements on derivatives | 7,929 | (25,037) | |
Share-based compensation expenses | 19,599 | 66,374 | |
Amortization and write-off of deferred financing fees | 82 | 824 | |
(Gains) losses on sale of assets and other, net | (293,800) | (224,091) | |
Reorganization items, net | 0 | 0 | |
Changes in assets and liabilities: | |||
(Increase) decrease in accounts receivable – trade, net | 27,212 | 76,465 | |
(Increase) decrease in other assets | (9,146) | 35,828 | |
Increase (decrease) in accounts payable and accrued expenses | (89,755) | (52,538) | |
Increase (decrease) in other liabilities | 22,421 | (22,955) | |
Net cash provided by operating activities – continuing operations | 69,798 | 51,902 | |
Net cash provided by operating activities – discontinued operations | 13,966 | 0 | |
Net cash provided by operating activities | 83,764 | 51,902 | |
Cash flow from investing activities: | |||
Development of oil and natural gas properties | (61,534) | (45,938) | |
Purchases of other property and equipment | (27,287) | (87,377) | |
Proceeds from sale of properties and equipment and other | 697,829 | 369,489 | |
Net cash provided by (used in) investing activities – continuing operations | 609,008 | 236,174 | |
Net cash used in investing activities – discontinued operations | (1,645) | 0 | |
Net cash provided by (used in) investing activities | 607,363 | 236,174 | |
Cash flow from financing activities: | |||
Proceeds from rights offerings, net | 0 | 0 | |
Repurchases of shares | 0 | (393,647) | |
Proceeds from borrowings | 160,000 | 0 | |
Repayments of debt | (876,570) | 0 | |
Payment to holders of claims under the Predecessor’s second lien notes | 0 | 0 | |
Distributions to noncontrolling interests | (2,973) | (12,174) | |
Cash settlements of equity classified RSUs | 0 | (58,162) | |
Other | (87) | (294) | |
Net cash used in financing activities – continuing operations | (719,630) | (464,277) | |
Net cash used in financing activities – discontinued operations | 0 | 0 | |
Net cash used in financing activities | (719,630) | (464,277) | |
Net decrease in cash, cash equivalents and restricted cash | (28,503) | (176,201) | |
Cash, cash equivalents and restricted cash: | |||
Ending | $ 144,022 | $ 115,519 | $ 344,752 |
Predecessor | |||
Cash flow from operating activities: | |||
Net income | 2,397,061 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss from discontinued operations | 548 | ||
Depreciation, depletion and amortization | 47,155 | ||
Deferred income taxes | (166) | ||
(Gains) losses on oil and natural gas derivatives | (92,691) | ||
Cash settlements on derivatives | (11,572) | ||
Share-based compensation expenses | 50,255 | ||
Amortization and write-off of deferred financing fees | 1,338 | ||
(Gains) losses on sale of assets and other, net | 1,069 | ||
Reorganization items, net | (2,359,364) | ||
Changes in assets and liabilities: | |||
(Increase) decrease in accounts receivable – trade, net | (7,216) | ||
(Increase) decrease in other assets | 528 | ||
Increase (decrease) in accounts payable and accrued expenses | 20,949 | ||
Increase (decrease) in other liabilities | 2,801 | ||
Net cash provided by operating activities – continuing operations | 50,695 | ||
Net cash provided by operating activities – discontinued operations | 8,781 | ||
Net cash provided by operating activities | 59,476 | ||
Cash flow from investing activities: | |||
Development of oil and natural gas properties | (50,597) | ||
Purchases of other property and equipment | (7,409) | ||
Proceeds from sale of properties and equipment and other | (166) | ||
Net cash provided by (used in) investing activities – continuing operations | (58,172) | ||
Net cash used in investing activities – discontinued operations | (584) | ||
Net cash provided by (used in) investing activities | (58,756) | ||
Cash flow from financing activities: | |||
Proceeds from rights offerings, net | 514,069 | ||
Repurchases of shares | 0 | ||
Proceeds from borrowings | 0 | ||
Repayments of debt | (1,038,986) | ||
Payment to holders of claims under the Predecessor’s second lien notes | (30,000) | ||
Distributions to noncontrolling interests | 0 | ||
Cash settlements of equity classified RSUs | 0 | ||
Other | (6,015) | ||
Net cash used in financing activities – continuing operations | (560,932) | ||
Net cash used in financing activities – discontinued operations | 0 | ||
Net cash used in financing activities | (560,932) | ||
Net decrease in cash, cash equivalents and restricted cash | (560,212) | ||
Cash, cash equivalents and restricted cash: | |||
Ending | $ 144,022 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation When referring to Linn Energy, Inc. (“Successor,” “LINN Energy” or the “Company”), the intent is to refer to LINN Energy, a Delaware corporation formed in February 2017, and its then consolidated subsidiaries as a whole or on an individual basis, depending on the context in which the statements are made. During the reporting period Linn Energy, Inc. was a successor issuer of Linn Energy, LLC pursuant to Rule 15d‑5 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Linn Energy, Inc. was not a successor of Linn Energy, LLC for purposes of Delaware corporate law. When referring to the “Predecessor” in reference to the period prior to the emergence from bankruptcy, the intent is to refer to Linn Energy, LLC, the predecessor that will be dissolved following the effective date of the Plan (as defined in Note 2) and resolution of all outstanding claims, and its consolidated subsidiaries as a whole or on an individual basis, depending on the context in which the statements are made. As discussed under Holding Company Reorganization below in this Note 1, subsequent to the reporting period, on July 25, 2018, the Company completed a corporate reorganization pursuant to which LINN Energy merged with and into Linn Merger Sub #1, LLC (“Merger Sub”), a newly formed Delaware limited liability company and wholly owned subsidiary of New LINN Inc., a newly formed Delaware corporation (“New LINN”), with Merger Sub surviving such merger (the “Merger”). Immediately following the Merger, New LINN changed its name to “Linn Energy, Inc.” For purposes of Rule 15d-5 under the Exchange Act, New LINN is the successor registrant to LINN Energy. The reference to “Berry” herein refers to Berry Petroleum Company, LLC, which was an indirect 100% wholly owned subsidiary of the Predecessor through February 28, 2017. Berry was deconsolidated effective December 3, 2016. The reference to “LinnCo” herein refers to LinnCo, LLC, which was an affiliate of the Predecessor. Nature of Business LINN Energy was formed in February 2017, in connection with the reorganization of the Predecessor. The Predecessor was publicly traded from January 2006 to February 2017. As discussed further in Note 2, on May 11, 2016 (the “Petition Date”), Linn Energy, LLC, certain of its direct and indirect subsidiaries, and LinnCo (collectively, the “LINN Debtors”) and Berry (collectively with the LINN Debtors, the “Debtors”), filed voluntary petitions (“Bankruptcy Petitions”) for relief under Chapter 11 of the U.S. Bankruptcy Code (“Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”). The Debtors’ Chapter 11 cases were administered jointly under the caption In re Linn Energy, LLC, et al., Case No. 16-60040. During the pendency of the Chapter 11 proceedings, the Debtors operated their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. The Company emerged from bankruptcy effective February 28, 2017. Prior to the Spin-off (as defined below), the Company’s upstream properties were located in six operating regions in the United States (“U.S.”): the Hugoton Basin, East Texas, North Louisiana, Michigan/Illinois, the Rockies and the Mid-Continent. The Company’s midstream business consisted of the Chisholm Trail gas plant system (“Chisholm Trail”) which is comprised of the newly constructed cryogenic natural gas processing facility, a refrigeration plant, and a network of gathering pipelines located in the Merge/SCOOP/STACK play. The Company also owns a 50% equity interest in Roan Resources LLC (“Roan”), which is focused on the accelerated development of the Merge/SCOOP/STACK play in Oklahoma. During 2018, the Company divested all of its properties located in the previous Permian Basin operating region. During 2017, the Company divested all of its properties located in the previous California and South Texas operating regions. Holding Company Reorganization On July 25, 2018, in accordance with Section 251(g) of the Delaware General Corporation Law, LINN Energy merged with and into Merger Sub, a newly formed Delaware limited liability company and wholly owned subsidiary of New LINN, with Merger Sub surviving the Merger. The Merger was completed pursuant to the terms of an Agreement and Plan of Merger by and among LINN Energy, New LINN and Merger Sub, dated July 25, 2018 (the “Merger Agreement”). Pursuant to the Merger Agreement, at the effective time of the Merger, all outstanding shares of Class A common stock of LINN Energy were automatically converted into identical shares of Class A common stock of New LINN on a one-for-one basis, and LINN Energy’s existing stockholders became stockholders of New LINN in the same amounts and percentages as they were in LINN Energy immediately prior to the Merger. Spin-Off Transactions In April 2018, the Company announced its intention to separate its then wholly owned subsidiary, Riviera Resources, LLC (together with its corporate successor, “Riviera”) from LINN Energy. To effect the separation, Linn Energy, Inc. and certain of its direct and indirect subsidiaries undertook an internal reorganization (including the conversion of Riviera from a limited liability company to a corporation), following which Riviera Resources, Inc. holds, directly or through its subsidiaries, substantially all of the assets of LINN Energy, other than LINN Energy’s 50% equity interest in Roan. Following the internal reorganization, Linn Energy, Inc. distributed all of the outstanding shares of common stock of Riviera to LINN Energy stockholders on a pro rata basis (the “Spin-off”). Following the Spin-off, Riviera Resources, Inc. is an independent reporting company quoted for trading on the OTC Market under the ticker “RVRA.” LINN Energy did not retain any ownership interest in Riviera and will remain a reporting company quoted for trading on the OTCQB Market under the symbol “LNGG.” The Spin-off was completed on August 7, 2018. Principles of Consolidation and Reporting The information reported herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted under Securities and Exchange Commission rules and regulations; as such, this report should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The results reported in these unaudited condensed consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The condensed consolidated financial statements include the accounts of the Company and its pre-Spin-off subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. Noncontrolling interests represented ownership in the net assets of the Company’s previous consolidated subsidiary, Linn Energy Holdco LLC (“Holdco”), not attributable to LINN Energy, and were presented as a component of equity. Changes in the Company’s ownership interests in Holdco that did not result in deconsolidation were recognized in equity. Effective April 10, 2018, all outstanding Class A‑2 units in Holdco (“Holdco Class A-2 units”) were converted into Class A common stock in LINN Energy in accordance with the terms of Holdco’s Limited Liability Company Operating Agreement (the “Holdco LLC Agreement”) and the noncontrolling interest was dissolved. See Note 13 for additional information about noncontrolling interests. Investments in noncontrolled entities over which the Company exercises significant influence are accounted for under the equity method. See Note 6 for additional information about equity method investments. The condensed consolidated financial statements for previous periods include certain reclassifications that were made to conform to current presentation. Such reclassifications have no impact on previously reported net income (loss) or stockholders equity. As a result of the adoption of ASU 2016-18 and the inclusion of restricted cash in the statements of cash flows, previously reported net cash provided by operating activities and cash provided by investing activities have been updated to conform to current presentation. See recently adopted accounting standards below for additional information. Bankruptcy Accounting Upon emergence from bankruptcy on February 28, 2017, the Company adopted fresh start accounting which resulted in the Company becoming a new entity for financial reporting purposes. As a result of the adoption of fresh start accounting and the effects of the implementation of the Plan, the Company’s condensed consolidated financial statements subsequent to February 28, 2017, are not comparable to its condensed consolidated financial statements prior to February 28, 2017. References to “Successor” relate to the financial position and results of operations of the reorganized Company subsequent to February 28, 2017. References to “Predecessor” relate to the financial position of the Company prior to, and results of operations through and including, February 28, 2017. The Company’s condensed consolidated financial statements and related footnotes are presented with a black line division, which delineates the lack of comparability between amounts presented after February 28, 2017, and amounts presented on or prior to February 28, 2017. See Note 2 for additional information. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. The estimates that are particularly significant to the financial statements include estimates of the Company’s reserves of oil, natural gas and natural gas liquids (“NGL”), future cash flows from oil and natural gas properties, depreciation, depletion and amortization, asset retirement obligations, certain revenues and operating expenses, and fair values of commodity derivatives. In addition, as part of fresh start accounting, the Company made estimates and assumptions related to its reorganization value, liabilities subject to compromise, the fair value of assets and liabilities recorded as a result of the adoption of fresh start accounting and income taxes. As fair value is a market-based measurement, it is determined based on the assumptions that market participants would use. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Any changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Recently Adopted Accounting Standards In November 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that is intended to address diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The Company adopted this ASU on January 1, 2018, on a retrospective basis. The adoption of this ASU resulted in the inclusion of restricted cash in the beginning and ending balances of cash on the statements of cash flows and disclosure reconciling cash and cash equivalents presented on the balance sheets to cash, cash equivalents and restricted cash on the statement of cash flows (see Note 17). In May 2014, the FASB issued an ASU that is intended to improve and converge the financial reporting requirements for revenue from contracts with customers (“ASC 606”). The Company adopted this ASU on January 1, 2018, using the modified retrospective transition method. Accordingly, the comparative information for the six months ended June 30, 2017 , has not been adjusted and continues to be reported under the previous revenue standard. The adoption of this ASU impacted the Company’s gross revenues and expenses as reported on its condensed consolidated statements of operations (see below), and resulted in increased disclosures regarding the Company’s disaggregation of revenue (see Note 3). Under ASC 606, the Company recognizes revenues based on a determination of when control of its commodities is transferred and whether it is acting as a principal or agent in certain transactions. All facts and circumstances of an arrangement are considered and judgment is often required in making this determination. For its natural gas contracts, the Company generally records its sales at the wellhead or inlet of the plant as revenues net of transportation, gathering and processing expenses if the processor is the customer and there is no redelivery of commodities to the Company. Conversely, the Company generally records its sales at the tailgate of the plant on a gross basis along with the associated transportation, gathering and processing expenses if the processor is a service provider and there is redelivery of commodities to the Company. In addition, the Company recognizes revenues for commodities received as noncash consideration in exchange for services provided by its midstream operations and revenues and associated cost of product for the subsequent sale of those same commodities. This recognition results in an increase to revenues and expenses with no material impact on net income. The items discussed above impacted the Company’s reported “oil, natural gas and natural gas liquids sales,” “marketing revenues,” “other revenues,” “transportation expenses,” “marketing expenses” and “interest expense.” The impact of adoption on the Company’s current period results is as follows: Three Months Ended June 30, 2018 Under ASC 606 Under Prior Rule Increase/ (Decrease) (in thousands) Revenues: Natural gas sales $ 53,662 $ 53,285 $ 377 Oil sales 10,919 10,919 — NGL sales 22,423 22,280 143 Total oil, natural gas and NGL sales 87,004 86,484 520 Marketing revenues 42,967 25,406 17,561 Other revenues 6,387 6,003 384 136,358 117,893 18,465 Expenses: Transportation expenses 21,213 20,693 520 Marketing expenses 40,327 22,766 17,561 Interest expense 584 420 164 Net income $ 6,903 $ 6,683 $ 220 Six Months Ended June 30, 2018 Under ASC 606 Under Prior Rule Increase/ (Decrease) (in thousands) Revenues: Natural gas sales $ 116,990 $ 117,794 $ (804 ) Oil sales 56,615 56,615 — NGL sales 50,275 50,222 53 Total oil, natural gas and NGL sales 223,880 224,631 (751 ) Marketing revenues 89,234 53,521 35,713 Other revenues 12,281 11,676 605 325,395 289,828 35,567 Expenses: Transportation expenses 40,307 41,058 (751 ) Marketing expenses 82,082 46,369 35,713 Interest expense 988 824 164 Net income $ 78,001 $ 77,560 $ 441 New Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued an ASU that is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those years (early adoption permitted). The Company is currently evaluating the impact of the adoption of this ASU on its financial statements and related disclosures. The Company expects the adoption of this ASU to impact its balance sheet resulting from an increase in both assets and liabilities related to the Company’s leasing activities. |
Emergence From Voluntary Reorga
Emergence From Voluntary Reorganization Under Chapter 11 and Fresh Start Accounting | 6 Months Ended |
Jun. 30, 2018 | |
Emergence From Voluntary Reorganization Under Chapter 11 [Abstract] | |
Emergence From Voluntary Reorganization Under Chapter 11 and Fresh Start Accounting | Emergence From Voluntary Reorganization Under Chapter 11 and Fresh Start Accounting On the Petition Date, the Debtors filed Bankruptcy Petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The Debtors’ Chapter 11 cases were administered jointly under the caption In re Linn Energy, LLC, et al., Case No. 16‑60040. On December 3, 2016, the LINN Debtors filed the Amended Joint Chapter 11 Plan of Reorganization of Linn Energy, LLC and Its Debtor Affiliates Other Than Linn Acquisition Company, LLC (“LAC”) and Berry Petroleum Company, LLC (the “Plan”). The LINN Debtors subsequently filed amended versions of the Plan with the Bankruptcy Court. On December 13, 2016, LAC and Berry filed the Amended Joint Chapter 11 Plan of Reorganization of Linn Acquisition Company, LLC and Berry Petroleum Company, LLC (the “Berry Plan” and together with the Plan, the “Plans”). LAC and Berry subsequently filed amended versions of the Berry Plan with the Bankruptcy Court. On January 27, 2017, the Bankruptcy Court entered an order approving and confirming the Plans (the “Confirmation Order”). On February 28, 2017 (the “Effective Date”), the Debtors satisfied the conditions to effectiveness of the respective Plans, the Plans became effective in accordance with their respective terms and LINN Energy and Berry emerged from bankruptcy as stand-alone, unaffiliated entities. Reorganization Items, Net The Company incurred significant costs and recognized significant gains associated with the reorganization. Reorganization items represent costs and income directly associated with the Chapter 11 proceedings since the Petition Date, and also include adjustments to reflect the carrying value of certain liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments were determined. The following table summarizes the components of reorganization items included on the condensed consolidated statements of operations: Successor Three Months Ended June 30, 2018 2017 (in thousands) Legal and other professional advisory fees $ (1,255 ) $ (3,446 ) Other (4 ) 69 Reorganization items, net $ (1,259 ) $ (3,377 ) Successor Predecessor Six Months Ended June 30, 2018 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) Gain on settlement of liabilities subject to compromise $ — $ — $ 3,724,750 Recognition of an additional claim for the Predecessor’s second lien notes settlement — — (1,000,000 ) Fresh start valuation adjustments — — (591,525 ) Income tax benefit related to implementation of the Plan — — 264,889 Legal and other professional fees (3,207 ) (6,016 ) (46,961 ) Terminated contracts — — (6,915 ) Other (3 ) 74 (13,049 ) Reorganization items, net $ (3,210 ) $ (5,942 ) $ 2,331,189 Fresh Start Accounting Upon the Company’s emergence from Chapter 11 bankruptcy, it adopted fresh start accounting in accordance with the provisions of Accounting Standards Codification 852 “Reorganizations” (“ASC 852”), which resulted in the Company becoming a new entity for financial reporting purposes. In accordance with ASC 852, the Company was required to adopt fresh start accounting upon its emergence from Chapter 11 because (i) the holders of existing voting ownership interests of the Predecessor received less than 50% of the voting shares of the Successor and (ii) the reorganization value of the Company’s assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims. Upon adoption of fresh start accounting, the reorganization value derived from the enterprise value as disclosed in the Plan was allocated to the Company’s assets and liabilities based on their fair values (except for deferred income taxes) in accordance with ASC 805 “Business Combinations.” The amount of deferred income taxes recorded was determined in accordance with ASC 740 “Income Taxes.” The Effective Date fair values of the Company’s assets and liabilities differed materially from their recorded values as reflected on the historical balance sheet. The effects of the Plan and the application of fresh start accounting were reflected on the condensed consolidated balance sheet as of February 28, 2017, and the related adjustments thereto were recorded on the condensed consolidated statement of operations for the two months ended February 28, 2017. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue from Contracts with Customers The Company recognized sales of oil, natural gas and NGL when it satisfied a performance obligation by transferring control of the product to a customer, in an amount that reflected the consideration to which the Company expected to be entitled in exchange for the product. Natural Gas and NGL Sales The Company’s natural gas production was primarily sold under market-sensitive contracts that were typically priced at a differential to the published natural gas index price for the producing area due to the natural gas quality and the proximity to major consuming markets. For its natural gas contracts, the Company generally recorded its wet gas sales at the wellhead or inlet of the plant as revenues net of transportation, gathering and processing expenses, and its residual natural gas and NGL sales at the tailgate of the plant on a gross basis along with the associated transportation, gathering and processing expenses. All facts and circumstances of an arrangement were considered and judgment was often required in making this determination. Oil Sales The Company’s oil production was primarily sold under market-sensitive contracts that were typically priced at a differential to the New York Mercantile Exchange (“NYMEX”) price or at purchaser posted prices for the producing area. For its oil contracts, the Company generally recorded its sales based on the net amount received. Production Imbalances The Company used the sales method to account for natural gas production imbalances. If the Company’s sales volumes for a well exceeded the Company’s proportionate share of production from the well, a liability was recognized to the extent that the Company’s share of estimated remaining recoverable reserves from the well was insufficient to satisfy this imbalance. No receivables were recorded for those wells on which the Company had taken less than its proportionate share of production. Marketing Revenues The Company engaged in the purchase, gathering and transportation of third-party natural gas and subsequently marketed such natural gas to independent purchasers under separate arrangements. As such, the Company separately reported third-party marketing revenues and marketing expenses. Disaggregation of Revenue The following tables present the Company’s disaggregated revenues by source and geographic area: Three Months Ended June 30, 2018 Natural Gas Oil NGL Oil, Natural Gas and NGL Sales Marketing Revenues Other Revenues Total (in thousands) Hugoton Basin $ 17,401 $ 238 $ 16,875 $ 34,514 $ 22,421 $ 6,303 $ 63,238 Mid-Continent 7,622 4,880 3,307 15,809 — 25 15,834 East Texas 12,661 1,091 1,013 14,765 467 3 15,235 Permian Basin 256 546 (488 ) 314 — 16 330 Rockies 2,146 1,885 1,201 5,232 — 1 5,233 North Louisiana 6,040 1,480 503 8,023 13 2 8,038 Michigan/Illinois 7,536 799 12 8,347 — 37 8,384 Chisholm Trail — — — — 20,066 — 20,066 Total $ 53,662 $ 10,919 $ 22,423 $ 87,004 $ 42,967 $ 6,387 $ 136,358 Six Months Ended June 30, 2018 Natural Gas Oil NGL Oil, Natural Gas and NGL Sales Marketing Revenues Other Revenues Total (in thousands) Hugoton Basin $ 39,764 $ 2,970 $ 36,389 $ 79,123 $ 46,501 $ 12,134 $ 137,758 Mid-Continent 15,555 16,747 6,361 38,663 — 39 38,702 East Texas 27,437 2,431 2,319 32,187 503 8 32,698 Permian Basin 2,282 20,654 2,557 25,493 — 32 25,525 Rockies 5,526 9,255 2,559 17,340 — (1 ) 17,339 North Louisiana 12,418 3,049 67 15,534 272 3 15,809 Michigan/Illinois 14,008 1,509 23 15,540 — 66 15,606 Chisholm Trail — — — — 41,958 — 41,958 Total $ 116,990 $ 56,615 $ 50,275 $ 223,880 $ 89,234 $ 12,281 $ 325,395 Contract Balances Under the Company’s product sales contracts, its customers were invoiced once the Company’s performance obligations had been satisfied, at which point payment was unconditional. Accordingly, the Company’s product sales contracts did not give rise to material contract assets or contract liabilities. The Company had trade accounts receivable related to revenue from contracts with customers of approximately $56 million and $117 million as of June 30, 2018 , and December 31, 2017 , respectively. Performance Obligations The majority of the Company’s sales were short-term in nature with a contract term of one year or less. For those contracts, the Company utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation was part of a contract that had an original expected duration of one year or less. For the Company’s product sales that had a contract term greater than one year, the Company utilized the practical expedient in ASC 606-10-50-14(A) which states the Company was not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration was allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represented a separate performance obligation; therefore future volumes were wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations was not required. |
Divestitures and Discontinued O
Divestitures and Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Divestitures and Discontinued Operations | Divestitures and Discontinued Operations Divestitures – 2018 On April 10, 2018, the Company completed the sale of its conventional properties located in New Mexico. Cash proceeds received from the sale of these properties were approximately $15 million and the Company recognized a net gain of approximately $11 million . On April 4, 2018, the Company completed the sale of its interest in properties located in the Altamont Bluebell Field in Utah (the “Altamont Bluebell Assets Sale”). Cash proceeds received from the sale of these properties were approximately $132 million , net of costs to sell of approximately $2 million , and the Company recognized a net gain of approximately $83 million . On March 29, 2018, the Company completed the sale of its interest in conventional properties located in west Texas. Cash proceeds received from the sale of these properties were approximately $107 million , net of costs to sell of approximately $2 million , and the Company recognized a net gain of approximately $55 million . On February 28, 2018, the Company completed the sale of its Oklahoma waterflood and Texas Panhandle properties (the “Oklahoma and Texas Assets Sale”). Cash proceeds received from the sale of these properties were approximately $112 million (including a deposit of approximately $12 million received in 2017), net of costs to sell of approximately $1 million , and the Company recognized a net gain of approximately $46 million . The divestitures discussed above are not presented as discontinued operations because they do not represent a strategic shift that will have a major effect on the Company’s operations and financial results. The gains on these divestitures are included in “(gains) losses on sale of assets and other, net” on the condensed consolidated statements of operations and were part of the upstream segment. The assets and liabilities associated with the Oklahoma and Texas Assets Sale were classified as “held for sale” on the condensed consolidated balance sheet at December 31, 2017. At December 31, 2017, the Company’s condensed consolidated balance sheet included current assets of approximately $107 million included in “assets held for sale” and current liabilities of approximately $43 million included in “liabilities held for sale” related to this transaction. The following table presents carrying amounts of the assets and liabilities of the Company’s properties classified as held for sale on the condensed consolidated balance sheet: December 31, 2017 (in thousands) Assets: Oil and natural gas properties $ 92,245 Other property and equipment 12,983 Other 1,735 Total assets held for sale $ 106,963 Liabilities: Asset retirement obligations $ 42,001 Other 1,301 Total liabilities held for sale $ 43,302 Other assets primarily include inventories and other liabilities primarily include accounts payable. Divestitures – 2017 On June 30, 2017 , the Company completed the sale of its interest in properties located in the Salt Creek Field in Wyoming to Denbury Resources Inc. (the “Salt Creek Assets Sale”). Cash proceeds received from the sale of these properties were approximately $76 million and the Company recognized a net gain of approximately $22 million . On May 31, 2017, the Company completed the sale of its interest in properties located in western Wyoming to Jonah Energy LLC (the “Jonah Assets Sale”). Cash proceeds received from the sale of these properties were approximately $560 million , net of costs to sell of approximately $6 million , and the Company recognized a net gain of approximately $279 million . The gains on these divestitures are included in “(gains) losses on sale of assets and other, net” on the condensed consolidated statements of operations. Discontinued Operations During 2017, the Company completed the sale of its interest in properties located in the San Joaquin Basin and the Los Angeles Basin in California. As a result of the Company’s strategic exit from California, the Company classified the results of operations and cash flows of its California properties as discontinued operations on its condensed consolidated financial statements. The California properties were included in the upstream segment. The following tables present summarized financial results of the Company’s California properties classified as discontinued operations on the condensed consolidated statements of operations: Successor Predecessor Three Months Ended June 30, 2017 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) Revenues and other $ 20,511 $ 27,636 $ 14,891 Expenses 25,935 30,344 13,758 Other income and (expenses) (2,074 ) (2,791 ) (1,681 ) Loss from discontinued operations before income taxes (7,498 ) (5,499 ) (548 ) Income tax benefit (4,176 ) (2,245 ) — Loss from discontinued operations, net of income taxes $ (3,322 ) $ (3,254 ) $ (548 ) Other income and (expenses) include an allocation of interest expense for the California properties which represents interest on debt that was required to be repaid as a result of the sales. Berry Transition Services and Separation Agreement On the Effective Date, Berry entered into a Transition Services and Separation Agreement (the “TSSA”) with LINN Energy and certain of its subsidiaries to facilitate the separation of Berry’s operations from LINN Energy’s operations. Pursuant to the TSSA, LINN Energy continued to provide, or caused to be provided, certain administrative, management, operating, and other services and support to Berry during a transitional period following the Effective Date (the “Transition Services”). Under the TSSA, Berry reimbursed LINN Energy for any and all reasonable, third-party out-of-pocket costs and expenses, without markup, actually incurred by LINN Energy, to the extent documented, in connection with providing the Transition Services. Additionally, Berry paid to LINN Energy a management fee of $6 million per month, prorated for partial months, during the period from the Effective Date through the last day of the second full calendar month after the Effective Date (the “Transition Period”) and paid $2.7 million per month, prorated for partial months, from the first day following the Transition Period through the last day of the second full calendar month thereafter (the “Accounting Period”). During the Accounting Period, the scope of the Transition Services was reduced to specified accounting and administrative functions. The Transition Period ended April 30, 2017, and the Accounting Period ended June 30, 2017 . |
Oil and Natural Gas Properties
Oil and Natural Gas Properties | 6 Months Ended |
Jun. 30, 2018 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Oil and Natural Gas Properties | Oil and Natural Gas Properties Oil and Natural Gas Capitalized Costs Aggregate capitalized costs related to oil, natural gas and NGL production activities with applicable accumulated depletion and amortization are presented below: June 30, 2018 December 31, 2017 (in thousands) Proved properties $ 739,656 $ 904,390 Unproved properties 46,159 45,693 785,815 950,083 Less accumulated depletion and amortization (59,870 ) (49,619 ) $ 725,945 $ 900,464 |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments [Abstract] | |
Equity Method Investments | Equity Method Investments On August 31, 2017, the Company, through certain of its subsidiaries, completed the transaction in which LINN Energy and Citizen Energy II, LLC (“Citizen”) each contributed certain upstream assets located in Oklahoma to a newly formed company, Roan (the contribution, the “Roan Contribution”), focused on the accelerated development of the Merge/SCOOP/STACK play. In exchange for their respective contributions, LINN Energy and Citizen each received a 50% equity interest in Roan. The Company uses the equity method of accounting for its investment in Roan. The Company’s equity earnings (losses) consists of its share of Roan’s earnings or losses and the amortization of the difference between the Company’s investment in Roan and Roan’s underlying net assets attributable to certain assets. At both June 30, 2018 , and December 31, 2017 , the Company owned 50% of Roan’s outstanding units. At June 30, 2018 , the carrying amount of the Company’s investment in Roan of approximately $466 million was less than the Company’s ownership interest in Roan’s underlying net assets by approximately $355 million . The difference is attributable to proved and unproved oil and natural gas properties and is amortized over the lives of the related assets. Such amortization is included in the equity earnings (losses) from the Company’s investment in Roan. At December 31, 2017, the carrying amount of the Company’s investment in Roan of approximately $458 million was less than the Company’s ownership interest in Roan’s underlying net assets by approximately $346 million . Impairment testing on the Company’s investment in Roan is performed when events or circumstances warrant such testing and considers whether there is an inability to recover the carrying value of the investment that is other than temporary. No impairments occurred with respect to the Company’s investment in Roan for the six months ended June 30, 2018 . Following is summarized statements of operations information for Roan. Summarized Roan Resources LLC Statements of Operations Information Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands) Revenues and other $ 44,789 $ 145,873 Expenses 72,754 130,663 Other income and (expenses) (1,087 ) (2,886 ) Net income (loss) $ (29,052 ) $ 12,324 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility On August 4, 2017, the Company entered into a credit agreement with its then subsidiary, Linn Energy Holdco II LLC (“Holdco II”), as borrower, Royal Bank of Canada, as administrative agent, and the lenders and agents party thereto, providing for a new senior secured reserve-based revolving loan facility (the “Credit Facility”) with $500 million in borrowing commitments and an initial borrowing base of $500 million . On April 30, 2018, the Company entered into an amendment to the Credit Facility which, among other things, modified the borrowing base and maximum borrowing commitment amount to $425 million . As of June 30, 2018 , there were no borrowings outstanding under the Credit Facility and there was approximately $378 million of available borrowing capacity (which includes a $47 million reduction for outstanding letters of credit). The maturity date is August 4, 2020. Pursuant to the Spin-off, Holdco II became a subsidiary of Riviera and as such, Riviera and its subsidiaries have assumed all obligations under the Credit Facility. Redetermination of the borrowing base under the Credit Facility, based primarily on reserve reports using lender commodity price expectations at such time, occurs semi-annually, in April and October. At the Company’s election, interest on borrowings under the Credit Facility is determined by reference to either the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging from 2.50% to 3.50% per annum or the alternate base rate (“ABR”) plus an applicable margin ranging from 1.50% to 2.50% per annum, depending on utilization of the borrowing base. Interest is generally payable in arrears quarterly for loans bearing interest based at the ABR and at the end of the applicable interest period for loans bearing interest at the LIBOR, or if such interest period is longer than three months, at the end of the three month intervals during such interest period. The Company is required to pay a commitment fee to the lenders under the Credit Facility, which accrues at a rate per annum of 0.50% on the average daily unused amount of the available revolving loan commitments of the lenders. The obligations under the Credit Facility are secured by mortgages covering approximately 85% of the total value of the proved reserves of the oil and natural gas properties of the Company and certain of its subsidiaries, along with liens on substantially all personal property of the Company and certain of its subsidiaries, and are guaranteed by the Company, Holdco and certain of Holdco II’s subsidiaries, subject to customary exceptions. Under the Credit Facility, the Company is required to maintain (i) a maximum total net debt to last twelve months EBITDA ratio of 4.0 to 1.0 , and (ii) a minimum adjusted current ratio of 1.0 to 1.0 . The Credit Facility also contains affirmative and negative covenants, including as to compliance with laws (including environmental laws, ERISA and anti-corruption laws), maintenance of required insurance, delivery of quarterly and annual financial statements, oil and gas engineering reports and budgets, maintenance and operation of property (including oil and gas properties), restrictions on the incurrence of liens and indebtedness, mergers, consolidations and sales of assets, paying dividends or other distributions in respect of, or repurchasing or redeeming, the Company’s capital stock, making certain investments and transactions with affiliates. The Credit Facility contains events of default and remedies customary for credit facilities of this nature. Failure to comply with the financial and other covenants in the Credit Facility would allow the lenders, subject to customary cure rights, to require immediate payment of all amounts outstanding under the Credit Facility. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Commodity Derivatives Historically, the Company has hedged a portion of its forecasted production to reduce exposure to fluctuations in oil and natural gas prices and provide long-term cash flow predictability to manage its business. The current direct NGL hedging market is constrained in terms of price, volume, duration and number of counterparties, which limits the Company’s ability to effectively hedge its NGL production. The Company has also hedged its exposure to differentials in certain operating areas but does not currently hedge exposure to oil or natural gas differentials. The Company has historically entered into commodity hedging transactions primarily in the form of swap contracts that are designed to provide a fixed price, collars and, from time to time, put options that are designed to provide a fixed price floor with the opportunity for upside. The Company enters into these transactions with respect to a portion of its projected production to provide an economic hedge of the risk related to the future commodity prices received or paid. The Company does not enter into derivative contracts for trading purposes. The Company did not designate any of its contracts as cash flow hedges; therefore, the changes in fair value of these instruments are recorded in current earnings. See Note 9 for fair value disclosures about oil and natural gas commodity derivatives. The following table presents derivative positions for the periods indicated as of June 30, 2018 : July 1 – December 31, 2018 2019 Natural gas positions: Fixed price swaps (NYMEX Henry Hub): Hedged volume (MMMBtu) 35,144 22,265 Average price ($/MMBtu) $ 3.02 $ 2.89 Oil positions: Fixed price swaps (NYMEX WTI): Hedged volume (MBbls) 276 183 Average price ($/Bbl) $ 54.07 $ 64.00 Natural gas basis differential positions: (1) PEPL basis swaps: Hedged volume (MMMBtu) 7,360 14,600 Hedge differential $ (0.67 ) $ (0.67 ) NGPL TXOK basis swaps: Hedged volume (MMMBtu) 1,840 — Hedge differential $ (0.19 ) $ — (1) Settled or to be settled, as applicable, on the indicated pricing index to hedge basis differential to the NYMEX Henry Hub natural gas price. During the six months ended June 30, 2018 , the Company entered into commodity derivative contracts consisting of natural gas basis swaps for March 2018 through December 2019, natural gas fixed price swaps for January 2019 through December 2019 and oil fixed price swaps for January 2019 through December 2019. During the four months ended June 30, 2017 , the Company entered into commodity derivative contracts consisting of oil fixed price swaps for January 2018 through December 2018 and natural gas fixed price swaps for January 2018 through December 2019. The Company did not enter into any commodity derivative contracts during the two months ended February 28, 2017. In April 2018, in connection with the closing of the Altamont Bluebell Assets Sale, the Company canceled its oil collars for 2018 and 2019. The Company paid net cash settlements of approximately $20 million for the cancellations. The natural gas derivatives are settled based on the closing price of NYMEX Henry Hub natural gas on the last trading day for the delivery month, which occurs on the third business day preceding the delivery month, or the relevant index prices of natural gas published in Inside FERC’s Gas Market Report on the first business day of the delivery month. The oil derivatives are settled based on the average closing price of NYMEX WTI crude oil for each day of the delivery month. Balance Sheet Presentation The Company’s commodity derivatives are presented on a net basis in “derivative instruments” on the condensed consolidated balance sheets. The following table summarizes the fair value of derivatives outstanding on a gross basis: June 30, 2018 December 31, 2017 (in thousands) Assets: Commodity derivatives $ 6,825 $ 22,589 Liabilities: Commodity derivatives $ 7,197 $ 25,443 By using derivative instruments to economically hedge exposures to changes in commodity prices, the Company exposed itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk. The Company’s counterparties are participants in the Credit Facility. The Credit Facility was secured by certain of the Company’s and its then subsidiaries’ oil, natural gas and NGL reserves and personal property; therefore, the Company was not required to post any collateral. The Company did not receive collateral from its counterparties. The maximum amount of loss due to credit risk that the Company would incur if its counterparties failed completely to perform according to the terms of the contracts, based on the gross fair value of financial instruments, was approximately $7 million at June 30, 2018 . The Company minimized the credit risk in derivative instruments by: (i) limiting its exposure to any single counterparty; (ii) entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard, or have a guarantee from an affiliate that meets the Company’s minimum credit quality standard; and (iii) monitoring the creditworthiness of the Company’s counterparties on an ongoing basis. In accordance with the Company’s standard practice, its commodity derivatives were subject to counterparty netting under agreements governing such derivatives and therefore the risk of loss due to counterparty nonperformance was somewhat mitigated. Gains and Losses on Derivatives Gains and losses on derivatives were net losses of approximately $8 million and $23 million for the three months and six months ended June 30, 2018 , respectively, and net gains of approximately $46 million and $34 million for the three months and four months ended June 30, 2017 , respectively, and approximately $93 million for the two months ended February 28, 2017. Gains and losses on derivatives are reported on the condensed consolidated statements of operations in “gains (losses) on oil and natural gas derivatives.” The Company paid net cash settlements of approximately $21 million and $25 million for the three months and six months ended June 30, 2018 , respectively. The Company received net cash settlements of approximately $2 million and $8 million for the three months and four months ended June 30, 2017 , respectively, and paid net cash settlements of approximately $12 million for the two months ended February 28, 2017. |
Fair Value Measurements on a Re
Fair Value Measurements on a Recurring Basis | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements on a Recurring Basis | Fair Value Measurements on a Recurring Basis The Company accounted for its commodity derivatives at fair value (see Note 8) on a recurring basis. The Company determined the fair value of its oil and natural gas derivatives utilizing pricing models that use a variety of techniques, including market quotes and pricing analysis. Inputs to the pricing models included publicly available prices and forward price curves generated from a compilation of data gathered from third parties. Company management validated the data provided by third parties by understanding the pricing models used, obtaining market values from other pricing sources, analyzing pricing data in certain situations and confirming that those instruments trade in active markets. Assumed credit risk adjustments, based on published credit ratings and public bond yield spreads, were applied to the Company’s commodity derivatives. Fair Value Hierarchy In accordance with applicable accounting standards, the Company has categorized its financial instruments into a three-level fair value hierarchy based on the priority of inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The following presents the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: June 30, 2018 Level 2 Netting (1) Total (in thousands) Assets: Commodity derivatives $ 6,825 $ (1,637 ) $ 5,188 Liabilities: Commodity derivatives $ 7,197 $ (1,637 ) $ 5,560 December 31, 2017 Level 2 Netting (1) Total (in thousands) Assets: Commodity derivatives $ 22,589 $ (12,491 ) $ 10,098 Liabilities: Commodity derivatives $ 25,443 $ (12,491 ) $ 12,952 (1) Represents counterparty netting under agreements governing such derivatives. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The Company had the obligation to plug and abandon oil and natural gas wells and related equipment at the end of production operations. Estimated asset retirement costs were recognized as liabilities with an increase to the carrying amounts of the related long-lived assets when the obligation is incurred. The liabilities are included in “other accrued liabilities” and “asset retirement obligations and other noncurrent liabilities” on the condensed consolidated balance sheets. Accretion expense is included in “depreciation, depletion and amortization” on the condensed consolidated statements of operations. The fair value of additions to the asset retirement obligations is estimated using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation include estimates of: (i) plug and abandon costs per well based on existing regulatory requirements; (ii) remaining life per well; (iii) future inflation factors; and (iv) a credit-adjusted risk-free interest rate. These inputs require significant judgments and estimates by the Company’s management at the time of the valuation and are the most sensitive and subject to change. In addition, there is insufficient information to reasonably determine the timing and/or method of settlement for purposes of estimating the fair value of the asset retirement obligation of certain of the Company’s Chisholm Trail assets, which became assets of Riviera in connection with the Spin-off. In such cases, asset retirement obligation cost is considered indeterminate because there is no data or information that can be derived from past practice, industry practice, management’s experience, or the asset’s estimated economic life. Indeterminate asset retirement obligation costs associated with Chisholm Trail will be recognized in the period in which sufficient information exists to reasonably estimate potential settlement dates and methods. The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands): Asset retirement obligations at December 31, 2017 $ 164,553 Liabilities added from drilling 53 Liabilities associated with assets divested (62,195 ) Current year accretion expense 4,081 Settlements (1,859 ) Revisions of estimates 2,386 Asset retirement obligations at June 30, 2018 $ 107,019 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On May 11, 2016, the Debtors filed Bankruptcy Petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The Debtors’ Chapter 11 cases were administered jointly under the caption In re Linn Energy, LLC, et al., Case No. 16‑60040. On January 27, 2017, the Bankruptcy Court entered the Confirmation Order. Consummation of the Plan was subject to certain conditions set forth in the Plan. On the Effective Date, all of the conditions were satisfied or waived and the Plan became effective and was implemented in accordance with its terms. The LINN Debtors Chapter 11 cases will remain pending until the final resolution of all outstanding claims. The commencement of the Chapter 11 proceedings automatically stayed certain actions against the Company, including actions to collect prepetition liabilities or to exercise control over the property of the Company’s bankruptcy estates. However, the Company is, and will continue to be until the final resolution of all claims, subject to certain contested matters and adversary proceedings stemming from the Chapter 11 proceedings. In March 2017, Wells Fargo Bank, National Association (“Wells Fargo”), the administrative agent under the Predecessor’s credit facility, filed a motion in the Bankruptcy Court seeking payment of post-petition default interest of approximately $31 million . The Company has vigorously disputed that Wells Fargo is entitled to any default interest based on the plain language of the Plan and Confirmation Order. On November 13, 2017, the Bankruptcy Court ruled that the secured lenders are not entitled to payment of post-petition default interest. That ruling was appealed by Wells Fargo and on March 29, 2018, the U.S. District Court for the Southern District of Texas affirmed the Bankruptcy Court’s ruling. On April 30, 2018, the Bankruptcy Court approved the substitution of UMB Bank, National Association (“UMB Bank”) as successor to Wells Fargo as administrative agent under the Predecessor’s credit facility. UMB Bank then immediately filed a notice of appeal to the United States Court of Appeals for the Fifth Circuit from the decision by the U.S. District Court for the Southern District of Texas, which affirmed the decision of the Bankruptcy Court. That appeal remains pending. The Company is not currently a party to any litigation or pending claims that it believes would have a material adverse effect on its overall business, financial position, results of operations or liquidity; however, cash flow could be significantly impacted in the reporting periods in which such matters are resolved. Except for in connection with its Chapter 11 proceedings, the Company made no significant payments to settle any legal, environmental or tax proceedings during the six months ended June 30, 2018 , or June 30, 2017 . The Company regularly analyzes current information and accrues for probable liabilities on the disposition of certain matters as necessary. Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | Equity Shares Issued and Outstanding As of June 30, 2018 , there were 78,749,510 shares of Class A common stock issued and outstanding. An additional 922,696 unvested restricted stock units were outstanding under the Company’s Omnibus Incentive Plan. Effective April 10, 2018, all outstanding Holdco Class A-2 units were converted into Class A common stock in accordance with the terms of the Holdco LLC Agreement. Pursuant to such conversion, an aggregate of 2,785,681 shares of Class A common stock were issued to the respective holders, of which 914,632 remained subject to the vesting provisions applicable to the underlying Class A-2 units as of June 30, 2018 . See Note 14 for additional information related to the restricted stock units and Holdco Class A-2 units. Share Repurchase Program The Company’s Board of Directors previously authorized the repurchase of up to $400 million of the Company’s outstanding shares of Class A common stock. The Company discontinued the share repurchase program in July 2018. During the six months ended June 30, 2018 , the Company repurchased an aggregate of 1,557,180 shares of Class A common stock at an average price of $39.13 per share for a total cost of approximately $61 million . In June 2017, the Company repurchased 7,540 shares of Class A common stock at an average price of $30.48 per share for a total cost of approximately $230,000 . In addition, in July 2018, the Company purchased 280,289 shares of Class A common stock at an average price of $40.30 for a total cost of approximately $11 million . During 2017 and 2018, the Company purchased an aggregate of 7,527,661 shares of Class A common stock at an average price of $35.94 for a total cost of approximately $271 million under the share repurchase program. Tender Offer On December 14, 2017, the Company’s Board of Directors announced the intention to commence a tender offer to purchase at least $250 million of the Company’s Class A common stock. In January 2018, upon the terms and subject to the conditions described in the Offer to Purchase dated December 20, 2017, as amended, the Company repurchased an aggregate of 6,770,833 shares of Class A common stock at a fixed price of $48.00 per share for a total cost of approximately $325 million (excluding expenses of approximately $4 million related to the tender offer). Dividends The Company is not currently paying a cash dividend; however, the Board of Directors periodically reviews the Company’s liquidity position to evaluate whether or not to pay a cash dividend. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represented ownership in the net assets of the Company’s then consolidated subsidiary, Holdco, not attributable to LINN Energy. On the Effective Date, Holdco granted incentive interest awards to certain members of its management in the form of Class B units (see Note 14). In accordance with the terms of the Holdco LLC Agreement, on July 31, 2017, all of the Class B units were converted to Class A-2 units of Holdco. At December 31, 2017 , the noncontrolling Class A-2 units represented approximately 0.88% of Holdco’s total outstanding units. Effective April 10, 2018, all outstanding Holdco Class A-2 units were converted into Class A common stock in accordance with the terms of the Holdco LLC Agreement. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation A summary of share-based compensation expenses included on the condensed consolidated statements of operations is presented below: Three Months Ended June 30, 2018 2017 (in thousands) General and administrative expenses $ 58,188 $ 15,422 Income tax benefit $ 4,315 $ 3,128 Successor Predecessor Six Months Ended June 30, 2018 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) General and administrative expenses $ 75,225 $ 19,599 $ 50,255 Income tax benefit $ 6,732 $ 3,555 $ 5,170 During the six months ended June 30, 2018 , the Company granted to certain employees 12,500 restricted stock units with an aggregate grant date fair value of approximately $519,000 . The restricted stock units vest over three years. As of June 30, 2018, 922,696 shares were issuable under the Omnibus Incentive Plan pursuant to outstanding restricted stock units and approximately 4.7 million additional shares were reserved for future issuance under the Plan. The Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) generally has discretion regarding the timing, size and terms of future awards; however, the Omnibus Incentive Plan requires that 1) the portion of the Share Reserve that does not constitute the Emergence Awards, plus any subsequent awards forfeited before vesting (the “Remaining Share Reserve”), will be fully granted within the 36-month period immediately following the Effective Date (with such 36-month anniversary, the “Final Allocation Date”) and 2) if a Change in Control (as defined in the Omnibus Incentive Plan) occurs before the Final Allocation Date, the entire Remaining Share Reserve will be allocated on a fully-vested basis to actively employed employees (pro-rata based upon each such employee’s relative awards) upon the consummation of the Change in Control. As of April 30, 2018, all current participants in the Omnibus Incentive Plan have agreed to waive any rights they may have to future awards under this provision in consideration for the ability to participate in the Liquidity Program described below or a similar future program. The Compensation Committee has indicated that it does not intend to grant any future awards under the Omnibus Incentive Plan. Upon a participant’s termination of employment and/or service (as applicable), the Company has the right (but not the obligation) to repurchase all or any portion of the shares of Class A common stock acquired pursuant to an award at a price equal to the fair market value (as determined under the Omnibus Incentive Plan) of the shares of Class A common stock to be repurchased, measured as of the date of the Company’s repurchase notice. During May 2018, the Company began exercising its right to repurchase vesting awards under the Omnibus Incentive Plan which modified all outstanding awards to liability classification. For the six months ended June 30, 2018 , the Company has repurchased 271,314 restricted stock units for a total cost of approximately $11 million pursuant to its right to repurchase vesting awards. The Company has recognized a liability of approximately $112 million related to awards required to be liability classified, included in “share-based payment liability” on the condensed consolidated balance sheet and recorded incremental share-based compensation expense of approximately $18 million related to modifying the awards to liability classification. At June 30, 2018 , all outstanding share-based payment awards are liability classified. In April 2018, the Company entered into agreements with each of the then serving executive officers of the Company, under which the Company agreed, at the option of each officer, to repurchase certain of their vested restricted stock unit awards and outstanding Class A common stock. Pursuant to those agreements, on August 7, 2018, the Company repurchased an aggregate of 2,477,834 shares of Class A common stock for a total cost of approximately $102 million . On August 2, 2018, the Board authorized the termination of the Linn Energy, Inc. 2017 Omnibus Incentive Plan following the settlement of all outstanding RSUs and restricted common stock. In addition, all remaining unvested restricted stock units of Linn Energy, Inc. vested upon the Spin-off, which participants have the option to require the Company to settle in cash. In addition, in January 2018, the Compensation Committee approved a one-time liquidity program under which the Company agreed, at the option of the participant, to 1) settle all or a portion of an eligible participant’s restricted stock units vesting on or before March 1, 2018 in cash and/or 2) repurchase all or a portion of any shares of Class A common stock held by an eligible participant as a result of a prior vesting of restricted stock units, in each case at an agreed upon price (the “Liquidity Program”). For the six months ended June 30, 2018 , the Company settled 1,028,875 restricted stock units in cash and repurchased 120,829 shares of Class A common stock for a total cost of approximately $45 million pursuant to the Liquidity Program. |
Earnings Per Share_Unit
Earnings Per Share/Unit | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share/Unit | Earnings Per Share/Unit Basic earnings per share/unit is computed by dividing net earnings attributable to common stockholders/unitholders by the weighted average number of shares/units outstanding during the period. Diluted earnings per share/unit is computed by adjusting the average number of shares/units outstanding for the dilutive effect, if any, of potential common shares/units. The following tables provide a reconciliation of the numerators and denominators of the basic and diluted per share/unit computations for net income: Successor Three Months Ended June 30, 2018 Income Shares Per Share (in thousands, except per share data) Basic: Net income attributable to common stockholders $ 5,104 78,718 $ 0.06 Effect of Dilutive Securities: Dilutive effect of restricted stock units 559 Dilutive effect of unvested Class A-2 units of Holdco $ — — Diluted: Net income attributable to common stockholders $ 5,104 79,277 $ 0.06 Successor Three Months Ended June 30, 2017 Income Shares Per Share (in thousands, except per share data) Basic: Income from continuing operations $ 223,379 89,849 $ 2.49 Loss from discontinued operations, net of income taxes (3,322 ) 89,849 (0.04 ) Net income attributable to common stockholders $ 220,057 89,849 $ 2.45 Effect of Dilutive Securities: Dilutive effect of restricted stock units $ — 635 Diluted: Income from continuing operations $ 223,379 90,484 $ 2.47 Loss from discontinued operations (3,322 ) 90,484 (0.04 ) Net income attributable to common stockholders $ 220,057 90,484 $ 2.43 Successor Six Months Ended June 30, 2018 Income Shares Per Share (in thousands, except per share data) Basic: Net income attributable to common stockholders $ 74,928 78,817 $ 0.95 Effect of Dilutive Securities: Dilutive effect of restricted stock units $ — 947 Dilutive effect of unvested Class A-2 units of Holdco $ (1,140 ) — Diluted: Net income attributable to common stockholders $ 73,788 79,764 $ 0.93 Successor Four Months Ended June 30, 2017 Income Shares Per Share (in thousands, except per share data) Basic: Income from continuing operations $ 216,055 89,849 $ 2.41 Loss from discontinued operations, net of income taxes (3,254 ) 89,849 (0.04 ) Net income attributable to common stockholders $ 212,801 89,849 $ 2.37 Effect of Dilutive Securities: Dilutive effect of restricted stock units $ — 216 Diluted: Income from continuing operations $ 216,055 90,065 $ 2.40 Loss from discontinued operations (3,254 ) 90,065 (0.04 ) Net income attributable to common stockholders $ 212,801 90,065 $ 2.36 Predecessor Two Months Ended February 28, 2017 Income (Loss) Units Per Unit (in thousands, except per unit data) Basic and Diluted: Income from continuing operations $ 2,397,609 352,792 $ 6.80 Loss from discontinued operations, net of income taxes (548 ) 352,792 (0.01 ) Net income attributable to common unitholders $ 2,397,061 352,792 $ 6.79 The diluted earnings per share calculation excludes approximately 1,989 restricted stock units that were anti-dilutive for the six months ended June 30, 2018 . No restricted stock units were anti-dilutive for the three months ended June 30, 2018 . The diluted earnings per share calculation for the three months and four months ended June 30, 2017 , exclude approximately 3,470,051 Class B units associated with management’s profits interests awards that were not yet considered to be dilutive as the applicable hurdle rate had not been met as of June 30, 2017 . There were no potential common units outstanding during the two months ended February 28, 2017. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Amounts recognized as income taxes are included in “income tax expense (benefit),” as well as discontinued operations, on the consolidated statements of operations. The effective income tax rates were approximately 45% and 37% for the three months and six months ended June 30, 2018 , respectively, approximately 42% for both the three months and four months ended June 30, 2017 , and zero for the two months ended February 28, 2017. For the six months ended June 30, 2018 , the Company’s federal and state statutory rate net of the federal tax benefit was approximately 24% . The increase in the effective tax rate during 2018 is primarily due to non-deductible executive compensation. The Successor was formed as a C corporation. For federal and state income tax purposes (with the exception of the state of Texas), the Predecessor was a limited liability company treated as a partnership, in which income tax liabilities and/or benefits were passed through to the Predecessor’s unitholders. Limited liability companies are subject to Texas margin tax. In addition, certain of the Predecessor’s subsidiaries were C corporations subject to federal and state income taxes. As such, with the exception of the state of Texas and certain subsidiaries, the Predecessor did not directly pay federal and state income taxes and recognition was not given to federal and state income taxes for the operations of the Predecessor. The deferred tax effects of the Company’s change to a C corporation are included in income from continuing operations for the two months ended February 28, 2017. |
Supplemental Disclosures to the
Supplemental Disclosures to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Disclosures to the Condensed Consolidated Statements of Cash Flows [Abstract] | |
Supplemental Disclosures to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows | Supplemental Disclosures to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows “Other current assets” reported on the condensed consolidated balance sheets include the following: June 30, 2018 December 31, 2017 (in thousands) Prepaids $ 14,209 $ 46,238 Receivable from related party 25,982 23,163 Inventories 3,981 7,667 Other 2,487 2,703 Other current assets $ 46,659 $ 79,771 “Other accrued liabilities” reported on the condensed consolidated balance sheets include the following: June 30, 2018 December 31, 2017 (in thousands) Accrued compensation $ 13,533 $ 29,089 Asset retirement obligations (current portion) 1,488 3,926 Deposits 3,170 15,349 Income taxes payable 23 7,496 Other 1,616 2,757 Other accrued liabilities $ 19,830 $ 58,617 The following table provides a reconciliation of cash and cash equivalents on the condensed consolidated balance sheets to cash, cash equivalents and restricted cash on the condensed consolidated statement of cash flows: June 30, 2018 December 31, 2017 (in thousands) Cash and cash equivalents $ 301,365 $ 464,508 Restricted cash 43,387 56,445 Cash, cash equivalents and restricted cash $ 344,752 $ 520,953 Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: Successor Predecessor Six Months Ended June 30, 2018 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) Cash payments for interest, net of amounts capitalized $ — $ 14,436 $ 17,651 Cash payments for income taxes $ 7,748 $ 215 $ — Cash payments for reorganization items, net $ 2,911 $ 6,300 $ 21,571 Noncash investing activities: Accrued capital expenditures $ 21,968 $ 34,547 $ 22,191 For purposes of the condensed consolidated statements of cash flows, the Company considers all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. At June 30, 2018 , “restricted cash” on the condensed consolidated balance sheet consisted of approximately $33 million that will be used to settle certain claims in accordance with the Plan (which is the remainder of approximately $80 million transferred to restricted cash in February 2017 to fund such items), approximately $3 million related to deposits and approximately $7 million for other items. At December 31, 2017 , “restricted cash” on the condensed consolidated balance sheet consisted of approximately $36 million that will be used to settle certain claims in accordance with the Plan, approximately $15 million related to deposits and approximately $5 million for other items. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions Roan Resources LLC On August 31, 2017, the Company completed the Roan Contribution. In exchange for their respective contributions, LINN Energy and Citizen each received a 50% equity interest in Roan. See Note 6 for additional information. Also on such date, Roan entered into a Master Services Agreement (the “MSA”) with Linn Operating, LLC (“Linn Operating”), a subsidiary of LINN Energy, pursuant to which Linn Operating agreed to provide certain operating, administrative and other services in respect of the assets contributed to Roan during a transitional period. Under the MSA, Roan agreed to reimburse Linn Operating for certain costs and expenses incurred by Linn Operating in connection with providing the services, and to pay to Linn Operating a service fee of $1.25 million per month, prorated for partial months. The MSA terminated according to its terms on April 30, 2018. In addition, the Company’s pre-Spin-off subsidiary, Blue Mountain Midstream LLC (“Blue Mountain”), has an agreement in place with Roan for the purchase and processing of natural gas from certain of Roan’s properties. Blue Mountain became a subsidiary of Riviera on August 7, 2018 in connection with the Spin-off. For the three months and six months ended June 30, 2018 , the Company made natural gas purchases from Roan of approximately $15 million and $32 million , respectively, included in “marketing expenses” on the condensed consolidated statements of operations. In addition, for the three months and six months ended June 30, 2018 , the Company recognized service fees of approximately $1 million and $5 million , respectively, under the MSA, as a reduction to general and administrative expenses. At June 30, 2018 , the Company had approximately $26 million due from Roan, primarily associated with capital spending, included in “other current assets” and approximately $11 million due to Roan, associated with natural gas purchases, included in “accounts payable and accrued expenses” on the condensed consolidated balance sheet. At December 31, 2017 , the Company had approximately $23 million due from Roan, primarily associated with capital spending, included in “other current assets” and approximately $18 million due to Roan, primarily associated with joint interest billings and natural gas purchases, included in “accounts payable and accrued expenses” on the condensed consolidated balance sheet. Berry Petroleum Company, LLC Berry, a former subsidiary of the Predecessor, was deconsolidated effective December 31, 2016 . The employees of Linn Operating, Inc. (“LOI”), a subsidiary of the Predecessor, provided services and support to Berry in accordance with an agency agreement and power of attorney between Berry and LOI. Upon deconsolidation, transactions between the Predecessor and Berry were no longer eliminated in consolidation and were treated as related party transactions. These transactions include, but are not limited to, management fees paid to the Company by Berry. On the Effective Date, Berry emerged from bankruptcy as a stand-alone, unaffiliated entity. For the two months ended February 28, 2017, Berry incurred management fees of approximately $6 million for services provided by LOI. LinnCo, LLC LinnCo, which was an affiliate of the Predecessor, was formed on April 30, 2012. The Predecessor had agreed to provide to LinnCo, or to pay on LinnCo’s behalf, any financial, legal, accounting, tax advisory, financial advisory and engineering fees, and other administrative and out-of-pocket expenses incurred by LinnCo, along with any other expenses incurred in connection with any public offering of shares in LinnCo or incurred as a result of being a publicly traded entity. These expenses include costs associated with annual, quarterly and other reports to holders of LinnCo shares, tax return and Form 1099 preparation and distribution, NASDAQ listing fees, printing costs, independent auditor fees and expenses, legal counsel fees and expenses, limited liability company governance and compliance expenses and registrar and transfer agent fees. In addition, the Predecessor had agreed to indemnify LinnCo and its officers and directors for damages suffered or costs incurred (other than income taxes payable by LinnCo) in connection with carrying out LinnCo’s activities. All expenses and costs paid by the Predecessor on LinnCo’s behalf were expensed by the Predecessor. For the two months ended February 28, 2017, LinnCo incurred total general and administrative expenses of approximately $287,000 , including approximately $240,000 related to services provided by the Predecessor. All of the expenses incurred during the two months ended February 28, 2017, had been paid by the Predecessor on LinnCo’s behalf as of February 28, 2017. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments During the second quarter of 2018, the Company had two reporting segments: Upstream and Chisholm Trail. The Upstream reporting segment was engaged in the exploration, development, production, and sale of oil, natural gas, and NGLs. The Chisholm Trail reporting segment is new for the second quarter of 2018 as a result of a change in the way our chief operating decision maker (“CODM”) assesses the Company’s results of operations following the hiring of a segment manager to lead the Chisholm Trail reporting segment and the commissioning of the cryogenic natural gas processing facility during the second quarter of 2018. The Chisholm Trail reporting segment consisted of the Chisholm Trail gas plant system, which is comprised of the newly constructed cryogenic natural gas processing facility, a refrigeration plant, and a network of gathering pipelines located in the Merge/SCOOP/STACK play. To assess the performance of the Company’s operating segments, the CODM analyzes field level cash flow. The Company defines field level cash flow as revenues less direct operating expenses. Other indirect income (expenses) include “general and administrative expenses,” “exploration costs,” “depreciation, depletion and amortization,” “gains on sale of assets and other, net,” “other income and (expenses)” and “reorganization items, net.” Prior period amounts are presented on a comparable basis. In addition, information regarding total assets by segment is not presented because it is not reviewed by the CODM. The following tables present the Company’s financial information by reportable segment: Successor Three Months Ended June 30, 2018 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 87,004 $ — $ — $ 87,004 Marketing revenues 22,901 20,066 — 42,967 Other revenues 6,387 — — 6,387 116,292 20,066 — 136,358 Lease operating expenses 24,088 — — 24,088 Transportation expenses 21,213 — — 21,213 Marketing expenses 20,244 20,083 — 40,327 Taxes other than income taxes 6,737 285 275 7,297 Total direct operating expenses 72,282 20,368 275 92,925 Field level cash flow $ 44,010 $ (302 ) (275 ) 43,433 Losses on oil and natural gas derivatives (7,525 ) (7,525 ) Other indirect income (expenses) (23,283 ) (23,283 ) Income from continuing operations before income taxes $ 12,625 Successor Three Months Ended June 30, 2017 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 243,167 $ — $ — $ 243,167 Marketing revenues 10,793 1,754 — 12,547 Other revenues 6,391 — — 6,391 260,351 1,754 — 262,105 Lease operating expenses 71,057 — — 71,057 Transportation expenses 37,388 — — 37,388 Marketing expenses 6,156 820 — 6,976 Taxes other than income taxes 17,486 116 269 17,871 Total direct operating expenses 132,087 936 269 133,292 Field level cash flow $ 128,264 $ 818 (269 ) 128,813 Gains on oil and natural gas derivatives 45,714 45,714 Other indirect income (expenses) 207,622 207,622 Income from continuing operations before income taxes $ 382,149 Successor Six Months Ended June 30, 2018 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 223,880 $ — $ — $ 223,880 Marketing revenues 47,276 41,958 — 89,234 Other revenues 12,281 — — 12,281 283,437 41,958 — 325,395 Lease operating expenses 71,972 — — 71,972 Transportation expenses 40,307 — — 40,307 Marketing expenses 41,380 40,702 — 82,082 Taxes other than income taxes 14,908 477 364 15,749 Total direct operating expenses 168,567 41,179 364 210,110 Field level cash flow $ 114,870 $ 779 (364 ) 115,285 Losses on oil and natural gas derivatives (22,555 ) (22,555 ) Other indirect income (expenses) 31,167 31,167 Income from continuing operations before income taxes $ 123,897 Successor Four Months Ended June 30, 2017 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 323,492 $ — $ — $ 323,492 Marketing revenues 13,273 2,188 — 15,461 Other revenues 8,419 — — 8,419 345,184 2,188 — 347,372 Lease operating expenses 95,687 — — 95,687 Transportation expenses 51,111 — — 51,111 Marketing expenses 8,513 1,002 — 9,515 Taxes other than income taxes 24,478 155 315 24,948 Total direct operating expenses 179,789 1,157 315 181,261 Field level cash flow $ 165,395 $ 1,031 (315 ) 166,111 Gains on oil and natural gas derivatives 33,755 33,755 Other indirect income (expenses) 169,644 169,644 Income from continuing operations before income taxes $ 369,510 Predecessor Two Months Ended February 28, 2017 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 188,885 $ — $ — $ 188,885 Marketing revenues 5,999 637 — 6,636 Other revenues 9,915 — — 9,915 204,799 637 — 205,436 Lease operating expenses 49,665 — — 49,665 Transportation expenses 25,972 — — 25,972 Marketing expenses 4,602 218 — 4,820 Taxes other than income taxes 14,773 78 26 14,877 Total direct operating expenses 95,012 296 26 95,334 Field level cash flow $ 109,787 $ 341 (26 ) 110,102 Gains on oil and natural gas derivatives 92,691 92,691 Other indirect income (expenses) 2,194,650 2,194,650 Income from continuing operations before income taxes $ 2,397,443 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business LINN Energy was formed in February 2017, in connection with the reorganization of the Predecessor. The Predecessor was publicly traded from January 2006 to February 2017. As discussed further in Note 2, on May 11, 2016 (the “Petition Date”), Linn Energy, LLC, certain of its direct and indirect subsidiaries, and LinnCo (collectively, the “LINN Debtors”) and Berry (collectively with the LINN Debtors, the “Debtors”), filed voluntary petitions (“Bankruptcy Petitions”) for relief under Chapter 11 of the U.S. Bankruptcy Code (“Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”). The Debtors’ Chapter 11 cases were administered jointly under the caption In re Linn Energy, LLC, et al., Case No. 16-60040. During the pendency of the Chapter 11 proceedings, the Debtors operated their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. The Company emerged from bankruptcy effective February 28, 2017. Prior to the Spin-off (as defined below), the Company’s upstream properties were located in six operating regions in the United States (“U.S.”): the Hugoton Basin, East Texas, North Louisiana, Michigan/Illinois, the Rockies and the Mid-Continent |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting The information reported herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted under Securities and Exchange Commission rules and regulations; as such, this report should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The results reported in these unaudited condensed consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The condensed consolidated financial statements include the accounts of the Company and its pre-Spin-off subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. Noncontrolling interests represented ownership in the net assets of the Company’s previous consolidated subsidiary, Linn Energy Holdco LLC (“Holdco”), not attributable to LINN Energy, and were presented as a component of equity. Changes in the Company’s ownership interests in Holdco that did not result in deconsolidation were recognized in equity. Effective April 10, 2018, all outstanding Class A‑2 units in Holdco (“Holdco Class A-2 units”) were converted into Class A common stock in LINN Energy in accordance with the terms of Holdco’s Limited Liability Company Operating Agreement (the “Holdco LLC Agreement”) and the noncontrolling interest was dissolved. See Note 13 for additional information about noncontrolling interests. Investments in noncontrolled entities over which the Company exercises significant influence are accounted for under the equity method. See Note 6 for additional information about equity method investments. The condensed consolidated financial statements for previous periods include certain reclassifications that were made to conform to current presentation. Such reclassifications have no impact on previously reported net income (loss) or stockholders equity. As a result of the adoption of ASU 2016-18 and the inclusion of restricted cash in the statements of cash flows, previously reported net cash provided by operating activities and cash provided by investing activities have been updated to conform to current presentation. See recently adopted accounting standards below for additional information. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. The estimates that are particularly significant to the financial statements include estimates of the Company’s reserves of oil, natural gas and natural gas liquids (“NGL”), future cash flows from oil and natural gas properties, depreciation, depletion and amortization, asset retirement obligations, certain revenues and operating expenses, and fair values of commodity derivatives. In addition, as part of fresh start accounting, the Company made estimates and assumptions related to its reorganization value, liabilities subject to compromise, the fair value of assets and liabilities recorded as a result of the adoption of fresh start accounting and income taxes. As fair value is a market-based measurement, it is determined based on the assumptions that market participants would use. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Any changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In November 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that is intended to address diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The Company adopted this ASU on January 1, 2018, on a retrospective basis. The adoption of this ASU resulted in the inclusion of restricted cash in the beginning and ending balances of cash on the statements of cash flows and disclosure reconciling cash and cash equivalents presented on the balance sheets to cash, cash equivalents and restricted cash on the statement of cash flows (see Note 17). In May 2014, the FASB issued an ASU that is intended to improve and converge the financial reporting requirements for revenue from contracts with customers (“ASC 606”). The Company adopted this ASU on January 1, 2018, using the modified retrospective transition method. Accordingly, the comparative information for the six months ended June 30, 2017 , has not been adjusted and continues to be reported under the previous revenue standard. The adoption of this ASU impacted the Company’s gross revenues and expenses as reported on its condensed consolidated statements of operations (see below), and resulted in increased disclosures regarding the Company’s disaggregation of revenue (see Note 3). Under ASC 606, the Company recognizes revenues based on a determination of when control of its commodities is transferred and whether it is acting as a principal or agent in certain transactions. All facts and circumstances of an arrangement are considered and judgment is often required in making this determination. For its natural gas contracts, the Company generally records its sales at the wellhead or inlet of the plant as revenues net of transportation, gathering and processing expenses if the processor is the customer and there is no redelivery of commodities to the Company. Conversely, the Company generally records its sales at the tailgate of the plant on a gross basis along with the associated transportation, gathering and processing expenses if the processor is a service provider and there is redelivery of commodities to the Company. In addition, the Company recognizes revenues for commodities received as noncash consideration in exchange for services provided by its midstream operations and revenues and associated cost of product for the subsequent sale of those same commodities. This recognition results in an increase to revenues and expenses with no material impact on net income. The items discussed above impacted the Company’s reported “oil, natural gas and natural gas liquids sales,” “marketing revenues,” “other revenues,” “transportation expenses,” “marketing expenses” and “interest expense.” The impact of adoption on the Company’s current period results is as follows: Three Months Ended June 30, 2018 Under ASC 606 Under Prior Rule Increase/ (Decrease) (in thousands) Revenues: Natural gas sales $ 53,662 $ 53,285 $ 377 Oil sales 10,919 10,919 — NGL sales 22,423 22,280 143 Total oil, natural gas and NGL sales 87,004 86,484 520 Marketing revenues 42,967 25,406 17,561 Other revenues 6,387 6,003 384 136,358 117,893 18,465 Expenses: Transportation expenses 21,213 20,693 520 Marketing expenses 40,327 22,766 17,561 Interest expense 584 420 164 Net income $ 6,903 $ 6,683 $ 220 Six Months Ended June 30, 2018 Under ASC 606 Under Prior Rule Increase/ (Decrease) (in thousands) Revenues: Natural gas sales $ 116,990 $ 117,794 $ (804 ) Oil sales 56,615 56,615 — NGL sales 50,275 50,222 53 Total oil, natural gas and NGL sales 223,880 224,631 (751 ) Marketing revenues 89,234 53,521 35,713 Other revenues 12,281 11,676 605 325,395 289,828 35,567 Expenses: Transportation expenses 40,307 41,058 (751 ) Marketing expenses 82,082 46,369 35,713 Interest expense 988 824 164 Net income $ 78,001 $ 77,560 $ 441 New Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued an ASU that is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those years (early adoption permitted). The Company is currently evaluating the impact of the adoption of this ASU on its financial statements and related disclosures. The Company expects the adoption of this ASU to impact its balance sheet resulting from an increase in both assets and liabilities related to the Company’s leasing activities. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact of adoption on the Company’s current period results is as follows: Three Months Ended June 30, 2018 Under ASC 606 Under Prior Rule Increase/ (Decrease) (in thousands) Revenues: Natural gas sales $ 53,662 $ 53,285 $ 377 Oil sales 10,919 10,919 — NGL sales 22,423 22,280 143 Total oil, natural gas and NGL sales 87,004 86,484 520 Marketing revenues 42,967 25,406 17,561 Other revenues 6,387 6,003 384 136,358 117,893 18,465 Expenses: Transportation expenses 21,213 20,693 520 Marketing expenses 40,327 22,766 17,561 Interest expense 584 420 164 Net income $ 6,903 $ 6,683 $ 220 Six Months Ended June 30, 2018 Under ASC 606 Under Prior Rule Increase/ (Decrease) (in thousands) Revenues: Natural gas sales $ 116,990 $ 117,794 $ (804 ) Oil sales 56,615 56,615 — NGL sales 50,275 50,222 53 Total oil, natural gas and NGL sales 223,880 224,631 (751 ) Marketing revenues 89,234 53,521 35,713 Other revenues 12,281 11,676 605 325,395 289,828 35,567 Expenses: Transportation expenses 40,307 41,058 (751 ) Marketing expenses 82,082 46,369 35,713 Interest expense 988 824 164 Net income $ 78,001 $ 77,560 $ 441 |
Emergence From Voluntary Reor28
Emergence From Voluntary Reorganization Under Chapter 11 and Fresh Start Accounting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Emergence From Voluntary Reorganization Under Chapter 11 [Abstract] | |
Schedule of Reorganization Items | The following table summarizes the components of reorganization items included on the condensed consolidated statements of operations: Successor Three Months Ended June 30, 2018 2017 (in thousands) Legal and other professional advisory fees $ (1,255 ) $ (3,446 ) Other (4 ) 69 Reorganization items, net $ (1,259 ) $ (3,377 ) Successor Predecessor Six Months Ended June 30, 2018 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) Gain on settlement of liabilities subject to compromise $ — $ — $ 3,724,750 Recognition of an additional claim for the Predecessor’s second lien notes settlement — — (1,000,000 ) Fresh start valuation adjustments — — (591,525 ) Income tax benefit related to implementation of the Plan — — 264,889 Legal and other professional fees (3,207 ) (6,016 ) (46,961 ) Terminated contracts — — (6,915 ) Other (3 ) 74 (13,049 ) Reorganization items, net $ (3,210 ) $ (5,942 ) $ 2,331,189 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables present the Company’s disaggregated revenues by source and geographic area: Three Months Ended June 30, 2018 Natural Gas Oil NGL Oil, Natural Gas and NGL Sales Marketing Revenues Other Revenues Total (in thousands) Hugoton Basin $ 17,401 $ 238 $ 16,875 $ 34,514 $ 22,421 $ 6,303 $ 63,238 Mid-Continent 7,622 4,880 3,307 15,809 — 25 15,834 East Texas 12,661 1,091 1,013 14,765 467 3 15,235 Permian Basin 256 546 (488 ) 314 — 16 330 Rockies 2,146 1,885 1,201 5,232 — 1 5,233 North Louisiana 6,040 1,480 503 8,023 13 2 8,038 Michigan/Illinois 7,536 799 12 8,347 — 37 8,384 Chisholm Trail — — — — 20,066 — 20,066 Total $ 53,662 $ 10,919 $ 22,423 $ 87,004 $ 42,967 $ 6,387 $ 136,358 Six Months Ended June 30, 2018 Natural Gas Oil NGL Oil, Natural Gas and NGL Sales Marketing Revenues Other Revenues Total (in thousands) Hugoton Basin $ 39,764 $ 2,970 $ 36,389 $ 79,123 $ 46,501 $ 12,134 $ 137,758 Mid-Continent 15,555 16,747 6,361 38,663 — 39 38,702 East Texas 27,437 2,431 2,319 32,187 503 8 32,698 Permian Basin 2,282 20,654 2,557 25,493 — 32 25,525 Rockies 5,526 9,255 2,559 17,340 — (1 ) 17,339 North Louisiana 12,418 3,049 67 15,534 272 3 15,809 Michigan/Illinois 14,008 1,509 23 15,540 — 66 15,606 Chisholm Trail — — — — 41,958 — 41,958 Total $ 116,990 $ 56,615 $ 50,275 $ 223,880 $ 89,234 $ 12,281 $ 325,395 |
Divestitures and Discontinued30
Divestitures and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale | The following table presents carrying amounts of the assets and liabilities of the Company’s properties classified as held for sale on the condensed consolidated balance sheet: December 31, 2017 (in thousands) Assets: Oil and natural gas properties $ 92,245 Other property and equipment 12,983 Other 1,735 Total assets held for sale $ 106,963 Liabilities: Asset retirement obligations $ 42,001 Other 1,301 Total liabilities held for sale $ 43,302 Other assets primarily include inventories and other liabilities primarily include accounts payable. |
Summarized statements of operations | The following tables present summarized financial results of the Company’s California properties classified as discontinued operations on the condensed consolidated statements of operations: Successor Predecessor Three Months Ended June 30, 2017 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) Revenues and other $ 20,511 $ 27,636 $ 14,891 Expenses 25,935 30,344 13,758 Other income and (expenses) (2,074 ) (2,791 ) (1,681 ) Loss from discontinued operations before income taxes (7,498 ) (5,499 ) (548 ) Income tax benefit (4,176 ) (2,245 ) — Loss from discontinued operations, net of income taxes $ (3,322 ) $ (3,254 ) $ (548 ) Other income and (expenses) include an allocation of interest expense for the California properties which represents interest on debt that was required to be repaid as a result of the sales. Berry Transition Services and Separation Agreement On the Effective Date, Berry entered into a Transition Services and Separation Agreement (the “TSSA”) with LINN Energy and certain of its subsidiaries to facilitate the separation of Berry’s operations from LINN Energy’s operations. Pursuant to the TSSA, LINN Energy continued to provide, or caused to be provided, certain administrative, management, operating, and other services and support to Berry during a transitional period following the Effective Date (the “Transition Services”). Under the TSSA, Berry reimbursed LINN Energy for any and all reasonable, third-party out-of-pocket costs and expenses, without markup, actually incurred by LINN Energy, to the extent documented, in connection with providing the Transition Services. Additionally, Berry paid to LINN Energy a management fee of $6 million per month, prorated for partial months, during the period from the Effective Date through the last day of the second full calendar month after the Effective Date (the “Transition Period”) and paid $2.7 million per month, prorated for partial months, from the first day following the Transition Period through the last day of the second full calendar month thereafter (the “Accounting Period”). During the Accounting Period, the scope of the Transition Services was reduced to specified accounting and administrative functions. The Transition Period ended April 30, 2017, and the Accounting Period ended June 30, 2017 . |
Oil and Natural Gas Properties
Oil and Natural Gas Properties (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Capitalized Costs Related to Oil, Natural Gas and NGL Production Activities | Aggregate capitalized costs related to oil, natural gas and NGL production activities with applicable accumulated depletion and amortization are presented below: June 30, 2018 December 31, 2017 (in thousands) Proved properties $ 739,656 $ 904,390 Unproved properties 46,159 45,693 785,815 950,083 Less accumulated depletion and amortization (59,870 ) (49,619 ) $ 725,945 $ 900,464 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments [Abstract] | |
Summarized Roan Resources LLC statement of operations information | Following is summarized statements of operations information for Roan. Summarized Roan Resources LLC Statements of Operations Information Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands) Revenues and other $ 44,789 $ 145,873 Expenses 72,754 130,663 Other income and (expenses) (1,087 ) (2,886 ) Net income (loss) $ (29,052 ) $ 12,324 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents derivative positions for the periods indicated as of June 30, 2018 : July 1 – December 31, 2018 2019 Natural gas positions: Fixed price swaps (NYMEX Henry Hub): Hedged volume (MMMBtu) 35,144 22,265 Average price ($/MMBtu) $ 3.02 $ 2.89 Oil positions: Fixed price swaps (NYMEX WTI): Hedged volume (MBbls) 276 183 Average price ($/Bbl) $ 54.07 $ 64.00 Natural gas basis differential positions: (1) PEPL basis swaps: Hedged volume (MMMBtu) 7,360 14,600 Hedge differential $ (0.67 ) $ (0.67 ) NGPL TXOK basis swaps: Hedged volume (MMMBtu) 1,840 — Hedge differential $ (0.19 ) $ — (1) Settled or to be settled, as applicable, on the indicated pricing index to hedge basis differential to the NYMEX Henry Hub natural gas price. |
Fair Value of Derivatives Outstanding on a Gross Basis by Location on the Balance Sheets | The Company’s commodity derivatives are presented on a net basis in “derivative instruments” on the condensed consolidated balance sheets. The following table summarizes the fair value of derivatives outstanding on a gross basis: June 30, 2018 December 31, 2017 (in thousands) Assets: Commodity derivatives $ 6,825 $ 22,589 Liabilities: Commodity derivatives $ 7,197 $ 25,443 |
Fair Value Measurements on a 34
Fair Value Measurements on a Recurring Basis (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring Basis | The following presents the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: June 30, 2018 Level 2 Netting (1) Total (in thousands) Assets: Commodity derivatives $ 6,825 $ (1,637 ) $ 5,188 Liabilities: Commodity derivatives $ 7,197 $ (1,637 ) $ 5,560 December 31, 2017 Level 2 Netting (1) Total (in thousands) Assets: Commodity derivatives $ 22,589 $ (12,491 ) $ 10,098 Liabilities: Commodity derivatives $ 25,443 $ (12,491 ) $ 12,952 (1) Represents counterparty netting under agreements governing such derivatives. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations Reconciliation | The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands): Asset retirement obligations at December 31, 2017 $ 164,553 Liabilities added from drilling 53 Liabilities associated with assets divested (62,195 ) Current year accretion expense 4,081 Settlements (1,859 ) Revisions of estimates 2,386 Asset retirement obligations at June 30, 2018 $ 107,019 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share/Unit-Based Compensation | A summary of share-based compensation expenses included on the condensed consolidated statements of operations is presented below: Three Months Ended June 30, 2018 2017 (in thousands) General and administrative expenses $ 58,188 $ 15,422 Income tax benefit $ 4,315 $ 3,128 Successor Predecessor Six Months Ended June 30, 2018 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) General and administrative expenses $ 75,225 $ 19,599 $ 50,255 Income tax benefit $ 6,732 $ 3,555 $ 5,170 |
Earnings Per Share_Unit (Tables
Earnings Per Share/Unit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables provide a reconciliation of the numerators and denominators of the basic and diluted per share/unit computations for net income: Successor Three Months Ended June 30, 2018 Income Shares Per Share (in thousands, except per share data) Basic: Net income attributable to common stockholders $ 5,104 78,718 $ 0.06 Effect of Dilutive Securities: Dilutive effect of restricted stock units 559 Dilutive effect of unvested Class A-2 units of Holdco $ — — Diluted: Net income attributable to common stockholders $ 5,104 79,277 $ 0.06 Successor Three Months Ended June 30, 2017 Income Shares Per Share (in thousands, except per share data) Basic: Income from continuing operations $ 223,379 89,849 $ 2.49 Loss from discontinued operations, net of income taxes (3,322 ) 89,849 (0.04 ) Net income attributable to common stockholders $ 220,057 89,849 $ 2.45 Effect of Dilutive Securities: Dilutive effect of restricted stock units $ — 635 Diluted: Income from continuing operations $ 223,379 90,484 $ 2.47 Loss from discontinued operations (3,322 ) 90,484 (0.04 ) Net income attributable to common stockholders $ 220,057 90,484 $ 2.43 Successor Six Months Ended June 30, 2018 Income Shares Per Share (in thousands, except per share data) Basic: Net income attributable to common stockholders $ 74,928 78,817 $ 0.95 Effect of Dilutive Securities: Dilutive effect of restricted stock units $ — 947 Dilutive effect of unvested Class A-2 units of Holdco $ (1,140 ) — Diluted: Net income attributable to common stockholders $ 73,788 79,764 $ 0.93 Successor Four Months Ended June 30, 2017 Income Shares Per Share (in thousands, except per share data) Basic: Income from continuing operations $ 216,055 89,849 $ 2.41 Loss from discontinued operations, net of income taxes (3,254 ) 89,849 (0.04 ) Net income attributable to common stockholders $ 212,801 89,849 $ 2.37 Effect of Dilutive Securities: Dilutive effect of restricted stock units $ — 216 Diluted: Income from continuing operations $ 216,055 90,065 $ 2.40 Loss from discontinued operations (3,254 ) 90,065 (0.04 ) Net income attributable to common stockholders $ 212,801 90,065 $ 2.36 Predecessor Two Months Ended February 28, 2017 Income (Loss) Units Per Unit (in thousands, except per unit data) Basic and Diluted: Income from continuing operations $ 2,397,609 352,792 $ 6.80 Loss from discontinued operations, net of income taxes (548 ) 352,792 (0.01 ) Net income attributable to common unitholders $ 2,397,061 352,792 $ 6.79 |
Supplemental Disclosures to t38
Supplemental Disclosures to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Disclosures to the Condensed Consolidated Statements of Cash Flows [Abstract] | |
Other Current Assets | “Other current assets” reported on the condensed consolidated balance sheets include the following: June 30, 2018 December 31, 2017 (in thousands) Prepaids $ 14,209 $ 46,238 Receivable from related party 25,982 23,163 Inventories 3,981 7,667 Other 2,487 2,703 Other current assets $ 46,659 $ 79,771 |
Other Current Liabilities | “Other accrued liabilities” reported on the condensed consolidated balance sheets include the following: June 30, 2018 December 31, 2017 (in thousands) Accrued compensation $ 13,533 $ 29,089 Asset retirement obligations (current portion) 1,488 3,926 Deposits 3,170 15,349 Income taxes payable 23 7,496 Other 1,616 2,757 Other accrued liabilities $ 19,830 $ 58,617 |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash and cash equivalents on the condensed consolidated balance sheets to cash, cash equivalents and restricted cash on the condensed consolidated statement of cash flows: June 30, 2018 December 31, 2017 (in thousands) Cash and cash equivalents $ 301,365 $ 464,508 Restricted cash 43,387 56,445 Cash, cash equivalents and restricted cash $ 344,752 $ 520,953 |
Supplemental Disclosures to the Condensed Consolidated Statements of Cash Flows | Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: Successor Predecessor Six Months Ended June 30, 2018 Four Months Ended June 30, 2017 Two Months Ended February 28, 2017 (in thousands) Cash payments for interest, net of amounts capitalized $ — $ 14,436 $ 17,651 Cash payments for income taxes $ 7,748 $ 215 $ — Cash payments for reorganization items, net $ 2,911 $ 6,300 $ 21,571 Noncash investing activities: Accrued capital expenditures $ 21,968 $ 34,547 $ 22,191 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables present the Company’s financial information by reportable segment: Successor Three Months Ended June 30, 2018 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 87,004 $ — $ — $ 87,004 Marketing revenues 22,901 20,066 — 42,967 Other revenues 6,387 — — 6,387 116,292 20,066 — 136,358 Lease operating expenses 24,088 — — 24,088 Transportation expenses 21,213 — — 21,213 Marketing expenses 20,244 20,083 — 40,327 Taxes other than income taxes 6,737 285 275 7,297 Total direct operating expenses 72,282 20,368 275 92,925 Field level cash flow $ 44,010 $ (302 ) (275 ) 43,433 Losses on oil and natural gas derivatives (7,525 ) (7,525 ) Other indirect income (expenses) (23,283 ) (23,283 ) Income from continuing operations before income taxes $ 12,625 Successor Three Months Ended June 30, 2017 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 243,167 $ — $ — $ 243,167 Marketing revenues 10,793 1,754 — 12,547 Other revenues 6,391 — — 6,391 260,351 1,754 — 262,105 Lease operating expenses 71,057 — — 71,057 Transportation expenses 37,388 — — 37,388 Marketing expenses 6,156 820 — 6,976 Taxes other than income taxes 17,486 116 269 17,871 Total direct operating expenses 132,087 936 269 133,292 Field level cash flow $ 128,264 $ 818 (269 ) 128,813 Gains on oil and natural gas derivatives 45,714 45,714 Other indirect income (expenses) 207,622 207,622 Income from continuing operations before income taxes $ 382,149 Successor Six Months Ended June 30, 2018 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 223,880 $ — $ — $ 223,880 Marketing revenues 47,276 41,958 — 89,234 Other revenues 12,281 — — 12,281 283,437 41,958 — 325,395 Lease operating expenses 71,972 — — 71,972 Transportation expenses 40,307 — — 40,307 Marketing expenses 41,380 40,702 — 82,082 Taxes other than income taxes 14,908 477 364 15,749 Total direct operating expenses 168,567 41,179 364 210,110 Field level cash flow $ 114,870 $ 779 (364 ) 115,285 Losses on oil and natural gas derivatives (22,555 ) (22,555 ) Other indirect income (expenses) 31,167 31,167 Income from continuing operations before income taxes $ 123,897 Successor Four Months Ended June 30, 2017 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 323,492 $ — $ — $ 323,492 Marketing revenues 13,273 2,188 — 15,461 Other revenues 8,419 — — 8,419 345,184 2,188 — 347,372 Lease operating expenses 95,687 — — 95,687 Transportation expenses 51,111 — — 51,111 Marketing expenses 8,513 1,002 — 9,515 Taxes other than income taxes 24,478 155 315 24,948 Total direct operating expenses 179,789 1,157 315 181,261 Field level cash flow $ 165,395 $ 1,031 (315 ) 166,111 Gains on oil and natural gas derivatives 33,755 33,755 Other indirect income (expenses) 169,644 169,644 Income from continuing operations before income taxes $ 369,510 Predecessor Two Months Ended February 28, 2017 Upstream Chisholm Trail Not Allocated to Segments Consolidated (in thousands) Oil, natural gas and natural gas liquids sales $ 188,885 $ — $ — $ 188,885 Marketing revenues 5,999 637 — 6,636 Other revenues 9,915 — — 9,915 204,799 637 — 205,436 Lease operating expenses 49,665 — — 49,665 Transportation expenses 25,972 — — 25,972 Marketing expenses 4,602 218 — 4,820 Taxes other than income taxes 14,773 78 26 14,877 Total direct operating expenses 95,012 296 26 95,334 Field level cash flow $ 109,787 $ 341 (26 ) 110,102 Gains on oil and natural gas derivatives 92,691 92,691 Other indirect income (expenses) 2,194,650 2,194,650 Income from continuing operations before income taxes $ 2,397,443 |
Basis of Presentation Details (
Basis of Presentation Details (Details) - Successor - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Item Effected [Line Items] | ||||
Natural Gas | $ 53,662 | $ 116,990 | ||
Oil | 10,919 | 56,615 | ||
NGL | 22,423 | 50,275 | ||
Oil, natural gas and natural gas liquids sales | 87,004 | $ 243,167 | $ 323,492 | 223,880 |
Marketing revenues | 42,967 | 12,547 | 15,461 | 89,234 |
Other revenues | 6,387 | 6,391 | 8,419 | 12,281 |
Revenues | 136,358 | 262,105 | 347,372 | 325,395 |
Transportation expenses | 21,213 | 37,388 | 51,111 | 40,307 |
Marketing expenses | 40,327 | 6,976 | 9,515 | 82,082 |
Interest expense | 584 | 7,551 | 11,751 | 988 |
Net income | 6,903 | $ 220,057 | $ 212,801 | 78,001 |
Accounting Standards Update 2014-09 [Member] | ||||
Item Effected [Line Items] | ||||
Natural Gas | 377 | (804) | ||
Oil | 0 | 0 | ||
NGL | 143 | 53 | ||
Oil, natural gas and natural gas liquids sales | 520 | (751) | ||
Marketing revenues | 17,561 | 35,713 | ||
Other revenues | 384 | 605 | ||
Revenues | 18,465 | 35,567 | ||
Transportation expenses | 520 | (751) | ||
Marketing expenses | 17,561 | 35,713 | ||
Interest expense | 164 | 164 | ||
Net income | 220 | 441 | ||
ASC 606 [Member] | ||||
Item Effected [Line Items] | ||||
Natural Gas | 53,662 | 116,990 | ||
Oil | 10,919 | 56,615 | ||
NGL | 22,423 | 50,275 | ||
Oil, natural gas and natural gas liquids sales | 87,004 | 223,880 | ||
Marketing revenues | 42,967 | 89,234 | ||
Other revenues | 6,387 | 12,281 | ||
Revenues | 136,358 | 325,395 | ||
Transportation expenses | 21,213 | 40,307 | ||
Marketing expenses | 40,327 | 82,082 | ||
Interest expense | 584 | 988 | ||
Net income | 6,903 | 78,001 | ||
ASC 605 [Member] | ||||
Item Effected [Line Items] | ||||
Natural Gas | 53,285 | 117,794 | ||
Oil | 10,919 | 56,615 | ||
NGL | 22,280 | 50,222 | ||
Oil, natural gas and natural gas liquids sales | 86,484 | 224,631 | ||
Marketing revenues | 25,406 | 53,521 | ||
Other revenues | 6,003 | 11,676 | ||
Revenues | 117,893 | 289,828 | ||
Transportation expenses | 20,693 | 41,058 | ||
Marketing expenses | 22,766 | 46,369 | ||
Interest expense | 420 | 824 | ||
Net income | $ 6,683 | $ 77,560 |
Emergence From Voluntary Reor41
Emergence From Voluntary Reorganization Under Chapter 11 and Fresh Start Accounting Reorganization (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Predecessor | |||||
Reorganization Items | |||||
Gain on settlement of liabilities subject to compromise | $ 3,724,750 | ||||
Recognition of an additional claim for the Predecessor’s Second Lien Notes settlement | (1,000,000) | ||||
Fresh start valuation adjustments | (591,525) | ||||
Income tax benefit related to implementation of the Plan | 264,889 | ||||
Legal and other professional advisory fees | (46,961) | ||||
Terminated contracts | (6,915) | ||||
Other | (13,049) | ||||
Total reorganization items, net | $ 2,331,189 | ||||
Successor | |||||
Reorganization Items | |||||
Gain on settlement of liabilities subject to compromise | $ 0 | $ 0 | |||
Recognition of an additional claim for the Predecessor’s Second Lien Notes settlement | 0 | 0 | |||
Fresh start valuation adjustments | 0 | 0 | |||
Income tax benefit related to implementation of the Plan | 0 | 0 | |||
Legal and other professional advisory fees | $ (1,255) | $ (3,446) | (6,016) | (3,207) | |
Terminated contracts | 0 | 0 | |||
Other | (4) | 69 | 74 | (3) | |
Total reorganization items, net | $ (1,259) | $ (3,377) | $ (5,942) | $ (3,210) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Accounts Receivable | $ 56 | $ 117 |
Revenues Disaggregated revenues
Revenues Disaggregated revenues (Details) - Successor - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | $ 53,662 | $ 116,990 | ||
Oil | 10,919 | 56,615 | ||
NGL | 22,423 | 50,275 | ||
Oil, natural gas and natural gas liquids sales | 87,004 | $ 243,167 | $ 323,492 | 223,880 |
Marketing revenues | 42,967 | 12,547 | 15,461 | 89,234 |
Other revenues | 6,387 | 6,391 | 8,419 | 12,281 |
Total | 136,358 | $ 262,105 | $ 347,372 | 325,395 |
East Texas | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 12,661 | 27,437 | ||
Oil | 1,091 | 2,431 | ||
NGL | 1,013 | 2,319 | ||
Oil, natural gas and natural gas liquids sales | 14,765 | 32,187 | ||
Marketing revenues | 467 | 503 | ||
Other revenues | 3 | 8 | ||
Total | 15,235 | 32,698 | ||
Hugoton Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 17,401 | 39,764 | ||
Oil | 238 | 2,970 | ||
NGL | 16,875 | 36,389 | ||
Oil, natural gas and natural gas liquids sales | 34,514 | 79,123 | ||
Marketing revenues | 22,421 | 46,501 | ||
Other revenues | 6,303 | 12,134 | ||
Total | 63,238 | 137,758 | ||
Mid-Continent | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 7,622 | 15,555 | ||
Oil | 4,880 | 16,747 | ||
NGL | 3,307 | 6,361 | ||
Oil, natural gas and natural gas liquids sales | 15,809 | 38,663 | ||
Marketing revenues | 0 | 0 | ||
Other revenues | 25 | 39 | ||
Total | 15,834 | 38,702 | ||
Permian Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 256 | 2,282 | ||
Oil | 546 | 20,654 | ||
NGL | (488) | 2,557 | ||
Oil, natural gas and natural gas liquids sales | 314 | 25,493 | ||
Marketing revenues | 0 | 0 | ||
Other revenues | 16 | 32 | ||
Total | 330 | 25,525 | ||
Rockies | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 2,146 | 5,526 | ||
Oil | 1,885 | 9,255 | ||
NGL | 1,201 | 2,559 | ||
Oil, natural gas and natural gas liquids sales | 5,232 | 17,340 | ||
Marketing revenues | 0 | 0 | ||
Other revenues | 1 | (1) | ||
Total | 5,233 | 17,339 | ||
North Louisiana | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 6,040 | 12,418 | ||
Oil | 1,480 | 3,049 | ||
NGL | 503 | 67 | ||
Oil, natural gas and natural gas liquids sales | 8,023 | 15,534 | ||
Marketing revenues | 13 | 272 | ||
Other revenues | 2 | 3 | ||
Total | 8,038 | 15,809 | ||
Michigan/Illinois | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 7,536 | 14,008 | ||
Oil | 799 | 1,509 | ||
NGL | 12 | 23 | ||
Oil, natural gas and natural gas liquids sales | 8,347 | 15,540 | ||
Marketing revenues | 0 | 0 | ||
Other revenues | 37 | 66 | ||
Total | 8,384 | 15,606 | ||
ChisholmTrail [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Natural Gas | 0 | 0 | ||
Oil | 0 | 0 | ||
NGL | 0 | 0 | ||
Oil, natural gas and natural gas liquids sales | 0 | 0 | ||
Marketing revenues | 20,066 | 41,958 | ||
Other revenues | 0 | 0 | ||
Total | $ 20,066 | $ 41,958 |
Divestitures and Discontinued44
Divestitures and Discontinued Operations (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jun. 30, 2017 | Apr. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||||
Assets held for sale, oil and natural gas properties | $ 92,245 | |||||
Assets held for sale, property and other equipment | 12,983 | |||||
Assets held for sale, other assets | 1,735 | |||||
Assets held for sale | $ 22 | 106,963 | ||||
Liabilities [Abstract] | ||||||
Liabilities held for sale, asset retirement obligations | 42,001 | |||||
Liabilities held for sale, other liabilities | 1,301 | |||||
Liabilities held for sale | 0 | 43,302 | ||||
Deposits | 3,170 | 15,349 | ||||
Successor | ||||||
Liabilities [Abstract] | ||||||
Liabilities held for sale | $ 43,000 | |||||
West Texas Assets Sale [Member] | ||||||
Liabilities [Abstract] | ||||||
Proceeds from Divestiture of Businesses | $ 107,000 | |||||
Costs Associated With Sale of Oil and Gas Property and Equipment | $ 2,000 | |||||
Gain (Loss) on Disposition of Oil and Gas Property | 55,000 | |||||
OK Waterfloods & TXPHS [Member] | ||||||
Liabilities [Abstract] | ||||||
Proceeds from Divestiture of Businesses | 112,000 | |||||
Deposits | $ 12,000 | |||||
Costs Associated With Sale of Oil and Gas Property and Equipment | 1,000 | |||||
Gain (Loss) on Disposition of Oil and Gas Property | $ 46,000 | |||||
OK Waterfloods & TXPHS [Member] | Successor | ||||||
ASSETS | ||||||
Assets held for sale | 107,000 | |||||
New Mexico Assets Sale [Member] | ||||||
Liabilities [Abstract] | ||||||
Proceeds from Divestiture of Businesses | $ 15,000 | |||||
Gain (Loss) on Disposition of Oil and Gas Property | 11,000 | |||||
Altamont Bluebell Assets Sale [Member] | ||||||
Liabilities [Abstract] | ||||||
Proceeds from Divestiture of Businesses | 132,000 | |||||
Costs Associated With Sale of Oil and Gas Property and Equipment | $ 2,000 | |||||
Gain (Loss) on Disposition of Oil and Gas Property | $ 83,000 | |||||
Salt Creek [Member] | Successor | ||||||
Liabilities [Abstract] | ||||||
Proceeds from Divestiture of Businesses | 76,000 | |||||
Gain (Loss) on Disposition of Oil and Gas Property | 22,000 | |||||
May-June 2017 [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contractual management fee | 6,000 | |||||
March-April 2017 [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contractual management fee | $ 2,700 |
Divestitures and Discontinued45
Divestitures and Discontinued Operations Discontinued summary financial information (Details) - USD ($) $ in Thousands | May 31, 2017 | Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 |
Successor | ||||||
Discontinued operations - Income statement disclosures | ||||||
Revenues and other | $ 20,511 | $ 27,636 | ||||
Expenses | 25,935 | 30,344 | ||||
Other income and (expenses) | (2,074) | (2,791) | ||||
Income (loss) from discontinued operations before income taxes | (7,498) | (5,499) | ||||
Income tax expense | (4,176) | (2,245) | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ (3,322) | $ (3,254) | $ 0 | ||
Predecessor | ||||||
Discontinued operations - Income statement disclosures | ||||||
Revenues and other | $ 14,891 | |||||
Expenses | 13,758 | |||||
Other income and (expenses) | (1,681) | |||||
Income (loss) from discontinued operations before income taxes | (548) | |||||
Income tax expense | 0 | |||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (548) | |||||
Jonah [Member] | Successor | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 560,000 | |||||
Discontinued operations - Income statement disclosures | ||||||
Costs Associated With Sale of Oil and Gas Property and Equipment | 6,000 | |||||
Gain (Loss) on Disposition of Oil and Gas Property | $ 279,000 |
Oil and Natural Gas Propertie46
Oil and Natural Gas Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Proved properties | $ 739,656 | $ 904,390 |
Unproved properties | 46,159 | 45,693 |
Oil and natural gas properties (successful efforts method) | 785,815 | 950,083 |
Less accumulated depletion and amortization | (59,870) | (49,619) |
Oil and natural gas properties, successful efforts method, net | $ 725,945 | $ 900,464 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 473,269 | $ 464,926 |
Roan Resources LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 355,000 | |
Successor | Roan Resources LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Equity method investments | $ 466,000 | $ 458,000 |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 346,000 |
Equity Method Investments Summa
Equity Method Investments Summarized Roan Resources LLC Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Equity Method Investments [Abstract] | ||
Revenues and other | $ 44,789 | $ 145,873 |
Expenses | 72,754 | 130,663 |
Other income and (expenses) | (1,087) | (2,886) |
Net income (loss) | $ (29,052) | $ 12,324 |
Debt (Details)
Debt (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($) | Apr. 30, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 425 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | |
Long-term Line of Credit | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | 378 | |
Letters of Credit Outstanding, Amount | $ 47 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |
Line Of Credit Facility Portion Of Properties Required To Maintain Mortgages | 85.00% | |
Debt to EBITDAX Ratio | 4 | |
Current Ratio | 1 | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
ABR [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
ABR [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.50% |
Derivatives (Commodity Derivati
Derivatives (Commodity Derivatives) (Details) | 1 Months Ended | ||
Apr. 30, 2018USD ($) | Jun. 30, 2018USD ($)MMMBTUMBbls$ / bbl$ / MMBTU | ||
Derivative [Line Items] | |||
Settlements on Canceled Derivatives | $ | $ 20,000,000 | ||
Year 2018 [Member] | Natural Gas Commodity Contract [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | 35,144 | ||
Average price (in usd per energy unit) | $ / MMBTU | 3.02 | ||
Year 2018 [Member] | Oil Commodity Contract [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | MBbls | 276 | ||
Average price (in usd per energy unit) | $ / bbl | 54.07 | ||
Year 2018 [Member] | Swap [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | [1] | 7,360 | |
Hedged Differential | $ | [1] | $ (0.67) | |
Year 2018 [Member] | Basis Swap [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | [1] | 1,840 | |
Hedged Differential | $ | [1] | $ (0.19) | |
Year 2019 [Member] | Natural Gas Commodity Contract [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | 22,265 | ||
Average price (in usd per energy unit) | $ / MMBTU | 2.89 | ||
Year 2019 [Member] | Oil Commodity Contract [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | MBbls | 183 | ||
Average price (in usd per energy unit) | $ / bbl | 64 | ||
Year 2019 [Member] | Swap [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | [1] | 14,600 | |
Hedged Differential | $ | [1] | $ (0.67) | |
Year 2019 [Member] | Basis Swap [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Hedged Volume (in energy unit) | [1] | 0 | |
Hedged Differential | $ | [1] | $ 0 | |
[1] | Settled or to be settled, as applicable, on the indicated pricing index to hedge basis differential to the NYMEX Henry Hub natural gas price. |
Derivatives (Balance Sheet Pres
Derivatives (Balance Sheet Presentation) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Assets: | ||
Commodity derivatives | $ 6,825 | $ 22,589 |
Liabilities: | ||
Commodity derivatives | 7,197 | $ 25,443 |
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 7,000 |
Derivatives (Gains (Losses) On
Derivatives (Gains (Losses) On Derivatives) (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 7,000 | ||||
Successor | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) on oil and natural gas derivatives | $ (7,525) | $ 45,714 | $ 33,755 | (22,555) | |
Cash settlements on derivatives | $ (21,000) | $ 2,000 | $ 7,929 | $ (25,037) | |
Predecessor | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) on oil and natural gas derivatives | $ 92,691 | ||||
Cash settlements on derivatives | $ (11,572) |
Fair Value Measurements on a 53
Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets: | |||
Commodity derivatives | $ 6,825 | $ 22,589 | |
Commodity derivatives | [1] | (1,637) | (12,491) |
Commodity derivatives | 5,188 | 10,098 | |
Liabilities: | |||
Commodity derivatives | 7,197 | 25,443 | |
Commodity derivatives | [1] | (1,637) | (12,491) |
Commodity derivatives | $ 5,560 | $ 12,952 | |
[1] | Represents counterparty netting under agreements governing such derivatives. |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations at December 31, 2017 | $ 164,553 |
Liabilities added from drilling | 53 |
Liabilities associated with assets divested | 62,195 |
Current year accretion expense | 4,081 |
Settlements | (1,859) |
Asset retirement obligations at June 30, 2018 | 107,019 |
Asset Retirement Obligation, Revision of Estimate | $ (2,386) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency, Damages Sought, Value | $ 31,000 | |
Payments for Legal Settlements | $ 0 | $ 0 |
Equity Equity Offering (Details
Equity Equity Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 07, 2018 | Jul. 31, 2018 | Jan. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 14, 2017 | Oct. 04, 2017 |
Schedule of Equity Offerings [Line Items] | |||||||||
Common stock issued | 78,749,510 | 83,582,176 | |||||||
Issuances of successor Class A common stock | 2,785,681 | ||||||||
Stock Repurchase Program, Authorized Amount | $ 400,000 | ||||||||
Stock Repurchased During Period, Shares | 1,557,180 | ||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 39.13 | ||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 61,000 | ||||||||
Subsequent Event [Member] | |||||||||
Schedule of Equity Offerings [Line Items] | |||||||||
Stock Repurchased During Period, Shares | 2,477,834 | 280,289 | 7,527,661 | ||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 40.30 | $ 35.94 | |||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 271,000 | $ 11,000 | $ 11,000 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Schedule of Equity Offerings [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 922,696 | ||||||||
Tender offer [Member] | |||||||||
Schedule of Equity Offerings [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 250,000 | ||||||||
Stock Repurchased During Period, Shares | 6,770,833 | ||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 48 | ||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 325,000 | ||||||||
Share tender, fees | $ 4,000 | ||||||||
Successor | |||||||||
Schedule of Equity Offerings [Line Items] | |||||||||
Issuances of successor Class A common stock | 2,786,000 | ||||||||
Stock Repurchased During Period, Shares | 7,540 | ||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 30.48 | ||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 230 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) | Dec. 31, 2017 |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 0.88% |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | Aug. 07, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jul. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 18,000 | ||||
Stock Repurchased During the Period, Restricted Stock Units | 271,314 | ||||
Stock Repurchased During Period, Shares | 1,557,180 | ||||
Cash settlements of equity classified RSUs | $ 11,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,700,000 | 4,700,000 | |||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 12,500 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 519 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 922,696 | 922,696 | |||
Liquidity program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchased During the Period, Restricted Stock Units | 1,028,875 | ||||
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $ 45,000 | ||||
Stock Repurchased During Period, Shares | 120,829 | ||||
Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchased During Period, Shares | 2,477,834 | 280,289 | 7,527,661 | ||
Cash settlements of equity classified RSUs | $ 102,000 |
Share-Based Compensation (Compe
Share-Based Compensation (Compensation Expenses) (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,700,000 | 4,700,000 | 4,700,000 | ||||
Stock Repurchased During the Period, Restricted Stock Units | 271,314 | ||||||
Cash settlements of equity classified RSUs | $ 11,000 | ||||||
Share-based payment liability | 111,792 | $ 111,792 | $ 111,792 | $ 0 | |||
Successor | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||||
Cash settlements of equity classified RSUs | $ 0 | 58,162 | |||||
Share/unit-based compensation expenses | 19,599 | 75,225 | |||||
Income tax benefit | $ 3,555 | 6,732 | |||||
Predecessor | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||||
Earnings Per Share, Basic and Diluted | $ 6.79 | ||||||
Cash settlements of equity classified RSUs | $ 0 | ||||||
Share/unit-based compensation expenses | 50,255 | 58,188 | $ 15,422 | ||||
Income tax benefit | $ 5,170 | 4,315 | $ 3,128 | ||||
Common Class A [Member] | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||||
Share-based payment liability | $ 112,000 | $ 112,000 | $ 112,000 |
Earnings Per Share_Unit (Detail
Earnings Per Share/Unit (Details) - shares | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended |
Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average anti-dilutive unit equivalents excluded from computation of earnings per unit (in units) | 1,989 | |||
Earnings Per Share, Potentially Dilutive Securities | 0 | |||
Class B Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average anti-dilutive unit equivalents excluded from computation of earnings per unit (in units) | 3,470,051 | 3,470,051 |
Earnings Per Share_Unit EPS Cal
Earnings Per Share/Unit EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Effect of Dilutive Securities: | |||||
Dilutive effect of restricted stock units | 559 | 947 | |||
Basic and Diluted: | |||||
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | $ 0 | $ 0 | $ 0 | $ 0 | |
Predecessor | |||||
Basic: | |||||
Weighted average shares outstanding - basic | 352,792 | ||||
Net income attributable to common stockholders | $ 6.79 | ||||
Diluted: | |||||
Weighted average shares outstanding - diluted | (352,792) | ||||
Net income attributable to common stockholders | $ 6.79 | ||||
Basic and Diluted: | |||||
Loss from continuing operations | $ 2,397,609,000 | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 352,792 | ||||
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ 6.80 | ||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share | (0.01) | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | (0.01) | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 6.80 | ||||
Loss from discontinued operations, net of income taxes | $ (548,000) | ||||
Net income | $ 2,397,061,000 | ||||
Loss from continuing operations | $ 6.80 | ||||
Loss from discontinued operations, net of income taxes | (0.01) | ||||
Earnings Per Share, Basic and Diluted | $ 6.79 | ||||
Successor | |||||
Basic: | |||||
Net income attributable to common stockholders | $ 5,104,000 | $ 74,928,000 | |||
Weighted average shares outstanding - basic | 78,718 | 89,849 | 89,849 | 78,817 | |
Net income attributable to common stockholders | $ 0.06 | $ 2.45 | $ 2.37 | $ 0.95 | |
Effect of Dilutive Securities: | |||||
Dilutive effect of unvested Class A-2 units of Holdco | $ 0 | $ (1,140,000) | |||
Dilutive effect of restricted stock units | 0 | 635 | 216 | 0 | |
Diluted: | |||||
Net income attributable to common stockholders | $ 5,104,000 | $ 73,788,000 | |||
Weighted average shares outstanding - diluted | (79,277) | (90,484) | (90,065) | (79,764) | |
Net income attributable to common stockholders | $ 0.06 | $ 2.43 | $ 2.36 | $ 0.93 | |
Basic and Diluted: | |||||
Loss from continuing operations | $ 223,379,000 | $ 216,055,000 | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 89,849 | 89,849 | |||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | $ (0.04) | $ (0.04) | 0 | |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.06 | $ 2.49 | $ 2.41 | $ 0.95 | |
Loss from discontinued operations, net of income taxes | $ (3,322,000) | $ (3,254,000) | $ 0 | ||
Net income | $ 5,104,000 | $ 220,057,000 | $ 212,801,000 | $ 74,928,000 | |
Loss from continuing operations | $ 0.06 | $ 2.47 | $ 2.40 | $ 0.93 | |
Loss from discontinued operations, net of income taxes | $ 0 | $ (0.04) | $ (0.04) | $ 0 |
Income Taxes Details (Details)
Income Taxes Details (Details) | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 45.00% | 42.00% | 42.00% | |
Blended Tax Rate | 24.00% |
Supplemental Disclosures to t63
Supplemental Disclosures to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows (Cash Flows) (Details) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of supplemental cash flow disclosures [Line Items] | |||||
Cash and cash equivalents | $ 301,365 | $ 464,508 | |||
Restricted cash | 43,387 | 56,445 | |||
Cash payments for interest, net of amounts capitalized | $ 17,651 | $ 14,436 | 0 | ||
Cash payments for income taxes | 0 | 215 | 7,748 | ||
Cash payments for reorganization items, net | 21,571 | 6,300 | 2,911 | ||
Noncash investing activities: | |||||
Accrued capital expenditures | 22,191 | 34,547 | 21,968 | ||
Successor | |||||
Schedule of supplemental cash flow disclosures [Line Items] | |||||
Cash, cash equivalents and restricted cash | 144,022 | $ 115,519 | 344,752 | 520,953 | |
Predecessor | |||||
Schedule of supplemental cash flow disclosures [Line Items] | |||||
Increase (Decrease) in Restricted Cash for Operating Activities | 80,000 | ||||
Cash, cash equivalents and restricted cash | $ 144,022 | $ 704,234 | |||
Professional fees [Member] | Successor | |||||
Schedule of supplemental cash flow disclosures [Line Items] | |||||
Restricted cash | 33,000 | 36,000 | |||
Deposits for divestitures [Member] | Successor | |||||
Schedule of supplemental cash flow disclosures [Line Items] | |||||
Restricted cash | 3,000 | 15,000 | |||
Other [Member] | Successor | |||||
Schedule of supplemental cash flow disclosures [Line Items] | |||||
Restricted cash | $ 7,000 | $ 5,000 |
Supplemental Disclosures to t64
Supplemental Disclosures to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other current assets | ||
Prepaids | $ 14,209 | $ 46,238 |
Receivable from related party | 25,982 | 23,163 |
Inventories | 3,981 | 7,667 |
Other | 2,487 | 2,703 |
Other current assets | 46,659 | 79,771 |
Other accrued liabilities | ||
Accrued compensation | 13,533 | 29,089 |
Asset retirement obligations (current portion) | 1,488 | 3,926 |
Deposits | 3,170 | 15,349 |
Income taxes payable | 23 | 7,496 |
Other | 1,616 | 2,757 |
Other accrued liabilities | $ 19,830 | $ 58,617 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Aug. 31, 2017 | |
Roan Resources LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Related party monthly fee | $ 1,000 | $ 1,250 | $ 5,000 | |||
Related Party Transaction, Purchases from Related Party | 15,000 | 32,000 | ||||
Revenue from Related Parties | $ 23,000 | 26,000 | ||||
Due to Related Parties, Current | $ 11,000 | $ 18,000 | $ 11,000 | |||
Berry [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 6,000 | |||||
LinnCo [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
General and administrative expenses | 287 | |||||
Related Party Transaction, Amounts of Transaction | $ 240 |
Segments Segments (Details)
Segments Segments (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | |
Predecessor | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | $ 188,885 | ||||
Marketing revenues | 6,636 | ||||
Other revenues | 9,915 | ||||
Total | 205,436 | ||||
Lease operating expenses | 49,665 | ||||
Transportation expenses | 25,972 | ||||
Marketing expenses | 4,820 | ||||
Taxes other than income taxes | 14,877 | ||||
Total direct operating expenses | 95,334 | ||||
Field level cash flow | 110,102 | ||||
Gains on oil and natural gas derivatives | 92,691 | ||||
Other indirect income (expenses) | 2,194,650 | ||||
Income from continuing operations before income taxes | 2,397,443 | ||||
Predecessor | Upstream | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | 188,885 | ||||
Marketing revenues | 5,999 | ||||
Other revenues | 9,915 | ||||
Total | 204,799 | ||||
Lease operating expenses | 49,665 | ||||
Transportation expenses | 25,972 | ||||
Marketing expenses | 4,602 | ||||
Taxes other than income taxes | 14,773 | ||||
Total direct operating expenses | 95,012 | ||||
Field level cash flow | 109,787 | ||||
Predecessor | Chisholm Trail | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | 0 | ||||
Marketing revenues | 637 | ||||
Other revenues | 0 | ||||
Total | 637 | ||||
Lease operating expenses | 0 | ||||
Transportation expenses | 0 | ||||
Marketing expenses | 218 | ||||
Taxes other than income taxes | 78 | ||||
Total direct operating expenses | 296 | ||||
Field level cash flow | 341 | ||||
Predecessor | Not Allocated to Segments | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | 0 | ||||
Marketing revenues | 0 | ||||
Other revenues | 0 | ||||
Total | 0 | ||||
Lease operating expenses | 0 | ||||
Transportation expenses | 0 | ||||
Marketing expenses | 0 | ||||
Taxes other than income taxes | 26 | ||||
Total direct operating expenses | 26 | ||||
Field level cash flow | (26) | ||||
Gains on oil and natural gas derivatives | 92,691 | ||||
Other indirect income (expenses) | $ 2,194,650 | ||||
Successor | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | $ 87,004 | $ 243,167 | $ 323,492 | $ 223,880 | |
Marketing revenues | 42,967 | 12,547 | 15,461 | 89,234 | |
Other revenues | 6,387 | 6,391 | 8,419 | 12,281 | |
Total | 136,358 | 262,105 | 347,372 | 325,395 | |
Lease operating expenses | 24,088 | 71,057 | 95,687 | 71,972 | |
Transportation expenses | 21,213 | 37,388 | 51,111 | 40,307 | |
Marketing expenses | 40,327 | 6,976 | 9,515 | 82,082 | |
Taxes other than income taxes | 7,297 | 17,871 | 24,948 | 15,749 | |
Total direct operating expenses | 92,925 | 133,292 | 181,261 | 210,110 | |
Field level cash flow | 43,433 | 128,813 | 166,111 | 115,285 | |
Gains on oil and natural gas derivatives | (7,525) | 45,714 | 33,755 | (22,555) | |
Other indirect income (expenses) | (23,283) | 207,622 | 169,644 | 31,167 | |
Income from continuing operations before income taxes | 12,625 | 382,149 | 369,510 | 123,897 | |
Successor | Upstream | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | 87,004 | 243,167 | 323,492 | 223,880 | |
Marketing revenues | 22,901 | 10,793 | 13,273 | 47,276 | |
Other revenues | 6,387 | 6,391 | 8,419 | 12,281 | |
Total | 116,292 | 260,351 | 345,184 | 283,437 | |
Lease operating expenses | 24,088 | 71,057 | 95,687 | 71,972 | |
Transportation expenses | 21,213 | 37,388 | 51,111 | 40,307 | |
Marketing expenses | 20,244 | 6,156 | 8,513 | 41,380 | |
Taxes other than income taxes | 6,737 | 17,486 | 24,478 | 14,908 | |
Total direct operating expenses | 72,282 | 132,087 | 179,789 | 168,567 | |
Field level cash flow | 44,010 | 128,264 | 165,395 | 114,870 | |
Successor | Chisholm Trail | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | 0 | 0 | 0 | 0 | |
Marketing revenues | 20,066 | 1,754 | 2,188 | 41,958 | |
Other revenues | 0 | 0 | 0 | 0 | |
Total | 20,066 | 1,754 | 2,188 | 41,958 | |
Lease operating expenses | 0 | 0 | 0 | 0 | |
Transportation expenses | 0 | 0 | 0 | 0 | |
Marketing expenses | 20,083 | 820 | 1,002 | 40,702 | |
Taxes other than income taxes | 285 | 116 | 155 | 477 | |
Total direct operating expenses | 20,368 | 936 | 1,157 | 41,179 | |
Field level cash flow | (302) | 818 | 1,031 | 779 | |
Successor | Not Allocated to Segments | |||||
Segment Reporting Information [Line Items] | |||||
Oil, natural gas and natural gas liquids sales | 0 | 0 | 0 | 0 | |
Marketing revenues | 0 | 0 | 0 | 0 | |
Other revenues | 0 | 0 | 0 | 0 | |
Total | 0 | 0 | 0 | 0 | |
Lease operating expenses | 0 | 0 | 0 | 0 | |
Transportation expenses | 0 | 0 | 0 | 0 | |
Marketing expenses | 0 | 0 | 0 | 0 | |
Taxes other than income taxes | 275 | 269 | 315 | 364 | |
Total direct operating expenses | 275 | 269 | 315 | 364 | |
Field level cash flow | (275) | (269) | (315) | (364) | |
Gains on oil and natural gas derivatives | (7,525) | 45,714 | 33,755 | (22,555) | |
Other indirect income (expenses) | $ (23,283) | $ 207,622 | $ 169,644 | $ 31,167 |