Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 25, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35371 | |
Entity Registrant Name | Bonanza Creek Energy, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1630631 | |
Entity Address, Address Line One | 410 17th Street, | |
Entity Address, Address Line Two | Suite 1400 | |
Entity Address, City or Town | Denver, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 720 | |
Local Phone Number | 440-6100 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BCEI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding (in shares) | 30,861,324 | |
Entity Central Index Key | 0001509589 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 40,410 | $ 24,743 |
Accounts receivable, net: | ||
Oil and gas sales | 86,414 | 32,673 |
Joint interest and other | 14,512 | 14,748 |
Prepaid expenses and other | 6,421 | 3,574 |
Inventory of oilfield equipment | 12,161 | 9,185 |
Derivative assets (note 10) | 0 | 7,482 |
Total current assets | 159,918 | 92,405 |
Property and equipment (successful efforts method): | ||
Proved properties | 1,707,481 | 1,056,773 |
Less: accumulated depreciation, depletion, and amortization | (299,028) | (211,432) |
Total proved properties, net | 1,408,453 | 845,341 |
Unproved properties | 96,419 | 98,122 |
Wells in progress | 68,013 | 50,609 |
Other property and equipment, net of accumulated depreciation of $4,256 in 2021 and $3,737 in 2020 | 5,562 | 3,239 |
Total property and equipment, net | 1,578,447 | 997,311 |
Right-of-use assets (note 4) | 28,046 | 29,705 |
Deferred income tax assets (note 12) | 165,666 | 60,520 |
Other noncurrent assets | 5,007 | 2,871 |
Total assets | 1,937,084 | 1,182,812 |
Current liabilities: | ||
Accounts payable and accrued expenses (note 2) | 95,051 | 37,425 |
Oil and gas revenue distribution payable | 62,644 | 18,613 |
Lease liability (note 4) | 11,624 | 12,044 |
Derivative liability (note 10) | 92,784 | 6,402 |
Total current liabilities | 262,103 | 74,484 |
Long-term liabilities: | ||
Senior notes (note 5) | 100,000 | 0 |
Credit facility (note 5) | 60,000 | 0 |
Lease liability (note 4) | 16,733 | 17,978 |
Ad valorem taxes and other | 21,192 | 15,069 |
Derivative liability (note 10) | 9,044 | 1,330 |
Asset retirement obligations for oil and gas properties (note 9) | 50,762 | 28,699 |
Total liabilities | 519,834 | 137,560 |
Commitments and contingencies (note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $0.01 par value, 225,000,000 shares authorized, 30,858,813 and 20,839,227 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 4,378 | 4,282 |
Additional paid-in capital | 1,085,968 | 707,209 |
Retained earnings | 326,904 | 333,761 |
Total stockholders’ equity | 1,417,250 | 1,045,252 |
Total liabilities and stockholders’ equity | $ 1,937,084 | $ 1,182,812 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Other property and equipment, accumulated depreciation | $ 4,256 | $ 3,737 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 225,000,000 | 225,000,000 |
Common stock, shares issued (in shares) | 30,858,813 | 20,839,227 |
Common stock, shares outstanding (in shares) | 30,858,813 | 20,839,227 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating net revenues: | ||||
Oil and gas sales | $ 189,963,000 | $ 58,858,000 | $ 420,157,000 | $ 155,455,000 |
Operating expenses: | ||||
Lease operating expense | 11,560,000 | 5,393,000 | 28,649,000 | 16,887,000 |
Severance and ad valorem taxes | 9,205,000 | (7,063,000) | 23,622,000 | 1,588,000 |
Exploration | 1,513,000 | 66,000 | 5,156,000 | 551,000 |
Depreciation, depletion, and amortization | 35,604,000 | 23,439,000 | 89,433,000 | 67,306,000 |
Abandonment and impairment of unproved properties | 0 | 223,000 | 2,215,000 | 30,589,000 |
Unused commitments | 3,364,000 | 0 | 7,692,000 | 0 |
Bad debt expense | 279,000 | 102,000 | 279,000 | 678,000 |
Merger transaction costs | 5,580,000 | 888,000 | 27,121,000 | 909,000 |
General and administrative expense (including $2,289, $1,723, $6,096, and $4,436 respectively, of stock-based compensation) | 11,724,000 | 8,031,000 | 33,119,000 | 25,845,000 |
Total operating expenses | 96,097,000 | 39,827,000 | 261,393,000 | 167,661,000 |
Other income (expense): | ||||
Derivative gain (loss) | (36,224,000) | (10,670,000) | (133,613,000) | 64,603,000 |
Interest expense, net | (3,025,000) | (356,000) | (6,685,000) | (1,557,000) |
Gain (loss) on property transactions, net | 951,000 | 0 | 951,000 | (1,398,000) |
Other income (expense) | 687,000 | (65,000) | 964,000 | (1,853,000) |
Total other income (expense) | (37,611,000) | (11,091,000) | (138,383,000) | 59,795,000 |
Income from operations before taxes | 56,255,000 | 7,940,000 | 20,381,000 | 47,589,000 |
Income tax expense | (15,596,000) | (4,689,000) | (5,160,000) | (4,689,000) |
Net income | 40,659,000 | 3,251,000 | 15,221,000 | 42,900,000 |
Comprehensive income | $ 40,659,000 | $ 3,251,000 | $ 15,221,000 | $ 42,900,000 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 1.32 | $ 0.16 | $ 0.55 | $ 2.07 |
Diluted (in dollars per share) | $ 1.31 | $ 0.16 | $ 0.55 | $ 2.06 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 30,849 | 20,832 | 27,485 | 20,753 |
Diluted (in shares) | 31,138 | 20,903 | 27,839 | 20,826 |
Midstream operating expense | ||||
Operating expenses: | ||||
Operating expenses | $ 3,163,000 | $ 3,970,000 | $ 11,314,000 | $ 11,338,000 |
Gathering, transportation, and processing | ||||
Operating expenses: | ||||
Operating expenses | $ 14,105,000 | $ 4,778,000 | $ 32,793,000 | $ 11,970,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
General and administrative expense, stock-based compensation | $ 2,289 | $ 1,723 | $ 6,096 | $ 4,436 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 20,643,738 | |||
Balance at beginning of period at Dec. 31, 2019 | $ 936,690 | $ 4,284 | $ 702,173 | $ 230,233 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted common stock issued (in shares) | 13,674 | |||
Stock used for tax withholdings (in shares) | (2,330) | |||
Stock used for tax withholdings | (61) | (61) | ||
Stock-based compensation | 1,239 | 1,239 | ||
Net income (loss) | 78,551 | 78,551 | ||
Balance at end of period (in shares) at Mar. 31, 2020 | 20,655,082 | |||
Balance at end of period at Mar. 31, 2020 | 1,016,419 | $ 4,284 | 703,351 | 308,784 |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 20,643,738 | |||
Balance at beginning of period at Dec. 31, 2019 | 936,690 | $ 4,284 | 702,173 | 230,233 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 42,900 | |||
Balance at end of period (in shares) at Sep. 30, 2020 | 20,834,028 | |||
Balance at end of period at Sep. 30, 2020 | 982,952 | $ 4,282 | 705,537 | 273,133 |
Balance at beginning of period (in shares) at Mar. 31, 2020 | 20,655,082 | |||
Balance at beginning of period at Mar. 31, 2020 | 1,016,419 | $ 4,284 | 703,351 | 308,784 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted common stock issued (in shares) | 228,149 | |||
Stock used for tax withholdings (in shares) | (56,904) | |||
Stock used for tax withholdings | (953) | $ (2) | (951) | |
Stock-based compensation | 1,474 | 1,474 | ||
Net income (loss) | (38,902) | (38,902) | ||
Balance at end of period (in shares) at Jun. 30, 2020 | 20,826,327 | |||
Balance at end of period at Jun. 30, 2020 | 978,038 | $ 4,282 | 703,874 | 269,882 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted common stock issued (in shares) | 10,849 | |||
Stock used for tax withholdings (in shares) | (3,148) | |||
Stock used for tax withholdings | (60) | (60) | ||
Stock-based compensation | 1,723 | 1,723 | ||
Net income (loss) | 3,251 | 3,251 | ||
Balance at end of period (in shares) at Sep. 30, 2020 | 20,834,028 | |||
Balance at end of period at Sep. 30, 2020 | 982,952 | $ 4,282 | 705,537 | 273,133 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 20,839,227 | |||
Balance at beginning of period at Dec. 31, 2020 | 1,045,252 | $ 4,282 | 707,209 | 333,761 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted common stock issued (in shares) | 109 | |||
Stock used for tax withholdings (in shares) | (38) | |||
Exercise of stock options (in shares) | 429 | |||
Exercise of stock options | 15 | 15 | ||
Stock-based compensation | 1,612 | 1,612 | ||
Net income (loss) | (119) | (119) | ||
Balance at end of period (in shares) at Mar. 31, 2021 | 20,839,727 | |||
Balance at end of period at Mar. 31, 2021 | 1,046,760 | $ 4,282 | 708,836 | 333,642 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 20,839,227 | |||
Balance at beginning of period at Dec. 31, 2020 | 1,045,252 | $ 4,282 | 707,209 | 333,761 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 15,221 | |||
Balance at end of period (in shares) at Sep. 30, 2021 | 30,858,813 | |||
Balance at end of period at Sep. 30, 2021 | 1,417,250 | $ 4,378 | 1,085,968 | 326,904 |
Balance at beginning of period (in shares) at Mar. 31, 2021 | 20,839,727 | |||
Balance at beginning of period at Mar. 31, 2021 | $ 1,046,760 | $ 4,282 | 708,836 | 333,642 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance pursuant to acquisition (in shares) | 9,802,166 | |||
Issuance pursuant to acquisition | $ 374,933 | $ 98 | 374,835 | |
Restricted common stock issued (in shares) | 261,539 | |||
Stock used for tax withholdings (in shares) | (70,330) | |||
Stock used for tax withholdings | (2,816) | $ (2) | (2,814) | |
Exercise of stock options (in shares) | 11,523 | |||
Exercise of stock options | 394 | 394 | ||
Stock-based compensation | 2,195 | 2,195 | ||
Dividends declared | (11,033) | (11,033) | ||
Net income (loss) | (25,319) | (25,319) | ||
Balance at end of period (in shares) at Jun. 30, 2021 | 30,844,625 | |||
Balance at end of period at Jun. 30, 2021 | 1,385,114 | $ 4,378 | 1,083,446 | 297,290 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted common stock issued (in shares) | 5,987 | |||
Stock used for tax withholdings (in shares) | (1,725) | |||
Stock used for tax withholdings | (74) | (74) | ||
Exercise of stock options (in shares) | 9,926 | |||
Exercise of stock options | 307 | 307 | ||
Stock-based compensation | 2,289 | 2,289 | ||
Dividends declared | (11,045) | (11,045) | ||
Net income (loss) | 40,659 | 40,659 | ||
Balance at end of period (in shares) at Sep. 30, 2021 | 30,858,813 | |||
Balance at end of period at Sep. 30, 2021 | $ 1,417,250 | $ 4,378 | $ 1,085,968 | $ 326,904 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from operating activities: | |||
Net income | $ 15,221,000 | $ 42,900,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion, and amortization | 89,433,000 | 67,306,000 | |
Deferred income tax expense | 5,368,000 | 4,689,000 | |
Abandonment and impairment of unproved properties | 2,215,000 | 30,589,000 | |
Stock-based compensation | 6,096,000 | 4,436,000 | |
Non-cash lease component | 14,000 | (168,000) | |
Amortization of deferred financing costs | 963,000 | 772,000 | |
Derivative (gain) loss | 133,613,000 | (64,603,000) | |
Derivative cash settlement gain (loss) | (50,536,000) | 42,494,000 | |
(Gain) loss on property transactions, net | (951,000) | 1,398,000 | |
Other | 0 | (1,166,000) | |
Changes in current assets and liabilities: | |||
Accounts receivable, net | (17,050,000) | 24,262,000 | |
Prepaid expenses and other assets | 2,244,000 | 3,364,000 | |
Accounts payable and accrued liabilities | 9,504,000 | (41,692,000) | |
Settlement of asset retirement obligations | (3,891,000) | (3,137,000) | |
Net cash provided by operating activities | 192,243,000 | 111,444,000 | |
Cash flows from investing activities: | |||
Acquisition of oil and gas properties | (620,000) | (853,000) | |
Cash acquired | 49,827,000 | 0 | |
Exploration and development of oil and gas properties | (104,207,000) | (56,216,000) | |
Additions to other property and equipment | (72,000) | (440,000) | |
Proceeds from note receivable | 204,000 | 0 | |
Net cash used in investing activities | (54,868,000) | (57,509,000) | |
Cash flows from financing activities: | |||
Proceeds from credit facility | 155,000,000 | 45,000,000 | |
Payments to credit facility | (249,000,000) | (105,000,000) | |
Proceeds from exercise of stock options | 716,000 | 0 | |
Payment of employee tax withholdings in exchange for the return of common stock | (2,890,000) | (1,074,000) | |
Dividends paid | (21,598,000) | 0 | |
Deferred financing costs | (3,915,000) | (13,000) | |
Principal payments on finance lease obligations | (21,000) | (71,000) | |
Net cash used in financing activities | (121,708,000) | (61,158,000) | |
Net change in cash, cash equivalents, and restricted cash | 15,667,000 | (7,223,000) | |
Cash, cash equivalents, and restricted cash: | |||
Beginning of period | 24,845,000 | 11,095,000 | |
End of period | 40,512,000 | 3,872,000 | |
Supplemental cash flow disclosure | |||
Cash paid for interest, net of capitalization | [1] | 1,684,000 | 1,472,000 |
Receivables exchanged for additional interests in oil and gas properties | [1] | 0 | 8,299,000 |
Changes in working capital related to drilling expenditures | [1] | $ (22,175,000) | $ 610,000 |
[1] | (1) Refer to Note 4 - Leases in the notes to the condensed consolidated financial statements for supplemental cash flows related to leases. |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESSBonanza Creek Energy, Inc. (“BCEI” or, together with our consolidated subsidiaries, the “Company”) is engaged primarily in acquiring, developing, extracting, and producing oil and gas properties. The Company’s assets and operations are concentrated in the rural portions of the Wattenberg Field in Colorado. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments as necessary for a fair presentation of our financial position and results of operations. The financial information as of December 31, 2020, has been derived from the audited financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”), but does not include all disclosures, including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in our 2020 Form 10-K. The Company follows the same accounting principles for preparing quarterly and annual reports. Certain prior period amounts have been reclassified to conform to the current period presentation. In connection with the preparation of the condensed consolidated financial statements, the Company evaluated subsequent events after the balance sheet date of September 30, 2021, through the filing date of this report. Principles of Consolidation The condensed consolidated balance sheets (“balance sheets”) include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of oil and gas reserves, assets and liabilities, and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Further these estimates and other factors, including those outside of the Company's control, such as the impact of commodity prices, may impact the Company's business, financial condition, results of operations and cash flows. Industry Segment and Geographic Information The Company operates in one industry segment, which is the development and production of oil, natural gas, and natural gas liquids (“NGLs”), and all of the Company's operations are conducted in the continental United States. Revenue Recognition Sales of oil, natural gas, and NGLs are recognized when performance obligations are satisfied at the point control of the product is transferred to the customer. The Company's contracts' pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of the oil or natural gas, and prevailing supply and demand conditions. As a result, the price of the oil, natural gas, and NGLs fluctuates to remain competitive with other available oil, natural gas, and NGLs supplies. As further described in Note 6 - Commitments and Contingencies , one contract with NGL Crude Logistics, LLP (“NGL Crude”, known as the “NGL Crude agreement”) has an additional aspect of variable consideration related to the minimum volume commitments (“MVCs”) as specified in the agreement. On an on-going basis, the Company performs an analysis of expected risk adjusted production applicable to the NGL Crude agreement based on approved production plans to determine if liquidated damages to NGL Crude are probable. As of September 30, 2021, the Company believes that the volumes delivered to NGL Crude will be in excess of the MVCs required based on our approved future production plan. As a result of this analysis, to date, no variable consideration related to potential liquidated damages has been considered in the transaction price for the NGL Crude agreement. Under the oil sales contracts, the Company sells oil production at the wellhead, or other contractually agreed-upon delivery points, and collects an agreed-upon index price, net of pricing differentials. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the wellhead, or other contractually agreed-upon delivery point, at the net contracted price received. Under the natural gas processing contracts, the Company delivers natural gas to an agreed-upon delivery point. The delivery points are specified within each contract, and the transfer of control varies between the inlet and outlet of the midstream processing facility. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of NGLs and residue gas. For the contracts where the Company maintains control through the outlet of the midstream processing facility, the Company recognizes revenue on a gross basis, with gathering, transportation, and processing fees presented as an expense in the Company's accompanying condensed consolidated statements of operations and comprehensive income (loss) (“statements of operations”). Alternatively, for those contracts where the Company relinquishes control at the inlet of the midstream processing facility, the Company recognizes natural gas and NGLs revenues based on the contracted amount of the proceeds received from the midstream processing entity and, as a result, the Company recognizes revenue on a net basis. Under the product sales contracts, the Company invoices customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company's product sales contracts do not give rise to contract assets or liabilities under this guidance. At September 30, 2021 and December 31, 2020, the Company's receivables from contracts with customers were $86.4 million and $32.7 million, respectively. Payment is generally received within 30 to 60 days after the date of production. The Company records revenue in the month production is delivered to the purchaser. However, as stated above, settlement statements for certain natural gas and NGLs sales may not be received for 30 to 60 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month in which payment is received from the purchaser. For the period from January 1, 2021 through September 30, 2021, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was insignificant. Revenue attributable to each identified revenue stream is disaggregated below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating Revenues: Crude oil sales $ 131,360 $ 47,251 $ 297,515 $ 127,331 Natural gas sales 24,764 5,742 53,064 16,472 Natural gas liquids sales 33,839 5,865 69,578 11,652 Oil and gas sales $ 189,963 $ 58,858 $ 420,157 $ 155,455 Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets, which sums to the total of such amounts shown in the accompanying condensed consolidated statements of cash flows (“statements of cash flows”) (in thousands): As of September 30, 2021 2020 Cash and cash equivalents $ 40,410 $ 3,777 Restricted cash (1) 102 95 Total cash, cash equivalents, and restricted cash $ 40,512 $ 3,872 __________________________ (1) Included in other noncurrent assets and consists of funds for road maintenance and repairs. Unproved Property Unproved oil and gas property costs are evaluated for impairment when there is an indication that the carrying costs may not be fully recoverable. During the three and nine months ended September 30, 2021, the Company incurred zero and $2.2 million, respectively, in abandonment and impairment of unproved properties compared to $0.2 million and $30.6 million during the three and nine months ended September 30, 2020, respectively, due to the reassessment of estimated probable and possible reserve locations based primarily upon economic viability and the expiration of non-core leases. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses contain the following (in thousands): As of September 30, 2021 As of December 31, 2020 Accrued drilling and completion costs $ 22,628 $ 453 Accounts payable trade 11,740 1,931 Accrued general and administrative expense 6,667 4,942 Accrued merger transaction costs 991 2,587 Accrued lease operating expense 2,893 1,793 Accrued interest expense 4,359 322 Accrued oil and gas hedging 6,767 — Accrued production and ad valorem taxes and other 39,006 25,397 Total accounts payable and accrued expenses $ 95,051 $ 37,425 Accounting Pronouncements Recently Adopted and Issued In March 2020, the FASB issued Update No. 2020-04, Reference Rate Reform (Topic 848), which provides temporary optional guidance to companies impacted by the transition away from the LIBOR. The amendment provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. Further, in January 2021, the FASB issued Update No. 2021-01, Reference Rate Reform (Topic 848), which clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. These amendments are effective upon issuance and expire on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition on the Company's condensed consolidated financial statements. There are no other accounting standards applicable to the Company that would have a material effect on the Company's condensed consolidated financial statements and disclosures that have been issued but not yet adopted by the Company as of September 30, 2021, and through the filing date of this report. |
ACQUISITIONS & DIVESTITURES
ACQUISITIONS & DIVESTITURES | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS & DIVESTITURES | ACQUISITIONS & DIVESTITURES HighPoint Acquisition On April 1, 2021, Bonanza Creek completed its previously announced acquisition of HighPoint Resources Corporation, a Delaware corporation (“HighPoint”), pursuant to the terms of HighPoint’s prepackaged plan of reorganization under Chapter 11 of the United States Bankruptcy Code (the “Prepackaged Plan”), which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on March 18, 2021 pursuant to a confirmation order, and went effective on April 1, 2021 (the “HighPoint Merger”). The Prepackaged Plan implements the merger and restructuring transactions in accordance with the Agreement and Plan of Merger, dated as of November 9, 2020 (the “HighPoint Merger Agreement”), by and among Bonanza Creek, HighPoint and Boron Merger Sub, Inc., a wholly-owned subsidiary of Bonanza Creek (“Merger Sub”). Pursuant to the Prepackaged Plan and the HighPoint Merger Agreement, at the effective time of the HighPoint Merger (the “Effective Time”) and the effective date under the Prepackaged Plan, Merger Sub merged with and into HighPoint, with HighPoint continuing as the surviving corporation and wholly-owned subsidiary of Bonanza Creek. At the Effective Time, each eligible share of common stock, par value $0.001 per share, of HighPoint issued and outstanding immediately prior to the Effective Time was automatically converted into the right to receive 0.11464 shares of common stock, par value $0.01 per share, of Bonanza Creek (“Bonanza Creek Common Stock”), with cash paid in lieu of the issuance of any fractional shares. As a result, the Company issued approximately 487,952 shares of Bonanza Creek Common Stock to former HighPoint stockholders. Concurrently with the HighPoint Merger and pursuant to the Prepackaged Plan, and in exchange for the $625 million in aggregate principal amount outstanding of 7.0% Senior Notes due 2022 of HighPoint Operating Corporation (“HighPoint OpCo”) and 8.75% Senior Notes due 2025 of HighPoint OpCo (collectively, the “HighPoint Senior Notes”), Bonanza Creek issued to all holders of HighPoint Senior Notes an aggregate of (i) 9,314,214 shares of Bonanza Creek Common Stock and (ii) $100 million aggregate principal amount of 7.5% Senior Notes due 2026 of Bonanza Creek (“Bonanza Creek 7.5% Senior Notes”). Please refer to Note 5 - Long-term Debt for further discussion of the Bonanza Creek 7.5% Senior Notes. Immediately after the Effective Time, in connection with the HighPoint Merger, Bonanza Creek entered into the Second Amendment, dated April 1, 2021, to the Credit Facility. Please refer to Note 5 - Long-term Debt for further discussion. The following tables present the HighPoint Merger consideration and purchase price allocation of the assets acquired and the liabilities assumed in the HighPoint Merger: Merger Consideration (in thousands except per share amount) Shares of Bonanza Creek Common Stock issued to existing holders of HighPoint Common Stock (1) 488 Shares of Bonanza Creek Common Stock issued to existing holders of HighPoint Senior Notes 9,314 Total additional shares of Bonanza Creek Common Stock issued as merger consideration 9,802 Closing price per share of Bonanza Creek Common Stock (2) $ 38.25 Merger consideration paid in shares of Bonanza Creek Common Stock $ 374,933 Aggregate principal amount of Bonanza Creek 7.5% Senior Notes 100,000 Total merger consideration $ 474,933 _________________________ (1) Based on the number of shares of HighPoint Common Stock issued and outstanding as of April 1, 2021 and the conversion ratio of 0.11464 per share of Bonanza Creek Common Stock. (2) Based on the closing stock price of Bonanza Creek Common Stock on April 1, 2021. Purchase Price Allocation (in thousands) Assets Acquired Cash and cash equivalents $ 49,827 Accounts receivable - oil and gas sales 26,343 Accounts receivable - joint interest and other 9,161 Prepaid expenses and other 3,608 Inventory of oilfield equipment 4,688 Proved properties 539,820 Other property and equipment, net of accumulated depreciation 2,769 Right-of-use assets 4,010 Deferred income tax assets 110,513 Other noncurrent assets 797 Total assets acquired $ 751,536 Liabilities Assumed Accounts payable and accrued expenses $ 51,088 Oil and gas revenue distribution payable 20,786 Lease liability 744 Derivative liability 13,481 Current portion of long-term debt 154,000 Lease liability (long-term) 3,266 Ad valorem taxes 3,746 Derivative liability (long-term) 5,019 Asset retirement obligations for oil and gas properties 24,473 Total liabilities assumed 276,603 Net assets acquired $ 474,933 As part of the HighPoint Merger, the Company obtained net operating losses of $170.6 million. The HighPoint Merger was accounted for under the acquisition method of accounting for business combinations. Accordingly, we conducted assessments of the net assets acquired and recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, while transaction and integration costs associated with the acquisition were expensed as incurred. The fair value measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market, and therefore represent Level 3 inputs. The fair values of crude oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation of proved oil and gas properties include estimates of reserves, future operating and development costs, future commodity prices, estimated future cash flows, and a market-based weighted-average cost of capital rate of approximately 13%. These inputs require significant judgments and estimates by management at the time of the valuation. The following unaudited pro forma financial information represents a summary of the consolidated results of operations for the nine months ended September 30, 2021 and for the three and nine months ended September 30, 2020, assuming the acquisition had been completed as of January 1, 2020. The financial information for the three months ended September 30, 2021 is included in our statement of operations and therefore does not require a pro forma disclosure. The pro forma financial information includes certain non-recurring pro forma adjustments that were directly attributable to the business combination. The pro forma financial information is not necessarily indicative of the results of operations that would have been achieved if the acquisition had been effective as of these dates, or of future results. Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 (in thousands, except per share data) Total revenue $ 126,163 $ 492,176 $ 345,626 Net income (loss) 16,030 (26,058) (1,007,643) Net income (loss) per common share: Basic $ 0.52 $ (0.84) $ (32.98) Diluted $ 0.52 $ (0.84) $ (32.98) Extraction Merger On May 9, 2021, Bonanza Creek, Raptor Eagle Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Bonanza Creek, and Extraction Oil & Gas, Inc., a Delaware corporation (“XOG”), entered into an Agreement and Plan of Merger (the “XOG Merger Agreement”), providing for a merger of equals between Bonanza Creek and XOG (the “XOG Merger”). The XOG Merger is expected to close in November 2021, contingent upon a number of factors disclosed in the XOG Merger Agreement. Once closed, the Company intends to increase annual dividend payments to approximately $1.60 per share. Crestone Peak Merger On June 6, 2021, Bonanza Creek, Raptor Condor Merger Sub 1, Inc., a Delaware corporation and a wholly owned subsidiary of Bonanza Creek (“Merger Sub 1”), Raptor Condor Merger Sub 2, LLC, a Delaware limited liability company and a wholly owned subsidiary of BCEI (“Merger Sub 2”), Crestone Peak Resources LP, a Delaware limited partnership (“CPR”), CPPIB Crestone Peak Resources America Inc., a Delaware corporation (“Crestone Peak”), Crestone Peak Resources Management LP, a Delaware limited partnership (“CPR Management LP”), and, Extraction Oil & Gas, Inc., a Delaware corporation, entered into an Agreement and Plan of Merger (the “Crestone Peak Merger Agreement”). The Crestone Peak Merger Agreement, among other things, provides for the Company's acquisition of Crestone Peak through (i) the merger of Merger Sub 1 with and into Crestone Peak (the “Merger Sub 1 Merger”), with Crestone Peak continuing its existence as the surviving corporation following the Merger Sub 1 Merger (the “Surviving Corporation”), and (ii) the subsequent merger of the Surviving Corporation with and into Merger Sub 2 (the “Merger Sub 2 Merger” and together with the Merger Sub 1 Merger, the “Crestone Peak Merger”), with Merger Sub 2 continuing as the surviving entity as a wholly owned subsidiary of Bonanza Creek. The closing of the Crestone Peak Merger is expressly conditioned on the closing of the previously announced XOG Merger pursuant to the XOG Merger Agreement. The Crestone Peak Merger is expected to close in conjunction with the XOG merger in November 2021, contingent upon a number of factors disclosed in the Crestone Peak Merger Agreement. Once closed, the Company intends to increase annual dividend payments to approximately $1.85 per share. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company's right-of-use assets and lease liabilities are recognized at their discounted present value on the balance sheet, which include leases related to the asset classes reflected as of the dates indicated in the table below (in thousands): September 30, 2021 December 31, 2020 Operating leases Field equipment (1) $ 20,716 $ 27,537 Corporate leases 6,519 1,481 Vehicles 811 468 Total right-of-use asset $ 28,046 $ 29,486 Field equipment (1) $ 20,716 $ 27,537 Corporate leases 6,830 1,900 Vehicles 811 468 Total lease liability $ 28,357 $ 29,905 Finance leases Right-of-use asset - field equipment (1) $ — $ 219 Lease liability - field equipment (1) $ — $ 117 __________________________ (1) Includes compressors, certain gas processing equipment, and other field equipment. The lease amounts disclosed are presented on a gross basis. A portion of these costs may have been or will be billed to other working interest owners, and the Company's net share of these costs, once paid, are included in various line items on the statements of operations or capitalized to oil and gas properties or other property and equipment, as applicable. The Company recognizes operating lease expense on a straight-line basis. Finance lease expense is recognized based on the effective interest method for the lease liability and straight-line amortization for the right-of-use asset, resulting in more cost being recognized in earlier lease periods. Short-term and variable lease payments are recognized as incurred. Short-term lease cost represents payments for leases with a lease term of one year or less, excluding leases with a term of one month or less. Short-term leases include drilling rigs and other equipment. Drilling rig contracts are structured based on an allotted number of wells to be drilled consecutively at a daily operating rate. Short-term drilling rig costs include a non-lease labor component, which is treated as a single lease component. The following table summarizes the components of the Company's gross lease costs incurred during the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating lease cost (1) $ 3,635 $ 3,462 $ 10,529 $ 10,560 Finance lease cost: Amortization of right-of-use assets — 6 3 13 Interest on lease liabilities — 1 1 3 Short-term lease cost 281 129 492 2,011 Variable lease cost (2) (9) (89) 56 (133) Sublease income (3) (91) (89) (274) (267) Total lease cost $ 3,816 $ 3,420 $ 10,807 $ 12,187 ____________________________ (1) Includes office rent expense of $0.5 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $1.3 million and $0.8 million for the nine months ended September 30, 2021 and 2020, respectively. (2) Variable lease cost represents differences between lease obligations and actual costs incurred for certain leases that do not have fixed payments related to both lease and non-lease components. Such incremental costs include lease payment increases or decreases driven by market price fluctuations and leased asset maintenance costs. (3) The Company has subleased a portion of one of its office spaces for the remainder of the office lease term. The Company does not have any leases with an implicit interest rate that can be readily determined. As a result, the Company used the incremental borrowing rate, based on the Credit Facility benchmark rate, adjusted for facility utilization and lease term, to calculate the respective discount rates. Please refer to Note 5 - Long-term Debt for additional information. The Company has certain lease agreements that provide for the option to extend, purchase, or terminate early, which was evaluated on each lease to arrive at the proper lease term. There were some leases for which the option to extend or purchase was factored into the resulting lease term. There were no leases where early termination was factored into the resulting lease term. The Company's weighted-average remaining lease terms and discount rates for operating leases as of September 30, 2021 are as follows: Operating Leases Weighted-average lease term (years) 3.2 Weighted-average discount rate 3.97% Supplemental cash flow information related to leases for the three and nine months ended September 30, 2021 and 2020 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,293 $ 3,187 $ 9,783 $ 9,599 Operating cash flows from finance leases — 1 1 3 Financing cash flows from finance leases — 31 21 71 Right-of-use assets obtained in exchange for new operating lease obligations $ 3,136 $ 918 $ 8,635 $ 8,306 Right-of-use assets obtained in exchange for new finance lease obligations — — — 219 As of September 30, 2021, future commitments by year for the Company's operating with a lease term of one year or more are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the balance sheet as follows (in thousands): Operating Leases Remainder of 2021 $ 3,557 2022 11,594 2023 7,509 2024 3,564 2025 1,290 Thereafter 2,765 Total lease payments 30,279 Less: imputed interest (1,922) Total lease liability $ 28,357 |
LEASES | LEASES The Company's right-of-use assets and lease liabilities are recognized at their discounted present value on the balance sheet, which include leases related to the asset classes reflected as of the dates indicated in the table below (in thousands): September 30, 2021 December 31, 2020 Operating leases Field equipment (1) $ 20,716 $ 27,537 Corporate leases 6,519 1,481 Vehicles 811 468 Total right-of-use asset $ 28,046 $ 29,486 Field equipment (1) $ 20,716 $ 27,537 Corporate leases 6,830 1,900 Vehicles 811 468 Total lease liability $ 28,357 $ 29,905 Finance leases Right-of-use asset - field equipment (1) $ — $ 219 Lease liability - field equipment (1) $ — $ 117 __________________________ (1) Includes compressors, certain gas processing equipment, and other field equipment. The lease amounts disclosed are presented on a gross basis. A portion of these costs may have been or will be billed to other working interest owners, and the Company's net share of these costs, once paid, are included in various line items on the statements of operations or capitalized to oil and gas properties or other property and equipment, as applicable. The Company recognizes operating lease expense on a straight-line basis. Finance lease expense is recognized based on the effective interest method for the lease liability and straight-line amortization for the right-of-use asset, resulting in more cost being recognized in earlier lease periods. Short-term and variable lease payments are recognized as incurred. Short-term lease cost represents payments for leases with a lease term of one year or less, excluding leases with a term of one month or less. Short-term leases include drilling rigs and other equipment. Drilling rig contracts are structured based on an allotted number of wells to be drilled consecutively at a daily operating rate. Short-term drilling rig costs include a non-lease labor component, which is treated as a single lease component. The following table summarizes the components of the Company's gross lease costs incurred during the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating lease cost (1) $ 3,635 $ 3,462 $ 10,529 $ 10,560 Finance lease cost: Amortization of right-of-use assets — 6 3 13 Interest on lease liabilities — 1 1 3 Short-term lease cost 281 129 492 2,011 Variable lease cost (2) (9) (89) 56 (133) Sublease income (3) (91) (89) (274) (267) Total lease cost $ 3,816 $ 3,420 $ 10,807 $ 12,187 ____________________________ (1) Includes office rent expense of $0.5 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $1.3 million and $0.8 million for the nine months ended September 30, 2021 and 2020, respectively. (2) Variable lease cost represents differences between lease obligations and actual costs incurred for certain leases that do not have fixed payments related to both lease and non-lease components. Such incremental costs include lease payment increases or decreases driven by market price fluctuations and leased asset maintenance costs. (3) The Company has subleased a portion of one of its office spaces for the remainder of the office lease term. The Company does not have any leases with an implicit interest rate that can be readily determined. As a result, the Company used the incremental borrowing rate, based on the Credit Facility benchmark rate, adjusted for facility utilization and lease term, to calculate the respective discount rates. Please refer to Note 5 - Long-term Debt for additional information. The Company has certain lease agreements that provide for the option to extend, purchase, or terminate early, which was evaluated on each lease to arrive at the proper lease term. There were some leases for which the option to extend or purchase was factored into the resulting lease term. There were no leases where early termination was factored into the resulting lease term. The Company's weighted-average remaining lease terms and discount rates for operating leases as of September 30, 2021 are as follows: Operating Leases Weighted-average lease term (years) 3.2 Weighted-average discount rate 3.97% Supplemental cash flow information related to leases for the three and nine months ended September 30, 2021 and 2020 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,293 $ 3,187 $ 9,783 $ 9,599 Operating cash flows from finance leases — 1 1 3 Financing cash flows from finance leases — 31 21 71 Right-of-use assets obtained in exchange for new operating lease obligations $ 3,136 $ 918 $ 8,635 $ 8,306 Right-of-use assets obtained in exchange for new finance lease obligations — — — 219 As of September 30, 2021, future commitments by year for the Company's operating with a lease term of one year or more are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the balance sheet as follows (in thousands): Operating Leases Remainder of 2021 $ 3,557 2022 11,594 2023 7,509 2024 3,564 2025 1,290 Thereafter 2,765 Total lease payments 30,279 Less: imputed interest (1,922) Total lease liability $ 28,357 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Senior Notes In conjunction with the HighPoint Merger, Bonanza Creek issued $100 million aggregate principal amount of 7.5% Senior Notes due 2026 pursuant to an indenture (the “Indenture”), dated April 1, 2021, by and among Bonanza Creek, U.S. Bank National Association, as trustee (the “Trustee”), and the subsidiary guarantors party thereto. The Bonanza Creek 7.5% Senior Notes are the senior unsecured obligations of Bonanza Creek and the subsidiaries of Bonanza Creek that are guarantors of the Bonanza Creek 7.5% Senior Notes. The Indenture contains restrictive covenants that, among other things, restrict the ability of Bonanza Creek and each of its restricted subsidiaries to: (i) incur additional indebtedness and issue preferred stock; (ii) pay dividends or make other distributions in respect of Bonanza Creek common stock; (iii) make other restricted payments and investments; (iv) create liens; (v) restrict distributions or other payments from Bonanza Creek’s restricted subsidiaries; (v) sell assets, including capital stock of restricted subsidiaries; (vi) merge or consolidate with other entities; and (vi) enter into transactions with affiliates. These restrictive covenants are subject to a number of important qualifications and limitations. In addition, certain of these restrictive covenants will be suspended before the Bonanza Creek 7.5% Senior Notes mature if at any time no default or event of default exists under the Indenture and the Bonanza Creek 7.5% Senior Notes receive an investment grade rating from at least two ratings agencies. The Indenture also contains customary events of default. The Bonanza Creek 7.5% Senior Notes will be redeemable at the Company’s option (an “Optional Redemption”), in whole or in part, prior to April 30, 2022 at a redemption price equal to 107.5% of the aggregate principal to be redeemed, plus unpaid accrued interest, if any, through the Optional Redemption date. On or after April 30, 2022, the Optional Redemption price will be equal to 100.00% of the aggregate principal amount of the Bonanza Creek 7.5% Senior Notes to be redeemed, plus unpaid accrued interest, if any, through Optional Redemption date. The Bonanza Creek 7.5% Senior Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior basis by each restricted subsidiary that guarantees a credit facility (as defined in the Indenture) of Bonanza Creek. Immediately after the Effective Time, HighPoint, HighPoint OpCo, and Fifth Pocket Production, LLC, a Colorado limited liability company (collectively, the “HighPoint guarantors”), Bonanza Creek, and the Trustee entered into a first supplemental indenture (the “First Supplemental Indenture”), dated April 1, 2021, to the Indenture, pursuant to which such HighPoint guarantors unconditionally guaranteed all of Bonanza Creek’s obligations under the Bonanza Creek 7.5% Senior Notes and the Indenture. Credit Facility In December 2018, the Company entered into a reserve-based revolving facility, as the borrower, with JPMorgan Chase Bank, N.A., as the administrative agent, and a syndicate of financial institutions, as lenders (the “Credit Facility”). The Credit Facility has a maturity date of December 7, 2023. The April 2021 redetermination as part of the Second Amendment (defined below) resulted in a borrowing base of $500.0 million, with elected commitments set at $400.0 million. The most recent redetermination was concluded in July 2021, resulting in a reaffirmation of the borrowing base at $500.0 million and aggregate elected commitments at $400.0 million. The next redetermination is set to occur in November 2021, unless otherwise redetermined through the closing of the XOG and Crestone Peak mergers. The Credit Facility is guaranteed by all wholly owned subsidiaries of the Company (each, a “Guarantor” and, together with the Company, the “Credit Parties”), and is secured by first priority security interests on substantially all assets of each Credit Party, subject to customary exceptions. The Credit Facility contains customary representations and affirmative covenants. The Credit Facility also contains customary negative covenants, which, among other things, and subject to certain exceptions, include restrictions on (i) liens, (ii) indebtedness, guarantees and other obligations, (iii) restrictions in agreements on liens and distributions, (iv) mergers or consolidations, (v) asset sales, (vi) restricted payments, (vii) investments, (viii) affiliate transactions, (ix) change of business, (x) foreign operations or subsidiaries, (xi) name changes, (xii) use of proceeds, letters of credit, (xiii) gas imbalances, (xiv) hedging transactions, (xv) additional subsidiaries, (xvi) changes in fiscal year or fiscal quarter, (xvii) operating leases, (xviii) prepayments of certain debt and other obligations, (xix) sales or discounts of receivables, (xx) dividend payment thresholds, and (xi) cash balances. The Credit Parties are subject to certain financial covenants under the Credit Facility, as tested on the last day of each fiscal quarter, including, without limitation, (i) a maximum ratio of the Company's consolidated indebtedness (subject to certain exclusions) to earnings before interest, income taxes, depreciation, depletion, and amortization, exploration expense, and other non-cash charges (“EBITDAX”) and (ii) a current ratio, as defined in the agreement, inclusive of the unused commitments then available to be borrowed, to not be less than 1.00 to 1.00. Under the terms of the Credit Facility, as amended in June 2020 (the “First Amendment”), borrowings bore interest at a per annum rate equal to, at the option of the Company, either (i) a LIBOR, subject to a 0% LIBOR floor plus a margin of 2.00% to 3.00%, based on the utilization of the Credit Facility (the “Eurodollar Rate”) or (ii) a fluctuating interest rate per annum equal to the greatest of (a) the rate of interest publicly announced by JPMorgan Chase Bank, N.A. as its prime rate, (b) the rate of interest published by the Federal Reserve Bank of New York as the federal funds effective rate, (c) the rate of interest published by the Federal Reserve Bank of New York as the overnight bank funding rate, or (d) a LIBOR offered rate for a one-month interest period, subject to a 0% LIBOR floor plus a margin of 1.00% to 2.00%, based on the utilization of the Credit Facility (the “Reference Rate”). Interest on borrowings that bear interest at the Eurodollar Rate shall be payable on the last day of the applicable interest period selected by the Company, which shall be one, two, three, or six months, and interest on borrowings that bear interest at the Reference Rate shall be payable quarterly in arrears. On April 1, 2021, in conjunction with the HighPoint Merger, the Company, together with certain of its subsidiaries, entered into the Second Amendment (the “Second Amendment”) to the Credit Facility (as amended, restated, supplemented or otherwise modified) to, among other things: (i) increase the aggregate maximum commitment amount from $750.0 million to $1.0 billion; (ii) increase the available borrowing base from $260.0 million to $500.0 million; (iii) increase the Eurodollar Rate margin to 3.00% to 4.00%; (iv) increase the Reference Rate margin to 2.00% to 3.00%; (v) increase (A) the LIBOR floor from 0% to .50% and (B) the alternate base rate floor from 0% to 1.50%; (vi) decrease for any fiscal quarter ending on or after April 1, 2021, the maximum permitted net leverage ratio from 3.50 to 3.0; and (viii) amend certain other covenants and provisions. The Company was in compliance with all covenants as of September 30, 2021, and through the filing date of this report. As of September 30, 2021 and December 31, 2020, the Company had $60.0 million and zero, respectively, outstanding on the Credit Facility. As of the date of this filing, the outstanding balance was zero. The Company's Credit Facility approximates fair value as the applicable interest rates are floating. In connection with the Second Amendment, the Company capitalized an incremental $3.9 million in deferred financing costs. Of the total post-amortization net capitalized deferred financing costs, (i) $2.2 million and $0.7 million, as of September 30, 2021 and December 31, 2020, respectively, are presented within other noncurrent assets and (ii) $1.8 million and $0.4 million, as of September 30, 2021 and December 31, 2020, respectively, are presented within prepaid expenses and other line items in the accompanying balance sheets. Interest Expense For the three months ended September 30, 2021 and 2020, the Company incurred interest expense of $3.7 million and $0.7 million, respectively, and capitalized $0.6 million and $0.3 million during the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, the Company incurred interest expense of $7.9 million and $3.3 million, respectively, and capitalized $1.2 million and $1.7 million during the nine months ended September 30, 2021 and 2020, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company is involved in various commercial and regulatory claims, litigation, and other legal proceedings that arise in the ordinary course of its business. The Company assesses these claims in an effort to determine the degree of probability and range of possible loss for potential accrual in its condensed consolidated financial statements. In accordance with authoritative accounting guidance, an accrual is recorded for a loss contingency when its occurrence is probable and damages can be reasonably estimated based on the most likely anticipated outcome or the minimum amount within a range of possible outcomes. Because legal proceedings are inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about uncertain future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. No claims have been made, nor is the Company aware of any material uninsured liability which the Company may have, as it relates to any environmental cleanup, restoration, or the violation of any rules or regulations. As of the filing date of this report, there were no probable, material pending, or overtly threatened legal actions against the Company of which it was aware. Upon closing of the HighPoint Merger, the Company assumed all obligations, whether asserted or unasserted, of HighPoint Resources Corporation. As of the filing date of this report, there were no probable, material pending, or overtly threatened legal actions against the Company that were associated with HighPoint of which it was aware, other than the following: On June 15, 2020, Sterling Energy Investments LLC (“Sterling”) filed a complaint against HighPoint OpCo, a subsidiary of HighPoint Resources Corporation, for breach of contract related to a Gas Purchase Agreement, effective November 1, 2017. Sterling alleges that HighPoint OpCo breached the contract by failing to use reasonable commercial efforts to deliver to Sterling at Sterling’s receipt points all quantities of gas not otherwise dedicated to other gas purchase agreements. HighPoint Resources OpCo filed a counterclaim against Sterling for breach of Sterling’s obligations under the Gas Purchase Agreement. The case was adjudicated in July 2021, and a decision was issued on October 25, 2021, finding in favor of HighPoint and awarding approximately $2.4 million in damages with respect to HighPoint’s counterclaim. Disclosure of certain environmental matters is required when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that the Company believes could exceed $0.3 million. HighPoint Resources Corporation received Notices of Alleged Violations (“NOAV”) from the Colorado Oil and Gas Conservation Commission (“COGCC”) alleging violations of various Colorado statutes and COGCC regulations governing oil and gas operations. The Company continues to engage in discussions regarding resolution of the alleged violations. There were approximately $0.9 million worth of NOAVs dismissed by the COGCC during the quarter ended September 30, 2021. As of September 30, 2021, the Company has recognized approximately $0.9 million associated with the NOAVs, as they are probable and reasonably estimable. Commitments Firm Transportation Agreements. As part of the HighPoint Merger, the Company became party to two firm transportation contracts. Both firm transportation contracts required the pipeline to provide a guaranteed outlet for production through July 2021. The Company did not utilize the firm capacity on the natural gas pipelines and incurred deficiency payments totaling $3.4 million and $7.7 million for the three and nine months ended September 30, 2021, respectively, which are included in unused commitments expense in the statements of operations. Additionally, the Company is party to one firm pipeline transportation contract to provide a guaranteed outlet for production on an oil pipeline system. The contract requires the Company to pay minimum volume transportation charges on 8,500 gross barrels per day through April 2022 and 12,500 barrels per day thereafter through April 2025, regardless of the amount of pipeline capacity utilized by the Company. The aggregate financial commitment fee over the remaining term was $49.6 million as of September 30, 2021. The Company expects to utilize most, if not all, of the firm capacity on the oil pipeline system. Minimum Volume Agreements. The Company is party to a purchase agreement to deliver fixed determinable quantities of crude oil to NGL Crude. The NGL Crude agreement includes defined volume commitments over a term ending in 2023. Under the terms of the NGL Crude agreement, the Company is required to make periodic deficiency payments for any shortfalls in delivering minimum gross volume commitments, which are set in six-month periods. The minimum gross volume commitment will increase approximately 3% each year for the remainder of the contract, to a maximum of approximately 16,000 gross barrels per day. The aggregate financial commitment fee over the remaining term was $41.7 million as of September 30, 2021. Upon notifying NGL Crude at least twelve months prior to the expiration date of the NGL Crude agreement, the Company may elect to extend the term of the NGL Crude agreement for up to three The Company is also party to minimum volume commitments to purchase fresh water from water suppliers as well as one minimum volume commitment for the delivery of natural gas volumes to a midstream entity for gathering and processing. These commitments require the Company to pay a fee associated with the minimum volumes regardless of the amount delivered. The aggregate financial commitment fee over the remaining term for these contracts was $3.0 million as of September 30, 2021. The minimum annual payments under the these agreements for the next five years as of September 30, 2021 are presented below (in thousands): Firm Transportation Minimum Volume (1) Remainder of 2021 $ 2,502 $ 6,209 2022 13,064 29,207 2023 14,600 9,314 2024 14,640 — 2025 4,800 — 2026 and thereafter — — Total $ 49,606 $ 44,730 ____________________________ (1) The above calculation is based on the minimum volume commitment schedule (as defined in the relevant agreements) and applicable differential fees. There have been no other material changes from the commitments disclosed in the notes to the Company's consolidated financial statements included in our 2020 Form 10-K. Refer to Note 4 - Leases |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Long Term Incentive Plans In 2017, the Company adopted a Long Term Incentive Plan (“2017 LTIP”), which allows for the issuance of restricted stock units (“RSUs”), performance stock units (“PSUs”), and options, and reserved 2,467,430 shares of common stock. Additionally, in June 2021, the Company adopted the 2021 Long Term Incentive Plan (“2021 LTIP”), which reserved an incremental 700,000 shares of common stock in addition to the 2017 LTIP. The 2017 LTIP and 2021 LTIP shall be collectively referred herein as the “LTIP”. See below for further discussion of awards granted under the LTIP. The Company recorded compensation expense related to the awards granted under the LTIP as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Restricted stock units $ 1,561 $ 1,350 $ 4,628 $ 3,935 Performance stock units 728 373 1,468 375 Stock options — — — 126 Total stock-based compensation $ 2,289 $ 1,723 $ 6,096 $ 4,436 As of September 30, 2021, unrecognized compensation expense will be amortized through the relevant periods as follows (in thousands): Unrecognized Compensation Expense Final Year of Recognition Restricted stock units $ 8,886 2024 Performance stock units 4,911 2023 $ 13,797 Restricted Stock Units The LTIP allows for the issuance of RSUs to members of the Board of Directors (the “Board”) and employees of the Company at the discretion of the Board. Each RSU represents one share of the Company's common stock to be released from restriction upon completion of the vesting period. The awards typically vest in one-third increments over three years. The RSUs are valued at the grant date share price and are recognized as general and administrative expense over the vesting period of the award. During the nine months ended September 30, 2021, the Company granted 178,567 RSUs with a fair value of $6.1 million. A summary of the status and activity of non-vested restricted stock units for the nine months ended September 30, 2021 is presented below: Restricted Stock Units Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 550,056 $ 20.30 Granted 178,567 34.35 Vested (267,635) 21.12 Forfeited (23,586) 17.25 Non-vested, end of quarter 437,402 $ 25.69 Cash flows resulting from excess tax benefits are to be classified as part of cash flows from operating activities. Excess tax benefits are realized tax benefits from tax deductions for vested restricted stock in excess of the deferred tax asset attributable to stock compensation costs for such restricted stock. The Company recorded no excess tax benefits for the periods presented. Performance Stock Units The LTIP allows for the issuance of PSUs to employees at the sole discretion of the Board. The number of shares of the Company's common stock that may be issued to settle PSUs ranges from zero to two times the number of PSUs awarded. The PSUs vest in their entirety at the end of the three-year performance period. The first criterion is based on a comparison of the Company's absolute and relative total shareholder return (“TSR”) for the performance period compared with the TSRs of a group of peer companies for the same performance period. The TSR for the Company and each of the peer companies is determined by dividing (A) (i) the volume-weighted average share price for the last 30 trading days of the performance period minus (ii) the volume-weighted average share price for the 30 trading days preceding the beginning of the performance period, by (B) the volume-weighted average share price for the 30 trading days preceding the beginning of the performance period. The second criterion, when applicable, is based on the Company's annual return on average capital employed (“ROCE”) for each year during the three-year performance period. The total number of PSUs granted was split as follows for the relevant grant years: 2021 2020 2019 TSR 100 % 67 % 50 % ROCE — % 33 % 50 % Compensation expense associated with PSUs is recognized as general and administrative expense over the performance period. Because these awards depend on a combination of performance-based and market-based settlement criteria, compensation expense may be adjusted in future periods as the number of units expected to vest increases or decreases based on the Company's expected ROCE performance. As of September 30, 2021, the Company does not expect any of the ROCE portion of the PSUs granted in 2019 to vest and has accordingly adjusted the related compensation expense. The fair value of the PSUs was measured at the grant date. The portion of the PSUs tied to the TSR required a stochastic process method using a Brownian Motion simulation. A stochastic process is a mathematically defined equation that can create a series of outcomes over time. These outcomes are not deterministic in nature, which means that by iterating the equations multiple times, different results will be obtained for those iterations. In the case of the Company's TSRs, the Company could not predict with certainty the path its stock price or the stock prices of its peers would take over the performance period. By using a stochastic simulation, the Company created multiple prospective stock pathways, statistically analyzed these simulations, and ultimately made inferences regarding the most likely path the stock price would take. As such, because future stock prices are stochastic, or probabilistic with some direction in nature, the stochastic method, specifically the Brownian Motion Model, was deemed an appropriate method by which to determine the fair value of the portion of the PSUs tied to the TSR. Significant assumptions used in this simulation include the Company's expected volatility, risk-free interest rate based on U.S. Treasury yield curve rates with maturities consistent with the performance period, as well as the volatilities for each of the Company's peers. During the nine months ended September 30, 2021, the Company granted 64,258 PSUs with a fair value of $4.4 million. The PSUs granted in 2018 expired as of December 31, 2020, with zero distribution of shares to the recipients, as neither the TSR nor the ROCE performance criteria were met. A summary of the status and activity of performance stock units for the nine months ended September 30, 2021 is presented below: Performance Stock Units (1) Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 185,588 $ 22.63 Granted 64,258 68.99 Vested — — Forfeited — — Non-vested, end of quarter 249,846 $ 34.56 ___________________________ (1) The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of the Company's common stock issued may vary depending on the performance multiplier, which ranges from zero to two, depending on the level of satisfaction of the performance condition. Stock Options The LTIP allows for the issuance of stock options to the Company's employees at the sole discretion of the Board. Options expire ten years from the grant date unless otherwise determined by the Board. Compensation expense on the stock options is recognized as general and administrative expense over the vesting period of the award. There were no stock options granted during the nine months ended September 30, 2021. A summary of the status and activity of stock options for the nine months ended September 30, 2021 is presented below: Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, beginning of year 72,368 $ 34.36 Granted — — Exercised (21,878) 34.36 Forfeited (510) 34.36 Outstanding, end of quarter 49,980 $ 34.36 5.6 $ 677 Number of options outstanding and exercisable 49,980 $ 34.36 5.6 $ 677 The aggregate intrinsic value of options exercised during the nine months ended September 30, 2021 was $0.2 million. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company follows fair value measurement authoritative guidance, which defines fair value, establishes a framework for using fair value to measure assets and liabilities, and expands disclosures about fair value measurements. The authoritative accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The statement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities Level 2: Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable Level 3: Significant inputs to the valuation model are unobservable Financial and non-financial assets and liabilities are to be classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Derivatives Fair value of all derivative instruments are estimated with industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value of money, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. All valuations were compared against counterparty statements to verify the reasonableness of the estimate. The Company’s commodity swaps, collars, and puts were validated by observable transactions for the same or similar commodity options using the NYMEX futures index and were designated as Level 2 within the valuation hierarchy. The following tables present the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis and their classification within the fair value hierarchy (in thousands): As of September 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ — $ 101,828 $ — As of December 31, 2020 Level 1 Level 2 Level 3 Derivative assets $ — $ 7,482 $ — Derivative liabilities $ — $ 7,732 $ — Senior Notes The Bonanza Creek 7.5% Senior Notes of $100.0 million, issued on April 1, 2021, are recorded at carrying value. There were no debt issuance costs, discounts or premiums associated with the Bonanza Creek 7.5% Senior Notes. The estimated fair value of the Bonanza Creek 7.5% Senior Notes of $100.8 million as of September 30, 2021 was based on quoted market prices, and as such, is designated as Level 1 within the valuation hierarchy. Proved Oil and Gas Properties Proved oil and gas property costs are evaluated for impairment on a nonrecurring basis and reduced to fair value when there is an indication that the carrying costs exceed the sum of the undiscounted cash flows of the underlying oil and gas reserves. Depending on the availability of data, the Company uses Level 3 inputs and either the income valuation technique, which converts future amounts to a single present value amount to measure the fair value of proved properties through an application of risk-adjusted discount rates and price forecasts selected by the Company’s management, or the market valuation approach. The calculation of the risk-adjusted discount rate is a significant management estimate based on the best information available. Management believes that the risk-adjusted discount rate is representative of current market conditions and reflects the following factors: estimates of future cash payments, expectations of possible variations in the amount and/or timing of cash flows, the risk premium, and nonperformance risk. The price forecast is based on the Company's internal budgeting model derived from the NYMEX strip pricing, adjusted for management estimates and basis differentials. Future operating costs are also adjusted as deemed appropriate for these estimates. Proved properties classified as held for sale are valued using a market approach, based on an estimated selling price, as evidenced by the most current bid prices received from third parties. If a relevant estimated selling price is not available, the Company utilizes the income valuation technique discussed above. There were no proved oil and gas property impairments during the three and nine months ended September 30, 2021 and 2020. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The Company recognizes an estimated liability for future costs to abandon its oil and gas properties. The fair value of the asset retirement obligation is recorded as a liability when incurred, which is typically at the time the asset is acquired or placed in service. There is a corresponding increase to the carrying value of the asset, which is included in the proved properties line item in the accompanying balance sheets. The Company depletes the amount added to proved properties and recognizes expense in connection with accretion of the discounted liability over the remaining estimated economic lives of the properties. The Company’s estimated asset retirement obligation liability is based on historical experience in abandoning wells, estimated economic lives, estimated costs to abandon the wells, and regulatory requirements. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred. A roll-forward of the Company's asset retirement obligation is as follows (in thousands): Amount Beginning balance as of December 31, 2020 $ 28,699 Liabilities settled (3,885) Additions 24,658 Accretion expense 1,290 Ending balance as of September 30, 2021 $ 50,762 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company enters into commodity derivative contracts to mitigate a portion of its exposure to potentially adverse market changes in commodity prices and the associated impact on cash flows. All contracts are entered into for other-than-trading purposes. The Company’s derivatives include swaps, collars, and puts for oil and natural gas, and none of the derivative instruments qualify as having hedging relationships. In a typical commodity fixed-price swap agreement, if the agreed upon published third-party index price is lower than the swap strike price, the Company receives the difference between the index price and the agreed upon swap strike price. If the index price is higher than the swap strike price, the Company pays the difference. A swaption allows the counterparty, on a specific date, to extend an existing fixed-price swap for a certain period of time or to increase the notional volumes of an existing fixed-price swap. A basis swap arrangement guarantees a price differential from a specified delivery point to an agreed upon reference point. The Company receives the difference between the price differential and the stated terms, if the price differential is greater than the stated terms. The Company pays the difference between the price differential and the stated terms, if the stated terms are greater than the price differential. Certain NYMEX calendar month average (“CMA”) settlement contracts contain a “CMA Roll Adjustment,” the calculation of which includes futures prices for contracts deliverable in, at the time, two forward months. The physical trade month average is compared to the prompt month futures contracts and weighted to reflect the amount of time during the delivery month that the forward months traded as the prompt month. The weighted adjustment values are added to the basic calendar month average to arrive at the Roll Adjusted settlement price for the month. “Oil roll swaps” fix the value of the roll adjustment. If the futures curve becomes more backwardated after entering the oil roll swap, we will pay the difference between the CMA Roll Adjustment and the oil roll swap price. If the futures curve becomes more in contango, we will receive the difference between the CMA Roll Adjustment and the oil roll swap price. A cashless collar arrangement establishes a floor and ceiling price on future oil and gas production. When the settlement price is above the ceiling price, the Company pays the difference between the settlement price and the ceiling price. When the settlement price is below the floor price, the Company receives the difference between the settlement price and floor price. In the event that the settlement price is between the ceiling and the floor, no payment or receipt occurs. A put gives the owner the right to sell the underlying commodity at a set price over the term of the contract. If the index settlement price is higher than the put fixed price, the put will expire worthless. If the settlement price is lower than the put fixed price, the Company will exercise the put and receive the difference between the settlement price and the put fixed price. As of September 30, 2021 and the filing date of this report, the Company had entered into the following commodity derivative contracts: Crude Oil Natural Gas Natural Gas Natural Gas Bbls/day Weighted Avg. Price per Bbl MMBtu/day Weighted Avg. Price per MMBtu MMBtu/day Weighted Avg. Basis Differential to CIG Price per MMBtu MMBtu/day Weighted Avg. Price per MMBtu 4Q21 Cashless Collar 10,500 $48.81/$67.63 20,000 $2.25/$2.52 — — 20,000 $2.15/$2.75 Swap 8,000 $54.49 — — 20,000 $0.43 13,370 $2.13 Oil Roll Swap (1) 4,500 $0.16 — — — — — — 1Q22 Cashless Collar 6,500 $35.10/$59.44 — — — — 20,000 $2.15/$2.75 Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 4,000 $55.06 — — — — — — 2Q22 Cashless Collar 5,000 $36.64/$63.52 — — — — 20,000 $2.15/$2.75 Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 4,000 $55.06 — — — — — — 3Q22 Cashless Collar 4,200 $40.64/$67.74 20,000 $2.80/$4.20 — — — — Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 2,000 $55.13 — — — — — — 4Q22 Cashless Collar 3,700 $41.40/$69.50 20,000 $2.80/$4.20 — — — — Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 2,000 $55.13 — — — — — — _______________________________ (1) The weighted average differential represents the amount of reduction to NYMEX WTI prices for the notional volumes covered by the swap contracts. Derivative Assets and Liabilities Fair Value The Company’s commodity derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. The following table contains a summary of all the Company’s derivative positions reported on the accompanying balance sheets as of the dates indicated in the table below (in thousands): September 30, 2021 December 31, 2020 Derivative Assets: Commodity contracts – current $ — $ 7,482 Commodity contracts – noncurrent — — Derivative Liabilities: Commodity contracts – current (92,784) (6,402) Commodity contracts – noncurrent (9,044) (1,330) Total derivative assets (liabilities), net $ (101,828) $ (250) The following table summarizes the components of the derivative gain (loss) presented on the accompanying statements of operations for the periods below (in thousands): Three Months Ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Derivative cash settlement gain (loss): Oil contracts $ (19,838) $ 9,165 $ (41,454) $ 42,088 Gas contracts (6,708) (538) (9,082) 406 Total derivative cash settlement gain (loss) (1) (26,546) 8,627 (50,536) 42,494 Change in fair value gain (loss) (9,678) (19,297) (83,077) 22,109 Total derivative gain (loss) (1) $ (36,224) $ (10,670) $ (133,613) $ 64,603 _______________________________ |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company issues RSUs, which represent the right to receive, upon vesting, one share of the Company's common stock. The number of potentially dilutive shares related to RSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the vesting period. The Company issues PSUs, which represent the right to receive, upon settlement of the PSUs, a number of shares of the Company's common stock that ranges from zero to two times the number of PSUs granted on the award date. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, that would be issuable at the end of the respective reporting period, assuming that date was the end of the performance period applicable to such PSUs. The Company issued stock options and warrants, which both represent the right to purchase the Company's common stock at a specified price. The number of potentially dilutive shares related to the stock options and warrants is based on the number of shares, if any, that would be exercisable at the end of the respective reporting period, assuming that date was the end of such stock options' or warrants' term. Please refer to Note 7 - Stock-Based Compensation for additional discussion. The Company uses the treasury stock method to calculate earnings per share as shown in the following table (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income $ 40,659 $ 3,251 $ 15,221 $ 42,900 Basic net income per common share $ 1.32 $ 0.16 $ 0.55 $ 2.07 Diluted net income per common share $ 1.31 $ 0.16 $ 0.55 $ 2.06 Weighted-average shares outstanding - basic 30,849 20,832 27,485 20,753 Add: dilutive effect of contingent stock awards 276 71 343 73 Add: dilutive effect of exercisable stock options 13 — 11 — Weighted-average shares outstanding - diluted 31,138 20,903 27,839 20,826 There were 115,448 and 549,967 shares that were anti-dilutive for the three months ended September 30, 2021 and 2020, respectively, and 81,142 and 427,857 that were anti-dilutive for the nine months ended September 30, 2021 and 2020. The exercise price of the Company's stock warrants were in excess of the Company's stock price during the three and nine months ended September 30, 2020; therefore, they were excluded from the earnings per share calculation. The Company's warrants expired on April 30, 2020. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Deferred tax assets and liabilities are measured by applying the provisions of enacted tax laws to determine the amount of taxes payable or refundable currently or in future years related to cumulative temporary differences between the tax basis of assets and liabilities and amounts reported in the Company's balance sheets. The tax effect of the net change in the cumulative temporary differences during each period in the deferred tax assets and liabilities determines the periodic provision for deferred taxes. The Company assesses the recoverability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will be realized. In making such determination, the Company considers all available (both positive and negative) evidence, including future reversals of temporary differences, tax-planning strategies, projected future taxable income, and results of operations. The Company has cumulative book income for the prior three years and is forecasting future book income, which resulted in the full valuation allowance being removed as of December 31, 2020. Federal income tax expense differs from the amount that would be provided by applying the statutory United States federal income tax rate of 21% to income before income taxes primarily due to the effect of state income taxes, changes in valuation allowances, and other permanent differences. During the three and nine months ended September 30, 2021, the Company recorded income tax expense of $15.6 million and $5.2 million, respectively, compared to $4.7 million of income tax expense for both the three and nine months ended September 30, 2020. As of September 30, 2021 and December 31, 2020, the Company had no unrecognized tax benefits. The Company's management does not believe that there are any new items or changes in facts or judgments that would impact the Company's tax position taken thus far in 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS 5.0% Senior Notes due 2026 On October 13, 2021, Bonanza Creek completed its previously announced offering (the “Offering”) of $400.0 million aggregate principal amount of 5.0% Senior Notes due 2026 (the “Bonanza Creek 5.0% Senior Notes”). Following the closing of the Offering, the Company used the net proceeds from the Offering and cash on hand to repay all borrowings under the Credit Facility and expects to use the remainder to repay all borrowings outstanding under the Crestone Peak credit facility and for general corporate purposes. The Bonanza Creek 5.0% Senior Notes are subject to a special mandatory redemption (a “Special Mandatory Redemption”) in the event that the consummation of the XOG Merger and the Crestone Peak Merger, and, collectively, the “Mergers” does not occur on or before December 31, 2021 or if Bonanza Creek notifies the trustee that it will not pursue the consummation of the Mergers. In the event of a Special Mandatory Redemption, Bonanza Creek is required to redeem the Bonanza Creek 5.0% Senior Notes then outstanding at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the Special Mandatory Redemption date. At any time prior to October 15, 2023, Bonanza Creek may redeem the Bonanza Creek 5.0% Senior Notes, in whole or in part, at a redemption price equal to the sum of (i) the principal amount thereof, plus (ii) the “make-whole” premium at the redemption date, plus (iii) accrued and unpaid interest, if any, to, but excluding, the date of redemption (subject to the right of the noteholders on the relevant record date to receive interest on the relevant interest payment date). On or after October 15, 2023, Bonanza Creek may redeem all or part of the Bonanza Creek 5.0% Senior Notes at redemption prices (expressed as percentages of the principal amount redeemed) equal to (i) 102.5% for the twelve-month period beginning on October 15, 2023; (ii) 101.25% for the twelve-month period beginning on October 15, 2024; and (iii) 100.0% for the twelve-month period beginning October 15, 2025 and at any time thereafter, plus accrued and unpaid interest, if any, to, but excluding, the redemption date (subject to the right of the noteholders on the relevant record date to receive interest on the relevant interest payment date). Bonanza Creek may redeem up to 35% of the aggregate principal amount of the Bonanza Creek 5.0% Senior Notes at any time prior to October 15, 2023 with an amount not to exceed the net cash proceeds from certain equity offerings at a redemption price equal to 105.0% of the principal amount of the Bonanza Creek 5.0% Senior Notes redeemed, plus accrued and unpaid interest, if any, thereon to, but not including, the redemption date, provided, however, that (i) at least 65.0% of the aggregate principal amount of the Bonanza Creek 5.0% Senior Notes originally issued on the issue date (but excluding Bonanza Creek 5.0% Senior Notes held by BCEI and its subsidiaries) remains outstanding immediately after the occurrence of such redemption (unless all such Bonanza Creek 5.0% Senior Notes are redeemed substantially concurrently) and (ii) the redemption occurs within 180 days after the date of the closing of such equity offering. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments as necessary for a fair presentation of our financial position and results of operations. The financial information as of December 31, 2020, has been derived from the audited financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”), but does not include all disclosures, including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in our 2020 Form 10-K. The Company follows the same accounting principles for preparing quarterly and annual reports. Certain prior period amounts have been reclassified to conform to the current period presentation. In connection with the preparation of the condensed consolidated financial statements, the Company evaluated subsequent events after the balance sheet date of September 30, 2021, through the filing date of this report. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated balance sheets (“balance sheets”) include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of oil and gas reserves, assets and liabilities, and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three and nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Further these estimates and other factors, including those outside of the Company's control, such as the impact of commodity prices, may impact the Company's business, financial condition, results of operations and cash flows. |
Revenue Recognition | Revenue Recognition Sales of oil, natural gas, and NGLs are recognized when performance obligations are satisfied at the point control of the product is transferred to the customer. The Company's contracts' pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of the oil or natural gas, and prevailing supply and demand conditions. As a result, the price of the oil, natural gas, and NGLs fluctuates to remain competitive with other available oil, natural gas, and NGLs supplies. As further described in Note 6 - Commitments and Contingencies , one contract with NGL Crude Logistics, LLP (“NGL Crude”, known as the “NGL Crude agreement”) has an additional aspect of variable consideration related to the minimum volume commitments (“MVCs”) as specified in the agreement. On an on-going basis, the Company performs an analysis of expected risk adjusted production applicable to the NGL Crude agreement based on approved production plans to determine if liquidated damages to NGL Crude are probable. As of September 30, 2021, the Company believes that the volumes delivered to NGL Crude will be in excess of the MVCs required based on our approved future production plan. As a result of this analysis, to date, no variable consideration related to potential liquidated damages has been considered in the transaction price for the NGL Crude agreement. Under the oil sales contracts, the Company sells oil production at the wellhead, or other contractually agreed-upon delivery points, and collects an agreed-upon index price, net of pricing differentials. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the wellhead, or other contractually agreed-upon delivery point, at the net contracted price received. Under the natural gas processing contracts, the Company delivers natural gas to an agreed-upon delivery point. The delivery points are specified within each contract, and the transfer of control varies between the inlet and outlet of the midstream processing facility. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of NGLs and residue gas. For the contracts where the Company maintains control through the outlet of the midstream processing facility, the Company recognizes revenue on a gross basis, with gathering, transportation, and processing fees presented as an expense in the Company's accompanying condensed consolidated statements of operations and comprehensive income (loss) (“statements of operations”). Alternatively, for those contracts where the Company relinquishes control at the inlet of the midstream processing facility, the Company recognizes natural gas and NGLs revenues based on the contracted amount of the proceeds received from the midstream processing entity and, as a result, the Company recognizes revenue on a net basis. Under the product sales contracts, the Company invoices customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company's product sales contracts do not give rise to contract assets or liabilities under this guidance. At September 30, 2021 and December 31, 2020, the Company's receivables from contracts with customers were $86.4 million and $32.7 million, respectively. Payment is generally received within 30 to 60 days after the date of production. |
Accounting Pronouncements Recently Adopted and Issued | Accounting Pronouncements Recently Adopted and Issued In March 2020, the FASB issued Update No. 2020-04, Reference Rate Reform (Topic 848), which provides temporary optional guidance to companies impacted by the transition away from the LIBOR. The amendment provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. Further, in January 2021, the FASB issued Update No. 2021-01, Reference Rate Reform (Topic 848), which clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. These amendments are effective upon issuance and expire on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition on the Company's condensed consolidated financial statements. There are no other accounting standards applicable to the Company that would have a material effect on the Company's condensed consolidated financial statements and disclosures that have been issued but not yet adopted by the Company as of September 30, 2021, and through the filing date of this report. |
Fair Value Measurements | The Company follows fair value measurement authoritative guidance, which defines fair value, establishes a framework for using fair value to measure assets and liabilities, and expands disclosures about fair value measurements. The authoritative accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The statement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities Level 2: Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable Level 3: Significant inputs to the valuation model are unobservable |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | Revenue attributable to each identified revenue stream is disaggregated below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating Revenues: Crude oil sales $ 131,360 $ 47,251 $ 297,515 $ 127,331 Natural gas sales 24,764 5,742 53,064 16,472 Natural gas liquids sales 33,839 5,865 69,578 11,652 Oil and gas sales $ 189,963 $ 58,858 $ 420,157 $ 155,455 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets, which sums to the total of such amounts shown in the accompanying condensed consolidated statements of cash flows (“statements of cash flows”) (in thousands): As of September 30, 2021 2020 Cash and cash equivalents $ 40,410 $ 3,777 Restricted cash (1) 102 95 Total cash, cash equivalents, and restricted cash $ 40,512 $ 3,872 __________________________ (1) Included in other noncurrent assets and consists of funds for road maintenance and repairs. |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets, which sums to the total of such amounts shown in the accompanying condensed consolidated statements of cash flows (“statements of cash flows”) (in thousands): As of September 30, 2021 2020 Cash and cash equivalents $ 40,410 $ 3,777 Restricted cash (1) 102 95 Total cash, cash equivalents, and restricted cash $ 40,512 $ 3,872 __________________________ (1) Included in other noncurrent assets and consists of funds for road maintenance and repairs. |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses contain the following (in thousands): As of September 30, 2021 As of December 31, 2020 Accrued drilling and completion costs $ 22,628 $ 453 Accounts payable trade 11,740 1,931 Accrued general and administrative expense 6,667 4,942 Accrued merger transaction costs 991 2,587 Accrued lease operating expense 2,893 1,793 Accrued interest expense 4,359 322 Accrued oil and gas hedging 6,767 — Accrued production and ad valorem taxes and other 39,006 25,397 Total accounts payable and accrued expenses $ 95,051 $ 37,425 |
ACQUISITIONS & DIVESTITURES (Ta
ACQUISITIONS & DIVESTITURES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Merger Consideration and Preliminary Purchase Price Allocations | The following tables present the HighPoint Merger consideration and purchase price allocation of the assets acquired and the liabilities assumed in the HighPoint Merger: Merger Consideration (in thousands except per share amount) Shares of Bonanza Creek Common Stock issued to existing holders of HighPoint Common Stock (1) 488 Shares of Bonanza Creek Common Stock issued to existing holders of HighPoint Senior Notes 9,314 Total additional shares of Bonanza Creek Common Stock issued as merger consideration 9,802 Closing price per share of Bonanza Creek Common Stock (2) $ 38.25 Merger consideration paid in shares of Bonanza Creek Common Stock $ 374,933 Aggregate principal amount of Bonanza Creek 7.5% Senior Notes 100,000 Total merger consideration $ 474,933 _________________________ (1) Based on the number of shares of HighPoint Common Stock issued and outstanding as of April 1, 2021 and the conversion ratio of 0.11464 per share of Bonanza Creek Common Stock. (2) Based on the closing stock price of Bonanza Creek Common Stock on April 1, 2021. Purchase Price Allocation (in thousands) Assets Acquired Cash and cash equivalents $ 49,827 Accounts receivable - oil and gas sales 26,343 Accounts receivable - joint interest and other 9,161 Prepaid expenses and other 3,608 Inventory of oilfield equipment 4,688 Proved properties 539,820 Other property and equipment, net of accumulated depreciation 2,769 Right-of-use assets 4,010 Deferred income tax assets 110,513 Other noncurrent assets 797 Total assets acquired $ 751,536 Liabilities Assumed Accounts payable and accrued expenses $ 51,088 Oil and gas revenue distribution payable 20,786 Lease liability 744 Derivative liability 13,481 Current portion of long-term debt 154,000 Lease liability (long-term) 3,266 Ad valorem taxes 3,746 Derivative liability (long-term) 5,019 Asset retirement obligations for oil and gas properties 24,473 Total liabilities assumed 276,603 Net assets acquired $ 474,933 |
Schedule of Pro Forma Financial Information | The pro forma financial information is not necessarily indicative of the results of operations that would have been achieved if the acquisition had been effective as of these dates, or of future results. Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 (in thousands, except per share data) Total revenue $ 126,163 $ 492,176 $ 345,626 Net income (loss) 16,030 (26,058) (1,007,643) Net income (loss) per common share: Basic $ 0.52 $ (0.84) $ (32.98) Diluted $ 0.52 $ (0.84) $ (32.98) |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Balance Sheet Activity, Asset Classes | The Company's right-of-use assets and lease liabilities are recognized at their discounted present value on the balance sheet, which include leases related to the asset classes reflected as of the dates indicated in the table below (in thousands): September 30, 2021 December 31, 2020 Operating leases Field equipment (1) $ 20,716 $ 27,537 Corporate leases 6,519 1,481 Vehicles 811 468 Total right-of-use asset $ 28,046 $ 29,486 Field equipment (1) $ 20,716 $ 27,537 Corporate leases 6,830 1,900 Vehicles 811 468 Total lease liability $ 28,357 $ 29,905 Finance leases Right-of-use asset - field equipment (1) $ — $ 219 Lease liability - field equipment (1) $ — $ 117 __________________________ (1) Includes compressors, certain gas processing equipment, and other field equipment. |
Summary of Operating Lease Costs and Summary of Supplemental Cash Flow Information | The following table summarizes the components of the Company's gross lease costs incurred during the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating lease cost (1) $ 3,635 $ 3,462 $ 10,529 $ 10,560 Finance lease cost: Amortization of right-of-use assets — 6 3 13 Interest on lease liabilities — 1 1 3 Short-term lease cost 281 129 492 2,011 Variable lease cost (2) (9) (89) 56 (133) Sublease income (3) (91) (89) (274) (267) Total lease cost $ 3,816 $ 3,420 $ 10,807 $ 12,187 ____________________________ (1) Includes office rent expense of $0.5 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $1.3 million and $0.8 million for the nine months ended September 30, 2021 and 2020, respectively. (2) Variable lease cost represents differences between lease obligations and actual costs incurred for certain leases that do not have fixed payments related to both lease and non-lease components. Such incremental costs include lease payment increases or decreases driven by market price fluctuations and leased asset maintenance costs. (3) The Company has subleased a portion of one of its office spaces for the remainder of the office lease term. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,293 $ 3,187 $ 9,783 $ 9,599 Operating cash flows from finance leases — 1 1 3 Financing cash flows from finance leases — 31 21 71 Right-of-use assets obtained in exchange for new operating lease obligations $ 3,136 $ 918 $ 8,635 $ 8,306 Right-of-use assets obtained in exchange for new finance lease obligations — — — 219 |
Schedule of Weighted-Average Information | The Company's weighted-average remaining lease terms and discount rates for operating leases as of September 30, 2021 are as follows: Operating Leases Weighted-average lease term (years) 3.2 Weighted-average discount rate 3.97% |
Schedule of Future Minimum Commitments for Operating Leases | As of September 30, 2021, future commitments by year for the Company's operating with a lease term of one year or more are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the balance sheet as follows (in thousands): Operating Leases Remainder of 2021 $ 3,557 2022 11,594 2023 7,509 2024 3,564 2025 1,290 Thereafter 2,765 Total lease payments 30,279 Less: imputed interest (1,922) Total lease liability $ 28,357 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Annual Minimum Commitment Payments | The minimum annual payments under the these agreements for the next five years as of September 30, 2021 are presented below (in thousands): Firm Transportation Minimum Volume (1) Remainder of 2021 $ 2,502 $ 6,209 2022 13,064 29,207 2023 14,600 9,314 2024 14,640 — 2025 4,800 — 2026 and thereafter — — Total $ 49,606 $ 44,730 ____________________________ (1) The above calculation is based on the minimum volume commitment schedule (as defined in the relevant agreements) and applicable differential fees. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Share-Based Compensation Expense | The Company recorded compensation expense related to the awards granted under the LTIP as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Restricted stock units $ 1,561 $ 1,350 $ 4,628 $ 3,935 Performance stock units 728 373 1,468 375 Stock options — — — 126 Total stock-based compensation $ 2,289 $ 1,723 $ 6,096 $ 4,436 |
Summary of Unrecognized Compensation Expense and Vesting Criterion | As of September 30, 2021, unrecognized compensation expense will be amortized through the relevant periods as follows (in thousands): Unrecognized Compensation Expense Final Year of Recognition Restricted stock units $ 8,886 2024 Performance stock units 4,911 2023 $ 13,797 2021 2020 2019 TSR 100 % 67 % 50 % ROCE — % 33 % 50 % |
Summary of the Status and Activity of Non-vested Restricted Stock | A summary of the status and activity of non-vested restricted stock units for the nine months ended September 30, 2021 is presented below: Restricted Stock Units Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 550,056 $ 20.30 Granted 178,567 34.35 Vested (267,635) 21.12 Forfeited (23,586) 17.25 Non-vested, end of quarter 437,402 $ 25.69 |
Summary of the Status and Activity of Non-Vested Performance Stock | A summary of the status and activity of performance stock units for the nine months ended September 30, 2021 is presented below: Performance Stock Units (1) Weighted-Average Grant-Date Fair Value Non-vested, beginning of year 185,588 $ 22.63 Granted 64,258 68.99 Vested — — Forfeited — — Non-vested, end of quarter 249,846 $ 34.56 ___________________________ (1) The number of awards assumes that the associated performance condition is met at the target amount. The final number of shares of the Company's common stock issued may vary depending on the performance multiplier, which ranges from zero to two, depending on the level of satisfaction of the performance condition. |
Summary of the Status and Activity of Non-Vested Units | A summary of the status and activity of stock options for the nine months ended September 30, 2021 is presented below: Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, beginning of year 72,368 $ 34.36 Granted — — Exercised (21,878) 34.36 Forfeited (510) 34.36 Outstanding, end of quarter 49,980 $ 34.36 5.6 $ 677 Number of options outstanding and exercisable 49,980 $ 34.36 5.6 $ 677 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial and Non-Financial Assets and Liabilities at Fair Value on Recurring Basis | The following tables present the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis and their classification within the fair value hierarchy (in thousands): As of September 30, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ — $ 101,828 $ — As of December 31, 2020 Level 1 Level 2 Level 3 Derivative assets $ — $ 7,482 $ — Derivative liabilities $ — $ 7,732 $ — |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Asset Retirement Obligations | A roll-forward of the Company's asset retirement obligation is as follows (in thousands): Amount Beginning balance as of December 31, 2020 $ 28,699 Liabilities settled (3,885) Additions 24,658 Accretion expense 1,290 Ending balance as of September 30, 2021 $ 50,762 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Commodity Derivative Contracts | As of September 30, 2021 and the filing date of this report, the Company had entered into the following commodity derivative contracts: Crude Oil Natural Gas Natural Gas Natural Gas Bbls/day Weighted Avg. Price per Bbl MMBtu/day Weighted Avg. Price per MMBtu MMBtu/day Weighted Avg. Basis Differential to CIG Price per MMBtu MMBtu/day Weighted Avg. Price per MMBtu 4Q21 Cashless Collar 10,500 $48.81/$67.63 20,000 $2.25/$2.52 — — 20,000 $2.15/$2.75 Swap 8,000 $54.49 — — 20,000 $0.43 13,370 $2.13 Oil Roll Swap (1) 4,500 $0.16 — — — — — — 1Q22 Cashless Collar 6,500 $35.10/$59.44 — — — — 20,000 $2.15/$2.75 Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 4,000 $55.06 — — — — — — 2Q22 Cashless Collar 5,000 $36.64/$63.52 — — — — 20,000 $2.15/$2.75 Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 4,000 $55.06 — — — — — — 3Q22 Cashless Collar 4,200 $40.64/$67.74 20,000 $2.80/$4.20 — — — — Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 2,000 $55.13 — — — — — — 4Q22 Cashless Collar 3,700 $41.40/$69.50 20,000 $2.80/$4.20 — — — — Swap 1,000 $50.15 — — — — 10,000 $2.13 Oil Roll Swap (1) 2,000 $0.22 — — — — — — Swaptions 2,000 $55.13 — — — — — — _______________________________ (1) The weighted average differential represents the amount of reduction to NYMEX WTI prices for the notional volumes covered by the swap contracts. |
Schedule of Derivatives and Balance Sheet Location | The following table contains a summary of all the Company’s derivative positions reported on the accompanying balance sheets as of the dates indicated in the table below (in thousands): September 30, 2021 December 31, 2020 Derivative Assets: Commodity contracts – current $ — $ 7,482 Commodity contracts – noncurrent — — Derivative Liabilities: Commodity contracts – current (92,784) (6,402) Commodity contracts – noncurrent (9,044) (1,330) Total derivative assets (liabilities), net $ (101,828) $ (250) |
Summary of Components of Derivative Gain (Loss) Statements of Operations | The following table summarizes the components of the derivative gain (loss) presented on the accompanying statements of operations for the periods below (in thousands): Three Months Ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Derivative cash settlement gain (loss): Oil contracts $ (19,838) $ 9,165 $ (41,454) $ 42,088 Gas contracts (6,708) (538) (9,082) 406 Total derivative cash settlement gain (loss) (1) (26,546) 8,627 (50,536) 42,494 Change in fair value gain (loss) (9,678) (19,297) (83,077) 22,109 Total derivative gain (loss) (1) $ (36,224) $ (10,670) $ (133,613) $ 64,603 _______________________________ |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Earnings Per Basic and Diluted Shares | The Company uses the treasury stock method to calculate earnings per share as shown in the following table (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income $ 40,659 $ 3,251 $ 15,221 $ 42,900 Basic net income per common share $ 1.32 $ 0.16 $ 0.55 $ 2.07 Diluted net income per common share $ 1.31 $ 0.16 $ 0.55 $ 2.06 Weighted-average shares outstanding - basic 30,849 20,832 27,485 20,753 Add: dilutive effect of contingent stock awards 276 71 343 73 Add: dilutive effect of exercisable stock options 13 — 11 — Weighted-average shares outstanding - diluted 31,138 20,903 27,839 20,826 |
BASIS OF PRESENTATION - NARRATI
BASIS OF PRESENTATION - NARRATIVE (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)contractsegment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Receivables from contracts with customers | $ 86,414,000 | $ 86,414,000 | $ 32,673,000 | ||
Abandonment and impairment of unproved properties | $ 0 | $ 223,000 | $ 2,215,000 | $ 30,589,000 | |
Purchase of Fresh Water Commitment | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Number of contracts | contract | 1 | 1 |
BASIS OF PRESENTATION - DISAGGR
BASIS OF PRESENTATION - DISAGGREGATED REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Oil and gas sales | $ 189,963 | $ 58,858 | $ 420,157 | $ 155,455 |
Crude oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Oil and gas sales | 131,360 | 47,251 | 297,515 | 127,331 |
Natural gas sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Oil and gas sales | 24,764 | 5,742 | 53,064 | 16,472 |
Natural gas liquids sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Oil and gas sales | $ 33,839 | $ 5,865 | $ 69,578 | $ 11,652 |
BASIS OF PRESENTATION - CASH, C
BASIS OF PRESENTATION - CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 40,410 | $ 24,743 | $ 3,777 | |
Restricted cash | 102 | 95 | ||
Total cash, cash equivalents, and restricted cash | $ 40,512 | $ 24,845 | $ 3,872 | $ 11,095 |
BASIS OF PRESENTATION - ACCOUNT
BASIS OF PRESENTATION - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued drilling and completion costs | $ 22,628 | $ 453 |
Accounts payable trade | 11,740 | 1,931 |
Accrued general and administrative expense | 6,667 | 4,942 |
Accrued merger transaction costs | 991 | 2,587 |
Accrued lease operating expense | 2,893 | 1,793 |
Accrued interest expense | 4,359 | 322 |
Accrued oil and gas hedging | 6,767 | 0 |
Accrued production and ad valorem taxes and other | 39,006 | 25,397 |
Total accounts payable and accrued expenses | $ 95,051 | $ 37,425 |
ACQUISITIONS & DIVESTITURES - N
ACQUISITIONS & DIVESTITURES - NARRATIVE (Details) | Apr. 01, 2021USD ($)number$ / sharesshares | Nov. 30, 2021$ / shares | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Dec. 31, 2020$ / shares |
Business Acquisition [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Merger transaction costs | $ 5,580,000 | $ 888,000 | $ 27,121,000 | $ 909,000 | |||
HighPoint Merger | |||||||
Business Acquisition [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Exchange ratio (in shares) | shares | 0.11464 | ||||||
Common stock, shares issued (in shares) | shares | 9,802,000 | ||||||
Aggregate principal amount | $ 100,000,000 | ||||||
Net operating loss obtained | $ 170,600,000 | ||||||
HighPoint Merger | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | |||||||
Business Acquisition [Line Items] | |||||||
Proved oil and gas properties, measurement input | number | 0.13 | ||||||
HighPoint Merger | Former HighPoint Stockholders | |||||||
Business Acquisition [Line Items] | |||||||
Common stock, shares issued (in shares) | shares | 487,952 | ||||||
HighPoint Merger | Shares of Bonanza Creek Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Common stock, shares issued (in shares) | shares | 9,314,214 | ||||||
HighPoint Merger | Senior Notes | Senior Notes Due 2026, 7.50% | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate principal amount of Bonanza Creek 7.5% Senior Notes | $ 100,000,000 | ||||||
Interest rate | 7.50% | ||||||
HighPoint Merger | HighPoint Merger | |||||||
Business Acquisition [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
HighPoint Merger | HighPoint Operating Company | Senior Notes | Senior Notes Due 2022 and Senior Notes Due 2025 | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate principal amount of Bonanza Creek 7.5% Senior Notes | $ 625,000,000 | ||||||
HighPoint Merger | HighPoint Operating Company | Senior Notes | Senior Notes Due 2022 | |||||||
Business Acquisition [Line Items] | |||||||
Interest rate | 7.00% | ||||||
HighPoint Merger | HighPoint Operating Company | Senior Notes | Senior Notes Due 2025 | |||||||
Business Acquisition [Line Items] | |||||||
Interest rate | 8.75% | ||||||
XOG Merger | Scenario, Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Annual dividend payments (in dollars per share) | $ / shares | $ 1.60 | ||||||
Crestone Peak Merger | Scenario, Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Annual dividend payments (in dollars per share) | $ / shares | $ 1.85 | ||||||
HighPoint Merger, XOG Merger, and Crestone Peak Merger | |||||||
Business Acquisition [Line Items] | |||||||
Merger transaction costs | $ 5,600,000 | $ 27,100,000 |
ACQUISITIONS & DIVESTITURES - M
ACQUISITIONS & DIVESTITURES - MERGER CONSIDERATION (Details) $ / shares in Units, $ in Thousands | Apr. 01, 2021USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Merger consideration paid in shares of Bonanza Creek Common Stock | $ | $ 374,933 |
HighPoint Merger | |
Business Acquisition [Line Items] | |
Common stock, shares issued (in shares) | 9,802,000 |
Closing price per share of Bonanza Creek Common Stock (in dollars per share) | $ / shares | $ 38.25 |
Aggregate principal amount of Bonanza Creek 7.5% Senior Notes | $ | $ 100,000 |
Total merger consideration | $ | $ 474,933 |
Exchange ratio (in shares) | 0.11464 |
HighPoint Merger | Senior Notes Due 2026, 7.50% | Senior Notes | |
Business Acquisition [Line Items] | |
Interest rate | 7.50% |
HighPoint Merger | Shares of Bonanza Creek Common Stock issued to existing holders of HighPoint Common Stock | |
Business Acquisition [Line Items] | |
Common stock, shares issued (in shares) | 488,000 |
HighPoint Merger | Shares of Bonanza Creek Common Stock issued to existing holders of HighPoint Senior Notes | |
Business Acquisition [Line Items] | |
Common stock, shares issued (in shares) | 9,314,214 |
ACQUISITIONS & DIVESTITURES - P
ACQUISITIONS & DIVESTITURES - PURCHASE PRICE ALLOCATION (Details) - HighPoint Merger $ in Thousands | Apr. 01, 2021USD ($) |
Assets Acquired | |
Cash and cash equivalents | $ 49,827 |
Accounts receivable - oil and gas sales | 26,343 |
Accounts receivable - joint interest and other | 9,161 |
Prepaid expenses and other | 3,608 |
Inventory of oilfield equipment | 4,688 |
Proved properties | 539,820 |
Other property and equipment, net of accumulated depreciation | 2,769 |
Right-of-use assets | 4,010 |
Deferred income tax assets | 110,513 |
Other noncurrent assets | 797 |
Total assets acquired | 751,536 |
Liabilities Assumed | |
Accounts payable and accrued expenses | 51,088 |
Oil and gas revenue distribution payable | 20,786 |
Lease liability | 744 |
Derivative liability | 13,481 |
Current portion of long-term debt | 154,000 |
Lease liability (long-term) | 3,266 |
Ad valorem taxes | 3,746 |
Derivative liability (long-term) | 5,019 |
Asset retirement obligations for oil and gas properties | 24,473 |
Total liabilities assumed | 276,603 |
Net assets acquired | $ 474,933 |
ACQUISITIONS & DIVESTITURES -_2
ACQUISITIONS & DIVESTITURES - PRO FORMA INFORMATION (Details) - HighPoint Merger - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | |||
Total revenue | $ 126,163 | $ 492,176 | $ 345,626 |
Net income (loss) | $ 16,030 | $ (26,058) | $ (1,007,643) |
Net income (loss) per common share: | |||
Basic (in dollars per share) | $ 0.52 | $ (0.84) | $ (32.98) |
Diluted (in dollars per share) | $ 0.52 | $ (0.84) | $ (32.98) |
LEASES - ASSETS AND LIABILITIES
LEASES - ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating leases | ||
Total right-of-use asset | $ 28,046 | $ 29,486 |
Total lease liability | 28,357 | 29,905 |
Field equipment | ||
Operating leases | ||
Total right-of-use asset | 20,716 | 27,537 |
Total lease liability | 20,716 | 27,537 |
Finance leases | ||
Right-of-use asset - field equipment | 0 | 219 |
Lease liability - field equipment | 0 | 117 |
Corporate leases | ||
Operating leases | ||
Total right-of-use asset | 6,519 | 1,481 |
Total lease liability | 6,830 | 1,900 |
Vehicles | ||
Operating leases | ||
Total right-of-use asset | 811 | 468 |
Total lease liability | $ 811 | $ 468 |
LEASES - LEASE COST (Details)
LEASES - LEASE COST (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)location | Sep. 30, 2020USD ($)location | Sep. 30, 2021USD ($)location | Sep. 30, 2020USD ($)location | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,635 | $ 3,462 | $ 10,529 | $ 10,560 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 0 | 6 | 3 | 13 |
Interest on lease liabilities | 0 | 1 | 1 | 3 |
Short-term lease cost | 281 | 129 | 492 | 2,011 |
Variable lease cost | (9) | (89) | 56 | (133) |
Sublease income | (91) | (89) | (274) | (267) |
Total lease cost | 3,816 | 3,420 | 10,807 | 12,187 |
Office rent expense | $ 500 | $ 300 | $ 1,300 | $ 800 |
Number of office spaces, portion subleased | location | 1 | 1 | 1 | 1 |
LEASES - WEIGHTED-AVERAGE AND D
LEASES - WEIGHTED-AVERAGE AND DISCOUNT RATE INFORMATION (Details) | Sep. 30, 2021 |
Operating Leases | |
Weighted-average lease term (years) | 3 years 2 months 12 days |
Weighted-average discount rate | 3.97% |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 3,293 | $ 3,187 | $ 9,783 | $ 9,599 |
Operating cash flows from finance leases | 0 | 1 | 1 | 3 |
Financing cash flows from finance leases | 0 | 31 | 21 | 71 |
Right-of-use assets obtained in exchange for new operating lease obligations | 3,136 | 918 | 8,635 | 8,306 |
Right-of-use assets obtained in exchange for new finance lease obligations | $ 0 | $ 0 | $ 0 | $ 219 |
LEASES - LEASE MATURITIES (Deta
LEASES - LEASE MATURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 3,557 | |
2022 | 11,594 | |
2023 | 7,509 | |
2024 | 3,564 | |
2025 | 1,290 | |
Thereafter | 2,765 | |
Total lease payments | 30,279 | |
Less: imputed interest | (1,922) | |
Total lease liability | $ 28,357 | $ 29,905 |
LONG-TERM DEBT - NARRATIVE (Det
LONG-TERM DEBT - NARRATIVE (Details) | Apr. 01, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Oct. 28, 2021USD ($) | Jul. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||||
Interest expense | $ 3,700,000 | $ 700,000 | $ 7,900,000 | $ 3,300,000 | ||||||
Capitalized interest expense | 600,000 | $ 300,000 | 1,200,000 | $ 1,700,000 | ||||||
Amended Credit Agreement | Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing base | $ 500,000,000 | $ 500,000,000 | ||||||||
Elected commitments | 400,000,000 | $ 400,000,000 | ||||||||
Amended Credit Agreement | Revolver | Minimum | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 0.00% | |||||||||
Amended Credit Agreement | Revolver | Minimum | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 2.00% | |||||||||
Amended Credit Agreement | Revolver | Minimum | Reference Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 1.00% | |||||||||
Amended Credit Agreement | Revolver | Maximum | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 3.00% | |||||||||
Amended Credit Agreement | Revolver | Maximum | Reference Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 2.00% | |||||||||
Amended Credit Agreement | HighPoint Merger | Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing base | $ 500,000,000 | $ 260,000,000 | ||||||||
Minimum current ratio covenant | 1 | |||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 750,000,000 | ||||||||
Maximum net leverage ratio | 3 | 3.50 | ||||||||
Credit facility outstanding | 60,000,000 | 60,000,000 | $ 0 | |||||||
Deferred financing costs | $ 3,900,000 | |||||||||
Amended Credit Agreement | HighPoint Merger | Revolver | Other Noncurrent Assets | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred financing costs | 2,200,000 | 2,200,000 | 700,000 | |||||||
Amended Credit Agreement | HighPoint Merger | Revolver | Prepaid Expenses and Other | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred financing costs | $ 1,800,000 | $ 1,800,000 | $ 400,000 | |||||||
Amended Credit Agreement | HighPoint Merger | Revolver | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 4.00% | 3.00% | ||||||||
Amended Credit Agreement | HighPoint Merger | Revolver | Reference Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 3.00% | 2.00% | ||||||||
Amended Credit Agreement | HighPoint Merger | Revolver | Minimum | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 0.50% | 0.00% | ||||||||
Amended Credit Agreement | HighPoint Merger | Revolver | Minimum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread | 1.50% | 0.00% | ||||||||
Amended Credit Agreement | HighPoint Merger | Subsequent Event | Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility outstanding | $ 0 | |||||||||
Senior Notes | Senior Notes Due 2026, 7.50% | HighPoint Merger | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 100,000,000 | |||||||||
Interest rate | 7.50% | |||||||||
Senior Notes | Senior Notes Due 2026, 7.50% | HighPoint Merger | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage | 107.50% | |||||||||
Senior Notes | Senior Notes Due 2026, 7.50% | HighPoint Merger | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage | 100.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details) $ in Thousands | Oct. 25, 2021USD ($) | Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)claimcontractbbl / d | Sep. 30, 2020USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 01, 2021bbl / dcontract |
Long-term Purchase Commitment [Line Items] | ||||||||||
Number of claims | claim | 0 | |||||||||
Unused commitments | $ 3,364 | $ 0 | $ 7,692 | $ 0 | ||||||
Aggregate financial commitment fee over the remaining term | 44,730 | 44,730 | ||||||||
Firm Transportation Commitment | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Aggregate financial commitment fee over the remaining term | $ 49,606 | $ 49,606 | ||||||||
Purchase of Fresh Water Commitment | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Number of contracts | contract | 1 | 1 | ||||||||
Aggregate financial commitment fee over the remaining term | $ 3,000 | $ 3,000 | ||||||||
NGL | Crude Oil Commitment | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Aggregate financial commitment fee over the remaining term | 41,700 | $ 41,700 | ||||||||
Periodic deficiency payment, incremental payment period | 6 months | |||||||||
Notification period, prior to agreement expiration date, optional extended term (at least) | 12 months | |||||||||
Optional extended term (up to) | 3 years | |||||||||
NGL | Crude Oil | Crude Oil Commitment | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Purchase commitment, volume required annual increase | 3.00% | |||||||||
Maximum volume requirement | bbl / d | 16,000 | |||||||||
NGL | Crude Oil | Scenario, Forecast | Crude Oil Commitment | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Purchase commitment, volume required annual increase | 3.00% | 3.00% | 3.00% | |||||||
HighPoint Merger | Firm Transportation Commitment | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Number of contracts | contract | 2 | |||||||||
Unused commitments | 3,400 | $ 7,700 | ||||||||
HighPoint Merger | Pipeline Transportation Commitment | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Number of contracts | contract | 1 | |||||||||
Minimum volume transportation charges, gross barrels per day requirement through April 2022 | bbl / d | 8,500 | |||||||||
Minimum volume transportation charges, gross barrels per day requirement thereafter through April 2025 | bbl / d | 12,500 | |||||||||
Aggregate financial commitment fee over the remaining term | 49,600 | 49,600 | ||||||||
Sterling Energy Investments LLC Versus HighPoint Operating Corporation Counterclaim Litigation | Settled Litigation | HighPoint Merger | Subsequent Event | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Amount awarded from other party | $ 2,400 | |||||||||
Sterling Energy Investments LLC vs HighPoint Operating Corporation Litigation | Pending Litigation | HighPoint Merger | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
Litigation liability | 900 | 900 | ||||||||
Sterling Energy Investments LLC vs HighPoint Operating Corporation Litigation | Pending Litigation | HighPoint Merger | Sterling | ||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||
NOAVs dismissed | $ 900 | $ 900 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - MINIMUM ANNUAL PAYMENTS (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 6,209 |
2022 | 29,207 |
2023 | 9,314 |
2024 | 0 |
2025 | 0 |
2026 and thereafter | 0 |
Total | 44,730 |
Firm Transportation | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | 2,502 |
2022 | 13,064 |
2023 | 14,600 |
2024 | 14,640 |
2025 | 4,800 |
2026 and thereafter | 0 |
Total | $ 49,606 |
STOCK-BASED COMPENSATION - NARR
STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2017 | |
2017 LTIP | ||||
STOCK-BASED COMPENSATION | ||||
Shares reserved for future issuance (in shares) | 2,467,430 | |||
2017 LTIP | Performance stock units | ||||
STOCK-BASED COMPENSATION | ||||
Distribution of shares to recipients (in shares) | 0 | |||
2017 LTIP | Performance stock units | Minimum | ||||
STOCK-BASED COMPENSATION | ||||
Ratio at which award holders get common stock of the company | 0 | |||
2017 LTIP | Performance stock units | Maximum | ||||
STOCK-BASED COMPENSATION | ||||
Ratio at which award holders get common stock of the company | 2 | |||
2021 LTIP | ||||
STOCK-BASED COMPENSATION | ||||
Shares reserved for future issuance (in shares) | 700,000 | |||
LTIP | ||||
STOCK-BASED COMPENSATION | ||||
Granted (in shares) | 0 | |||
Exercised in period, aggregate intrinsic value | $ 0.2 | |||
LTIP | Restricted stock units | ||||
STOCK-BASED COMPENSATION | ||||
Number of shares released upon vesting (in shares) | 1 | |||
Vesting period | 3 years | |||
Granted (in shares) | 178,567 | |||
Granted, fair value | $ 6.1 | |||
LTIP | Restricted stock units | 2019 | ||||
STOCK-BASED COMPENSATION | ||||
Vesting percent of shares | 33.00% | |||
LTIP | Restricted stock units | 2020 | ||||
STOCK-BASED COMPENSATION | ||||
Vesting percent of shares | 33.00% | |||
LTIP | Restricted stock units | 2021 | ||||
STOCK-BASED COMPENSATION | ||||
Vesting percent of shares | 33.00% | |||
LTIP | Performance stock units | ||||
STOCK-BASED COMPENSATION | ||||
Vesting period | 3 years | |||
Granted (in shares) | 64,258 | |||
Granted, fair value | $ 4.4 | |||
Number of trading days | 30 days | |||
LTIP | Performance stock units | Minimum | ||||
STOCK-BASED COMPENSATION | ||||
Ratio at which award holders get common stock of the company | 0 | |||
LTIP | Performance stock units | Maximum | ||||
STOCK-BASED COMPENSATION | ||||
Ratio at which award holders get common stock of the company | 2 | |||
LTIP | Stock options | ||||
STOCK-BASED COMPENSATION | ||||
Expiration period | 10 years | |||
Granted (in shares) | 0 |
STOCK-BASED COMPENSATION - SCHE
STOCK-BASED COMPENSATION - SCHEDULE OF EXPENSES (Details) - LTIP - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
STOCK-BASED COMPENSATION | ||||
Total stock-based compensation | $ 2,289 | $ 1,723 | $ 6,096 | $ 4,436 |
Restricted stock units | ||||
STOCK-BASED COMPENSATION | ||||
Total stock-based compensation | 1,561 | 1,350 | 4,628 | 3,935 |
Performance stock units | ||||
STOCK-BASED COMPENSATION | ||||
Total stock-based compensation | 728 | 373 | 1,468 | 375 |
Stock options | ||||
STOCK-BASED COMPENSATION | ||||
Total stock-based compensation | $ 0 | $ 0 | $ 0 | $ 126 |
STOCK-BASED COMPENSATION - UNRE
STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE (Details) $ in Thousands | Sep. 30, 2021USD ($) |
STOCK-BASED COMPENSATION | |
Unrecognized Compensation Expense | $ 13,797 |
Restricted stock units | |
STOCK-BASED COMPENSATION | |
Unrecognized Compensation Expense | 8,886 |
Performance stock units | |
STOCK-BASED COMPENSATION | |
Unrecognized Compensation Expense | $ 4,911 |
STOCK-BASED COMPENSATION - ACTI
STOCK-BASED COMPENSATION - ACTIVITY OF NON-VESTED STOCK, OTHER THAN OPTIONS (Details) - LTIP | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Restricted Stock Units | |
Units | |
Non-vested, beginning of year (in shares) | shares | 550,056 |
Granted (in shares) | shares | 178,567 |
Vested (in shares) | shares | (267,635) |
Forfeited (in shares) | shares | (23,586) |
Non-vested, end of quarter (in shares) | shares | 437,402 |
Weighted-Average Grant-Date Fair Value | |
Non-vested, beginning of year (in dollars per share) | $ / shares | $ 20.30 |
Granted (in dollars per share) | $ / shares | 34.35 |
Vested (in dollars per share) | $ / shares | 21.12 |
Forfeited (in dollars per share) | $ / shares | 17.25 |
Non-vested, end of quarter (in dollars per share) | $ / shares | $ 25.69 |
Performance Stock Units | |
Units | |
Non-vested, beginning of year (in shares) | shares | 185,588 |
Granted (in shares) | shares | 64,258 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Non-vested, end of quarter (in shares) | shares | 249,846 |
Weighted-Average Grant-Date Fair Value | |
Non-vested, beginning of year (in dollars per share) | $ / shares | $ 22.63 |
Granted (in dollars per share) | $ / shares | 68.99 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Non-vested, end of quarter (in dollars per share) | $ / shares | $ 34.56 |
Performance Stock Units | Minimum | |
Weighted-Average Grant-Date Fair Value | |
Ratio at which award holders get common stock of the company | 0 |
Performance Stock Units | Maximum | |
Weighted-Average Grant-Date Fair Value | |
Ratio at which award holders get common stock of the company | 2 |
STOCK-BASED COMPENSATION - OTHE
STOCK-BASED COMPENSATION - OTHER THAN OPTIONS SPLIT CRITERION (Details) - Performance stock units - LTIP | 9 Months Ended |
Sep. 30, 2021 | |
2021 | |
STOCK-BASED COMPENSATION | |
TSR | 100.00% |
ROCE | 0.00% |
2020 | |
STOCK-BASED COMPENSATION | |
TSR | 67.00% |
ROCE | 33.00% |
2019 | |
STOCK-BASED COMPENSATION | |
TSR | 50.00% |
ROCE | 50.00% |
STOCK-BASED COMPENSATION - AC_2
STOCK-BASED COMPENSATION - ACTIVITY OF STOCK OPTIONS (Details) - LTIP $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Stock Options | |
Outstanding, beginning of year (in shares) | shares | 72,368 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (21,878) |
Forfeited (in shares) | shares | (510) |
Outstanding, end of quarter (in shares) | shares | 49,980 |
Number of options outstanding and exercisable (in shares) | shares | 49,980 |
Weighted-Average Exercise Price | |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 34.36 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 34.36 |
Forfeited (in dollars per share) | $ / shares | 34.36 |
Outstanding, end of quarter (in dollars per share) | $ / shares | 34.36 |
Number of options outstanding and exercisable (in dollars per share) | $ / shares | $ 34.36 |
Additional Information | |
Weighted-Average Remaining Contractual Term (in years) | 5 years 7 months 6 days |
Weighted-Average Remaining Contractual Term, Number of options outstanding and exercisable (in years) | 5 years 7 months 6 days |
Aggregate Intrinsic Value (in thousands) | $ | $ 677 |
Aggregate Intrinsic Value, Number of options outstanding and exercisable (in thousands) | $ | $ 677 |
FAIR VALUE MEASUREMENTS - SCHED
FAIR VALUE MEASUREMENTS - SCHEDULE OF NON-FINANCIAL ASSETS AND LIABILITIES (Details) - Estimate of Fair Value Measurement - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Level 1 | ||
Financial assets and liabilities accounted for at fair value | ||
Derivative assets | $ 0 | |
Derivative liabilities | $ 0 | 0 |
Level 2 | ||
Financial assets and liabilities accounted for at fair value | ||
Derivative assets | 7,482 | |
Derivative liabilities | 101,828 | 7,732 |
Level 3 | ||
Financial assets and liabilities accounted for at fair value | ||
Derivative assets | 0 | |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - NARRA
FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Apr. 01, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Proved oil and gas property impairments | $ 0 | $ 0 | $ 0 | $ 0 | |
HighPoint Merger | Senior Notes Due 2026, 7.50% | Senior Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest rate | 7.50% | ||||
Aggregate principal amount | $ 100,000,000 | ||||
Debt issuance costs, discounts or premiums | $ 0 | ||||
HighPoint Merger | Senior Notes Due 2026, 7.50% | Senior Notes | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt, estimated fair value | $ 100,800,000 | $ 100,800,000 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - SCHEDULE OF ROLL FORWARD ACTIVITY (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Beginning balance as of December 31, 2020 | $ 28,699 |
Liabilities settled | (3,885) |
Additions | 24,658 |
Accretion expense | 1,290 |
Ending balance as of September 30, 2021 | $ 50,762 |
DERIVATIVES - NARRATIVE (Detail
DERIVATIVES - NARRATIVE (Details) | Sep. 30, 2021derivative |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Number of derivative instruments qualified as hedging instruments | 0 |
DERIVATIVES - COMMODITY DERIVAT
DERIVATIVES - COMMODITY DERIVATIVE CONTRACTS (Details) - Subsequent Event - Scenario, Forecast | 3 Months Ended | ||||
Dec. 31, 2022MMBTU$ / MMBTU$ / bblbbl | Sep. 30, 2022MMBTU$ / bbl$ / MMBTUbbl | Jun. 30, 2022MMBTU$ / bbl$ / MMBTUbbl | Mar. 31, 2022MMBTU$ / bbl$ / MMBTUbbl | Dec. 31, 2021MMBTU$ / MMBTU$ / bblbbl | |
Crude Oil (NYMEX WTI) | Cashless Collar | |||||
Derivative [Line Items] | |||||
Crude Oil, notional amount (in Bbls per day) | bbl | 3,700 | 4,200 | 5,000 | 6,500 | 10,500 |
Crude Oil (NYMEX WTI) | Cashless Collar | Minimum | |||||
Derivative [Line Items] | |||||
Weighted Avg., price (in dollars per Bbl and MMBtu, respectively) | $ / bbl | 41.40 | 40.64 | 36.64 | 35.10 | 48.81 |
Crude Oil (NYMEX WTI) | Cashless Collar | Maximum | |||||
Derivative [Line Items] | |||||
Weighted Avg., price (in dollars per Bbl and MMBtu, respectively) | $ / bbl | 69.50 | 67.74 | 63.52 | 59.44 | 67.63 |
Crude Oil (NYMEX WTI) | Swap | |||||
Derivative [Line Items] | |||||
Crude Oil, notional amount (in Bbls per day) | bbl | 1,000 | 1,000 | 1,000 | 1,000 | 8,000 |
Weighted Avg., price (in dollars per Bbl and MMBtu, respectively) | $ / bbl | 50.15 | 50.15 | 50.15 | 50.15 | 54.49 |
Crude Oil (NYMEX WTI) | Oil Roll Swaps | |||||
Derivative [Line Items] | |||||
Crude Oil, notional amount (in Bbls per day) | bbl | 2,000 | 2,000 | 2,000 | 2,000 | 4,500 |
Weighted Avg., price (in dollars per Bbl and MMBtu, respectively) | $ / bbl | 0.22 | 0.22 | 0.22 | 0.22 | 0.16 |
Crude Oil (NYMEX WTI) | Swaptions | |||||
Derivative [Line Items] | |||||
Crude Oil, notional amount (in Bbls per day) | bbl | 2,000 | 2,000 | 4,000 | 4,000 | |
Weighted Avg., price (in dollars per Bbl and MMBtu, respectively) | $ / bbl | 55.13 | 55.13 | 55.06 | 55.06 | |
Natural Gas (NYMEX Henry Hub) | Cashless Collar | |||||
Derivative [Line Items] | |||||
Natural Gas, notional amount (in MMBtu per day) | MMBTU | 20,000 | 20,000 | 20,000 | ||
Natural Gas (NYMEX Henry Hub) | Cashless Collar | Minimum | |||||
Derivative [Line Items] | |||||
Weighted Avg., price (in dollars per MMBtu) | 2.80 | 2.80 | 2.25 | ||
Natural Gas (NYMEX Henry Hub) | Cashless Collar | Maximum | |||||
Derivative [Line Items] | |||||
Weighted Avg., price (in dollars per MMBtu) | 4.20 | 4.20 | 2.52 | ||
Natural Gas (CIG Basis) | Swap | |||||
Derivative [Line Items] | |||||
Weighted Avg., price (in dollars per Bbl and MMBtu, respectively) | 0.43 | ||||
Natural Gas, notional amount (in MMBtu per day) | MMBTU | 20,000 | ||||
Natural Gas (CIG) | Cashless Collar | |||||
Derivative [Line Items] | |||||
Natural Gas, notional amount (in MMBtu per day) | MMBTU | 20,000 | 20,000 | 20,000 | ||
Natural Gas (CIG) | Cashless Collar | Minimum | |||||
Derivative [Line Items] | |||||
Weighted Avg., price (in dollars per MMBtu) | 2.15 | 2.15 | 2.15 | ||
Natural Gas (CIG) | Cashless Collar | Maximum | |||||
Derivative [Line Items] | |||||
Weighted Avg., price (in dollars per MMBtu) | 2.75 | 2.75 | 2.75 | ||
Natural Gas (CIG) | Swap | |||||
Derivative [Line Items] | |||||
Natural Gas, notional amount (in MMBtu per day) | MMBTU | 10,000 | 10,000 | 10,000 | 10,000 | 13,370 |
Weighted Avg., price (in dollars per MMBtu) | 2.13 | 2.13 | 2.13 | 2.13 | 2.13 |
DERIVATIVES - DERIVATIVE POSITI
DERIVATIVES - DERIVATIVE POSITIONS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives measured at fair value | ||
Derivative, Fair Value, Net, Total | $ (101,828) | $ (250) |
Commodity | Commodity contracts – current | ||
Derivatives measured at fair value | ||
Derivative Assets | 0 | 7,482 |
Commodity | Commodity contracts – noncurrent | ||
Derivatives measured at fair value | ||
Derivative Assets | 0 | 0 |
Commodity | Commodity contracts – current | ||
Derivatives measured at fair value | ||
Derivative Liabilities | (92,784) | (6,402) |
Commodity | Commodity contracts – noncurrent | ||
Derivatives measured at fair value | ||
Derivative Liabilities | $ (9,044) | $ (1,330) |
DERIVATIVES - DERIVATIVE GAIN (
DERIVATIVES - DERIVATIVE GAIN (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of the derivative loss | ||||
Total derivative gain (loss) | $ (36,224) | $ (10,670) | $ (133,613) | $ 64,603 |
Commodity derivative | ||||
Components of the derivative loss | ||||
Total derivative cash settlement gain (loss) | (26,546) | 8,627 | (50,536) | 42,494 |
Change in fair value gain (loss) | (9,678) | (19,297) | (83,077) | 22,109 |
Total derivative gain (loss) | (36,224) | (10,670) | (133,613) | 64,603 |
Commodity derivative | Oil contracts | ||||
Components of the derivative loss | ||||
Total derivative cash settlement gain (loss) | (19,838) | 9,165 | (41,454) | 42,088 |
Commodity derivative | Gas contracts | ||||
Components of the derivative loss | ||||
Total derivative cash settlement gain (loss) | $ (6,708) | $ (538) | $ (9,082) | $ 406 |
EARNINGS PER SHARE - NARRATIVE
EARNINGS PER SHARE - NARRATIVE (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021shares | Sep. 30, 2020shares | Sep. 30, 2021shares | Sep. 30, 2020shares | |
STOCK-BASED COMPENSATION | ||||
Antidilutive securities excluded from EPS calculation (in shares) | 115,448 | 549,967 | 81,142 | 427,857 |
LTIP | Minimum | Performance stock units | ||||
STOCK-BASED COMPENSATION | ||||
Ratio at which award holders get common stock of the company | 0 | |||
LTIP | Maximum | Performance stock units | ||||
STOCK-BASED COMPENSATION | ||||
Ratio at which award holders get common stock of the company | 2 |
EARNINGS PER SHARE - SCHEDULE O
EARNINGS PER SHARE - SCHEDULE OF EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 40,659 | $ (25,319) | $ (119) | $ 3,251 | $ (38,902) | $ 78,551 | $ 15,221 | $ 42,900 |
Basic net income per common share (in dollars per share) | $ 1.32 | $ 0.16 | $ 0.55 | $ 2.07 | ||||
Diluted net income per common share (in dollars per share) | $ 1.31 | $ 0.16 | $ 0.55 | $ 2.06 | ||||
Weighted-average shares outstanding - basic (in shares) | 30,849 | 20,832 | 27,485 | 20,753 | ||||
Add: dilutive effect of contingent stock awards (in shares) | 276 | 71 | 343 | 73 | ||||
Add: dilutive effect of exercisable stock options (in shares) | 13 | 0 | 11 | 0 | ||||
Weighted-average shares outstanding - diluted (in shares) | 31,138 | 20,903 | 27,839 | 20,826 |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 15,596,000 | $ 4,689,000 | $ 5,160,000 | $ 4,689,000 | |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS - NARRATIVE (
SUBSEQUENT EVENTS - NARRATIVE (Details) - Subsequent Event - Senior Notes - Senior Notes Due 2026, 5.0% | Oct. 13, 2021USD ($) |
Subsequent Event [Line Items] | |
Interest rate | 5.00% |
Aggregate principal amount | $ 400,000,000 |
Debt Instrument, Redemption, Period One | |
Subsequent Event [Line Items] | |
Redemption price, percentage | 100.00% |
Percentage of principal amount redeemed (up to) | 35.00% |
Redemption period, after date of closing of equity offering | 180 days |
Debt Instrument, Redemption, Period Two | |
Subsequent Event [Line Items] | |
Redemption price, percentage | 102.50% |
Percentage of principal amount not redeemed | 65.00% |
Debt Instrument, Redemption, Period Three | |
Subsequent Event [Line Items] | |
Redemption price, percentage | 101.25% |
Debt Instrument, Redemption, Period Four | |
Subsequent Event [Line Items] | |
Redemption price, percentage | 100.00% |
Debt Instrument, Redemption, Period Five | |
Subsequent Event [Line Items] | |
Redemption price, percentage | 105.00% |