Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 25, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Matador Resources Co | ||
Entity Central Index Key | 1,520,006 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,861,025,900 | ||
Entity Common Stock, Shares Outstanding | 85,801,633 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Deferred gain on sale of property, current | $ 4,830 | $ 0 |
Current assets | ||
Cash | 16,732 | 8,407 |
Restricted cash | 44,357 | 609 |
Accounts receivable | ||
Oil and natural gas revenues | 16,616 | 28,976 |
Joint interest billings | 16,999 | 6,925 |
Other | 10,794 | 9,091 |
Derivative instruments | 16,284 | 55,549 |
Lease and well equipment inventory | 2,022 | 1,212 |
Prepaid Expense and Other Assets, Current | 3,203 | 1,649 |
Total current assets | 127,007 | 112,418 |
Oil and natural gas properties, full-cost method | ||
Evaluated | 2,122,174 | 1,617,913 |
Unproved and unevaluated | 387,504 | 264,419 |
Other property and equipment | 86,387 | 43,472 |
Less accumulated depletion, depreciation and amortization | (1,583,659) | (603,732) |
Net property and equipment | 1,012,406 | 1,322,072 |
Other assets | ||
Other assets | 1,448 | 0 |
Total other assets | 1,448 | 0 |
Total assets | 1,140,861 | 1,434,490 |
Current liabilities | ||
Accounts payable | 10,966 | 17,526 |
Accrued liabilities | 92,369 | 107,356 |
Royalties payable | 16,493 | 14,461 |
Due to affiliates, current | 5,670 | 2,146 |
Advances from joint interest owners | 700 | 0 |
Amounts due to joint ventures | 2,793 | 0 |
Income taxes payable | 2,848 | 444 |
Other current liabilities | 161 | 103 |
Total current liabilities | 136,830 | 142,036 |
Long-term liabilities | ||
Borrowings under Credit Agreement | 0 | 338,199 |
Senior unsecured notes payable | 391,254 | 0 |
Asset retirement obligations | 15,166 | 11,640 |
Amounts due to joint ventures | 3,956 | 0 |
Deferred income taxes | 0 | (73,534) |
Deferred gain on sale of property, non-current | 102,506 | 0 |
Other long-term liabilities | 2,190 | 2,540 |
Total long-term liabilities | $ 515,072 | $ 425,913 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity | ||
Common stock — $0.01 par value, 120,000,000 and 80,000,000 shares authorized; 85,567,021 and 73,373,744 shares issued; 85,564,435 and 73,342,777 shares outstanding, respectively | $ 856 | $ 734 |
Additional paid-in capital | 1,026,077 | 724,819 |
Retained (deficit) earnings | (538,930) | 140,855 |
Total shareholders' equity | 488,003 | 866,408 |
Stockholders' Equity Attributable to Noncontrolling Interest | 956 | 133 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 488,959 | 866,541 |
Total liabilities and shareholders' equity | $ 1,140,861 | $ 1,434,490 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 120,000,000 | 80,000,000 |
Common stock, shares issued | 85,567,021 | 73,373,744 |
Common stock, shares outstanding | 85,564,435 | 73,342,777 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Oil and natural gas revenues | $ 278,340 | $ 367,712 | $ 269,030 |
Realized gain (loss) on derivatives | 77,094 | 5,022 | (909) |
Unrealized (loss) gain on derivatives | (39,265) | 58,302 | (7,232) |
Total revenues | 316,169 | 431,036 | 260,889 |
Expenses | |||
Production taxes and marketing | 35,535 | 33,172 | 20,973 |
Lease operating | 58,193 | 51,353 | 38,720 |
Depletion, depreciation and amortization | 178,847 | 134,737 | 98,395 |
Accretion of asset retirement obligations | 734 | 504 | 348 |
Full-cost ceiling impairment | 801,166 | 0 | 21,229 |
General and administrative | 50,105 | 32,152 | 20,779 |
Total expenses | 1,124,580 | 251,918 | 200,444 |
Operating (loss) income | (808,411) | 179,118 | 60,445 |
Other income (expense) | |||
Net loss on asset sales and inventory impairment | 908 | 0 | (192) |
Interest expense | (21,754) | (5,334) | (5,687) |
Interest and other income | 2,365 | 1,345 | 225 |
Total other expense | (18,481) | (3,989) | (5,654) |
(Loss) income before income taxes | (826,892) | 175,129 | 54,791 |
Income tax provision (benefit) | |||
Current | 2,959 | 133 | 404 |
Deferred | (150,327) | 64,242 | 9,293 |
Total income tax (benefit) provision | (147,368) | 64,375 | 9,697 |
Net (loss) income | (679,524) | 110,754 | 45,094 |
Net (income) loss attributable to non-controlling interest in subsidiaries | (261) | 17 | 0 |
Net (loss) income | $ (679,785) | $ 110,771 | $ 45,094 |
Earnings (loss) per common share | |||
Basic (usd per share) | $ (8.34) | $ 1.58 | $ 0.77 |
Diluted (usd per share) | $ (8.34) | $ 1.56 | $ 0.77 |
Weighted average common shares outstanding | |||
Basic | 81,537 | 70,229 | 58,777 |
Diluted | 81,537 | 70,906 | 58,929 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Preferred Stock | Additional paid-in capital | Retained earnings (deficit) | Treasury stock | Parent | Noncontrolling Interest | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member]Preferred Stock | Convertible Preferred Stock [Member]Additional paid-in capital | Convertible Preferred Stock [Member]Parent |
Beginning Balance at Dec. 31, 2012 | $ 379,104 | $ 568 | $ 0 | $ 404,311 | $ (15,010) | $ (10,765) | $ 379,104 | |||||
Beginning Balance, shares at Dec. 31, 2012 | 56,779,000 | 0 | 1,201,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of Class A common stock | 149,069 | $ 98 | 148,971 | 149,069 | ||||||||
Issuance of Class A common stock, shares | 9,780,000 | |||||||||||
Issuance of Class A common stock to Board member and advisors | 57 | $ 0 | 57 | 57 | ||||||||
Issuance of Class A common stock to Board member and advisors, shares | 22,000 | |||||||||||
Stock options expense related to equity based awards | 1,232 | 1,232 | 1,232 | |||||||||
Liability based stock option awards settled | 162 | 162 | 162 | |||||||||
Restricted stock issued | 0 | $ (4) | (4) | |||||||||
Restricted stock issued, shares | 378,000 | |||||||||||
Restricted stock forfeited | (22) | (22) | (22) | |||||||||
Restricted stock forfeited, Shares | 105,000 | |||||||||||
Restricted stock and restricted stock units expense | 1,618 | 1,618 | 1,618 | |||||||||
Capital contribution from non-controlling interest owners in less-than-wholly-owned subsidiaries | 0 | |||||||||||
Net (loss) income | 45,094 | 45,094 | 45,094 | |||||||||
Cost to issue equity | (7,390) | (7,390) | (7,390) | |||||||||
Ending Balance, shares at Dec. 31, 2013 | 66,959,000 | 0 | 1,306,000 | |||||||||
Ending Balance at Dec. 31, 2013 | 568,924 | $ 670 | $ 0 | 548,935 | 30,084 | $ (10,765) | 568,924 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of Class A common stock | 181,875 | $ 75 | 181,800 | 181,875 | ||||||||
Issuance of Class A common stock, shares | 7,500,000 | |||||||||||
Issuance of Class A common stock to Board member and advisors | 16 | 16 | 16 | |||||||||
Issuance of Class A common stock to Board member and advisors, shares | 30,000 | |||||||||||
Stock options expense related to equity based awards | 2,279 | 2,279 | 2,279 | |||||||||
Stock options exercised | 43 | 43 | 43 | |||||||||
Stock options exercised, shares | 8,000 | |||||||||||
Liability based stock option awards settled | 84 | 84 | 84 | |||||||||
Restricted stock issued | 0 | $ (2) | (2) | 0 | ||||||||
Restricted stock issued, shares | 212,000 | |||||||||||
Restricted stock forfeited | (17) | (17) | (17) | |||||||||
Restricted stock forfeited, Shares | 60,000 | |||||||||||
Restricted stock and restricted stock units expense | 3,023 | 3,023 | 3,023 | |||||||||
Cancellation of treasury stock | $ (13) | (10,752) | $ 10,765 | |||||||||
Cancellation of treasury stock (shares) | (1,335,000) | (1,335,000) | ||||||||||
Capital contribution from non-controlling interest owners in less-than-wholly-owned subsidiaries | 150 | $ 150 | ||||||||||
Class B dividends declared | 0 | |||||||||||
Net (loss) income | 110,754 | 110,771 | 110,771 | (17) | ||||||||
Cost to issue equity | $ (590) | $ 0 | (590) | (590) | ||||||||
Ending Balance, shares at Dec. 31, 2014 | 73,342,777 | 73,374,000 | 0 | 31,000 | ||||||||
Ending Balance at Dec. 31, 2014 | $ 866,541 | $ 734 | $ 0 | 724,819 | 140,855 | $ 0 | 866,408 | 133 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of Class A common stock | 260,252 | $ 104 | 260,148 | 260,252 | $ 32,490 | $ 1 | $ 32,489 | $ 32,490 | ||||
Issuance of Class A common stock, shares | 10,329,000 | 150,000 | ||||||||||
Conversion of Class B common stock to Class A common stock, shares | (1,500,000) | (150,000) | ||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ (15) | $ (1) | (14) | |||||||||
Stock options expense related to equity based awards | 9,333 | 9,333 | 9,333 | |||||||||
Stock options exercised | $ 10 | 10 | 10 | |||||||||
Stock issued during period exercise of liability based option | 25,000 | |||||||||||
Stock options exercised, shares | 85,000 | 25,000 | ||||||||||
Liability based stock option awards settled | $ 446 | 446 | 446 | |||||||||
Restricted stock issued | 0 | $ (4) | (4) | 0 | ||||||||
Restricted stock issued, shares | 429,000 | |||||||||||
Restricted stock forfeited | 0 | 0 | 0 | |||||||||
Restricted stock forfeited, Shares | 138,000 | |||||||||||
Vesting of restricted stock units | 52,000 | |||||||||||
Restricted stock and restricted stock units expense | 0 | $ 1 | (1) | 0 | ||||||||
Cancellation of treasury stock | $ (2) | 2 | $ 0 | |||||||||
Cancellation of treasury stock (shares) | (167,000) | (167,000) | ||||||||||
Capital contribution from non-controlling interest owners in less-than-wholly-owned subsidiaries | 562 | 562 | ||||||||||
Net (loss) income | (679,524) | (679,785) | (679,785) | 261 | ||||||||
Cost to issue equity | $ (1,151) | (1,151) | (1,151) | |||||||||
Ending Balance, shares at Dec. 31, 2015 | 85,564,435 | 85,567,000 | 2,000 | |||||||||
Ending Balance at Dec. 31, 2015 | $ 488,959 | $ 856 | $ 1,026,077 | $ (538,930) | $ 0 | $ 488,003 | $ 956 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net (loss) income | $ (679,524) | $ 110,754 | $ 45,094 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | |||
Unrealized loss (gain) on derivatives | 39,265 | (58,302) | 7,232 |
Depletion, depreciation and amortization | 178,847 | 134,737 | 98,395 |
Accretion of asset retirement obligations | 734 | 504 | 348 |
Full-cost ceiling impairment | 801,166 | 0 | 21,229 |
Stock-based compensation expense | 9,450 | 5,524 | 3,897 |
Deferred income tax (benefit) provision | (150,327) | 64,242 | 9,293 |
Amortization of debt issuance costs and discounts | 852 | 0 | 0 |
Net (gain) loss on asset sales and inventory impairment | (908) | 0 | 192 |
Changes in operating assets and liabilities | |||
Accounts receivable | 3,633 | (13,318) | (2,160) |
Lease and well equipment inventory | (180) | (211) | 243 |
Prepaid expenses | (544) | (783) | (668) |
Other assets | (552) | 1,212 | (548) |
Accounts payable, accrued liabilities and other current liabilities | 1,375 | 607 | (3,638) |
Royalties payable | 1,654 | 6,663 | 1,257 |
Advances from joint interest owners | 700 | 0 | (1,515) |
Income taxes payable | 2,405 | 39 | 404 |
Other long-term liabilities | 489 | (187) | 415 |
Net cash provided by operating activities | 208,535 | 251,481 | 179,470 |
Investing activities | |||
Proceeds from sale of assets | 139,836 | 79 | 0 |
Oil and natural gas properties capital expenditures | (432,715) | (560,849) | (363,192) |
Expenditures for other property and equipment | (64,499) | (9,152) | (3,977) |
Business combination, net of cash acquired | (24,028) | 0 | 0 |
Maturities of certificates of deposit, net of purchases | 0 | 0 | 230 |
Restricted cash | (43,098) | 0 | 0 |
Restricted cash in less-than-wholly-owned subsidiaries | (650) | (609) | 0 |
Net cash used in investing activities | (425,154) | (570,531) | (366,939) |
Financing activities | |||
Repayments of borrowings | (476,982) | (180,000) | (130,000) |
Borrowings under Credit Agreement | 125,000 | 320,000 | 180,000 |
Proceeds from issuance of common stock | 188,720 | 181,875 | 149,069 |
Swing sale profit contribution | 400,000 | 0 | 0 |
Cost to issue equity | (1,158) | (590) | (7,390) |
Cost to issue senior unsecured notes | (9,598) | 0 | 0 |
Proceeds from stock options exercised | 10 | 43 | 0 |
Capital contribution from non-controlling interest owners in less-than-wholly-owned subsidiaries | 562 | 150 | 0 |
Taxes paid related to net share settlement of stock-based compensation | (1,610) | (308) | (18) |
Net cash provided by financing activities | 224,944 | 321,170 | 191,661 |
Increase in cash | 8,325 | 2,120 | 4,192 |
Cash at beginning of year | 8,407 | 6,287 | 2,095 |
Cash at end of year | $ 16,732 | $ 8,407 | $ 6,287 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Matador Resources Company, a Texas corporation (“Matador” and, collectively with its subsidiaries, the “Company”), is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. The Company’s current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of Matador Resources Company and its wholly-owned and majority-owned subsidiaries. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Accordingly, the Company consolidates certain subsidiaries that are less-than-wholly-owned and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification (“ASC”) 810. The Company proportionately consolidates certain joint ventures that are less-than-wholly-owned and are involved in oil and natural gas exploration. All intercompany balances and transactions have been eliminated in consolidation. The Company has only one reportable operating segment, which is oil and natural gas exploration and production. The Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise. Although the Company’s midstream operations have increased in significance during 2015, as of December 31, 2015, the midstream operations do not meet any of the thresholds which would require segment reporting. Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations, cash flows or retained earnings. Change in Accounting Principles The Company adopted Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest (Subtopic 935-30): Simplifying the Presentation of Debt Issuance Costs , effective June 30, 2015. This standard requires companies that have historically presented debt issuance costs as an asset to present those costs as a direct deduction from the carrying amount of the underlying debt liability. To the extent that there are no borrowings under the Credit Agreement (as defined in Note 6), the related deferred loan costs will continue to be classified as an asset. The guidance required retrospective application in the financial statements. As such, the Company reclassified $1.8 million at December 31, 2014 related to deferred loan costs for the Credit Agreement which had previously been presented in “Prepaid expenses and other assets.” As the Company had no borrowings outstanding under the Credit Agreement at December 31, 2015 , approximately $1.8 million of deferred loan costs related to the Credit Agreement are included in “Prepaid expenses and other assets.” The Company’s senior unsecured notes are presented net of approximately $8.7 million of deferred loan costs at December 31, 2015 . The Company had no senior unsecured notes outstanding at December 31, 2014 . The Company also adopted ASU 2015-17, Income Taxes (Topic 740) , effective December 31, 2015. This standard requires deferred income tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. The standard permitted either prospective or retrospective application. The Company elected to apply the standard retrospectively. As such, the Company reclassified approximately $19.8 million of “Deferred income taxes” from current to noncurrent on the consolidated balance sheet as of December 31, 2014. As the Company recorded a valuation allowance against all of the Company’s deferred tax assets as of December 31, 2015 (as described in Note 7), adoption of this standard had no impact on the consolidated balance sheet as of December 31, 2015. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. The Company’s consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. The Company’s oil and natural gas reserves estimates, which are inherently imprecise and based upon many factors that are beyond the Company’s control, including oil and natural gas prices, are prepared by the Company’s engineering staff in accordance with guidelines established by the Securities and Exchange Commission (“SEC”) and then audited for their reasonableness and conformance with SEC guidelines by Netherland, Sewell & Associates, Inc., independent reservoir engineers. Restricted Cash Restricted cash represents a portion of the cash paid for the Loving County System by EnLink (as described in Note 5) directly to a qualified intermediary to facilitate like-kind-exchange transactions for federal income tax purposes as well as cash held by the Company’s less-than-wholly-owned subsidiaries. Not all of the cash deposited with the qualified intermediary was used for like-kind-exchange transactions and, in January 2016, the remaining balance of $42.1 million was returned to the Company by the qualified intermediary to be used for general corporate purposes. By contractual agreement, the cash in the account held by the Company’s less-than-wholly-owned subsidiaries is not to be commingled with other Company cash and is to be used only to fund the capital expenditures and operations of these less-than-wholly-owned subsidiaries. Accounts Receivable The Company sells its operated oil, natural gas and natural gas liquids production to various purchasers (see “ — Revenue Recognition” below). Due to the nature of the markets for oil, natural gas and natural gas liquids, the Company does not believe that the loss of any one purchaser would significantly impact operations. In addition, the Company may participate with industry partners in the drilling, completion and operation of oil and natural gas wells. Substantially all of the Company’s accounts receivable are due from either purchasers of oil, natural gas and natural gas liquids or participants in oil and natural gas wells for which the Company serves as the operator. Accounts receivable are due within 30 to 60 days of the production date and 30 days of the billing date and are stated at amounts due from purchasers and industry partners. Amounts are considered past due if they have been outstanding for 60 days or more. No interest is typically charged on past due amounts. The Company reviews its need for an allowance for doubtful accounts on a periodic basis and determines the allowance, if any, by considering the length of time past due, previous loss history, future net revenues of the debtor’s ownership interest in oil and natural gas properties operated by the Company and the debtor’s ability to pay its obligations, among other things. The Company has no allowance for doubtful accounts related to its accounts receivable for any reporting period presented. Lease and Well Equipment Inventory Lease and well equipment inventory is stated at the lower of cost or market and consists entirely of equipment scheduled for use in future well operations or equipment held for sale. Oil and Natural Gas Properties The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method of accounting, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated in a single cost center representing the Company’s activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, capitalized interest on qualifying projects and general and administrative expenses directly related to acquisition, exploration and development activities, but do not include any costs related to production, selling or general corporate administrative activities. The Company capitalized $6.9 million , $6.4 million and $3.7 million of its general and administrative costs in 2015 , 2014 and 2013 , respectively. The Company capitalized $3.9 million , $2.8 million and $1.9 million of its interest expense for the years ended December 31, 2015, 2014 and 2013 , respectively. Capitalized costs of oil and natural gas properties are amortized using the unit-of-production method based upon production and estimates of proved reserves quantities. Unproved and unevaluated property costs are excluded from the amortization base used to determine depletion. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions. This assessment includes consideration of the following factors, among others: the assignment of proved reserves, geological and geophysical evaluations, intent to drill, remaining lease term and drilling activity and results. Upon impairment, the costs of the unproved and unevaluated properties are immediately included in the amortization base. Exploratory dry holes are included in the amortization base immediately upon determination that the well is not productive. Sales of oil and natural gas properties are accounted for as adjustments to net capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between net capitalized costs and proved reserves of oil and natural gas. All costs related to production activities and maintenance and repairs are expensed as incurred. Significant workovers that increase the properties’ reserves are capitalized. Ceiling Test The net capitalized costs of oil and natural gas properties are limited to the lower of unamortized costs less related deferred income taxes or the cost center “ceiling.” The cost center ceiling is defined as the sum of: (a) the present value, discounted at 10% , of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus (b) unproved and unevaluated property costs not being amortized, plus (c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less (d) income tax effects related to the properties involved. Any excess of the Company’s net capitalized costs above the cost center ceiling as described above is charged to operations as a full-cost ceiling impairment. The fair value of the Company’s derivative instruments is not included in the ceiling test computation as the Company does not designate these instruments as hedge instruments for accounting purposes. The estimated present value of after-tax future net cash flows from proved oil and natural gas reserves is highly dependent upon the quantities of proved reserves, the estimation of which requires substantial judgment. The associated commodity prices and the applicable discount rate used in these estimates are in accordance with guidelines established by the SEC. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost changes in future periods except by contractual arrangements. Future net revenues are calculated using prices that represent the arithmetic averages of the first-day-of-the-month oil and natural gas prices for the previous 12 -month period and a 10% discount factor is used to determine the present value of future net revenues. For the period from January through December 2015 , these average oil and natural gas prices were $46.79 per barrel and $2.59 per MMBtu, respectively. For the period from January through December 2014 , these average oil and natural gas prices were $91.48 per barrel and $4.35 per MMBtu, respectively. For the period from January through December 2013 , these average oil and natural gas prices were $93.42 per barrel and $3.67 per MMBtu, respectively. In estimating the present value of after-tax future net cash flows from proved oil and natural gas reserves, the average oil prices were further adjusted by property for quality, transportation and marketing fees and regional price differentials, and the average natural gas prices were further adjusted by property for energy content, transportation and marketing fees and regional price differentials. For the year ended December 31, 2015, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling. As a result, the Company recorded an impairment charge of $801.2 million , exclusive of tax effect, to its consolidated statement of operations for the year ended December 31, 2015 with the related deferred income tax credit recorded net of a valuation allowance (see Note 7). During the year ended December 31, 2014 , the Company’s net capitalized costs less related deferred income taxes did not exceed the full-cost ceiling. As a result, the Company recorded no impairment to its net capitalized costs during the year ended December 31, 2014 . During the year ended December 31, 2013, the Company recorded an impairment charge of $21.2 million , exclusive of tax effect, to its net capitalized costs. This charge is reflected in the Company’s consolidated statement of operations for the year ended December 31, 2013. As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company’s assets on its consolidated balance sheets, as well as the corresponding shareholders’ equity, but it has no impact on the Company’s net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company’s actual ceiling test computation and impairment analyses in future periods. Other Property and Equipment Other property and equipment are recorded at historical cost. Software, furniture, fixtures and other equipment are depreciated over their useful life ( five to 10 years) using the straight-line method. Midstream support equipment and facilities include the Company’s pipelines, processing facilities and salt water disposal systems and are depreciated over a 30 -year useful life using the straight-line, mid-month convention method. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Maintenance and repair costs that do not extend the useful life of the property or equipment are expensed as incurred. Asset Retirement Obligations The Company recognizes the fair value of an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is recorded as a liability at its estimated present value, with an offsetting increase recognized in oil and natural gas properties or support equipment and facilities on the consolidated balance sheets. Periodic accretion of the discounted value of the estimated liability is recorded as an expense in the consolidated statements of operations. Derivative Financial Instruments From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and natural gas liquids prices. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as either an asset or a liability measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments, and as a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations. The fair value of the Company’s derivative financial instruments is determined using industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Realized gains and realized losses from the settlement of derivative financial instruments and unrealized gains and unrealized losses from valuation changes in the remaining unsettled derivative financial instruments are reported under Revenues in the consolidated statements of operations. See Note 11 for additional information about the Company’s derivative instruments. Revenue Recognition The Company follows the sales method of accounting for its oil, natural gas and natural gas liquids revenues, whereby it recognizes revenue, net of royalties, on all oil, natural gas and natural gas liquids sold to purchasers regardless of whether the sales are proportionate to its ownership in the property. Under this method, revenue is recognized at the time oil, natural gas and natural gas liquids are produced and sold, and the Company accrues for revenue earned but not yet received. For the year ended December 31, 2015 , the Company had three significant purchasers that accounted for approximately 59% of its total oil, natural gas and natural gas liquids revenues. For the years ended December 31, 2014 and 2013 , the Company had three and five significant purchasers that accounted for approximately 68% and 87% , respectively, of its total oil, natural gas and natural gas liquids revenues. Due to the nature of the markets for oil, natural gas and natural gas liquids, the Company does not believe the loss of any one purchaser would have a material adverse impact on the Company’s financial condition, results of operations or cash flows for any significant period of time. At December 31, 2015, 2014 and 2013 , approximately 39% , 44% and 81% , respectively, of the Company’s accounts receivable, including joint interest billings, related to these purchasers. Stock-Based Compensation The Company grants common stock, stock options, restricted stock and restricted stock units to members of its Board of Directors and selected employees. All such awards are measured at fair value on the date of grant and are generally recognized as a component of general and administrative expenses in the accompanying statements of operations on a straight-line basis over the awards’ vesting periods. The Company accounts for all outstanding stock options granted under the 2003 Plan (as described and defined in Note 8) as liability instruments as a result of the Company purchasing shares from certain of its employees to assist them in the exercise of outstanding options of the Company’s common stock. The Company utilizes the Black Scholes Merton option pricing model to measure the fair value of stock options, the closing stock price on the date of grant to measure restricted stock and restricted stock unit awards and the Monte Carlo simulation method to measure the fair value of performance units. The Company’s consolidated statements of operations for the years ended December 31, 2015, 2014 and 2013 include a stock-based compensation (non-cash) expense of $9.5 million , $5.5 million and $3.9 million , respectively. This stock-based compensation expense includes common stock issuances and restricted stock units expense totaling $0.9 million , $0.3 million and $0.3 million in 2015 , 2014 and 2013 , respectively, paid to members of the Board of Directors and advisors as compensation for their services to the Company. Income Taxes The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and records a valuation allowance for the portion of any deferred tax assets when it is more likely than not that the benefit from the deferred tax asset will not be realized. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. At December 31, 2015, 2014 and 2013 , the Company had not established any reserves for, nor recorded any unrecognized tax benefits related to, uncertain tax positions. When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of operations. The Company did not record any interest or penalties related to income tax for the years ended December 31, 2015, 2014 and 2013 . Allocation of Purchase Price in Business Combinations As part of the Company’s business strategy, it periodically pursues the acquisition of oil and natural gas properties. The purchase price in a business combination is allocated to the assets acquired and liabilities assumed based on their fair values as of the acquisition date, which may occur many months after the announcement date. Therefore, while the consideration to be paid may be fixed, the fair value of the assets acquired and liabilities assumed is subject to change during the period between the announcement date and the acquisition date. The most significant estimates in the allocation typically relate to the value assigned to proved oil and natural gas reserves and unproved and unevaluated properties. As the allocation of the purchase price is subject to significant estimates and subjective judgments, the accuracy of this assessment is inherently uncertain. Earnings Per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities, unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators used to compute the Company’s basic and diluted earnings per common share as reported for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share data). Year Ended December 31, 2015 2014 2013 Net (loss) income attributable to Matador Resources Company shareholders — numerator $ (679,785 ) $ 110,771 $ 45,094 Weighted average common shares outstanding — denominator Basic 81,537 70,229 58,777 Dilutive effect of options, restricted stock units and preferred shares — 677 152 Diluted weighted average common shares outstanding 81,537 70,906 58,929 Earnings (loss) per common share attributable to Basic $ (8.34 ) $ 1.58 $ 0.77 Diluted $ (8.34 ) $ 1.56 $ 0.77 A total of 2.4 million options to purchase shares of the Company’s common stock and 0.1 million restricted stock units were excluded from the calculations above for the year ended December 31, 2015 because their effects were anti-dilutive. Additionally, 0.9 million restricted shares, which are participating securities, were excluded from the calculations above for the year ended December 31, 2015 as the security holders do not have the obligation to share in the losses of the Company. Credit Risk The Company’s cash is held in financial institutions and at times these amounts exceed the insurance limits of the Federal Deposit Insurance Corporation. Management believes, however, that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected. The Company uses derivative financial instruments to mitigate its exposure to oil, natural gas and natural gas liquids price volatility. These transactions expose the Company to potential credit risk from its counterparties. The Company manages counterparty credit risk through established internal derivatives policies that are reviewed on an ongoing basis. Additionally, all of the Company’s commodity derivative contracts at December 31, 2015 are with The Bank of Nova Scotia and BMO Harris Financing (Bank of Montreal) (or affiliates thereof), parties that are lenders (or affiliates thereof) under the Company’s Credit Agreement. Accounts receivable constitute the principal component of additional credit risk to which the Company may be exposed. The Company attempts to minimize credit risk exposure to counterparties by monitoring the financial condition and payment history of its purchasers and joint interest partners. Recent Accounting Pronouncements Recognition and Measurement of Financial Assets and Financial Liabilities . In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which changes certain guidance related to the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted for the majority of the update, but is permitted for two of its provisions. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its consolidated financial statements. Revenue from Contracts with Customers . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which specifies how and when to recognize revenue. This standard requires expanded disclosures surrounding revenue recognition and is intended to improve, and converge with international standards, the financial reporting requirements for revenue from contracts with customers. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for one year to fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact, if any, of the adoption of this ASU on its consolidated financial statements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | The following table presents a summary of the Company’s property and equipment balances as of December 31, 2015 and 2014 (in thousands). December 31, 2015 2014 Oil and natural gas properties Evaluated (subject to amortization) $ 2,122,174 $ 1,617,913 Unproved and unevaluated (not subject to amortization) 387,504 264,419 Total oil and natural gas properties 2,509,678 1,882,332 Accumulated depletion (1,574,040 ) (596,218 ) Net oil and natural gas properties 935,638 1,286,114 Other property and equipment Midstream support equipment and facilities 78,564 38,135 Furniture, fixtures and other equipment 2,918 2,633 Software 2,193 1,733 Land 1,539 — Leasehold improvements 1,173 971 Total other property and equipment 86,387 43,472 Accumulated depreciation (9,619 ) (7,514 ) Net other property and equipment 76,768 35,958 Net property and equipment $ 1,012,406 $ 1,322,072 The following table provides a breakdown of the Company’s unproved and unevaluated property costs not subject to amortization as of December 31, 2015 and the year in which these costs were incurred (in thousands). Description 2015 2014 2013 2012 and prior Total Costs incurred for Property acquisition $ 238,436 $ 68,207 $ 41,800 $ 672 $ 349,115 Exploration wells 14,650 30 — — 14,680 Development wells 22,558 1,151 — — 23,709 Total $ 275,644 $ 69,388 $ 41,800 $ 672 $ 387,504 Property acquisition costs primarily include leasehold costs paid to secure oil and natural gas mineral leases, but may also include broker and legal expenses, geological and geophysical expenses and capitalized internal costs associated with developing oil and natural gas prospects on these properties. Property acquisition costs are transferred into the amortization base on an ongoing basis as these properties are evaluated and proved reserves are established or impairment is determined. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions. Property acquisition costs incurred which remain in unproved and unevaluated property at December 31, 2015 are related primarily to the Company’s leasehold acquisitions in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas during the past three years. These costs include, in particular, the cost of the acreage acquired as part of the HEYCO Merger (as described and defined in Note 5) in 2015. These costs are associated with acreage for which proved reserves have yet to be assigned. A significant portion of these costs are associated with properties which are held by production or have automatic lease renewal options. As the Company drills wells and assigns proved reserves to these properties or determines that certain portions of this acreage, if any, cannot be assigned proved reserves, portions of these costs are transferred to the amortization base. Costs excluded from amortization also include those costs associated with exploration and development wells in progress or awaiting completion at year-end. These costs are transferred into the amortization base on an ongoing basis as these wells are completed and proved reserves are established or confirmed. These costs totaled $38.4 million at December 31, 2015 . Of this total, $14.7 million was associated with exploration wells and $23.7 million was associated with development wells. The Company anticipates that most of the $38.4 million associated with these wells in progress at December 31, 2015 will be transferred to the amortization base during 2016 . |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS In general, the Company’s asset retirement obligations relate to future costs associated with plugging and abandonment of its oil and natural gas wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and natural gas, future inflation rates and the Company’s credit-adjusted risk-free interest rate. Revisions to the liability can occur due to changes in these estimates and assumptions or if federal or state regulators enact new plugging and abandonment requirements. At the time of the actual plugging and abandonment of its oil and natural gas wells, the Company includes any gain or loss associated with the operation in the amortization base to the extent the actual costs are different from the estimated liability. The following table summarizes the changes in the Company’s asset retirement obligations for the years ended December 31, 2015 and 2014 (in thousands). Year Ended December 31, 2015 2014 Beginning asset retirement obligations $ 11,951 $ 7,484 Liabilities incurred during period 4,508 2,322 Liabilities settled during period (588 ) (22 ) Revisions in estimated cash flows (1,185 ) 1,663 Accretion expense 734 504 Ending asset retirement obligations 15,420 11,951 Less: current asset retirement obligations (1) (254 ) (311 ) Long-term asset retirement obligations $ 15,166 $ 11,640 __________________ (1) Included in accrued liabilities in the Company’s consolidated balance sheets at December 31, 2015 and 2014 . |
Business Combinations and Dives
Business Combinations and Divestitures (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS AND DIVESTITURES | BUSINESS COMBINATIONS AND DIVESTITURES Business Combinations On February 27, 2015, the Company completed a business combination with Harvey E. Yates Company (“HEYCO”), a subsidiary of HEYCO Energy Group, Inc., through a merger of HEYCO with and into a wholly-owned subsidiary of Matador (the “HEYCO Merger”). In the HEYCO Merger, the Company obtained certain oil and natural gas producing properties and undeveloped acreage located in Lea and Eddy Counties, New Mexico, consisting of approximately 58,600 gross ( 18,200 net) acres strategically located between the Company’s existing acreage in its Ranger and Rustler Breaks prospect areas. HEYCO, headquartered in Roswell, New Mexico, was privately-owned prior to the transaction. As consideration for the business combination, Matador paid approximately $33.6 million in cash and assumed debt obligations and issued 3,300,000 shares of Matador common stock and 150,000 shares of a new series of Matador Series A Convertible Preferred Stock (“Series A Preferred Stock”) to HEYCO Energy Group, Inc. (convertible into ten shares of common stock for each one share of Series A Preferred Stock upon the effectiveness of an amendment to the Company’s Amended and Restated Certificate of Formation to increase the number of authorized shares of common stock; the Series A Preferred Stock converted to common stock on April 6, 2015). Matador incurred an additional $4.5 million for customary purchase price adjustments, including adjusting for production, revenues and operating and capital expenditures from September 1, 2014 to closing. As a result of the HEYCO Merger, Matador incurred deferred tax liabilities of approximately $76.8 million and assumed other liabilities of approximately $4.5 million . The HEYCO Merger was accounted for using the acquisition method under ASC Topic 805, “Business Combinations,” which requires the assets acquired and liabilities assumed to be recorded at fair value as of the respective acquisition date. During the year ended December 31, 2015 , the Company incurred approximately $2.5 million of transaction costs associated with the HEYCO Merger, which were included in “General and administrative” costs in the consolidated statement of operations. The majority of the assets acquired in the HEYCO Merger were in the form of non-producing acreage. The producing wells acquired in the HEYCO Merger did not have a material impact on the Company’s revenues or results of operations for the year ended December 31, 2015 . The preliminary allocation of the consideration given related to this business combination was as follows (in thousands). The Company anticipates that the allocation of the consideration given will be finalized during the first quarter of 2016 upon determination of the final customary purchase price adjustments. Consideration given Allocation Cash $ 26,148 Preferred shares issued 32,490 Common shares issued 71,478 Total consideration given $ 130,116 Allocation of purchase price Cash acquired $ 626 Accounts receivable 3,542 Inventory 180 Other current assets 106 Oil and natural gas properties Evaluated oil and natural gas properties 16,524 Unproved oil and unevaluated natural gas properties 202,310 Other property and equipment 178 Accounts payable (2,034 ) Accrued liabilities (495 ) Current note payable (11,982 ) Asset retirement obligations (2,046 ) Deferred tax liabilities incurred (76,793 ) Net assets acquired $ 130,116 Divestitures On October 1, 2015 , the Company completed the sale of its wholly-owned subsidiary that owned certain natural gas gathering and processing assets in the Delaware Basin in Loving County, Texas (the “Loving County System”) to an affiliate of EnLink Midstream Partners, LP (“EnLink”). The Loving County System included a cryogenic natural gas processing plant with approximately 35 MMcf per day of inlet capacity (the “Processing Plant”) and approximately six miles of high-pressure gathering pipeline which connects the Company’s gathering system to the Processing Plant. Pursuant to the terms of the transaction, EnLink paid approximately $143.4 million and the Company received net proceeds of approximately $139.8 million , after deducting customary purchase price adjustments of approximately $3.6 million . In conjunction with the sale of the Loving County System, the Company dedicated its leasehold interests in Loving County as of the closing date pursuant to a 15 -year fixed-fee natural gas gathering and processing agreement and provided a volume commitment in exchange for priority one service. See Note 13 for more information related to this agreement. Due to the terms of the agreement, the transaction was accounted for as a sale and leaseback transaction; the carrying value of the net assets sold of approximately $31.0 million was removed from the consolidated balance sheet as of December 31, 2015 and the resulting difference of approximately $108.4 million between the net proceeds received less closing costs of $0.4 million and the basis of the assets sold was recorded as deferred gain on plant sale and will be recognized as a gain on asset sales over the 15 -year term of the gathering and processing agreement. As such, the Company recognized a gain on the sale for the year ended December 31, 2015 of $1.1 million in the consolidated statement of operations, with $4.8 million remaining as a current deferred gain, representing the gain expected to be recognized in 2016, and $102.5 million remaining as noncurrent deferred gain on the consolidated balance sheet as of December 31, 2015 . Should certain events occur in the future that cause a redetermination of whether the sale is required to be accounted for as a sale and leaseback transaction, the remaining deferred gain would be recognized prior to the completion of the agreement. Such events could include EnLink’s construction or acquisition of another plant that could process the Company’s natural gas, as permitted by the gathering and processing agreement, or the Company’s determination that future production would not be sufficient to fully utilize the capacity of the plant whereby the Company elects to lower its committed volumes to be processed at the plant. The Company can, at its option, dedicate any future leasehold acquisitions in Loving County to EnLink. In addition, the Company retained its natural gas gathering system up to a central delivery point and its other midstream assets in the area, including oil and water gathering systems and salt water disposal wells. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Agreement On September 28, 2012 , the Company amended and restated its revolving credit agreement with the lenders party thereto (the “Credit Agreement”), which increased the maximum facility amount from $400.0 million to $500.0 million . MRC Energy Company, which is a subsidiary of Matador and directly or indirectly holds the ownership interests in the Company’s other operating subsidiaries, other than its less-than-wholly-owned subsidiaries, is the borrower under the Credit Agreement. Borrowings are secured by mortgages on at least 80% of the Company’s proved oil and natural gas properties and by the equity interests of MRC Energy Company’s wholly-owned subsidiaries, which are also guarantors. In addition, all obligations under the Credit Agreement are guaranteed by Matador, the parent corporation. Various commodity hedging agreements with certain of the lenders under the Credit Agreement (or affiliates thereof) are also secured by the collateral of and guaranteed by certain eligible subsidiaries of MRC Energy Company. The borrowing base under the Credit Agreement is determined semi-annually as of May 1 and November 1 by the lenders based primarily on the estimated value of the Company’s proved oil and natural gas reserves at December 31 and June 30 of each year, respectively. Both the Company and the lenders may request an unscheduled redetermination of the borrowing base once each between scheduled redetermination dates. During the second quarter of 2015 , the lenders completed their review of the Company’s proved oil and natural gas reserves at December 31, 2014 , and as a result, on April 6, 2015 , the Company received notice that the borrowing base would be reaffirmed at $450.0 million and the conforming borrowing base would be reaffirmed at $375.0 million . Pursuant to an amendment to the Credit Agreement entered into concurrently with the issuance of $400.0 million of senior unsecured notes on April 14, 2015 discussed herein, the borrowing base was reduced to the conforming borrowing base of $375.0 million . During October 2015, the lenders completed their review of the Company’s estimated total proved oil and natural gas reserves at June 30, 2015, and as a result the Company amended the Credit Agreement to reaffirm the borrowing base at $375.0 million and extend the maturity date to October 16, 2020. This October 2015 redetermination constituted the regularly scheduled November 1 redetermination. In the event of a borrowing base increase, the Company is required to pay a fee to the lenders equal to a percentage of the amount of the increase, which is determined based on market conditions at the time of the borrowing base increase. Total deferred loan costs were $1.8 million at December 31, 2015 , and these costs are being amortized over the term of the Credit Agreement, which approximates amortization of these costs using the effective interest method. If, upon a redetermination or the automatic reduction of the borrowing base to the conforming borrowing base, the borrowing base were to be less than the outstanding borrowings under the Credit Agreement at any time, the Company would be required to provide additional collateral satisfactory in nature and value to the lenders to increase the borrowing base to an amount sufficient to cover such excess or to repay the deficit in equal installments over a period of six months . At December 31, 2015 , the Company had no borrowings outstanding under the Credit Agreement and approximately $0.6 million in outstanding letters of credit issued pursuant to the Credit Agreement. During the year ended December 31, 2015 using a portion of the net proceeds from the senior unsecured notes offering and public offering of our common stock discussed herein, the Company repaid a total of $465.0 million of its outstanding borrowings under the Credit Agreement. At February 25, 2016 , the Company continued to have no borrowings outstanding under the Credit Agreement and approximately $0.6 million in outstanding letters of credit issued pursuant to the Credit Agreement. Borrowings under the Credit Agreement may be in the form of a base rate loan or a Eurodollar loan. If the Company borrows funds as a base rate loan, such borrowings will bear interest at a rate equal to the higher of (i) the prime rate for such day or (ii) the Federal Funds Effective Rate (as defined in the Credit Agreement) on such day, plus 0.50% or (iii) the daily adjusting LIBOR rate (as defined in the Credit Agreement) plus 1.0% plus, in each case, an amount from 0.50% to 1.50% of such outstanding loan depending on the level of borrowings under the agreement. If the Company borrows funds as a Eurodollar loan, such borrowings will bear interest at a rate equal to (i) the quotient obtained by dividing (A) the LIBOR rate by (B) a percentage equal to 100% minus the maximum rate during such interest calculation period at which Royal Bank of Canada (“RBC”) is required to maintain reserves on Eurocurrency Liabilities (as defined in Regulation D of the Board of Governors of the Federal Reserve System) plus (ii) an amount from 1.50% to 2.50% of such outstanding loan depending on the level of borrowings under the Credit Agreement. The interest period for Eurodollar borrowings may be one, two, three or six months as designated by the Company. A commitment fee of 0.375% to 0.50% , depending on the unused availability under the Credit Agreement, is also paid quarterly in arrears. The Company includes this commitment fee, any amortization of deferred financing costs (including origination, borrowing base increase and amendment fees) and annual agency fees, if any, as interest expense and in its interest rate calculations and related disclosures. The Credit Agreement requires the Company to maintain a debt to EBITDA ratio, which is defined as total debt outstanding divided by a rolling four quarter EBITDA calculation, of 4.25 or less. Subject to certain exceptions, the Credit Agreement contains various covenants that limit the Company’s ability to take certain actions, including, but not limited to, the following: • incur indebtedness or grant liens on any of the Company’s assets; • enter into commodity hedging agreements; • declare or pay dividends, distributions or redemptions; • merge or consolidate; • make any loans or investments; • engage in transactions with affiliates; and • engage in certain asset dispositions, including a sale of all or substantially all of the Company’s assets; and • take certain actions with respect to the Company’s senior unsecured notes. If an event of default exists under the Credit Agreement, the lenders will be able to accelerate the maturity of the borrowings and exercise other rights and remedies. Events of default include, but are not limited to, the following events: • failure to pay any principal or interest on the outstanding borrowings or any reimbursement obligation under any letter of credit when due or any fees or other amounts within certain grace periods; • failure to perform or otherwise comply with the covenants and obligations in the Credit Agreement or other loan documents, subject, in certain instances, to certain grace periods; • bankruptcy or insolvency events involving the Company or its subsidiaries; and • a change of control, as defined in the Credit Agreement. At December 31, 2015 , the Company believes that it was in compliance with the terms of its Credit Agreement. Senior Unsecured Notes On April 14, 2015, Matador issued $400.0 million of 6.875% senior notes due 2023 (the “Original Notes”) in a private placement. The Original Notes are Matador’s senior unsecured obligations, are redeemable as described below and were issued at par value. The net proceeds were used to pay down a portion of the outstanding borrowings under the Credit Agreement and the debt assumed in connection with the HEYCO Merger. The Original Notes mature on April 15, 2023 , and interest is payable semi-annually in arrears on April 15 and October 15 of each year. On October 21, 2015, and pursuant to a registered exchange offer, the Company exchanged all of the privately placed Original Notes for a like principal amount of 6.875% senior notes due 2023 that have been registered under the Securities Act (the “Registered Notes” or the “Notes”). The terms of such Notes are substantially the same as the terms of the Original Notes except that the transfer restrictions, registration rights and provisions for additional interest relating to the Original Notes do not apply to the Notes. On or after April 15, 2018 , Matador may redeem all or a portion of the Notes at any time or from time to time at the following redemption prices (expressed as percentages of the principal amount) plus accrued and unpaid interest, if any, to the applicable redemption date, if redeemed during the twelve month period beginning on April 15 of the years indicated. Year Redemption Price 2018 105.156% 2019 103.438% 2020 101.719% 2021 and thereafter 100.000% At any time prior to April 15, 2018 , Matador may redeem up to 35% of the aggregate principal amount of the Notes with net proceeds from certain equity offerings at a redemption price of 106.875% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to the redemption date; provided that (i) at least 65% in aggregate principal amount of the Notes (including any additional notes) originally issued remains outstanding immediately after the occurrence of such redemption (excluding Notes held by Matador and its subsidiaries) and (ii) each such redemption occurs within 180 days of the date of the closing of the related equity offering. In addition, at any time prior to April 15, 2018 , Matador may redeem all or part of the Notes at a redemption price equal to the sum of (i) the principal amount thereof, plus (ii) the excess, if any, of (a) the present value at such time of (1) the redemption price of such Notes at April 15, 2018 plus (2) any required interest payments due on such Notes through April 15, 2018 discounted to the redemption date on a semi-annual basis using a discount rate equal to the Treasury Rate (as defined in the indenture governing the Notes (the “Indenture”)) plus 50 basis points, over (b) the principal amount of such Notes, plus (iii) accrued and unpaid interest, if any, to the redemption date. Subject to certain exceptions, the Indenture contains various covenants that limit the Company’s ability to take certain actions, including, but not limited to, the following: • incur or guarantee additional debt or issue certain types of preferred stock; • pay dividends on capital stock or redeem, repurchase or retire its capital stock or subordinated indebtedness; • transfer or sell assets; • make certain investments; • create certain liens; • enter into agreements that restrict dividends or other payments from its Restricted Subsidiaries (as defined in the Indenture) to the Company; • consolidate, merge or transfer all or substantially all of its assets; • engage in transactions with affiliates; and • create unrestricted subsidiaries. In the case of an event of default arising from certain events of bankruptcy or insolvency with respect to Matador, any Restricted Subsidiary that is a Significant Subsidiary (as defined in the Indenture) or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, the trustee or the holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Events of default include, but are not limited to, the following events: • default for 30 days in the payment when due of interest on the Notes; • default in the payment when due of the principal of, or premium, if any, on the Notes; • failure by Matador to comply with its obligations to offer to purchase or purchase Notes when required pursuant to the change of control or asset sale provisions of the Indenture or Matador’s failure to comply with the covenant relating to merger, consolidation or sale of assets; • failure by Matador for 180 days after notice to comply with its reporting obligations under the Indenture; • failure by Matador for 60 days after notice to comply with any of the other agreements in the Indenture; • payment defaults and accelerations with respect to other indebtedness of Matador and its Restricted Subsidiaries in the aggregate principal amount of $25.0 million or more; • failure by Matador or any Restricted Subsidiary to pay certain final judgments aggregating in excess of $25.0 million within 60 days; • any subsidiary guarantee by a guarantor ceases to be in full force and effect, is declared null and void in a judicial proceeding or is denied or disaffirmed by its maker; and • certain events of bankruptcy or insolvency with respect to Matador or any Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary. Note Payable In connection with the HEYCO Merger, the Company assumed a note payable to PlainsCapital Bank in the amount of $12.5 million pursuant to which approximately $12.0 million of indebtedness was outstanding. The outstanding indebtedness was repaid on April 14, 2015 using a portion of the net proceeds from the Notes offering, and the related credit agreement and all associated obligations were terminated. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax bases of assets and liabilities. The Company’s net deferred tax position as of December 31, 2015 and 2014 , respectively, is as follows (in thousands). December 31, 2015 2014 Deferred tax assets Net operating loss carryforwards $ 79,208 $ 88,447 Alternative minimum tax carryforward 9,785 7,197 Percentage depletion carryover 2,442 2,068 Property and equipment 42,757 113 Deferred gain on sale leaseback transaction 32,831 — Other 7,396 281 Total deferred tax assets 174,419 98,106 Valuation allowance on deferred tax assets (154,320 ) — Total deferred tax assets, net of valuation allowance 20,099 98,106 Deferred tax liabilities Unrealized gain on derivatives (5,699 ) (20,145 ) Property and equipment — (145,620 ) Other (14,400 ) (5,875 ) Total deferred tax liabilities (20,099 ) (171,640 ) Net deferred tax liabilities $ — $ (73,534 ) The Company reported a net loss for the year ended December 31, 2015 . The Company had an effective tax rate of 36.8% for the year ended December 31, 2014 . Total income tax expense for the year ended December 31, 2014 differed from amounts computed by applying the U.S. federal statutory rates to pre-tax income primarily due to the impact of state income taxes. At December 31, 2015 , the Company had net operating loss carryforwards of $212.5 million for federal income tax purposes and $4.8 million for state income tax purposes available to offset future taxable income, as limited by the applicable provisions, and which expire at various dates beginning December 31, 2027 for the federal net operating loss carryforwards. The state net operating loss carryforwards began expiring at various dates beginning December 31, 2013 for the state of New Mexico; however, the significant portion of the Company’s state net operating loss carryforwards expire beginning in 2027 . As a result of the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeding the full-cost ceiling during the year ended December 31, 2015 , the Company recorded an impairment charge of $801.2 million , exclusive of tax effect, to the net capitalized costs of its oil and natural gas properties. At December 31, 2015 , the Company’s deferred tax assets exceeded its deferred tax liabilities due to the deferred tax assets generated by the impairment charges recorded; as a result, the Company established a valuation allowance of $154.3 million against the Company’s federal and state deferred tax assets. The valuation allowance will continue to be recognized until the realization of future tax benefits are more likely than not to be utilized. No impairment to the net carrying value of the Company’s oil and natural gas properties and no corresponding charge resulting from a full-cost ceiling impairment was recorded during the year ended December 31, 2014 . At March 31, 2013, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling. As a result, the Company recorded an impairment charge of $21.2 million , exclusive of tax effect, to the net capitalized costs of its oil and natural gas properties. This charge is reflected in the Company’s consolidated statement of operations for the year ended December 31, 2013. The income tax expense reconciled to the tax computed at the statutory federal rate for the years ended December 31, 2015, 2014 and 2013 , respectively, is as follows (in thousands). Year Ended December 31, 2015 2014 2013 Current income tax provision State income tax $ 371 $ — $ — Federal alternative minimum tax 2,588 133 404 Net current income tax provision 2,959 133 404 Deferred income tax provision (benefit) Federal tax expense at statutory rate (1) (289,412 ) 61,301 19,177 State income tax (13,215 ) 2,707 431 Permanent differences (2) 698 397 319 Federal alternative minimum tax (2,588 ) (133 ) (404 ) Change in federal valuation allowance 145,777 — (8,885 ) Change in state valuation allowance 8,413 (30 ) (1,345 ) Net deferred income tax (benefit) provision (150,327 ) 64,242 9,293 Total income tax (benefit) provision $ (147,368 ) $ 64,375 $ 9,697 __________________ (1) The statutory federal tax rate was 35% for the years ended December 31, 2015, 2014 and 2013 . (2) Amount is primarily attributable to stock-based compensation. The Company files a United States federal income tax return and several state tax returns, a number of which remain open for examination. The earliest tax year open for examination for the federal, the state of New Mexico and the state of Louisiana tax returns is 2012 . The earliest tax year open for examination by the state of Texas is 2009. During the year ended December 31, 2015 , the Company’s 2009 and 2010 franchise tax returns were under examination by the state of Texas. This examination has been completed with no additional tax due; however, the examination has not been formally closed. In addition, as of December 31, 2015, the Company’s 2013 federal income tax return was under examination by the Internal Revenue Service. This examination is in the preliminary stage and no additional income taxes or refunds of previous tax payments for 2013 had been recorded as a result of this examination at December 31, 2015. The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained by examination. Therefore, at December 31, 2015 , the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | Stock Options, Restricted Stock, Restricted Stock Units, Stock and Performance Awards In 2003, the Company’s Board of Directors and shareholders approved the 2003 Stock and Incentive Plan (the “2003 Plan”). The 2003 Plan, as amended, provided that a maximum of 3,481,569 shares of common stock in the aggregate could be issued pursuant to options or restricted stock grants. The persons eligible to receive awards under the 2003 Plan included employees, directors, contractors or advisors of the Company. In 2012, the Board of Directors adopted and shareholders approved the 2012 Long-Term Incentive Plan (the “2012 Incentive Plan”). The 2012 Incentive Plan provided for a maximum of 4,000,000 shares of common stock in the aggregate that may be issued by the Company pursuant to grants of stock options, restricted stock, stock appreciation rights, restricted stock units or other performance awards. The persons eligible to receive awards under the 2012 Incentive Plan include employees, directors, contractors or advisors of the Company. The 2012 Incentive Plan was amended and restated and approved by the Company’s shareholders at its Annual Meeting of Shareholders on June 10, 2015. Among other things, this amendment increased the maximum number of shares of common stock issuable by the Company pursuant to grants of awards to 8,700,000 . The primary purpose of the 2012 Incentive Plan is to attract and retain key employees, key contractors and outside directors and advisors of the Company. With the adoption of the 2012 Incentive Plan, the Company does not plan to make any future awards under the 2003 Plan, but the 2003 Plan will remain in place until all awards outstanding under that plan have been settled. The 2003 Plan and the 2012 Incentive Plan are administered by the independent members of the Board of Directors, which, upon recommendation of the Nominating, Compensation and Planning Committee, determines the number of options, restricted shares or other awards to be granted, the effective dates, the terms of the grants and the vesting periods. The Company typically uses newly issued shares of common stock to satisfy option exercises or restricted share grants. All stock-based compensation awards granted since 2012 have been granted under the 2012 Incentive Plan and are equity-based awards for which the fair value is fixed at the grant date, while all stock-based compensation awards granted prior to January 1, 2012 were granted under the 2003 Plan and are liability-based awards for which the fair value is remeasured at each reporting period. Stock Options Historically, stock option awards have been granted to purchase the Company’s common stock at an exercise price equal to the fair market value on the date of grant, a typical vesting period of three or four years and a typical maximum term of five or ten years. The fair value of stock option awards outstanding under the 2003 Plan was estimated using the following weighted average assumptions at December 31, 2015, 2014 and 2013 . 2015 2014 2013 Stock option pricing model Black Scholes Merton Black Scholes Merton Black Scholes Merton Expected option life 0.39 years 1.51 years 2.44 years Risk-free interest rate 0.64% 0.74% 0.69% Volatility 91.98% 55.14% 51.51% Dividend yield —% —% —% Estimated forfeiture rate —% —% 0.79% The weighted average grant date fair value for stock option awards outstanding under the 2012 Incentive Plan was estimated using the following weighted average assumptions during the years ended December 31, 2015, 2014 and 2013 . 2015 2014 2013 Stock option pricing model Black Scholes Merton Black Scholes Merton Black Scholes Merton Expected option life 4.00 years 3.99 years 4.00 years Risk-free interest rate 1.15% 1.21% 0.69% Volatility 56.89% 51.47% 58.65% Dividend yield —% —% —% Estimated forfeiture rate 3.21% 4.28% 6.37% Weighted average fair value of stock option awards granted during the year $9.90 $9.45 $3.91 The Company estimated the future volatility of its common stock using the historical value of its peer group for a period of time commensurate with the expected term of the stock option due to the lack of historical trading data available for its common stock. The expected term was estimated using the simplified method outlined in Staff Accounting Bulletin Topic 14. The risk free interest rate is the rate for constant yield U.S. Treasury securities with a term to maturity that is consistent with the expected term of the award. Summarized information about stock options outstanding at December 31, 2015 under the 2003 Plan and the 2012 Incentive Plan is as follows. Number of options (in thousands) Weighted average exercise price Options outstanding at December 31, 2014 1,798 $ 12.47 Options granted 797 $ 22.32 Options exercised (85 ) $ 9.32 Options forfeited (147 ) $ 20.55 Options outstanding at December 31, 2015 2,363 $ 15.40 Options outstanding at December 31, 2015 Options exercisable at December 31, 2015 Range of exercise prices Shares outstanding (in thousands) Weighted average remaining contractual life Weighted average exercise price Shares exercisable (in thousands) Weighted average exercise price $8.18 - $9.90 848 2.31 $ 8.33 432 $ 8.41 $10.39 - $17.80 394 1.35 $ 10.64 197 $ 10.64 $18.77 - $22.66 837 3.95 $ 21.83 5 $ 18.77 $23.40 - $27.33 284 3.26 $ 24.22 — $ — At December 31, 2015 , the aggregate intrinsic value was $13.3 million for outstanding options and $6.7 million for exercisable options, based on the Company’s quoted closing market price of $19.77 per share on that date. The remaining weighted average contractual term of exercisable options at December 31, 2015 was 2.21 years. The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $1.3 million , $0.2 million and $36,000 , respectively. The tax related benefit realized from the exercise of stock options totaled $0.3 million , $0.1 million and zero for the years ended December 31, 2015, 2014 and 2013 , respectively. During the years ended December 31, 2015, 2014 and 2013 , the Company recognized $4.7 million , $2.5 million and $2.2 million , respectively, in stock-based compensation expense attributable to stock options. At December 31, 2015, 2014 and 2013 , the Company had recorded zero , $1.4 million and $1.2 million of long-term liabilities and $1.0 million , zero and $0.1 million of current liabilities, respectively, related to its outstanding liability-based stock options. The Company did not settle any liability-based awards in cash for the years ended December 31, 2015, 2014 and 2013 , respectively. At December 31, 2015 , the total remaining unrecognized compensation expense related to unvested stock options was approximately $8.5 million and the weighted average remaining requisite service period (vesting period) of all unvested stock options was 1.81 years. The fair value of options vested during 2015 , 2014 and 2013 was $1.3 million , $1.5 million and $0.3 million , respectively. Restricted Stock, Restricted Stock Units and Common Stock The Company has granted stock, restricted stock and restricted stock unit awards to employees, outside directors and advisors of the Company under the 2003 Plan and the 2012 Incentive Plan. The stock and restricted stock are issued upon grant, with the restrictions, if any, being removed upon vesting. The restricted stock units are issued upon vesting, unless the recipient makes an election to defer issuance for a term no longer than two years after vesting. No such elections were made with respect to the 2012 restricted stock unit awards; one current director elected to defer the issuance of his awards in 2014 and 2013. All awards granted in 2015, 2014 and 2013 were service based awards and vest over the service period which is one to four years. All restricted stock and restricted stock unit awards outstanding at December 31, 2015 were granted under the 2012 Incentive Plan. Restricted stock awards granted in 2012 included 116,841 shares of performance based restricted stock and 116,841 performance based restricted stock units with a combined weighted average fair value of $13.24 per combined share and unit. These awards vested based on the outcome of the Company’s total shareholder return over a three-year period beginning March 19, 2012 and ending April 15, 2015 as compared to a designated peer group. These awards resulted in the vesting of an aggregate of 96,590 shares of restricted stock in addition to 96,590 restricted stock units. The remaining shares of restricted stock and restricted stock units were forfeited. A summary of the non-vested restricted stock and restricted stock units as of December 31, 2015 is presented below (in thousands, except fair value). Restricted Stock Restricted Stock Units Service Based Performance Based Service Based Performance Based Non-vested restricted stock and restricted stock units Shares Weighted average fair value Shares Weighted average fair value (1) Shares Weighted average fair value Shares Weighted average fair value (1) Non-vested at December 31, 2014 569 $ 14.03 97 $ 13.24 71 $ 16.28 97 $ — Granted 430 $ 22.51 — — 36 $ 24.58 — — Vested (8 ) $ 15.03 (97 ) — (39 ) $ 14.02 (97 ) — Forfeited (137 ) $ 18.08 — — — — — — Non-vested at December 31, 2015 854 $ 17.64 — $ 13.24 68 $ 21.89 — $ — __________________ (1) The fair value of these restricted stock units is reflected in the fair value of the performance based restricted stock, which was estimated based on the most likely outcome of the award as determined by the Monte Carlo method. At December 31, 2015 , the aggregate intrinsic value for the restricted stock and restricted stock units outstanding was $18.2 million as calculated based on the maximum number of shares of restricted stock and restricted stock units vesting, using the stock price on December 31, 2015 . During the years ended December 31, 2015, 2014 and 2013 , the Company recognized approximately $4.7 million , $3.0 million and $1.6 million , respectively, in stock-based compensation expense attributable to restricted stock and restricted stock units. At December 31, 2015 , the total remaining unrecognized compensation expense related to unvested restricted stock and restricted stock units was approximately $10.3 million and the weighted average remaining requisite service period (vesting period) of all non-vested restricted stock and restricted stock units was 1.6 years. The fair value of restricted stock and restricted stock units vested during 2015 , 2014 and 2013 was $0.8 million , $0.9 million and $0.2 million , respectively. The total tax benefit recognized for all stock-based compensation was $3.4 million , $1.9 million and $1.1 million for the years ended December 31, 2015, 2014 and 2013 , respectively. In February 2016 , the Company granted awards of 243,428 shares of restricted stock and options to purchase 608,287 shares of the Company’s common stock at an exercise price of $15.00 per share to certain of its employees. The fair value of these awards was approximately $7.0 million. All of these awards cliff vest in three years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS 401(k) Plan All full-time Company employees are eligible to join the Company’s defined contribution retirement plan the first day of the calendar month immediately following their date of employment. Each employee may contribute up to the maximum allowable under the Internal Revenue Code. Each year, the Company makes a contribution to the plan which equals 3% of the employee’s annual compensation, referred to as the Employer’s Safe Harbor Non-Elective Contribution, which totaled approximately $0.6 million , $0.4 million and $0.2 million in 2015 , 2014 and 2013 , respectively. In addition, each year, the Company may make a discretionary matching contribution, as well as additional contributions. The Company’s discretionary matching contributions totaled $0.8 million , $0.5 million and $0.3 million in 2015 , 2014 and 2013 , respectively. The Company made no additional discretionary contributions in any reporting period presented. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Stock Offerings, Retirement and Issuances As discussed in Note 5, the Company issued 3,300,000 shares of common stock and 150,000 shares of a new series of Series A Preferred Stock to HEYCO Energy Group, Inc. in connection with the HEYCO Merger. Pursuant to the statement of resolutions, each share of Series A Preferred Stock would automatically convert into ten shares of Matador common stock, subject to customary anti-dilution adjustments, upon the vote and approval by Matador’s shareholders of an amendment to Matador’s Amended and Restated Certificate of Formation to increase the number of shares of authorized Matador common stock. On April 2, 2015, the shareholders of the Company approved an amendment to the Company’s Amended and Restated Certificate of Formation that authorized an increase in the number of authorized shares of common stock from 80,000,000 shares to 120,000,000 shares. Following such approval, the 150,000 outstanding shares of Series A Preferred Stock converted to 1,500,000 shares of common stock on April 6, 2015. Pursuant to the terms of the HEYCO Merger, 1,250,000 of the 1,500,000 shares were being held in escrow at December 31, 2015 to satisfy the post-closing adjustments to the merger consideration for title or environmental defects on the properties acquired in the merger. On April 21, 2015, the Company completed a public offering of 7,000,000 shares of its common stock. After deducting offering costs totaling approximately $1.2 million , the Company received net proceeds of approximately $187.6 million . The Company used a portion of the net proceeds to repay $85.0 million in outstanding borrowings under the Credit Agreement (see Note 6), which amounts may be reborrowed in accordance with the terms of that facility. The remaining $102.6 million of net proceeds was used to fund a portion of the Company’s working capital expenditures, including the addition of a third drilling rig in the Delaware Basin in late July 2015 and targeted acquisitions of additional acreage in the Delaware Basin, as well as in the Eagle Ford shale and the Haynesville shale, and for other general working capital needs. On May 29, 2014, the Company completed a public offering of 7,500,000 shares of its common stock. After deducting direct offering costs totaling approximately $0.6 million , the Company received net proceeds of approximately $181.3 million . On September 10, 2013, the Company completed an underwritten public offering of 9,775,000 shares of its common stock, including 1,275,000 shares issued pursuant to the underwriters’ exercise of their option to purchase additional shares. After deducting underwriting discounts, commissions and direct offering costs totaling approximately $7.4 million , the Company received net proceeds of approximately $141.7 million . Treasury Stock On October 30, 2015 and October 31, 2014, Matador’s Board of Directors canceled all of the shares of treasury stock outstanding as of September 30, 2015 and September 30, 2014, respectively. These shares were restored to the status of authorized but unissued shares of common stock of the Company. The 2,586 and 30,967 shares of treasury stock outstanding at December 31, 2015 and December 31, 2014, respectively, and the increase of 105,126 shares in treasury stock outstanding during the year ended December 31, 2013, represent forfeitures of non-vested restricted stock awards and forfeitures of fully vested restricted stock awards due to net share settlements with employees. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and natural gas liquids prices. These instruments typically consist of put and call options in the form of costless collars or swap contracts. The Company records derivative financial instruments on its consolidated balance sheets as either assets or liabilities measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments. As a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations as an unrealized gain or loss. The fair value of the Company’s derivative financial instruments is determined using industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. The Company has evaluated and considered the credit standings of its counterparties in determining the fair value of its derivative financial instruments. The Company has entered into various costless collar contracts to mitigate its exposure to fluctuations in oil and natural gas prices, each with an established price floor and ceiling. For each calculation period, the specified price for determining the realized gain or loss pursuant to any oil contract is the arithmetic average of the settlement prices for the NYMEX West Texas Intermediate oil futures contract for the first nearby month corresponding to the calculation period’s calendar month, and for any natural gas contract is the settlement price for the NYMEX Henry Hub natural gas futures contract for the delivery month corresponding to the calculation period’s calendar month for the settlement date of that contract period. When the settlement price is below the price floor established by one or more of these collars, the Company receives from the counterparty an amount equal to the difference between the settlement price and the price floor multiplied by the contract oil or natural gas volume. When the settlement price is above the price ceiling established by one or more of these collars, the Company pays to the counterparty an amount equal to the difference between the settlement price and the price ceiling multiplied by the contract oil or natural gas volume. At December 31, 2015 , the Company had various costless collar contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling. Each contract is set to expire at varying times during 2016. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at December 31, 2015 . Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (thousands) Commodity Calculation Period Oil 01/01/2016 - 12/31/2016 1,560,000 $ 47.46 $ 74.64 $ 13,083 Natural Gas 01/01/2016 - 12/31/2016 8,400,000 $ 2.75 $ 3.80 3,201 Total open derivative financial instruments $ 16,284 Subsequent to December 31, 2015, the Company entered into various costless collar contracts for oil and natural gas. The costless collar contracts for oil included approximately 600,000 Bbl in 2016 with a weighted average floor price of $35.00 per Bbl and a weighted average ceiling price of $43.23 per Bbl. The Company also entered into costless collar contracts for natural gas, which included approximately 3,300,000 MMBtu in 2016, with a weighted average floor price of $2.25 per MMBtu and a weighted average ceiling price of $2.90 per MMBtu, and approximately 7,200,000 MMBtu in 2017, with a weighted average floor price of $2.25 MMBtu and a weighted average ceiling price of $3.57 MMBtu. These derivative financial instruments are subject to master netting arrangements; all but one counterparty allow for cross-commodity master netting provided the settlements dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its consolidated balance sheets. The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the consolidated balance sheets as of December 31, 2015 and December 31, 2014 (in thousands). Derivative Instruments Gross amounts recognized Gross amounts netted in the consolidated balance sheets Net amounts presented in the consolidated balance sheets December 31, 2015 Current assets $ 16,767 $ (483 ) $ 16,284 Other assets — — — Current liabilities (483 ) 483 — Other liabilities — — — Total $ 16,284 $ — $ 16,284 December 31, 2014 Current assets $ 56,255 $ (706 ) $ 55,549 Other assets — — — Current liabilities (706 ) 706 — Other liabilities — — — Total $ 55,549 $ — $ 55,549 The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Location in Year Ended December 31, Type of Instrument Statement of Operations 2015 2014 2013 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 62,259 $ 5,221 $ (2,408 ) Natural Gas Revenues: Realized gain (loss) on derivatives 12,653 (718 ) 831 Natural Gas Liquids (NGL) Revenues: Realized gain on derivatives 2,182 519 668 Realized gain (loss) on derivatives 77,094 5,022 (909 ) Oil Revenues: Unrealized (loss) gain on derivatives (31,897 ) 47,178 (5,319 ) Natural Gas Revenues: Unrealized (loss) gain on derivatives (5,440 ) 9,087 (1,580 ) Natural Gas Liquids (NGL) Revenues: Unrealized (loss) gain on derivatives (1,928 ) 2,037 (333 ) Unrealized (loss) gain on derivatives (39,265 ) 58,302 (7,232 ) Total $ 37,829 $ 63,324 $ (8,141 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements are classified and disclosed in one of the following categories. Level 1 Unadjusted quoted prices for identical, unrestricted assets or liabilities in active markets. Level 2 Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that are valued with industry standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace. Level 3 Unobservable inputs that are not corroborated by market data which reflect a company’s own market assumptions. Financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. At December 31, 2015 and 2014 , the carrying values reported on the consolidated balance sheets for accounts receivable, prepaid expenses, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners, amounts due to joint ventures, income taxes payable and other current liabilities approximate their fair values due to their short-term maturities. At December 31, 2015 and 2014 , the carrying value of borrowings under the Credit Agreement approximates fair value as it is subject to short-term floating interest rates that reflect market rates available to the Company at the time and is classified at Level 2. At December 31, 2015, the fair value of the Company’s Notes was $381.0 million based on quoted market prices, which represents Level 1 inputs in the fair value hierarchy. The Company had no Notes outstanding at December 31, 2014. The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of December 31, 2015 and 2014 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil and natural gas derivatives $ — $ 16,284 $ — $ 16,284 Total $ — $ 16,284 $ — $ 16,284 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil and natural gas derivatives $ — $ 55,549 $ — $ 55,549 Total $ — $ 55,549 $ — $ 55,549 Additional disclosures related to derivative financial instruments are provided in Note 11. For purposes of fair value measurement, the Company determined that derivative financial instruments (e.g., oil, natural gas and NGL derivatives) should be classified as Level 2 in the fair value hierarchy. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including assets and liabilities acquired in a business combination (see Note 5), lease and well equipment inventory when the market value is determined to be lower than the cost of the inventory and other property and equipment that are reduced to fair value when they are impaired or held for sale. The Company recorded no impairment to its lease and well equipment inventory or other property and equipment in 2015 and 2014 . The Company determined the value of the lease and well equipment inventory using Level 3 inputs and assumptions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Office Lease The Company’s corporate headquarters are located at One Lincoln Centre, 5400 LBJ Freeway, Suite 1500, Dallas, Texas 75240. In June 2015 , the Company entered into the seventh amendment to its office lease agreement. This amendment increased the square footage of its corporate headquarters to approximately 100,000 square feet effective January 1, 2016 . The lease expires during 2026 . The base rate escalates during the course of the lease; however, the Company recognizes rent expense ratably over the term of the lease. From time to time, the Company also enters into leases for field offices in locations where it has active field operations. These leases are typically for terms of less than five years and are not considered principal properties. The following is a schedule of future minimum lease payments required under all office lease agreements as of December 31, 2015 (in thousands). Year Ending December 31, Amount 2016 $ 2,017 2017 2,432 2018 2,488 2019 2,528 2020 2,602 Thereafter 14,995 Total $ 27,062 Rent expense, including fees for operating expenses and consumption of electricity, was $1.7 million , $0.9 million and $0.8 million for 2015 , 2014 and 2013 , respectively. Natural Gas and NGL Processing and Transportation Commitments Effective September 1, 2012 , the Company entered into a firm five -year natural gas processing and transportation agreement whereby the Company committed to transport the anticipated natural gas production from a significant portion of its Eagle Ford acreage in South Texas through the counterparty’s system for processing at the counterparty’s facilities. The agreement also includes firm transportation of the natural gas liquids extracted at the counterparty’s processing plant downstream for fractionation. After processing, the residue natural gas is purchased by the counterparty at the tailgate of its processing plant and further transported under its natural gas transportation agreements. The arrangement contains fixed processing and liquids transportation and fractionation fees, and the revenue the Company receives varies with the quality of natural gas transported to the processing facilities and the contract period. Under this agreement, if the Company does not meet 80% of the maximum thermal quantity transportation and processing commitments in a contract year, it will be required to pay a deficiency fee per MMBtu of natural gas deficiency. Any quantity in excess of the maximum MMBtu delivered in a contract year can be carried over to the next contract year for purposes of calculating the natural gas deficiency. During certain prior periods, the Company had an immaterial natural gas deficiency, and the counterparty to this agreement waived the deficiency fee. The Company paid approximately $5.5 million and $5.8 million in processing and transportation fees under this agreement during the years ended December 31, 2015 and 2014 , respectively. The future undiscounted minimum payments under this agreement as of December 31, 2015 are $1.8 million in 2016 and $1.2 million in 2017. As part of the sale of the Loving County System (see Note 5), the Company entered into a 15-year fixed-fee natural gas gathering and processing agreement whereby the Company committed to deliver the anticipated natural gas production from a significant portion of its Loving County, Texas acreage in West Texas through the counterparty’s gathering system for processing at the counterparty’s facility. Under this agreement, if the Company does not meet the volume commitment for transportation and processing at the facility in a contract year, it will be required to pay a deficiency fee per MMBtu of natural gas deficiency. At the end of each year of the agreement, the Company can elect to have the previous year’s actual transportation and processing volumes be the new minimum commitment for each of the remaining years of the contract. As such, the Company has the ability to unilaterally reduce the transportation and processing commitment if the Company’s production in the Loving County area is less than the Company’s currently projected production. If the Company ceased operations in this area at December 31, 2015 , the total deficiency fee required to be paid would be approximately $9.6 million . In addition, if the Company elects to reduce the transportation and processing commitment in any year, the Company has the ability to elect to increase the committed volumes in any future year to the originally agreed transportation and processing commitment. Any quantity in excess of the volume commitment delivered in a contract year can be carried over to the next contract year for purposes of calculating the natural gas deficiency. The Company paid approximately $1.8 million in processing and transportation fees under this agreement during the year ended December 31, 2015 . The Company can elect to either sell the residue gas to the counterparty at the tailgate of its processing plant or have the counterparty deliver to the Company the residue gas in-kind to be sold to third parties downstream of the plant. Other Commitments The Company does not own or operate its own drilling rigs, but instead enters into contracts with third parties for such drilling rigs. These contracts establish daily rates for the drilling rigs and the term of the Company’s commitment for the drilling services to be provided, which have typically been for one year or less, although the Company has entered into longer-term contracts in order to secure new drilling rigs equipped with the latest technology in plays that were until recently experiencing heavy demand for drilling rigs. The Company would incur a termination obligation if the Company elected to terminate a contract and if the drilling contractor were unable to secure replacement work for the contracted drilling rigs or if the drilling contractor were unable to secure replacement work for the contracted drilling rigs at the same daily rates being charged to the Company prior to the end of their respective contract terms. The Company’s undiscounted minimum outstanding aggregate termination obligations under its drilling rig contracts were approximately $43.5 million at December 31, 2015 . The Company entered into an agreement with a third party for the engineering, procurement, construction and installation of a natural gas processing plant in the Rustler Breaks prospect area in Eddy County, New Mexico in late 2015 . This plant is expected to process a portion of the Company’s natural gas produced from certain of its wells in the Delaware Basin, as well as third-party natural gas once the plant is completed. Total commitments under this contract are $28.5 million and the Company made payments totaling $7.0 million during the year ended December 31, 2015 . The plant is scheduled to be completed and placed in service in the third quarter of 2016. At December 31, 2015 , the Company had outstanding commitments to participate in the drilling and completion of various non-operated wells. If all of these wells are drilled and completed as proposed, the Company’s minimum outstanding aggregate commitments for its participation in these non-operated wells were approximately $5.7 million at December 31, 2015 . The Company expects these costs to be incurred within the next year. Legal Proceedings The Company is a defendant in several lawsuits encountered in the ordinary course of its business. While the ultimate outcome and impact to the Company cannot be predicted with certainty, in the opinion of management, it is remote that these lawsuits will have a material adverse impact on the Company’s financial condition, results of operations or cash flows. |
Supplemental Disclosures
Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Disclosures [Abstract] | |
SUPPLEMENTAL DISCLOSURES | Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at December 31, 2015 and 2014 (in thousands). December 31, 2015 2014 Accrued evaluated and unproved and unevaluated property costs $ 54,586 $ 86,259 Accrued support equipment and facilities costs 17,393 4,290 Accrued lease operating expenses 7,743 9,034 Accrued interest on debt 5,806 206 Accrued asset retirement obligations 254 311 Accrued partners’ share of joint interest charges 4,565 3,767 Other 2,022 3,489 Total accrued liabilities $ 92,369 $ 107,356 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the years ended December 31, 2015, 2014 and 2013 (in thousands). Year Ended December 31, 2015 2014 2013 Cash paid for interest expense, net of amounts capitalized $ 16,154 $ 5,269 $ 5,801 Asset retirement obligations related to mineral properties 2,510 3,843 1,363 Asset retirement obligations related to support equipment and facilities 383 120 3 (Decrease) increase in liabilities for oil and natural gas properties capital expenditures (30,683 ) 32,972 7,458 Increase in liabilities for support equipment and facilities 12,076 4,290 660 Issuance of restricted stock units for Board and advisor services 584 444 274 Issuance of common stock for Board and advisor services 24 16 57 Stock-based compensation expense recognized as liability 79 223 1,012 Transfer of inventory to oil and natural gas properties 615 216 343 |
Subsidiary Guarantors (Notes)
Subsidiary Guarantors (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
SUBSIDIARY GUARANTORS | SUBSIDIARY GUARANTORS Matador filed a registration statement on Form S-3 with the SEC in 2013, which became effective on May 9, 2013, and a registration statement on Form S-3 with the SEC in 2014, which became effective upon filing on May 22, 2014, registering, in each case, among other securities, senior and subordinated debt securities and guarantees of debt securities by certain subsidiaries of Matador (the “Shelf Guarantor Subsidiaries”). On April 14, 2015, the Company issued the Original Notes (see Note 6), which are jointly and severally guaranteed by certain subsidiaries of Matador (the “Notes Guarantor Subsidiaries” and, together with the Shelf Guarantor Subsidiaries, the “Guarantor Subsidiaries”) on a full and unconditional basis (except for customary release provisions). On June 1, 2015, Matador filed a registration statement on Form S-4 with the SEC in connection with the exchange of the Original Notes for the Registered Notes, including guarantees by each of the Notes Guarantor Subsidiaries. The Form S-4 was declared effective by the SEC on September 16, 2015. The Company completed the exchange of all the Original Notes for Registered Notes on October 21, 2015. At December 31, 2015 , the Guarantor Subsidiaries are 100% owned by Matador, and any subsidiaries of Matador other than the Guarantor Subsidiaries are minor. Matador is a parent holding company and has no independent assets or operations, and there are no significant restrictions on the ability of Matador to obtain funds from the Guarantor Subsidiaries by dividend or loan. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | In June 2015, the Company entered into two joint ventures to develop certain leasehold interests held by certain affiliates (the “HEYCO Affiliates”) of HEYCO Energy Group, Inc., the former parent company of HEYCO. The HEYCO Affiliates are owned by George M. Yates, who is a member of the Company’s Board of Directors, and certain of his affiliates. Pursuant to the terms of the transaction, the HEYCO Affiliates contributed an aggregate of approximately 1,900 net acres, primarily in the same properties previously held by HEYCO, to the two newly-formed entities in exchange for a 50% interest in each entity. The Company has agreed to contribute an aggregate of approximately $14 million in exchange for the other 50% interest in both entities. As of December 31, 2015 , the Company had contributed an aggregate of approximately $0.7 million to the two entities. The Company’s contributions will be used to fund future capital expenditures associated with the interests being acquired as well as to fund acquisitions of other non-operated acreage opportunities. Additionally, substantially all of the oil production from the wells acquired in the HEYCO Merger was subject to pre-existing sales contracts with an entity owned by affiliates of HEYCO Energy Group, Inc. The Company recorded revenue of $1.1 million for oil sold pursuant to such contracts for the year ended December 31, 2015 . Such contracts were terminated in the third quarter of 2015. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Matador Resources Company and its wholly-owned and majority-owned subsidiaries. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Accordingly, the Company consolidates certain subsidiaries that are less-than-wholly-owned and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification (“ASC”) 810. The Company proportionately consolidates certain joint ventures that are less-than-wholly-owned and are involved in oil and natural gas exploration. All intercompany balances and transactions have been eliminated in consolidation. The Company has only one reportable operating segment, which is oil and natural gas exploration and production. The Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior years’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations, cash flows or retained earnings. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. The Company’s consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. The Company’s oil and natural gas reserves estimates, which are inherently imprecise and based upon many factors that are beyond the Company’s control, including oil and natural gas prices, are prepared by the Company’s engineering staff in accordance with guidelines established by the Securities and Exchange Commission (“SEC”) and then audited for their reasonableness and conformance with SEC guidelines by Netherland, Sewell & Associates, Inc., independent reservoir engineers. |
Restricted Cash | Restricted Cash Restricted cash represents a portion of the cash paid for the Loving County System by EnLink (as described in Note 5) directly to a qualified intermediary to facilitate like-kind-exchange transactions for federal income tax purposes as well as cash held by the Company’s less-than-wholly-owned subsidiaries. Not all of the cash deposited with the qualified intermediary was used for like-kind-exchange transactions and, in January 2016, the remaining balance of $42.1 million was returned to the Company by the qualified intermediary to be used for general corporate purposes. By contractual agreement, the cash in the account held by the Company’s less-than-wholly-owned subsidiaries is not to be commingled with other Company cash and is to be used only to fund the capital expenditures and operations of these less-than-wholly-owned subsidiaries. |
Accounts Receivable | Accounts Receivable The Company sells its operated oil, natural gas and natural gas liquids production to various purchasers (see “ — Revenue Recognition” below). Due to the nature of the markets for oil, natural gas and natural gas liquids, the Company does not believe that the loss of any one purchaser would significantly impact operations. In addition, the Company may participate with industry partners in the drilling, completion and operation of oil and natural gas wells. Substantially all of the Company’s accounts receivable are due from either purchasers of oil, natural gas and natural gas liquids or participants in oil and natural gas wells for which the Company serves as the operator. Accounts receivable are due within 30 to 60 days of the production date and 30 days of the billing date and are stated at amounts due from purchasers and industry partners. Amounts are considered past due if they have been outstanding for 60 days or more. No interest is typically charged on past due amounts. The Company reviews its need for an allowance for doubtful accounts on a periodic basis and determines the allowance, if any, by considering the length of time past due, previous loss history, future net revenues of the debtor’s ownership interest in oil and natural gas properties operated by the Company and the debtor’s ability to pay its obligations, among other things. The Company has no allowance for doubtful accounts related to its accounts receivable for any reporting period presented. |
Lease and Well Equipment Inventory | Lease and Well Equipment Inventory Lease and well equipment inventory is stated at the lower of cost or market and consists entirely of equipment scheduled for use in future well operations or equipment held for sale. |
Property and Equipment | The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method of accounting, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated in a single cost center representing the Company’s activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, capitalized interest on qualifying projects and general and administrative expenses directly related to acquisition, exploration and development activities, but do not include any costs related to production, selling or general corporate administrative activities. The Company capitalized $6.9 million , $6.4 million and $3.7 million of its general and administrative costs in 2015 , 2014 and 2013 , respectively. The Company capitalized $3.9 million , $2.8 million and $1.9 million of its interest expense for the years ended December 31, 2015, 2014 and 2013 , respectively. Capitalized costs of oil and natural gas properties are amortized using the unit-of-production method based upon production and estimates of proved reserves quantities. Unproved and unevaluated property costs are excluded from the amortization base used to determine depletion. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions. This assessment includes consideration of the following factors, among others: the assignment of proved reserves, geological and geophysical evaluations, intent to drill, remaining lease term and drilling activity and results. Upon impairment, the costs of the unproved and unevaluated properties are immediately included in the amortization base. Exploratory dry holes are included in the amortization base immediately upon determination that the well is not productive. Sales of oil and natural gas properties are accounted for as adjustments to net capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between net capitalized costs and proved reserves of oil and natural gas. All costs related to production activities and maintenance and repairs are expensed as incurred. Significant workovers that increase the properties’ reserves are capitalized. Ceiling Test The net capitalized costs of oil and natural gas properties are limited to the lower of unamortized costs less related deferred income taxes or the cost center “ceiling.” The cost center ceiling is defined as the sum of: (a) the present value, discounted at 10% , of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus (b) unproved and unevaluated property costs not being amortized, plus (c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less (d) income tax effects related to the properties involved. Any excess of the Company’s net capitalized costs above the cost center ceiling as described above is charged to operations as a full-cost ceiling impairment. The fair value of the Company’s derivative instruments is not included in the ceiling test computation as the Company does not designate these instruments as hedge instruments for accounting purposes. The estimated present value of after-tax future net cash flows from proved oil and natural gas reserves is highly dependent upon the quantities of proved reserves, the estimation of which requires substantial judgment. The associated commodity prices and the applicable discount rate used in these estimates are in accordance with guidelines established by the SEC. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost changes in future periods except by contractual arrangements. Future net revenues are calculated using prices that represent the arithmetic averages of the first-day-of-the-month oil and natural gas prices for the previous 12 -month period and a 10% discount factor is used to determine the present value of future net revenues. For the period from January through December 2015 , these average oil and natural gas prices were $46.79 per barrel and $2.59 per MMBtu, respectively. For the period from January through December 2014 , these average oil and natural gas prices were $91.48 per barrel and $4.35 per MMBtu, respectively. For the period from January through December 2013 , these average oil and natural gas prices were $93.42 per barrel and $3.67 per MMBtu, respectively. In estimating the present value of after-tax future net cash flows from proved oil and natural gas reserves, the average oil prices were further adjusted by property for quality, transportation and marketing fees and regional price differentials, and the average natural gas prices were further adjusted by property for energy content, transportation and marketing fees and regional price differentials. For the year ended December 31, 2015, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling. As a result, the Company recorded an impairment charge of $801.2 million , exclusive of tax effect, to its consolidated statement of operations for the year ended December 31, 2015 with the related deferred income tax credit recorded net of a valuation allowance (see Note 7). During the year ended December 31, 2014 , the Company’s net capitalized costs less related deferred income taxes did not exceed the full-cost ceiling. As a result, the Company recorded no impairment to its net capitalized costs during the year ended December 31, 2014 . During the year ended December 31, 2013, the Company recorded an impairment charge of $21.2 million , exclusive of tax effect, to its net capitalized costs. This charge is reflected in the Company’s consolidated statement of operations for the year ended December 31, 2013. As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company’s assets on its consolidated balance sheets, as well as the corresponding shareholders’ equity, but it has no impact on the Company’s net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company’s actual ceiling test computation and impairment analyses in future periods. Other Property and Equipment Other property and equipment are recorded at historical cost. Software, furniture, fixtures and other equipment are depreciated over their useful life ( five to 10 years) using the straight-line method. Midstream support equipment and facilities include the Company’s pipelines, processing facilities and salt water disposal systems and are depreciated over a 30 -year useful life using the straight-line, mid-month convention method. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. |
Asset Retirement Obligations | Asset Retirement Obligations The Company recognizes the fair value of an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is recorded as a liability at its estimated present value, with an offsetting increase recognized in oil and natural gas properties or support equipment and facilities on the consolidated balance sheets. Periodic accretion of the discounted value of the estimated liability is recorded as an expense in the consolidated statements of operations. |
Derivative Financial Instruments | Derivative Financial Instruments From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and natural gas liquids prices. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as either an asset or a liability measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments, and as a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations. The fair value of the Company’s derivative financial instruments is determined using industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Realized gains and realized losses from the settlement of derivative financial instruments and unrealized gains and unrealized losses from valuation changes in the remaining unsettled derivative financial instruments are reported under Revenues in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition The Company follows the sales method of accounting for its oil, natural gas and natural gas liquids revenues, whereby it recognizes revenue, net of royalties, on all oil, natural gas and natural gas liquids sold to purchasers regardless of whether the sales are proportionate to its ownership in the property. Under this method, revenue is recognized at the time oil, natural gas and natural gas liquids are produced and sold, and the Company accrues for revenue earned but not yet received. |
Stock-Based Compensation | Stock-Based Compensation |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and records a valuation allowance for the portion of any deferred tax assets when it is more likely than not that the benefit from the deferred tax asset will not be realized. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. At December 31, 2015, 2014 and 2013 , the Company had not established any reserves for, nor recorded any unrecognized tax benefits related to, uncertain tax positions. When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of operations. |
Earnings Per Common Share | Earnings Per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities, unless their impact is anti-dilutive. |
Credit Risk | Credit Risk The Company’s cash is held in financial institutions and at times these amounts exceed the insurance limits of the Federal Deposit Insurance Corporation. Management believes, however, that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected. The Company uses derivative financial instruments to mitigate its exposure to oil, natural gas and natural gas liquids price volatility. These transactions expose the Company to potential credit risk from its counterparties. The Company manages counterparty credit risk through established internal derivatives policies that are reviewed on an ongoing basis. Additionally, all of the Company’s commodity derivative contracts at December 31, 2015 are with The Bank of Nova Scotia and BMO Harris Financing (Bank of Montreal) (or affiliates thereof), parties that are lenders (or affiliates thereof) under the Company’s Credit Agreement. Accounts receivable constitute the principal component of additional credit risk to which the Company may be exposed. The Company attempts to minimize credit risk exposure to counterparties by monitoring the financial condition and payment history of its purchasers and joint interest partners. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recognition and Measurement of Financial Assets and Financial Liabilities . In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which changes certain guidance related to the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted for the majority of the update, but is permitted for two of its provisions. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its consolidated financial statements. Revenue from Contracts with Customers . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which specifies how and when to recognize revenue. This standard requires expanded disclosures surrounding revenue recognition and is intended to improve, and converge with international standards, the financial reporting requirements for revenue from contracts with customers. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of ASU 2014-09 for one year to fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact, if any, of the adoption of this ASU on its consolidated financial statements. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Change in Accounting Principles The Company adopted Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest (Subtopic 935-30): Simplifying the Presentation of Debt Issuance Costs , effective June 30, 2015. This standard requires companies that have historically presented debt issuance costs as an asset to present those costs as a direct deduction from the carrying amount of the underlying debt liability. To the extent that there are no borrowings under the Credit Agreement (as defined in Note 6), the related deferred loan costs will continue to be classified as an asset. The guidance required retrospective application in the financial statements. As such, the Company reclassified $1.8 million at December 31, 2014 related to deferred loan costs for the Credit Agreement which had previously been presented in “Prepaid expenses and other assets.” As the Company had no borrowings outstanding under the Credit Agreement at December 31, 2015 , approximately $1.8 million of deferred loan costs related to the Credit Agreement are included in “Prepaid expenses and other assets.” The Company’s senior unsecured notes are presented net of approximately $8.7 million of deferred loan costs at December 31, 2015 . The Company had no senior unsecured notes outstanding at December 31, 2014 . |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Reconciliations of basic and diluted distributed and undistributed earnings (loss) per common share | The following are reconciliations of the numerators and denominators used to compute the Company’s basic and diluted earnings per common share as reported for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share data). Year Ended December 31, 2015 2014 2013 Net (loss) income attributable to Matador Resources Company shareholders — numerator $ (679,785 ) $ 110,771 $ 45,094 Weighted average common shares outstanding — denominator Basic 81,537 70,229 58,777 Dilutive effect of options, restricted stock units and preferred shares — 677 152 Diluted weighted average common shares outstanding 81,537 70,906 58,929 Earnings (loss) per common share attributable to Basic $ (8.34 ) $ 1.58 $ 0.77 Diluted $ (8.34 ) $ 1.56 $ 0.77 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of the Company's property and equipment | The following table presents a summary of the Company’s property and equipment balances as of December 31, 2015 and 2014 (in thousands). December 31, 2015 2014 Oil and natural gas properties Evaluated (subject to amortization) $ 2,122,174 $ 1,617,913 Unproved and unevaluated (not subject to amortization) 387,504 264,419 Total oil and natural gas properties 2,509,678 1,882,332 Accumulated depletion (1,574,040 ) (596,218 ) Net oil and natural gas properties 935,638 1,286,114 Other property and equipment Midstream support equipment and facilities 78,564 38,135 Furniture, fixtures and other equipment 2,918 2,633 Software 2,193 1,733 Land 1,539 — Leasehold improvements 1,173 971 Total other property and equipment 86,387 43,472 Accumulated depreciation (9,619 ) (7,514 ) Net other property and equipment 76,768 35,958 Net property and equipment $ 1,012,406 $ 1,322,072 |
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | The following table provides a breakdown of the Company’s unproved and unevaluated property costs not subject to amortization as of December 31, 2015 and the year in which these costs were incurred (in thousands). Description 2015 2014 2013 2012 and prior Total Costs incurred for Property acquisition $ 238,436 $ 68,207 $ 41,800 $ 672 $ 349,115 Exploration wells 14,650 30 — — 14,680 Development wells 22,558 1,151 — — 23,709 Total $ 275,644 $ 69,388 $ 41,800 $ 672 $ 387,504 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in Company's asset retirement obligations | The following table summarizes the changes in the Company’s asset retirement obligations for the years ended December 31, 2015 and 2014 (in thousands). Year Ended December 31, 2015 2014 Beginning asset retirement obligations $ 11,951 $ 7,484 Liabilities incurred during period 4,508 2,322 Liabilities settled during period (588 ) (22 ) Revisions in estimated cash flows (1,185 ) 1,663 Accretion expense 734 504 Ending asset retirement obligations 15,420 11,951 Less: current asset retirement obligations (1) (254 ) (311 ) Long-term asset retirement obligations $ 15,166 $ 11,640 __________________ (1) Included in accrued liabilities in the Company’s consolidated balance sheets at December 31, 2015 and 2014 . |
Business Combinations and Div27
Business Combinations and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the consideration given related to this business combination was as follows (in thousands). The Company anticipates that the allocation of the consideration given will be finalized during the first quarter of 2016 upon determination of the final customary purchase price adjustments. Consideration given Allocation Cash $ 26,148 Preferred shares issued 32,490 Common shares issued 71,478 Total consideration given $ 130,116 Allocation of purchase price Cash acquired $ 626 Accounts receivable 3,542 Inventory 180 Other current assets 106 Oil and natural gas properties Evaluated oil and natural gas properties 16,524 Unproved oil and unevaluated natural gas properties 202,310 Other property and equipment 178 Accounts payable (2,034 ) Accrued liabilities (495 ) Current note payable (11,982 ) Asset retirement obligations (2,046 ) Deferred tax liabilities incurred (76,793 ) Net assets acquired $ 130,116 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of net deferred tax position | The Company’s net deferred tax position as of December 31, 2015 and 2014 , respectively, is as follows (in thousands). December 31, 2015 2014 Deferred tax assets Net operating loss carryforwards $ 79,208 $ 88,447 Alternative minimum tax carryforward 9,785 7,197 Percentage depletion carryover 2,442 2,068 Property and equipment 42,757 113 Deferred gain on sale leaseback transaction 32,831 — Other 7,396 281 Total deferred tax assets 174,419 98,106 Valuation allowance on deferred tax assets (154,320 ) — Total deferred tax assets, net of valuation allowance 20,099 98,106 Deferred tax liabilities Unrealized gain on derivatives (5,699 ) (20,145 ) Property and equipment — (145,620 ) Other (14,400 ) (5,875 ) Total deferred tax liabilities (20,099 ) (171,640 ) Net deferred tax liabilities $ — $ (73,534 ) |
Income tax expense reconciled to the tax computed at the statutory federal rate | The income tax expense reconciled to the tax computed at the statutory federal rate for the years ended December 31, 2015, 2014 and 2013 , respectively, is as follows (in thousands). Year Ended December 31, 2015 2014 2013 Current income tax provision State income tax $ 371 $ — $ — Federal alternative minimum tax 2,588 133 404 Net current income tax provision 2,959 133 404 Deferred income tax provision (benefit) Federal tax expense at statutory rate (1) (289,412 ) 61,301 19,177 State income tax (13,215 ) 2,707 431 Permanent differences (2) 698 397 319 Federal alternative minimum tax (2,588 ) (133 ) (404 ) Change in federal valuation allowance 145,777 — (8,885 ) Change in state valuation allowance 8,413 (30 ) (1,345 ) Net deferred income tax (benefit) provision (150,327 ) 64,242 9,293 Total income tax (benefit) provision $ (147,368 ) $ 64,375 $ 9,697 __________________ (1) The statutory federal tax rate was 35% for the years ended December 31, 2015, 2014 and 2013 . (2) Amount is primarily attributable to stock-based compensation. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summarized information about stock options outstanding | Summarized information about stock options outstanding at December 31, 2015 under the 2003 Plan and the 2012 Incentive Plan is as follows. Number of options (in thousands) Weighted average exercise price Options outstanding at December 31, 2014 1,798 $ 12.47 Options granted 797 $ 22.32 Options exercised (85 ) $ 9.32 Options forfeited (147 ) $ 20.55 Options outstanding at December 31, 2015 2,363 $ 15.40 |
Summarized information about outstanding and exercisable stock option | Options outstanding at December 31, 2015 Options exercisable at December 31, 2015 Range of exercise prices Shares outstanding (in thousands) Weighted average remaining contractual life Weighted average exercise price Shares exercisable (in thousands) Weighted average exercise price $8.18 - $9.90 848 2.31 $ 8.33 432 $ 8.41 $10.39 - $17.80 394 1.35 $ 10.64 197 $ 10.64 $18.77 - $22.66 837 3.95 $ 21.83 5 $ 18.77 $23.40 - $27.33 284 3.26 $ 24.22 — $ — |
Summary of the non-vested restricted stock and restricted stock units | A summary of the non-vested restricted stock and restricted stock units as of December 31, 2015 is presented below (in thousands, except fair value). Restricted Stock Restricted Stock Units Service Based Performance Based Service Based Performance Based Non-vested restricted stock and restricted stock units Shares Weighted average fair value Shares Weighted average fair value (1) Shares Weighted average fair value Shares Weighted average fair value (1) Non-vested at December 31, 2014 569 $ 14.03 97 $ 13.24 71 $ 16.28 97 $ — Granted 430 $ 22.51 — — 36 $ 24.58 — — Vested (8 ) $ 15.03 (97 ) — (39 ) $ 14.02 (97 ) — Forfeited (137 ) $ 18.08 — — — — — — Non-vested at December 31, 2015 854 $ 17.64 — $ 13.24 68 $ 21.89 — $ — __________________ (1) The fair value of these restricted stock units is reflected in the fair value of the performance based restricted stock, which was estimated based on the most likely outcome of the award as determined by the Monte Carlo method. |
2003 Stock and Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | The fair value of stock option awards outstanding under the 2003 Plan was estimated using the following weighted average assumptions at December 31, 2015, 2014 and 2013 . 2015 2014 2013 Stock option pricing model Black Scholes Merton Black Scholes Merton Black Scholes Merton Expected option life 0.39 years 1.51 years 2.44 years Risk-free interest rate 0.64% 0.74% 0.69% Volatility 91.98% 55.14% 51.51% Dividend yield —% —% —% Estimated forfeiture rate —% —% 0.79% |
2012 Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | The weighted average grant date fair value for stock option awards outstanding under the 2012 Incentive Plan was estimated using the following weighted average assumptions during the years ended December 31, 2015, 2014 and 2013 . 2015 2014 2013 Stock option pricing model Black Scholes Merton Black Scholes Merton Black Scholes Merton Expected option life 4.00 years 3.99 years 4.00 years Risk-free interest rate 1.15% 1.21% 0.69% Volatility 56.89% 51.47% 58.65% Dividend yield —% —% —% Estimated forfeiture rate 3.21% 4.28% 6.37% Weighted average fair value of stock option awards granted during the year $9.90 $9.45 $3.91 |
Derivative Financial Instrume30
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of contracts for oil and natural gas | The following is a summary of the Company’s open costless collar contracts for oil and natural gas at December 31, 2015 . Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (thousands) Commodity Calculation Period Oil 01/01/2016 - 12/31/2016 1,560,000 $ 47.46 $ 74.64 $ 13,083 Natural Gas 01/01/2016 - 12/31/2016 8,400,000 $ 2.75 $ 3.80 3,201 Total open derivative financial instruments $ 16,284 |
Summary of offsetting assets | The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the consolidated balance sheets as of December 31, 2015 and December 31, 2014 (in thousands). Derivative Instruments Gross amounts recognized Gross amounts netted in the consolidated balance sheets Net amounts presented in the consolidated balance sheets December 31, 2015 Current assets $ 16,767 $ (483 ) $ 16,284 Other assets — — — Current liabilities (483 ) 483 — Other liabilities — — — Total $ 16,284 $ — $ 16,284 December 31, 2014 Current assets $ 56,255 $ (706 ) $ 55,549 Other assets — — — Current liabilities (706 ) 706 — Other liabilities — — — Total $ 55,549 $ — $ 55,549 |
Summary of offsetting liabilities | Derivative Instruments Gross amounts recognized Gross amounts netted in the consolidated balance sheets Net amounts presented in the consolidated balance sheets December 31, 2015 Current assets $ 16,767 $ (483 ) $ 16,284 Other assets — — — Current liabilities (483 ) 483 — Other liabilities — — — Total $ 16,284 $ — $ 16,284 December 31, 2014 Current assets $ 56,255 $ (706 ) $ 55,549 Other assets — — — Current liabilities (706 ) 706 — Other liabilities — — — Total $ 55,549 $ — $ 55,549 |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Location in Year Ended December 31, Type of Instrument Statement of Operations 2015 2014 2013 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 62,259 $ 5,221 $ (2,408 ) Natural Gas Revenues: Realized gain (loss) on derivatives 12,653 (718 ) 831 Natural Gas Liquids (NGL) Revenues: Realized gain on derivatives 2,182 519 668 Realized gain (loss) on derivatives 77,094 5,022 (909 ) Oil Revenues: Unrealized (loss) gain on derivatives (31,897 ) 47,178 (5,319 ) Natural Gas Revenues: Unrealized (loss) gain on derivatives (5,440 ) 9,087 (1,580 ) Natural Gas Liquids (NGL) Revenues: Unrealized (loss) gain on derivatives (1,928 ) 2,037 (333 ) Unrealized (loss) gain on derivatives (39,265 ) 58,302 (7,232 ) Total $ 37,829 $ 63,324 $ (8,141 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of the valuation of the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis | The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of December 31, 2015 and 2014 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil and natural gas derivatives $ — $ 16,284 $ — $ 16,284 Total $ — $ 16,284 $ — $ 16,284 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil and natural gas derivatives $ — $ 55,549 $ — $ 55,549 Total $ — $ 55,549 $ — $ 55,549 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments required under the office lease agreement | The following is a schedule of future minimum lease payments required under all office lease agreements as of December 31, 2015 (in thousands). Year Ending December 31, Amount 2016 $ 2,017 2017 2,432 2018 2,488 2019 2,528 2020 2,602 Thereafter 14,995 Total $ 27,062 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Disclosures [Abstract] | |
Summary of current accrued liabilities | The following table summarizes the Company’s current accrued liabilities at December 31, 2015 and 2014 (in thousands). December 31, 2015 2014 Accrued evaluated and unproved and unevaluated property costs $ 54,586 $ 86,259 Accrued support equipment and facilities costs 17,393 4,290 Accrued lease operating expenses 7,743 9,034 Accrued interest on debt 5,806 206 Accrued asset retirement obligations 254 311 Accrued partners’ share of joint interest charges 4,565 3,767 Other 2,022 3,489 Total accrued liabilities $ 92,369 $ 107,356 |
Supplemental disclosures of cash flow information | The following table provides supplemental disclosures of cash flow information for the years ended December 31, 2015, 2014 and 2013 (in thousands). Year Ended December 31, 2015 2014 2013 Cash paid for interest expense, net of amounts capitalized $ 16,154 $ 5,269 $ 5,801 Asset retirement obligations related to mineral properties 2,510 3,843 1,363 Asset retirement obligations related to support equipment and facilities 383 120 3 (Decrease) increase in liabilities for oil and natural gas properties capital expenditures (30,683 ) 32,972 7,458 Increase in liabilities for support equipment and facilities 12,076 4,290 660 Issuance of restricted stock units for Board and advisor services 584 444 274 Issuance of common stock for Board and advisor services 24 16 57 Stock-based compensation expense recognized as liability 79 223 1,012 Transfer of inventory to oil and natural gas properties 615 216 343 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)$ / MMBTU | Dec. 31, 2015USD ($)$ / bbl | Dec. 31, 2015USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)Purchasers | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)$ / MMBTU | Dec. 31, 2014USD ($)$ / bbl | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($)Purchasers | Dec. 31, 2014USD ($) | Dec. 31, 2013$ / MMBTU | Dec. 31, 2013$ / bbl | Dec. 31, 2013 | Dec. 31, 2013Purchasers | Dec. 31, 2013USD ($) | Feb. 25, 2016USD ($) | Jan. 31, 2016USD ($) | Apr. 14, 2015USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Number of operating segments | segment | 1 | ||||||||||||||||||||
Amount reclassified related to deferred loan costs | $ 1,800,000 | ||||||||||||||||||||
Borrowings under Credit Agreement | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 338,199,000 | $ 338,199,000 | $ 338,199,000 | $ 338,199,000 | 338,199,000 | |||||||||
Senior unsecured notes payable | 391,254,000 | 391,254,000 | 391,254,000 | 391,254,000 | 391,254,000 | 391,254,000 | 391,254,000 | 0 | 0 | 0 | 0 | 0 | |||||||||
Deferred income tax reclassification | 19,800,000 | 19,800,000 | 19,800,000 | 19,800,000 | 19,800,000 | ||||||||||||||||
Restricted cash | $ 44,357,000 | 44,357,000 | 44,357,000 | 44,357,000 | 44,357,000 | 44,357,000 | 44,357,000 | $ 609,000 | $ 609,000 | $ 609,000 | $ 609,000 | 609,000 | |||||||||
Billing date | 30 days | ||||||||||||||||||||
Outstanding days of account receivable | 60 days | ||||||||||||||||||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | 0 | ||||||||||||||
Capitalized general and administrative costs | 6,900,000 | 6,400,000 | $ 3,700,000 | ||||||||||||||||||
Capitalized interest expense | 3,900,000 | 2,800,000 | 1,900,000 | ||||||||||||||||||
Present value discounted percent of future net revenues of proved oil and natural gas reserves | 10.00% | ||||||||||||||||||||
Average oil and natural gas prices | 2.59 | 46.79 | 4.35 | 91.48 | 3.67 | 93.42 | |||||||||||||||
Net capitalized costs less related deferred income taxes exceeded the full-cost ceiling | 0 | ||||||||||||||||||||
Impairment charge of net capitalized costs | $ 21,200,000 | 801,166,000 | 0 | 21,229,000 | |||||||||||||||||
Number of purchasers | Purchasers | 3 | 3 | 5 | ||||||||||||||||||
Stock-based compensation (non-cash) expense | 9,450,000 | 5,524,000 | 3,897,000 | ||||||||||||||||||
Common stock and restricted stock unit expense | 900,000 | 300,000 | 300,000 | ||||||||||||||||||
Percentage being realized up on ultimate settlement | 50.00% | ||||||||||||||||||||
Machinery and Equipment [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Useful life using the straight-line | 30 years | ||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Accounts receivable due period | 60 days | ||||||||||||||||||||
Useful life | 10 years | ||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Accounts receivable due period | 30 days | ||||||||||||||||||||
Useful life | 5 years | ||||||||||||||||||||
Accounts Receivable [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Concentration risk, percentage | 39.00% | 44.00% | 81.00% | ||||||||||||||||||
Sales Revenue, Goods, Net [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Concentration risk, percentage | 59.00% | 68.00% | 87.00% | ||||||||||||||||||
Stock options [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Stock-based compensation (non-cash) expense | 4,700,000 | 2,500,000 | $ 2,200,000 | ||||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Deferred loan costs | $ 1,800,000 | $ 1,800,000 | $ 1,800,000 | 1,800,000 | $ 1,800,000 | $ 1,800,000 | 1,800,000 | ||||||||||||||
Senior Unsecured Notes [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Deferred loan costs | $ 8,700,000 | $ 8,700,000 | $ 8,700,000 | $ 8,700,000 | $ 8,700,000 | $ 8,700,000 | $ 8,700,000 | ||||||||||||||
Senior Notes Due 2023 [Member] | Unsecured Debt [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Senior unsecured notes payable | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 400,000,000 | |||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Borrowings under Credit Agreement | $ 0 | ||||||||||||||||||||
Restricted cash | $ 42,100,000 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net (loss) income attributable to Matador Resources Company shareholders — numerator | $ (679,785) | $ 110,771 | $ 45,094 |
Weighted average common shares outstanding — denominator | |||
Weighted average common shares outstanding for basic earnings (loss) per share | 81,537,000 | 70,229,000 | 58,777,000 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 677,000 | 152,000 |
Diluted weighted average common shares outstanding | 81,537,000 | 70,906,000 | 58,929,000 |
Earnings (loss) per common share | |||
Basic (usd per share) | $ (8.34) | $ 1.58 | $ 0.77 |
Diluted (usd per share) | $ (8.34) | $ 1.56 | $ 0.77 |
Stock options [Member] | |||
Earnings (loss) per common share | |||
Total (usd per share) | 2,362,861 | ||
Restricted Stock Units (RSUs) [Member] | |||
Earnings (loss) per common share | |||
Total (usd per share) | 73,923 | ||
Restricted stock [Member] | |||
Earnings (loss) per common share | |||
Total (usd per share) | 854,238 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Oil and natural gas properties | ||
Evaluated (subject to amortization) | $ 2,122,174 | $ 1,617,913 |
Total unproved and unevaluated | 387,504 | 264,419 |
Total oil and natural gas properties | 2,509,678 | 1,882,332 |
Accumulated depletion | (1,574,040) | (596,218) |
Net oil and natural gas properties | 935,638 | 1,286,114 |
Other property and equipment | ||
Other property and equipment | 86,387 | 43,472 |
Accumulated depreciation | (9,619) | (7,514) |
Net other property and equipment | 76,768 | 35,958 |
Net property and equipment | 1,012,406 | 1,322,072 |
Midstream support equipment and facilities | ||
Other property and equipment | ||
Other property and equipment | 78,564 | 38,135 |
Furniture, fixtures and other equipment | ||
Other property and equipment | ||
Other property and equipment | 2,918 | 2,633 |
Software | ||
Other property and equipment | ||
Other property and equipment | 2,193 | 1,733 |
Land | ||
Other property and equipment | ||
Other property and equipment | 1,539 | 0 |
Leasehold improvements | ||
Other property and equipment | ||
Other property and equipment | $ 1,173 | $ 971 |
Property and Equipment (Detai37
Property and Equipment (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ||||
Total unproved and unevaluated | $ 387,504 | $ 264,419 | ||
2,015 | ||||
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ||||
Costs incurred for Property acquisition | 238,436 | |||
Exploration wells | 14,650 | |||
Amount for development wells | 22,558 | |||
Total unproved and unevaluated | 275,644 | |||
2,014 | ||||
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ||||
Costs incurred for Property acquisition | 68,207 | |||
Exploration wells | 30 | |||
Amount for development wells | 1,151 | |||
Total unproved and unevaluated | $ 69,388 | |||
2,013 | ||||
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ||||
Costs incurred for Property acquisition | $ 41,800 | |||
Exploration wells | 0 | |||
Amount for development wells | 0 | |||
Total unproved and unevaluated | $ 41,800 | |||
2012 and prior | ||||
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ||||
Costs incurred for Property acquisition | $ 672 | |||
Exploration wells | 0 | |||
Amount for development wells | 0 | |||
Total unproved and unevaluated | $ 672 | |||
Total | ||||
Breakdown of the Company's unproved and unevaluated property costs not subject to amortization | ||||
Costs incurred for Property acquisition | 349,115 | |||
Exploration wells | 14,680 | |||
Amount for development wells | 23,709 | |||
Total unproved and unevaluated | $ 387,504 |
Property and Equipment (Detai38
Property and Equipment (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | |
Amortization costs | $ 38.4 |
Anticipated amount for wells | 38.4 |
Exploratory Wells [Member] | |
Property, Plant and Equipment [Line Items] | |
Amortization costs | 14.7 |
Development Wells [Member] | |
Property, Plant and Equipment [Line Items] | |
Amount for development wells | $ 23.7 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in the Company's asset retirement obligations | ||||
Beginning asset retirement obligations | $ 11,951 | $ 7,484 | ||
Liabilities incurred during period | 4,508 | 2,322 | ||
Liabilities settled during period | (588) | (22) | ||
Revisions in estimated cash flows | (1,185) | 1,663 | ||
Accretion expense | 734 | 504 | ||
Ending asset retirement obligations | $ 11,951 | $ 7,484 | $ 15,420 | $ 11,951 |
Less: current asset retirement obligations | (254) | (311) | ||
Long-term asset retirement obligations | $ 15,166 | $ 11,640 |
Business Combinations and Div40
Business Combinations and Divestitures (Details) $ in Thousands | Oct. 01, 2015USD ($) | Feb. 27, 2015USD ($)ashares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Allocation of purchase price | ||||
Current note payable | $ (12,500) | |||
Carrying value of net assets sold | $ 31,000 | |||
Sale leaseback transaction, transaction costs | 400 | |||
Sale leaseback transaction, current period gain recognized | 1,100 | |||
Deferred gain on sale of property, current | 4,830 | $ 0 | ||
Deferred gain on sale of property, non-current | 102,506 | $ 0 | ||
Harvey E Yates Company [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of gross acres in acreage acquired | a | 58,600 | |||
Number of net acres in acreage acquired | a | 18,200 | |||
Business combination, consideration transferred, liabilities incurred | $ 33,600 | |||
Shares issued upon conversion | shares | 10 | |||
Purchase price adjustments for production, revenues and operating and capital expenditures | $ 4,500 | |||
Liabilities assumed | 4,500 | |||
Transaction costs | 2,500 | |||
Consideration given | ||||
Cash | 26,148 | |||
Total consideration given | 130,116 | |||
Allocation of purchase price | ||||
Cash acquired | 626 | |||
Accounts receivable | 3,542 | |||
Inventory | 180 | |||
Other current assets | 106 | |||
Evaluated oil and natural gas properties | 16,524 | |||
Unproved oil and unevaluated natural gas properties | 202,310 | |||
Other property and equipment | 178 | |||
Accounts payable | (2,034) | |||
Accrued liabilities | (495) | |||
Current note payable | (11,982) | |||
Asset retirement obligations | (2,046) | |||
Deferred tax liabilities incurred | $ (76,800) | (76,793) | ||
Net assets acquired | 130,116 | |||
Harvey E Yates Company [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares issued for acquisition | shares | 3,300,000 | |||
Consideration given | ||||
Shares issued | 71,478 | |||
Harvey E Yates Company [Member] | Convertible Preferred Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares issued for acquisition | shares | 150,000 | |||
Consideration given | ||||
Shares issued | 32,490 | |||
EnLink [Member] | ||||
Allocation of purchase price | ||||
Proceeds from sale of oil and gas property and equipment | $ 143,400 | |||
Proceeds from sale of oil and gas property and equipment net of purchase price adjustments | 139,800 | |||
Purchase price adjustments | $ 3,600 | |||
Sale leaseback transaction, deferred gain | $ 108,400 |
Revolving Credit Agreement (Det
Revolving Credit Agreement (Details Textual) - USD ($) | Apr. 14, 2015 | Sep. 30, 2012 | Dec. 31, 2015 | Feb. 25, 2016 | Oct. 21, 2015 | Oct. 16, 2015 | Feb. 27, 2015 | Dec. 31, 2014 | Mar. 13, 2014 | Sep. 28, 2012 |
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
The borrowing base under the Credit Agreement determined | semi-annually | |||||||||
Conforming borrowing base | $ 375,000,000 | $ 375,000,000 | ||||||||
Senior unsecured notes payable | $ 391,254,000 | $ 0 | ||||||||
Repayments of borrowings under Credit Agreement | $ 465,000,000 | |||||||||
Repay deficit in agreement Period | 6 months | |||||||||
Borrowings under Credit Agreement | $ 0 | 338,199,000 | ||||||||
Borrowings interest rate | 50.00% | |||||||||
Outstanding letters of credit | 600,000 | |||||||||
Deferred loan costs | 1,800,000 | |||||||||
Recognized identifiable assets acquired and liabilities assumed, current liabilities, long-term debt | $ 12,500,000 | |||||||||
Short-term debt | $ 12,000,000 | |||||||||
Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Company amended and restated its senior secured revolving credit agreement | September 28, 2012 | |||||||||
Senior secured revolving credit maximum facility | $ 400,000,000 | |||||||||
Maximum borrowing capacity, amended | $ 500,000,000 | |||||||||
Debt to EBITDA ratio covenant | 4.25 | |||||||||
Percentage of reserves required to maintain | 100.00% | |||||||||
Subsequent Event [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Borrowings under Credit Agreement | $ 0 | |||||||||
Outstanding letters of credit | $ 600,000 | |||||||||
LIBOR rate [Member] | Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Borrowings interest rate | 1.00% | |||||||||
Maximum [Member] | Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Current borrowing capacity | $ 450,000,000 | |||||||||
Commitment fee percentage | 0.50% | |||||||||
Minimum [Member] | Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Commitment fee percentage | 0.375% | |||||||||
Minimum [Member] | Base rate loan [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Additional interest rate | 0.50% | |||||||||
Eurodollar [Member] | Maximum [Member] | Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Additional interest rate | 2.50% | |||||||||
Eurodollar [Member] | Minimum [Member] | Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Additional interest rate | 1.50% | |||||||||
Unsecured Debt [Member] | Senior Notes Due 2023 [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Senior unsecured notes payable | $ 400,000,000 | $ 0 | ||||||||
Stated interest rate | 6.875% | 6.875% | ||||||||
Maturity date | Apr. 15, 2023 | |||||||||
Percentage of principal amount redeemed | 35.00% | |||||||||
Percentage of aggregate principal amount of notes outstanding after redemption | 65.00% | |||||||||
Percentage of principal amount outstanding | 25.00% | |||||||||
Period of default when due of interest | 30 days | |||||||||
Period after notice to comply with reporting obligations | 180 days | |||||||||
Period after notice to comply with agreements in indenture | 60 days | |||||||||
Aggregate principal amount related to payment defaults or accelerations | $ 25,000,000 | |||||||||
Amount of failure to pay final judgments | $ 25,000,000 | |||||||||
Period for failure to pay final judgments | 60 days | |||||||||
Federal Funds Effective Rate [Member] | Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Borrowings interest rate | 0.50% | |||||||||
Base rate loan [Member] | Maximum [Member] | Third amended credit agreement [Member] | ||||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Additional interest rate | 1.50% | |||||||||
Debt Redemption, 2018 [Member] | Unsecured Debt [Member] | Senior Notes Due 2023 [Member] | ||||||||||
Revolving Credit Agreement [Line Items] | ||||||||||
Redemption Price, Percentage | 105.156% | |||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||||
Percentage of principal amount redeemed | 106.875% | |||||||||
Debt Redemption, 2019 [Member] | Unsecured Debt [Member] | Senior Notes Due 2023 [Member] | ||||||||||
Revolving Credit Agreement [Line Items] | ||||||||||
Redemption Price, Percentage | 103.438% | |||||||||
Debt Redemption, 2020 [Member] | Unsecured Debt [Member] | Senior Notes Due 2023 [Member] | ||||||||||
Revolving Credit Agreement [Line Items] | ||||||||||
Redemption Price, Percentage | 101.719% | |||||||||
Debt Redemption, 2021 and thereafter [Member] | Unsecured Debt [Member] | Senior Notes Due 2023 [Member] | ||||||||||
Revolving Credit Agreement [Line Items] | ||||||||||
Redemption Price, Percentage | 100.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 79,208 | $ 88,447 |
Alternative minimum tax carryforwards | 9,785 | 7,197 |
Percentage depletion carryover | 2,442 | 2,068 |
Property and equipment | 42,757 | 113 |
Deferred gain on sale leaseback transaction | 32,831 | 0 |
Other | 7,396 | 281 |
Total non-current deferred tax assets | 174,419 | 98,106 |
Valuation allowance on deferred tax assets | (154,320) | 0 |
Total deferred tax assets, net of valuation allowance | 20,099 | 98,106 |
Deferred tax liabilities | ||
Unrealized gain on derivatives | 5,699 | 20,145 |
Property and equipment | 0 | (145,620) |
Other | (14,400) | (5,875) |
Total deferred tax liabilities | (20,099) | (171,640) |
Net deferred tax liabilities | $ 0 | $ (73,534) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate | 36.80% | ||||
Impairment charge of net capitalized costs | $ 21,200,000 | $ 801,166,000 | $ 0 | $ 21,229,000 | |
Valuation allowance against net deferred tax assets | $ 154,300,000 | ||||
Increase in valuation allowance | (145,777,000) | 0 | $ 8,885,000 | ||
Net capitalized costs less related deferred income taxes exceeded the full-cost ceiling | $ 0 | ||||
Internal Revenue Service (IRS) [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 212,500,000 | ||||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | $ 4,800,000 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax provision | |||
State income tax | $ 371 | $ 0 | $ 0 |
Federal alternative minimum tax | 2,588 | 133 | 404 |
Net current income tax provision | 2,959 | 133 | 404 |
Deferred income tax provision (benefit) | |||
Federal tax expense at statutory rate | (289,412) | 61,301 | 19,177 |
State income tax | (13,215) | 2,707 | 431 |
Permanent differences | 698 | 397 | 319 |
Federal alternative minimum tax | (2,588) | (133) | (404) |
Change in federal valuation allowance | 145,777 | 0 | (8,885) |
Change in state valuation allowance | 8,413 | (30) | (1,345) |
Net deferred income tax (benefit) provision | (150,327) | 64,242 | 9,293 |
Total income tax (benefit) provision | $ (147,368) | $ 64,375 | $ 9,697 |
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | |||
Weighted average fair value of stock option awards granted during the year | $ 9.90 | $ 9.45 | $ 3.91 |
Stock Based Compensation Two Thousand Twelve Incentive Plan [Member] | |||
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | |||
Stock option pricing model | Black Scholes Merton | Black Scholes Merton | |
Expected option life | 4 years | 3 years 11 months 27 days | 4 years |
Risk-free interest rate | 1.15% | 1.21% | 0.69% |
Volatility | 56.89% | 51.47% | 58.65% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Estimated forfeiture rate | 3.21% | 4.28% | 6.37% |
2003 Stock and Incentive Plan [Member] | |||
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan | |||
Stock option pricing model | Black Scholes Merton | Black Scholes Merton | Black Scholes Merton |
Expected option life | 4 months 21 days | 1 year 6 months 4 days | 2 years 5 months 9 days |
Risk-free interest rate | 0.64% | 0.74% | 0.69% |
Volatility | 91.98% | 55.14% | 51.51% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Estimated forfeiture rate | 0.00% | 0.00% | 0.79% |
Stock-Based Compensation (Det46
Stock-Based Compensation (Details 1) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of options (in thousands) | |
Options outstanding at December 31, 2014 | shares | 1,798 |
Options granted | shares | 797 |
Options exercised | shares | (85) |
Options forfeited | shares | (147) |
Options outstanding at December 31, 2015 | shares | 2,363 |
Weighted average exercise price | |
Weighted average exercise price, Options outstanding Beginning Balance | $ / shares | $ 12.47 |
Weighted average exercise price, Options granted | $ / shares | 22.32 |
Weighted average exercise price, Options exercised | $ / shares | 9.32 |
Weighted average exercise price, Options forfeited | $ / shares | 20.55 |
Weighted average exercise price, Options outstanding Ending Balance | $ / shares | $ 15.40 |
Stock-Based Compensation (Det47
Stock-Based Compensation (Details 2) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
$8.18 - $9.90 Range [Member] | |
Summarized information about outstanding and exercisable stock option | |
Range of exercise prices, Lower limit | $ 8.18 |
Range of exercise prices, Upper limit | $ 9.90 |
Shares outstanding | shares | 848 |
Weighted average remaining contractual price | 2 years 3 months 22 days |
Weighted average exercise price | $ 8.33 |
Shares exercisable | shares | 432 |
Weighted average exercise price | $ 8.41 |
$10.39 - $17.80 Range [Member] | |
Summarized information about outstanding and exercisable stock option | |
Range of exercise prices, Lower limit | 10.39 |
Range of exercise prices, Upper limit | $ 17.80 |
Shares outstanding | shares | 394 |
Weighted average remaining contractual price | 1 year 4 months 6 days |
Weighted average exercise price | $ 10.64 |
Shares exercisable | shares | 197 |
Weighted average exercise price | $ 10.64 |
$18.77 - $22.66 Range [Member] | |
Summarized information about outstanding and exercisable stock option | |
Range of exercise prices, Lower limit | 18.8 |
Range of exercise prices, Upper limit | $ 22.66 |
Shares outstanding | shares | 837 |
Weighted average remaining contractual price | 3 years 11 months 12 days |
Weighted average exercise price | $ 21.83 |
Shares exercisable | shares | 5 |
Weighted average exercise price | $ 18.77 |
$23.40-27.58 Range [Member] | |
Summarized information about outstanding and exercisable stock option | |
Range of exercise prices, Lower limit | 23.4 |
Range of exercise prices, Upper limit | $ 27.33 |
Shares outstanding | shares | 284 |
Weighted average remaining contractual price | 3 years 3 months 4 days |
Weighted average exercise price | $ 24.22 |
Shares exercisable | shares | 0 |
Weighted average exercise price | $ 0 |
Stock-Based Compensation (Det48
Stock-Based Compensation (Details 3) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Summary of non-vested stock options | |||
Shares Forfeited | (105,126) | ||
Restricted Stock Service Based [Member] | |||
Summary of non-vested stock options | |||
Non-vested Shares, Beginning Balance | 569,000 | ||
Shares Granted | 430,000 | ||
Shares Vested | (8,000) | ||
Shares Forfeited | (137,000) | ||
Non-vested Shares, Ending Balance | 854,000 | 569,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average fair value, Beginning Balance | $ 14.03 | ||
Weighted average fair value, Granted | 22.51 | ||
Weighted average fair value, Vested | 15.03 | ||
Weighted average fair value, Forfeited | 18.08 | ||
Weighted average fair value, Ending Balance | $ 17.64 | $ 14.03 | |
Restricted Stock Performance Based [Member] | |||
Summary of non-vested stock options | |||
Non-vested Shares, Beginning Balance | 97,000 | ||
Shares Granted | 0 | 116,841 | |
Shares Vested | (96,590) | ||
Shares Forfeited | 0 | ||
Non-vested Shares, Ending Balance | 0 | 97,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average fair value, Beginning Balance | $ 13.24 | ||
Weighted average fair value, Granted | 0 | ||
Weighted average fair value, Vested | 0 | ||
Weighted average fair value, Forfeited | 0 | ||
Weighted average fair value, Ending Balance | $ 13.24 | $ 13.24 | |
Restricted Stock Units Service Based [Member] | |||
Summary of non-vested stock options | |||
Non-vested Shares, Beginning Balance | 71,000 | ||
Shares Granted | 36,000 | ||
Shares Vested | (39,000) | ||
Shares Forfeited | 0 | ||
Non-vested Shares, Ending Balance | 68,000 | 71,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average fair value, Beginning Balance | $ 16.28 | ||
Weighted average fair value, Granted | 24.58 | ||
Weighted average fair value, Vested | 14.02 | ||
Weighted average fair value, Forfeited | 0 | ||
Weighted average fair value, Ending Balance | $ 21.89 | $ 16.28 | |
Restricted Stock Units Performance Based [Member] | |||
Summary of non-vested stock options | |||
Non-vested Shares, Beginning Balance | 97,000 | ||
Shares Granted | 0 | 116,841 | |
Shares Vested | (96,590) | ||
Shares Forfeited | 0 | ||
Non-vested Shares, Ending Balance | 0 | 97,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average fair value, Beginning Balance | $ 0 | ||
Weighted average fair value, Granted | 0 | ||
Weighted average fair value, Vested | 0 | ||
Weighted average fair value, Forfeited | 0 | ||
Weighted average fair value, Ending Balance | $ 0 | $ 0 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Textual) - USD ($) | Feb. 19, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 10, 2015 | Jun. 09, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum shares of common stock provided | 8,700,000 | 4,000,000 | |||||
Vesting period of shares | 3 years | ||||||
Aggregate intrinsic value | $ 13,300,000 | ||||||
Aggregate intrinsic value exercisable | $ 6,700,000 | ||||||
Quoted closing market price | $ 19.77 | ||||||
Weighted average contractual term | 2 years 2 months 16 days | ||||||
Total intrinsic value of options exercised | $ 1,300,000 | $ 200,000 | $ 36,000 | ||||
Tax related benefits realized from the exercise of stock options | 300,000 | 100,000 | 0 | ||||
Stock-based compensation expense | 9,450,000 | 5,524,000 | 3,897,000 | ||||
Stock based long term liability | 0 | 1,400,000 | 1,200,000 | ||||
Stock based current liability | 1,000,000 | 0 | 100,000 | ||||
Unrecognized compensation expense related to unvested stock options | $ 8,500,000 | ||||||
Weighted average remaining requisite service period of unvested stock awards | 1 year 9 months 22 days | ||||||
Fair value of option shares vested | $ 1,300,000 | 1,500,000 | 300,000 | ||||
Restricted stock or unit expenses | $ 0 | 3,023,000 | 1,618,000 | ||||
Granted option share purchase price, per share | $ 22.32 | ||||||
Aggregate intrinsic value for the restricted stock and restricted stock units outstanding | $ 18,200,000 | ||||||
Tax benefits recognized for stock based compensation | $ 3,400,000 | 1,900,000 | 1,100,000 | ||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period of shares | 3 years | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period of shares | 4 years | ||||||
Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum shares that may be issued pursuant to options or restricted stock grants | 3,481,569 | ||||||
Restricted stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average remaining requisite service period of unvested stock awards | 1 year 7 months 6 days | ||||||
Defer issuance term | 2 years | ||||||
Restricted stock or unit expenses | $ 4,700,000 | 3,000,000 | 1,600,000 | ||||
Unrecognized compensation expense related to unvested restricted stock and restricted stock units | 10,300,000 | ||||||
Fair value of restricted stock and restricted stock units vested | $ 800,000 | 900,000 | 200,000 | ||||
Restricted Stock Units Service Based [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants | 36,000 | ||||||
Restricted stock grants | 39,000 | ||||||
Weighted average fair value, Granted | $ 24.58 | ||||||
Restricted Stock Performance Based [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants | 0 | 116,841 | |||||
Restricted stock grants | 96,590 | ||||||
Weighted average fair value, Granted | $ 0 | ||||||
Restricted Stock Units Performance Based [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants | 0 | 116,841 | |||||
Restricted stock grants | 96,590 | ||||||
Weighted average fair value, Granted | $ 0 | ||||||
Restricted Stock Performance Based and Restricted Stock Units Performance Based [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value, Granted | $ 13.24 | ||||||
Restricted Stock Service Based [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants | 430,000 | ||||||
Restricted stock grants | 8,000 | ||||||
Weighted average fair value, Granted | $ 22.51 | ||||||
Stock options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum vesting period | 5 years | ||||||
Maximum vesting period | 10 years | ||||||
Stock-based compensation expense | $ 4,700,000 | $ 2,500,000 | $ 2,200,000 | ||||
Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted option share purchase price, per share | $ 15 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Fair Value | $ 7 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 608,287 | ||||||
Subsequent Event [Member] | Restricted stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 243,428 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plan (Textual) [Abstract] | |||
Employees annual compensation | 3.00% | ||
Safe Harbor match | $ 600,000 | $ 400,000 | $ 200,000 |
Discretionary matching contributions | 800,000 | 500,000 | 300,000 |
No additional discretionary contributions | $ 0 | $ 0 | $ 0 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | Apr. 21, 2015 | Apr. 06, 2015 | Feb. 27, 2015 | May. 29, 2014 | Sep. 10, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2015 | Apr. 01, 2015 |
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 120,000,000 | 80,000,000 | ||||||||
Issuance of Class A common stock, shares | 7,000,000 | 7,500,000 | 9,775,000 | |||||||
Offering costs | $ 1,200 | $ 600 | $ 7,400 | |||||||
Proceeds from issuance of common stock | 187,600 | $ 181,300 | $ 141,700 | $ 188,720 | $ 181,875 | $ 149,069 | ||||
Repayments of long-term debt | 85,000 | $ 476,982 | $ 180,000 | $ 130,000 | ||||||
Proceeds from public offering used to fund working capital | $ 102,600 | |||||||||
Company offering shares | 1,275,000 | |||||||||
Treasury stock, shares outstanding | 2,586 | 30,967 | ||||||||
Forfeitures of non-vested restricted stock awards | 105,126 | |||||||||
Common Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 120,000,000 | 80,000,000 | ||||||||
Shares converted | 1,500,000 | |||||||||
Shares held in escrow | 1,250,000 | |||||||||
Harvey E Yates Company [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Shares issued upon conversion | 10 | |||||||||
Harvey E Yates Company [Member] | Convertible Preferred Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Shares issued for acquisition | 150,000 | |||||||||
Shares issued as consideration in business combination | 150,000 | |||||||||
Harvey E Yates Company [Member] | Common Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Shares issued for acquisition | 3,300,000 |
Derivative Financial Instrume52
Derivative Financial Instruments (Details) bbl in Thousands, MMBTU in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)MMBTU$ / MMBTU$ / bblbbl | Dec. 31, 2017MMBTU$ / MMBTU | Dec. 31, 2016MMBTUbbl$ / MMBTU$ / bbl | |
Oil [Member] | |||
Summary of contracts for oil and natural gas | |||
Calculation Period | 01/01/2016 - 12/31/2016 | ||
Notional Quantity | bbl | 1,560 | ||
Price Floor | $ / bbl | 47.46 | ||
Price Ceiling | $ / bbl | 74.64 | ||
Natural Gas [Member] | |||
Summary of contracts for oil and natural gas | |||
Calculation Period | 01/01/2016 - 12/31/2016 | ||
Derivative Notional Quantity Natural Gas | MMBTU | 8,400 | ||
Price Floor | $ / MMBTU | 2.75 | ||
Price Ceiling | $ / MMBTU | 3.80 | ||
Fair Value of Asset (Liability) | $ | $ 3,201 | ||
Open costless collar contracts [Member] | |||
Summary of contracts for oil and natural gas | |||
Fair Value of Asset (Liability) | $ | 16,284 | ||
Open costless collar contracts [Member] | Oil [Member] | |||
Summary of contracts for oil and natural gas | |||
Fair Value of Asset (Liability) | $ | $ 13,083 | ||
Scenario, Forecast [Member] | Oil [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | bbl | 600 | ||
Summary of contracts for oil and natural gas | |||
Price Floor | $ / bbl | 35 | ||
Price Ceiling | $ / bbl | 43.23 | ||
Scenario, Forecast [Member] | Natural Gas [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 7,200 | 3,300 | |
Summary of contracts for oil and natural gas | |||
Price Floor | $ / MMBTU | 2.25 | 2.25 | |
Price Ceiling | $ / MMBTU | 3.57 | 2.90 |
Derivative Financial Instrume53
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Assets and Liabilities | $ 16,284 | $ 55,549 |
Derivative Asset and Liability, Fair Value, Net | 0 | 0 |
Derivative Asset and Liability, Amount Offset Against Collateral, Net | 16,284 | 55,549 |
Current assets [Member] | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets | 16,767 | 56,255 |
Gross amounts netted in the consolidated balance sheets | (483) | (706) |
Net amounts of assets presented in the consolidated balance sheets | 16,284 | 55,549 |
Other assets [Member] | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets | 0 | 0 |
Gross amounts netted in the consolidated balance sheets | 0 | 0 |
Net amounts of assets presented in the consolidated balance sheets | 0 | 0 |
Current liabilities [Member] | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized liabilities | (483) | (706) |
Gross amounts netted in the consolidated balance sheet | (483) | (706) |
Net amounts of liabilities presented in the consolidated balance sheet | 0 | 0 |
Other liabilities [Member] | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized liabilities | 0 | 0 |
Gross amounts netted in the consolidated balance sheet | 0 | 0 |
Net amounts of liabilities presented in the consolidated balance sheet | $ 0 | $ 0 |
Derivative Financial Instrume54
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | |||
Realized gain (loss) on derivatives | $ 77,094 | $ 5,022 | $ (909) |
Unrealized gain (loss) on derivatives | (39,265) | 58,302 | (7,232) |
Revenues [Member] | |||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | |||
Realized gain (loss) on derivatives | 77,094 | 5,022 | (909) |
Unrealized gain (loss) on derivatives | (39,265) | 58,302 | (7,232) |
Total | 37,829 | 63,324 | (8,141) |
Oil [Member] | Revenues [Member] | |||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | |||
Realized gain (loss) on derivatives | 62,259 | 5,221 | (2,408) |
Unrealized gain (loss) on derivatives | (31,897) | 47,178 | (5,319) |
Natural Gas [Member] | Revenues [Member] | |||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | |||
Realized gain (loss) on derivatives | 12,653 | (718) | 831 |
Unrealized gain (loss) on derivatives | (5,440) | 9,087 | (1,580) |
NGL's [Member] | Revenues [Member] | |||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | |||
Realized gain (loss) on derivatives | 2,182 | 519 | 668 |
Unrealized gain (loss) on derivatives | $ (1,928) | $ 2,037 | $ (333) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Natural Gas [Member] | ||
Assets (Liabilities) | ||
Oil, natural gas and NGL derivatives | $ 3,201 | |
Fair value on a recurring basis [Member] | ||
Assets (Liabilities) | ||
Total | 16,284 | $ 55,549 |
Fair value on a recurring basis [Member] | Natural Gas [Member] | ||
Assets (Liabilities) | ||
Oil, natural gas and NGL derivatives | 16,284 | 55,549 |
Fair value on a recurring basis [Member] | Level 1 [Member] | ||
Assets (Liabilities) | ||
Total | 0 | 0 |
Fair value on a recurring basis [Member] | Level 1 [Member] | Natural Gas [Member] | ||
Assets (Liabilities) | ||
Oil, natural gas and NGL derivatives | 0 | 0 |
Fair value on a recurring basis [Member] | Level 2 [Member] | ||
Assets (Liabilities) | ||
Total | 16,284 | 55,549 |
Fair value on a recurring basis [Member] | Level 2 [Member] | Natural Gas [Member] | ||
Assets (Liabilities) | ||
Oil, natural gas and NGL derivatives | 16,284 | 55,549 |
Fair value on a recurring basis [Member] | Level 3 [Member] | ||
Assets (Liabilities) | ||
Total | 0 | 0 |
Fair value on a recurring basis [Member] | Level 3 [Member] | Natural Gas [Member] | ||
Assets (Liabilities) | ||
Oil, natural gas and NGL derivatives | $ 0 | $ 0 |
Fair Value Measurements (Deta56
Fair Value Measurements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes payable | $ 381,000,000 | |
Notes outstanding | 391,254,000 | $ 0 |
Pipe and other equipment [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impairment charge for equipments held in inventory | $ 0 | $ 0 |
Commitments and Contingencies57
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of future minimum lease payments required under the office lease agreement | |
2,016 | $ 2,017 |
2,017 | 2,432 |
2,018 | 2,488 |
2,019 | 2,528 |
2,020 | 2,602 |
Thereafter | 14,995 |
Total | $ 27,062 |
Commitments and Contingencies58
Commitments and Contingencies (Details Textual) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)ft² | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 15, 2008 | |
Long-term Purchase Commitment [Line Items] | ||||
Rent expense, including fees for operating expenses and consumption of electricity | $ 1.7 | $ 0.9 | $ 0.8 | |
Payments for Construction in Process | 7 | |||
Minimum outstanding commitments | $ 5.7 | |||
Royalty owner undivided interest in mineral | 16.70% | |||
Lease agreements [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Office space of headquarters | ft² | 100,000 | |||
Term Of Old Contract Drilling Rig [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Term of new contract drilling rig | one year | |||
Drilling Rig Commitments [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Maximum termination outstanding obligations of contracts | $ 43.5 | |||
Construction Contracts [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Maximum termination outstanding obligations of contracts | $ 28.5 | |||
Eagle Ford Acreage Agreement [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Effective date of which company entered into agreement | Sep. 1, 2012 | |||
Natural gas processing and transportation agreement | 5 years | |||
Minimum delivery commitment to avoid paying gas deficiency fee | 80.00% | |||
Transportation and processing fees under the agreement | $ 5.5 | $ 5.8 | ||
Future undiscounted minimum payments | 1.8 | |||
Future Undiscounted Minimum Payments, Due in Two Years | 1.2 | |||
Loving County System Agreement [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Transportation and processing fees under the agreement | 1.8 | |||
Product Liability Contingency, Loss Exposure Not Accrued, Best Estimate | $ 9.6 |
Supplemental Disclosures (Detai
Supplemental Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of current accrued liabilities | ||
Total accrued liabilities | $ 92,369 | $ 107,356 |
Other | 2,022 | 3,489 |
Accrued evaluated and unproved and unevaluated property costs [Member] | ||
Summary of current accrued liabilities | ||
Total accrued liabilities | 54,586 | 86,259 |
Accrued support equipment and facilities costs [Member] | ||
Summary of current accrued liabilities | ||
Total accrued liabilities | 17,393 | 4,290 |
Accrued lease operating expenses [Member] | ||
Summary of current accrued liabilities | ||
Total accrued liabilities | 7,743 | 9,034 |
Accrued interest on debt [Member] | ||
Summary of current accrued liabilities | ||
Total accrued liabilities | 5,806 | 206 |
Accrued asset retirement obligations [Member] | ||
Summary of current accrued liabilities | ||
Total accrued liabilities | 254 | 311 |
Accrued partners' share of joint interest charges [Member] | ||
Summary of current accrued liabilities | ||
Total accrued liabilities | $ 4,565 | $ 3,767 |
Supplemental Disclosures (Det60
Supplemental Disclosures (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental disclosures of cash flow information | |||
Cash paid for interest expense, net of amounts capitalized | $ 16,154 | $ 5,269 | $ 5,801 |
Asset retirement obligations related to mineral properties | 2,510 | 3,843 | 1,363 |
Asset retirement obligations related to support equipment and facilities | 383 | 120 | 3 |
(Decrease) increase in liabilities for oil and natural gas properties capital expenditures | (30,683) | 32,972 | 7,458 |
Increase in liabilities for support equipment and facilities | 12,076 | 4,290 | 660 |
Issuance of restricted stock units for Board and advisor services | 584 | 444 | 274 |
Issuance of common stock for Board and advisor services | 24 | 16 | 57 |
Stock-based compensation expense recognized as liability | 79 | 223 | 1,012 |
Transfer of inventory to oil and natural gas properties | $ 615 | $ 216 | $ 343 |
Subsidiary Guarantors (Details)
Subsidiary Guarantors (Details) | Dec. 31, 2015 |
Equity [Abstract] | |
Subsidiary ownership percentage | 100.00% |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)ajoint_venture | Dec. 31, 2015USD ($) | |
Corporate Joint Venture [Member] | ||
Related Party Transaction [Line Items] | ||
Number of Joint Ventures With Affiliates | joint_venture | 2 | |
Acreage Contributed By Joint Venture Partner | a | 1,900 | |
Percentage of Corporate Joint Ventures Owned BY Joint Venture Partners | 50.00% | |
Capital Commitment To Corporate Joint Ventures | $ 14.2 | |
Capital Contributed to Corporate Joint Ventures | $ 0.7 | |
HEYCO Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 1.1 |