Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Matador Resources Co | |
Entity Central Index Key | 1,520,006 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100,437,295 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash | $ 131,466 | $ 212,884 |
Restricted cash | 15,040 | 1,258 |
Accounts receivable | ||
Oil and natural gas revenues | 39,621 | 34,154 |
Joint interest billings | 37,387 | 19,347 |
Other | 7,303 | 5,167 |
Derivative instruments | 7,067 | 0 |
Lease and well equipment inventory | 2,957 | 3,045 |
Prepaid expenses and other assets | 5,946 | 3,327 |
Total current assets | 246,787 | 279,182 |
Oil and natural gas properties, full-cost method | ||
Evaluated | 2,694,766 | 2,408,305 |
Unproved and unevaluated | 567,009 | 479,736 |
Other property and equipment | 204,299 | 160,795 |
Less accumulated depletion, depreciation and amortization | (1,939,570) | (1,864,311) |
Net property and equipment | 1,526,504 | 1,184,525 |
Derivative instruments | 2,992 | 0 |
Other assets | 793 | 958 |
Total other assets | 3,785 | 958 |
Total assets | 1,777,076 | 1,464,665 |
Current liabilities | ||
Accounts payable | 7,371 | 4,674 |
Accrued liabilities | 151,336 | 101,460 |
Royalties payable | 35,423 | 23,988 |
Amounts due to affiliates | 5,865 | 8,651 |
Derivative instruments | 1,192 | 24,203 |
Advances from joint interest owners | 5,468 | 1,700 |
Amounts due to joint ventures | 4,873 | 4,251 |
Other current liabilities | 656 | 578 |
Total current liabilities | 212,184 | 169,505 |
Long-term liabilities | ||
Senior unsecured notes payable | 573,988 | 573,924 |
Asset retirement obligations | 22,391 | 19,725 |
Amounts due to joint ventures | 0 | 751 |
Derivative instruments | 0 | 1,771 |
Other long-term liabilities | 6,142 | 7,544 |
Total long-term liabilities | 602,521 | 603,715 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock - $0.01 par value, 160,000,000 and 120,000,000 shares authorized; 100,399,756 and 99,518,764 shares issued; and 100,324,852 and 99,511,931 shares outstanding, respectively | 1,004 | 995 |
Additional paid-in capital | 1,453,341 | 1,325,481 |
Accumulated deficit | (563,858) | (636,351) |
Treasury stock, at cost, 74,904 and 6,833 shares, respectively | (745) | 0 |
Total Matador Resources Company shareholders’ equity | 889,742 | 690,125 |
Non-controlling interest in subsidiaries | 72,629 | 1,320 |
Total shareholders’ equity | 962,371 | 691,445 |
Total liabilities and shareholders’ equity | $ 1,777,076 | $ 1,464,665 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - Unaudited - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 100,399,756 | 99,518,764 |
Common stock, shares outstanding | 100,324,852 | 99,511,931 |
Treasury stock, shares | 74,904 | 6,833 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | ||||
Oil and natural gas revenues | $ 113,764 | $ 69,336 | $ 228,611 | $ 113,262 |
Third-party midstream services revenues | 2,099 | 918 | 3,654 | 1,391 |
Realized gain (loss) on derivatives | 558 | 2,465 | (1,661) | 9,528 |
Unrealized gain (loss) on derivatives | 13,190 | (26,625) | 33,821 | (33,464) |
Total revenues | 129,611 | 46,094 | 264,425 | 90,717 |
Expenses | ||||
Production taxes, transportation and processing | 12,875 | 10,556 | 24,682 | 18,459 |
Lease operating | 16,040 | 12,183 | 31,797 | 26,695 |
Plant and other midstream services operating | 2,942 | 1,061 | 5,283 | 2,088 |
Depletion, depreciation and amortization | 41,274 | 31,248 | 75,266 | 60,170 |
Accretion of asset retirement obligations | 314 | 289 | 614 | 552 |
Full-cost ceiling impairment | 0 | 78,171 | 0 | 158,633 |
General and administrative | 17,177 | 13,197 | 33,515 | 26,360 |
Total expenses | 90,622 | 146,705 | 171,157 | 292,957 |
Operating income (loss) | 38,989 | (100,611) | 93,268 | (202,240) |
Other income (expense) | ||||
Net gain on asset sales and inventory impairment | 0 | 1,002 | 7 | 2,067 |
Interest expense | (9,224) | (6,167) | (17,679) | (13,365) |
Other income | 1,922 | 29 | 1,991 | 124 |
Total other expense | (7,302) | (5,136) | (15,681) | (11,174) |
Net income (loss) | 31,687 | (105,747) | 77,587 | (213,414) |
Net income attributable to non-controlling interest in subsidiaries | (3,178) | (106) | (5,094) | (93) |
Net income (loss) attributable to Matador Resources Company shareholders | $ 28,509 | $ (105,853) | $ 72,493 | $ (213,507) |
Earnings (loss) per common share | ||||
Basic (in dollars per share) | $ 0.28 | $ (1.15) | $ 0.72 | $ (2.40) |
Diluted (in dollars per share) | $ 0.28 | $ (1.15) | $ 0.72 | $ (2.40) |
Weighted average common shares outstanding | ||||
Basic (shares) | 100,211 | 92,346 | 100,005 | 88,826 |
Diluted (shares) | 100,227 | 92,346 | 100,455 | 88,826 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated deficit | Treasury Stock | Total shareholders’ equity attributable to Matador Resources Company | Non-controlling interest in subsidiaries |
Beginning Balance, shares at Dec. 31, 2016 | 99,511,931 | 99,519,000 | 6,000 | ||||
Balance at January 1, 2017 at Dec. 31, 2016 | $ 691,445 | $ 995 | $ 1,325,481 | $ (636,351) | $ 0 | $ 690,125 | $ 1,320 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock pursuant to employee stock compensation plan, shares | 499,000 | ||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 5 | (5) | 0 | |||
Common stock issued to Board members and advisors, shares | 55,000 | ||||||
Common stock issued to Board members and advisors | 0 | $ 1 | (1) | 0 | |||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 12,521 | 12,521 | 12,521 | ||||
Stock options exercised, shares | 327,000 | ||||||
Stock options exercised, net of options forfeited in net share settlements | (24) | $ 3 | (27) | (24) | |||
Restricted stock forfeited, shares | 69,000 | ||||||
Restricted stock forfeited | (745) | $ (745) | (745) | ||||
Purchase of non-controlling interest of less-than-wholly-owned subsidiary | (2,653) | (1,250) | (1,250) | (1,403) | |||
Contributions related to formation of Joint Venture (see Note 3) | 171,500 | 116,622 | 116,622 | 54,878 | |||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 14,700 | 14,700 | |||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (1,960) | (1,960) | |||||
Current period net income | $ 77,587 | 72,493 | 72,493 | 5,094 | |||
Ending Balance, shares at Jun. 30, 2017 | 100,324,852 | 100,400,000 | 75,000 | ||||
Balance at March 31, 2017 at Jun. 30, 2017 | $ 962,371 | $ 1,004 | $ 1,453,341 | $ (563,858) | $ (745) | $ 889,742 | $ 72,629 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net income (loss) | $ 77,587 | $ (213,414) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Unrealized (gain) loss on derivatives | (33,821) | 33,464 |
Depletion, depreciation and amortization | 75,266 | 60,170 |
Accretion of asset retirement obligations | 614 | 552 |
Full-cost ceiling impairment | 0 | 158,633 |
Stock-based compensation expense | 11,192 | 5,553 |
Amortization of debt issuance cost | 64 | 592 |
Net gain on asset sales and inventory impairment | (7) | (2,067) |
Changes in operating assets and liabilities | ||
Accounts receivable | (25,642) | (2,751) |
Lease and well equipment inventory | (140) | (514) |
Prepaid expenses | (2,619) | 186 |
Other assets | 165 | 520 |
Accounts payable, accrued liabilities and other current liabilities | 4,442 | 2,451 |
Royalties payable | 11,435 | 153 |
Advances from joint interest owners | 3,768 | 5,083 |
Income taxes payable | 0 | (2,848) |
Other long-term liabilities | (1,062) | 3,837 |
Net cash provided by operating activities | 121,242 | 49,600 |
Investing activities | ||
Oil and natural gas properties capital expenditures | (328,929) | (162,381) |
Expenditures for other property and equipment | (41,743) | (47,548) |
Proceeds from sale of assets | 977 | 0 |
Restricted cash | 0 | 43,437 |
Restricted cash in less-than-wholly-owned subsidiaries | (13,783) | 460 |
Net cash used in investing activities | (383,478) | (166,032) |
Financing activities | ||
Proceeds from issuance of common stock | 0 | 142,350 |
Cost to issue equity | 0 | (768) |
Proceeds from stock options exercised | 2,201 | 0 |
Contributions related to formation of Joint Venture | 171,500 | 0 |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 14,700 | 0 |
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (1,960) | 0 |
Taxes paid related to net share settlement of stock-based compensation | (2,970) | (1,009) |
Purchase of non-controlling interest of less-than-wholly-owned subsidiary | (2,653) | 0 |
Net cash provided by financing activities | 180,818 | 140,573 |
(Decrease) increase in cash | (81,418) | 24,141 |
Cash at beginning of period | 212,884 | 16,732 |
Cash at end of period | $ 131,466 | $ 40,873 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2017 | |
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. Additionally, the Company conducts midstream operations, primarily through its midstream joint venture, San Mateo Midstream, LLC (“San Mateo” or the “Joint Venture”), in support of the Company’s exploration, development and production operations and provides natural gas processing, natural gas, oil and salt water gathering services and salt water disposal services to third parties on a limited basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of Matador and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “Annual Report”) filed with the SEC. The Company consolidates certain subsidiaries and joint ventures that are less than wholly owned and are not involved in oil and natural gas exploration, including San Mateo, 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 accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments, consisting only of normal, recurring adjustments, which are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of June 30, 2017 . Amounts as of December 31, 2016 are derived from the Company’s audited consolidated financial statements in the Annual Report. 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. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including accruals for oil and natural gas revenues, accrued assets and liabilities primarily related to oil and natural gas operations, stock-based compensation, valuation of derivative instruments 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. 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. Reclassifications Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period presentation. As a result of the growth of the Company’s midstream operations, these operations met the required threshold for segment reporting. As a result, $0.9 million for the three months ended June 30, 2016 and $1.4 million for the six months ended June 30, 2016 were reclassified from other income to third-party midstream services revenues. In addition, $1.1 million related to midstream operating costs for the three months ended June 30, 2016 and $2.1 million for the six months ended June 30, 2016 were reclassified from lease operating expenses to plant and other midstream services operating expenses. These reclassifications had no effect on previously reported results of operations, cash flows or retained earnings. Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12 -month period. For the three and six months ended June 30, 2017 , the cost center ceiling was higher than the capitalized costs of oil and natural gas properties; no impairment charge was necessary. However, due primarily to declines in oil and natural gas prices in early 2016, the capitalized costs of oil and natural gas properties exceeded the cost center ceiling for the three and six months ended June 30, 2016 , and as a result, the Company recorded impairment charges to its net capitalized costs of $78.2 million and $158.6 million , respectively, in its interim unaudited condensed consolidated statements of operations. The Company capitalized approximately $5.2 million and $4.0 million of its general and administrative costs for the three months ended June 30, 2017 and 2016 , respectively, and approximately $1.9 million and $1.7 million of its interest expense for the three months ended June 30, 2017 and 2016 , respectively. The Company capitalized approximately $10.8 million and $6.0 million of its general and administrative costs for the six months ended June 30, 2017 and 2016 , respectively, and approximately $3.2 million and $2.2 million of its interest expense for the six months ended June 30, 2017 and 2016 , respectively. Earnings (Loss) Per Common Share The Company reports basic earnings (loss) attributable to Matador Resources Company shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings (loss) attributable to Matador Resources Company shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following table sets forth the computation of diluted weighted average common shares outstanding for the three and six months ended June 30, 2017 and 2016 (in thousands). Three Months Ended Six Months Ended 2017 2016 2017 2016 Weighted average common shares outstanding Basic 100,211 92,346 100,005 88,826 Dilutive effect of options and restricted stock units 16 — 450 — Diluted weighted average common shares outstanding 100,227 92,346 100,455 88,826 A total of 2.9 million options to purchase shares of the Company’s common stock and 0.1 million restricted stock units were excluded from the diluted weighted average common shares outstanding for both the three and six months ended June 30, 2016 , respectively, because their effects were anti-dilutive. Additionally, 0.9 million restricted shares, which are participating securities, were excluded from the calculations above for both the three and six months ended June 30, 2016 , respectively, as the security holders do not have the obligation to share in the losses of the Company. Recent Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Early adoption is permitted for fiscal years beginning after December 15, 2016. In May 2016, the FASB issued ASU 2016-11, which rescinds guidance from the SEC on accounting for gas balancing arrangements and will eliminate the use of the entitlements method. Entities have the option of using either a full retrospective or modified approach to adopt the new standards. In December 2016, the FASB issued ASU 2016-20, which clarifies disclosure requirements in ASU 2014-09. The Company expects to adopt the new guidance effective January 1, 2018 using the modified approach. The Company is evaluating the new guidance, including (i) identification of revenue streams and (ii) review of contracts and procedures currently in place. Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. This ASU will become effective for fiscal years beginning after December 15, 2018 with early adoption permitted. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. Statement of Cash Flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) , which specifies that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The update should be applied using a retrospective transition method to each period presented. The Company believes that the impact of the adoption of this ASU will change the presentation of its beginning and ending cash balances on its Consolidated Statements of Cash Flows and eliminate the presentation of changes in restricted cash balances from investing activities on its Consolidated Statements of Cash Flows. Clarifying the Definition of a Business. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) , which specifies the minimum inputs and processes required for an integrated set of assets and activities to meet the definition of a business. This ASU will become effective for fiscal years beginning after December 15, 2017 with early adoption permitted. Entities are required to apply guidance prospectively upon adoption. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Business Combination | BUSINESS COMBINATION Joint Venture On February 17, 2017, the Company contributed substantially all of its midstream assets located in the Rustler Breaks (Eddy County, New Mexico) and Wolf (Loving County, Texas) asset areas in the Delaware Basin to San Mateo, a joint venture with a subsidiary of Five Point Capital Partners LLC (“Five Point”). The midstream assets contributed to San Mateo include (i) the Black River cryogenic natural gas processing plant in the Rustler Breaks asset area (the “Black River Processing Plant”); (ii) one salt water disposal well and a related commercial salt water disposal facility in the Rustler Breaks asset area; (iii) three salt water disposal wells and related commercial salt water disposal facilities in the Wolf asset area; and (iv) substantially all related oil, natural gas and water gathering systems and pipelines in both the Rustler Breaks and Wolf asset areas (collectively, the “Delaware Midstream Assets”). The Company continues to operate the Delaware Midstream Assets. The Company retained its ownership in certain midstream assets in South Texas and Northwest Louisiana, which are not part of the Joint Venture. The Company and Five Point own 51% and 49% of the Joint Venture, respectively. Five Point provided initial cash consideration of $176.4 million to the Joint Venture in exchange for its 49% interest. Approximately $171.5 million of this cash contribution by Five Point was distributed by the Joint Venture to the Company as a special distribution. The Company may earn an additional $73.5 million in performance incentives over the next five years . The Company contributed the Delaware Midstream Assets and $5.1 million in cash to the Joint Venture in exchange for its 51% interest. The parties to the Joint Venture have also committed to spend up to an additional $140.0 million in the aggregate to expand the Joint Venture’s midstream operations and asset base. The Joint Venture is consolidated in the Company’s interim unaudited condensed consolidated financial statements with Five Point’s interest in the Joint Venture being accounted for as a non-controlling interest. In connection with the Joint Venture, the Company dedicated its current and future leasehold interests in the Rustler Breaks and Wolf asset areas pursuant to 15 -year, fixed-fee natural gas, oil and salt water gathering agreements and salt water disposal agreements, effective as of February 1, 2017. In addition, the Company dedicated its current and future leasehold interests in the Rustler Breaks asset area pursuant to a 15 -year, fixed fee natural gas processing agreement (see Note 10). |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | The following table summarizes the changes in the Company’s asset retirement obligations for the six months ended June 30, 2017 (in thousands). Beginning asset retirement obligations $ 20,640 Liabilities incurred during period 1,222 Liabilities settled during period (176 ) Revisions in estimated cash flows 794 Accretion expense 614 Ending asset retirement obligations 23,094 Less: current asset retirement obligations (1) (703 ) Long-term asset retirement obligations $ 22,391 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2017 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At June 30, 2017 and August 2, 2017 , the Company had $575.0 million of outstanding 6.875% senior notes due 2023, no borrowings outstanding under the Company’s revolving credit agreement (the “Credit Agreement”) and approximately $0.8 million in outstanding letters of credit issued pursuant to the Credit Agreement. Credit Agreement 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 first quarter of 2017 , the lenders completed their review of the Company’s proved oil and natural gas reserves at December 31, 2016 , and on April 28, 2017, the borrowing base was increased to $450.0 million and the maximum facility amount remained at $500.0 million . The Company elected to keep the borrowing commitment at $400.0 million . Borrowings under the Credit Agreement are limited to the least of the borrowing base, the maximum facility amount and the elected commitment. The Credit Agreement matures on October 16, 2020. In the event of an increase in the elected commitment, 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 increase. Total deferred loan costs were $1.1 million at June 30, 2017 , 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 of the 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. The Company believes that it was in compliance with the terms of the Credit Agreement at June 30, 2017 . Senior Unsecured Notes On April 14, 2015 and December 9, 2016, the Company issued $400.0 million and $175.0 million , respectively, of 6.875% senior notes due 2023 (collectively, the “Notes”). The Notes mature on April 15, 2023, and interes t is payable semi-annually in arrears on April and October 15 of each year. On May 24, 2017, and pursuant to a registered exchange offer, the Company exchanged all of the $175.0 million of Notes issued on December 9, 2016, which were privately placed, for a like principal amount of 6.875% senior notes due 2023 that have been registered under the Securities Act of 1933, as amended. The terms of such registered 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 registered Notes. On February 17, 2017, in connection with the formation of San Mateo (see Note 3), Matador entered into a Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”), which supplements the indenture governing the Notes. Pursuant to the Fourth Supplemental Indenture, (i) Longwood Midstream Holdings, LLC, the holder of Matador’s 51% equity interest in San Mateo, was designated as a guarantor of the Notes and (ii) DLK Black River Midstream, LLC and Black River Water Management Company, LLC, each subsidiaries of San Mateo, were released as parties to, and as guarantors of, the Notes. The guarantors of the Notes, following the effectiveness of the Fourth Supplemental Indenture, are referred to herein as the “Guarantor Subsidiaries.” San Mateo and its subsidiaries (the “Non-Guarantor Subsidiaries”) are not guarantors of the Notes, although they remain restricted subsidiaries under the indenture governing the Notes. The following presents condensed consolidating financial information on an issuer (Matador), Non-Guarantor Subsidiaries, Guarantor Subsidiaries and consolidated basis (in thousands). Elimination entries are necessary to combine the entities. This financial information is presented in accordance with the requirements of Rule 3-10 of Regulation S-X. The following financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 385,885 $ — $ 1,679 $ (387,564 ) $ — Third-party current assets 2,944 16,953 226,890 — 246,787 Net property and equipment — 151,331 1,375,173 — 1,526,504 Investment in subsidiaries 1,083,542 — 75,585 (1,159,127 ) — Third-party long-term assets — — 3,785 — 3,785 Total assets $ 1,472,371 $ 168,284 $ 1,683,112 $ (1,546,691 ) $ 1,777,076 LIABILITIES AND EQUITY Intercompany payable $ — $ 1,679 $ 385,885 $ (387,564 ) $ — Third-party current liabilities 8,640 17,753 185,791 — 212,184 Senior unsecured notes payable 573,988 — — — 573,988 Other third-party long-term liabilities — 639 27,894 — 28,533 Total equity attributable to Matador Resources Company 889,743 75,584 1,083,542 (1,159,127 ) 889,742 Non-controlling interest in subsidiaries — 72,629 — — 72,629 Total liabilities and equity $ 1,472,371 $ 168,284 $ 1,683,112 $ (1,546,691 ) $ 1,777,076 Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 316,791 $ 3,571 $ 12,091 $ (332,453 ) $ — Third-party current assets 101,102 4,242 173,838 — 279,182 Net property and equipment 33 113,107 1,071,385 — 1,184,525 Investment in subsidiaries 856,762 — 90,275 (947,037 ) — Third-party long-term assets — — 958 — 958 Total assets $ 1,274,688 $ 120,920 $ 1,348,547 $ (1,279,490 ) $ 1,464,665 LIABILITIES AND EQUITY Intercompany payable $ — $ 12,091 $ 320,362 $ (332,453 ) $ — Third-party current liabilities 9,265 16,632 143,608 — 169,505 Senior unsecured notes payable 573,924 — — — 573,924 Other third-party long-term liabilities 1,374 602 27,815 — 29,791 Total equity attributable to Matador Resources Company 690,125 90,275 856,762 (947,037 ) 690,125 Non-controlling interest in subsidiaries — 1,320 — — 1,320 Total liabilities and equity $ 1,274,688 $ 120,920 $ 1,348,547 $ (1,279,490 ) $ 1,464,665 Condensed Consolidating Statement of Operations For the Three Months Ended June 30, 2017 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 11,274 $ 127,198 $ (8,861 ) $ 129,611 Total expenses 1,586 4,814 93,083 (8,861 ) 90,622 Operating (loss) income (1,586 ) 6,460 34,115 — 38,989 Net gain on asset sales and inventory impairment — — — — — Interest expense (9,224 ) — — — (9,224 ) Other income (27 ) 26 1,923 — 1,922 Earnings in subsidiaries 39,228 — 3,244 (42,472 ) — Income before income taxes 28,391 6,486 39,282 (42,472 ) 31,687 Total income tax (benefit) provision (118 ) 64 54 — — Net income attributable to non-controlling interest in subsidiaries — (3,178 ) — — (3,178 ) Net income attributable to Matador Resources Company shareholders $ 28,509 $ 3,244 $ 39,228 $ (42,472 ) $ 28,509 Condensed Consolidating Statement of Operations For the Three Months Ended June 30, 2016 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 3,210 $ 44,778 $ (1,894 ) $ 46,094 Total expenses 1,032 1,244 146,323 (1,894 ) 146,705 Operating (loss) income (1,032 ) 1,966 (101,545 ) — (100,611 ) Net gain on asset sales and inventory impairment — — 1,002 — 1,002 Interest expense (6,167 ) — — — (6,167 ) Other income — — 29 — 29 (Loss) earnings in subsidiaries (98,672 ) — 1,842 96,830 — (Loss) income before income taxes (105,871 ) 1,966 (98,672 ) 96,830 (105,747 ) Total income tax (benefit) provision (18 ) 18 — — — Net income attributable to non-controlling interest in subsidiaries — (106 ) — — (106 ) Net (loss) income attributable to Matador Resources Company shareholders $ (105,853 ) $ 1,842 $ (98,672 ) $ 96,830 $ (105,853 ) Condensed Consolidating Statement of Operations For the Six Months Ended June 30, 2017 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 20,937 $ 259,846 $ (16,358 ) $ 264,425 Total expenses 2,846 8,682 175,987 (16,358 ) 171,157 Operating (loss) income (2,846 ) 12,255 83,859 — 93,268 Net gain on asset sales and inventory impairment — — 7 — 7 Interest expense (17,679 ) — — — (17,679 ) Other income — 26 1,965 — 1,991 Earnings in subsidiaries 92,900 — 7,069 (99,969 ) — Income before income taxes 72,375 12,281 92,900 (99,969 ) 77,587 Total income tax (benefit) provision (118 ) 118 — — — Net income attributable to non-controlling interest in subsidiaries — (5,094 ) — — (5,094 ) Net income attributable to Matador Resources Company shareholders $ 72,493 $ 7,069 $ 92,900 $ (99,969 ) $ 72,493 Condensed Consolidating Statement of Operations For the Six Months Ended June 30, 2016 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 4,527 $ 88,825 $ (2,635 ) $ 90,717 Total expenses 2,967 2,377 290,248 (2,635 ) 292,957 Operating (loss) income (2,967 ) 2,150 (201,423 ) — (202,240 ) Net gain on asset sales and inventory impairment — — 2,067 — 2,067 Interest expense (13,365 ) — — — (13,365 ) Other income — — 124 — 124 (Loss) earnings in subsidiaries (197,200 ) — 2,032 195,168 — Income before income taxes (213,532 ) 2,150 (197,200 ) 195,168 (213,414 ) Total income tax (benefit) provision (25 ) 25 — — — Net income attributable to non-controlling interest in subsidiaries — (93 ) — — (93 ) Net (loss) income attributable to Matador Resources Company shareholders $ (213,507 ) $ 2,032 $ (197,200 ) $ 195,168 $ (213,507 ) Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2017 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (98,583 ) $ 1,566 $ 218,259 $ — $ 121,242 Net cash provided by (used in) investing activities 33 (51,580 ) (198,051 ) (133,880 ) (383,478 ) Net cash provided by (used in) financing activities — 47,707 (769 ) 133,880 180,818 (Decrease) increase in cash (98,550 ) (2,307 ) 19,439 — (81,418 ) Cash at beginning of period 99,795 2,307 110,782 — 212,884 Cash at end of period $ 1,245 $ — $ 130,221 $ — $ 131,466 Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2016 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (24,519 ) $ (6,198 ) $ 80,317 $ — $ 49,600 Net cash used in investing activities (117,086 ) (44,074 ) (172,108 ) 167,236 (166,032 ) Net cash provided by financing activities 141,582 50,150 116,077 (167,236 ) 140,573 (Decrease) increase in cash (23 ) (122 ) 24,286 — 24,141 Cash at beginning of period 80 186 16,466 — 16,732 Cash at end of period $ 57 $ 64 $ 40,752 $ — $ 40,873 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s deferred tax assets exceeded its deferred tax liabilities at June 30, 2017 due to the deferred tax assets generated by the full-cost ceiling impairment charges recorded in prior periods; as a result, the Company established a valuation allowance against most of the deferred tax assets beginning in the third quarter of 2015. The Company retained a full valuation allowance at June 30, 2017 due to uncertainties regarding the future realization of its deferred tax assets. The valuation allowance will continue to be recognized until the realization of future deferred tax benefits are more likely than not to be utilized. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In February 2017, the Company granted awards of 228,174 shares of restricted stock and options to purchase 590,128 shares of the Company’s common stock at an exercise price of $27.26 per share to certain of its employees. The fair value of these awards was approximately $12.4 million . All of these awards vest ratably over three years. In February 2017, the Company also granted awards of 174,561 shares of restricted stock and options to purchase 444,491 shares of the Company’s common stock at an exercise price of $26.86 per share to certain of its employees. The fair value of these awards was approximately $9.3 million . All of these awards vest ratably over three years. In June 2017, the Company granted an employee an award of 87,757 shares of common stock that vested immediately on the grant date. The fair value of this award was approximately $2.1 million . In June 2017, the Company also accelerated the expense for 97,797 restricted stock units issued to directors and outstanding prior to June 2017, resulting from a change in the vesting schedule applicable to equity awards granted to the Company’s directors. The total expense associated with these restricted stock units recognized in the three months ended June 30, 2017 was approximately $1.5 million . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | At June 30, 2017 , the Company had various costless collar contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling. Each contract is set to expire at varying times during 2017 and 2018. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at June 30, 2017 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 07/01/2017 - 12/31/2017 2,460,000 $ 45.17 $ 55.75 $ 4,365 Oil 01/01/2018 - 12/31/2018 1,920,000 $ 43.91 $ 63.44 4,990 Natural Gas 07/01/2017 - 12/31/2017 12,540,000 $ 2.51 $ 3.60 (500 ) Natural Gas 01/01/2018 - 12/31/2018 16,800,000 $ 2.58 $ 3.67 12 Total open derivative financial instruments $ 8,867 These derivative financial instruments are subject to master netting arrangements; all but one counterparty allow for cross-commodity master netting provided the settlement 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 interim unaudited condensed 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 interim unaudited condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2017 Current assets $ 10,835 $ (3,768 ) $ 7,067 Other assets 5,066 (2,074 ) 2,992 Current liabilities (4,915 ) 3,723 (1,192 ) Other liabilities (2,074 ) 2,074 — Total $ 8,912 $ (45 ) $ 8,867 December 31, 2016 Current liabilities $ (24,203 ) $ — $ (24,203 ) Other liabilities (751 ) — (751 ) Total $ (24,954 ) $ — $ (24,954 ) The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Six Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2017 2016 2017 2016 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 581 $ 561 $ (1,053 ) $ 6,024 Natural Gas Revenues: Realized (loss) gain on derivatives (23 ) 1,904 (608 ) 3,504 Realized gain (loss) on derivatives 558 2,465 (1,661 ) 9,528 Oil Revenues: Unrealized gain (loss) on derivatives 10,643 (19,319 ) 28,422 (26,974 ) Natural Gas Revenues: Unrealized gain (loss) on derivatives 2,547 (7,306 ) 5,399 (6,490 ) Unrealized gain (loss) on derivatives 13,190 (26,625 ) 33,821 (33,464 ) Total $ 13,748 $ (24,160 ) $ 32,160 $ (23,936 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
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 that 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. 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 June 30, 2017 and December 31, 2016 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil and natural gas derivatives $ — $ 10,059 $ — $ 10,059 Oil and natural gas derivatives — (1,192 ) — (1,192 ) Total $ — $ 8,867 $ — $ 8,867 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Liabilities Oil and natural gas derivatives $ — $ (24,954 ) $ — $ (24,954 ) Total $ — $ (24,954 ) $ — $ (24,954 ) Additional disclosures related to derivative financial instruments are provided in Note 8. Other Fair Value Measurements At June 30, 2017 and December 31, 2016 , the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other assets, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners, amounts due to joint ventures and other current liabilities approximated their fair values due to their short-term maturities. At June 30, 2017 and December 31, 2016 , the fair value of the Notes was $592.3 million and $605.2 million , respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Processing, Transportation and Salt Water Disposal Commitments Eagle Ford 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 $0.5 million and $0.8 million in processing and transportation fees under this agreement during the three months ended June 30, 2017 and 2016 , respectively, and $1.0 million and $1.7 million in processing and transportation fees under this agreement during the six months ended June 30, 2017 and 2016 , respectively. The future undiscounted minimum payment under this agreement as of June 30, 2017 was $0.2 million . Delaware Basin — Loving County, Texas Natural Gas Processing In late 2015, 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 facilities. Under this agreement, if the Company does not meet the volume commitment for transportation and processing at the facilities 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 gathering 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 June 30, 2017 , the total deficiency fee required to be paid would be approximately $11.6 million . In addition, if the Company elects to reduce the gathering 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 gathering 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 $3.7 million and $2.8 million in natural gas processing and gathering fees under this agreement during the three months ended June 30, 2017 and 2016 , respectively, and $6.8 million and $4.7 million in natural gas processing and gathering fees under this agreement during the six months ended June 30, 2017 and 2016 , respectively. The Company can elect to either sell the residue gas to the counterparty at the tailgate of its processing plants or have the counterparty deliver to the Company the residue gas in-kind to be sold to third parties downstream of the plants. Delaware Basin — San Mateo In connection with the Joint Venture, effective as of February 1, 2017, the Company dedicated its current and future leasehold interests in the Rustler Breaks and Wolf asset areas pursuant to 15 -year, fixed-fee natural gas, oil and salt water gathering agreements and salt water disposal agreements. In addition, the Company dedicated its current and future leasehold interests in the Rustler Breaks asset area pursuant to a 15 -year, fixed-fee natural gas processing agreement (collectively with the gathering and salt water disposal agreements, the “Operational Agreements”). The Joint Venture will provide the Company with firm service under each of the Operational Agreements in exchange for certain minimum volume commitments. The minimum contractual obligation under the Operational Agreements at June 30, 2017 was approximately $256.4 million . Beginning in May 2017, a subsidiary of San Mateo entered into certain agreements with third parties for the engineering, procurement, construction and installation of an expansion of the Black River Processing Plant, including required compression. The expansion is expected to be placed into service in 2018. San Mateo’s total commitments under these agreements are $56.9 million . The subsidiary of San Mateo paid approximately $7.9 million and $9.9 million under these agreements during the three and six months ended June 30, 2017 . As of June 30, 2017 , the remaining obligations under these agreements were $47.0 million , which are expected to be incurred within the next year. 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 two years or less. 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 $42.0 million at June 30, 2017 . At June 30, 2017 , 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 $19.7 million at June 30, 2017 . The Company expects these costs to be incurred within the next year. Legal Proceedings The Company is a party to 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 | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Disclosures [Abstract] | |
SUPPLEMENTAL DISCLOSURES | Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at June 30, 2017 and December 31, 2016 (in thousands). June 30, December 31, 2016 Accrued evaluated and unproved and unevaluated property costs $ 98,589 $ 54,273 Accrued support equipment and facilities costs 15,596 15,139 Accrued lease operating expenses 12,613 16,009 Accrued interest on debt 8,345 6,541 Accrued asset retirement obligations 703 915 Accrued partners’ share of joint interest charges 12,479 5,572 Other 3,011 3,011 Total accrued liabilities $ 151,336 $ 101,460 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2017 and 2016 (in thousands). Six Months Ended 2017 2016 Cash paid for interest expense, net of amounts capitalized $ 15,875 $ 12,226 Increase in asset retirement obligations related to mineral properties $ 1,978 $ 2,511 (Decrease) increase in asset retirement obligations related to support equipment and facilities $ (138 ) $ 75 Increase (decrease) in liabilities for oil and natural gas properties capital expenditures $ 43,797 $ (3,476 ) Increase (decrease) in liabilities for support equipment and facilities $ 1,838 $ (11,565 ) Stock-based compensation expense recognized as liability $ (339 ) $ 88 (Decrease) increase in liabilities for accrued cost to issue equity $ (343 ) $ 62 Transfer of inventory from oil and natural gas properties $ (228 ) $ 474 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the acquisition, exploration and development of oil and natural gas properties and is currently 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. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, natural gas, oil and salt water gathering services and salt water disposal services to third parties on a limited basis. As of February 17, 2017, substantially all of the Company’s midstream operations in the Rustler Breaks and Wolf asset areas in the Delaware Basin are conducted through San Mateo (see Note 3). The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2017 Oil and natural gas revenues $ 113,387 $ 377 $ — $ — $ 113,764 Midstream services revenues — 11,367 — (9,268 ) 2,099 Realized gain on derivatives 558 — — — 558 Unrealized gain on derivatives 13,190 — — — 13,190 Expenses (1) 78,078 5,960 15,852 (9,268 ) 90,622 Operating income (loss) (2) $ 49,057 $ 5,784 $ (15,852 ) $ — $ 38,989 Total assets $ 1,436,678 $ 192,889 $ 147,509 $ — $ 1,777,076 Capital expenditures (3) $ 165,583 $ 27,347 $ 1,752 $ — $ 194,682 _____________________ (1) Includes depletion, depreciation and amortization expenses of $39.6 million and $1.3 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.4 million . (2) Includes $3.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $13.4 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2016 Oil and natural gas revenues $ 68,864 $ 472 $ — $ — $ 69,336 Midstream services revenues — 3,469 — (2,551 ) 918 Realized gain on derivatives 2,465 — — — 2,465 Unrealized loss on derivatives (26,625 ) — — — (26,625 ) Expenses (1) 134,338 1,562 13,356 (2,551 ) 146,705 Operating (loss) income (2) $ (89,634 ) $ 2,379 $ (13,356 ) $ — $ (100,611 ) Total assets $ 927,557 $ 106,425 $ 52,106 $ — $ 1,086,088 Capital expenditures $ 97,309 $ 11,192 $ 2,328 $ — $ 110,829 _____________________ (1) Includes depletion, depreciation and amortization expenses of $30.6 million and $0.5 million for the exploration and production and midstream segments, respectively, and full-cost ceiling impairment expenses of $78.2 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.2 million . (2) Includes $106,000 in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Six Months Ended June 30, 2017 Oil and natural gas revenues $ 227,552 $ 1,059 $ — $ — $ 228,611 Midstream services revenues — 20,983 — (17,329 ) 3,654 Realized loss on derivatives (1,661 ) — — — (1,661 ) Unrealized gain on derivatives 33,821 — — — 33,821 Expenses (1) 146,416 10,462 31,608 (17,329 ) 171,157 Operating income (loss) (2) $ 113,296 $ 11,580 $ (31,608 ) $ — $ 93,268 Total assets $ 1,436,678 $ 192,889 $ 147,509 $ — $ 1,777,076 Capital expenditures (3) $ 373,956 $ 40,227 $ 3,216 $ — $ 417,399 _____________________ (1) Includes depletion, depreciation and amortization expenses of $72.1 million and $2.5 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million . (2) Includes $5.1 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $18.6 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Six Months Ended June 30, 2016 Oil and natural gas revenues $ 112,672 $ 590 $ — $ — $ 113,262 Midstream services revenues — 5,560 — (4,169 ) 1,391 Realized gain on derivatives 9,528 — — — 9,528 Unrealized loss on derivatives (33,464 ) — — — (33,464 ) Expenses (1) 267,365 3,096 26,665 (4,169 ) 292,957 Operating (loss) income (2) $ (178,629 ) $ 3,054 $ (26,665 ) $ — $ (202,240 ) Total assets $ 927,557 $ 106,425 $ 52,106 $ — $ 1,086,088 Capital expenditures $ 162,116 $ 32,250 $ 3,582 $ — $ 197,948 _____________________ (1) Includes depletion, depreciation and amortization expenses of $58.9 million and $1.0 million for the exploration and production and midstream segments, respectively, and full-cost ceiling impairment expenses of $158.6 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million . (2) Includes $93,000 in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates | Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of Matador and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “Annual Report”) filed with the SEC. The Company consolidates certain subsidiaries and joint ventures that are less than wholly owned and are not involved in oil and natural gas exploration, including San Mateo, 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 accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments, consisting only of normal, recurring adjustments, which are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of June 30, 2017 . Amounts as of December 31, 2016 are derived from the Company’s audited consolidated financial statements in the Annual Report. 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. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including accruals for oil and natural gas revenues, accrued assets and liabilities primarily related to oil and natural gas operations, stock-based compensation, valuation of derivative instruments 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. 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. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Early adoption is permitted for fiscal years beginning after December 15, 2016. In May 2016, the FASB issued ASU 2016-11, which rescinds guidance from the SEC on accounting for gas balancing arrangements and will eliminate the use of the entitlements method. Entities have the option of using either a full retrospective or modified approach to adopt the new standards. In December 2016, the FASB issued ASU 2016-20, which clarifies disclosure requirements in ASU 2014-09. The Company expects to adopt the new guidance effective January 1, 2018 using the modified approach. The Company is evaluating the new guidance, including (i) identification of revenue streams and (ii) review of contracts and procedures currently in place. Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. This ASU will become effective for fiscal years beginning after December 15, 2018 with early adoption permitted. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. Statement of Cash Flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) , which specifies that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The update should be applied using a retrospective transition method to each period presented. The Company believes that the impact of the adoption of this ASU will change the presentation of its beginning and ending cash balances on its Consolidated Statements of Cash Flows and eliminate the presentation of changes in restricted cash balances from investing activities on its Consolidated Statements of Cash Flows. Clarifying the Definition of a Business. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) , which specifies the minimum inputs and processes required for an integrated set of assets and activities to meet the definition of a business. This ASU will become effective for fiscal years beginning after December 15, 2017 with early adoption permitted. Entities are required to apply guidance prospectively upon adoption. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. |
Property and Equipment | Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12 -month period. For the three and six months ended June 30, 2017 , the cost center ceiling was higher than the capitalized costs of oil and natural gas properties; no impairment charge was necessary. However, due primarily to declines in oil and natural gas prices in early 2016, the capitalized costs of oil and natural gas properties exceeded the cost center ceiling for the three and six months ended June 30, 2016 , and as a result, the Company recorded impairment charges to its net capitalized costs of $78.2 million and $158.6 million , respectively, in its interim unaudited condensed consolidated statements of operations. |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common Share The Company reports basic earnings (loss) attributable to Matador Resources Company shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings (loss) attributable to Matador Resources Company shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Reconciliations of basic and diluted distributed and undistributed earnings (loss) per common share | The following table sets forth the computation of diluted weighted average common shares outstanding for the three and six months ended June 30, 2017 and 2016 (in thousands). Three Months Ended Six Months Ended 2017 2016 2017 2016 Weighted average common shares outstanding Basic 100,211 92,346 100,005 88,826 Dilutive effect of options and restricted stock units 16 — 450 — Diluted weighted average common shares outstanding 100,227 92,346 100,455 88,826 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 (in thousands). Beginning asset retirement obligations $ 20,640 Liabilities incurred during period 1,222 Liabilities settled during period (176 ) Revisions in estimated cash flows 794 Accretion expense 614 Ending asset retirement obligations 23,094 Less: current asset retirement obligations (1) (703 ) Long-term asset retirement obligations $ 22,391 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2017 . |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Condensed Balance Sheet | The following presents condensed consolidating financial information on an issuer (Matador), Non-Guarantor Subsidiaries, Guarantor Subsidiaries and consolidated basis (in thousands). Elimination entries are necessary to combine the entities. This financial information is presented in accordance with the requirements of Rule 3-10 of Regulation S-X. The following financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 385,885 $ — $ 1,679 $ (387,564 ) $ — Third-party current assets 2,944 16,953 226,890 — 246,787 Net property and equipment — 151,331 1,375,173 — 1,526,504 Investment in subsidiaries 1,083,542 — 75,585 (1,159,127 ) — Third-party long-term assets — — 3,785 — 3,785 Total assets $ 1,472,371 $ 168,284 $ 1,683,112 $ (1,546,691 ) $ 1,777,076 LIABILITIES AND EQUITY Intercompany payable $ — $ 1,679 $ 385,885 $ (387,564 ) $ — Third-party current liabilities 8,640 17,753 185,791 — 212,184 Senior unsecured notes payable 573,988 — — — 573,988 Other third-party long-term liabilities — 639 27,894 — 28,533 Total equity attributable to Matador Resources Company 889,743 75,584 1,083,542 (1,159,127 ) 889,742 Non-controlling interest in subsidiaries — 72,629 — — 72,629 Total liabilities and equity $ 1,472,371 $ 168,284 $ 1,683,112 $ (1,546,691 ) $ 1,777,076 Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 316,791 $ 3,571 $ 12,091 $ (332,453 ) $ — Third-party current assets 101,102 4,242 173,838 — 279,182 Net property and equipment 33 113,107 1,071,385 — 1,184,525 Investment in subsidiaries 856,762 — 90,275 (947,037 ) — Third-party long-term assets — — 958 — 958 Total assets $ 1,274,688 $ 120,920 $ 1,348,547 $ (1,279,490 ) $ 1,464,665 LIABILITIES AND EQUITY Intercompany payable $ — $ 12,091 $ 320,362 $ (332,453 ) $ — Third-party current liabilities 9,265 16,632 143,608 — 169,505 Senior unsecured notes payable 573,924 — — — 573,924 Other third-party long-term liabilities 1,374 602 27,815 — 29,791 Total equity attributable to Matador Resources Company 690,125 90,275 856,762 (947,037 ) 690,125 Non-controlling interest in subsidiaries — 1,320 — — 1,320 Total liabilities and equity $ 1,274,688 $ 120,920 $ 1,348,547 $ (1,279,490 ) $ 1,464,665 |
Condensed Income Statement | Condensed Consolidating Statement of Operations For the Three Months Ended June 30, 2017 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 11,274 $ 127,198 $ (8,861 ) $ 129,611 Total expenses 1,586 4,814 93,083 (8,861 ) 90,622 Operating (loss) income (1,586 ) 6,460 34,115 — 38,989 Net gain on asset sales and inventory impairment — — — — — Interest expense (9,224 ) — — — (9,224 ) Other income (27 ) 26 1,923 — 1,922 Earnings in subsidiaries 39,228 — 3,244 (42,472 ) — Income before income taxes 28,391 6,486 39,282 (42,472 ) 31,687 Total income tax (benefit) provision (118 ) 64 54 — — Net income attributable to non-controlling interest in subsidiaries — (3,178 ) — — (3,178 ) Net income attributable to Matador Resources Company shareholders $ 28,509 $ 3,244 $ 39,228 $ (42,472 ) $ 28,509 Condensed Consolidating Statement of Operations For the Three Months Ended June 30, 2016 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 3,210 $ 44,778 $ (1,894 ) $ 46,094 Total expenses 1,032 1,244 146,323 (1,894 ) 146,705 Operating (loss) income (1,032 ) 1,966 (101,545 ) — (100,611 ) Net gain on asset sales and inventory impairment — — 1,002 — 1,002 Interest expense (6,167 ) — — — (6,167 ) Other income — — 29 — 29 (Loss) earnings in subsidiaries (98,672 ) — 1,842 96,830 — (Loss) income before income taxes (105,871 ) 1,966 (98,672 ) 96,830 (105,747 ) Total income tax (benefit) provision (18 ) 18 — — — Net income attributable to non-controlling interest in subsidiaries — (106 ) — — (106 ) Net (loss) income attributable to Matador Resources Company shareholders $ (105,853 ) $ 1,842 $ (98,672 ) $ 96,830 $ (105,853 ) Condensed Consolidating Statement of Operations For the Six Months Ended June 30, 2017 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 20,937 $ 259,846 $ (16,358 ) $ 264,425 Total expenses 2,846 8,682 175,987 (16,358 ) 171,157 Operating (loss) income (2,846 ) 12,255 83,859 — 93,268 Net gain on asset sales and inventory impairment — — 7 — 7 Interest expense (17,679 ) — — — (17,679 ) Other income — 26 1,965 — 1,991 Earnings in subsidiaries 92,900 — 7,069 (99,969 ) — Income before income taxes 72,375 12,281 92,900 (99,969 ) 77,587 Total income tax (benefit) provision (118 ) 118 — — — Net income attributable to non-controlling interest in subsidiaries — (5,094 ) — — (5,094 ) Net income attributable to Matador Resources Company shareholders $ 72,493 $ 7,069 $ 92,900 $ (99,969 ) $ 72,493 Condensed Consolidating Statement of Operations For the Six Months Ended June 30, 2016 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 4,527 $ 88,825 $ (2,635 ) $ 90,717 Total expenses 2,967 2,377 290,248 (2,635 ) 292,957 Operating (loss) income (2,967 ) 2,150 (201,423 ) — (202,240 ) Net gain on asset sales and inventory impairment — — 2,067 — 2,067 Interest expense (13,365 ) — — — (13,365 ) Other income — — 124 — 124 (Loss) earnings in subsidiaries (197,200 ) — 2,032 195,168 — Income before income taxes (213,532 ) 2,150 (197,200 ) 195,168 (213,414 ) Total income tax (benefit) provision (25 ) 25 — — — Net income attributable to non-controlling interest in subsidiaries — (93 ) — — (93 ) Net (loss) income attributable to Matador Resources Company shareholders $ (213,507 ) $ 2,032 $ (197,200 ) $ 195,168 $ (213,507 ) |
Condensed Cash Flow Statement | Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2017 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (98,583 ) $ 1,566 $ 218,259 $ — $ 121,242 Net cash provided by (used in) investing activities 33 (51,580 ) (198,051 ) (133,880 ) (383,478 ) Net cash provided by (used in) financing activities — 47,707 (769 ) 133,880 180,818 (Decrease) increase in cash (98,550 ) (2,307 ) 19,439 — (81,418 ) Cash at beginning of period 99,795 2,307 110,782 — 212,884 Cash at end of period $ 1,245 $ — $ 130,221 $ — $ 131,466 Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2016 Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (24,519 ) $ (6,198 ) $ 80,317 $ — $ 49,600 Net cash used in investing activities (117,086 ) (44,074 ) (172,108 ) 167,236 (166,032 ) Net cash provided by financing activities 141,582 50,150 116,077 (167,236 ) 140,573 (Decrease) increase in cash (23 ) (122 ) 24,286 — 24,141 Cash at beginning of period 80 186 16,466 — 16,732 Cash at end of period $ 57 $ 64 $ 40,752 $ — $ 40,873 |
Derivative Financial Instrume23
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Open Option Contracts Written [Line Items] | |
Summary of gross asset balances of derivative instruments | 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 interim unaudited condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2017 Current assets $ 10,835 $ (3,768 ) $ 7,067 Other assets 5,066 (2,074 ) 2,992 Current liabilities (4,915 ) 3,723 (1,192 ) Other liabilities (2,074 ) 2,074 — Total $ 8,912 $ (45 ) $ 8,867 December 31, 2016 Current liabilities $ (24,203 ) $ — $ (24,203 ) Other liabilities (751 ) — (751 ) Total $ (24,954 ) $ — $ (24,954 ) |
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 interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Six Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2017 2016 2017 2016 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 581 $ 561 $ (1,053 ) $ 6,024 Natural Gas Revenues: Realized (loss) gain on derivatives (23 ) 1,904 (608 ) 3,504 Realized gain (loss) on derivatives 558 2,465 (1,661 ) 9,528 Oil Revenues: Unrealized gain (loss) on derivatives 10,643 (19,319 ) 28,422 (26,974 ) Natural Gas Revenues: Unrealized gain (loss) on derivatives 2,547 (7,306 ) 5,399 (6,490 ) Unrealized gain (loss) on derivatives 13,190 (26,625 ) 33,821 (33,464 ) Total $ 13,748 $ (24,160 ) $ 32,160 $ (23,936 ) |
Open costless collar contracts | |
Open Option Contracts Written [Line Items] | |
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 June 30, 2017 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 07/01/2017 - 12/31/2017 2,460,000 $ 45.17 $ 55.75 $ 4,365 Oil 01/01/2018 - 12/31/2018 1,920,000 $ 43.91 $ 63.44 4,990 Natural Gas 07/01/2017 - 12/31/2017 12,540,000 $ 2.51 $ 3.60 (500 ) Natural Gas 01/01/2018 - 12/31/2018 16,800,000 $ 2.58 $ 3.67 12 Total open derivative financial instruments $ 8,867 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil and natural gas derivatives $ — $ 10,059 $ — $ 10,059 Oil and natural gas derivatives — (1,192 ) — (1,192 ) Total $ — $ 8,867 $ — $ 8,867 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Liabilities Oil and natural gas derivatives $ — $ (24,954 ) $ — $ (24,954 ) Total $ — $ (24,954 ) $ — $ (24,954 ) |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Disclosures [Abstract] | |
Summary of current accrued liabilities | The following table summarizes the Company’s current accrued liabilities at June 30, 2017 and December 31, 2016 (in thousands). June 30, December 31, 2016 Accrued evaluated and unproved and unevaluated property costs $ 98,589 $ 54,273 Accrued support equipment and facilities costs 15,596 15,139 Accrued lease operating expenses 12,613 16,009 Accrued interest on debt 8,345 6,541 Accrued asset retirement obligations 703 915 Accrued partners’ share of joint interest charges 12,479 5,572 Other 3,011 3,011 Total accrued liabilities $ 151,336 $ 101,460 |
Supplemental disclosures of cash flow information | The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2017 and 2016 (in thousands). Six Months Ended 2017 2016 Cash paid for interest expense, net of amounts capitalized $ 15,875 $ 12,226 Increase in asset retirement obligations related to mineral properties $ 1,978 $ 2,511 (Decrease) increase in asset retirement obligations related to support equipment and facilities $ (138 ) $ 75 Increase (decrease) in liabilities for oil and natural gas properties capital expenditures $ 43,797 $ (3,476 ) Increase (decrease) in liabilities for support equipment and facilities $ 1,838 $ (11,565 ) Stock-based compensation expense recognized as liability $ (339 ) $ 88 (Decrease) increase in liabilities for accrued cost to issue equity $ (343 ) $ 62 Transfer of inventory from oil and natural gas properties $ (228 ) $ 474 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Selected financial information for segments | The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2017 Oil and natural gas revenues $ 113,387 $ 377 $ — $ — $ 113,764 Midstream services revenues — 11,367 — (9,268 ) 2,099 Realized gain on derivatives 558 — — — 558 Unrealized gain on derivatives 13,190 — — — 13,190 Expenses (1) 78,078 5,960 15,852 (9,268 ) 90,622 Operating income (loss) (2) $ 49,057 $ 5,784 $ (15,852 ) $ — $ 38,989 Total assets $ 1,436,678 $ 192,889 $ 147,509 $ — $ 1,777,076 Capital expenditures (3) $ 165,583 $ 27,347 $ 1,752 $ — $ 194,682 _____________________ (1) Includes depletion, depreciation and amortization expenses of $39.6 million and $1.3 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.4 million . (2) Includes $3.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $13.4 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2016 Oil and natural gas revenues $ 68,864 $ 472 $ — $ — $ 69,336 Midstream services revenues — 3,469 — (2,551 ) 918 Realized gain on derivatives 2,465 — — — 2,465 Unrealized loss on derivatives (26,625 ) — — — (26,625 ) Expenses (1) 134,338 1,562 13,356 (2,551 ) 146,705 Operating (loss) income (2) $ (89,634 ) $ 2,379 $ (13,356 ) $ — $ (100,611 ) Total assets $ 927,557 $ 106,425 $ 52,106 $ — $ 1,086,088 Capital expenditures $ 97,309 $ 11,192 $ 2,328 $ — $ 110,829 _____________________ (1) Includes depletion, depreciation and amortization expenses of $30.6 million and $0.5 million for the exploration and production and midstream segments, respectively, and full-cost ceiling impairment expenses of $78.2 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.2 million . (2) Includes $106,000 in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Six Months Ended June 30, 2017 Oil and natural gas revenues $ 227,552 $ 1,059 $ — $ — $ 228,611 Midstream services revenues — 20,983 — (17,329 ) 3,654 Realized loss on derivatives (1,661 ) — — — (1,661 ) Unrealized gain on derivatives 33,821 — — — 33,821 Expenses (1) 146,416 10,462 31,608 (17,329 ) 171,157 Operating income (loss) (2) $ 113,296 $ 11,580 $ (31,608 ) $ — $ 93,268 Total assets $ 1,436,678 $ 192,889 $ 147,509 $ — $ 1,777,076 Capital expenditures (3) $ 373,956 $ 40,227 $ 3,216 $ — $ 417,399 _____________________ (1) Includes depletion, depreciation and amortization expenses of $72.1 million and $2.5 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million . (2) Includes $5.1 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $18.6 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Six Months Ended June 30, 2016 Oil and natural gas revenues $ 112,672 $ 590 $ — $ — $ 113,262 Midstream services revenues — 5,560 — (4,169 ) 1,391 Realized gain on derivatives 9,528 — — — 9,528 Unrealized loss on derivatives (33,464 ) — — — (33,464 ) Expenses (1) 267,365 3,096 26,665 (4,169 ) 292,957 Operating (loss) income (2) $ (178,629 ) $ 3,054 $ (26,665 ) $ — $ (202,240 ) Total assets $ 927,557 $ 106,425 $ 52,106 $ — $ 1,086,088 Capital expenditures $ 162,116 $ 32,250 $ 3,582 $ — $ 197,948 _____________________ (1) Includes depletion, depreciation and amortization expenses of $58.9 million and $1.0 million for the exploration and production and midstream segments, respectively, and full-cost ceiling impairment expenses of $158.6 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million . (2) Includes $93,000 in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Third-party midstream services revenues | $ 2,099 | $ 918 | $ 3,654 | $ 1,391 |
Plant and other midstream services operating | 2,942 | 1,061 | $ 5,283 | 2,088 |
Discount rate present value of future revenue from proved oil and gas reserves | 10.00% | |||
Full-cost ceiling impairment | 0 | 78,171 | $ 0 | 158,633 |
Capitalized general and administrative costs | 5,200 | 4,000 | 10,800 | 6,000 |
Capitalized interest expense | $ 1,900 | 1,700 | $ 3,200 | 2,200 |
Reclassification from Other Income to Third-Party Midstream Services Revenue [Member] | Restatement Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Third-party midstream services revenues | 900 | 1,400 | ||
Reclassification from Lease Operating Expenses to Plant and Other Midstream Services Operating Expenses [Member] | Restatement Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Plant and other midstream services operating | $ 1,100 | $ 2,100 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares outstanding for basic earnings (loss) per share | 100,211 | 92,346 | 100,005 | 88,826 |
Dilutive effect of options and restricted stock units | 16 | 0 | 450 | 0 |
Diluted weighted average common shares outstanding | 100,227 | 92,346 | 100,455 | 88,826 |
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from earnings per share calculations because their effects would be anti-dilutive | 2,900 | |||
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from earnings per share calculations because their effects would be anti-dilutive | 100 | |||
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from earnings per share calculations because their effects would be anti-dilutive | 900 |
Business Combination (Details)
Business Combination (Details) $ in Thousands | Feb. 17, 2017USD ($)well | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||
Contributions related to formation of Joint Venture | $ 171,500 | $ 0 | |
Corporate Joint Venture [Member] | San Mateo Midstream [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 51.00% | 51.00% | |
Deferred performance incentives | $ 73,500 | ||
Deferred performance incentives term | 5 years | ||
Cash contributed to joint venture | $ 5,100 | ||
Additional cost commitment | $ 140,000 | ||
Corporate Joint Venture [Member] | San Mateo Midstream [Member] | Rustler Breaks Asset Area [Member] | |||
Business Acquisition [Line Items] | |||
Number of wells contributed to joint venture | well | 1 | ||
Term of contractual obligation | 15 years | ||
Corporate Joint Venture [Member] | San Mateo Midstream [Member] | Wolf Asset Area [Member] | |||
Business Acquisition [Line Items] | |||
Number of wells contributed to joint venture | well | 3 | ||
Corporate Joint Venture [Member] | San Mateo Midstream [Member] | Rustler Breaks and Wolf Asset Area [Member] | |||
Business Acquisition [Line Items] | |||
Term of contractual obligation | 15 years | ||
Five Point [Member] | Corporate Joint Venture [Member] | San Mateo Midstream [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 49.00% | ||
Payments to acquire interest in joint venture | $ 176,400 | ||
Contributions related to formation of Joint Venture | $ 171,500 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Changes in the Company's asset retirement obligations | ||||||
Beginning asset retirement obligations | $ 20,640 | |||||
Liabilities incurred during period | 1,222 | |||||
Liabilities settled during period | (176) | |||||
Revisions in estimated cash flows | 794 | |||||
Accretion expense | $ 314 | $ 289 | 614 | $ 552 | ||
Ending asset retirement obligations | 23,094 | 23,094 | ||||
Less: current asset retirement obligations | [1] | (703) | (703) | |||
Long-term asset retirement obligations | $ 22,391 | $ 22,391 | $ 19,725 | |||
[1] | Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2017. |
Debt (Details)
Debt (Details) - USD ($) | May 24, 2017 | Jun. 30, 2017 | Aug. 02, 2017 | Apr. 28, 2017 | Feb. 17, 2017 | Dec. 31, 2016 | Dec. 09, 2016 | Apr. 14, 2015 |
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Senior unsecured notes | $ 573,988,000 | $ 573,924,000 | ||||||
Deferred loan costs | $ 1,100,000 | |||||||
Repay deficit in agreement period | 6 months | |||||||
Third Amended Credit Agreement [Member] | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Amended maximum borrowing capacity | $ 500,000,000 | |||||||
Senior Notes | Senior Notes Due 2023 | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Senior unsecured notes | $ 575,000,000 | $ 175,000,000 | $ 400,000,000 | |||||
Interest rate | 6.875% | 6.875% | 6.875% | 6.875% | ||||
Debt exchanged | $ 175,000,000 | |||||||
Subsequent Event [Member] | Senior Notes | Senior Notes Due 2023 | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Senior unsecured notes | $ 575,000,000 | |||||||
Interest rate | 6.875% | |||||||
Revolving Credit Facility [Member] | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Borrowings under Credit Agreement | $ 0 | |||||||
Maximum borrowing capacity | 400,000,000 | $ 450,000,000 | ||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Borrowings under Credit Agreement | $ 0 | |||||||
Letter of Credit [Member] | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Outstanding letters of credit | $ 800,000 | |||||||
Letter of Credit [Member] | Subsequent Event [Member] | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Outstanding letters of credit | $ 800,000 | |||||||
Corporate Joint Venture [Member] | San Mateo Midstream [Member] | ||||||||
Revolving Credit Agreement (Textual) [Abstract] | ||||||||
Ownership percentage | 51.00% | 51.00% |
Debt (Details 2)
Debt (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | $ 0 | $ 0 | |
Third-party current assets | 246,787 | 279,182 | |
Net property and equipment | 1,526,504 | 1,184,525 | |
Investment in subsidiaries | 0 | 0 | |
Third-party long-term assets | 3,785 | 958 | |
Total assets | 1,777,076 | 1,464,665 | $ 1,086,088 |
Intercompany payable | 0 | 0 | |
Third-party current liabilities | 212,184 | 169,505 | |
Senior unsecured notes payable | 573,988 | 573,924 | |
Other third-party long-term liabilities | 28,533 | 29,791 | |
Total equity attributable to Matador Resources Company | 889,742 | 690,125 | |
Non-controlling interest in subsidiaries | 72,629 | 1,320 | |
Total liabilities and shareholders’ equity | 1,777,076 | 1,464,665 | |
Eliminating Entries [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | (387,564) | (332,453) | |
Third-party current assets | 0 | 0 | |
Net property and equipment | 0 | 0 | |
Investment in subsidiaries | (1,159,127) | (947,037) | |
Third-party long-term assets | 0 | 0 | |
Total assets | (1,546,691) | (1,279,490) | |
Intercompany payable | (387,564) | (332,453) | |
Third-party current liabilities | 0 | 0 | |
Senior unsecured notes payable | 0 | 0 | |
Other third-party long-term liabilities | 0 | 0 | |
Total equity attributable to Matador Resources Company | (1,159,127) | (947,037) | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and shareholders’ equity | (1,546,691) | (1,279,490) | |
Matador [Member] | Reportable Legal Entities [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 385,885 | 316,791 | |
Third-party current assets | 2,944 | 101,102 | |
Net property and equipment | 0 | 33 | |
Investment in subsidiaries | 1,083,542 | 856,762 | |
Third-party long-term assets | 0 | 0 | |
Total assets | 1,472,371 | 1,274,688 | |
Intercompany payable | 0 | 0 | |
Third-party current liabilities | 8,640 | 9,265 | |
Senior unsecured notes payable | 573,988 | 573,924 | |
Other third-party long-term liabilities | 0 | 1,374 | |
Total equity attributable to Matador Resources Company | 889,743 | 690,125 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and shareholders’ equity | 1,472,371 | 1,274,688 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 0 | 3,571 | |
Third-party current assets | 16,953 | 4,242 | |
Net property and equipment | 151,331 | 113,107 | |
Investment in subsidiaries | 0 | 0 | |
Third-party long-term assets | 0 | 0 | |
Total assets | 168,284 | 120,920 | |
Intercompany payable | 1,679 | 12,091 | |
Third-party current liabilities | 17,753 | 16,632 | |
Senior unsecured notes payable | 0 | 0 | |
Other third-party long-term liabilities | 639 | 602 | |
Total equity attributable to Matador Resources Company | 75,584 | 90,275 | |
Non-controlling interest in subsidiaries | 72,629 | 1,320 | |
Total liabilities and shareholders’ equity | 168,284 | 120,920 | |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 1,679 | 12,091 | |
Third-party current assets | 226,890 | 173,838 | |
Net property and equipment | 1,375,173 | 1,071,385 | |
Investment in subsidiaries | 75,585 | 90,275 | |
Third-party long-term assets | 3,785 | 958 | |
Total assets | 1,683,112 | 1,348,547 | |
Intercompany payable | 385,885 | 320,362 | |
Third-party current liabilities | 185,791 | 143,608 | |
Senior unsecured notes payable | 0 | 0 | |
Other third-party long-term liabilities | 27,894 | 27,815 | |
Total equity attributable to Matador Resources Company | 1,083,542 | 856,762 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and shareholders’ equity | $ 1,683,112 | $ 1,348,547 |
Debt (Details 3)
Debt (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | $ 129,611 | $ 46,094 | $ 264,425 | $ 90,717 |
Total expenses | 90,622 | 146,705 | 171,157 | 292,957 |
Operating income (loss) | 38,989 | (100,611) | 93,268 | (202,240) |
Net gain on asset sales and inventory impairment | 0 | 1,002 | 7 | 2,067 |
Interest expense | (9,224) | (6,167) | (17,679) | (13,365) |
Other income | 1,922 | 29 | 1,991 | 124 |
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 31,687 | (105,747) | 77,587 | (213,414) |
Total income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income attributable to non-controlling interest in subsidiaries | (3,178) | (106) | (5,094) | (93) |
Net income (loss) attributable to Matador Resources Company shareholders | 28,509 | (105,853) | 72,493 | (213,507) |
Eliminating Entries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | (8,861) | (1,894) | (16,358) | (2,635) |
Total expenses | (8,861) | (1,894) | (16,358) | (2,635) |
Net gain on asset sales and inventory impairment | 0 | 0 | 0 | 0 |
Earnings in subsidiaries | (42,472) | 96,830 | (99,969) | 195,168 |
Net income (loss) | (42,472) | 96,830 | (99,969) | 195,168 |
Total income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Matador Resources Company shareholders | (42,472) | 96,830 | (99,969) | 195,168 |
Matador [Member] | Reportable Legal Entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total expenses | 1,586 | 1,032 | 2,846 | 2,967 |
Operating income (loss) | (1,586) | (1,032) | (2,846) | (2,967) |
Net gain on asset sales and inventory impairment | 0 | 0 | ||
Interest expense | (9,224) | (6,167) | (17,679) | (13,365) |
Other income | (27) | |||
Earnings in subsidiaries | 39,228 | (98,672) | 92,900 | (197,200) |
Net income (loss) | 28,391 | (105,871) | 72,375 | (213,532) |
Total income tax (benefit) provision | (118) | (18) | (118) | (25) |
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Matador Resources Company shareholders | 28,509 | (105,853) | 72,493 | (213,507) |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 11,274 | 3,210 | 20,937 | 4,527 |
Total expenses | 4,814 | 1,244 | 8,682 | 2,377 |
Operating income (loss) | 6,460 | 1,966 | 12,255 | 2,150 |
Net gain on asset sales and inventory impairment | 0 | 0 | 0 | 0 |
Other income | 26 | 26 | ||
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 6,486 | 1,966 | 12,281 | 2,150 |
Total income tax (benefit) provision | 64 | 18 | 118 | 25 |
Net income attributable to non-controlling interest in subsidiaries | (3,178) | (106) | (5,094) | (93) |
Net income (loss) attributable to Matador Resources Company shareholders | 3,244 | 1,842 | 7,069 | 2,032 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 127,198 | 44,778 | 259,846 | 88,825 |
Total expenses | 93,083 | 146,323 | 175,987 | 290,248 |
Operating income (loss) | 34,115 | (101,545) | 83,859 | (201,423) |
Net gain on asset sales and inventory impairment | 0 | 1,002 | 7 | 2,067 |
Other income | 1,923 | 29 | 1,965 | 124 |
Earnings in subsidiaries | 3,244 | 1,842 | 7,069 | 2,032 |
Net income (loss) | 39,282 | (98,672) | 92,900 | (197,200) |
Total income tax (benefit) provision | 54 | 0 | 0 | 0 |
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Matador Resources Company shareholders | $ 39,228 | $ (98,672) | $ 92,900 | $ (197,200) |
Debt (Details 4)
Debt (Details 4) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ 121,242 | $ 49,600 |
Net cash provided by (used in) investing activities | (383,478) | (166,032) |
Net cash provided by (used in) financing activities | 180,818 | 140,573 |
(Decrease) increase in cash | (81,418) | 24,141 |
Cash at beginning of period | 212,884 | 16,732 |
Cash at end of period | 131,466 | 40,873 |
Eliminating Entries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Net cash provided by (used in) investing activities | (133,880) | 167,236 |
Net cash provided by (used in) financing activities | 133,880 | (167,236) |
(Decrease) increase in cash | 0 | 0 |
Cash at beginning of period | 0 | 0 |
Cash at end of period | 0 | 0 |
Matador [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (98,583) | (24,519) |
Net cash provided by (used in) investing activities | 33 | (117,086) |
Net cash provided by (used in) financing activities | 0 | 141,582 |
(Decrease) increase in cash | (98,550) | (23) |
Cash at beginning of period | 99,795 | 80 |
Cash at end of period | 1,245 | 57 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 1,566 | (6,198) |
Net cash provided by (used in) investing activities | (51,580) | (44,074) |
Net cash provided by (used in) financing activities | 47,707 | 50,150 |
(Decrease) increase in cash | (2,307) | (122) |
Cash at beginning of period | 2,307 | 186 |
Cash at end of period | 0 | 64 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 218,259 | 80,317 |
Net cash provided by (used in) investing activities | (198,051) | (172,108) |
Net cash provided by (used in) financing activities | (769) | 116,077 |
(Decrease) increase in cash | 19,439 | 24,286 |
Cash at beginning of period | 110,782 | 16,466 |
Cash at end of period | $ 130,221 | $ 40,752 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 01, 2017 | Feb. 16, 2017 | Feb. 15, 2017 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted in period | 444,491 | 590,128 | ||
Share Price | $ 27.26 | |||
Fair value | $ 9.3 | $ 12.4 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted in period | 174,561 | 228,174 | ||
Share Price | $ 26.86 | |||
Vesting period of shares | 3 years | 3 years | ||
Accelerated vesting (in shares) | 97,797 | |||
Accelerated vesting compensation expense | $ 1.5 | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted in period | 87,757 | |||
Fair value | $ 2.1 |
Derivative Financial Instrume36
Derivative Financial Instruments (Details) - Open costless collar contracts $ in Thousands | Jun. 30, 2017USD ($)MMBTUbbl$ / bbl$ / MMBTU |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ 8,867 |
Oil, Calculation Period 04/01/2017 - 12/31/2017 | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 2,460,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / bbl | 45.17 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / bbl | 55.75 |
Fair Value of Asset (Liability) | $ 4,365 |
Oil, Calculation Period 01/01/2018 - 12/31/2018 | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 1,920,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / bbl | 43.91 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / bbl | 63.44 |
Fair Value of Asset (Liability) | $ 4,990 |
Natural Gas, Calculation Period 04/01/2017 - 12/31/2017 | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | MMBTU | 12,540,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / MMBTU | 2.51 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / MMBTU | 3.60 |
Fair Value of Asset (Liability) | $ (500) |
Natural Gas, Calculation Period 01/01/2018 - 12/31/2018 | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | MMBTU | 16,800,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / MMBTU | 2.58 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / MMBTU | 3.67 |
Fair Value of Asset (Liability) | $ 12 |
Derivative Financial Instrume37
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Summary of gross liability balances of derivative instruments | ||
Total | $ 8,912 | $ (24,954) |
Gross amounts netted in the condensed consolidated balance sheets | (45) | 0 |
Net amounts presented in the condensed consolidated balance sheets | 8,867 | (24,954) |
Current assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 10,835 | |
Gross amounts netted in the condensed consolidated balance sheets | (3,768) | |
Oil, natural gas and natural gas liquids (NGL) derivatives | 7,067 | |
Other assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 5,066 | |
Gross amounts netted in the condensed consolidated balance sheets | (2,074) | |
Oil, natural gas and natural gas liquids (NGL) derivatives | 2,992 | |
Current liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (4,915) | (24,203) |
Gross amounts netted in the condensed consolidated balance sheet | 3,723 | 0 |
Oil, natural gas and natural gas liquids (NGL) derivatives | (1,192) | (24,203) |
Other liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (2,074) | (751) |
Gross amounts netted in the condensed consolidated balance sheet | 2,074 | 0 |
Oil, natural gas and natural gas liquids (NGL) derivatives | $ 0 | $ (751) |
Derivative Financial Instrume38
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | $ 558 | $ 2,465 | $ (1,661) | $ 9,528 |
Unrealized gain (loss) on derivatives | 13,190 | (26,625) | 33,821 | (33,464) |
Total | 13,748 | (24,160) | 32,160 | (23,936) |
Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 558 | 2,465 | (1,661) | 9,528 |
Unrealized gain (loss) on derivatives | 13,190 | (26,625) | 33,821 | (33,464) |
Oil | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 581 | 561 | (1,053) | 6,024 |
Unrealized gain (loss) on derivatives | 10,643 | (19,319) | 28,422 | (26,974) |
Natural Gas | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | (23) | 1,904 | (608) | 3,504 |
Unrealized gain (loss) on derivatives | $ 2,547 | $ (7,306) | $ 5,399 | $ (6,490) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets (Liabilities) | ||
Total | $ 8,912 | $ (24,954) |
Fair value on a recurring basis | ||
Assets (Liabilities) | ||
Derivative Asset | 10,059 | (24,954) |
Derivative Liability | (1,192) | |
Total | 8,867 | (24,954) |
Fair value on a recurring basis | Level 1 | ||
Assets (Liabilities) | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | |
Fair value on a recurring basis | Level 2 | ||
Assets (Liabilities) | ||
Derivative Asset | 10,059 | (24,954) |
Derivative Liability | (1,192) | |
Total | 8,867 | (24,954) |
Fair value on a recurring basis | Level 3 | ||
Assets (Liabilities) | ||
Derivative Asset | 0 | $ 0 |
Derivative Liability | $ 0 |
Fair Value Measurements (Deta40
Fair Value Measurements (Details 1) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Senior Notes Due 2023 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 592.3 | $ 605.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Feb. 17, 2017 | May 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Natural gas processing and transportation agreement | 5 years | |||||||
Minimum delivery commitment to avoid paying gas deficiency fee | 80.00% | |||||||
Transportation and processing fee under the agreement | $ 500 | $ 800 | $ 1,000 | $ 1,700 | ||||
Drilling Rig Commitments | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Maximum termination outstanding obligations of contracts | $ 41,974 | 41,974 | 41,974 | |||||
Outside Operated Drilling Commitments | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Maximum termination outstanding obligations of contracts | 19,697 | 19,697 | 19,697 | |||||
Eagle Ford Acreage Agreement [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Future undiscounted minimum payments, minimum | 200 | 200 | 200 | |||||
Loving County System Agreement | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Transportation and processing fee under the agreement | 3,700 | $ 2,800 | 6,800 | $ 4,700 | ||||
Agreement term | 15 years | |||||||
Deficiency fee required to be paid | 11,600 | |||||||
Capital Addition Purchase Commitments [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Remaining commitments | 47,000 | $ 56,900 | ||||||
Payment for long-term purchase commitment | 7,900 | $ 9,900 | ||||||
Term Of Old Contract Drilling Rig | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Purchase commitment term | 2 years | |||||||
Corporate Joint Venture [Member] | San Mateo Midstream [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Contractual obligation | $ 256,400 | $ 256,400 | $ 256,400 | |||||
Rustler Breaks and Wolf Asset Area [Member] | Corporate Joint Venture [Member] | San Mateo Midstream [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Term of contractual obligation | 15 years | |||||||
Rustler Breaks Asset Area [Member] | Corporate Joint Venture [Member] | San Mateo Midstream [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Term of contractual obligation | 15 years |
Supplemental Disclosures (Detai
Supplemental Disclosures (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Supplemental Disclosures [Line Items] | |||
Interest Paid, Net | $ 15,875 | $ 12,226 | |
Summary of current accrued liabilities | |||
Total accrued liabilities | 151,336 | $ 101,460 | |
Accrued evaluated and unproved and unevaluated property costs | |||
Summary of current accrued liabilities | |||
Total accrued liabilities | 98,589 | 54,273 | |
Accrued support equipment and facilities costs | |||
Summary of current accrued liabilities | |||
Total accrued liabilities | 15,596 | 15,139 | |
Accrued lease operating expenses | |||
Summary of current accrued liabilities | |||
Total accrued liabilities | 12,613 | 16,009 | |
Accrued interest on debt | |||
Summary of current accrued liabilities | |||
Total accrued liabilities | 8,345 | 6,541 | |
Accrued asset retirement obligations | |||
Summary of current accrued liabilities | |||
Total accrued liabilities | 703 | 915 | |
Accrued partners’ share of joint interest charges | |||
Summary of current accrued liabilities | |||
Total accrued liabilities | 12,479 | 5,572 | |
Other | |||
Summary of current accrued liabilities | |||
Total accrued liabilities | $ 3,011 | $ 3,011 |
Supplemental Disclosures (Det43
Supplemental Disclosures (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental disclosures of cash flow information | ||
Asset retirement obligations related to mineral properties | $ 1,978 | $ 2,511 |
Asset retirement obligations related to support equipment and facilities | (138) | 75 |
(Decrease) increase in liabilities for oil and natural gas properties capital expenditures | 43,797 | (3,476) |
(Decrease) increase in liabilities for support equipment and facilities | 1,838 | (11,565) |
Stock-based compensation expense recognized as liability | (339) | 88 |
Increase (Decrease) in Liabilities for Accrued Cost to Issue Equity | (343) | 62 |
Transfer of inventory from oil and natural gas properties | $ (228) | $ 474 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of segments | segment | 2 | ||||
Oil and natural gas revenues | $ 113,764,000 | $ 69,336,000 | $ 228,611,000 | $ 113,262,000 | |
Third-party midstream services revenues | 2,099,000 | 918,000 | 3,654,000 | 1,391,000 | |
Realized gain (loss) on derivatives | 558,000 | 2,465,000 | (1,661,000) | 9,528,000 | |
Unrealized gain (loss) on derivatives | 13,190,000 | (26,625,000) | 33,821,000 | (33,464,000) | |
Expenses | 90,622,000 | 146,705,000 | 171,157,000 | 292,957,000 | |
Operating Income (Loss) | 38,989,000 | (100,611,000) | 93,268,000 | (202,240,000) | |
Total assets | 1,777,076,000 | 1,086,088,000 | 1,777,076,000 | 1,086,088,000 | $ 1,464,665,000 |
Capital Expenditures | 194,682,000 | 110,829,000 | 417,399,000 | 197,948,000 | |
Depreciation, Depletion and Amortization | 41,274,000 | 31,248,000 | 75,266,000 | 60,170,000 | |
Net income attributable to non-controlling interest in subsidiaries | 3,178,000 | 106,000 | 5,094,000 | 93,000 | |
Impairment of Oil and Gas Properties | 0 | 78,171,000 | 0 | 158,633,000 | |
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Oil and natural gas revenues | 0 | 0 | 0 | ||
Third-party midstream services revenues | 0 | 0 | 0 | 0 | |
Realized gain (loss) on derivatives | 0 | 0 | 0 | ||
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | ||
Expenses | 15,852,000 | 13,356,000 | 31,608,000 | 26,665,000 | |
Operating Income (Loss) | (15,852,000) | (13,356,000) | (31,608,000) | (26,665,000) | |
Total assets | 147,509,000 | 52,106,000 | 147,509,000 | 52,106,000 | |
Capital Expenditures | 1,752,000 | 2,328,000 | 3,216,000 | 3,582,000 | |
Depreciation, Depletion and Amortization | 400,000 | 200,000 | 700,000 | 300,000 | |
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Oil and natural gas revenues | 0 | 0 | 0 | ||
Third-party midstream services revenues | (9,268,000) | (2,551,000) | (17,329,000) | (4,169,000) | |
Realized gain (loss) on derivatives | 0 | 0 | 0 | ||
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | ||
Expenses | (9,268,000) | (2,551,000) | (17,329,000) | (4,169,000) | |
Total assets | 0 | 0 | 0 | 0 | |
Capital Expenditures | 0 | 0 | 0 | 0 | |
Exploration and Production Segment [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Oil and natural gas revenues | 113,387,000 | 68,864,000 | 227,552,000 | 112,672,000 | |
Third-party midstream services revenues | 0 | 0 | 0 | 0 | |
Realized gain (loss) on derivatives | 558,000 | 2,465,000 | (1,661,000) | 9,528,000 | |
Unrealized gain (loss) on derivatives | 13,190,000 | (26,625,000) | 33,821,000 | (33,464,000) | |
Expenses | 78,078,000 | 134,338,000 | 146,416,000 | 267,365,000 | |
Operating Income (Loss) | 49,057,000 | (89,634,000) | 113,296,000 | (178,629,000) | |
Total assets | 1,436,678,000 | 927,557,000 | 1,436,678,000 | 927,557,000 | |
Capital Expenditures | 165,583,000 | 97,309,000 | 373,956,000 | 162,116,000 | |
Depreciation, Depletion and Amortization | 39,600,000 | 30,600,000 | 72,100,000 | 58,900,000 | |
Impairment of Oil and Gas Properties | 78,200,000 | 158,600,000 | |||
Midstream Segment [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Oil and natural gas revenues | 377,000 | 472,000 | 1,059,000 | 590,000 | |
Third-party midstream services revenues | 11,367,000 | 3,469,000 | 20,983,000 | 5,560,000 | |
Realized gain (loss) on derivatives | 0 | 0 | 0 | ||
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | ||
Expenses | 5,960,000 | 1,562,000 | 10,462,000 | 3,096,000 | |
Operating Income (Loss) | 5,784,000 | 2,379,000 | 11,580,000 | 3,054,000 | |
Total assets | 192,889,000 | 106,425,000 | 192,889,000 | 106,425,000 | |
Capital Expenditures | 27,347,000 | 11,192,000 | 40,227,000 | 32,250,000 | |
Depreciation, Depletion and Amortization | 1,300,000 | 500,000 | 2,500,000 | 1,000,000 | |
Net income attributable to non-controlling interest in subsidiaries | $ 106,000 | 5,100,000 | $ 93,000 | ||
Payments to Acquire Productive Assets, Noncontrolling Interest | 13,400,000 | $ 18,600,000 | |||
Operating Income (Loss) [Member] | Midstream Segment [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net income attributable to non-controlling interest in subsidiaries | $ 3,200,000 |