Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Cover [Abstract] | ||
Entity Central Index Key | 0001528129 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35380 | |
Entity Registrant Name | Laredo Petroleum, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3007926 | |
Entity Address, Address Line One | 15 W. Sixth Street | |
Entity Address, Address Line Two | Suite 900 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74119 | |
City Area Code | 918 | |
Local Phone Number | 513-4570 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | LPI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,996,028 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 15,747 | $ 40,857 | |
Accounts receivable, net | 69,113 | 85,223 | |
Derivatives | 151,704 | 51,929 | |
Other current assets | 19,695 | 22,470 | |
Total current assets | 256,259 | 200,479 | |
Oil and natural gas properties, full cost method: | |||
Evaluated properties | 7,689,108 | 7,421,799 | |
Unevaluated properties not being depleted | 127,116 | 142,354 | |
Less accumulated depletion and impairment | (6,429,794) | (5,725,114) | |
Oil and natural gas properties, net | 1,386,430 | 1,839,039 | |
Midstream service assets, net | 116,826 | 128,678 | |
Other fixed assets, net | 33,001 | 32,504 | |
Property and equipment, net | 1,536,257 | 2,000,221 | |
Derivatives | 40,258 | 23,387 | |
Operating lease right-of-use assets | 23,844 | 28,343 | |
Other noncurrent assets, net | 13,970 | 12,007 | |
Total assets | 1,870,588 | 2,264,437 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 47,433 | 40,521 | |
Accrued capital expenditures | 21,304 | 36,328 | |
Undistributed revenue and royalties | 22,597 | 33,123 | |
Derivatives | 192 | 7,698 | |
Operating lease liabilities | 11,696 | 14,042 | |
Other current liabilities | 54,567 | 39,184 | |
Total current liabilities | 157,789 | 170,896 | |
Long-term debt, net | 1,258,164 | 1,170,417 | |
Derivatives | 602 | 0 | |
Asset retirement obligations | 62,352 | 60,691 | |
Operating lease liabilities | 14,670 | 17,208 | |
Other noncurrent liabilities | 991 | 3,351 | |
Total liabilities | 1,494,568 | 1,422,563 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock | 0 | 0 | |
Common stock | [1] | 119 | 2,373 |
Additional paid-in capital | 2,392,564 | 2,385,355 | |
Accumulated deficit | (2,016,663) | (1,545,854) | |
Total stockholders' equity | 376,020 | 841,874 | |
Total liabilities and stockholders' equity | $ 1,870,588 | $ 2,264,437 | |
[1] | Common stock shares were retroactively adjusted for the Company's 1-for-20 reverse stock split effective June 1, 2020. See Note 7.a. |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Common stock par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 22,500,000 | 22,500,000 |
Common stock issued (shares) | 11,939,307 | 11,864,604 |
Common stock outstanding (shares) | 11,939,307 | 11,864,604 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Revenues: | |||||
Total revenues | $ 110,588 | $ 216,643 | $ 315,580 | $ 425,590 | |
Costs and expenses: | |||||
Lease operating expenses | 20,591 | 23,632 | 42,631 | 46,241 | |
Production and ad valorem taxes | 6,938 | 11,328 | 16,182 | 18,547 | |
General and administrative | 10,659 | 11,056 | 23,221 | 32,575 | |
Organizational restructuring expenses | 4,200 | 10,406 | 4,200 | 10,406 | |
Depletion, depreciation and amortization | 66,574 | 65,703 | 127,876 | 128,801 | |
Impairment expense | 406,448 | 0 | 593,147 | 0 | |
Other operating expenses | 1,117 | 1,020 | 2,223 | 2,072 | |
Total costs and expenses | 544,640 | 158,815 | 931,604 | 313,365 | |
Operating income (loss) | (434,052) | 57,828 | (616,024) | 112,225 | |
Non-operating income (expense): | |||||
Gain (loss) on derivatives, net | (90,537) | 88,394 | 207,299 | 40,029 | |
Interest expense | (27,072) | (15,765) | (52,042) | (31,312) | |
Litigation settlement | 0 | 42,500 | 0 | 42,500 | |
Loss on extinguishment of debt | 0 | 0 | (13,320) | 0 | |
Gain (loss) on disposal of assets, net | 152 | (670) | (450) | (1,609) | |
Other income (expense), net | (16) | 2,846 | 75 | 3,713 | |
Write-off of debt issuance costs | (1,103) | 0 | (1,103) | 0 | |
Total non-operating income (expense), net | (118,576) | 117,305 | 140,459 | 53,321 | |
Income (loss) before income taxes | (552,628) | 175,133 | (475,565) | 165,546 | |
Income tax benefit (expense): | |||||
Deferred | 7,173 | (1,751) | 4,756 | (1,655) | |
Total income tax benefit (expense) | 7,173 | (1,751) | 4,756 | (1,655) | |
Net income (loss) | $ (545,455) | $ 173,382 | $ (470,809) | $ 163,891 | |
Net income (loss) per common share: | |||||
Basic (USD per share) | [1] | $ (46.75) | $ 14.99 | $ (40.44) | $ 14.19 |
Diluted (USD per share) | [1] | $ (46.75) | $ 14.98 | $ (40.44) | $ 14.15 |
Weighted-average common shares outstanding: | |||||
Basic (shares) | [1] | 11,667 | 11,570 | 11,642 | 11,547 |
Diluted (shares) | [1] | 11,667 | 11,578 | 11,642 | 11,586 |
Oil sales | |||||
Revenues: | |||||
Total revenues | $ 70,105 | $ 160,030 | $ 190,083 | $ 289,201 | |
NGL sales | |||||
Revenues: | |||||
Total revenues | 13,228 | 22,197 | 24,786 | 54,432 | |
Natural gas sales | |||||
Revenues: | |||||
Total revenues | 10,810 | 1,636 | 15,159 | 13,606 | |
Midstream service revenues | |||||
Revenues: | |||||
Total revenues | 2,281 | 2,610 | 4,964 | 5,493 | |
Costs and expenses: | |||||
Cost of goods and services sold | 815 | 607 | 1,985 | 2,210 | |
Sales of purchased oil | |||||
Revenues: | |||||
Total revenues | 14,164 | 30,170 | 80,588 | 62,858 | |
Costs and expenses: | |||||
Cost of goods and services sold | 16,117 | 30,172 | 95,414 | 62,863 | |
Transportation and marketing expenses | |||||
Costs and expenses: | |||||
Cost of goods and services sold | $ 11,181 | $ 4,891 | $ 24,725 | $ 9,650 | |
[1] | Net income (loss) per common share and weighted-average common shares outstanding were retroactively adjusted for the Company's 1-for-20 reverse stock split effective June 1, 2020 as discussed in Note 7.a. |
Consolidated statement of stock
Consolidated statement of stockholders' equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock (at cost) | Accumulated deficit | |||
Balance at beginning of period (shares) at Dec. 31, 2018 | [1] | 11,697 | 0 | |||||
Balance at beginning of period at Dec. 31, 2018 | $ 1,174,230 | $ 2,339 | $ 2,375,286 | $ 0 | $ (1,203,395) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Restricted stock awards (shares) | [1] | 353 | ||||||
Restricted stock awards | 0 | $ 71 | (71) | |||||
Restricted stock forfeitures (shares) | [1] | (141) | ||||||
Restricted stock forfeitures | 0 | $ (28) | 28 | |||||
Stock exchanged for tax withholding (shares) | [1] | 35 | ||||||
Stock exchanged for tax withholding | (2,646) | $ (2,646) | ||||||
Stock exchanged for cost of exercise of stock options (shares) | [1] | 1 | ||||||
Stock exchanged for cost of exercise of stock options | (76) | $ (76) | ||||||
Retirement of treasury stock (shares) | [1] | (36) | (36) | |||||
Retirement of treasury stock | 0 | $ (7) | (2,715) | $ 2,722 | ||||
Exercise of stock options (shares) | [1] | 1 | ||||||
Exercise of stock options | 76 | 76 | ||||||
Share-settled equity-based compensation | 8,846 | 8,846 | ||||||
Net income (loss) | 163,891 | 163,891 | ||||||
Balance at end of period (shares) at Jun. 30, 2019 | 11,874 | [1] | 0 | [2] | ||||
Balance at end of period at Jun. 30, 2019 | 1,344,321 | $ 2,375 | 2,381,450 | $ 0 | (1,039,504) | |||
Balance at beginning of period (shares) at Mar. 31, 2019 | [2] | 11,960 | 0 | |||||
Balance at beginning of period at Mar. 31, 2019 | 1,171,432 | $ 2,392 | 2,381,926 | $ 0 | (1,212,886) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Restricted stock awards (shares) | [2] | 53 | ||||||
Restricted stock awards | 0 | $ 11 | (11) | |||||
Restricted stock forfeitures (shares) | [2] | (138) | ||||||
Restricted stock forfeitures | 0 | $ (28) | 28 | |||||
Stock exchanged for tax withholding (shares) | [2] | 1 | ||||||
Stock exchanged for tax withholding | (34) | $ (34) | ||||||
Retirement of treasury stock (shares) | [2] | (1) | (1) | |||||
Retirement of treasury stock | 0 | $ 0 | (34) | $ 34 | ||||
Share-settled equity-based compensation | (459) | (459) | ||||||
Net income (loss) | 173,382 | 173,382 | ||||||
Balance at end of period (shares) at Jun. 30, 2019 | 11,874 | [1] | 0 | [2] | ||||
Balance at end of period at Jun. 30, 2019 | 1,344,321 | $ 2,375 | 2,381,450 | $ 0 | (1,039,504) | |||
Balance at beginning of period (shares) at Dec. 31, 2019 | [1] | 11,865 | 0 | |||||
Balance at beginning of period at Dec. 31, 2019 | 841,874 | $ 2,373 | 2,385,355 | $ 0 | (1,545,854) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Reverse stock split | $ (2,277) | 2,277 | ||||||
Restricted stock awards (shares) | [1],[3] | 152 | ||||||
Restricted stock awards | [3] | 0 | $ 30 | (30) | ||||
Restricted stock forfeitures (shares) | [1],[3] | (44) | ||||||
Restricted stock forfeitures | [3] | 0 | $ (2) | 2 | ||||
Stock exchanged for tax withholding (shares) | [1] | 34 | ||||||
Stock exchanged for tax withholding | (762) | $ (762) | ||||||
Retirement of treasury stock (shares) | [1],[3] | (34) | (34) | |||||
Retirement of treasury stock | [3] | 0 | $ (5) | (757) | $ 762 | |||
Share-settled equity-based compensation | 5,717 | 5,717 | ||||||
Net income (loss) | (470,809) | (470,809) | ||||||
Balance at end of period (shares) at Jun. 30, 2020 | 11,939 | [1] | 0 | [2] | ||||
Balance at end of period at Jun. 30, 2020 | 376,020 | $ 119 | 2,392,564 | $ 0 | (2,016,663) | |||
Balance at beginning of period (shares) at Mar. 31, 2020 | [2] | 11,970 | 0 | |||||
Balance at beginning of period at Mar. 31, 2020 | 919,221 | $ 2,394 | 2,388,035 | $ 0 | (1,471,208) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Reverse stock split | $ (2,277) | 2,277 | ||||||
Restricted stock awards (shares) | [2],[4] | 13 | ||||||
Restricted stock awards | [4] | 0 | $ 2 | (2) | ||||
Restricted stock forfeitures (shares) | [2],[4] | (37) | ||||||
Restricted stock forfeitures | [4] | 0 | ||||||
Stock exchanged for tax withholding (shares) | [2] | 7 | ||||||
Stock exchanged for tax withholding | (122) | $ (122) | ||||||
Retirement of treasury stock (shares) | [2],[4] | (7) | (7) | |||||
Retirement of treasury stock | [4] | 0 | $ 0 | (122) | $ 122 | |||
Share-settled equity-based compensation | 2,376 | 2,376 | ||||||
Net income (loss) | (545,455) | (545,455) | ||||||
Balance at end of period (shares) at Jun. 30, 2020 | 11,939 | [1] | 0 | [2] | ||||
Balance at end of period at Jun. 30, 2020 | $ 376,020 | $ 119 | $ 2,392,564 | $ 0 | $ (2,016,663) | |||
[1] | Shares presented were retroactively adjusted for the Company's 1-for-20 reverse stock split effective June 1, 2020 as discussed in Note 7.a. | |||||||
[2] | Shares presented were retroactively adjusted for the Company's 1-for-20 reverse stock split effective June 1, 2020 as discussed in Note 7.a. | |||||||
[3] | The amounts presented for common stock and additional paid-in capital include (i) unadjusted amounts for the period January 1, 2020 to May 31, 2020 and (ii) adjusted amounts for the period June 1, 2020 to June 30, 2020. See the "Reverse stock split" line item for the retroactive adjustment for the life-to-date activity through May 31, 2020. | |||||||
[4] | The amounts presented for common stock and additional paid-in capital include (i) unadjusted amounts for the period April 1, 2020 to May 31, 2020 and (ii) adjusted amounts for the period June 1, 2020 to June 30, 2020. See the "Reverse stock split" line item for the retroactive adjustment for the life-to-date activity through May 31, 2020. |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (470,809) | $ 163,891 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Share-settled equity-based compensation, net | 4,070 | 6,983 |
Depletion, depreciation and amortization | 127,876 | 128,801 |
Impairment expense | 593,147 | 0 |
Mark-to-market on derivatives: | ||
(Gain) loss on derivatives, net | (207,299) | (40,029) |
Settlements received for matured derivatives, net | 134,595 | 23,582 |
Settlements paid for early terminations of commodity derivatives, net | 0 | (5,409) |
Premiums paid for commodity derivatives | (51,070) | (6,249) |
Amortization of debt issuance costs | 2,274 | 1,693 |
Amortization of operating lease right-of-use assets | 7,242 | 6,309 |
Loss on extinguishment of debt | 13,320 | 0 |
Deferred income tax (benefit) expense | (4,756) | 1,655 |
Other, net | 3,341 | 4,187 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable, net | 16,110 | 17,537 |
Decrease (increase) in other current assets | 2,584 | (4,200) |
(Increase) decrease in other noncurrent assets, net | (3,130) | 3,077 |
Increase (decrease) in accounts payable and accrued liabilities | 6,912 | (18,215) |
Decrease in undistributed revenue and royalties | (10,526) | (4,110) |
Increase (decrease) in other current liabilities | 12,378 | (18,134) |
Decrease in other noncurrent liabilities | (4,697) | (100) |
Net cash provided by operating activities | 171,562 | 261,269 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas properties, net | (23,563) | (2,880) |
Capital expenditures: | ||
Oil and natural gas properties | (241,939) | (284,616) |
Midstream service assets | (1,761) | (5,449) |
Other fixed assets | (2,069) | (965) |
Proceeds from dispositions of capital assets, net of selling costs | 728 | 936 |
Net cash used in investing activities | (268,604) | (292,974) |
Cash flows from financing activities: | ||
Borrowings on Senior Secured Credit Facility | 0 | 80,000 |
Payments on Senior Secured Credit Facility | (100,000) | (35,000) |
Issuance of January 2025 Notes and January 2028 Notes | 1,000,000 | 0 |
Extinguishment of debt | (808,855) | 0 |
Stock exchanged for tax withholding | (762) | (2,646) |
Payments for debt issuance costs | (18,451) | 0 |
Net cash provided by financing activities | 71,932 | 42,354 |
Net increase (decrease) in cash and cash equivalents | (25,110) | 10,649 |
Cash and cash equivalents, beginning of period | 40,857 | 45,151 |
Cash and cash equivalents, end of period | $ 15,747 | $ 55,800 |
Organization and basis of prese
Organization and basis of presentation | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation a. Organization Laredo Petroleum, Inc. ("Laredo"), together with its wholly-owned subsidiaries, Laredo Midstream Services, LLC ("LMS") and Garden City Minerals, LLC ("GCM"), is an independent energy company focused on the acquisition, exploration and development of oil and natural gas properties, primarily in the Permian Basin of West Texas. In these notes, the "Company" refers to Laredo, LMS and GCM collectively, unless the context indicates otherwise. All amounts, dollars and percentages presented in these unaudited consolidated financial statements and the related notes are rounded and, therefore, approximate. b. Basis of presentation The unaudited consolidated financial statements were derived from the historical accounting records of the Company and reflect the historical financial position, results of operations and cash flows for the periods described herein. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All material intercompany transactions and account balances have been eliminated in the consolidation of accounts. The unaudited consolidated financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet as of December 31, 2019 is derived from audited consolidated financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all necessary adjustments to present fairly the Company's financial position as of June 30, 2020, results of operations for the three and six months ended June 30, 2020 and 2019 and cash flows for the six months ended June 30, 2020 and 2019. Certain disclosures have been condensed or omitted from the unaudited consolidated financial statements. Accordingly, the unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2019 Annual Report. Significant accounting policies See Note 2 in the 2019 Annual Report for discussion of significant accounting policies. Use of estimates in the preparation of interim unaudited consolidated financial statements The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and 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. Although management believes these estimates are reasonable, actual results could differ. For further information regarding the use of estimates and assumptions, see Note 2.b in the 2019 Annual Report and Notes 8.e and 8.f pertaining to the Company's 2020 performance unit awards and phantom unit awards, respectively. Reclassifications |
New accounting standards
New accounting standards | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New accounting standards | New accounting standards The Company considers the applicability and impact of all accounting standard updates ("ASU") issued by the Financial Accounting Standards Board to the Accounting Standards Codification ("ASC") and has determined there are no ASUs that are not yet adopted and meaningful to disclose as of June 30, 2020. On January 1, 2020, the Company adopted ASU 2016-13 to Topic 326, Financial Instruments—Credit Losses , that requires an allowance for expected credit losses to be recorded against newly recognized financial assets measured at an amortized cost basis. The measurement of expected credit losses is based on relevant information about past events, including historical |
Acquisitions and divestitures
Acquisitions and divestitures | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and divestitures | Acquisitions and divestitures a. 2020 Asset acquisitions and divestitures On April 30, 2020, the Company closed an acquisition of 180 net acres in Howard County, Texas for a total purchase price of $0.6 million. The acquisition also provides for one or more potential contingent payments to be paid by the Company if the arithmetic average of the monthly settlement West Texas Intermediate ("WTI") NYMEX prices exceed certain thresholds for the contingency period beginning on January 1, 2021 and ending on the earlier of December 31, 2022 or the date the counterparty has received the maximum consideration of $1.2 million. The fair value of the contingent consideration was $0.2 million as of the acquisition date, which was recorded as part of the basis in the oil and natural gas properties acquired and as a contingent consideration derivative liability. See Note 10.a for the fair value of the contingent consideration as of June 30, 2020. On February 4, 2020, the Company closed a transaction for $22.5 million acquiring 1,180 net acres and divesting 80 net acres in Howard County, Texas. All transaction costs for the asset acquisitions were capitalized and were included in "Oil and natural gas properties" on the consolidated balance sheet. On April 9, 2020, the Company closed a divestiture of 80 net acres and working interests in two producing wells in Glasscock County, Texas for a total sales price of $0.7 million, net of customary closing and subject to customary post-closing purchase price adjustments. The divestiture was recorded as an adjustment to oil and natural gas properties pursuant to the rules governing full cost accounting. Effective at closing, the operations and cash flows of these oil and natural gas properties were eliminated from the ongoing operations of the Company, and the Company has no continuing involvement in the properties. This divestiture does not represent a strategic shift and will not have a major effect on the Company's future operations or financial results. b. 2019 Acquisitions Asset acquisitions On December 12, 2019, the Company closed an acquisition of 7,360 net acres and 750 net royalty acres in Howard County, Texas for $131.7 million, net of customary closing and subject to customary post-closing purchase price adjustments. The acquisition also provides for a potential contingent payment, where the Company is required to pay $20.0 million if the arithmetic average of the monthly settlement WTI NYMEX prices for each consecutive calendar month for the one-year period beginning January 1, 2020 through December 31, 2020 exceeds a certain threshold. The fair value of the contingent consideration was $6.2 million as of the acquisition date, which was recorded as part of the basis in the oil and natural gas properties acquired and as a contingent consideration derivative liability. See Note 10.a for the fair value of the contingent consideration as of June 30, 2020. All transaction costs were capitalized and were included in "Oil and natural gas properties" on the consolidated balance sheet. This acquisition was primarily financed through borrowings under the Senior Secured Credit Facility. Post-closing is expected to be finalized during the third quarter of 2020. On June 20, 2019, the Company acquired 640 net acres in Reagan County, Texas for $2.9 million. Business combination On December 6, 2019, the Company closed a bolt-on acquisition of 4,475 contiguous net acres and working interests in 49 producing wells in western Glasscock County, Texas, which included net production of 1,400 barrels of oil equivalent ("BOE") per day at the time of acquisition, for $64.6 million, net of customary closing purchase price adjustments. This acquisition was financed through borrowings under the Senior Secured Credit Facility. Post-closing was finalized during the three months ended June 30, 2020. This acquisition was accounted for as a business combination. Accordingly, the Company conducted assessments of net assets acquired and recognized amounts for identifiable assets acquired and liabilities assumed at the estimated acquisition date fair values, while transaction costs associated with the acquisition were expensed. The Company makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. The most significant assumptions relate to the estimated fair values of evaluated and unevaluated oil and natural gas properties. The fair values of these properties were measured using a discounted cash flow model that converts future cash flows to a single discounted amount. Significant inputs to the valuation include estimates of: (i) forecasted oil, NGL and natural gas reserve quantities; (ii) future commodity strip prices as of the closing dates adjusted for transportation and regional price differentials; (iii) forecasted ad valorem taxes, production taxes, income taxes, operating expenses and development costs; and (iv) a peer group weighted-average cost of capital rate subject to additional project-specific risk factors. To compensate for the inherent risk of estimating the value of the unevaluated properties, the discounted future net cash flows of proved undeveloped and probable reserves are reduced by additional reserve adjustment factors. These assumptions represent Level 3 inputs under the fair value hierarchy, as described in Note 10 in the 2019 Annual Report. The following table reflects an aggregate of the final estimate of the fair values of the assets acquired and liabilities assumed in this business combination on December 6, 2019: (in thousands) Fair values of acquisition Fair values of net assets: Evaluated oil and natural gas properties $ 29,921 Unevaluated oil and natural gas properties 34,700 Asset retirement cost 2,728 Total assets acquired 67,349 Asset retirement obligations (2,728) Net assets acquired $ 64,621 Fair values of consideration paid for net assets: Cash consideration $ 64,621 c. Exchange of unevaluated oil and natural gas properties From time to time, the Company exchanges undeveloped acreage with third parties. The exchanges are recorded at fair value and the difference is accounted for as an adjustment of capitalized costs with no gain or loss recognized pursuant to the rules governing full cost accounting, unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil, NGL and natural gas. |
Property and equipment
Property and equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment The following table presents the Company's property and equipment as of the dates presented: (in thousands) June 30, 2020 December 31, 2019 Evaluated oil and natural gas properties $ 7,689,108 $ 7,421,799 Less accumulated depletion and impairment (6,429,794) (5,725,114) Evaluated oil and natural gas properties, net 1,259,314 1,696,685 Unevaluated oil and natural gas properties not being depleted 127,116 142,354 Midstream service assets 181,239 180,932 Less accumulated depreciation and impairment (64,413) (52,254) Midstream service assets, net 116,826 128,678 Depreciable other fixed assets 38,336 37,894 Less accumulated depreciation and amortization (24,533) (23,649) Depreciable other fixed assets, net 13,803 14,245 Land 19,198 18,259 Total property and equipment, net $ 1,536,257 $ 2,000,221 See Note 10.b for discussion of impairments of long-lived assets during the six months ended June 30, 2020. See Note 6 in the 2019 Annual Report for additional discussion of the Company's property and equipment. The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain employee-related costs, incurred for the purpose of acquiring, exploring for or developing oil and natural gas properties, are capitalized and, once evaluated, depleted on a composite unit-of-production method based on estimates of proved oil, NGL and natural gas reserves. The depletion base includes estimated future development costs and dismantlement, restoration and abandonment costs, net of estimated salvage values. Capitalized costs include the cost of drilling and equipping productive wells, dry hole costs, lease acquisition costs, delay rentals and other costs related to such activities. Costs, including employee-related costs, associated with production and general corporate activities are expensed in the period incurred. The Company excludes unevaluated property acquisition costs and exploration costs from the depletion calculation until it is determined whether or not proved reserves can be assigned to the properties. The Company capitalizes a portion of its interest costs to its unevaluated properties and such costs become subject to depletion when proved reserves can be assigned to the associated properties. All items classified as unevaluated properties are assessed on a quarterly basis for possible impairment. The assessment includes consideration of the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion. Sales of oil and natural gas properties, whether or not being depleted currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, NGL and natural gas. The following table presents costs incurred in the acquisition, exploration and development of oil and natural gas properties, with asset retirement obligations included in evaluated property acquisition costs and development costs, for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Property acquisition costs: — Evaluated $ — $ — $ 7,586 $ — Unevaluated 912 2,880 16,468 2,880 Exploration costs 3,374 5,116 10,084 12,621 Development costs 72,567 123,664 218,725 276,381 Total oil and natural gas properties costs incurred $ 76,853 $ 131,660 $ 252,863 $ 291,882 The aforementioned total oil and natural gas properties costs incurred included certain employee-related costs as shown in the table below. The following table presents capitalized employee-related costs incurred in the acquisition, exploration and development of oil and natural gas properties for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Capitalized employee-related costs $ 4,092 $ 3,430 $ 8,597 $ 10,112 The following table presents depletion expense, which is included in "Depletion, depreciation and amortization" on the unaudited consolidated statements of operations, and depletion expense per BOE sold of evaluated oil and natural gas properties for the periods presented: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Depletion expense of evaluated oil and natural gas properties $ 63,305 $ 61,938 $ 121,057 $ 121,308 Depletion expense per BOE sold $ 7.39 $ 8.27 $ 7.36 $ 8.51 The full cost ceiling is based principally on the estimated future net revenues from proved oil, NGL and natural gas reserves, which exclude the effect of the Company's commodity derivative transactions, discounted at 10%. The SEC guidelines require companies to use the unweighted arithmetic average first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period before differentials ("Benchmark Prices"). The Benchmark Prices are then adjusted for quality, transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the wellhead ("Realized Prices") without giving effect to the Company's commodity derivative transactions. The Realized Prices are utilized to calculate the estimated future net revenues in the full cost ceiling calculation. Significant inputs included in the calculation of discounted cash flows used in the impairment analysis include the Company's estimate of operating and development costs, anticipated production of proved reserves and other relevant data. In the event the unamortized cost of evaluated oil and natural gas properties being depleted exceeds the full cost ceiling, as defined by the SEC, the excess is expensed in the period such excess occurs. Once incurred, a write-down of oil and natural gas properties is not reversible. The following table presents the Benchmark Prices and the Realized Prices as of the dates presented: June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 Benchmark Prices: Oil ($/Bbl) $ 43.60 $ 52.23 $ 52.19 $ 54.27 $ 57.90 NGL ($/Bbl) (1) $ 16.87 $ 19.36 $ 21.14 $ 23.93 $ 28.21 Natural gas ($/MMBtu) $ 0.87 $ 0.58 $ 0.87 $ 0.85 $ 1.14 Realized Prices: Oil ($/Bbl) $ 44.97 $ 52.47 $ 52.12 $ 52.86 $ 55.69 NGL ($/Bbl) $ 7.66 $ 10.47 $ 12.21 $ 14.78 $ 18.64 Natural gas ($/Mcf) $ 0.53 $ 0.28 $ 0.53 $ 0.52 $ 0.70 _____________________________________________________________________________ (1) Based on the Company's average composite NGL barrel. The following table presents full cost ceiling impairment expense, which is included in "Impairment expense" on the unaudited consolidated statements of operations for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Full cost ceiling impairment expense $ 406,448 $ — $ 583,630 $ — |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has recognized operating lease right-of-use assets and operating lease liabilities on the unaudited consolidated balance sheets for leases of commercial real estate with lease terms extending into 2027 and drilling, completions, production and other equipment leases with lease terms extending through 2025. The Company's lease costs include those that are recognized in net income (loss) during the period as well as those that are capitalized as part of the cost of another asset in accordance with other GAAP. The lease costs related to drilling, completions and production activities are reflected at the Company's net ownership, which is consistent with the principals of proportional consolidation, and lease commitments are reflected on a gross basis. As of June 30, 2020, the Company had an average working interest of 97% in Laredo-operated active productive wells in its core operating area. See Note 5 in the 2019 Annual Report for additional discussion of the Company's leases. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt a. January 2025 Notes and January 2028 Notes On January 24, 2020, the Company completed an offer and sale (the "Offering") of $600.0 million in aggregate principal amount of 9 1/2% senior unsecured notes due 2025 (the "January 2025 Notes") and $400.0 million in aggregate principal amount of 10 1/8% senior unsecured notes due 2028 (the "January 2028 Notes"). Interest for both the January 2025 Notes and January 2028 Notes is payable semi-annually, in cash in arrears on January 15 and July 15 of each year. The first interest payment was made on July 15, 2020, and consisted of interest from closing to that date. The terms of the January 2025 Notes and January 2028 Notes include covenants, which are in addition to but different than similar covenants in the Senior Secured Credit Facility, which limit the Company's ability to incur indebtedness, make restricted payments, grant liens and dispose of assets. The January 2025 Notes and January 2028 Notes are fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain automatic customary releases, including the sale, disposition or transfer of all of the capital stock or of all or substantially all of the assets of a subsidiary guarantor to one or more persons that are not the Company or a restricted subsidiary, exercise of legal defeasance or covenant defeasance options or satisfaction and discharge of the applicable indenture, designation of a subsidiary guarantor as a non-guarantor restricted subsidiary or as an unrestricted subsidiary in accordance with the applicable indenture, release from guarantee under the Senior Secured Credit Facility, or liquidation or dissolution (collectively, the "Releases"). The Company received net proceeds of approximately $982.0 million from the Offering, after deducting underwriting discounts and commissions and estimated offering expenses. The proceeds from the Offering were used (i) to fund Tender Offers (defined below) for the Company's January 2022 Notes and March 2023 Notes (defined below), (ii) to repay the Company's January 2022 Notes and March 2023 Notes that remained outstanding after settling the Tender Offers and (iii) for general corporate purposes, including repayment of a portion of the borrowings outstanding under the Company's Senior Secured Credit Facility. b. January 2022 Notes and March 2023 Notes On January 23, 2014, the Company completed an offering of $450.0 million in aggregate principal amount of 5 5/8% senior unsecured notes due 2022 (the "January 2022 Notes"). The January 2022 Notes were due to mature on January 15, 2022 and bore an interest rate of 5 5/8% per annum, payable semi-annually, in cash in arrears on January 15 and July 15 of each year, commencing July 15, 2014. The January 2022 Notes were fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain Releases. On March 18, 2015, the Company completed an offering of $350.0 million in aggregate principal amount of 6 1/4% senior unsecured notes due 2023 (the "March 2023 Notes"). The March 2023 Notes were due to mature on March 15, 2023 and bore an interest rate of 6 1/4% per annum, payable semi-annually, in cash in arrears on March 15 and September 15 of each year, commencing September 15, 2015. The March 2023 Notes were fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain Releases. c. Senior Secured Credit Facility As of June 30, 2020, the Senior Secured Credit Facility, which matures on April 19, 2023, had a maximum credit amount of $2.0 billion, a borrowing base and an aggregate elected commitment of $725.0 million each, with $275.0 million outstanding and was subject to an interest rate of 2.19%. The Senior Secured Credit Facility contains both financial and non-financial covenants, all of which the Company was in compliance with for all periods presented. Additionally, the Senior Secured Credit Facility provides for the issuance of letters of credit, limited to the lesser of total capacity or $80.0 million. As of June 30, 2020 and December 31, 2019, the Company had one letter of credit outstanding of $44.1 million and $14.7 million, respectively, under the Senior Secured Credit Facility. The Senior Secured Credit Facility is fully and unconditionally guaranteed by LMS and GCM. For additional information see Note 7.d in the 2019 Annual Report. See Note 19.a for discussion of the (i) additional borrowing and payment on the Senior Secured Credit Facility and (ii) waiver received from the lenders under the Senior Secured Credit Facility of certain representations and warranties relating to the Company's March 31, 2020 quarterly results subsequent to June 30, 2020. The Company's measurements of Adjusted EBITDA (non-GAAP) for financial reporting as compared to compliance under its debt agreements differ. d. Long-term debt, net The following table presents the Company's long-term debt and debt issuance costs, net included in "Long-term debt, net" on the unaudited consolidated balance sheets as of the dates presented: June 30, 2020 December 31, 2019 (in thousands) Long-term debt Debt issuance costs, net Long-term debt, net Long-term debt Debt issuance costs, net Long-term debt, net January 2022 Notes (1) $ — $ — $ — $ 450,000 $ (2,034) $ 447,966 March 2023 Notes (1) — — — 350,000 (2,549) 347,451 January 2025 Notes (2) 600,000 (9,979) 590,021 — — — January 2028 Notes (2) 400,000 (6,857) 393,143 — — — Senior Secured Credit Facility (3) 275,000 — 275,000 375,000 — 375,000 Long-term debt, net $ 1,275,000 $ (16,836) $ 1,258,164 $ 1,175,000 $ (4,583) $ 1,170,417 ______________________________________________________________________________ (1) During the six months ended June 30, 2020, the Company wrote off debt issuance costs in connection with the extinguishment of the January 2022 Notes and the March 2023 Notes, which are included in "Loss on extinguishment of debt" on the unaudited consolidated statement of operations. (2) Debt issuance costs for the January 2025 Notes and the January 2028 Notes are amortized on a straight-line basis over the respective terms of the notes. |
Stockholders' equity
Stockholders' equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity a. Reverse stock split and Authorized Share Reduction On March 17, 2020, the board of directors authorized an amendment to the Company's amended and restated certificate of incorporation ("Certificate of Incorporation") to effect, at the discretion of the board of directors (i) a reverse stock split that would reduce the number of shares of outstanding common stock in accordance with a ratio to be determined by the board of directors within a range of 1-for-5 and 1-for-20 currently outstanding and (ii) a reduction of the number of authorized shares of common stock by a corresponding proportion ("Authorized Share Reduction"). On May 14, 2020, after receiving stockholder approval of the amendment to the Company's Certificate of Incorporation to effect, at the discretion of the board of directors, the reverse stock split and the Authorized Share Reduction, the board of directors approved the implementation of the reverse stock split at a ratio of 1-for-20 currently outstanding shares of common stock, and the related corresponding Authorized Share Reduction. On June 1, 2020, the amendment to the Company's Certificate of Incorporation became effective and effected the 1-for-20 reverse stock split of the Company's issued and outstanding common stock and the related Authorized Share Reduction from 450,000,000 to 22,500,000 authorized shares, par value $0.01 per share, with authorized shares of preferred stock remaining unchanged at 50,000,000, par value $0.01 per share, for a total of 72,500,000 shares of capital stock. See Note 8 for discussion of the amendment to the Equity Incentive Plan to proportionately reduce the number of awards that may be granted. b. Treasury stock Treasury stock is recorded at cost, which includes incremental direct transaction costs, and is retired upon acquisition as a result of (i) stock exchanged to satisfy tax withholding that arises upon the lapse of restrictions on share-settled equity-based awards at the awardee's election or (ii) stock exchanged for the cost of exercise of stock options at the awardee's election. |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan The Laredo Petroleum, Inc. Omnibus Equity Incentive Plan, as amended and restated as of May 16, 2019 (the "Equity Incentive Plan"), provides for the granting of incentive awards in the form of restricted stock awards, stock option awards, performance share awards, outperformance share awards, performance unit awards, phantom unit awards and other awards. On June 1, 2020, in connection with the effectiveness of the reverse stock split and Authorized Share Reduction, the board of directors approved and adopted an amendment to the Equity Incentive Plan to proportionately adjust the limitations on awards that may be granted under the Equity Incentive Plan. Following the amendment, an aggregate of 1,492,500 shares may be issued under the Equity Incentive Plan. See Note 7.a for additional discussion of the reverse stock split and Authorized Share Reduction. The Company recognizes the fair value of equity-based compensation awards, expected to vest over the requisite service period, as a charge against earnings, net of amounts capitalized. The Company's restricted stock awards, stock option awards, performance share awards and outperformance share award are accounted for as equity awards and the Company's performance unit awards and phantom unit awards are accounted for as liability awards. Equity-based compensation expense is included in "General and administrative" on the unaudited consolidated statements of operations. The Company capitalizes a portion of equity-based compensation for employees who are directly involved in the acquisition, exploration or development of oil and natural gas properties into the full cost pool. Capitalized equity-based compensation is included in "Evaluated properties" on the unaudited consolidated balance sheets. a. Restricted stock awards All service vesting restricted stock awards are treated as issued and outstanding in the unaudited consolidated financial statements. Per the award agreement terms, if employment is terminated prior to the restriction lapse date for reasons other than death or disability, the restricted stock awards are forfeited and canceled and are no longer considered issued and outstanding. If the termination of employment is by reason of death or disability, all of the holder's restricted stock will automatically vest. Restricted stock awards granted to employees vest in a variety of schedules that mainly include (i) 33%, 33% and 34% vesting per year beginning on the first anniversary of the grant date and (ii) full vesting on the first anniversary of the grant date. Restricted stock awards granted to non-employee directors vest immediately on the grant date. The following table reflects the restricted stock award activity for the six months ended June 30, 2020: (in thousands, except for weighted-average grant-date fair value) Restricted stock awards (1) Weighted-average grant-date fair value (per share) (1) Outstanding as of December 31, 2019 275 $ 85.89 Granted 152 $ 18.14 Forfeited (44) $ 51.06 Vested (2) (123) $ 85.25 Outstanding as of June 30, 2020 260 $ 52.48 _____________________________________________________________________________ (1) Shares and per share data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. (2) The aggregate intrinsic value of vested restricted stock awards for the six months ended June 30, 2020 was $2.9 million. The Company utilizes the closing stock price on the grant date to determine the fair value of restricted stock awards. As of June 30, 2020, unrecognized equity-based compensation related to the restricted stock awards expected to vest was $10.5 million. Such cost is expected to be recognized over a weighted-average period of 1.72 years. Performance share awards, which the Company has determined are equity awards, are subject to a combination of market, performance and service vesting criteria. For portions of awards with market criteria, which include: (i) the relative three-year total shareholder return ("TSR") comparing the Company's shareholder return to the shareholder return of the peer group specified in each award agreement ("RTSR Performance Percentage") and (ii) the Company's absolute three-year total shareholder return ("ATSR Appreciation"), a Monte Carlo simulation prepared by an independent third party is utilized to determine the grant-date (or modification date) fair value, and the associated expense is recognized on a straight-line basis over the three three The following table reflects the performance share award activity for the six months ended June 30, 2020: (in thousands, except for weighted-average grant-date fair value) Performance share awards (1) Weighted-average grant-date fair value (per share) 1) Outstanding as of December 31, 2019 115 $ 107.05 Forfeited (10) $ 111.75 Lapsed (2) (8) $ 379.20 Outstanding as of June 30, 2020 97 $ 84.12 ______________________________________________________________________________ (1) Shares and per share data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. (2) The performance share awards granted on February 17, 2017 had a performance period of January 1, 2017 to December 31, 2019 and, as their market criteria were not satisfied, resulted in a TSR modifier of 0% based on the Company finishing in the 15th percentile of its peer group for relative TSR. As such, the granted units lapsed and were not converted into the Company's common stock during the three months ended March 31, 2020. The following table presents the fair values per performance share and the expense per performance share, which is the fair value per performance share adjusted for the estimated payout of the performance criteria, for the outstanding performance share awards as of June 30, 2020 for the grant dates presented: June 3, 2019 February 28, 2019 (1) February 16, 2018 Market Criteria: (1/4) RTSR Factor + (1/4) ATSR Factor: Grant-date fair value per performance share (2) $ 49.00 $ 79.61 $ 201.65 Expense per performance share as of June 30, 2020 (2) $ 49.00 $ 79.61 $ 201.65 Performance Criteria: (1/2) ROACE Factor: Grant-date fair value per performance share (2) $ 51.80 $ 69.80 $ 167.20 Estimated payout for expense as of June 30, 2020 175 % 175 % 68 % Expense per performance share as of June 30, 2020 (2)(3) $ 90.65 $ 122.15 $ 113.70 Combined: Grant-date fair value per performance share (2)(4) $ 50.40 $ 74.71 $ 184.43 Expense per performance share as of June 30, 2020 (2)(5) $ 69.83 $ 100.88 $ 157.68 ______________________________________________________________________________ (1) The fair values of the performance shares granted on February 28, 2019 are based on the May 16, 2019 modification date. See Note 8.b in the 2019 Annual Report for additional information on the award conversion. (2) Per share data has been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. (3) As the (1/2) ROACE Factor is based on performance criteria, the expense fluctuates based on the estimated payout and is redetermined each reporting period and the life-to-date recognized expense for the respective awards is adjusted accordingly. (4) The combined grant-date fair value per performance share is the combination of the fair value per performance share weighted for the market and performance criteria for the respective awards. (5) The combined expense per performance share is the combination of the expense per performance share for market and performance criteria for the respective awards. As of June 30, 2020, unrecognized equity-based compensation related to the performance share awards expected to vest was $4.6 million. Such cost is expected to be recognized over a weighted-average period of 1.56 years. An outperformance share award was granted during the year ended December 31, 2019, in conjunction with the appointment of the Company's President, and is accounted for as an equity award. The award was adjusted for the Company's 1-for-20 reverse stock split as discussed in Note 7.a. If earned, the payout ranges from 0 to 50,000 shares in the Company's common stock per the vesting schedule. This award is subject to a combination of market and service vesting criteria, therefore, a Monte Carlo simulation prepared by an independent third party was utilized to determine the grant-date fair value with the associated expense recognized over the requisite service period. The payout of this award is based on the highest 50 consecutive trading day average closing stock price of the Company that occurs during the performance period that commenced on June 3, 2019 and ends on June 3, 2022 ("Final Date"). Of the earned outperformance shares, one-third of the award will vest on the Final Date, one-third will vest on the first anniversary of the Final Date and one-third will vest on the second anniversary of the Final Date, provided that the participant has been continuously employed with the Company through the applicable vesting date. As of June 30, 2020, unrecognized equity-based compensation related to the outperformance share award expected to vest was $0.5 million. Such cost is expected to be recognized over a weighted-average period of 4.00 years. Performance unit awards, which the Company has determined are liability awards since they are settled in cash, are subject to a combination of market, performance and service vesting criteria. For portions of awards with market criteria, which include: (i) the RTSR Performance Percentage (as defined above) and (ii) the ATSR Appreciation (as defined above), a Monte Carlo simulation prepared by an independent third party is utilized to determine the fair value, and is re-measured at each reporting period until settlement. For portions of awards with performance criteria, which is the ROACE Percentage (as defined above), the Company's closing stock price is utilized to determine the fair value and is re-measured on the last trading day of each reporting period until settlement and, additionally, the associated expense fluctuates based on an estimated payout for the three three The following table reflects the performance unit award activity for the six months ended June 30, 2020: (in thousands) Performance units (1) Outstanding as of December 31, 2019 (2) — Granted (3) 123 Forfeited (24) Outstanding as of June 30, 2020 99 ______________________________________________________________________________ (1) Units have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. (2) The performance unit awards granted on February 28, 2019 were originally determined to be liability awards due to the board of directors election to settle the awards in cash. These awards were converted to performance share awards during the three months ended June 30, 2019. See Note 8.b in the 2019 Annual Report for additional information on the award conversion. (3) The amounts potentially payable in cash at the end of the requisite service period for the performance unit awards granted on March 5, 2020 will be determined based on three criteria: (i) RTSR Performance Percentage, (ii) ATSR Appreciation and (iii) ROACE Percentage. The RTSR Performance Percentage, ATSR Appreciation and ROACE Percentage will be used to identify the "RTSR Factor," the "ATSR Factor" and the "ROACE Factor," respectively, which are used to compute the "Performance Multiple" and ultimately to determine the final value of each performance unit to be paid in cash on the payment date per the award agreement, subject to withholding requirements. In computing the Performance Multiple, the RTSR Factor is given a 1/3 weight, the ATSR Factor a 1/3 weight and the ROACE Factor a 1/3 weight. These awards have a performance period of January 1, 2020 to December 31, 2022. The following table presents (i) the fair values per performance unit and the assumptions used to estimate these fair values per performance unit and (ii) the expense per performance unit, which is the fair value per performance unit adjusted for the estimated payout of the performance criteria, for the outstanding performance unit awards as of June 30, 2020 for the grant date presented: March 5, 2020 Market criteria: (1/3) RTSR Factor + (1/3) ATSR Factor: Fair value assumptions: Remaining performance period 2.52 years Risk-free interest rate (1) 0.19 % Dividend yield — % Expected volatility (2) 113.53 % Closing stock price on June 30, 2020 $ 13.86 Fair value per performance unit as of June 30, 2020 $ 20.00 Expense per performance unit as of June 30, 2020 $ 20.00 Performance criteria: (1/3) ROACE Factor: Fair value assumptions: Closing stock price on June 30, 2020 $ 13.86 Fair value per performance unit as of June 30, 2020 $ 13.86 Estimated payout for expense as of June 30, 2020 100.00 % Expense per performance unit as of June 30, 2020 (3) $ 13.86 Combined: Fair value per performance unit as of June 30, 2020 (4) $ 17.96 Expense per performance unit as of June 30, 2020 (5) $ 17.96 ______________________________________________________________________________ (1) The remaining performance period matched zero-coupon risk-free interest rate was derived from the United States ("U.S.") Treasury constant maturities yield curve on June 30, 2020. (2) The Company utilized its own remaining performance period matched historical volatility in order to develop the expected volatility. (3) As the (1/3) ROACE Factor is based on performance criteria, the expense fluctuates based on the estimated payout and is redetermined each reporting period and the life-to-date recognized expense for the award is adjusted accordingly. (4) The combined fair value per performance unit is the combination of the fair value per performance unit weighted for the market and performance criteria for the award. (5) The combined expense per performance unit is the combination of the expense per performance unit for market and performance criteria for the award. As of June 30, 2020, unrecognized equity-based compensation related to the performance unit awards expected to vest was $1.6 million. Such cost is expected to be recognized over a weighted-average period of 2.75 years. for reasons other than death or disability, the phantom unit awards are forfeited and canceled. If the termination of employment is by reason of death or disability, all of the holder's phantom unit awards automatically vest. The following table reflects the phantom unit award activity for the six months ended June 30, 2020: (in thousands, except for weighted-average fair value) Phantom units (1) Fair value as of June 30, 2020 (per unit) 1) Outstanding as of December 31, 2019 — $ — Granted 75 $ 13.86 Outstanding as of June 30, 2020 75 $ 13.86 ______________________________________________________________________________ (1) Units and per unit data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. The Company utilizes the closing stock price on the last day of each reporting period to determine the fair value of phantom unit awards and the life-to-date recognized expense is adjusted accordingly. As of June 30, 2020, unrecognized equity-based compensation related to the phantom unit awards expected to vest was $0.9 million. Such cost is expected to be recognized over a weighted-average period of 2.75 years. The following table reflects equity-based compensation expense for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Equity awards: Restricted stock awards $ 2,044 $ 2,559 $ 4,542 $ 7,882 Performance share awards 282 (3,191) 1,038 (27) Outperformance share award 43 13 87 13 Stock option awards 7 160 50 978 Total share-settled equity-based compensation, gross 2,376 (459) 5,717 8,846 Less amounts capitalized (682) 36 (1,647) (1,863) Total share-settled equity-based compensation, net 1,694 (423) 4,070 6,983 Liability awards: Phantom unit awards 86 — 111 — Performance unit awards (1) 166 (238) 190 — Total cash-settled equity-based compensation, gross 252 (238) 301 — Less amounts capitalized (33) 46 (43) — Total cash-settled equity-based compensation, net 219 (192) 258 — Total equity-based compensation, net $ 1,913 $ (615) $ 4,328 $ 6,983 ______________________________________________________________________________ (1) The performance unit award compensation for the three months ended March 31, 2019 was reversed during the second quarter of 2019 due to the awards' conversion from liability to equity and new fair values were assigned under performance share awards. See Note 8 in the 2019 Annual Report for discussion of this conversion and related modification accounting. See Note 18 for discussion of the Company's organizational restructurings and the related equity-based compensation reversals during the three months ended June 30, 2020 and 2019. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company has three types of derivative instruments as of June 30, 2020: (i) commodity derivatives ("Commodity"), (ii) debt interest rate derivative ("Interest rate") and (iii) contingent consideration derivatives ("Contingent consideration"). See Note 10.a for the fair value measurement on a recurring basis of derivatives and Note 2.f in the 2019 Annual Report for the Company's significant accounting policies for derivatives. The Company's derivatives were not designated as hedges for accounting purposes, and the Company does not enter into such instruments for speculative trading purposes. Accordingly, the changes in fair value are recognized in "Gain (loss) on derivatives, net" under "Non-operating income (expense)" on the unaudited consolidated statements of operations. The following table summarizes components of the Company's gain (loss) on derivatives, net by type of derivative instrument for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Commodity $ (90,864) $ 88,394 $ 200,497 $ 40,029 Interest rate (338) — (338) — Contingent consideration 665 — 7,140 — Gain (loss) on derivatives, net $ (90,537) $ 88,394 $ 207,299 $ 40,029 a. Commodity Due to the inherent volatility in oil, NGL and natural gas prices and differences in the prices of oil, NGL and natural gas between where the Company produces and where the Company sells such commodities, the Company engages in commodity derivative transactions, such as puts, swaps, collars and basis swaps to hedge price risk associated with a portion of the Company's anticipated sales volumes. By removing a portion of the price volatility associated with future sales volumes, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations. See Note 9 in the 2019 Annual Report for information on the transaction types and settlement indexes. The Brent ICE to WTI NYMEX basis swaps, which the Company entered into in the first quarter of 2020, are settled based on the differential between the basis swaps' fixed differential as compared to the differential between the arithmetic average of each day's index prices for the first nearby month on the pricing dates in each calculation period, for only days when both indices settle, with the index prices being (i) the ICE Brent Crude Oil Futures Contract except for the last day of trading for the applicable expiring Brent Crude Oil Futures Contract whereby the second nearby month of the Brent Crude Oil Futures Contract settlement price will be used and (ii) the NYMEX West Texas Intermediate Light Sweet Crude Oil Futures Contract. See Note 19.b for a discussion of derivatives entered into subsequent to June 30, 2020. In regards to the Company's basis swaps, when the settlement basis differential is below the fixed basis differential, the counterparty pays the Company an amount equal to the difference between the fixed basis differential and the settlement basis differential multiplied by the hedged contract volume. When the settlement basis differential is above the fixed basis differential, the Company pays the counterparty an amount equal to the difference between the settlement basis differential and the fixed basis differential multiplied by the hedged contract volume. During the six months ended June 30, 2020, the Company completed a hedge restructuring by early terminating collars and entering into new swaps. The following table details the commodity derivatives that were terminated: Aggregate volumes (Bbl) Floor price ($/Bbl) Ceiling price ($/Bbl) Contract period WTI NYMEX - Collars 912,500 $ 45.00 $ 71.00 January 2021 - December 2021 The following table summarizes open commodity derivative positions as of June 30, 2020, for commodity derivatives that were entered into through June 30, 2020, for the settlement periods presented: Remaining year 2020 Year 2021 Year 2022 Oil: WTI NYMEX - Swaps: Volume (Bbl) 3,606,400 — — Weighted-average price ($/Bbl) $ 59.50 $ — $ — Brent ICE: Puts (1) : Volume (Bbl) — 2,463,750 — Weighted-average floor price ($/Bbl) $ — $ 55.00 $ — Swaps: Volume (Bbl) 1,196,000 2,555,000 — Weighted-average price ($/Bbl) $ 63.07 $ 53.19 $ — Collars: Volume (Bbl) — 584,000 — Weighted-average floor price ($/Bbl) $ — $ 45.00 $ — Weighted-average ceiling price ($/Bbl) $ — $ 59.50 $ — Total Brent ICE: Total volume with floor (Bbl) 1,196,000 5,602,750 — Weighted-average floor price ($/Bbl) $ 63.07 $ 53.13 $ — Total volume with ceiling (Bbl) 1,196,000 3,139,000 — Weighted-average ceiling price ($/Bbl) $ 63.07 $ 54.37 $ — Total oil volume with floor (Bbl) 4,802,400 5,602,750 — Total oil volume with ceiling (Bbl) 4,802,400 3,139,000 — Basis Swaps: Brent ICE to WTI NYMEX - Basis Swaps Volume (Bbl) 1,803,200 — — Weighted-average differential ($/Bbl) $ 5.09 $ — $ — NGL - Mont Belvieu OPIS: Purity Ethane - Swaps: Volume (Bbl) 184,000 912,500 — Weighted-average price ($/Bbl) $ 13.60 $ 12.01 $ — Non-TET Propane - Swaps: Volume (Bbl) 625,600 730,000 — Weighted-average price ($/Bbl) $ 26.58 $ 25.52 $ — Non-TET Normal Butane - Swaps: Volume (Bbl) 220,800 255,500 — Weighted-average price ($/Bbl) $ 28.69 $ 27.72 $ — Non-TET Isobutane - Swaps: Volume (Bbl) 55,200 67,525 — Weighted-average price ($/Bbl) $ 29.99 $ 28.79 $ — Non-TET Natural Gasoline - Swaps: Volume (Bbl) 202,400 237,250 — Weighted-average price ($/Bbl) $ 45.15 $ 44.31 $ — Total NGL volume (Bbl) 1,288,000 2,202,775 — TABLE CONTINUES ON NEXT PAGE Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 11,960,000 42,522,500 — Weighted-average price ($/MMBtu) $ 2.72 $ 2.59 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 21,160,000 41,610,000 7,300,000 Weighted-average differential ($/MMBtu) $ (0.82) $ (0.55) $ (0.53) _____________________________________________________________________________ (1) Associated with these open positions were $50.6 million of premiums, which were paid at the respective contracts' inception during the three months ended June 30, 2020. b. Interest rate Due to the inherent volatility in interest rates, the Company has entered into an interest rate derivative swap to hedge interest rate risk associated with a portion of the Company's anticipated outstanding debt under the Senior Secured Credit Facility. The Company will pay a fixed rate over the contract term for that portion. By removing a portion of the interest rate volatility associated with anticipated outstanding debt, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations. The following table details the interest rate derivative that was entered into during the three months ended June 30, 2020: Notional amount Fixed rate Contract period LIBOR - Swap $ 100,000 0.345 % April 16, 2020 - April 18, 2022 c. Contingent consideration The Company's asset acquisition of oil and natural gas properties that closed on April 30, 2020 provides for potential contingent payments to be paid by the Company if the arithmetic average of the monthly settlement WTI NYMEX prices exceed certain thresholds for the contingency period beginning on January 1, 2021 and ending on the earlier of December 31, 2022 or the date the counterparty has received the maximum consideration of $1.2 million. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements See the beginning of Note 10 in the 2019 Annual Report for information about the fair value hierarchy levels. a. Fair value measurement on a recurring basis See Notes 9 and 19.b for further discussion of the Company's derivatives, and see Note 2.f in the 2019 Annual Report for the Company's significant accounting policies for derivatives. Balance sheet presentation The following tables present the Company's derivatives' three-level fair value hierarchy by (i) assets and liabilities, (ii) current and noncurrent, (iii) commodity, interest rate and contingent consideration derivatives and (iv) oil, NGL, natural gas, LIBOR and/or deferred premiums, and provide a total, on a gross basis and a net basis reflected in "Derivatives" on the unaudited consolidated balance sheets as of the dates presented: June 30, 2020 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets Assets: Current: Commodity - Oil $ — $ 136,828 $ — $ 136,828 $ (2,560) $ 134,268 Commodity - NGL — 17,023 — 17,023 — 17,023 Commodity - Natural gas — 10,491 — 10,491 (10,078) 413 Commodity - Oil deferred premiums — — — — — — Noncurrent: Commodity - Oil $ — $ 33,684 $ — $ 33,684 $ (2,983) $ 30,701 Commodity - NGL — 7,381 — 7,381 — 7,381 Commodity - Natural gas — 3,604 — 3,604 (1,428) 2,176 Liabilities: Current: Commodity - Oil $ — $ (2,560) $ — $ (2,560) $ 2,560 $ — Commodity - NGL — — — — — — Commodity - Natural gas — (10,078) — (10,078) 10,078 — Commodity - Oil deferred premiums — — — — — — Interest rate - LIBOR — (177) — (177) — (177) Contingent consideration — (15) — (15) — (15) Noncurrent: Commodity - Oil $ — $ (2,983) $ — $ (2,983) $ 2,983 $ — Commodity - NGL — — — — — — Commodity - Natural gas — (1,428) — (1,428) 1,428 — Interest rate - LIBOR — (182) — (182) — (182) Contingent consideration — (420) — (420) — (420) Net derivative asset (liability) positions $ — $ 191,168 $ — $ 191,168 $ — $ 191,168 December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the consolidated balance sheets Assets: Current: Commodity - Oil $ — $ 11,723 $ — $ 11,723 $ (5,301) $ 6,422 Commodity - NGL — 13,787 — 13,787 (1,297) 12,490 Commodity - Natural gas — 33,494 — 33,494 — 33,494 Commodity - Oil deferred premiums — — — — (477) (477) Noncurrent: Commodity - Oil $ — $ 1,577 $ — $ 1,577 $ — $ 1,577 Commodity - NGL — 9,547 — 9,547 — 9,547 Commodity - Natural gas — 12,263 — 12,263 — 12,263 Liabilities: Current: Commodity - Oil $ — $ (5,649) $ — $ (5,649) $ 5,301 $ (348) Commodity - NGL — (1,297) — (1,297) 1,297 — Commodity - Natural gas — — — — — — Commodity - Oil deferred premiums — — (477) (477) 477 — Interest rate - LIBOR — — — — — — Contingent consideration — (7,350) — (7,350) — (7,350) Noncurrent: Commodity - Oil $ — $ — $ — $ — $ — $ — Commodity - NGL — — — — — — Commodity - Natural gas — — — — — — Interest rate - LIBOR — — — — — — Contingent consideration — — — — — — Net derivative asset (liability) positions $ — $ 68,095 $ (477) $ 67,618 $ — $ 67,618 Commodity See Note 10.a in the 2019 Annual Report for discussion of (i) the significant Level 2 inputs associated with the calculation of discounted cash flows used in the fair value mark-to-market analysis of commodity derivatives and (ii) the Level 3 deferred premiums associated with the Company's commodity derivative contracts. These deferred premiums have settled as of June 30, 2020. The Company reviewed the third-party specialist's valuations of commodity derivatives, including the related inputs, and analyzed changes in fair values between reporting dates. The following table summarizes the changes in net assets and liabilities classified as Level 3 measurements for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Balance of Level 3 at beginning of period $ — $ (12,644) $ (477) $ (16,565) Change in net present value of commodity derivative deferred premiums (1) — (24) — (119) Settlements of commodity derivative deferred premiums (2) — 9,398 477 13,414 Balance of Level 3 at end of period $ — $ (3,270) $ — $ (3,270) ____________________________________________________________________________ (1) This amount is included in "Interest expense" on the unaudited consolidated statements of operations for the three and six months ended June 30, 2019. (2) The amounts for the three and six months ended June 30, 2019 include $7.2 million that represents the present value of deferred premiums settled upon their early termination. Interest rate Significant Level 2 inputs associated with the calculation of discounted cash flows used in the fair value mark-to-market analysis of the interest rate derivative include the LIBOR interest rate forward curve and a counterparty risk-adjusted discount rate generated from a compilation of data gathered by a third-party valuation specialist. The Company reviewed the third-party specialist's valuation of the interest rate derivative, including the related inputs, and will analyze changes in fair values between reporting dates. Contingent consideration The Company's asset acquisition of oil and natural gas properties that closed on April 30, 2020 provides for potential contingent payments to be paid by the Company. The fair value of the contingent consideration was $0.2 million as of the April 30, 2020 acquisition date, which was recorded as part of the basis in the oil and natural gas properties acquired and as a contingent consideration derivative liability. At each quarterly reporting period prior to the end of the contingency period, the Company will remeasure the contingent consideration with the changes in fair value recognized in earnings. See Note 10.a in the 2019 Annual Report for discussion of the 2019 contingent consideration and for significant Level 2 inputs for the option pricing model used in the fair value mark-to-market analysis of contingent consideration derivatives. The Company reviewed the third-party specialist's valuations, including the related inputs, and has analyzed changes in fair values between the acquisition closing and/or reporting dates. See Notes 3.a and 3.b for further discussion of the Company's asset acquisitions associated with the potential contingent consideration payments. b. Fair value measurement on a nonrecurring basis See Note 2.j in the 2019 Annual Report for the Level 2 fair value hierarchy input assumptions used in estimating the net realizable value of inventory used to account for the $1.3 million impairment expense of inventory recorded during the six months ended June 30, 2020, pertaining to line-fill and other inventories. There were no comparable impairments of inventory recorded during the six months ended June 30, 2019. See Note 4.a in the 2019 Annual Report for the Level 3 fair value hierarchy input assumptions used in estimating the fair values of assets acquired and liabilities assumed for the acquisition of evaluated and unevaluated oil and natural gas properties accounted for as a business combination for the year ended December 31, 2019. There were no acquisitions of evaluated and unevaluated oil and natural gas properties accounted for as business combinations for the six months ended June 30, 2020 or 2019. c. Items not accounted for at fair value The carrying amounts reported on the unaudited consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable, accrued capital expenditures, undistributed revenue and royalties and other accrued assets and liabilities approximate their fair values. The Company has not elected to account for its debt instruments at fair value. The following table presents the carrying amounts and fair values of the Company's debt as of the dates presented: June 30, 2020 December 31, 2019 (in thousands) Long-term Fair value (1) Long-term Fair value (1) January 2022 Notes $ — $ — $ 450,000 $ 439,875 March 2023 Notes — — 350,000 332,500 January 2025 Notes 600,000 414,750 — — January 2028 Notes 400,000 278,632 — — Senior Secured Credit Facility 275,000 274,947 375,000 375,275 Total $ 1,275,000 $ 968,329 $ 1,175,000 $ 1,147,650 ______________________________________________________________________________ (1) The fair values of the outstanding debt on the notes were determined using the Level 1 fair value hierarchy quoted market prices for each respective instrument as of June 30, 2020 and December 31, 2019. The fair values of the outstanding debt on the Senior Secured Credit Facility were estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of June 30, 2020 and December 31, 2019. |
Net income (loss) per common sh
Net income (loss) per common share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net income (loss) per common share | Net income (loss) per common share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted net income (loss) per common share reflects the potential dilution of non-vested restricted stock awards, outstanding stock option awards, non-vested performance share awards and the non-vested outperformance share award. See Note 8 for additional discussion of these awards. For the three and six months ended June 30, 2020, all of these awards were anti-dilutive due to the Company's net loss and, therefore, were excluded from the calculation of diluted net income (loss) per common share. For the three and six months ended June 30, 2019, the dilutive effects of these awards were calculated utilizing the treasury stock method. See Note 9 in the second-quarter 2019 Quarterly Report for discussion of the awards excluded from the calculation of diluted net income (loss) per common share. The following table reflects the calculations of basic and diluted (i) weighted-average common shares outstanding and (ii) net income (loss) per common share for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands, except for per share data) 2020 2019 2020 2019 Net income (loss) (numerator) $ (545,455) $ 173,382 $ (470,809) $ 163,891 Weighted-average common shares outstanding (denominator) (1) : Basic 11,667 11,570 11,642 11,547 Dilutive non-vested restricted stock awards — 8 — 39 Diluted 11,667 11,578 11,642 11,586 Net income (loss) per common share (1) : Basic $ (46.75) $ 14.99 $ (40.44) $ 14.19 Diluted $ (46.75) $ 14.98 $ (40.44) $ 14.15 _____________________________________________________________________________ (1) Shares and per share data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies a. Litigation From time to time, the Company is subject to various legal proceedings arising in the ordinary course of business, including proceedings for which the Company may not have insurance coverage. While many of these matters involve inherent uncertainty, as of the date hereof, the Company does not currently believe that any such legal proceedings will have a material adverse effect on the Company's business, financial position, results of operations or liquidity. b. Drilling rig contract The Company has committed to a drilling rig contract with a third party to facilitate the Company's drilling plans. This contract is for a term of multiple months and contains an early termination clause that requires the Company to potentially pay penalties to the third party should the Company cease drilling efforts. These penalties would negatively impact the Company's financial statements upon early contract termination. There were no penalties incurred for early contract termination for either of the six months ended June 30, 2020 or 2019. As the Company's current drilling rig contract is an operating lease with an initial term greater than 12 months, the present value of the future commitment as of June 30, 2020 related to the drilling rig contract is included in current and noncurrent operating lease liabilities on the unaudited consolidated balance sheet as of June 30, 2020. Management does not currently anticipate the early termination of this contract in 2020. c. Firm sale and transportation commitments The Company has committed to deliver, for sale or transportation, fixed volumes of product under certain contractual arrangements that specify the delivery of a fixed and determinable quantity. If not fulfilled, the Company is subject to firm transportation payments on excess pipeline capacity and other contractual penalties. These commitments are normal and customary for the Company's business. In certain instances, the Company has used spot market purchases to meet its commitments in certain locations or due to favorable pricing. No contractual penalties were incurred during the six months ended June 30, 2020. The Company incurred contractual penalties of $0.5 million and $1.0 million during the three and six months ended June 30, 2019, respectively. Future firm sale and transportation commitments of $306.4 million as of June 30, 2020 are not recorded on the unaudited consolidated balance sheet. d. Federal and state regulations Oil and natural gas exploration, production and related operations are subject to extensive federal and state laws, rules and regulations. Failure to comply with these laws, rules and regulations can result in substantial penalties. The regulatory burden on the oil and natural gas industry increases the cost of doing business and affects profitability. The Company believes that it is in compliance with currently applicable federal and state regulations related to oil and natural gas exploration and production, and that compliance with the current regulations will not have a material adverse impact on the financial position or results of operations of the Company. These rules and regulations are frequently amended or reinterpreted; therefore, the Company is unable to predict the future cost or impact of complying with these regulations. e. Environmental The Company is subject to extensive federal, state and local environmental laws and regulations. These laws, among other things, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed in the period incurred. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment or remediation is probable and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments is fixed and readily determinable. Management believes no materially significant liabilities of this nature existed as of June 30, 2020 or December 31, 2019. |
Supplemental cash flow and non-
Supplemental cash flow and non-cash information | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flow and non-cash information | Supplemental cash flow and non-cash information The following table presents supplemental cash flow and non-cash information for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Supplemental cash flow information: Cash paid for interest, net of $1,822 and $420 of capitalized interest, respectively $ 25,595 $ 29,721 Net cash received for income taxes (1) $ — $ (691) Supplemental non-cash investing information: Fair value of contingent consideration on acquisition date (2) $ 225 $ — (Decrease) increase in accrued capital expenditures $ (15,024) $ 2,335 Capitalized share-settled equity-based compensation $ 1,647 $ 1,863 Capitalized asset retirement cost $ 1,082 $ 356 ______________________________________________________________________________ (1) See Note 16 for additional discussion of the Company's income taxes. (2) See Notes 3.a and 9.c for discussion of the Company's 2020 asset acquisition of oil and natural gas properties that includes a contingent consideration. See Note 10.a for discussion of the quarterly remeasurement of the contingent consideration. The following table presents supplemental non-cash adjustments information related to operating leases for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 2,349 $ 25,212 ______________________________________________________________________________ |
Asset retirement obligations
Asset retirement obligations | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations | Asset retirement obligations See Note 2.l in the 2019 Annual Report for discussion of the Company's significant accounting policies for asset retirement obligations. The following table reconciles the Company's asset retirement obligation liability associated with tangible long-lived assets for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Liability at beginning of period $ 62,718 $ 56,882 Liabilities added due to acquisitions, drilling, midstream service asset construction and other 1,082 356 Accretion expense 2,223 2,072 Liabilities settled due to plugging and abandonment or removed due to sale (778) (1,362) Liability at end of period $ 65,245 $ 57,948 |
Revenue recognition
Revenue recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | Revenue recognition Oil, NGL and natural gas sales and sales of purchased oil revenues are generally recognized at the point in time that control of the product is transferred to the customer. Midstream service revenues are generated through fees for products and services that need to be delivered by midstream infrastructure, including oil and liquids-rich natural gas gathering services as well as fuel for drilling and completions activities, natural gas lift and water delivery, recycling and takeaway and are recognized over time as the customer benefits from these services when provided. A more detailed summary of the underlying contracts that give rise to the Company's revenues and methods of recognition can be found in Note 13.b in the 2019 Annual Report. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company is subject to federal and state income taxes and the Texas franchise tax. As of June 30, 2020, the Company had federal net operating loss carryforwards totaling $2.0 billion, and of this amount, $1.7 billion will begin to expire in 2026 and $299.3 million will not expire but may be limited in future periods, and state of Oklahoma net operating loss carryforwards totaling $34.7 million that will begin to expire in 2032. As of June 30, 2020, the Company believes it is more likely than not that a portion of the net operating loss carryforwards are not fully realizable. The Company continues to consider new evidence, both positive and negative, in determining whether, based on the weight of that evidence, a valuation allowance is needed. Such consideration includes projected future cash flows from its oil, NGL and natural gas reserves (including the timing of those cash flows), the reversal of deferred tax liabilities recorded as of June 30, 2020, the Company's ability to capitalize intangible drilling costs, rather than expensing these costs and future projections of Oklahoma sourced income. As of June 30, 2020, a total valuation allowance of $404.5 million has been recorded to offset the Company's federal and Oklahoma net deferred tax assets, resulting in a Texas net deferred tax asset of $2.3 million, which is included in "Other noncurrent assets, net" on the unaudited consolidated balance sheets. With the passage of the Tax Cuts and Jobs Act of 2017, the Alternative Minimum Tax ("AMT") on corporations was appealed and a provision was added allowing corporations to offset future tax liabilities by the amount of AMT paid with an AMT credit carryforward. The Coronavirus Aid, Relief, and Economic Security Act, enacted March 27, 2020 ("CARES Act"), modified the opportunity for corporations to receive the AMT carryover refunds by adding in a provision where the AMT credit carryforwards do not expire and are fully refundable with the filing of the Company's 2019 consolidated tax return. The Company paid AMT in 2017, creating an AMT credit carryforward in the amount of $4.1 million, of which $2.0 million was received in 2019. The remaining $2.1 million is included in "Accounts receivable, net" on the unaudited consolidated balance sheet as of June 30, 2020. |
Related parties
Related parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related parties | Related parties a. Helmerich & Payne, Inc. The former Chairman of the Company's board of directors, whose term on the Company's board of directors ended on May 14, 2020, is on the board of directors of Helmerich & Payne, Inc. ("H&P"). During each of the six months ended June 30, 2020 and 2019, the Company has one drilling rig contract with H&P that is accounted for as a long-term operating lease due to its initial term of greater than 12 months, which is capitalized and included in "Operating lease right-of-use-assets" on the unaudited consolidated balance sheets. The present value of the future commitment is included in current and noncurrent operating lease liabilities on the unaudited consolidated balance sheets. Capital expenditures for oil and natural gas properties are capitalized and are included in "Evaluated oil and natural gas properties" on the unaudited consolidated balance sheets. See Note 5 for additional discussion of the Company's significant accounting policies on leases. See Note 12.b for additional discussion of the Company's drilling rig contract. The following table presents the capital expenditures for oil and natural gas properties paid to H&P included in the unaudited consolidated statements of cash flows for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Capital expenditures for oil and natural gas properties (1) $ 18,104 $ 6,293 ____________________________________________________________________________ (1) Amount reflected for the six months ended June 30, 2020 is through the date of the former Chairman's expiration of term on the Company's board of directors on May 14, 2020. b. Halliburton Beginning in 2020, the Chairman of the Company's board of directors is on the board of directors of Halliburton Company ("Halliburton"). Halliburton provides drilling and completions services to the Company. The following table presents the capital expenditures for oil and natural gas properties paid to Halliburton included in the unaudited consolidated statement of cash flows for the period presented: Six months ended (in thousands) June 30, 2020 Capital expenditures for oil and natural gas properties $ 51,251 |
Organizational restructurings
Organizational restructurings | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Organizational restructurings | Organizational restructurings On June 17, 2020, the Company announced organizational changes, including a workforce reduction of 22 individuals which included a senior officer, that were implemented immediately, subject to certain administrative procedures. In light of the COVID-19 pandemic and lower oil prices, the Company’s board of directors continues to monitor and evaluate the Company’s business and strategy and to reduce costs and better position the Company for the future. In connection with these changes, the Company incurred $4.2 million of one-time charges during the three months ended June 30, 2020, comprised of compensation, tax, professional, outplacement and insurance-related expenses, with $1.7 million accrued in "Other current liabilities" on the unaudited consolidated balance sheet as of June 30, 2020. All equity-based compensation awards held by the affected employees were forfeited and the corresponding equity-based compensation was reversed totaling $0.8 million during the three months ended June 30, 2020. See Note 8 for additional information on the associated forfeiture activity. On April 2, 2019, the Company announced the retirement of two of its senior officers. Additionally, on April 8, 2019, the Company committed to a company-wide reorganization effort (the "Plan") that included a workforce reduction of approximately 20%, which included an executive officer. The reduction in workforce was communicated to employees on April 8, 2019 and implemented immediately, subject to certain administrative procedures. The Company's board of directors approved the Plan in response to market conditions and to reduce costs and better position the Company for the future. In connection with the retirements on April 2, 2019 and with the Plan, the Company incurred $10.4 million of one-time charges during the three months ended June 30, 2019 comprised of compensation, taxes, professional fees, outplacement and insurance-related expenses. All equity-based compensation awards held by the two senior officers, the executive officer and the employees who were affected by the Plan were forfeited and the corresponding equity-based compensation was reversed totaling $6.1 million during the three months ended June 30, 2019. See Note 6.c in the second-quarter 2019 Quarterly Report for additional information on the associated forfeiture activity. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events a. Senior Secured Credit Facility On July 14, 2020, the Company borrowed an additional $45.0 million on the Senior Secured Credit Facility. On July 31, 2020, the Company made a $20 million payment on the Senior Secured Credit Facility. As a result, the outstanding balance under the Senior Secured Credit Facility was $300.0 million as of August 4, 2020. On August 5, 2020, the Company received a waiver from the lenders under its Senior Secured Credit Facility of certain representations and warranties relating to the Company's March 31, 2020 quarterly results. Such representations and warranties were incorrect at the time they were given due to the Company's previously disclosed accounting error. Additionally, due to the accounting error the Company was temporarily not in compliance with the financial reporting covenants. As of the filing of its restated unaudited consolidated financial statements for the quarter ended March 31, 2020, the Company regained compliance with the financial reporting covenants under the Senior Secured Credit Facility and the waiver cured the past defaults of the representations and warranties. The Senior Secured Credit Facility contains both financial and non-financial covenants, all of which the Company was in compliance with for all periods presented. b. Derivatives The Company entered into additional Brent ICE swaps for 2021 and 2022 subsequent to June 30, 2020. The following table summarizes the resulting open Brent ICE swap positions as of June 30, 2020, updated for derivatives that were entered into through August 5, 2020, for the settlement periods presented: Remaining year 2020 Year 2021 Year 2022 Oil: Brent ICE swaps: Volume (Bbl) 1,196,000 4,307,000 2,920,000 Weighted-average price ($/Bbl) $ 63.07 $ 49.71 $ 46.40 See Note 9.a for a table that includes the Company's other commodity derivative positions as of June 30, 2020. There has been no other activity subsequent to June 30, 2020. |
Organization and basis of pre_2
Organization and basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | b. Basis of presentation The unaudited consolidated financial statements were derived from the historical accounting records of the Company and reflect the historical financial position, results of operations and cash flows for the periods described herein. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All material intercompany transactions and account balances have been eliminated in the consolidation of accounts. The unaudited consolidated financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet as of December 31, 2019 is derived from audited consolidated financial statements. In the opinion of management, the unaudited consolidated financial statements reflect all necessary adjustments to present fairly the Company's financial position as of June 30, 2020, results of operations for the three and six months ended June 30, 2020 and 2019 and cash flows for the six months ended June 30, 2020 and 2019. Certain disclosures have been condensed or omitted from the unaudited consolidated financial statements. Accordingly, the unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2019 Annual Report. |
Use of estimates in the preparation of interim unaudited consolidated financial statements | Use of estimates in the preparation of interim unaudited consolidated financial statements The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and 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. Although management believes these estimates are reasonable, actual results could differ. For further information regarding the use of estimates and assumptions, see Note 2.b in the 2019 Annual Report and Notes 8.e and 8.f pertaining to the Company's 2020 performance unit awards and phantom unit awards, respectively. |
Reclassifications | ReclassificationsCertain amounts in the accompanying unaudited consolidated financial statements have been reclassified to conform to the 2020 presentation. These reclassifications had no impact on previously reported total assets, total liabilities, net income (loss), stockholders' equity or total operating, investing or financing cash flows. |
Recently issued or adopted accounting pronouncements | The Company considers the applicability and impact of all accounting standard updates ("ASU") issued by the Financial Accounting Standards Board to the Accounting Standards Codification ("ASC") and has determined there are no ASUs that are not yet adopted and meaningful to disclose as of June 30, 2020. On January 1, 2020, the Company adopted ASU 2016-13 to Topic 326, Financial Instruments—Credit Losses , that requires an allowance for expected credit losses to be recorded against newly recognized financial assets measured at an amortized cost basis. The measurement of expected credit losses is based on relevant information about past events, including historical |
Full cost | The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain employee-related costs, incurred for the purpose of acquiring, exploring for or developing oil and natural gas properties, are capitalized and, once evaluated, depleted on a composite unit-of-production method based on estimates of proved oil, NGL and natural gas reserves. The depletion base includes estimated future development costs and dismantlement, restoration and abandonment costs, net of estimated salvage values. Capitalized costs include the cost of drilling and equipping productive wells, dry hole costs, lease acquisition costs, delay rentals and other costs related to such activities. Costs, including employee-related costs, associated with production and general corporate activities are expensed in the period incurred. The Company excludes unevaluated property acquisition costs and exploration costs from the depletion calculation until it is determined whether or not proved reserves can be assigned to the properties. The Company capitalizes a portion of its interest costs to its unevaluated properties and such costs become subject to depletion when proved reserves can be assigned to the associated properties. All items classified as unevaluated properties are assessed on a quarterly basis for possible impairment. The assessment includes consideration of the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of proved reserves and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion. Sales of oil and natural gas properties, whether or not being depleted currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, NGL and natural gas. |
Treasury stock | Treasury stock is recorded at cost, which includes incremental direct transaction costs, and is retired upon acquisition as a result of (i) stock exchanged to satisfy tax withholding that arises upon the lapse of restrictions on share-settled equity-based awards at the awardee's election or (ii) stock exchanged for the cost of exercise of stock options at the awardee's election. |
Equity Incentive Plan | The Laredo Petroleum, Inc. Omnibus Equity Incentive Plan, as amended and restated as of May 16, 2019 (the "Equity Incentive Plan"), provides for the granting of incentive awards in the form of restricted stock awards, stock option awards, performance share awards, outperformance share awards, performance unit awards, phantom unit awards and other awards. On June 1, 2020, in connection with the effectiveness of the reverse stock split and Authorized Share Reduction, the board of directors approved and adopted an amendment to the Equity Incentive Plan to proportionately adjust the limitations on awards that may be granted under the Equity Incentive Plan. Following the amendment, an aggregate of 1,492,500 shares may be issued under the Equity Incentive Plan. See Note 7.a for additional discussion of the reverse stock split and Authorized Share Reduction. The Company recognizes the fair value of equity-based compensation awards, expected to vest over the requisite service period, as a charge against earnings, net of amounts capitalized. The Company's restricted stock awards, stock option awards, performance share awards and outperformance share award are accounted for as equity awards and the Company's performance unit awards and phantom unit awards are accounted for as liability awards. Equity-based compensation expense is included in "General and administrative" on the unaudited consolidated statements of operations. The Company capitalizes a portion of equity-based compensation for employees who are directly involved in the acquisition, exploration or development of oil and natural gas properties into the full cost pool. Capitalized equity-based compensation is included in "Evaluated properties" on the unaudited consolidated balance sheets. |
Net income (loss) per common share | Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average common shares outstanding for the period. Diluted net income (loss) per common share reflects the potential dilution of non-vested restricted stock awards, outstanding stock option awards, non-vested performance share awards and the non-vested outperformance share award. See Note 8 for additional discussion of these awards. For the three and six months ended June 30, 2020, all of these awards were anti-dilutive due to the Company's net loss and, therefore, were excluded from the calculation of diluted net income (loss) per common share. For the three and six months ended June 30, 2019, the dilutive effects of these awards were calculated utilizing the treasury stock method. See Note 9 in the second-quarter 2019 Quarterly Report for discussion of the awards excluded from the calculation of diluted net income (loss) per common share. |
Revenue recognition | Oil, NGL and natural gas sales and sales of purchased oil revenues are generally recognized at the point in time that control of the product is transferred to the customer. Midstream service revenues are generated through fees for products and services that need to be delivered by midstream infrastructure, including oil and liquids-rich natural gas gathering services as well as fuel for drilling and completions activities, natural gas lift and water delivery, recycling and takeaway and are recognized over time as the customer benefits from these services when provided. |
Acquisitions and divestitures (
Acquisitions and divestitures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of final estimate of the fair values of the assets acquired and liabilities assumed | The following table reflects an aggregate of the final estimate of the fair values of the assets acquired and liabilities assumed in this business combination on December 6, 2019: (in thousands) Fair values of acquisition Fair values of net assets: Evaluated oil and natural gas properties $ 29,921 Unevaluated oil and natural gas properties 34,700 Asset retirement cost 2,728 Total assets acquired 67,349 Asset retirement obligations (2,728) Net assets acquired $ 64,621 Fair values of consideration paid for net assets: Cash consideration $ 64,621 |
Property and equipment (Tables)
Property and equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The following table presents the Company's property and equipment as of the dates presented: (in thousands) June 30, 2020 December 31, 2019 Evaluated oil and natural gas properties $ 7,689,108 $ 7,421,799 Less accumulated depletion and impairment (6,429,794) (5,725,114) Evaluated oil and natural gas properties, net 1,259,314 1,696,685 Unevaluated oil and natural gas properties not being depleted 127,116 142,354 Midstream service assets 181,239 180,932 Less accumulated depreciation and impairment (64,413) (52,254) Midstream service assets, net 116,826 128,678 Depreciable other fixed assets 38,336 37,894 Less accumulated depreciation and amortization (24,533) (23,649) Depreciable other fixed assets, net 13,803 14,245 Land 19,198 18,259 Total property and equipment, net $ 1,536,257 $ 2,000,221 See Note 10.b for discussion of impairments of long-lived assets during the six months ended June 30, 2020. See Note 6 in the 2019 Annual Report for additional discussion of the Company's property and equipment. The following table presents depletion expense, which is included in "Depletion, depreciation and amortization" on the unaudited consolidated statements of operations, and depletion expense per BOE sold of evaluated oil and natural gas properties for the periods presented: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Depletion expense of evaluated oil and natural gas properties $ 63,305 $ 61,938 $ 121,057 $ 121,308 Depletion expense per BOE sold $ 7.39 $ 8.27 $ 7.36 $ 8.51 The following table presents full cost ceiling impairment expense, which is included in "Impairment expense" on the unaudited consolidated statements of operations for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Full cost ceiling impairment expense $ 406,448 $ — $ 583,630 $ — |
Schedule of costs incurred in the acquisition, exploration and development of oil and natural gas properties | The following table presents costs incurred in the acquisition, exploration and development of oil and natural gas properties, with asset retirement obligations included in evaluated property acquisition costs and development costs, for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Property acquisition costs: — Evaluated $ — $ — $ 7,586 $ — Unevaluated 912 2,880 16,468 2,880 Exploration costs 3,374 5,116 10,084 12,621 Development costs 72,567 123,664 218,725 276,381 Total oil and natural gas properties costs incurred $ 76,853 $ 131,660 $ 252,863 $ 291,882 |
Schedule of capitalized related employee costs incurred for the purpose of exploring for or developing oil and natural gas properties | The following table presents capitalized employee-related costs incurred in the acquisition, exploration and development of oil and natural gas properties for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Capitalized employee-related costs $ 4,092 $ 3,430 $ 8,597 $ 10,112 |
Schedule of benchmark prices and realized prices | The following table presents the Benchmark Prices and the Realized Prices as of the dates presented: June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 Benchmark Prices: Oil ($/Bbl) $ 43.60 $ 52.23 $ 52.19 $ 54.27 $ 57.90 NGL ($/Bbl) (1) $ 16.87 $ 19.36 $ 21.14 $ 23.93 $ 28.21 Natural gas ($/MMBtu) $ 0.87 $ 0.58 $ 0.87 $ 0.85 $ 1.14 Realized Prices: Oil ($/Bbl) $ 44.97 $ 52.47 $ 52.12 $ 52.86 $ 55.69 NGL ($/Bbl) $ 7.66 $ 10.47 $ 12.21 $ 14.78 $ 18.64 Natural gas ($/Mcf) $ 0.53 $ 0.28 $ 0.53 $ 0.52 $ 0.70 _____________________________________________________________________________ (1) Based on the Company's average composite NGL barrel. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table presents the Company's long-term debt and debt issuance costs, net included in "Long-term debt, net" on the unaudited consolidated balance sheets as of the dates presented: June 30, 2020 December 31, 2019 (in thousands) Long-term debt Debt issuance costs, net Long-term debt, net Long-term debt Debt issuance costs, net Long-term debt, net January 2022 Notes (1) $ — $ — $ — $ 450,000 $ (2,034) $ 447,966 March 2023 Notes (1) — — — 350,000 (2,549) 347,451 January 2025 Notes (2) 600,000 (9,979) 590,021 — — — January 2028 Notes (2) 400,000 (6,857) 393,143 — — — Senior Secured Credit Facility (3) 275,000 — 275,000 375,000 — 375,000 Long-term debt, net $ 1,275,000 $ (16,836) $ 1,258,164 $ 1,175,000 $ (4,583) $ 1,170,417 ______________________________________________________________________________ (1) During the six months ended June 30, 2020, the Company wrote off debt issuance costs in connection with the extinguishment of the January 2022 Notes and the March 2023 Notes, which are included in "Loss on extinguishment of debt" on the unaudited consolidated statement of operations. (2) Debt issuance costs for the January 2025 Notes and the January 2028 Notes are amortized on a straight-line basis over the respective terms of the notes. |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of restricted stock award activity | The following table reflects the restricted stock award activity for the six months ended June 30, 2020: (in thousands, except for weighted-average grant-date fair value) Restricted stock awards (1) Weighted-average grant-date fair value (per share) (1) Outstanding as of December 31, 2019 275 $ 85.89 Granted 152 $ 18.14 Forfeited (44) $ 51.06 Vested (2) (123) $ 85.25 Outstanding as of June 30, 2020 260 $ 52.48 _____________________________________________________________________________ (1) Shares and per share data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. |
Schedule of performance share and unit award activity | The following table reflects the performance share award activity for the six months ended June 30, 2020: (in thousands, except for weighted-average grant-date fair value) Performance share awards (1) Weighted-average grant-date fair value (per share) 1) Outstanding as of December 31, 2019 115 $ 107.05 Forfeited (10) $ 111.75 Lapsed (2) (8) $ 379.20 Outstanding as of June 30, 2020 97 $ 84.12 ______________________________________________________________________________ (1) Shares and per share data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. (2) The performance share awards granted on February 17, 2017 had a performance period of January 1, 2017 to December 31, 2019 and, as their market criteria were not satisfied, resulted in a TSR modifier of 0% based on the Company finishing in the 15th percentile of its peer group for relative TSR. As such, the granted units lapsed and were not converted into the Company's common stock during the three months ended March 31, 2020. The following table reflects the performance unit award activity for the six months ended June 30, 2020: (in thousands) Performance units (1) Outstanding as of December 31, 2019 (2) — Granted (3) 123 Forfeited (24) Outstanding as of June 30, 2020 99 ______________________________________________________________________________ (1) Units have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. (2) The performance unit awards granted on February 28, 2019 were originally determined to be liability awards due to the board of directors election to settle the awards in cash. These awards were converted to performance share awards during the three months ended June 30, 2019. See Note 8.b in the 2019 Annual Report for additional information on the award conversion. |
Schedule of assumptions used to estimate fair value | The following table presents the fair values per performance share and the expense per performance share, which is the fair value per performance share adjusted for the estimated payout of the performance criteria, for the outstanding performance share awards as of June 30, 2020 for the grant dates presented: June 3, 2019 February 28, 2019 (1) February 16, 2018 Market Criteria: (1/4) RTSR Factor + (1/4) ATSR Factor: Grant-date fair value per performance share (2) $ 49.00 $ 79.61 $ 201.65 Expense per performance share as of June 30, 2020 (2) $ 49.00 $ 79.61 $ 201.65 Performance Criteria: (1/2) ROACE Factor: Grant-date fair value per performance share (2) $ 51.80 $ 69.80 $ 167.20 Estimated payout for expense as of June 30, 2020 175 % 175 % 68 % Expense per performance share as of June 30, 2020 (2)(3) $ 90.65 $ 122.15 $ 113.70 Combined: Grant-date fair value per performance share (2)(4) $ 50.40 $ 74.71 $ 184.43 Expense per performance share as of June 30, 2020 (2)(5) $ 69.83 $ 100.88 $ 157.68 ______________________________________________________________________________ (1) The fair values of the performance shares granted on February 28, 2019 are based on the May 16, 2019 modification date. See Note 8.b in the 2019 Annual Report for additional information on the award conversion. (2) Per share data has been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. (3) As the (1/2) ROACE Factor is based on performance criteria, the expense fluctuates based on the estimated payout and is redetermined each reporting period and the life-to-date recognized expense for the respective awards is adjusted accordingly. (4) The combined grant-date fair value per performance share is the combination of the fair value per performance share weighted for the market and performance criteria for the respective awards. (5) The combined expense per performance share is the combination of the expense per performance share for market and performance criteria for the respective awards. The following table presents (i) the fair values per performance unit and the assumptions used to estimate these fair values per performance unit and (ii) the expense per performance unit, which is the fair value per performance unit adjusted for the estimated payout of the performance criteria, for the outstanding performance unit awards as of June 30, 2020 for the grant date presented: March 5, 2020 Market criteria: (1/3) RTSR Factor + (1/3) ATSR Factor: Fair value assumptions: Remaining performance period 2.52 years Risk-free interest rate (1) 0.19 % Dividend yield — % Expected volatility (2) 113.53 % Closing stock price on June 30, 2020 $ 13.86 Fair value per performance unit as of June 30, 2020 $ 20.00 Expense per performance unit as of June 30, 2020 $ 20.00 Performance criteria: (1/3) ROACE Factor: Fair value assumptions: Closing stock price on June 30, 2020 $ 13.86 Fair value per performance unit as of June 30, 2020 $ 13.86 Estimated payout for expense as of June 30, 2020 100.00 % Expense per performance unit as of June 30, 2020 (3) $ 13.86 Combined: Fair value per performance unit as of June 30, 2020 (4) $ 17.96 Expense per performance unit as of June 30, 2020 (5) $ 17.96 ______________________________________________________________________________ (1) The remaining performance period matched zero-coupon risk-free interest rate was derived from the United States ("U.S.") Treasury constant maturities yield curve on June 30, 2020. (2) The Company utilized its own remaining performance period matched historical volatility in order to develop the expected volatility. (3) As the (1/3) ROACE Factor is based on performance criteria, the expense fluctuates based on the estimated payout and is redetermined each reporting period and the life-to-date recognized expense for the award is adjusted accordingly. (4) The combined fair value per performance unit is the combination of the fair value per performance unit weighted for the market and performance criteria for the award. |
Schedule of phantom unit award activity | The following table reflects the phantom unit award activity for the six months ended June 30, 2020: (in thousands, except for weighted-average fair value) Phantom units (1) Fair value as of June 30, 2020 (per unit) 1) Outstanding as of December 31, 2019 — $ — Granted 75 $ 13.86 Outstanding as of June 30, 2020 75 $ 13.86 ______________________________________________________________________________ (1) Units and per unit data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. |
Schedule of allocated share-based compensation costs | The following table reflects equity-based compensation expense for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Equity awards: Restricted stock awards $ 2,044 $ 2,559 $ 4,542 $ 7,882 Performance share awards 282 (3,191) 1,038 (27) Outperformance share award 43 13 87 13 Stock option awards 7 160 50 978 Total share-settled equity-based compensation, gross 2,376 (459) 5,717 8,846 Less amounts capitalized (682) 36 (1,647) (1,863) Total share-settled equity-based compensation, net 1,694 (423) 4,070 6,983 Liability awards: Phantom unit awards 86 — 111 — Performance unit awards (1) 166 (238) 190 — Total cash-settled equity-based compensation, gross 252 (238) 301 — Less amounts capitalized (33) 46 (43) — Total cash-settled equity-based compensation, net 219 (192) 258 — Total equity-based compensation, net $ 1,913 $ (615) $ 4,328 $ 6,983 ______________________________________________________________________________ (1) The performance unit award compensation for the three months ended March 31, 2019 was reversed during the second quarter of 2019 due to the awards' conversion from liability to equity and new fair values were assigned under performance share awards. See Note 8 in the 2019 Annual Report for discussion of this conversion and related modification accounting. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gain (loss) on derivatives | The following table summarizes components of the Company's gain (loss) on derivatives, net by type of derivative instrument for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Commodity $ (90,864) $ 88,394 $ 200,497 $ 40,029 Interest rate (338) — (338) — Contingent consideration 665 — 7,140 — Gain (loss) on derivatives, net $ (90,537) $ 88,394 $ 207,299 $ 40,029 |
Schedule of derivatives terminated | The following table details the commodity derivatives that were terminated: Aggregate volumes (Bbl) Floor price ($/Bbl) Ceiling price ($/Bbl) Contract period WTI NYMEX - Collars 912,500 $ 45.00 $ 71.00 January 2021 - December 2021 |
Schedule of open positions and derivatives in place | The following table summarizes open commodity derivative positions as of June 30, 2020, for commodity derivatives that were entered into through June 30, 2020, for the settlement periods presented: Remaining year 2020 Year 2021 Year 2022 Oil: WTI NYMEX - Swaps: Volume (Bbl) 3,606,400 — — Weighted-average price ($/Bbl) $ 59.50 $ — $ — Brent ICE: Puts (1) : Volume (Bbl) — 2,463,750 — Weighted-average floor price ($/Bbl) $ — $ 55.00 $ — Swaps: Volume (Bbl) 1,196,000 2,555,000 — Weighted-average price ($/Bbl) $ 63.07 $ 53.19 $ — Collars: Volume (Bbl) — 584,000 — Weighted-average floor price ($/Bbl) $ — $ 45.00 $ — Weighted-average ceiling price ($/Bbl) $ — $ 59.50 $ — Total Brent ICE: Total volume with floor (Bbl) 1,196,000 5,602,750 — Weighted-average floor price ($/Bbl) $ 63.07 $ 53.13 $ — Total volume with ceiling (Bbl) 1,196,000 3,139,000 — Weighted-average ceiling price ($/Bbl) $ 63.07 $ 54.37 $ — Total oil volume with floor (Bbl) 4,802,400 5,602,750 — Total oil volume with ceiling (Bbl) 4,802,400 3,139,000 — Basis Swaps: Brent ICE to WTI NYMEX - Basis Swaps Volume (Bbl) 1,803,200 — — Weighted-average differential ($/Bbl) $ 5.09 $ — $ — NGL - Mont Belvieu OPIS: Purity Ethane - Swaps: Volume (Bbl) 184,000 912,500 — Weighted-average price ($/Bbl) $ 13.60 $ 12.01 $ — Non-TET Propane - Swaps: Volume (Bbl) 625,600 730,000 — Weighted-average price ($/Bbl) $ 26.58 $ 25.52 $ — Non-TET Normal Butane - Swaps: Volume (Bbl) 220,800 255,500 — Weighted-average price ($/Bbl) $ 28.69 $ 27.72 $ — Non-TET Isobutane - Swaps: Volume (Bbl) 55,200 67,525 — Weighted-average price ($/Bbl) $ 29.99 $ 28.79 $ — Non-TET Natural Gasoline - Swaps: Volume (Bbl) 202,400 237,250 — Weighted-average price ($/Bbl) $ 45.15 $ 44.31 $ — Total NGL volume (Bbl) 1,288,000 2,202,775 — TABLE CONTINUES ON NEXT PAGE Natural gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 11,960,000 42,522,500 — Weighted-average price ($/MMBtu) $ 2.72 $ 2.59 $ — Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: Volume (MMBtu) 21,160,000 41,610,000 7,300,000 Weighted-average differential ($/MMBtu) $ (0.82) $ (0.55) $ (0.53) _____________________________________________________________________________ (1) Associated with these open positions were $50.6 million of premiums, which were paid at the respective contracts' inception during the three months ended June 30, 2020. The following table details the interest rate derivative that was entered into during the three months ended June 30, 2020: Notional amount Fixed rate Contract period LIBOR - Swap $ 100,000 0.345 % April 16, 2020 - April 18, 2022 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | The following tables present the Company's derivatives' three-level fair value hierarchy by (i) assets and liabilities, (ii) current and noncurrent, (iii) commodity, interest rate and contingent consideration derivatives and (iv) oil, NGL, natural gas, LIBOR and/or deferred premiums, and provide a total, on a gross basis and a net basis reflected in "Derivatives" on the unaudited consolidated balance sheets as of the dates presented: June 30, 2020 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the unaudited consolidated balance sheets Assets: Current: Commodity - Oil $ — $ 136,828 $ — $ 136,828 $ (2,560) $ 134,268 Commodity - NGL — 17,023 — 17,023 — 17,023 Commodity - Natural gas — 10,491 — 10,491 (10,078) 413 Commodity - Oil deferred premiums — — — — — — Noncurrent: Commodity - Oil $ — $ 33,684 $ — $ 33,684 $ (2,983) $ 30,701 Commodity - NGL — 7,381 — 7,381 — 7,381 Commodity - Natural gas — 3,604 — 3,604 (1,428) 2,176 Liabilities: Current: Commodity - Oil $ — $ (2,560) $ — $ (2,560) $ 2,560 $ — Commodity - NGL — — — — — — Commodity - Natural gas — (10,078) — (10,078) 10,078 — Commodity - Oil deferred premiums — — — — — — Interest rate - LIBOR — (177) — (177) — (177) Contingent consideration — (15) — (15) — (15) Noncurrent: Commodity - Oil $ — $ (2,983) $ — $ (2,983) $ 2,983 $ — Commodity - NGL — — — — — — Commodity - Natural gas — (1,428) — (1,428) 1,428 — Interest rate - LIBOR — (182) — (182) — (182) Contingent consideration — (420) — (420) — (420) Net derivative asset (liability) positions $ — $ 191,168 $ — $ 191,168 $ — $ 191,168 December 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total gross fair value Amounts offset Net fair value presented on the consolidated balance sheets Assets: Current: Commodity - Oil $ — $ 11,723 $ — $ 11,723 $ (5,301) $ 6,422 Commodity - NGL — 13,787 — 13,787 (1,297) 12,490 Commodity - Natural gas — 33,494 — 33,494 — 33,494 Commodity - Oil deferred premiums — — — — (477) (477) Noncurrent: Commodity - Oil $ — $ 1,577 $ — $ 1,577 $ — $ 1,577 Commodity - NGL — 9,547 — 9,547 — 9,547 Commodity - Natural gas — 12,263 — 12,263 — 12,263 Liabilities: Current: Commodity - Oil $ — $ (5,649) $ — $ (5,649) $ 5,301 $ (348) Commodity - NGL — (1,297) — (1,297) 1,297 — Commodity - Natural gas — — — — — — Commodity - Oil deferred premiums — — (477) (477) 477 — Interest rate - LIBOR — — — — — — Contingent consideration — (7,350) — (7,350) — (7,350) Noncurrent: Commodity - Oil $ — $ — $ — $ — $ — $ — Commodity - NGL — — — — — — Commodity - Natural gas — — — — — — Interest rate - LIBOR — — — — — — Contingent consideration — — — — — — Net derivative asset (liability) positions $ — $ 68,095 $ (477) $ 67,618 $ — $ 67,618 |
Schedule of changes in net assets classified as Level 3 measurements | The following table summarizes the changes in net assets and liabilities classified as Level 3 measurements for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Balance of Level 3 at beginning of period $ — $ (12,644) $ (477) $ (16,565) Change in net present value of commodity derivative deferred premiums (1) — (24) — (119) Settlements of commodity derivative deferred premiums (2) — 9,398 477 13,414 Balance of Level 3 at end of period $ — $ (3,270) $ — $ (3,270) ____________________________________________________________________________ (1) This amount is included in "Interest expense" on the unaudited consolidated statements of operations for the three and six months ended June 30, 2019. (2) The amounts for the three and six months ended June 30, 2019 include $7.2 million that represents the present value of deferred premiums settled upon their early termination. |
Schedule of carrying amount and fair value of debt instruments | The Company has not elected to account for its debt instruments at fair value. The following table presents the carrying amounts and fair values of the Company's debt as of the dates presented: June 30, 2020 December 31, 2019 (in thousands) Long-term Fair value (1) Long-term Fair value (1) January 2022 Notes $ — $ — $ 450,000 $ 439,875 March 2023 Notes — — 350,000 332,500 January 2025 Notes 600,000 414,750 — — January 2028 Notes 400,000 278,632 — — Senior Secured Credit Facility 275,000 274,947 375,000 375,275 Total $ 1,275,000 $ 968,329 $ 1,175,000 $ 1,147,650 ______________________________________________________________________________ (1) The fair values of the outstanding debt on the notes were determined using the Level 1 fair value hierarchy quoted market prices for each respective instrument as of June 30, 2020 and December 31, 2019. The fair values of the outstanding debt on the Senior Secured Credit Facility were estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of June 30, 2020 and December 31, 2019. |
Net income (loss) per common _2
Net income (loss) per common share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted weighted-average common shares outstanding and net income (loss) per common share | The following table reflects the calculations of basic and diluted (i) weighted-average common shares outstanding and (ii) net income (loss) per common share for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands, except for per share data) 2020 2019 2020 2019 Net income (loss) (numerator) $ (545,455) $ 173,382 $ (470,809) $ 163,891 Weighted-average common shares outstanding (denominator) (1) : Basic 11,667 11,570 11,642 11,547 Dilutive non-vested restricted stock awards — 8 — 39 Diluted 11,667 11,578 11,642 11,586 Net income (loss) per common share (1) : Basic $ (46.75) $ 14.99 $ (40.44) $ 14.19 Diluted $ (46.75) $ 14.98 $ (40.44) $ 14.15 _____________________________________________________________________________ (1) Shares and per share data have been retroactively adjusted to reflect the Company's 1-for-20 reverse stock split effective June 1, 2020, as described in Note 7.a. |
Supplemental cash flow and no_2
Supplemental cash flow and non-cash information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of non-cash investing & financing and supplemental cash flow information | The following table presents supplemental cash flow and non-cash information for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Supplemental cash flow information: Cash paid for interest, net of $1,822 and $420 of capitalized interest, respectively $ 25,595 $ 29,721 Net cash received for income taxes (1) $ — $ (691) Supplemental non-cash investing information: Fair value of contingent consideration on acquisition date (2) $ 225 $ — (Decrease) increase in accrued capital expenditures $ (15,024) $ 2,335 Capitalized share-settled equity-based compensation $ 1,647 $ 1,863 Capitalized asset retirement cost $ 1,082 $ 356 ______________________________________________________________________________ (1) See Note 16 for additional discussion of the Company's income taxes. (2) See Notes 3.a and 9.c for discussion of the Company's 2020 asset acquisition of oil and natural gas properties that includes a contingent consideration. See Note 10.a for discussion of the quarterly remeasurement of the contingent consideration. The following table presents supplemental non-cash adjustments information related to operating leases for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 2,349 $ 25,212 ______________________________________________________________________________ |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of asset retirement obligation liability | The following table reconciles the Company's asset retirement obligation liability associated with tangible long-lived assets for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Liability at beginning of period $ 62,718 $ 56,882 Liabilities added due to acquisitions, drilling, midstream service asset construction and other 1,082 356 Accretion expense 2,223 2,072 Liabilities settled due to plugging and abandonment or removed due to sale (778) (1,362) Liability at end of period $ 65,245 $ 57,948 |
Related parties (Tables)
Related parties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following table presents the capital expenditures for oil and natural gas properties paid to H&P included in the unaudited consolidated statements of cash flows for the periods presented: Six months ended June 30, (in thousands) 2020 2019 Capital expenditures for oil and natural gas properties (1) $ 18,104 $ 6,293 ____________________________________________________________________________ (1) Amount reflected for the six months ended June 30, 2020 is through the date of the former Chairman's expiration of term on the Company's board of directors on May 14, 2020. The following table presents the capital expenditures for oil and natural gas properties paid to Halliburton included in the unaudited consolidated statement of cash flows for the period presented: Six months ended (in thousands) June 30, 2020 Capital expenditures for oil and natural gas properties $ 51,251 |
Subsequent events (Tables)
Subsequent events (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Schedule of Derivatives Entered into Subsequent to the Reporting Period | The following table summarizes the resulting open Brent ICE swap positions as of June 30, 2020, updated for derivatives that were entered into through August 5, 2020, for the settlement periods presented: Remaining year 2020 Year 2021 Year 2022 Oil: Brent ICE swaps: Volume (Bbl) 1,196,000 4,307,000 2,920,000 Weighted-average price ($/Bbl) $ 63.07 $ 49.71 $ 46.40 See Note 9.a for a table that includes the Company's other commodity derivative positions as of June 30, 2020. There has been no other activity subsequent to June 30, 2020. |
Acquisitions and divestitures -
Acquisitions and divestitures - Narrative (Details) $ in Millions | Apr. 30, 2020USD ($)a | Apr. 09, 2020USD ($)awell | Feb. 04, 2020USD ($)a | Dec. 12, 2019USD ($)a | Dec. 06, 2019USD ($)aBoeproperty | Jun. 20, 2019USD ($)a | Dec. 31, 2022USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||||
Fair value of contingent consideration | $ 0.2 | |||||||
Howard County Net Acres | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 80 | |||||||
Glasscock County Net Acres | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 80 | |||||||
Number of producing wells sold | well | 2 | |||||||
Proceeds after transaction costs | $ 0.7 | |||||||
Howard County Net Acres | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 180 | 1,180 | 7,360 | |||||
Consideration transferred in acquisition | $ 0.6 | $ 22.5 | $ 131.7 | |||||
Fair value of contingent consideration | $ 0.2 | $ 6.2 | ||||||
Howard County Net Acres | Forecast | WTI NYMEX | Not designated as hedges | Oil put: January 2021 - December 2022 | Crude Oil | ||||||||
Business Acquisition [Line Items] | ||||||||
Notional amount of derivative | $ 1.2 | |||||||
Howard County Net Acres | Forecast | WTI NYMEX | Not designated as hedges | Oil put: January 2020 - December 2020 | Crude Oil | ||||||||
Business Acquisition [Line Items] | ||||||||
Notional amount of derivative | $ 20 | |||||||
Howard County Net Royalty Acres | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 750 | |||||||
Reagan County Net Acres | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 640 | |||||||
Consideration transferred in acquisition | $ 2.9 | |||||||
Acquired evaluated and unevaluated oil and natural gas properties in Glasscock County, Texas | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 4,475 | |||||||
Production reserve (BOE per day) | Boe | 1,400 | |||||||
Agreed purchase price | $ 64.6 | |||||||
Leasehold interests and Working interests | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of real estate properties | property | 49 |
Acquisitions and divestitures_2
Acquisitions and divestitures - 2019 Business combination (Details) - Acquired evaluated and unevaluated oil and natural gas properties in Glasscock County, Texas $ in Thousands | Dec. 06, 2019USD ($) |
Business Acquisition [Line Items] | |
Total assets acquired | $ 67,349 |
Asset retirement obligations | (2,728) |
Net assets acquired | 64,621 |
Cash consideration | 64,621 |
Evaluated oil and natural gas properties | |
Business Acquisition [Line Items] | |
Property, plant, and equipment acquired | 29,921 |
Unevaluated oil and natural gas properties | |
Business Acquisition [Line Items] | |
Property, plant, and equipment acquired | 34,700 |
Asset retirement cost | |
Business Acquisition [Line Items] | |
Property, plant, and equipment acquired | $ 2,728 |
Property and equipment - Compan
Property and equipment - Company property and equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Evaluated oil and natural gas properties | $ 7,689,108 | $ 7,421,799 |
Less accumulated depletion and impairment | (6,429,794) | (5,725,114) |
Evaluated oil and natural gas properties, net | 1,259,314 | 1,696,685 |
Unevaluated oil and natural gas properties not being depleted | 127,116 | 142,354 |
Midstream service assets, net | 116,826 | 128,678 |
Depreciable other fixed assets, net | 33,001 | 32,504 |
Property and equipment, net | 1,536,257 | 2,000,221 |
Midstream service assets | ||
Property, Plant and Equipment [Line Items] | ||
Midstream service assets | 181,239 | 180,932 |
Less accumulated depreciation and impairment | (64,413) | (52,254) |
Depreciable other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and impairment | (24,533) | (23,649) |
Depreciable other fixed assets | 38,336 | 37,894 |
Depreciable other fixed assets, net | 13,803 | 14,245 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable other fixed assets, net | $ 19,198 | $ 18,259 |
Property and equipment - Costs
Property and equipment - Costs incurred in the acquisition, exploration and development of oil and natural gas properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property acquisition costs: | ||||
Evaluated | $ 0 | $ 0 | $ 7,586 | $ 0 |
Unevaluated | 912 | 2,880 | 16,468 | 2,880 |
Exploration costs | 3,374 | 5,116 | 10,084 | 12,621 |
Development costs | 72,567 | 123,664 | 218,725 | 276,381 |
Total costs incurred | $ 76,853 | $ 131,660 | $ 252,863 | $ 291,882 |
Property and equipment - Other
Property and equipment - Other property and equipment information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)$ / Boe | Jun. 30, 2019USD ($)$ / Boe | Jun. 30, 2020USD ($)$ / Boe | Jun. 30, 2019USD ($)$ / Boe | |
Property, Plant and Equipment [Abstract] | ||||
Capitalized employee-related costs | $ 4,092 | $ 3,430 | $ 8,597 | $ 10,112 |
Depletion expense of evaluated oil and natural gas properties | $ 63,305 | $ 61,938 | $ 121,057 | $ 121,308 |
Depletion expense (USD per BOE) | $ / Boe | 7.39 | 8.27 | 7.36 | 8.51 |
Property and equipment - Benchm
Property and equipment - Benchmark prices and realized prices (Details) | 3 Months Ended | ||||
Jun. 30, 2020$ / MMBTU$ / bbl$ / MMcf | Mar. 31, 2020$ / bbl$ / MMcf$ / MMBTU | Dec. 31, 2019$ / bbl$ / MMBTU$ / MMcf | Sep. 30, 2019$ / bbl$ / MMcf$ / MMBTU | Jun. 30, 2019$ / bbl$ / MMBTU$ / MMcf | |
Oil ($/Bbl) | |||||
Property, Plant and Equipment [Line Items] | |||||
Benchmark Prices (USD per unit) | 43.60 | 52.23 | 52.19 | 54.27 | 57.90 |
Realized Prices (USD per unit) | 44.97 | 52.47 | 52.12 | 52.86 | 55.69 |
NGL ($/Bbl) | |||||
Property, Plant and Equipment [Line Items] | |||||
Benchmark Prices (USD per unit) | 16.87 | 19.36 | 21.14 | 23.93 | 28.21 |
Realized Prices (USD per unit) | 7.66 | 10.47 | 12.21 | 14.78 | 18.64 |
Natural gas ($/MMBtu) | |||||
Property, Plant and Equipment [Line Items] | |||||
Benchmark Prices (USD per unit) | $ / MMBTU | 0.87 | 0.58 | 0.87 | 0.85 | 1.14 |
Realized Prices (USD per unit) | $ / MMcf | 0.53 | 0.28 | 0.53 | 0.52 | 0.70 |
Property and equipment - Full c
Property and equipment - Full cost ceiling impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Full cost ceiling impairment expense | $ 406,448 | $ 0 | $ 583,630 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2020 |
Leases [Abstract] | |
Average working interest (as a percent) | 97.00% |
Debt - January 2025 and 2028 No
Debt - January 2025 and 2028 Notes (Details) - Senior Notes | Jan. 24, 2020USD ($) |
Debt Instrument [Line Items] | |
Proceeds from senior notes | $ 982,000,000 |
January 2025 Notes | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 600,000,000 |
Interest rate (as a percent) | 9.50% |
January 2028 Notes | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 400,000,000 |
Interest rate (as a percent) | 10.125% |
Debt - January 2022 and March 2
Debt - January 2022 and March 2023 Notes (Details) - USD ($) | Mar. 15, 2020 | Feb. 06, 2020 | Jan. 29, 2020 | Jan. 24, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Mar. 18, 2015 | Jan. 23, 2014 |
Debt Instrument [Line Items] | |||||||||
Outstanding debt | $ 1,258,164,000 | $ 1,170,417,000 | |||||||
Repayments of senior debt | 808,855,000 | $ 0 | |||||||
Gain (loss) on extinguishment of debt | (13,320,000) | $ 0 | |||||||
Senior Notes | January 2022 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 450,000,000 | ||||||||
Interest rate (as a percent) | 5.625% | ||||||||
Outstanding debt | $ 428,900,000 | 0 | 447,966,000 | ||||||
Repayments of senior debt | $ 21,100,000 | $ 431,600,000 | |||||||
Debt call price (as a percent) | 100.00% | ||||||||
Senior Notes | March 2023 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 350,000,000 | ||||||||
Interest rate (as a percent) | 6.25% | ||||||||
Outstanding debt | $ 299,400,000 | $ 0 | $ 347,451,000 | ||||||
Repayments of senior debt | $ 50,600,000 | $ 304,100,000 | |||||||
Debt call price (as a percent) | 101.563% |
Debt - Senior Secured Credit Fa
Debt - Senior Secured Credit Facility (Details) - Secured debt - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 2,000,000,000 | |
Current borrowing capacity | 725,000,000 | |
Amount outstanding | $ 275,000,000 | |
Credit facility, interest rate at period end (as a percent) | 2.19% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 80,000,000 | |
Letters of credit outstanding | $ 44,100,000 | $ 14,700,000 |
Debt - Long-term debt, net (Det
Debt - Long-term debt, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Feb. 06, 2020 | Jan. 24, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,275,000 | $ 1,275,000 | $ 1,175,000 | ||||
Debt issuance costs, net | (16,836) | (16,836) | (4,583) | ||||
Long-term debt, net | 1,258,164 | 1,258,164 | 1,170,417 | ||||
Write-off of debt issuance costs | 1,103 | $ 0 | 1,103 | $ 0 | |||
Senior Notes | January 2022 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | 0 | 450,000 | ||||
Debt issuance costs, net | 0 | 0 | (2,034) | ||||
Long-term debt, net | 0 | 0 | $ 428,900 | 447,966 | |||
Senior Notes | March 2023 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | 0 | 350,000 | ||||
Debt issuance costs, net | 0 | 0 | (2,549) | ||||
Long-term debt, net | 0 | 0 | $ 299,400 | 347,451 | |||
Senior Notes | January 2025 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 600,000 | 600,000 | 0 | ||||
Debt issuance costs, net | (9,979) | (9,979) | 0 | ||||
Long-term debt, net | 590,021 | 590,021 | 0 | ||||
Senior Notes | January 2028 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 400,000 | 400,000 | 0 | ||||
Debt issuance costs, net | (6,857) | (6,857) | 0 | ||||
Long-term debt, net | 393,143 | 393,143 | 0 | ||||
Secured debt | Senior Secured Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 275,000 | 275,000 | 375,000 | ||||
Debt issuance costs, net | 0 | 0 | 0 | ||||
Long-term debt, net | 275,000 | 275,000 | 375,000 | ||||
Write-off of debt issuance costs | 1,100 | ||||||
Debt issuance costs capitalized | 100 | ||||||
Secured debt | Senior Secured Credit Facility | Other noncurrent assets, net | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs related to line of credit arrangements | $ 2,800 | $ 2,800 | $ 4,500 |
Stockholders' equity - Narrativ
Stockholders' equity - Narrative (Details) | Jun. 01, 2020$ / sharesshares | Jun. 30, 2020$ / sharesshares | May 31, 2020shares | Dec. 31, 2019$ / sharesshares |
Equity [Abstract] | ||||
Conversation ratio of reverse stock split | 0.05 | |||
Common stock authorized (shares) | 22,500,000 | 22,500,000 | 450,000,000 | 22,500,000 |
Common stock par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock authorized (shares) | 50,000,000 | 50,000,000 | 50,000,000 | |
Preferred stock par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Capital stock authorized (shares) | 72,500,000 |
Equity Incentive Plan - Equity
Equity Incentive Plan - Equity Incentive Plan (Details) | Jun. 01, 2020shares |
Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock authorized for issuance (shares) | 1,492,500 |
Equity Incentive Plan - Restric
Equity Incentive Plan - Restricted stock awards (Details) - Restricted stock awards(1) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation not yet recognized | $ 10.5 |
Recognition period for costs not yet recognized | 1 year 8 months 19 days |
Vesting Alternative One, One Year from Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rate (as a percent) | 33.00% |
Vesting Alternative One, Two Years from Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rate (as a percent) | 33.00% |
Vesting Alternative One, Three Years from Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rate (as a percent) | 34.00% |
Equity Incentive Plan - Restr_2
Equity Incentive Plan - Restricted stock award activity (Details) - Restricted stock awards(1) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Restricted stock awards | |
Outstanding at the beginning of the period (shares) | shares | 275 |
Granted (shares) | shares | 152 |
Forfeited (shares) | shares | (44) |
Vested (shares) | shares | (123) |
Outstanding at the end of the period (shares) | shares | 260 |
Weighted-average grant-date fair value (per share) | |
Outstanding at the beginning of the period (USD per share) | $ / shares | $ 85.89 |
Granted (USD per share) | $ / shares | 18.14 |
Forfeited (USD per share) | $ / shares | 51.06 |
Vested (USD per share) | $ / shares | 85.25 |
Outstanding at the end of the period (USD per share) | $ / shares | $ 52.48 |
Equity instruments other than options, aggregate intrinsic value, vested | $ | $ 2.9 |
Equity Incentive Plan - Stock o
Equity Incentive Plan - Stock option awards (Details) - Stock option awards | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding (shares) | shares | 16,499 |
Weighted-average exercise price of options outstanding (USD per share) | $ / shares | $ 248.04 |
Weighted-average remaining contractual term of options outstanding | 3 years 2 months 1 day |
Aggregate intrinsic value of options vested and exercisable | $ | $ 0 |
Equity Incentive Plan - Perform
Equity Incentive Plan - Performance share awards (Details) - Performance share awards - USD ($) $ in Millions | Feb. 28, 2019 | Feb. 16, 2018 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period of the awards | 3 years | 3 years | |
Stock-based compensation not yet recognized | $ 4.6 | ||
Recognition period for costs not yet recognized | 1 year 6 months 21 days | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout range (as a percent) | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout range (as a percent) | 200.00% |
Equity Incentive Plan - Perfo_2
Equity Incentive Plan - Performance share award activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Performance share awards | |
Performance unit/share awards | |
Outstanding at the beginning of the period (shares) | shares | 115 |
Forfeited (shares) | shares | (10) |
Lapsed (shares) | shares | (8) |
Outstanding at the end of the period (shares) | shares | 97 |
Weighted-average grant-date fair value (per award) | |
Outstanding at the beginning of the period (USD per share) | $ / shares | $ 107.05 |
Forfeited (USD per share) | $ / shares | 111.75 |
Lapsed (USD per share) | $ / shares | 379.20 |
Outstanding at the end of the period (USD per share) | $ / shares | $ 84.12 |
February 17, 2017 | Performance share awards | |
Weighted-average grant-date fair value (per award) | |
RTSR Factor weight / TSR Modifier (as a percent) | 0.00% |
February 28, 2019 | Performance share awards with performance criteria | |
Weighted-average grant-date fair value (per award) | |
ROACE Factor weight (as a percent) | 50.00% |
February 28, 2019 | Performance share awards with market criteria | |
Weighted-average grant-date fair value (per award) | |
RTSR Factor weight / TSR Modifier (as a percent) | 25.00% |
ATSR Factor weight (as a percent) | 25.00% |
February 16, 2018 | Performance share awards with performance criteria | |
Weighted-average grant-date fair value (per award) | |
ROACE Factor weight (as a percent) | 50.00% |
February 16, 2018 | Performance share awards with market criteria | |
Weighted-average grant-date fair value (per award) | |
RTSR Factor weight / TSR Modifier (as a percent) | 25.00% |
ATSR Factor weight (as a percent) | 25.00% |
Equity Incentive Plan - Expense
Equity Incentive Plan - Expense per performance share award (Details) | 6 Months Ended |
Jun. 30, 2020$ / shares | |
June 3, 2019 | Performance share awards with market criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | $ 49 |
Expense per performance share award (USD per share) | 49 |
June 3, 2019 | Performance share awards with performance criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | $ 51.80 |
Estimated payout for expense (as a percent) | 175.00% |
Expense per performance share award (USD per share) | $ 90.65 |
June 3, 2019 | Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | 50.40 |
Expense per performance share award (USD per share) | 69.83 |
February 28, 2019 | Performance share awards with market criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | 79.61 |
Expense per performance share award (USD per share) | 79.61 |
February 28, 2019 | Performance share awards with performance criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | $ 69.80 |
Estimated payout for expense (as a percent) | 175.00% |
Expense per performance share award (USD per share) | $ 122.15 |
February 28, 2019 | Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | 74.71 |
Expense per performance share award (USD per share) | 100.88 |
February 16, 2018 | Performance share awards with market criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | 201.65 |
Expense per performance share award (USD per share) | 201.65 |
February 16, 2018 | Performance share awards with performance criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | $ 167.20 |
Estimated payout for expense (as a percent) | 68.00% |
Expense per performance share award (USD per share) | $ 113.70 |
February 16, 2018 | Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | 184.43 |
Expense per performance share award (USD per share) | $ 157.68 |
Equity Incentive Plan - Outperf
Equity Incentive Plan - Outperformance share awards (Details) - Outperformance share awards - USD ($) $ in Millions | Jun. 03, 2019 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Threshold consecutive trading days | 50 days | |
Requisite service period of the awards | 3 years | |
Stock-based compensation not yet recognized | $ 0.5 | |
Recognition period for costs not yet recognized | 4 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outperformance payout range (shares) | 0 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outperformance payout range (shares) | 50,000 | |
Final Date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rate (as a percent) | 33.30% | |
First Anniversary of Final Date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rate (as a percent) | 33.30% | |
Second Anniversary of Final Date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rate (as a percent) | 33.30% |
Equity Incentive Plan - Perfo_3
Equity Incentive Plan - Performance unit awards (Details) - Performance unit awards - USD ($) $ in Millions | Mar. 05, 2020 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period of the awards | 3 years | |
Stock-based compensation not yet recognized | $ 1.6 | |
Recognition period for costs not yet recognized | 2 years 9 months | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout range (as a percent) | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout range (as a percent) | 200.00% |
Equity Incentive Plan - Perfo_4
Equity Incentive Plan - Performance unit award activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2020shares | |
Performance unit awards | |
Performance unit/share awards | |
Outstanding at the beginning of the period (shares) | 0 |
Granted (shares) | 123 |
Forfeited (shares) | (24) |
Outstanding at the end of the period (shares) | 99 |
March 5, 2020 | Performance unit awards with market criteria | |
Performance unit/share awards | |
RTSR Factor weight (as a percent) | 33.30% |
ATSR Factor weight (as a percent) | 33.30% |
March 5, 2020 | Performance unit awards with performance criteria | |
Performance unit/share awards | |
ROACE Factor weight (as a percent) | 33.30% |
Equity Incentive Plan - Assumpt
Equity Incentive Plan - Assumptions used to estimate fair value of performance unit awards (Details) - March 5, 2020 | 6 Months Ended |
Jun. 30, 2020$ / shares | |
Performance unit awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per performance share award (USD per share) | $ 17.96 |
Expense per performance share award (USD per share) | $ 17.96 |
Performance unit awards with market criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining performance period | 2 years 6 months 7 days |
Risk-free interest rate (as a percent) | 0.19% |
Dividend yield (as a percent) | 0.00% |
Expected volatility (as a percent) | 113.53% |
Closing stock price (USD per share) | $ 13.86 |
Fair value per performance share award (USD per share) | 20 |
Expense per performance share award (USD per share) | 20 |
Performance unit awards with performance criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Closing stock price (USD per share) | $ 13.86 |
Estimated payout for expense (as a percent) | 100.00% |
Fair value per performance share award (USD per share) | $ 13.86 |
Expense per performance share award (USD per share) | $ 13.86 |
Equity Incentive Plan - Phantom
Equity Incentive Plan - Phantom unit award (Details) - Phantom unit awards $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based compensation not yet recognized | $ 0.9 |
Recognition period for costs not yet recognized | 2 years 9 months |
Vesting Alternative One, One Year from Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rate (as a percent) | 33.00% |
Vesting Alternative One, Two Years from Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rate (as a percent) | 33.00% |
Vesting Alternative One, Three Years from Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rate (as a percent) | 34.00% |
Equity Incentive Plan - Phant_2
Equity Incentive Plan - Phantom unit award activity (Details) - Phantom unit awards shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Phantom units | |
Outstanding at the beginning of the period (shares) | shares | 0 |
Granted (shares) | shares | 75 |
Outstanding at the end of the period (shares) | shares | 75 |
Weighted-average grant-date fair value (per award) | |
Outstanding at the beginning of the period (USD per share) | $ / shares | $ 0 |
Granted (USD per share) | $ / shares | 13.86 |
Outstanding at the end of the period (USD per share) | $ / shares | $ 13.86 |
Equity Incentive Plan - Equity-
Equity Incentive Plan - Equity-based compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Less amounts capitalized | $ (1,647) | $ (1,863) | ||
Total equity-based compensation, net | $ 1,913 | $ (615) | 4,328 | 6,983 |
Share-settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | 2,376 | (459) | 5,717 | 8,846 |
Less amounts capitalized | (682) | 36 | (1,647) | (1,863) |
Total equity-based compensation, net | 1,694 | (423) | 4,070 | 6,983 |
Restricted stock awards(1) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | 2,044 | 2,559 | 4,542 | 7,882 |
Performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | 282 | (3,191) | 1,038 | (27) |
Outperformance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | 43 | 13 | 87 | 13 |
Stock option awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | 7 | 160 | 50 | 978 |
Cash-settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | 252 | (238) | 301 | 0 |
Less amounts capitalized | (33) | 46 | (43) | 0 |
Total equity-based compensation, net | 219 | (192) | 258 | 0 |
Phantom unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | 86 | 0 | 111 | 0 |
Performance unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total equity-based compensation, gross | $ 166 | $ (238) | $ 190 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | Jun. 30, 2020derivative |
Derivative [Line Items] | |
Number of types of derivative instruments | 3 |
Derivatives - Gain (Loss) on De
Derivatives - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (90,537) | $ 88,394 | $ 207,299 | $ 40,029 |
Commodity | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (90,864) | 88,394 | 200,497 | 40,029 |
Interest rate | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (338) | 0 | (338) | 0 |
Contingent consideration | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 665 | $ 0 | $ 7,140 | $ 0 |
Derivatives - Derivatives termi
Derivatives - Derivatives terminated (Details) - Early Contract Termination - WTI NYMEX - Commodity - Oil - Collar Option January 2021 to December 2021 | 6 Months Ended |
Jun. 30, 2020$ / bblbbl | |
Derivative [Line Items] | |
Aggregate volumes (Bbl) | bbl | 912,500 |
Floor price ($/Bbl) | 45 |
Ceiling price ($/Bbl) | 71 |
Derivatives - Summary (Details)
Derivatives - Summary (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($) | Dec. 31, 2020MMBTU$ / bbl$ / MMBTUbbl | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2022MMBTU$ / MMBTU$ / bblbbl | Dec. 31, 2021MMBTU$ / bbl$ / MMBTUbbl | |
Derivative [Line Items] | ||||||
Premiums paid (received) for derivative financial instruments | $ | $ 51,070 | $ 6,249 | ||||
Outstanding at End of Period | ||||||
Derivative [Line Items] | ||||||
Premiums paid (received) for derivative financial instruments | $ | $ 50,600 | |||||
Forecast | Outstanding at End of Period | Not designated as hedges | Swap | Ethane | Commodity - NGL | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 184,000 | 0 | 912,500 | |||
Weighted-average price (USD per unit) | $ / bbl | 13.60 | 0 | 12.01 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Swap | Propane | Commodity - NGL | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 625,600 | 0 | 730,000 | |||
Weighted-average price (USD per unit) | $ / bbl | 26.58 | 0 | 25.52 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Swap | Normal Butane | Commodity - NGL | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 220,800 | 0 | 255,500 | |||
Weighted-average price (USD per unit) | $ / bbl | 28.69 | 0 | 27.72 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Swap | Isobutane | Commodity - NGL | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 55,200 | 0 | 67,525 | |||
Weighted-average price (USD per unit) | $ / bbl | 29.99 | 0 | 28.79 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Swap | Natural Gasoline | Commodity - NGL | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 202,400 | 0 | 237,250 | |||
Weighted-average price (USD per unit) | $ / bbl | 45.15 | 0 | 44.31 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Commodity | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 4,802,400 | |||||
Forecast | Outstanding at End of Period | Not designated as hedges | Commodity | Commodity - NGL | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 1,288,000 | 0 | 2,202,775 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Commodity | Floor | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 0 | 5,602,750 | ||||
Forecast | Outstanding at End of Period | Not designated as hedges | Commodity | Ceiling | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 4,802,400 | 0 | 3,139,000 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | WTI NYMEX | Swap | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 3,606,400 | 0 | 0 | |||
Weighted-average price (USD per unit) | $ / bbl | 59.50 | 0 | 0 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Swap | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 1,196,000 | 0 | 2,555,000 | |||
Weighted-average price (USD per unit) | $ / bbl | 63.07 | 0 | 53.19 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Put | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 0 | 0 | 2,463,750 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Put | Floor | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Weighted-average price (USD per unit) | $ / bbl | 0 | 0 | 55 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Collar | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 0 | 0 | 584,000 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Collar | Floor | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Weighted-average price (USD per unit) | $ / bbl | 0 | 0 | 45 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Collar | Ceiling | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Weighted-average price (USD per unit) | $ / bbl | 0 | 0 | 59.50 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Commodity | Floor | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 1,196,000 | 0 | 5,602,750 | |||
Weighted-average price (USD per unit) | $ / bbl | 63.07 | 0 | 53.13 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE | Commodity | Ceiling | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 1,196,000 | 0 | 3,139,000 | |||
Weighted-average price (USD per unit) | $ / bbl | 63.07 | 0 | 54.37 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Brent ICE to WTI NYMEX | Basis Swap | Commodity - Oil | ||||||
Derivative [Line Items] | ||||||
Aggregate volumes (Bbl) | 1,803,200 | 0 | 0 | |||
Weighted-average price (USD per unit) | $ / bbl | 5.09 | 0 | 0 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Henry Hub NYMEX | Swap | Commodity - Natural gas | ||||||
Derivative [Line Items] | ||||||
Weighted-average price (USD per unit) | $ / MMBTU | 2.72 | 0 | 2.59 | |||
Volume (MMBtu) | MMBTU | 11,960,000 | 0 | 42,522,500 | |||
Forecast | Outstanding at End of Period | Not designated as hedges | Waha Inside FERC to Henry Hub NYMEX | Basis Swap | Commodity - Natural gas | ||||||
Derivative [Line Items] | ||||||
Weighted-average price (USD per unit) | $ / MMBTU | (0.82) | (0.53) | (0.55) | |||
Volume (MMBtu) | MMBTU | 21,160,000 | 7,300,000 | 41,610,000 |
Derivatives - Derivatives enter
Derivatives - Derivatives entered into (Details) - Interest rate swap - Not designated as hedges $ in Thousands | Jun. 30, 2020USD ($) |
Derivative [Line Items] | |
Notional amount of derivative | $ 100,000 |
Fixed rate (as a percent) | 0.345% |
Fair value measurements - Fair
Fair value measurements - Fair value hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | $ 151,704 | $ 51,929 |
Net fair value presented on the unaudited consolidated balance sheets | 40,258 | 23,387 |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | (192) | (7,698) |
Net fair value presented on the unaudited consolidated balance sheets | (602) | 0 |
Net derivative asset (liability) positions | 191,168 | 67,618 |
Interest rate - LIBOR | ||
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | (177) | 0 |
Net fair value presented on the unaudited consolidated balance sheets | (182) | 0 |
Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | 134,268 | 6,422 |
Net fair value presented on the unaudited consolidated balance sheets | 30,701 | 1,577 |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | 0 | (348) |
Net fair value presented on the unaudited consolidated balance sheets | 0 | 0 |
Commodity - Oil | Deferred premiums | ||
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | 0 | (477) |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | 0 | 0 |
Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | (15) | (7,350) |
Net fair value presented on the unaudited consolidated balance sheets | (420) | 0 |
Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | 17,023 | 12,490 |
Net fair value presented on the unaudited consolidated balance sheets | 7,381 | 9,547 |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | 0 | 0 |
Net fair value presented on the unaudited consolidated balance sheets | 0 | 0 |
Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Net fair value presented on the unaudited consolidated balance sheets | 413 | 33,494 |
Net fair value presented on the unaudited consolidated balance sheets | 2,176 | 12,263 |
Liabilities: | ||
Net fair value presented on the unaudited consolidated balance sheets | 0 | 0 |
Net fair value presented on the unaudited consolidated balance sheets | 0 | 0 |
Current Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 136,828 | 11,723 |
Amounts offset | (2,560) | (5,301) |
Current Assets | Commodity - Oil | Deferred premiums | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Amounts offset | 0 | (477) |
Current Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 17,023 | 13,787 |
Amounts offset | 0 | (1,297) |
Current Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 10,491 | 33,494 |
Amounts offset | (10,078) | 0 |
Noncurrent Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 33,684 | 1,577 |
Amounts offset | (2,983) | 0 |
Noncurrent Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 7,381 | 9,547 |
Amounts offset | 0 | 0 |
Noncurrent Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 3,604 | 12,263 |
Amounts offset | (1,428) | 0 |
Current Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | (177) | 0 |
Amounts offset | 0 | 0 |
Current Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (2,560) | (5,649) |
Amounts offset | 2,560 | 5,301 |
Current Liabilities | Commodity - Oil | Deferred premiums | ||
Liabilities: | ||
Total gross fair value | 0 | (477) |
Amounts offset | 0 | 477 |
Current Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | (15) | (7,350) |
Amounts offset | 0 | 0 |
Current Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | (1,297) |
Amounts offset | 0 | 1,297 |
Current Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (10,078) | 0 |
Amounts offset | 10,078 | 0 |
Noncurrent Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | (182) | 0 |
Amounts offset | 0 | 0 |
Noncurrent Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (2,983) | 0 |
Amounts offset | 2,983 | 0 |
Noncurrent Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | (420) | 0 |
Amounts offset | 0 | 0 |
Noncurrent Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Amounts offset | 0 | 0 |
Noncurrent Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (1,428) | 0 |
Amounts offset | 1,428 | 0 |
Level 1 | ||
Liabilities: | ||
Net derivative asset (liability) positions | 0 | 0 |
Level 1 | Current Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Assets | Commodity - Oil | Deferred premiums | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Commodity - Oil | Deferred premiums | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Current Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 1 | Noncurrent Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Net derivative asset (liability) positions | 191,168 | 68,095 |
Level 2 | Current Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 136,828 | 11,723 |
Level 2 | Current Assets | Commodity - Oil | Deferred premiums | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 2 | Current Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 17,023 | 13,787 |
Level 2 | Current Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 10,491 | 33,494 |
Level 2 | Noncurrent Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 33,684 | 1,577 |
Level 2 | Noncurrent Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 7,381 | 9,547 |
Level 2 | Noncurrent Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 3,604 | 12,263 |
Level 2 | Current Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | (177) | 0 |
Level 2 | Current Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (2,560) | (5,649) |
Level 2 | Current Liabilities | Commodity - Oil | Deferred premiums | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 2 | Current Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | (15) | (7,350) |
Level 2 | Current Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | (1,297) |
Level 2 | Current Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (10,078) | 0 |
Level 2 | Noncurrent Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | (182) | 0 |
Level 2 | Noncurrent Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (2,983) | 0 |
Level 2 | Noncurrent Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | (420) | 0 |
Level 2 | Noncurrent Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 2 | Noncurrent Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | (1,428) | 0 |
Level 3 | ||
Liabilities: | ||
Net derivative asset (liability) positions | 0 | (477) |
Level 3 | Current Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Assets | Commodity - Oil | Deferred premiums | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Assets | Commodity - Oil | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Assets | Commodity - NGL | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Assets | Commodity - Natural gas | Commodity derivatives | ||
Assets: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Liabilities | Commodity - Oil | Deferred premiums | ||
Liabilities: | ||
Total gross fair value | 0 | (477) |
Level 3 | Current Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Current Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Liabilities | Interest rate - LIBOR | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Liabilities | Commodity - Oil | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Liabilities | Commodity - Oil | Contingent consideration | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Liabilities | Commodity - NGL | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | 0 | 0 |
Level 3 | Noncurrent Liabilities | Commodity - Natural gas | Commodity derivatives | ||
Liabilities: | ||
Total gross fair value | $ 0 | $ 0 |
Fair value measurements - Chang
Fair value measurements - Changes in net assets classified as Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Deferred premiums | ||||
Changes in assets classified as Level 3 measurements | ||||
Balance of Level 3 at beginning of period | $ 0 | $ (12,644) | $ (477) | $ (16,565) |
Change in net present value of commodity derivative deferred premiums | 0 | (24) | 0 | (119) |
Settlements of commodity derivative deferred premiums(2) | 0 | 9,398 | 477 | 13,414 |
Balance of Level 3 at end of period | $ 0 | (3,270) | $ 0 | (3,270) |
Deferred premiums - early termination | ||||
Changes in assets classified as Level 3 measurements | ||||
Settlements of commodity derivative deferred premiums(2) | $ 7,200 | $ 7,200 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Apr. 30, 2020 | Dec. 12, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of contingent consideration | $ 200,000 | |||||
Impairment expense | $ 406,448,000 | $ 0 | $ 593,147,000 | $ 0 | ||
Acquisitions of oil and natural gas properties | 23,563,000 | 2,880,000 | ||||
Howard County Net Acres | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of contingent consideration | $ 200,000 | $ 6,200,000 | ||||
Nonrecurring | Level 2 | Line-Fill and Other Inventories | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment expense | 1,300,000 | 0 | ||||
Nonrecurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Acquisitions of oil and natural gas properties | 0 | 0 | ||||
Nonrecurring | Level 3 | Long-Lived Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment expense | $ 8,200,000 | $ 0 |
Fair value measurements - Carry
Fair value measurements - Carrying amount of debt instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,275,000 | $ 1,175,000 |
Long-term debt | Senior Secured Credit Facility | Secured debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 275,000 | 375,000 |
Long-term debt | January 2022 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0 | 450,000 |
Long-term debt | March 2023 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0 | 350,000 |
Long-term debt | January 2025 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 600,000 | 0 |
Long-term debt | January 2028 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 400,000 | 0 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 968,329 | 1,147,650 |
Fair value | Senior Secured Credit Facility | Secured debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 274,947 | 375,275 |
Fair value | January 2022 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0 | 439,875 |
Fair value | March 2023 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0 | 332,500 |
Fair value | January 2025 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 414,750 | 0 |
Fair value | January 2028 Notes | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 278,632 | $ 0 |
Net income (loss) per common _3
Net income (loss) per common share - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Net income (loss) (numerator) | $ (545,455) | $ 173,382 | $ (470,809) | $ 163,891 | |
Weighted-average common shares outstanding (denominator)(1): | |||||
Basic (shares) | [1] | 11,667 | 11,570 | 11,642 | 11,547 |
Diluted (shares) | [1] | 11,667 | 11,578 | 11,642 | 11,586 |
Net income (loss) per common share(1): | |||||
Basic (USD per share) | [1] | $ (46.75) | $ 14.99 | $ (40.44) | $ 14.19 |
Diluted (USD per share) | [1] | $ (46.75) | $ 14.98 | $ (40.44) | $ 14.15 |
Dilutive non-vested restricted stock awards | |||||
Weighted-average common shares outstanding (denominator)(1): | |||||
Incremental common shares (shares) | 0 | 8 | 0 | 39 | |
[1] | Net income (loss) per common share and weighted-average common shares outstanding were retroactively adjusted for the Company's 1-for-20 reverse stock split effective June 1, 2020 as discussed in Note 7.a. |
Commitments and contingencies -
Commitments and contingencies - Drilling contracts (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Drilling contracts | ||
Cost of Goods and Services Sold [Abstract] | ||
Penalties incurred for early contract termination | $ 0 | $ 0 |
Commitments and contingencies_2
Commitments and contingencies - Firm sale and transportation commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | |
Supply Commitment [Line Items] | |||
Minimum volume commitments deficiency payments | $ 0.5 | $ 1 | |
Firm sale and transportation commitments | |||
Cost of Goods and Services Sold [Abstract] | |||
Future drilling contracts commitments | $ 306.4 |
Commitments and contingencies_3
Commitments and contingencies - Environmental (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for environmental loss contingencies | $ 0 | $ 0 |
Supplemental cash flow and no_3
Supplemental cash flow and non-cash information - Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Capitalized interest | $ 1,822 | $ 420 |
Supplemental cash flow information: | ||
Cash paid for interest, net of capitalized interest | 25,595 | 29,721 |
Net cash (received) paid for income taxes | 0 | (691) |
Supplemental non-cash investing information: | ||
Fair value of contingent consideration on acquisition date | 225 | 0 |
(Decrease) increase in accrued capital expenditures | (15,024) | 2,335 |
Capitalized share-settled equity-based compensation | 1,647 | 1,863 |
Capitalized asset retirement cost | 1,082 | 356 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 2,349 | $ 25,212 |
Asset retirement obligations -
Asset retirement obligations - Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liability at beginning of period | $ 62,718 | $ 56,882 |
Liabilities added due to acquisitions, drilling, midstream service asset construction and other | 1,082 | 356 |
Accretion expense | 2,223 | 2,072 |
Liabilities settled due to plugging and abandonment or removed due to sale | (778) | (1,362) |
Liability at end of period | $ 65,245 | $ 57,948 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2017 | |
Operating loss carry-forward | |||
Deferred tax assets, valuation allowance | $ 404.5 | ||
AMT credit carryforward | $ 4.1 | ||
AMT credit carryforward received | $ 2 | ||
Accounts receivable | |||
Operating loss carry-forward | |||
AMT credit carryforward | 2.1 | ||
Federal | Internal Revenue Service (IRS) | |||
Operating loss carry-forward | |||
Operating loss carryforwards | 2,000 | ||
Operating loss carryforwards subject to expiration | 1,700 | ||
Operating loss carryforwards not subject to expiration | 299.3 | ||
State | State of Oklahoma | |||
Operating loss carry-forward | |||
Operating loss carryforwards | 34.7 | ||
State | Texas | |||
Operating loss carry-forward | |||
Net deferred tax asset | $ 2.3 |
Related parties - Summary (Deta
Related parties - Summary (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | |
Related Party Transaction [Line Items] | ||
Capital expenditures for oil and natural gas properties | $ 241,939 | $ 284,616 |
Helmerich & Payne, Inc. | ||
Related Party Transaction [Line Items] | ||
Number of drilling rig contracts accounted for as long-term operating lease | contract | 1 | |
Helmerich & Payne, Inc. | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Capital expenditures for oil and natural gas properties | $ 18,104 | $ 6,293 |
Helmerich & Payne, Inc. | Affiliated entity | Drilling Rig Contract - Long-Term Operating Lease | ||
Related Party Transaction [Line Items] | ||
Number of drilling rig contracts accounted for as long-term operating lease | contract | 1 | |
Halliburton | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Capital expenditures for oil and natural gas properties | $ 51,251 |
Organizational restructurings -
Organizational restructurings - Narrative (Details) $ in Thousands | Jun. 17, 2020employee | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Apr. 02, 2020seniorOfficer |
Restructuring Cost and Reserve [Line Items] | ||||||
Workforce reduction (positions eliminated) | employee | 22 | |||||
Restructuring expenses | $ 4,200 | $ 10,406 | $ 4,200 | $ 10,406 | ||
Stock-based compensation reversals | $ (1,913) | 615 | (4,328) | $ (6,983) | ||
Number of senior officers retired | seniorOfficer | 2 | |||||
Workforce reduction (as a percent) | 20.00% | |||||
Other Current Liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accrued restructuring charges | $ 1,700 | $ 1,700 | ||||
One-time Termination Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 4,200 | 10,400 | ||||
Share-Based Compensation Awards Forfeited | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Stock-based compensation reversals | $ 800 | $ 6,100 |
Subsequent events - Narrative (
Subsequent events - Narrative (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jul. 14, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Aug. 04, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||||
Additional borrowings on Senior Secured Credit Facility | $ 0 | $ 80,000 | ||||
Payments on Senior Secured Credit Facility | 100,000 | $ 35,000 | ||||
Outstanding debt | 1,258,164 | $ 1,170,417 | ||||
Secured debt | Senior Secured Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Outstanding debt | $ 275,000 | $ 375,000 | ||||
Secured debt | Senior Secured Credit Facility | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Additional borrowings on Senior Secured Credit Facility | $ 45,000 | |||||
Payments on Senior Secured Credit Facility | $ 20,000 | |||||
Outstanding debt | $ 300,000 |
Subsequent events - Derivatives
Subsequent events - Derivatives Entered into Subsequent to Reporting Period (Details) - Commodity - Oil - Brent ICE - Swap - Subsequent to End of Period - Forecast - Not designated as hedges | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020$ / bblbbl | Dec. 31, 2022$ / bblbbl | Dec. 31, 2021$ / bblbbl | |
Subsequent Event [Line Items] | |||
Aggregate volumes (Bbl) | bbl | 1,196,000 | 2,920,000 | 4,307,000 |
Weighted-average price (USD per unit) | $ / bbl | 63.07 | 46.40 | 49.71 |