Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TALO | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Registrant Name | Talos Energy Inc. | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-38497 | |
Entity Tax Identification Number | 82-3532642 | |
Entity Address, Address Line One | 333 Clay Street | |
Entity Address, Address Line Two | Suite 3300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 328-3000 | |
Entity Central Index Key | 0001724965 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 81,872,498 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 65,354 | $ 34,233 |
Accounts receivable | ||
Trade, net | 144,763 | 106,220 |
Joint interest, net | 33,057 | 50,471 |
Other | 10,448 | 18,448 |
Assets from price risk management activities | 39 | 6,876 |
Prepaid assets | 48,813 | 29,285 |
Other current assets | 1,742 | 1,859 |
Total current assets | 304,216 | 247,392 |
Property and equipment: | ||
Proved properties | 5,112,597 | 4,945,550 |
Unproved properties, not subject to amortization | 253,988 | 254,994 |
Other property and equipment | 28,481 | 32,853 |
Total property and equipment | 5,395,066 | 5,233,397 |
Accumulated depreciation, depletion and amortization | (2,897,546) | (2,697,228) |
Total property and equipment, net | 2,497,520 | 2,536,169 |
Other long-term assets: | ||
Assets from price risk management activities | 42 | 945 |
Other well equipment inventory | 20,282 | 18,927 |
Operating lease assets | 7,601 | 6,855 |
Other assets | 22,504 | 24,258 |
Total assets | 2,852,165 | 2,834,546 |
Current liabilities: | ||
Accounts payable | 111,128 | 104,864 |
Accrued liabilities | 160,602 | 163,379 |
Accrued royalties | 48,768 | 27,903 |
Current portion of long-term debt | 6,060 | |
Current portion of asset retirement obligations | 47,027 | 49,921 |
Liabilities from price risk management activities | 230,258 | 66,010 |
Accrued interest payable | 39,447 | 9,509 |
Current portion of operating lease liabilities | 2,176 | 1,793 |
Other current liabilities | 29,278 | 24,155 |
Total current liabilities | 674,744 | 447,534 |
Long-term liabilities: | ||
Long-term debt, net of discount and deferred financing costs | 976,573 | 985,512 |
Asset retirement obligations | 409,357 | 392,348 |
Liabilities from price risk management activities | 44,144 | 9,625 |
Operating lease liabilities | 18,380 | 18,554 |
Other long-term liabilities | 42,546 | 54,372 |
Total liabilities | 2,165,744 | 1,907,945 |
Commitments and Contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 30,000,000 shares authorized and no shares issued or outstanding as of June 30, 2021 and December 31, 2020 | ||
Common stock $0.01 par value; 270,000,000 shares authorized; 81,872,498 and 81,279,989 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 819 | 813 |
Additional paid-in capital | 1,666,887 | 1,659,800 |
Accumulated deficit | (981,285) | (734,012) |
Total stockholdersʼ equity | 686,421 | 926,601 |
Total liabilities and stockholdersʼ equity | $ 2,852,165 | $ 2,834,546 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 270,000,000 | 270,000,000 |
Common stock, shares issued | 81,872,498 | 81,279,989 |
Common stock, shares outstanding | 81,872,498 | 81,279,989 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues and other: | ||||
Total revenues and other | $ 303,768 | $ 88,874 | $ 571,676 | $ 276,638 |
Operating expenses: | ||||
Lease operating expense | 72,013 | 63,882 | 138,641 | 122,123 |
Production taxes | 953 | 166 | 1,775 | 415 |
Depreciation, depletion and amortization | 99,841 | 88,443 | 201,498 | 181,986 |
Write-down of oil and natural gas properties | 0 | 0 | 0 | 57 |
Accretion expense | 15,457 | 13,794 | 30,442 | 26,211 |
General and administrative expense | 19,377 | 17,192 | 38,566 | 44,661 |
Other operating expense | 2,783 | 0 | 2,783 | 0 |
Total operating expenses | 210,424 | 183,477 | 413,705 | 375,453 |
Operating income (expense) | 93,344 | (94,603) | 157,971 | (98,815) |
Interest expense | (33,570) | (26,190) | (67,646) | (52,040) |
Price risk management activities income (expense) | (186,617) | (68,682) | (324,125) | 174,535 |
Other expense (income) | (1,559) | 528 | 12,391 | 674 |
Net income (loss) before income taxes | (125,284) | (190,003) | (246,191) | 23,006 |
Income tax expense (benefit) | (498) | 49,392 | (1,082) | (5,868) |
Net income (loss) | $ (125,782) | $ (140,611) | $ (247,273) | $ 17,138 |
Net income (loss) per common share: | ||||
Basic | $ (1.54) | $ (2.14) | $ (3.03) | $ 0.28 |
Diluted | $ (1.54) | $ (2.14) | $ (3.03) | $ 0.28 |
Weighted average common shares outstanding: | ||||
Basic | 81,823 | 65,807 | 81,630 | 62,023 |
Diluted | 81,823 | 65,807 | 81,630 | 62,318 |
Oil | ||||
Revenues and other: | ||||
Total revenues and other | $ 267,990 | $ 74,471 | $ 497,551 | $ 241,095 |
Natural Gas | ||||
Revenues and other: | ||||
Total revenues and other | 26,131 | 11,140 | 54,365 | 23,038 |
NGL | ||||
Revenues and other: | ||||
Total revenues and other | 9,647 | 1,964 | 18,760 | 6,265 |
Other | ||||
Revenues and other: | ||||
Total revenues and other | $ 0 | $ 1,299 | $ 1,000 | $ 6,240 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ 1,078,277 | $ 542 | $ 1,346,142 | $ (268,407) | |
Balance, shares at Dec. 31, 2019 | 54,197,004 | ||||
Equity-based compensation | 6,978 | $ 1 | 6,977 | ||
Equity-based compensation, shares | 167,778 | ||||
Issuance of preferred stock (Note 2) | 156,200 | $ 1 | 156,199 | ||
Issuance of preferred stock (Note 2), shares | 110,000 | ||||
Conversion of preferred stock into common stock (Note 2) | $ 110 | $ (1) | (109) | ||
Conversion of preferred stock into common stock (Note 2), shares | 11,000,000 | (110,000) | |||
Issuances of common stock (Note 6) | 35,960 | $ 31 | 35,929 | ||
Issuance of common stock (Note 6), shares | 3,050,000 | ||||
Net income (loss) | 17,138 | 17,138 | |||
Balance at Jun. 30, 2020 | 1,294,553 | $ 684 | 1,545,138 | (251,269) | |
Balance, shares at Jun. 30, 2020 | 68,414,782 | ||||
Balance at Mar. 31, 2020 | 1,394,897 | $ 652 | 1,504,903 | (110,658) | |
Balance, shares at Mar. 31, 2020 | 65,342,273 | ||||
Equity-based compensation | 4,307 | $ 1 | 4,306 | ||
Equity-based compensation, shares | 22,509 | ||||
Issuances of common stock (Note 6) | 35,960 | $ 31 | 35,929 | ||
Issuance of common stock (Note 6), shares | 3,050,000 | ||||
Net income (loss) | (140,611) | (140,611) | |||
Balance at Jun. 30, 2020 | 1,294,553 | $ 684 | 1,545,138 | (251,269) | |
Balance, shares at Jun. 30, 2020 | 68,414,782 | ||||
Balance at Dec. 31, 2020 | $ 926,601 | $ 813 | 1,659,800 | (734,012) | |
Balance, shares at Dec. 31, 2020 | 81,279,989 | 81,279,989 | |||
Equity-based compensation | $ 7,093 | $ 6 | 7,087 | ||
Equity-based compensation, shares | 592,509 | ||||
Net income (loss) | (247,273) | (247,273) | |||
Balance at Jun. 30, 2021 | $ 686,421 | $ 819 | 1,666,887 | (981,285) | |
Balance, shares at Jun. 30, 2021 | 81,872,498 | 81,872,498 | |||
Balance at Mar. 31, 2021 | $ 807,154 | $ 817 | 1,661,840 | (855,503) | |
Balance, shares at Mar. 31, 2021 | 81,707,214 | ||||
Equity-based compensation | 5,049 | $ 2 | 5,047 | ||
Equity-based compensation, shares | 165,284 | ||||
Net income (loss) | (125,782) | (125,782) | |||
Balance at Jun. 30, 2021 | $ 686,421 | $ 819 | $ 1,666,887 | $ (981,285) | |
Balance, shares at Jun. 30, 2021 | 81,872,498 | 81,872,498 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (247,273) | $ 17,138 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation, depletion, amortization and accretion expense | 231,940 | 208,197 |
Write-down of oil and natural gas properties and other well inventory | 190 | |
Amortization of deferred financing costs and original issue discount | 6,934 | 3,985 |
Equity based compensation, net of amounts capitalized | 5,681 | 3,974 |
Price risk management activities expense (income) | 324,125 | (174,535) |
Net cash received (paid) on settled derivative instruments | (117,618) | 122,499 |
Loss (gain) on extinguishment of debt | 13,225 | (1,470) |
Settlement of asset retirement obligations | (36,329) | (18,496) |
Gain on sale of assets | (853) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (12,633) | (5,164) |
Other current assets | (19,409) | 15,128 |
Accounts payable | 3,776 | 12,645 |
Other current liabilities | 48,597 | 16,039 |
Other non-current assets and liabilities, net | (1,069) | (8,518) |
Net cash provided by operating activities | 199,094 | 191,612 |
Cash flows from investing activities: | ||
Exploration, development and other capital expenditures | (125,846) | (154,628) |
Cash paid for acquisitions, net of cash acquired | (5,399) | (296,966) |
Proceeds from sale of property and equipment, net | 4,612 | |
Net cash provided by (used in) investing activities | (126,633) | (451,594) |
Cash flows from financing activities: | ||
Issuance of senior notes | 600,500 | |
Redemption of senior notes and other long-term debt | (356,803) | (1,209) |
Proceeds from Bank Credit Facility | 300,000 | |
Repayment of Bank Credit Facility | (240,000) | |
Deferred financing costs | (25,981) | (1,287) |
Other deferred payments | (5,575) | (7,575) |
Payments of finance lease | (10,361) | (8,323) |
Employee stock awards tax withholdings | (3,120) | (791) |
Net cash (used in) provided by financing activities | (41,340) | 280,815 |
Net increase in cash and cash equivalents | 31,121 | 20,833 |
Cash and cash equivalents: | ||
Balance, beginning of period | 34,233 | 87,022 |
Balance, end of period | 65,354 | 107,855 |
Supplemental non-cash transactions: | ||
Capital expenditures included in accounts payable and accrued liabilities | 95,724 | 113,461 |
Debt exchanged for common stock | 0 | 35,960 |
Supplemental cash flow information: | ||
Interest paid, net of amounts capitalized | $ 19,006 | $ 34,163 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Not e 1 — Nature of Business and Basis of Presentation Nature of Business Talos Energy Inc. (including its subsidiaries, collectively “Talos” or the “Company”) is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States (“U.S.”) Gulf of Mexico and offshore Mexico both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities. The Company leverages decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and storage collaborative arrangement along the U.S. Gulf Coast and Gulf of Mexico. Basis of Presentation and Consolidation The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and disclosures normally included in complete financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, these financial statements include all adjustments, which unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, cash flows and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The unaudited financial statements and related notes included in this Quarterly Report should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying notes included in the 2020 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods and the reported amounts of proved oil and natural gas reserves. Actual results could differ from those estimates. The Company has one reportable segment, which is the exploration and production of oil, natural gas and NGLs. Substantially all of the Company’s long-lived assets, proved reserves and production sales are related to the Company’s operations in the United States. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 — Acquisitions Business Combination The following acquisition was accounted for as a business combination whereby the Company recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. ILX and Castex Acquisition — On February 28, 2020 , the Company acquired the outstanding limited liability interests in certain wholly owned subsidiaries of ILX Holdings, LLC; ILX Holdings II, LLC; ILX Holdings III LLC and Castex Energy 2014, LLC; each a related party and an affiliate of the Riverstone Funds (as defined below) (the “Riverstone Sellers”), and Castex Energy 2016, LP (together with the Riverstone Sellers, the “Sellers”) with an effective date of July 1, 2019 (collectively, the “ILX and Castex Acquisition”). The ILX and Castex Acquisition was consummated pursuant to separate Purchase and Sale Agreements, dated December 10, 2019 (as amended from time to time, the “Purchase Agreements”) for aggregate consideration consisting of (i) $ 385.0 million in cash subject to customary closing adjustments and (ii) an aggregate 110,000 shares (the “Preferred Shares”) of a series of the Company’s preferred stock designated as “Series A Convertible Preferred Stock” which subsequently converted to 11.0 million shares of the Company’s common stock on March 30, 2020 (such common stock, the “Conversion Stock”). The cash payment and escrow deposit were funded with borrowings under the Bank Credit Facility (as defined in Note 5 — Financial Instruments ). The following table summarizes the purchase price (in thousands except share and per share data): Talos Conversion Stock 11,000,000 Talos common stock price per share (1) $ 14.20 Conversion Stock value $ 156,200 Cash consideration $ 385,000 Customary closing and post-closing adjustments ( 81,878 ) Net cash consideration $ 303,122 Total purchase price $ 459,322 (1) Represents the closing price of the Company’s common stock on February 28, 2020, the date of the closing of the ILX and Castex Acquisition. The purchase price was based on the value of the Conversion Stock as the value approximates the value of the Preferred Shares as a result of the automatic conversion and dividend rights described in that certain Certificate of Designation, Preferences, Rights and Limitations. The following table presents the final allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values on February 28, 2020 (in thousands): Current assets (1) $ 11,060 Property and equipment 496,835 Other long-term assets 148 Current liabilities ( 16,520 ) Other long-term liabilities ( 32,201 ) Allocated purchase price $ 459,322 (1) Includes trade and other receivables of $ 8.2 million. The Company incurred a total of $ 12.1 million of transaction related costs, of which nil and $ 0.8 million were incurred during the three months ended June 30, 2021 and 2020 , respectively, and nil and $ 8.3 million were incurred during the six months ended June 30, 2021 and 2020, respectively. These costs are reflected in “General and administrative expense” in the Condensed Consolidated Statements of Operations. The following table presents revenue and net income attributable to the assets acquired in the ILX and Castex Acquisition: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Revenue $ 26,299 $ 40,191 Net loss $ ( 15,161 ) $ ( 11,952 ) Pro Forma Financial Information (Unaudited) — The following supplemental pro forma financial information (in thousands, except per common share amounts), presents the condensed consolidated results of operations for the six months ended June 30, 2020 as if the ILX and Castex Acquisition had occurred on January 1, 2020. The unaudited pro forma information was derived from historical statements of operations of the Company and the Sellers adjusted to (i) include depletion expense applied to the adjusted basis of the oil and natural gas properties acquired, (ii) include interest expense to reflect borrowings under the Bank Credit Facility, (iii) eliminate the write-down of oil and natural gas properties on the assets acquired to reflect the pro-forma ceiling test calculation and (iv) include weighted average basic and diluted shares of common stock outstanding, which was calculated assuming the 11.0 million shares of Conversion Stock were issued to the Sellers. This information does not purport to be indicative of results of operations that would have occurred had the ILX and Castex Acquisition occurred on January 1, 2020, nor is such information indicative of any expected future results of operations. Six Months Ended June 30, 2020 Revenue $ 324,073 Net income $ 29,996 Basic net income per common share $ 0.46 Diluted net income per common share $ 0.46 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Oil And Gas Property [Abstract] | |
Property, Plant and Equipment | No te 3 — Property, Plant and Equipment Proved Properties During the three and six months ended June 30, 2021 and 2020, the Company’s ceiling test computations did no t result in a write-down of its U.S. oil and natural gas properties. At June 30, 2021, the Company’s ceiling test computation was based on SEC pricing of $ 50.23 per Bbl of oil, $ 2.48 per Mcf of natural gas and $ 14.92 per Bbl of NGLs. Asset Retirement Obligations The asset retirement obligations included in the Condensed Consolidated Balance Sheets in current and non-current liabilities, and the changes in that liability were as follows (in thousands): Asset Retirement Obligations Asset retirement obligations at December 31, 2020 $ 442,269 Obligations acquired 398 Obligations settled ( 36,329 ) Obligations divested ( 340 ) Accretion expense 30,442 Changes in estimate 19,944 Asset retirement obligations at June 30, 2021 $ 456,384 Less: Current portion at June 30, 2021 ( 47,027 ) Long-term portion at June 30, 2021 $ 409,357 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | No te 4 — Leases The Company has operating leases principally for office space, drilling rigs, compressors and other equipment necessary to support the Company’s operations. Additionally, the Company has a finance lease related to the use of the Helix Producer I (the “HP-I”), a dynamically positioned floating production facility that interconnects with the Phoenix Field through a production buoy. The HP-I is utilized in the Company’s oil and natural gas development activities and the right-of-use asset was capitalized and included in proved property and depleted as part of the full cost pool. Once items are included in the full cost pool, they are indistinguishable from other proved properties. The capitalized costs within the full cost pool are amortized over the life of the total proved reserves using the unit-of-production method, computed quarterly. Costs associated with the Company’s leases are either expensed or capitalized depending on how the underlying asset is utilized. The lease costs described below are presented on a gross basis and do not represent the Company’s net proportionate share of such amounts. A portion of these costs have been or may be billed to other working interest owners. The Company’s share of these costs is included in property and equipment, lease operating expense or general and administrative expense, as applicable. The components of lease costs were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Finance lease cost - interest on lease liabilities $ 3,012 $ 4,040 $ 6,268 $ 8,305 Operating lease cost, excluding short-term leases (1) 720 866 1,436 1,732 Short-term lease cost (2) 12,092 15,748 17,852 19,283 Variable lease cost (3) 322 3 644 6 Total lease cost $ 16,146 $ 20,657 $ 26,200 $ 29,326 (1) Operating lease cost reflect a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. (2) Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short-term contracts not recognized as a right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets. (3) Variable lease costs primarily represent differences between minimum payment obligations and actual operating charges incurred by the Company related to its long-term leases. The present value of the fixed lease payments recorded as the Company’s right-of-use asset and liability, adjusted for initial direct costs and incentives were as follows (in thousands): June 30, 2021 December 31, 2020 Operating leases: Operating lease assets $ 7,601 $ 6,855 Current portion of operating lease liabilities $ 2,176 $ 1,793 Operating lease liabilities 18,380 18,554 Total operating lease liabilities $ 20,556 $ 20,347 Finance leases: Proved property $ 124,299 $ 124,299 Other current liabilities $ 24,279 $ 21,804 Other long-term liabilities 27,386 40,222 Total finance lease liabilities $ 51,665 $ 62,026 The table below presents the supplemental cash flow information related to leases (in thousands): Six Months Ended June 30, 2021 2020 Operating cash outflow from finance leases $ 6,268 $ 8,306 Operating cash outflow from operating leases $ 1,974 $ 911 Right-of-use assets obtained in exchange for new operating lease $ 1,020 $ — |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Financial Instruments | No te 5 — Financial Instruments Debt Instruments The following table presents the carrying amounts, net of discount and deferred financing costs, and estimated fair values of the Company’s debt instruments (in thousands): June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair 12.00 % Second-Priority Senior Secured Notes – January 2026 $ 583,777 $ 684,093 $ — $ — 11.00 % Second-Priority Senior Secured Notes – April 2022 $ — $ — $ 343,579 $ 355,935 7.50 % Senior Notes – due May 2022 $ 6,060 $ 5,069 $ 6,060 $ 5,238 Bank Credit Facility – matures November 2024 $ 392,796 $ 400,000 $ 635,873 $ 640,000 As of June 30, 2021 and December 31, 2020, the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the short-term nature of these instruments. The carrying value of the senior notes are presented net of the original issue discount and deferred financing costs. Fair value is estimated (representing a Level 1 fair value measurement) using quoted secondary market trading prices. The carrying amount of the Company’s bank credit facility, as amended and restated (the “Bank Credit Facility”), is presented net of deferred financing costs. The fair value of the Bank Credit Facility is estimated based on the outstanding borrowings under the Bank Credit Facility since it is secured by the Company’s reserves and the interest rates are variable and reflective of market rates (representing a Level 2 fair value measurement). Oil and Natural Gas Derivatives The Company attempts to mitigate a portion of its commodity price risk and stabilize cash flows associated with sales of oil and natural gas production through the use of oil and natural gas swaps and costless collars. Swaps are contracts where the Company either receives or pays depending on whether the oil or natural gas floating market price is above or below the contracted fixed price. Costless collars consist of a purchased put option and a sold call option with no net premiums paid to or received from counterparties. Collar contracts typically require payments by the Company if the NYMEX average closing price is above the ceiling price or payments to the Company if the NYMEX average closing price is below the floor price. The Company has elected not to designate any of its derivative contracts for hedge accounting. Accordingly, commodity derivatives are recorded on the Condensed Consolidated Balance Sheets at fair value with settlements of such contracts, and changes in the unrealized fair value, recorded as “Price risk management activities income (expense)” on the Condensed Consolidated Statements of Operations in each period. The following table presents the impact that derivatives, not qualifying as hedging instruments, had on its Condensed Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net cash received (paid) on settled derivative $ ( 69,237 ) $ 86,039 $ ( 117,618 ) $ 122,499 Unrealized gain (loss) ( 117,380 ) ( 154,721 ) ( 206,507 ) 52,036 Price risk management activities income (expense) $ ( 186,617 ) $ ( 68,682 ) $ ( 324,125 ) $ 174,535 The following table reflects the contracted volumes and weighted average prices the Company will receive under the terms of its derivative contracts as of June 30, 2021: Production Period Instrument Average Weighted Weighted Weighted Crude Oil – WTI: (Bbls) (per Bbl) (per Bbl) (per Bbl) July 2021 – December 2021 Swaps 22,505 $ 45.45 $ — $ — July 2021 – December 2021 Collars 1,000 $ — $ 30.00 $ 40.00 January 2022 – December 2022 Swaps 19,101 $ 48.62 $ — $ — January 2023 – June 2023 Swaps 3,000 $ 54.07 $ — $ — Crude Oil – LLS: (Bbls) (per Bbl) (per Bbl) (per Bbl) July 2021 – December 2021 Swaps 3,500 $ 42.00 $ — $ — Natural Gas – NYMEX Henry Hub: (MMBtu) (per MMBtu) (per MMBtu) (per MMBtu) July 2021 – December 2021 Swaps 50,815 $ 2.50 $ — $ — July 2021 – December 2021 Collars 5,000 $ — $ 2.50 $ 3.10 January 2022 – December 2022 Swaps 40,162 $ 2.69 $ — $ — January 2023 – June 2023 Swaps 5,000 $ 2.61 $ — $ — The following tables provide additional information related to financial instruments measured at fair value on a recurring basis (in thousands): June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Oil and natural gas swaps and costless collars $ — $ 81 $ — $ 81 Liabilities: Oil and natural gas swaps and costless collars — ( 274,402 ) — ( 274,402 ) Total net liability $ — $ ( 274,321 ) $ — $ ( 274,321 ) December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Oil and natural gas swaps and costless collars $ — $ 7,821 $ — $ 7,821 Liabilities: Oil and natural gas swaps and costless collars — ( 75,635 ) — ( 75,635 ) Total net liability $ — $ ( 67,814 ) $ — $ ( 67,814 ) Financial Statement Presentation Derivatives are classified as either current or non-current assets or liabilities based on their anticipated settlement dates. Although the Company has master netting arrangements with its counterparties, the Company presents its derivative financial instruments on a gross basis in its Condensed Consolidated Balance Sheets. On derivative contracts recorded as assets in the table below, the Company is exposed to the risk the counterparties may not perform. The following table presents the fair value of derivative financial instruments (in thousands): June 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Oil and natural gas derivatives: Current $ 39 $ 230,258 $ 6,876 $ 66,010 Non-current 42 44,144 945 9,625 Total $ 81 $ 274,402 $ 7,821 $ 75,635 Credit Risk The Company is subject to the risk of loss on its financial instruments as a result of nonperformance by counterparties pursuant to the terms of their contractual obligations. The Company has entered into International Swaps and Derivative Association agreements with counterparties to mitigate this risk. The Company also maintains credit policies with regard to its counterparties to minimize overall credit risk. These policies require (i) the evaluation of potential counterparties’ financial condition to determine their credit worthiness; (ii) the regular monitoring of counterparties’ credit exposures; (iii) the use of contract language that affords the Company netting or set off opportunities to mitigate exposure risk; and (iv) potentially requiring counterparties to post cash collateral, parent guarantees, or letters of credit to minimize credit risk. The Company’s assets and liabilities from commodity price risk management activities at June 30, 2021 represent derivative instruments from eight counterparties; all of which are registered swap dealers that have an “investment grade” (minimum Standard & Poor’s rating of BBB- or better) credit rating, and seven of which are parties under the Company’s Bank Credit Facility. The Company enters into derivatives directly with these counterparties and, subject to the terms of the Company’s Bank Credit Facility, is not required to post collateral or other securities for credit risk in relation to the derivative activities. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | N ote 6 — Debt A summary of the detail comprising the Company’s debt and the related book values for the respective periods presented is as follows (in thousands): June 30, 2021 December 31, 2020 12.00 % Second-Priority Senior Secured Notes – due January 2026 $ 650,000 $ — 11.00 % Second-Priority Senior Secured Notes – due April 2022 — 347,254 7.50 % Senior Notes – due May 2022 6,060 6,060 Bank Credit Facility – matures November 2024 400,000 640,000 Total debt, before discount and deferred financing cost 1,056,060 993,314 Discount and deferred financing cost ( 73,427 ) ( 7,802 ) Total debt, net of discount and deferred financing costs 982,633 985,512 Less: current portion of long-term debt ( 6,060 ) — Long-term debt, net of discount and deferred financing costs $ 976,573 $ 985,512 12.00% Second-Priority Senior Notes The 12.00% Second-Priority Senior Secured Notes due 2026 (the “ 12.00 % Notes”) were issued pursuant to an indenture dated January 4, 2021 and the first supplemental indenture dated January 14, 2021 between Talos Energy Inc. (the "Parent Guarantor"), Talos Production Inc. (the "Issuer"), and certain of the Issuer's subsidiaries (the "Subsidiary Guarantors" and, together with the Parent Guarantor, the "Guarantors") and Wilmington Trust, National Association, as trustee and collateral agent. The 12.00 % Notes rank pari passu in right of payment and constitute a single class of securities for all purposes under the indentures. The 12.00% Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by the Parent Guarantor and on a second-priority senior secured basis by each of the Subsidiary Guarantors and will be unconditionally guaranteed on the same basis by certain of the Issuer’s future subsidiaries. The 12.00% Notes are secured on a second-priority basis by liens on substantially the same collateral as the Issuer’s existing first-priority obligations under its Bank Credit Facility. The 12.00 % Notes mature January 15, 2026 and have interest payable semi-annually each January 15 and July 15 , commencing on July 15, 2021. At any time prior to January 15, 2023, the Company may redeem up to 40 % of the principal amount of the 12.00% Notes at a redemption rate of 112.00 % of the principal amount plus accrued and unpaid interest. Thereafter, the Company may redeem all or a portion of the 12.00% Notes at redemption prices decreasing annually on January 15 from 106.00 % to 100.00 % plus accrued and unpaid interest. The indenture governing the 12.00% Notes applies certain limitations on the Company’s ability and the ability of its subsidiaries to, among other things, (i) incur, assume or guarantee additional indebtedness or issue certain convertible or redeemable equity securities; (ii) create liens to secure indebtedness; (iii) pay distributions on equity interests, repurchase equity securities or redeem junior lien, unsecured or subordinated indebtedness; (iv) make investments; (v) restrict distributions, loans or other asset transfers from Talos Production Inc.’s restricted subsidiaries; (vi) consolidate with or merge with or into, or sell substantially all of Talos Production Inc.’s properties to, another person; (vii) sell or otherwise dispose of assets, including equity interests in subsidiaries; and (viii) enter into transactions with affiliates. The 12.00 % Notes contain customary quarterly and annual reporting, financial and administrative covenants. The Company was in compliance with all debt covenants at June 30, 2021. 11.00% Second-Priority Senior Secured Notes On January 13, 2021, the Company redeemed $ 347.3 million aggregate principal amount of the 11.00% Second-Priority Senior Secured Notes due 2022 (the “ 11.00 % Notes”) at 102.75 % plus accrued and unpaid interest using the proceeds from the issuance of the 12.00% Notes. The debt redemption resulted in a loss on extinguishment of debt of nil and $ 13.2 million for the three and six months ended June 30, 2021, respectively, which is presented as “Other income (expense)” on the Condensed Consolidated Statements of Operations. On June 15, 2020, the Company entered into an exchange agreement pursuant to which the Company agreed to exchange $ 37.2 million aggregate principal amount of the 11.00 % Notes from certain holders in exchange for 3.1 million shares of the Company’s common stock plus cash in an amount equal to accrued interest up to the June 18, 2020 settlement date. Additionally, during the three months ended June 30, 2020, the Company repurchased $ 2.0 million of the 11.00 % Notes in two separate open market repurchases. The exchange agreement and debt repurchases resulted in a gain on extinguishment of $ 1.5 million for the three and six months ended June 30, 2020, respectively, and is presented as “Other income (expense)” on the Condensed Consolidated Statements of Operations. Bank Credit Facility The Company maintains a Bank Credit Facility with a syndicate of financial institutions. The Bank Credit Facility provides for determination of the borrowing base based on the Company’s proved producing reserves and a portion of our proved undeveloped reserves. The borrowing base is redetermined by the lenders at least semi-annually during the second quarter and fourth quarter each year. On June 22, 2021, the Company entered into a Borrowing Base Redetermination Agreement and Sixth Amendment to Credit Agreement (the “Sixth Amendment”). The Sixth Amendment, among other things, (i) extended the maturity date of the Bank Credit Facility from May 10, 2022 to November 12, 2024 , (ii) decreased the borrowing base from $ 960.0 million to $ 950.0 million and (iii) decreased the commitments to $ 655.0 million. The next scheduled redetermination meeting is expected to occur in November 2021. The Bank Credit Facility sets the interest rate at either (at the Company’s option) an alternative base rate plus a specified percentage, or London Interbank Offered Rate (“LIBOR”) plus a specified percentage. The specified percentage is referred to as the applicable margin, which varies based on the borrowing base utilization percentage. As of June 30, 2021, the Company's borrowing base was $ 950.0 million with total commitments of $ 655.0 million . Additionally, no more than $ 200.0 million of the Company’s borrowing base can be used as letters of credit with current commitments at $ 150.0 million. The amount the Company is able to borrow with respect to the borrowing base is subject to compliance with the financial covenants and other provisions of the Bank Credit Facility. The Company was in compliance with all debt covenants at June 30, 2021. As of June 30, 2021, the Company had $ 400.0 million in outstanding borrowings at a weighted average interest rate of 3.55 % and $ 13.6 million in letters of credit issued under the Bank Credit Facility. Subsequent Event — During July 2021, the Company announced the addition of a new lender to its Bank Credit Facility adding an additional $ 75.0 million of commitments. The addition increases total commitments from $655.0 million to $ 730.0 million. |
Employee Benefits Plans and Sha
Employee Benefits Plans and Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Benefits Plans and Share-Based Compensation | N ote 7 — Employee Benefits Plans and Share-Based Compensation Long Term Incentive Plans On May 11, 2021, the Company’s stockholders approved the Talos Energy Inc. 2021 Long Term Incentive Plan (the “2021 LTIP”), which had previously been approved by the board of directors of the Company. No further awards will be granted under the Talos Energy Inc. Long Term Incentive Plan (the “2018 LTIP”). The 2021 LTIP provides for potential grants of: (i) incentive stock options qualified as such under U.S. federal income tax laws (“ISOs”), (ii) stock options that do not qualify as ISOs (together with ISOs, “Options”), (iii) stock appreciation rights, (iv) restricted stock awards, (v) restricted stock units (the “RSUs”), (vi) awards of vested stock, (vii) dividend equivalents, (viii) other stock-based or cash awards and (ix) substitute awards (collectively, the “Awards”). Employees, non-employee directors and consultants of the Company and its affiliates are eligible to receive awards under the 2021 LTIP. The 2021 LTIP authorizes the Company to grant awards of up to 8,639,415 shares of the Company’s common stock, subject to the share counting and share recycling provisions of the 2021 LTIP. Restricted Stock Units — The following table summarizes RSU activity for the six months ended June 30, 2021: RSUs Weighted Average Unvested RSUs at December 31, 2020 1,652,988 $ 13.73 Granted 1,067,141 $ 13.11 Vested ( 657,590 ) $ 14.92 Forfeited ( 61,055 ) $ 12.63 Unvested RSUs at June 30, 2021 (1) 2,001,484 $ 13.04 (1) As of June 30, 2021, 44,372 of the unvested RSUs were accounted for as liability awards in “Accrued liabilities” on the Condensed Consolidated Balance Sheet. The Company considers its intent and ability to settle awards in cash or shares in determining whether to classify the awards as equity or as a liability. Certain awards granted during the six months ended June 30, 2021 were originally classified as liability awards; however, these awards became equity-classified awards upon stockholder approval of the 2021 LTIP. The aggregate amount of compensation cost related to these awards is determined by the fair value of the award on the modification date. Performance Share Units (“PSUs”) — The following table summarizes PSU activity for the six months ended June 30, 2021: PSUs Weighted Average Unvested PSUs at December 31, 2020 834,172 $ 25.46 Granted 586,984 $ 18.96 Vested ( 197,585 ) $ 44.61 Forfeited ( 14,400 ) $ 18.47 Unvested PSUs at June 30, 2021 1,209,171 $ 19.26 Certain awards granted during the six months ended June 30, 2021 were originally classified as liability awards; however, these awards became equity-classified awards upon stockholder approval of the 2021 LTIP. The following table summarizes the assumptions used in the Monte Carlo simulations to calculate the fair value of the PSUs granted and modified at the date indicated: Modification Date Grant Date May 11, 2021 March 8, 2021 Expected term (in years) 2.6 2.8 Expected volatility 80.9 % 78.3 % Risk-free interest rate 0.3 % 0.3 % Dividend yield — % — % Fair Value (in thousands) $ 9,715 $ 11,129 Share-based Compensation Expense, net Share-based compensation expense associated with RSUs, PSUs and other awards are reflected as “General and administrative expense,” in the Condensed Consolidated Statements of Operations, net amounts capitalized to “Proved Properties,” in the Condensed Consolidated Balance Sheets. Because of the non-cash nature of share-based compensation, the expensed portion of share-based compensation is added back to net income in arriving at “Net cash provided by operating activities” in the Condensed Consolidated Statements of Cash Flows. The Company recognized the following share-based compensation expense, net (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Share-based compensation costs $ 5,626 $ 4,455 $ 10,541 $ 7,667 Less: amounts capitalized to oil and gas properties ( 2,609 ) ( 2,108 ) ( 4,860 ) ( 3,693 ) Total share-based compensation expense, net $ 3,017 $ 2,347 $ 5,681 $ 3,974 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | N ote 8 — Income Taxes The Company is a corporation that is subject to U.S. federal, state and foreign income taxes. For the three months ended June 30, 2021, the Company recognized an income tax expense of $ 0.5 million for an effective tax rate of negative 0.4 %. The Company’s effective tax rate of negative 0.4 % is lower than the U.S. federal statutory income tax rate of 21 % primarily due to recording a valuation allowance for its deferred tax assets. For the three months ended June 30, 2020, the Company recognized income tax benefit of $ 49.4 million for an effective tax rate of 26.0 %. The Company’s effective tax rate of 26.0 % is higher than the U.S. federal statutory income tax rate of 21 % primarily due to the state income taxes and other permanent differences. For the six months ended June 30, 2021, the Company recognized income tax expense of $ 1.1 million for an effective tax rate of negative 0.4 %. The Company’s effective tax rate of negative 0.4 % is lower than the U.S. federal statutory income tax rate of 21 % primarily due to recording a valuation allowance for its deferred tax assets. For the six months ended June 30, 2020 , the Company recognized an income tax expense of $ 5.9 million for an effective tax rate of 25.5 %. The difference between the Company’s effective tax rate of 25.5 % and federal statutory income tax rate of 21 % primarily due to the state income taxes, and other permanent differences, primarily related to non-deductible executive compensation and the impact of equity-based compensation shortfalls. The Company evaluates and updates the estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. Consequently, based upon the mix and timing of the Company’s actual earnings compared to annual projections, the effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. The quarterly income tax provision is generally comprised of tax expense on income or benefit on loss at the most recent estimated annual effective tax rate. The tax effect of discrete items is recognized in the period in which they occur at the applicable statutory rate. Deferred income tax assets and liabilities are recorded related to net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce deductions and income in the future. The Company reduces deferred tax assets by a valuation allowance when, based on estimates, it is more likely than not that a portion of those assets will not be realized in a future period. The deferred tax asset estimates are subject to revision, either up or down, in future periods based on new facts or circumstances. In evaluating the Company’s valuation allowance, the Company considers cumulative losses, the reversal of existing temporary differences, the existence of taxable income in carryback years, tax optimization planning and future taxable income for each of its taxable jurisdictions. The Company assesses the realizability of its deferred tax assets quarterly; changes to the Company’s assessment of its valuation allowance in future periods could materially impact its results of operations. As of June 30, 2021 , the Company maintains a full valuation allowance for U.S. federal, state and foreign net deferred tax assets. |
Income (Loss) Per Share
Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Income (Loss) Per Share | N ote 9 — Income (Loss) Per Share Basic earnings per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Except when the effect would be antidilutive, diluted earnings per common share includes the impact of RSUs, PSUs and outstanding warrants. The following table presents the computation of the Company’s basic and diluted income (loss) per share were as follows (in thousands, except for the per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ ( 125,782 ) $ ( 140,611 ) $ ( 247,273 ) $ 17,138 Weighted average common shares 81,823 65,807 81,630 62,023 Dilutive effect of securities — — — 295 Weighted average common shares 81,823 65,807 81,630 62,318 Net income (loss) per common share: Basic $ ( 1.54 ) $ ( 2.14 ) $ ( 3.03 ) $ 0.28 Diluted $ ( 1.54 ) $ ( 2.14 ) $ ( 3.03 ) $ 0.28 Anti-dilutive potentially issuable securities 869 5,106 2,252 4,732 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | N ote 10 — Related Party Transactions On February 3, 2012, Talos Energy LLC completed a transaction with funds and other alternative investment vehicles managed by Apollo Management VII, L.P. and Apollo Commodities Management, L.P., with respect to Series I (“Apollo Funds”), and entities controlled by or affiliated with Riverstone Energy Partners V, L.P. (“Riverstone Funds” and, together with the Apollo Funds, the “Sponsors”) and members of management pursuant to which the Company received a private equity capital commitment. The Sponsors hold greater than 10 % of the Company’s voting power. ILX and Castex Acquisition On February 28, 2020 the Company acquired assets and liabilities at fair value from sellers that include, the Riverstone Sellers, affiliates of the Riverstone Funds. See additional details in Note 2 — Acquisitions . Whistler Acquisition On August 31, 2018 , the Company acquired certain properties from Whistler Energy II Holdco, LLC, an affiliate of the Apollo Funds. Included in current assets at June 30, 2021 is $ 1.1 million in receivables from an affiliate of the Apollo Funds to reimburse the Company for certain payments made post-closing. Equity Registration Rights Agreement The Sponsors and Riverstone Sellers are parties to an amended registration rights agreement relating to the registered resale of the Company’s common stock owned by such parties, a discussion of which is included in the Notes to the Consolidated Financial Statements in the 2020 Annual Report. The Company will bear all of the expenses incurred in connection with the offer and sale, while the selling stockholders will be responsible for paying underwriting fees, discounts and selling commissions. For the three and six months ended June 30, 2021 , fees incurred by the Company were $ 0.3 million and $ 0.4 million, respectively. For the three and six months ended June 30, 2020 , the Company incurred nil and $ 0.2 million, respectively. Stockholders’ Agreement Amendment On May 10, 2018, the Company entered into a Stockholders’ Agreement (the “Stockholders’ Agreement”) by and among the Company and the other parties thereto. On February 24, 2020, the Company and the other parties thereto amended the Stockholders’ Agreement (the “Stockholders’ Agreement Amendment”). A discussion of the Stockholders’ Agreement Amendment is included in the Notes to Consolidated Financial Statements in the 2020 Annual Report. Legal Fees The Company has engaged the law firm Vinson & Elkins L.L.P. to provide legal services. An immediate family member of William S. Moss III, the Company’s Executive Vice President and General Counsel and one of its executive officers, is a partner at Vinson & Elkins L.L.P. For the three and six months ended June 30, 2021 , the Company incurred fees of approximately $ 0.8 million and $ 1.7 million, respectively, of which $ 0.9 million were payable for legal services performed by Vinson & Elkins L.L.P. as of June 30, 2021. For the three and six months ended June 30, 2020 , the Company incurred fees of approximately $ 1.8 million and $ 3.4 million, respectively, of which $ 3.2 million were payable for legal services performed by Vinson & Elkins L.L.P. as of June 30, 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | N ote 11 — Commitments and Contingencies Performance Obligations Regulations with respect to offshore operations govern, among other things, engineering and construction specifications for production facilities, safety procedures, plugging and abandonment of wells, removal of facilities and to guarantee the execution of the minimum work program under the Mexico production sharing contracts. As of June 30, 2021, the Company had secured performance bonds totaling approximately $ 673.9 million . The cost of securing these bonds are reflected as “Interest expense" in the Condensed Consolidated Statements of Operations. As of June 30, 2021, the Company had $ 13.6 million in letters of credit issued under its Bank Credit Facility. Legal Proceedings and Other Contingencies The Company is named as a party in certain lawsuits and regulatory proceedings arising in the ordinary course of business. The Company does not expect that these matters, individually or in the aggregate, will have a material adverse effect on its financial condition. Decommissioning Obligations The Company has divested various leases, wells and facilities located in the U.S. Gulf of Mexico where the purchasers typically assume all abandonment obligations acquired. Certain of these counterparties in these divestiture transactions or third parties in existing leases have filed for bankruptcy protection or undergone associated reorganizations and may not be able to perform required abandonment obligations. Under certain circumstances, regulations or federal laws could require the Company to assume such obligations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | N ote 12 — Subsequent Events Debt For additional information, see Note 6 — Debt . |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Talos Energy Inc. (including its subsidiaries, collectively “Talos” or the “Company”) is a technically driven independent exploration and production company focused on safely and efficiently maximizing long-term value through its operations, currently in the United States (“U.S.”) Gulf of Mexico and offshore Mexico both upstream through oil and gas exploration and production and downstream through the development of future carbon capture and storage opportunities. The Company leverages decades of technical and offshore operational expertise towards the acquisition, exploration and development of assets in key geological trends that are present in many offshore basins around the world. With a focus on environmental stewardship, we are also utilizing our expertise to explore opportunities to reduce industrial emissions through our carbon capture and storage collaborative arrangement along the U.S. Gulf Coast and Gulf of Mexico. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and disclosures normally included in complete financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, these financial statements include all adjustments, which unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, cash flows and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The unaudited financial statements and related notes included in this Quarterly Report should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying notes included in the 2020 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods and the reported amounts of proved oil and natural gas reserves. Actual results could differ from those estimates. The Company has one reportable segment, which is the exploration and production of oil, natural gas and NGLs. Substantially all of the Company’s long-lived assets, proved reserves and production sales are related to the Company’s operations in the United States. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Acquisition [Line Items] | |
Supplemental Proforma Information | The following supplemental pro forma financial information (in thousands, except per common share amounts), presents the condensed consolidated results of operations for the six months ended June 30, 2020 as if the ILX and Castex Acquisition had occurred on January 1, 2020. The unaudited pro forma information was derived from historical statements of operations of the Company and the Sellers adjusted to (i) include depletion expense applied to the adjusted basis of the oil and natural gas properties acquired, (ii) include interest expense to reflect borrowings under the Bank Credit Facility, (iii) eliminate the write-down of oil and natural gas properties on the assets acquired to reflect the pro-forma ceiling test calculation and (iv) include weighted average basic and diluted shares of common stock outstanding, which was calculated assuming the 11.0 million shares of Conversion Stock were issued to the Sellers. This information does not purport to be indicative of results of operations that would have occurred had the ILX and Castex Acquisition occurred on January 1, 2020, nor is such information indicative of any expected future results of operations. Six Months Ended June 30, 2020 Revenue $ 324,073 Net income $ 29,996 Basic net income per common share $ 0.46 Diluted net income per common share $ 0.46 |
ILX and Castex | |
Business Acquisition [Line Items] | |
Summary of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values on February 28, 2020 (in thousands): Current assets (1) $ 11,060 Property and equipment 496,835 Other long-term assets 148 Current liabilities ( 16,520 ) Other long-term liabilities ( 32,201 ) Allocated purchase price $ 459,322 (1) Includes trade and other receivables of $ 8.2 million. |
Summary of Revenue and Net Income Attributable to Assets Acquired | The following table presents revenue and net income attributable to the assets acquired in the ILX and Castex Acquisition: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Revenue $ 26,299 $ 40,191 Net loss $ ( 15,161 ) $ ( 11,952 ) |
Summary of Purchase Price | The following table summarizes the purchase price (in thousands except share and per share data): Talos Conversion Stock 11,000,000 Talos common stock price per share (1) $ 14.20 Conversion Stock value $ 156,200 Cash consideration $ 385,000 Customary closing and post-closing adjustments ( 81,878 ) Net cash consideration $ 303,122 Total purchase price $ 459,322 Represents the closing price of the Company’s common stock on February 28, 2020, the date of the closing of the ILX and Castex Acquisition. The purchase price was based on the value of the Conversion Stock as the value approximates the value of the Preferred Shares as a result of the automatic conversion and dividend rights described in that certain Certificate of Designation, Preferences, Rights and Limitations. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Oil And Gas Property [Abstract] | |
Schedule of Asset Retirement Obligations | Asset Retirement Obligations The asset retirement obligations included in the Condensed Consolidated Balance Sheets in current and non-current liabilities, and the changes in that liability were as follows (in thousands): Asset Retirement Obligations Asset retirement obligations at December 31, 2020 $ 442,269 Obligations acquired 398 Obligations settled ( 36,329 ) Obligations divested ( 340 ) Accretion expense 30,442 Changes in estimate 19,944 Asset retirement obligations at June 30, 2021 $ 456,384 Less: Current portion at June 30, 2021 ( 47,027 ) Long-term portion at June 30, 2021 $ 409,357 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Finance lease cost - interest on lease liabilities $ 3,012 $ 4,040 $ 6,268 $ 8,305 Operating lease cost, excluding short-term leases (1) 720 866 1,436 1,732 Short-term lease cost (2) 12,092 15,748 17,852 19,283 Variable lease cost (3) 322 3 644 6 Total lease cost $ 16,146 $ 20,657 $ 26,200 $ 29,326 (1) Operating lease cost reflect a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. (2) Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short-term contracts not recognized as a right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets. Variable lease costs primarily represent differences between minimum payment obligations and actual operating charges incurred by the Company related to its long-term leases. |
Schedule of Right-of-Use Asset and Liability, Adjusted for Initial Direct Costs and Incentives | The present value of the fixed lease payments recorded as the Company’s right-of-use asset and liability, adjusted for initial direct costs and incentives were as follows (in thousands): June 30, 2021 December 31, 2020 Operating leases: Operating lease assets $ 7,601 $ 6,855 Current portion of operating lease liabilities $ 2,176 $ 1,793 Operating lease liabilities 18,380 18,554 Total operating lease liabilities $ 20,556 $ 20,347 Finance leases: Proved property $ 124,299 $ 124,299 Other current liabilities $ 24,279 $ 21,804 Other long-term liabilities 27,386 40,222 Total finance lease liabilities $ 51,665 $ 62,026 |
Supplemental Cash Flow Information Related to Leases | The table below presents the supplemental cash flow information related to leases (in thousands): Six Months Ended June 30, 2021 2020 Operating cash outflow from finance leases $ 6,268 $ 8,306 Operating cash outflow from operating leases $ 1,974 $ 911 Right-of-use assets obtained in exchange for new operating lease $ 1,020 $ — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts, net of discount and deferred financing costs, and estimated fair values of the Company’s debt instruments (in thousands): June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair 12.00 % Second-Priority Senior Secured Notes – January 2026 $ 583,777 $ 684,093 $ — $ — 11.00 % Second-Priority Senior Secured Notes – April 2022 $ — $ — $ 343,579 $ 355,935 7.50 % Senior Notes – due May 2022 $ 6,060 $ 5,069 $ 6,060 $ 5,238 Bank Credit Facility – matures November 2024 $ 392,796 $ 400,000 $ 635,873 $ 640,000 |
Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations | The following table presents the impact that derivatives, not qualifying as hedging instruments, had on its Condensed Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net cash received (paid) on settled derivative $ ( 69,237 ) $ 86,039 $ ( 117,618 ) $ 122,499 Unrealized gain (loss) ( 117,380 ) ( 154,721 ) ( 206,507 ) 52,036 Price risk management activities income (expense) $ ( 186,617 ) $ ( 68,682 ) $ ( 324,125 ) $ 174,535 |
Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under the Terms of Derivative Contracts | The following table reflects the contracted volumes and weighted average prices the Company will receive under the terms of its derivative contracts as of June 30, 2021: Production Period Instrument Average Weighted Weighted Weighted Crude Oil – WTI: (Bbls) (per Bbl) (per Bbl) (per Bbl) July 2021 – December 2021 Swaps 22,505 $ 45.45 $ — $ — July 2021 – December 2021 Collars 1,000 $ — $ 30.00 $ 40.00 January 2022 – December 2022 Swaps 19,101 $ 48.62 $ — $ — January 2023 – June 2023 Swaps 3,000 $ 54.07 $ — $ — Crude Oil – LLS: (Bbls) (per Bbl) (per Bbl) (per Bbl) July 2021 – December 2021 Swaps 3,500 $ 42.00 $ — $ — Natural Gas – NYMEX Henry Hub: (MMBtu) (per MMBtu) (per MMBtu) (per MMBtu) July 2021 – December 2021 Swaps 50,815 $ 2.50 $ — $ — July 2021 – December 2021 Collars 5,000 $ — $ 2.50 $ 3.10 January 2022 – December 2022 Swaps 40,162 $ 2.69 $ — $ — January 2023 – June 2023 Swaps 5,000 $ 2.61 $ — $ — |
Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis | The following tables provide additional information related to financial instruments measured at fair value on a recurring basis (in thousands): June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Oil and natural gas swaps and costless collars $ — $ 81 $ — $ 81 Liabilities: Oil and natural gas swaps and costless collars — ( 274,402 ) — ( 274,402 ) Total net liability $ — $ ( 274,321 ) $ — $ ( 274,321 ) December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Oil and natural gas swaps and costless collars $ — $ 7,821 $ — $ 7,821 Liabilities: Oil and natural gas swaps and costless collars — ( 75,635 ) — ( 75,635 ) Total net liability $ — $ ( 67,814 ) $ — $ ( 67,814 ) |
Schedule of Fair Value of Derivative Financial Instruments | The following table presents the fair value of derivative financial instruments (in thousands): June 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Oil and natural gas derivatives: Current $ 39 $ 230,258 $ 6,876 $ 66,010 Non-current 42 44,144 945 9,625 Total $ 81 $ 274,402 $ 7,821 $ 75,635 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Detail Comprising Debt and Related Book Values | A summary of the detail comprising the Company’s debt and the related book values for the respective periods presented is as follows (in thousands): June 30, 2021 December 31, 2020 12.00 % Second-Priority Senior Secured Notes – due January 2026 $ 650,000 $ — 11.00 % Second-Priority Senior Secured Notes – due April 2022 — 347,254 7.50 % Senior Notes – due May 2022 6,060 6,060 Bank Credit Facility – matures November 2024 400,000 640,000 Total debt, before discount and deferred financing cost 1,056,060 993,314 Discount and deferred financing cost ( 73,427 ) ( 7,802 ) Total debt, net of discount and deferred financing costs 982,633 985,512 Less: current portion of long-term debt ( 6,060 ) — Long-term debt, net of discount and deferred financing costs $ 976,573 $ 985,512 |
Employee Benefits Plans and S_2
Employee Benefits Plans and Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Units Activity | The following table summarizes RSU activity for the six months ended June 30, 2021: RSUs Weighted Average Unvested RSUs at December 31, 2020 1,652,988 $ 13.73 Granted 1,067,141 $ 13.11 Vested ( 657,590 ) $ 14.92 Forfeited ( 61,055 ) $ 12.63 Unvested RSUs at June 30, 2021 (1) 2,001,484 $ 13.04 (1) As of June 30, 2021, 44,372 of the unvested RSUs were accounted for as liability awards in “Accrued liabilities” on the Condensed Consolidated Balance Sheet. The Company considers its intent and ability to settle awards in cash or shares in determining whether to classify the awards as equity or as a liability. Certain awards granted during the six months ended June 30, 2021 were originally classified as liability awards; however, these awards became equity-classified awards upon stockholder approval of the 2021 LTIP. The aggregate amount of compensation cost related to these awards is determined by the fair value of the award on the modification date. |
Summary of Performance Share Units Activity | The following table summarizes PSU activity for the six months ended June 30, 2021: PSUs Weighted Average Unvested PSUs at December 31, 2020 834,172 $ 25.46 Granted 586,984 $ 18.96 Vested ( 197,585 ) $ 44.61 Forfeited ( 14,400 ) $ 18.47 Unvested PSUs at June 30, 2021 1,209,171 $ 19.26 Certain awards granted during the six months ended June 30, 2021 were originally classified as liability awards; however, these awards became equity-classified awards upon stockholder approval of the 2021 LTIP. |
Summary of Assumptions Used to Calculate the Grant And Modifications Date Fair Value of PSUs Granted | The following table summarizes the assumptions used in the Monte Carlo simulations to calculate the fair value of the PSUs granted and modified at the date indicated: Modification Date Grant Date May 11, 2021 March 8, 2021 Expected term (in years) 2.6 2.8 Expected volatility 80.9 % 78.3 % Risk-free interest rate 0.3 % 0.3 % Dividend yield — % — % Fair Value (in thousands) $ 9,715 $ 11,129 |
Schedule of Recognized Share Based Compensation Expense, Net | The Company recognized the following share-based compensation expense, net (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Share-based compensation costs $ 5,626 $ 4,455 $ 10,541 $ 7,667 Less: amounts capitalized to oil and gas properties ( 2,609 ) ( 2,108 ) ( 4,860 ) ( 3,693 ) Total share-based compensation expense, net $ 3,017 $ 2,347 $ 5,681 $ 3,974 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Income (Loss) Per Share | The following table presents the computation of the Company’s basic and diluted income (loss) per share were as follows (in thousands, except for the per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ ( 125,782 ) $ ( 140,611 ) $ ( 247,273 ) $ 17,138 Weighted average common shares 81,823 65,807 81,630 62,023 Dilutive effect of securities — — — 295 Weighted average common shares 81,823 65,807 81,630 62,318 Net income (loss) per common share: Basic $ ( 1.54 ) $ ( 2.14 ) $ ( 3.03 ) $ 0.28 Diluted $ ( 1.54 ) $ ( 2.14 ) $ ( 3.03 ) $ 0.28 Anti-dilutive potentially issuable securities 869 5,106 2,252 4,732 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segment | 1 |
Acquisitions - Business Combina
Acquisitions - Business Combination - Additional Information (Details) - USD ($) | Mar. 30, 2020 | Feb. 28, 2020 | Dec. 10, 2019 | Jul. 01, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||||||||
Base Purchase Price Subject to Adjustment | $ 385,000,000 | ||||||||
General and Administrative Expense | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition, transaction related cost | $ 0 | $ 800,000 | $ 0 | $ 8,300,000 | |||||
Series A Convertible Preferred Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Aggregate shares issued | 110,000 | ||||||||
Conversion stock issued to sellers | 11,000,000 | ||||||||
ILX and Castex | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, date of acquisition agreement | Dec. 10, 2019 | ||||||||
Business Acquisition Acquisition Agreement Effective Date1 | Jul. 1, 2019 | ||||||||
Base Purchase Price Subject to Adjustment | $ 385,000,000 | ||||||||
Business acquisition, effective date | Feb. 28, 2020 | ||||||||
ILX and Castex | General and Administrative Expense | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition, transaction related cost | $ 12,100 | ||||||||
ILX and Castex | Contingent Convertible Preferred Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Conversion stock issued to sellers | 11 |
Acquisitions - Summary of Purch
Acquisitions - Summary of Purchase Price, Subject to Customary Post-Closing Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Base Purchase Price Subject to Adjustment | $ 385,000 | |||
Net cash consideration | $ 5,399 | $ 296,966 | ||
ILX and Castex | ||||
Business Acquisition [Line Items] | ||||
Talos Conversion Stock | 11,000,000 | |||
Talos common stock price per share | [1] | $ 14.20 | ||
Conversion Stock value | $ 156,200 | |||
Base Purchase Price Subject to Adjustment | 385,000 | |||
Customary closing and post-closing adjustments | (81,878) | |||
Net cash consideration | 303,122 | |||
Total purchase price | $ 459,322 | |||
[1] | Represents the closing price of the Company’s common stock on February 28, 2020, the date of the closing of the ILX and Castex Acquisition. The purchase price was based on the value of the Conversion Stock as the value approximates the value of the Preferred Shares as a result of the automatic conversion and dividend rights described in that certain Certificate of Designation, Preferences, Rights and Limitations. |
Acquisitions - Business Combi_2
Acquisitions - Business Combination - Summary of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Including the Measurement Period Adjustments (Details) - ILX and Castex $ in Thousands | Feb. 28, 2020USD ($) |
Business Acquisition [Line Items] | |
Current assets | $ 11,060 |
Property and equipment | 496,835 |
Other long-term assets | 148 |
Current liabilities | (16,520) |
Other long-term liabilities | (32,201) |
Allocated purchase price | $ 459,322 |
Acquisitions - Business Combi_3
Acquisitions - Business Combination - Summary of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Including the Measurement Period Adjustments (Parenthetical) (Details) $ in Millions | Feb. 28, 2020USD ($) |
ILX and Castex | Trade and Other Receivables | |
Business Acquisition [Line Items] | |
Primary fair values of receivables acquired | $ 8.2 |
Acquisitions - Business Combi_4
Acquisitions - Business Combination - Summary of Revenue and Net Income Attributable to Assets Acquired (Details) - ILX and Castex - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||
Revenue | $ 26,299 | $ 40,191 |
Net income (loss) | $ (15,161) | $ (11,952) |
Acquisitions - Business Combi_5
Acquisitions - Business Combination - Summary of Supplemental Proforma Information (Details) - ILX and Castex $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ | $ 324,073 |
Net income | $ | $ 29,996 |
Basic net income per common share | $ / shares | $ 0.46 |
Diluted net income per common share | $ / shares | $ 0.46 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / bbl$ / Mcf | Jun. 30, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Write-down of oil and natural gas properties | $ | $ 0 | $ 0 | $ 0 | $ 57,000 |
US | ||||
Property, Plant and Equipment [Line Items] | ||||
Write-down of oil and natural gas properties | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Unweighted average first day of month commodity price for crude oil for prior twelve months | $ / bbl | 50.23 | |||
Unweighted average first day of month commodity price for natural gas for prior twelve months | $ / Mcf | 2.48 | |||
Unweighted average first day of month commodity price for natural gas liquids for prior twelve months | $ / bbl | 14.92 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Oil And Gas Property [Abstract] | |||||
Asset retirement obligations at December 31, 2020 | $ 442,269 | ||||
Obligations acquired | 398 | ||||
Obligations settled | (36,329) | ||||
Obligations divested | (340) | ||||
Accretion expense | $ 15,457 | $ 13,794 | 30,442 | $ 26,211 | |
Changes in estimate | 19,944 | ||||
Asset retirement obligations at June 30, 2021 | 456,384 | 456,384 | |||
Less: Current portion at June 30, 2021 | (47,027) | (47,027) | $ (49,921) | ||
Long-term portion at June 30, 2021 | $ 409,357 | $ 409,357 | $ 392,348 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Lease, Cost [Abstract] | |||||
Finance lease cost - interest on lease liabilities | $ 3,012 | $ 4,040 | $ 6,268 | $ 8,305 | |
Operating lease cost, excluding short-term leases | [1] | 720 | 866 | 1,436 | 1,732 |
Short-term lease cost | [2] | 12,092 | 15,748 | 17,852 | 19,283 |
Variable lease cost | [3] | 322 | 3 | 644 | 6 |
Total lease cost | $ 16,146 | $ 20,657 | $ 26,200 | $ 29,326 | |
[1] | Operating lease cost reflect a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. | ||||
[2] | Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short-term contracts not recognized as a right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets. | ||||
[3] | Variable lease costs primarily represent differences between minimum payment obligations and actual operating charges incurred by the Company related to its long-term leases. |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Asset and Liability, Adjusted for Initial Direct Costs and Incentives (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease assets | $ 7,601 | $ 6,855 |
Current portion of operating lease liabilities | $ 2,176 | $ 1,793 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of operating lease liabilities | Current portion of operating lease liabilities |
Operating lease liabilities | $ 18,380 | $ 18,554 |
Total operating lease liabilities | 20,556 | 20,347 |
Proved property | 124,299 | 124,299 |
Other current liabilities | $ 24,279 | $ 21,804 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Other long-term liabilities | $ 27,386 | $ 40,222 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Total finance lease liabilities | $ 51,665 | $ 62,026 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flow, Operating Activities, Lessee [Abstract] | ||
Operating cash outflow from finance leases | $ 6,268 | $ 8,306 |
Operating cash outflow from operating leases | 1,974 | 911 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1,020 | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
12.00% Second-Priority Senior Secured Notes – due January 2026 | ||
Debt Instrument [Line Items] | ||
Carrying Amount | $ 583,777 | |
Fair Value | 684,093 | |
11.00% Second-Priority Senior Secured Notes – due April 2022 | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 343,579 | |
Fair Value | 355,935 | |
7.50% Senior Notes – due May 2022 | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 6,060 | 6,060 |
Fair Value | 5,069 | 5,238 |
Bank Credit Facility - matures November 2024 | ||
Debt Instrument [Line Items] | ||
Carrying Amount | 392,796 | 635,873 |
Fair Value | $ 400,000 | $ 640,000 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Bank Credit Facility - matures November 2024 | ||
Debt Instrument [Line Items] | ||
Bank credit facility, maturity date | Nov. 12, 2024 | |
12.00% Second-Priority Senior Secured Notes – due January 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 12.00% | 12.00% |
Senior notes, maturity date | Jan. 15, 2026 | Jan. 15, 2026 |
11.00% Second-Priority Senior Secured Notes – due April 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 11.00% | 11.00% |
Senior notes, maturity date | Apr. 3, 2022 | Apr. 3, 2022 |
7.50% Senior Notes – due May 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.50% | 7.50% |
Senior notes, maturity date | May 31, 2022 | May 31, 2022 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - Counterparty | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Bank Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Number of counterparties | 7 | |
Investment Grade Credit Rating | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Number of counterparties | 8 | |
12.00% Second-Priority Senior Secured Notes – due January 2026 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument interest rate | 12.00% | 12.00% |
Senior notes, maturity date | Jan. 15, 2026 | Jan. 15, 2026 |
11.00% Second-Priority Senior Secured Notes – due April 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument interest rate | 11.00% | 11.00% |
Senior notes, maturity date | Apr. 3, 2022 | Apr. 3, 2022 |
7.50% Senior Notes – due May 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument interest rate | 7.50% | 7.50% |
Senior notes, maturity date | May 31, 2022 | May 31, 2022 |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Price risk management activities income (expense) | $ (186,617) | $ (68,682) | $ (324,125) | $ 174,535 |
Commodity Contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net cash received (paid) on settled derivative instruments | (69,237) | 86,039 | (117,618) | 122,499 |
Unrealized gain (loss) | (117,380) | (154,721) | (206,507) | 52,036 |
Price risk management activities income (expense) | $ (186,617) | $ (68,682) | $ (324,125) | $ 174,535 |
Financial Instruments - Sched_4
Financial Instruments - Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under the Terms of Derivative Contracts (Details) | 6 Months Ended |
Jun. 30, 2021$ / MMBTU$ / bblbblMMBbls | |
Crude Oil | WTI | July 2021 – December 2021 | Swap | |
Derivative [Line Items] | |
Instrument Type | Swaps |
Average Daily Volumes | bbl | 22,505 |
Weighted Average Swap Price | 45.45 |
Weighted Average Put Price | 0 |
Weighted Average Call Price | 0 |
Crude Oil | WTI | July 2021 – December 2021 | Collar | |
Derivative [Line Items] | |
Instrument Type | Collars |
Average Daily Volumes | bbl | 1,000 |
Weighted Average Swap Price | 0 |
Weighted Average Put Price | 30 |
Weighted Average Call Price | 40 |
Crude Oil | WTI | January 2022 – December 2022 | Swap | |
Derivative [Line Items] | |
Instrument Type | Swaps |
Average Daily Volumes | bbl | 19,101 |
Weighted Average Swap Price | 48.62 |
Weighted Average Put Price | 0 |
Weighted Average Call Price | 0 |
Crude Oil | WTI | January 2023 – June 2023 | Swap | |
Derivative [Line Items] | |
Instrument Type | Swaps |
Average Daily Volumes | bbl | 3,000 |
Weighted Average Swap Price | 54.07 |
Weighted Average Put Price | 0 |
Weighted Average Call Price | 0 |
Crude Oil | LLS | July 2021 – December 2021 | Swap | |
Derivative [Line Items] | |
Instrument Type | Swaps |
Average Daily Volumes | bbl | 3,500 |
Weighted Average Swap Price | 42 |
Weighted Average Put Price | $ / MMBTU | 0 |
Weighted Average Call Price | 0 |
Natural Gas | July 2021 – December 2021 | Swap | NYMEX Henry Hub | |
Derivative [Line Items] | |
Instrument Type | Swaps |
Average Daily Volumes | MMBbls | 50,815 |
Weighted Average Swap Price | $ / MMBTU | 2.50 |
Weighted Average Put Price | $ / MMBTU | 0 |
Weighted Average Call Price | $ / MMBTU | 0 |
Natural Gas | July 2021 – December 2021 | Collar | NYMEX Henry Hub | |
Derivative [Line Items] | |
Instrument Type | Collars |
Average Daily Volumes | MMBbls | 5,000 |
Weighted Average Swap Price | $ / MMBTU | 0 |
Weighted Average Put Price | $ / MMBTU | 2.50 |
Weighted Average Call Price | $ / MMBTU | 3.10 |
Natural Gas | January 2022 – December 2022 | Swap | NYMEX Henry Hub | |
Derivative [Line Items] | |
Instrument Type | Swaps |
Average Daily Volumes | MMBbls | 40,162 |
Weighted Average Swap Price | $ / MMBTU | 2.69 |
Weighted Average Put Price | $ / MMBTU | 0 |
Weighted Average Call Price | $ / MMBTU | 0 |
Natural Gas | January 2023 – June 2023 | Swap | NYMEX Henry Hub | |
Derivative [Line Items] | |
Instrument Type | Swaps |
Average Daily Volumes | MMBbls | 5,000 |
Weighted Average Swap Price | $ / MMBTU | 2.61 |
Weighted Average Put Price | $ / MMBTU | 0 |
Weighted Average Call Price | $ / MMBTU | 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis (Details) - Fair Value on Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Total net asset (liability) | $ (274,321) | $ (67,814) |
Oil And Natural Gas Swaps And Costless Collars | ||
Assets: | ||
Oil and natural gas swaps and costless collars | 81 | 7,821 |
Liabilities: | ||
Oil and natural gas swaps and costless collars | (274,402) | (75,635) |
Level 1 | ||
Liabilities: | ||
Total net asset (liability) | 0 | 0 |
Level 1 | Oil And Natural Gas Swaps And Costless Collars | ||
Assets: | ||
Oil and natural gas swaps and costless collars | 0 | 0 |
Liabilities: | ||
Oil and natural gas swaps and costless collars | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Total net asset (liability) | (274,321) | (67,814) |
Level 2 | Oil And Natural Gas Swaps And Costless Collars | ||
Assets: | ||
Oil and natural gas swaps and costless collars | 81 | 7,821 |
Liabilities: | ||
Oil and natural gas swaps and costless collars | (274,402) | (75,635) |
Level 3 | ||
Liabilities: | ||
Total net asset (liability) | 0 | 0 |
Level 3 | Oil And Natural Gas Swaps And Costless Collars | ||
Assets: | ||
Oil and natural gas swaps and costless collars | 0 | 0 |
Liabilities: | ||
Oil and natural gas swaps and costless collars | $ 0 | $ 0 |
Financial Instruments - Sched_5
Financial Instruments - Schedule of Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Price Risk Derivatives [Line Items] | ||
Assets from price risk management activities | $ 39 | $ 6,876 |
Assets from price risk management activities | 42 | 945 |
Liabilities from price risk management activities | 230,258 | 66,010 |
Liabilities from price risk management activities | 44,144 | 9,625 |
Oil and Natural Gas Derivatives | ||
Price Risk Derivatives [Line Items] | ||
Assets from price risk management activities | 39 | 6,876 |
Assets from price risk management activities | 42 | 945 |
Assets | 81 | 7,821 |
Liabilities from price risk management activities | 230,258 | 66,010 |
Liabilities from price risk management activities | 44,144 | 9,625 |
Liabilities | $ 274,402 | $ 75,635 |
Debt - Summary of Detail Compri
Debt - Summary of Detail Comprising Debt and Related Book Values (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total debt, before discount and deferred financing cost | $ 1,056,060 | $ 993,314 |
Discount and deferred financing cost | (73,427) | (7,802) |
Total debt, net of discount and deferred financing costs | 982,633 | 985,512 |
Less: current portion of long-term debt | (6,060) | |
Long-term debt, net of discount and deferred financing costs | 976,573 | 985,512 |
Senior Notes | 12.00% Second-Priority Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Total debt, before discount and deferred financing cost | 650,000 | |
Senior Notes | 11.00% Second-Priority Senior Secured Notes – due April 2022 | ||
Debt Instrument [Line Items] | ||
Total debt, before discount and deferred financing cost | 347,254 | |
Senior Notes | 7.50% Senior Notes – due May 2022 | ||
Debt Instrument [Line Items] | ||
Total debt, before discount and deferred financing cost | 6,060 | 6,060 |
Bank Credit Facility | Bank Credit Facility - matures November 2024 | ||
Debt Instrument [Line Items] | ||
Total debt, before discount and deferred financing cost | $ 400,000 | $ 640,000 |
Debt - Summary of Detail Comp_2
Debt - Summary of Detail Comprising Debt and Related Book Values (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Jan. 14, 2021 | |
11.00% Second-Priority Senior Secured Notes – due April 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 11.00% | 11.00% | |
Senior notes, maturity date | Apr. 3, 2022 | Apr. 3, 2022 | |
7.50% Senior Notes – due May 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 7.50% | 7.50% | |
Senior notes, maturity date | May 31, 2022 | May 31, 2022 | |
Bank Credit Facility - matures November 2024 | |||
Debt Instrument [Line Items] | |||
Bank credit facility, maturity date | Nov. 12, 2024 | ||
Senior Notes | 12.00% Second-Priority Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 12.00% | 12.00% | |
Senior notes, maturity date | Jan. 15, 2026 | ||
Senior Notes | 11.00% Second-Priority Senior Secured Notes – due April 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 11.00% | ||
Senior notes, maturity date | Apr. 3, 2022 | ||
Senior Notes | 7.50% Senior Notes – due May 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 7.50% | ||
Senior notes, maturity date | May 31, 2022 | ||
Bank Credit Facility | Bank Credit Facility - matures November 2024 | |||
Debt Instrument [Line Items] | |||
Bank credit facility, maturity date | Nov. 12, 2024 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) shares in Millions | Jan. 15, 2023 | Jun. 15, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jan. 14, 2021 | Jan. 13, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||||||
Debt Instruments | $ 1,056,060,000 | $ 1,056,060,000 | $ 993,314,000 | |||||||
Gain (loss) on extinguishment of debt | (13,225,000) | $ 1,470,000 | ||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Commitments | $ 150,000,000 | $ 150,000,000 | ||||||||
Bank Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Borrowing Capacity, Description | The Bank Credit Facility provides for determination of the borrowing base based on the Company’s proved producing reserves and a portion of our proved undeveloped reserves. | |||||||||
12.00% Second-Priority Senior Secured Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 12.00% | 12.00% | 12.00% | |||||||
Debt instrument maturity date | Jan. 15, 2026 | |||||||||
Debt instrument frequency of periodic payment | semi-annually | |||||||||
Debt instrument payment terms | semi-annually each January 15 and July 15 | |||||||||
Debt instrument redemption, description | At any time prior to January 15, 2023, the Company may redeem up to 40% of the principal amount of the 12.00% Notes at a redemption rate of 112.00% of the principal amount plus accrued and unpaid interest. Thereafter, the Company may redeem all or a portion of the 12.00% Notes at redemption prices decreasing annually on January 15 from 106.00% to 100.00% plus accrued and unpaid interest. | |||||||||
Debt Instruments | $ 650,000,000 | $ 650,000,000 | ||||||||
12.00% Second-Priority Senior Secured Notes | Senior Notes | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||
12.00% Second-Priority Senior Secured Notes | Senior Notes | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 106.00% | |||||||||
12.00% Second-Priority Senior Secured Notes | Senior Notes | Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum percentage of principal amount option to redeem | 40.00% | |||||||||
Debt instrument, redemption price, percentage | 112.00% | |||||||||
11.00% Second-Priority Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 11.00% | |||||||||
Debt instrument, redemption price, percentage | 102.75% | |||||||||
Debt instrument, repurchase amount | $ 37,200,000 | $ 2,000,000 | $ 2,000,000 | |||||||
11.00% Second-Priority Senior Secured Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 11.00% | 11.00% | 11.00% | |||||||
Debt Instruments | $ 347,300,000 | |||||||||
Debt instrument, shares issued in conversion for repurchased and retired notes | 3.1 | |||||||||
11.00% Second-Priority Senior Secured Notes | Senior Notes | Other Income (Expense) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gain (loss) on extinguishment of debt | 0 | $ 1,500,000 | $ (13,200,000) | $ 1,500,000 | ||||||
Bank Credit Facility - matures November 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Bank credit facility, maturity date | Nov. 12, 2024 | |||||||||
Credit facility, maximum borrowing capacity | 950,000,000 | $ 950,000,000 | $ 960,000,000 | |||||||
Line of Credit Facility, Commitments | $ 655,000,000 | $ 655,000,000 | ||||||||
Bank credit facility, description | The borrowing base is redetermined by the lenders at least semi-annually during the second quarter and fourth quarter each year. On June 22, 2021, the Company entered into a Borrowing Base Redetermination Agreement and Sixth Amendment to Credit Agreement (the “Sixth Amendment”). The Sixth Amendment, among other things, (i) extended the maturity date of the Bank Credit Facility from May 10, 2022 to November 12, 2024 | |||||||||
Weighted average interest rate | 3.55% | 3.55% | ||||||||
Line of credit outstanding borrowing amount | $ 400,000,000 | $ 400,000,000 | ||||||||
Letters of credit outstanding amount | 13,600,000 | 13,600,000 | ||||||||
Bank Credit Facility - matures November 2024 | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | $ 200,000,000 | |||||||||
Bank Credit Facility - matures November 2024 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Commitments | $ 730,000,000 | |||||||||
Line of Credit Facility, Increase (Decrease), Net, Total | $ 75,000,000 | |||||||||
Bank Credit Facility - matures November 2024 | Bank Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Bank credit facility, maturity date | Nov. 12, 2024 | |||||||||
Debt Instruments | $ 400,000,000 | $ 400,000,000 | $ 640,000,000 |
Employee Benefits Plans and S_3
Employee Benefits Plans and Share-Based Compensation - Additional Information (Details) - 2021 Long Term Incentive Plan | 6 Months Ended |
Jun. 30, 2021shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-Based Compensation authorized to grant | 8,639,415 |
Performance Share Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Description of method used to calculate fair value | Monte Carlo simulations |
Employee Benefits Plans and S_4
Employee Benefits Plans and Share-Based Compensation - Schedule of Restricted Stock and Performance Share Units Activity (Details) | 6 Months Ended | |
Jun. 30, 2021$ / sharesshares | ||
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested restricted stock units and award beginning of the period | shares | 1,652,988 | |
Unvested restricted stock units and award, granted | shares | 1,067,141 | |
Unvested restricted stock units and award, vested | shares | (657,590) | |
Unvested restricted stock units and award, forfeited | shares | (61,055) | |
Unvested restricted stock units and award, end of the period | shares | 2,001,484 | [1] |
Unvested weighted average grant date fair value, beginning of the period | $ / shares | $ 13.73 | |
Unvested weighted average grant date fair value, granted | $ / shares | 13.11 | |
Unvested weighted average grant date fair value, vested | $ / shares | 14.92 | |
Unvested weighted average grant date fair value, forfeited | $ / shares | 12.63 | |
Unvested weighted average grant date fair value, end of the period | $ / shares | $ 13.04 | [1] |
Performance Share Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested restricted stock units and award beginning of the period | shares | 834,172 | |
Unvested restricted stock units and award, granted | shares | 586,984 | |
Unvested restricted stock units and award, vested | shares | (197,585) | |
Unvested restricted stock units and award, forfeited | shares | (14,400) | |
Unvested restricted stock units and award, end of the period | shares | 1,209,171 | |
Unvested weighted average grant date fair value, beginning of the period | $ / shares | $ 25.46 | |
Unvested weighted average grant date fair value, granted | $ / shares | 18.96 | |
Unvested weighted average grant date fair value, vested | $ / shares | 44.61 | |
Unvested weighted average grant date fair value, forfeited | $ / shares | 18.47 | |
Unvested weighted average grant date fair value, end of the period | $ / shares | $ 19.26 | |
[1] | As of June 30, 2021, 44,372 of the unvested RSUs were accounted for as liability awards in “Accrued liabilities” on the Condensed Consolidated Balance Sheet. |
Employee Benefits Plans and S_5
Employee Benefits Plans and Share-Based Compensation - Schedule of Restricted Stock and Performance Share Units Activity (Parenthetical) (Details) - Restricted Stock Units | 6 Months Ended |
Jun. 30, 2021shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested restricted stock units and award, granted | 1,067,141 |
Accrued Liabilities | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested restricted stock units and award, granted | 44,372 |
Employee Benefits Plans and S_6
Employee Benefits Plans and Share-Based Compensation - Summary of Assumptions Used to Calculate the Grant And Modification Date Fair Value (Details) - Performance Share Units - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | May 11, 2021 | Mar. 08, 2021 | |
2021 Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (in years) | 2 years 9 months 18 days | ||
Expected volatility | 78.30% | ||
Risk-free interest rate | 0.30% | ||
Dividend yield | 0.00% | ||
Fair Value | $ 11,129 | ||
Modification Date May 11,2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (in years) | 2 years 7 months 6 days | ||
Expected volatility | 80.90% | ||
Risk-free interest rate | 0.30% | ||
Dividend yield | 0.00% | ||
Fair Value | $ 9,715 |
Employee Benefits Plans and S_7
Employee Benefits Plans and Share-Based Compensation - Schedule of Recognized Share Based Compensation Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Share-based compensation costs | $ 5,626 | $ 4,455 | $ 10,541 | $ 7,667 |
Less: amounts capitalized to oil and gas properties | (2,609) | (2,108) | (4,860) | (3,693) |
Total share-based compensation expense, net | $ 3,017 | $ 2,347 | $ 5,681 | $ 3,974 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (498) | $ 49,392 | $ (1,082) | $ (5,868) |
Effective tax rate | (0.40%) | 26.00% | (0.40%) | 25.50% |
U.S. Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Income (Loss) Per Share - Summa
Income (Loss) Per Share - Summary of Computation of Basic and Diluted Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (125,782) | $ (140,611) | $ (247,273) | $ 17,138 |
Weighted average common shares outstanding — basic | 81,823 | 65,807 | 81,630 | 62,023 |
Dilutive effect of securities | 0 | 0 | 0 | 295 |
Weighted average common shares outstanding — diluted | 81,823 | 65,807 | 81,630 | 62,318 |
Basic | $ (1.54) | $ (2.14) | $ (3.03) | $ 0.28 |
Diluted | $ (1.54) | $ (2.14) | $ (3.03) | $ 0.28 |
Anti-dilutive potentially issuable securities excluded from diluted common shares | 869 | 5,106 | 2,252 | 4,732 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Original Equity Registration Rights Agreement | |||||
Related Party Transaction [Line Items] | |||||
Fees incurred in conjunction with agreement | $ 0.3 | $ 0 | $ 0.4 | $ 0.2 | |
Sponsors | |||||
Related Party Transaction [Line Items] | |||||
Percentage of voting power | 10.00% | 10.00% | |||
Apollo Funds | Whistler Energy II, LLC | Whistler Energy II Holdco, LLC | |||||
Related Party Transaction [Line Items] | |||||
Business acquisition, date of acquisition agreement | Aug. 31, 2018 | ||||
Primary fair values of receivables acquired | $ 1.1 | $ 1.1 | |||
Vinson & Elkins L.L.P. | |||||
Related Party Transaction [Line Items] | |||||
Legal fees incurred | 0.8 | 1.8 | 1.7 | 3.4 | |
Legal fees payable | $ 0.9 | $ 3.2 | $ 0.9 | $ 3.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Jun. 30, 2021USD ($) |
Letter of Credit | |
Loss Contingencies [Line Items] | |
Credit facility | $ 150 |
Bank Credit Facility | Letter of Credit | |
Loss Contingencies [Line Items] | |
Letters Of Credit Outstanding Amount | 13.6 |
Surety Bond | |
Loss Contingencies [Line Items] | |
Surety performance bonds outstanding | $ 673.9 |