Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 04, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38435 | ||
Entity Registrant Name | HighPoint Resources Corp | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 82-3620361 | ||
Entity Address, Address Line One | 555 17th Street, Suite 3700 | ||
Entity Address, City or Town | Denver | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80202 | ||
City Area Code | 303 | ||
Local Phone Number | 293-9100 | ||
Title of 12(b) Security | Common Stock, $.001 par value | ||
Trading Symbol | HPR | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 32,515,387 | ||
Entity Common Stock, Shares Outstanding | 4,305,075 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001725526 | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 24,709 | $ 16,449 |
Accounts receivable, net of allowance | 38,294 | 62,120 |
Derivative assets | 18,477 | 3,916 |
Prepayments and other current assets | 8,748 | 3,952 |
Total current assets | 90,228 | 86,437 |
Property and equipment — at cost, successful efforts method for oil and gas properties: | ||
Proved oil and gas properties | 2,763,968 | 2,644,129 |
Unproved oil and gas properties, excluded from amortization | 212,550 | 357,793 |
Furniture, equipment and other | 30,403 | 29,804 |
Property, plant and equipment, gross | 3,006,921 | 3,031,726 |
Accumulated depreciation, depletion, amortization and impairment | 2,282,740 | 967,552 |
Total property and equipment, net | 724,181 | 2,064,174 |
Other noncurrent assets | 12,228 | 5,441 |
Total | 826,637 | 2,156,052 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 31,920 | 71,638 |
Amounts payable to oil and gas property owners | 28,616 | 37,922 |
Production taxes payable | 22,221 | 61,507 |
Derivative liabilities | 1,414 | 4,411 |
Total current liabilities | 84,171 | 175,478 |
Long-term debt, net of debt issuance costs | 760,434 | 758,911 |
Asset retirement obligations | 24,825 | 23,491 |
Deferred income taxes | 1,556 | 97,418 |
Other noncurrent liabilities | 32,334 | 17,436 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Common stock, 0.001 par value; authorized 8,000,000 shares; 4,305,075 and 4,273,391 shares issued and outstanding at December 31, 2020 and 2019, respectively, with 58,668 and 59,369 shares subject to restrictions, respectively | 4 | 4 |
Additional paid-in capital | 1,781,966 | 1,777,986 |
Accumulated deficit | (1,858,653) | (694,672) |
Treasury stock, at cost: zero shares at December 31, 2020 and 2019 | 0 | 0 |
Total stockholders’ equity (deficit) | (76,683) | 1,083,318 |
Total | $ 826,637 | $ 2,156,052 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 4,305,075 | 4,273,391 |
Common stock, shares outstanding | 4,305,075 | 4,273,391 |
Common stock, shares subject to restrictions | 58,668 | 59,369 |
Treasury stock, shares | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Revenues: | |||
Total operating revenues | $ 250,347 | $ 452,659 | $ 453,017 |
Operating Expenses: | |||
Production tax expense | (630) | 23,541 | 36,762 |
Exploration expense | 192 | 143 | 70 |
Impairment and abandonment expense | 1,285,085 | 9,642 | 719 |
Loss on sale of properties | 4,777 | 2,901 | 1,046 |
Depreciation, depletion and amortization | 148,995 | 321,276 | 228,480 |
Unused commitments | 18,807 | 17,706 | 18,187 |
General and administrative expense | 43,167 | 44,759 | 45,130 |
Merger transaction expense | 25,891 | 4,492 | 7,991 |
Other operating expenses (income), net | (544) | 402 | 1,273 |
Total operating expenses | 1,576,755 | 473,343 | 372,152 |
Operating Income (Loss) | (1,326,408) | (20,684) | 80,865 |
Other Income and Expense: | |||
Interest and other income | 449 | 791 | 1,793 |
Interest expense | (58,809) | (58,100) | (52,703) |
Commodity derivative gain (loss) | 124,925 | (98,953) | 93,349 |
Loss on extinguishment of debt | 0 | 0 | (257) |
Total other income (expense) | 66,565 | (156,262) | 42,182 |
Income (Loss) before Income Taxes | (1,259,843) | (176,946) | 123,047 |
(Provision for) Benefit from Income Taxes | 95,862 | 42,116 | (1,827) |
Net Income (Loss) | $ (1,163,981) | $ (134,830) | $ 121,220 |
Net Income (Loss) Per Common Share, Basic (in dollars per share) | $ (274.65) | $ (32.04) | $ 32.19 |
Net Income (Loss) Per Common Share, Diluted (in dollars per share) | $ (274.65) | $ (32.04) | $ 32.03 |
Weighted Average Common Shares Outstanding, Basic (in shares) | 4,238,180 | 4,207,833 | 3,765,981 |
Weighted Average Common Shares Outstanding, Diluted (in shares) | 4,238,180 | 4,207,833 | 3,784,821 |
Oil, gas and NGL production | |||
Operating Revenues: | |||
Production and other revenues | $ 249,192 | $ 452,274 | $ 452,917 |
Other operating revenues, net | |||
Operating Revenues: | |||
Production and other revenues | 1,155 | 385 | 100 |
Lease operating expense | |||
Operating Expenses: | |||
Cost of goods and services | 32,548 | 37,796 | 27,850 |
Gathering, transportation and processing expense | |||
Operating Expenses: | |||
Cost of goods and services | $ 18,467 | $ 10,685 | $ 4,644 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Net Income (Loss) | $ (1,163,981) | $ (134,830) | $ 121,220 |
Adjustments to reconcile to net cash provided by operations: | |||
Depreciation, depletion and amortization | 148,995 | 321,276 | 228,480 |
Deferred income taxes | (95,862) | (42,116) | 1,827 |
Impairment and abandonment expense | 1,285,085 | 9,642 | 719 |
Commodity derivative (gain) loss | (124,925) | 98,953 | (93,349) |
Settlements of commodity derivatives | 109,583 | 10,667 | (47,587) |
Stock compensation and other non-cash charges | 3,821 | 11,306 | 8,337 |
Amortization of deferred financing costs | 3,936 | 2,556 | 2,365 |
Loss on extinguishment of debt | 0 | 0 | 257 |
Loss on sale of properties | 4,777 | 2,901 | 1,046 |
Change in operating assets and liabilities: | |||
Accounts receivable | 16,890 | 10,795 | (13,697) |
Prepayments and other assets | (5,324) | (27) | (793) |
Accounts payable, accrued and other liabilities | (21,320) | 3,030 | (40,324) |
Amounts payable to oil and gas property owners | (9,306) | (17,870) | 34,499 |
Production taxes payable | (23,407) | 2,352 | 28,441 |
Net cash provided by operating activities | 128,962 | 278,635 | 231,441 |
Investing Activities: | |||
Additions to oil and gas properties, including acquisitions | (122,857) | (426,416) | (453,616) |
Additions of furniture, equipment and other | (931) | (4,662) | (853) |
Repayment of debt associated with 2018 Merger, net of cash acquired | 0 | 0 | (53,357) |
Proceeds from sale of properties | 2,765 | 1,334 | (221) |
Other investing activities | 1,164 | (1,612) | 364 |
Net cash used in investing activities | (119,859) | (431,356) | (507,683) |
Financing Activities: | |||
Proceeds from debt | 120,000 | 222,000 | 0 |
Principal payments on debt | 120,000 | 83,859 | 469 |
Other financing activities | (843) | (1,745) | (4,981) |
Net cash provided by (used in) financing activities | (843) | 136,396 | (5,450) |
Increase (Decrease) in Cash and Cash Equivalents | 8,260 | (16,325) | (281,692) |
Beginning Cash and Cash Equivalents | 16,449 | 32,774 | 314,466 |
Ending Cash and Cash Equivalents | $ 24,709 | $ 16,449 | $ 32,774 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | |
Balance at beginning of period at Dec. 31, 2017 | $ 598,554 | $ 2 | $ 1,279,614 | $ (681,062) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock activity and shares exchanged for tax withholding | (1,534) | 0 | 1 | (1,535) | ||
Stock-based compensation | 9,858 | 9,858 | [1] | |||
Retirement of treasury stock | 0 | (1,535) | 1,535 | |||
Issuance of common stock, merger | 484,000 | 2 | 483,998 | |||
Net Income (Loss) | 121,220 | 121,220 | ||||
Balance at end of period at Dec. 31, 2018 | 1,212,098 | 4 | 1,771,936 | (559,842) | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock activity and shares exchanged for tax withholding | (1,728) | 0 | 1 | (1,729) | ||
Stock-based compensation | 7,778 | 7,778 | ||||
Retirement of treasury stock | 0 | (1,729) | 1,729 | |||
Net Income (Loss) | (134,830) | (134,830) | ||||
Balance at end of period at Dec. 31, 2019 | 1,083,318 | 4 | 1,777,986 | (694,672) | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Restricted stock activity and shares exchanged for tax withholding | (669) | 0 | 0 | (669) | ||
Stock-based compensation | 4,649 | 4,649 | ||||
Retirement of treasury stock | 0 | (669) | 669 | |||
Net Income (Loss) | (1,163,981) | (1,163,981) | ||||
Balance at end of period at Dec. 31, 2020 | $ (76,683) | $ 4 | $ 1,781,966 | $ (1,858,653) | $ 0 | |
[1] | Includes the modification of the 2016 Program and 2017 Program from performance-based liability awards to service-based equity awards. See Note 11 for additional information. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization HighPoint Resources Corporation, a Delaware corporation, together with its wholly-owned subsidiaries (collectively, the “Company” or “HighPoint”), is an independent oil and gas company engaged in the exploration, development and production of oil, natural gas and natural gas liquids (“NGLs”). The Company became the successor to Bill Barrett Corporation (“Bill Barrett”), on March 19, 2018, upon closing of the transactions contemplated by the Agreement and Plan of Merger, dated December 4, 2017 (the “2018 Merger Agreement”), pursuant to which Bill Barrett combined with Fifth Creek Energy Operating Company, LLC (“Fifth Creek”) (the “2018 Merger”). As a result of the 2018 Merger, Bill Barrett became a wholly-owned subsidiary of HighPoint Resources Corporation and subsequently Bill Barrett changed its name to HighPoint Operating Corporation. The Company currently conducts its activities principally in the Denver Julesburg Basin (“DJ Basin”) in Colorado. Except where the context indicates otherwise, references herein to the “Company” with respect to periods prior to the completion of the 2018 Merger refer to Bill Barrett and its subsidiaries. On November 9, 2020, the Company and Bonanza Creek Energy, Inc., a Delaware corporation (“Bonanza Creek”), entered into a definitive merger agreement (“Merger Agreement”) to effectuate the strategic combination of Bonanza Creek and HighPoint (“Merger”). The transaction has been unanimously approved by the board of directors of each company. Under the terms of the Merger Agreement, Bonanza Creek has commenced a registered offer to exchange HighPoint’s senior unsecured notes (the “HighPoint Notes”) for senior notes and common stock of Bonanza Creek (the “Exchange Offer”). The Exchange Offer is conditioned on a minimum participation condition of not less than 97.5% of the aggregate outstanding principal amount of each series of HighPoint Notes being validly tendered in accordance with the terms of the Exchange Offer prior to the expiration date of the Exchange Offer (the “Minimum Participation Condition”). Registration statements on Form S-4 of Bonanza Creek and a merger proxy of HighPoint have been declared effective by the SEC. The Exchange Offer expires on March 11, 2021 (unless extended by HighPoint and Bonanza Creek) and special meetings for Bonanza Creek and HighPoint stockholders will both be held on March 12, 2021 to approve the Merger. Concurrently with the Exchange Offer, HighPoint is soliciting votes from the holders of the HighPoint Senior Notes to accept or reject a prepackaged plan of reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Court,” and such plan, the “Prepackaged Plan”). If the Minimum Participation Condition is met, and if certain customary closing conditions are satisfied (including approval by each company’s shareholders), the companies will effect the Exchange Offer and Bonanza Creek will acquire HighPoint at closing through a merger outside of bankruptcy, whereby HighPoint will merge with a wholly owned subsidiary of Bonanza Creek, with HighPoint continuing its existence as the surviving company following the merger and continuing as a wholly owned subsidiary of Bonanza Creek. If the Minimum Participation Condition is not met, HighPoint intends to file voluntary petitions under Chapter 11 with the Court to effectuate the solicited Prepackaged Plan and consummate the transaction. The consummation of the Prepackaged Plan will be subject to confirmation by the Court in addition to other conditions set forth in the Prepackaged Plan, a transaction support agreement and related transaction documents. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation. The accompanying Consolidated Financial Statements include the accounts of the Company. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. On October 20, 2020, the Company announced a reverse stock split of the Company’s outstanding shares of common stock at a ratio of 1-for-50 and a proportionate reduction of the total number of authorized shares of common stock, which was approved by the stockholders at the Company’s Annual Meeting of Stockholders on April 28, 2020. The reverse stock split became effective on October 30, 2020, and the Company’s common stock was traded on a split-adjusted basis on the New York Stock Exchange (“NYSE”) at the market open on that date. The par value of the common stock was not adjusted as a result of the reverse stock split. All share and per share amounts were retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of the Company’s common stock to additional paid-in capital. Going Concern . The accompanying consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In accordance with the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management evaluates whether there are conditions or events that, when considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In making its assessment, management considered the Company’s current financial condition and liquidity sources, including current funds available, forecasted future cash flows and conditional and unconditional obligations due over the next twelve months. The Company has been impacted by the decreased demand for oil, natural gas and NGLs caused by the COVID-19 pandemic, along with other recent macro and microeconomic factors, which resulted in a significant decrease in market prices for oil, natural gas and NGLs beginning in March 2020. These events negatively impacted the Company’s ability to continue its development plan, which resulted in a decrease in anticipated future production, and led to a reduction in the Company’s borrowing base and elected commitment amounts under its revolving credit facility (“Credit Facility”). The Company has financial covenants associated with its Credit Facility that are measured each quarter. Based on the Company’s forecasted cash flow analysis for the twelve month period subsequent to the date of this filing, which reflects its expectations of future market pricing, current open commodity hedge contracts, anticipated production volumes and estimates of operating, investing and financial cash flows, it is probable the Company will breach a financial covenant under the Company’s Credit Facility in the third quarter of 2021. Violation of any covenant under the Credit Facility provides the lenders with the option to accelerate the maturity of the Credit Facility, which carries a balance of $140.0 million as of December 31, 2020. This would, in turn, result in cross-default under the indentures to the Company’s senior notes, accelerating the maturity of the senior notes, which have a principal balance outstanding of $625.0 million as of December 31, 2020. The Company does not have sufficient cash on hand or available liquidity that can be utilized to repay the outstanding debt in the event of default. These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company’s independent auditor has included an explanatory paragraph regarding the Company’s ability to continue as a “going concern” (“going concern opinion”) in its report on these consolidated financial statements, which would accelerate a default under the Company’s Credit Facility to the filing date of these financial statements. However, the Company obtained a waiver from its lenders removing the default associated with this going concern opinion. In response to these conditions, the Company has taken various steps to preserve its liquidity including (1) deferring drilling and completion activity starting in May 2020 for the foreseeable future, (2) continuing to focus on reducing its operating and overhead costs, and (3) continuing to manage its hedge portfolio. The Company’s plans also include (1) negotiating a waiver of the financial covenant with the lenders, (2) negotiating more flexible financial covenants, or (3) refinancing the Credit Facility or senior notes. However, the availability of capital funding that would allow the Company to refinance the debt on terms acceptable to the Company has substantially diminished. In addition, the Company entered into a Merger Agreement with Bonanza Creek on November 9, 2020, pursuant to which HighPoint’s debt will be restructured and HighPoint will merge with a wholly owned subsidiary of Bonanza Creek, with HighPoint continuing its existence as the surviving company following the merger and continuing as a wholly owned subsidiary of Bonanza Creek. See Note 1 for additional information. However, the Merger has not yet closed and the closing is subject to numerous conditions, some of which are beyond the companies' control, which include, among other things, approvals from the stockholders of both companies, participation in the Exchange Offer or votes in favor of the Prepackaged Plan by HighPoint bondholders and possibly approval from the Court. As a result, the Company has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Use of Estimates. In the course of preparing the Company’s financial statements in accordance with GAAP, management makes various assumptions, judgments and estimates to determine the reported amount of assets, liabilities, revenues and expenses and in the disclosure of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and, accordingly, actual results could differ from amounts initially established. Areas requiring the use of assumptions, judgments and estimates relate to volumes of oil, natural gas and NGL reserves used in calculating depreciation, depletion and amortization (“DD&A”), the amount of expected future cash flows used in determining impairments of oil and gas properties and the amount of future capital costs used in these calculations. Assumptions, judgments and estimates also are required in determining the fair values of assets acquired and liabilities assumed in business combinations, asset retirement obligations, right-of-use assets and lease liabilities, deferred income taxes, the timing of dry hole costs, impairments of proved and unproved oil and gas properties and fair values of derivative instruments and stock-based payment awards. Further, these estimates and other factors, including those outside of the Company’s control, such as the impact of lower commodity prices, may have a significant adverse impact to the Company’s business, financial condition, results of operations and cash flows. Accounts Receivable. Accounts receivable is comprised of the following: As of December 31, 2020 2019 (in thousands) Accrued oil, gas and NGL sales $ 25,874 $ 50,171 Due from joint interest owners (1) 8,690 9,551 Other 4,431 2,419 Allowance for credit losses (701) (21) Total accounts receivable, net $ 38,294 $ 62,120 (1) Includes $4.5 million of current accounts receivable associated with one joint interest partner. An additional $9.7 million due from this joint interest partner has been recorded within other noncurrent assets in the Consolidated Balance Sheets. The Company will net the outstanding amounts against certain revenues payable to this joint interest partner. Oil and Gas Properties. The Company’s oil, gas and NGL exploration and production activities are accounted for using the successful efforts method. Under this method, all property acquisition costs and costs of exploratory and development wells are capitalized when incurred, pending determination of whether the well has found proved reserves. If an exploratory well does not find proved reserves, the costs of drilling the well are charged to expense and remain within cash flows from investing activities in the Consolidated Statements of Cash Flows. If an exploratory well does find proved reserves, the costs remain capitalized and are included within additions to oil and gas properties and remain within cash flows from investing activities in the Consolidated Statements of Cash Flows. The costs of development wells are capitalized whether proved reserves are added or not. Oil and gas lease acquisition costs are also capitalized. Upon sale or retirement of depreciable or depletable property, the cost and related accumulated DD&A are eliminated from the accounts and the resulting gain or loss is recognized. Other exploration costs, including certain geological and geophysical expenses and delay rentals for oil and gas leases, are charged to expense as incurred. The sale of a partial interest in a proved property is accounted for as a cost recovery and no gain or loss is recognized as long as this treatment does not significantly affect the unit-of-production amortization rate. Maintenance and repairs are charged to expense, and renewals are capitalized to the appropriate property and equipment accounts. Unproved oil and gas property costs are transferred to proved oil and gas properties if the properties are subsequently determined to be productive or are assigned proved reserves. Proceeds from sales of partial interests in unproved leases are accounted for as a recovery of cost without recognizing any gain until all costs are recovered. Unproved oil and gas properties are assessed periodically for impairment based on remaining lease terms, drilling results, reservoir performance, commodity price outlooks, future plans to develop acreage, recent sales prices of comparable properties and other relevant matters. Materials and supplies consist primarily of tubular goods and well equipment to be used in future drilling operations or repair operations and are carried at the lower of cost or net realizable value. The following table sets forth the net capitalized costs and associated accumulated DD&A and non-cash impairments relating to the Company’s oil, natural gas and NGL producing activities: As of December 31, 2020 2019 (in thousands) Proved properties $ 720,582 $ 725,964 Wells and related equipment and facilities 1,923,811 1,805,136 Support equipment and facilities 107,068 99,540 Materials and supplies 12,507 13,489 Total proved oil and gas properties $ 2,763,968 $ 2,644,129 Unproved properties 163,455 265,387 Wells and facilities in progress 49,095 92,406 Total unproved oil and gas properties, excluded from amortization $ 212,550 $ 357,793 Accumulated depreciation, depletion, amortization and impairment (1) (2,270,855) (958,475) Total oil and gas properties, net $ 705,663 $ 2,043,447 (1) The Company recognized non-cash impairment charges associated with proved oil and gas properties during the year ended December 31, 2020 of $1.2 billion. See discussion below. All exploratory wells are evaluated for economic viability within one year of well completion. Exploratory wells that discover potentially economic reserves in areas where a major capital expenditure would be required before production could begin, and where the economic viability of that major capital expenditure depends upon the successful completion of further exploratory work in the area, remain capitalized if the well finds a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. As of December 31, 2020 and 2019, there were no exploratory well costs that had been capitalized for a period greater than one year since the completion of drilling. In addition, the Company had no exploratory wells as of December 31, 2020. The Company reviews proved oil and gas properties for impairment on a quarterly basis or whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected undiscounted future net cash flows of its oil and gas properties using proved and risked probable and possible reserves based on an analysis of quantitative and qualitative factors existing as of the balance sheet date including the Company’s development plans and best estimate of future production, commodity pricing, reserve risking, gathering and transportation deductions, production tax rates, lease operating expenses and future development costs. The Company compares such undiscounted future net cash flows to the carrying amount of the oil and gas properties to determine if the carrying amount is recoverable. If the undiscounted future net cash flows exceed the carrying amount of the oil and gas properties, no impairment is taken. If the carrying amount of a property exceeds the undiscounted future net cash flows, the Company will impair the carrying value to fair value. The factors used to determine fair value may include, but are not limited to, recent sales prices of comparable properties, indications from marketing activities, the present value of future revenues, net of estimated operating and development costs using estimates of reserves, future commodity pricing, future production estimates, anticipated capital expenditures, income taxes and various discount rates commensurate with the risk and current market conditions associated with realizing the projected cash flows. Oil and gas properties are also assessed for impairment once they meet the criteria to be classified as held for sale. Assets held for sale are carried at the lower of carrying cost or fair value less costs to sell. The fair value of the assets is determined using a market approach, based on an estimated selling price, as evidenced by current marketing activities, if possible. If an estimated selling price is not available, the Company utilizes the income valuation technique which involves calculating the present value of future revenues, as discussed above. If the carrying amount of the assets exceeds the fair value less costs to sell, an impairment will result to reduce the value of the properties down to fair value less costs to sell. The estimated fair value of assets held for sale may be materially different from sales proceeds that the Company eventually realizes due to a number of factors including but not limited to the differences in expected future commodity pricing, location and quality differentials, the Company’s relative desire to dispose of such properties based on facts and circumstances impacting the Company’s business at the time the Company agrees to sell, such as the Company’s position in the field subsequent to the sale and plans for future acquisitions or development in core areas. In early 2020, global health care systems and economies began to experience strain from the spread of COVID-19, a highly transmissible and pathogenic coronavirus (the “COVID-19 pandemic”). As the virus spread, global economic activity began to slow resulting in a decline in demand for oil and natural gas. In response, the Organization of Petroleum Exporting Countries (“OPEC”), along with non-OPEC oil-producing countries (collectively known as “OPEC+”), initiated discussions to reduce production to support energy prices. With OPEC+ unable to agree on cuts, energy prices declined sharply during the first half of 2020 and only partially recovered in the second half of 2020. These events led to a decline in the recoverability of the carrying value of the Company’s oil and gas properties. Since the carrying amount of the oil and gas properties was no longer recoverable, the Company impaired the carrying value to fair value. Therefore, the Company recognized non-cash impairment charges during the year ended December 31, 2020 of $1.3 billion, which were included within impairment and abandonment expense in the Consolidated Statements of Operations. The Company contracted with an independent third party to assist the Company in the Company’s determination of fair value associated with the Company’s proved and unproved oil and gas properties. Through the use of the Company’s production and price forecast, the third party used the income valuation technique to assist the Company in the determination of fair value for the proved developed producing (“PDP”) and proved developed non-producing (“PDN”) reserves and a market approach utilizing sales prices of comparable properties to assist the Company in the determination of fair value of the proved undeveloped (“PUD”), probable (“PROB”) and possible (“POSS”) reserves. The Company’s impairment and abandonment expense for the years ended December 31, 2020, 2019 and 2018 is summarized below: Year Ended December 31, 2020 2019 2018 (in thousands) Impairment of proved oil and gas properties (1) $ 1,188,566 $ — $ — Impairment of unproved oil and gas properties (1)(2) 94,209 3,854 — Abandonment expense 2,310 5,788 719 Total impairment and abandonment expense $ 1,285,085 $ 9,642 $ 719 (1) Due to a decline in the recoverability of the carrying value of the Company’s oil and gas properties during the year ended December 31, 2020, the Company recognized non-cash impairment charges of $1.2 billion associated with proved oil and gas properties and $76.3 million associated with unproved oil and gas properties. (2) As a result of the Company’s continuous review of its acreage position and future drilling plans, the Company recognized $17.9 million and $3.9 million of non-cash impairment associated with unproved oil and gas properties during the years ended December 31, 2020 and 2019, respectively, associated with certain leases in which the economics may not support renewal or extending at current contracted values. Under successful efforts accounting, depletion expense is calculated using the units-of-production method on the basis of some reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. Natural gas and NGLs are converted to an oil equivalent, Boe, at the standard rate of six Mcf to one Boe and forty-two gallons to one Boe, respectively. Estimated future dismantlement, restoration and abandonment costs are taken into consideration by this calculation. Accounts Payable and Accrued Liabilities. Accounts payable and accrued liabilities are comprised of the following: As of December 31, 2020 2019 (in thousands) Accrued drilling, completion and facility costs $ 4,390 $ 25,667 Accrued lease operating, gathering, transportation and processing expenses 6,751 8,046 Accrued general and administrative expenses 6,567 6,612 Accrued interest payable 6,494 6,832 Trade payables 2,763 17,488 Operating lease liability 1,979 1,287 Other 2,976 5,706 Total accounts payable and accrued liabilities $ 31,920 $ 71,638 Environmental Liabilities. Environmental expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenue generation are expensed. Environmental liabilities are accrued when environmental assessments and/or clean-ups are probable, and the costs can be reasonably estimated. Under Wyoming law, the Company is exposed to potential obligations for plugging and abandoning wells, and associated reclamation, for assets that were sold to other industry parties in prior years. When such third parties are unable to fulfill their contractual obligations to the Company as provided for in purchase and sale agreements, landowners, as well as the Bureau of Land Management, may demand that the Company perform such activities. As of December 31, 2020, the Company has completed the plugging and abandonment operations identified through such demands. The Company recognized $0.3 million and $1.9 million associated with these obligations in other operating expenses in the Consolidated Statement of Operations for the years ended December 31, 2019 and 2018, respectively. Revenue Recognition. All of the Company’s sales of oil, gas and NGLs are made under contracts with customers, whereby revenues are recognized when the Company satisfies its performance obligations and the customer obtains control of the product. Performance obligations under the Company’s contracts with customers are typically satisfied at a point-in-time through monthly delivery of oil, gas and/or NGLs. Accordingly, at the end of the reporting period, the Company does not have any unsatisfied performance obligations. The Company’s contracts with customers typically include variable consideration based on monthly pricing tied to local indices and volumes delivered in the current month. The nature of the Company’s contracts with customers does not require the Company to constrain variable consideration for accounting purposes. As of December 31, 2020, the Company had open contracts with customers with terms of 1 month to 18 years, as well as evergreen contracts that renew on a periodic basis if not canceled by the Company or the customer. The Company’s contracts with customers typically require payment within one month of delivery. Under the Company’s contracts with customers, natural gas and its components, including NGLs, are either sold to a midstream entity (which processes the natural gas and subsequently sells the resulting residue gas and NGLs) or are sold to a gas or NGL purchaser after being processed by a third party for a fee. Regardless of the contract structure type, the terms of these contracts compensate the Company for the value of the residue gas and NGLs at current market prices for each product. The Company’s oil is sold to multiple oil purchasers at specific delivery points at or near the wellhead. All costs incurred to gather, transport and/or process the Company’s oil, gas and NGLs after control has transferred to the customer are considered components of the consideration received from the customer and thus recorded in oil, gas and NGL production revenues in the Consolidated Statements of Operations. All costs incurred prior to the transfer of control to the customer are included in gathering, transportation and processing expense in the Consolidated Statements of Operations. Gas imbalances from the sale of natural gas are recorded on the basis of gas actually sold by the Company. If the Company’s aggregate sales volumes for a well are greater (or less) than its proportionate share of production from the well, a liability (or receivable) is established to the extent there are insufficient proved reserves available to make-up the overproduced (or underproduced) imbalance. Imbalances were not significant in the periods presented. Derivative Instruments and Hedging Activities. The Company periodically uses derivative financial instruments to achieve a more predictable cash flow from its oil, natural gas and NGL sales by reducing its exposure to price fluctuations. Derivative instruments are recorded at fair market value and are included in the Consolidated Balance Sheets as assets or liabilities. Income Taxes. Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when assets are recovered or liabilities are settled. Deferred income taxes also include tax credits and net operating losses that are available to offset future income taxes. Deferred income taxes are measured by applying currently enacted tax rates. A valuation allowance is recorded if it is more likely than not that all or some portion of the Company’s deferred tax assets will not be realized. The Company regularly assesses the realizability of the deferred tax assets considering all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, planning strategies and results of recent operations. The assumptions about future taxable income require significant judgment to determine if a valuation allowance is required. Changes to the Company’s development plans, changes in market prices for hydrocarbons, changes in operating results, or other factors could change the valuation allowance in future periods, resulting in recognition of tax expense or benefit. The Company accounts for uncertainty in income taxes for tax positions taken or expected to be taken in a tax return. Only tax positions that meet the more-likely-than-not recognition threshold are recognized. The Company does not have any uncertain tax positions recorded as of December 31, 2020 or 2019. Comprehensive Income. The Company has no elements of other comprehensive income, therefore, the Company’s net income (loss) on the Consolidated Statements of Operations represents comprehensive income. Earnings/Loss Per Share. Basic net income (loss) per common share is calculated by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding and other dilutive securities. Potentially dilutive securities for the diluted net income per common share calculations consist of nonvested shares of common stock. The dilutive net income per common share excludes the anti-dilutive effect of 8,159 nonvested shares of common stock for the year ended December 31, 2018. The Company was in a net loss position for the years ended December 31, 2020 and 2019, therefore, all potentially dilutive securities were anti-dilutive. The following table sets forth the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2020 2019 2018 (in thousands, except per share amounts) Net income (loss) $ (1,163,981) $ (134,830) $ 121,220 Basic weighted-average common shares outstanding in period 4,238 4,208 3,766 Add dilutive effects of stock options and nonvested equity shares of common stock — — 19 Diluted weighted-average common shares outstanding in period 4,238 4,208 3,785 Basic net income (loss) per common share $ (274.65) $ (32.04) $ 32.19 Diluted net income (loss) per common share $ (274.65) $ (32.04) $ 32.03 Industry Segment and Geographic Information. The Company operates in one industry segment, which is the development and production of crude oil, natural gas and NGLs, and all of the Company’s operations are conducted in the continental United States. Consequently, the Company currently reports as a single industry segment. New Accounting Pronouncements. In April 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In response to the cessation of the London Interbank Offered Rate (“LIBOR”) by December 31, 2022, the FASB issued this update to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other affected transactions. The Company currently has only one contract, its Credit Facility, that may be impacted by this ASU. Modifications of debt contracts should be accounted for by prospectively adjusting the effective interest rate. This update has an effective period of March 12, 2020 through December 31, 2022 and allows for elections to be made by the Company in terms of how the ASU is adopted. Once elected for a Topic or Industry Subtopic, the update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The Company does not believe the standard will have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The objective of this update is to improve the effectiveness of fair value measurement disclosures. ASU 2018-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The standard was adopted on January 1, 2020 and did not have a material impact on the Company’s disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments, Credit Losses . The objective of this update is to amend current impairment guidance by adding an impairment model (known as the current expected credit loss model (“CECL”)) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The standard was adopted on January 1, 2020 and did not have a material impact on the Company’s disclosures and financial statements. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Supplemental cash flow information is as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Cash paid for interest $ 55,210 $ 55,470 $ 50,063 Cash paid for income taxes — — — Cash paid for amounts included in the measurements of lease liabilities: Cash paid for operating leases 2,235 1,315 Non-cash operating activities: Right-of-use assets obtained in exchange for lease obligations Operating leases (1)(2) 957 14,999 Supplemental disclosures of non-cash investing and financing activities: Accrued liabilities - oil and gas properties 5,435 28,130 98,346 Change in asset retirement obligations, net of disposals (652) (5,538) 10,778 Retirement of treasury stock (669) (1,729) (1,535) Properties exchanged in non-cash transactions 4,753 4,561 — Issuance of common stock for 2018 Merger — — 484,000 (1) Excludes the reclassifications of lease incentives and deferred rent balances. (2) The year ended December 31, 2019 included $14.0 million of right-of-use assets established with the adoption of ASC 842, Leases , effective January 1, 2019. |
Mergers, Acquisitions, Exchange
Mergers, Acquisitions, Exchanges and Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions, Exchanges and Divestitures | Mergers, Acquisitions, Exchanges and Divestitures Pending Merger with Bonanza Creek Energy, Inc. On November 9, 2020, we entered into a Merger Agreement with Bonanza Creek pursuant to which HighPoint’s debt will be restructured and HighPoint will merge with a wholly owned subsidiary of Bonanza Creek, with HighPoint continuing its existence as the surviving company following the merger and continuing as a wholly owned subsidiary of Bonanza Creek. The Merger is expected to close in the first quarter of 2021 under the Exchange Offer or in the first or second quarter of 2021 under the Prepackaged Plan. See Note 1 for additional information. 2019 Divestiture On May 1, 2019, the Company completed the sale of certain non-core assets, primarily low producing or shut-in vertical wells, in the DJ Basin in exchange for the relief of $7.7 million of plugging liabilities associated with these properties. The sale resulted in a loss of $2.3 million, which was recognized in loss on sale of properties in the Company’s Consolidated Statements of Operations. 2018 Merger with Fifth Creek Energy Operating Company, LLC On March 19, 2018, the Company completed the 2018 Merger with Fifth Creek. The 2018 Merger was effected through the issuance of 2 million shares (100 million shares pre-split) of the Company’s common stock, with a fair value of $484.0 million on the date of closing, and the repayment of $53.9 million of Fifth Creek debt. In connection with the 2018 Merger, the Company incurred costs of $4.5 million and $8.0 million of severance, consulting, advisory, legal and other merger-related fees, all of which were expensed and included in merger transaction expense in the Company’s Consolidated Statement of Operations for the years ended December 31, 2019 and 2018, respectively. Purchase Price Allocation The transaction was accounted for as a business combination, using the acquisition method, with the Company being the acquirer for accounting purposes. The following table represents the allocation of the total purchase price to the identifiable assets acquired and the liabilities assumed based on the estimated fair values at the acquisition date. The following table sets forth the Company’s purchase price allocation: March 19, 2018 (in thousands) Purchase Price: Fair value of common stock issued $ 484,000 Plus: Repayment of Fifth Creek debt 53,900 Total purchase price 537,900 Plus Liabilities Assumed: Accounts payable and accrued liabilities 25,782 Current unfavorable contract 2,651 Other current liabilities 13,797 Asset retirement obligations 7,361 Long-term deferred tax liability 137,707 Long-term unfavorable contract 4,449 Other noncurrent liabilities 2,354 Total purchase price plus liabilities assumed $ 732,001 Fair Value of Assets Acquired: Cash 543 Accounts receivable 7,831 Oil and Gas Properties: Proved oil and gas properties 105,702 Unproved oil and gas properties 609,568 Asset retirement obligations 7,361 Furniture, equipment and other 931 Other noncurrent assets 65 Total asset value $ 732,001 The fair value measurements of oil and natural gas properties and asset retirement obligations are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair values of proved oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation of oil and natural gas properties included estimates of: (i) recoverable reserves; (ii) production rates; (iii) future operating and development costs; (iv) future commodity prices; and (v) a market-based weighted average cost of capital rate. The fair value of unproved properties was determined using a market approach utilizing recent transactions of a similar nature in the same basin. These inputs required significant judgments and estimates by management at the time of the valuation and are the most sensitive to possible future changes. The results of operations attributable to the merged companies are included in the Consolidated Statements of Operations beginning on March 19, 2018. The Company generated revenues of approximately $59.4 million from the Fifth Creek assets during the year ended December 31, 2018 and expenses of approximately $44.2 million during the year ended December 31, 2018. Pro Forma Financial Information The following pro forma condensed combined financial information was derived from the historical financial statements of the Company and Fifth Creek and gives effect to the acquisition as if it had occurred on January 1, 2017. The below information reflects pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including (i) the repayment of Fifth Creek’s debt, (ii) depletion of Fifth Creek’s fair-valued proved crude oil and natural gas properties, and (iii) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings for the years ended December 31, 2019 and 2018 were adjusted to exclude merger-related costs of $4.5 million and $8.0 million incurred by the Company for the years ended December 31, 2019 and 2018, respectively, and $4.0 million for the year ended December 31, 2018 incurred by Fifth Creek. The pro forma results of operations do not include any cost savings or other synergies that may have occurred as a result of the acquisition or any estimated costs that have been incurred by the Company to integrate the Fifth Creek assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the acquisition taken place on January 1, 2017; furthermore, the financial information is not intended to be a projection of future results. Year Ended December 31, 2019 2018 (in thousands, except per share data) Revenues $ 452,659 $ 468,949 Net Income (Loss) (131,407) 125,281 Net Income (Loss) per Common Share, Basic (31.00) 30.00 Net Income (Loss) per Common Share, Diluted (31.00) 30.00 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s outstanding debt is summarized below: As of December 31, 2020 As of December 31, 2019 Maturity Date Principal Debt Carrying Principal Debt Carrying (in thousands) Credit Facility (1) September 14, 2023 $ 140,000 $ — $ 140,000 $ 140,000 $ — $ 140,000 7.0% Senior Notes October 15, 2022 350,000 (1,535) 348,465 350,000 (2,372) 347,628 8.75% Senior Notes June 15, 2025 275,000 (3,031) 271,969 275,000 (3,717) 271,283 Total Long-Term Debt $ 765,000 $ (4,566) $ 760,434 $ 765,000 $ (6,089) $ 758,911 (1) The maturity date of the Credit Facility could be accelerated to July 16, 2022. See discussion below. Credit Facility On May 21, 2020, as part of a regular semi-annual redetermination, the Company’s Credit Facility was amended. Among other things, the amendment decreased the aggregate elected commitment amount and the borrowing base from $500.0 million to $300.0 million, increased the applicable margins for interest and commitment fee rates and added provisions requiring the availability under the Credit Facility to be at least $50.0 million and the Company’s weekly cash balance (subject to certain exceptions) to not exceed $35.0 million. On November 2, 2020, as part of another regular semi-annual redetermination, the Credit Facility was further amended. Among other things, this amendment reduced the Company’s aggregate elected commitment amount to $185.0 million, reduced the borrowing base to $200.0 million and removed the provisions requiring availability under the Credit Facility to be at least $50.0 million. In addition, provisions were amended to prohibit the Company from incurring any additional indebtedness. The Company had $140.0 million outstanding as of both December 31, 2020 and December 31, 2019. The Company’s available borrowing capacity under the Credit Facility as of December 31, 2020 was $24.0 million, after taking into account $21.0 million of outstanding irrevocable letters of credit, which were issued as credit support for future payments under contractual obligations. While the stated maturity date in the Credit Facility is September 14, 2023, the maturity date is accelerated if the Company has more than $100.0 million of “Permitted Debt” or “Permitted Refinancing Debt” (as those terms are defined in the Credit Facility) that matures prior to December 14, 2023. If that is the case, the accelerated maturity date is 91 days prior to the earliest maturity of such Permitted Debt or Permitted Refinancing Debt. Because the Company’s 7.0% Senior Notes will mature on October 15, 2022, the aggregate amount of those notes exceeds $100.0 million and the notes represent “Permitted Debt”, the maturity date specified in the Credit Facility is accelerated to the date that is 91 days prior to the maturity date of those notes, or July 16, 2022. Prior to May 21, 2020 interest rates were either adjusted LIBOR plus applicable margins of 1.5% to 2.5% or an alternate base rate plus applicable margins of 0.5% to 1.5%, and the unused commitment fee was between 0.375% and 0.5%. As of May 21, 2020, interest rates are either adjusted LIBOR plus applicable margins of 2.5% to 3.5% or an alternate base rate plus applicable margins of 1.5% to 2.5%, and the unused commitment fee is 0.5%. The applicable margins and the unused commitment fee rate are determined based on borrowing base utilization. The weighted average annual interest rates incurred on the Credit Facility were 3.2% and 4.0% for the years ended December 31, 2020 and 2019, respectively. The borrowing base under the Credit Facility is determined at the discretion of the lenders and is subject to regular redetermination around April and October of each year, as well as following any property sales. The lenders can also request an interim redetermination during each six month period. If the borrowing base is reduced below the then-outstanding amount under the Credit Facility, we will be required to repay the excess of the outstanding amount over the borrowing base over a period of four months. The borrowing base is computed based on proved oil, natural gas and NGL reserves that have been mortgaged to the lenders, hedge positions and estimated future cash flows from the reserves calculated using future commodity pricing provided by the lenders, as well as any other outstanding debt. The Company has financial covenants associated with its Credit Facility that are measured each quarter. As discussed in the “ Going Concern ” section in Note 2, based on the Company’s financial projections for the twelve month period subsequent to the date of this filing, it is probable the Company will breach a financial covenant under the Company’s Credit Facility in the third quarter of 2021. Violation of any covenant under the Credit Facility provides the lenders with the option to accelerate the maturity of the Credit Facility, which carries a balance of $140.0 million as of December 31, 2020. This would, in turn, result in cross-default under the indentures to the Company’s senior notes, accelerating the maturity of the senior notes, which have a principal balance outstanding of $625.0 million as of December 31, 2020. The Company does not have sufficient cash on hand or available liquidity that can be utilized to repay the outstanding debt in the event of default. In addition, the Company’s independent auditor has included an explanatory paragraph regarding the Company’s ability to continue as a “going concern” (“going concern opinion”) in its report on these consolidated financial statements, which would accelerate a default under the Company’s Credit Facility to the filing date of these financial statements. However, the Company obtained a waiver from its lenders removing the default associated with this going concern opinion. 7.0% Senior Notes Due 2022 The Company’s $350.0 million aggregate principal amount 7.0% Senior Notes mature on October 15, 2022 at par, unless earlier redeemed or purchased by the Company. Interest is payable in arrears semi-annually on April 15 and October 15 of each year. The 7.0% Senior Notes are senior unsecured obligations and rank equal in right of payment with all of the Company’s other existing and future senior unsecured indebtedness, including the 8.75% Senior Notes. The 7.0% Senior Notes are redeemable at the Company’s option at a redemption price of 100% of the principal amount. 8.75% Senior Notes due 2025 The Company’s $275.0 million in aggregate principal amount 8.75% Senior Notes mature on June 15, 2025 at par, unless earlier redeemed or purchased by the Company. Interest is payable in arrears semi-annually on June 15 and December 15 of each year. The 8.75% Senior Notes are senior unsecured obligations and rank equal in right of payment with all of the Company’s other existing and future senior unsecured indebtedness, including the 7.0% Senior Notes. The 8.75% Senior Notes are redeemable at the Company’s option at redemption prices of 106.563%, 104.375%, 102.188% and 100.000% of the principal amount on or after June 15, 2020, 2021, 2022 and 2023, respectively. The issuer of the 7.0% Senior Notes and the 8.75% Senior Notes is HighPoint Operating Corporation (f/k/a Bill Barrett), or the Subsidiary Issuer. Pursuant to supplemental indentures entered into in connection with the 2018 Merger, HighPoint Resources Corporation, or the Parent Guarantor, became a guarantor of the 7.0% Senior Notes and the 8.75% Senior Notes in March 2018. In addition, Fifth Pocket Production, LLC, or the Subsidiary Guarantor, became a subsidiary of the Subsidiary Issuer on August 1, 2019 and also guarantees the 7.0% Senior Notes and the 8.75% Senior Notes. The Parent Guarantor and the Subsidiary Guarantor, on a joint and several basis, fully and unconditionally guarantee the debt securities of the Subsidiary Issuer. The Company has no additional subsidiaries or non-guarantor subsidiaries. All covenants in the indentures governing the notes limit the activities of the Subsidiary Issuer and the Subsidiary Guarantor, including limitations on the ability to pay dividends, incur additional indebtedness, make restricted payments, create liens, sell assets or make loans to the Parent Guarantor, but in most cases the covenants in the indentures are not applicable to the Parent Guarantor. HighPoint Operating Corporation is currently in compliance with all covenants and has complied with all covenants since issuance. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations A reconciliation of the Company’s asset retirement obligations for the year ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Beginning of period $ 25,709 $ 29,655 $ 17,586 Liabilities incurred (1) 519 2,863 10,649 Liabilities settled (1,501) (1,682) (1,630) Disposition of properties (143) (7,668) (351) Accretion expense 1,788 1,592 1,291 Revisions to estimate 473 949 2,110 End of period $ 26,845 $ 25,709 $ 29,655 Less: Current asset retirement obligations 2,020 2,218 2,325 Long-term asset retirement obligations $ 24,825 $ 23,491 $ 27,330 (1) The year ended December 31, 2018 includes $7.4 million associated with properties acquired in the 2018 Merger. See Note 4 for additional information regarding the 2018 Merger. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. These inputs can be readily observable, market corroborated or generally unobservable. A fair value hierarchy was established that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Quoted prices are available in active markets for similar assets or liabilities and in non-active markets for identical or similar instruments. Model-derived valuations have inputs that are observable or whose significant value drivers are observable. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 – Pricing inputs include significant inputs that are generally less observable than objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At each balance sheet date, the Company performs an analysis of all applicable instruments and includes in Level 3 all of those whose fair value is based on significant unobservable inputs. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are measured at fair value on a recurring basis in the Company’s consolidated balance sheet. The following methods and assumptions were used to estimate the fair values: Cash equivalents – The highly liquid cash equivalents are recorded at fair value. Carrying value approximates fair value, which represents a Level 1 input. Deferred compensation plan – The Company maintains a non-qualified deferred compensation plan which allows certain management employees to defer receipt of a portion of their compensation. The Company maintains assets for the deferred compensation plan in a rabbi trust. The assets of the rabbi trust are invested in publicly traded mutual funds and are recorded in other current and other long-term assets in the Consolidated Balance Sheets. The deferred compensation plan financial assets are reported at fair value based on active market quotes, which represent Level 1 inputs. Commodity derivatives – The fair value of crude oil, natural gas and NGL swaps and costless collars are valued based on an income approach using various assumptions, such as quoted forward prices for commodities and time value factors. These assumptions are observable in the marketplace throughout the full term of the contract, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace, and are, therefore, designated as Level 2 inputs. The Company utilizes its counterparties’ valuations to assess the reasonableness of its own valuation. The Company currently utilizes an independent third party to perform the valuation. The commodity derivatives have been adjusted for non-performance risk. For applicable financial assets carried at fair value, the credit standing of the counterparties is analyzed and factored into the fair value measurement of those assets. In addition, the fair value measurement of a liability has been adjusted to reflect the nonperformance risk of the Company. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were measured at fair value on a recurring basis in the Consolidated Balance Sheets. Level 1 Level 2 Level 3 Total (in thousands) As of December 31, 2020 Financial Assets Cash equivalents $ — $ — $ — $ — Deferred compensation plan 910 — — 910 Commodity derivatives — 19,542 — 19,542 Financial Liabilities Commodity derivatives — 5,366 — 5,366 As of December 31, 2019 Financial Assets Cash equivalents — — — — Deferred compensation plan 2,033 — — 2,033 Commodity derivatives — 8,890 — 8,890 Financial Liabilities Commodity derivatives — 10,056 — 10,056 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis in the Company’s consolidated balance sheets. The following methods and assumptions were used to estimate the fair values: Oil and gas properties – Proved oil and gas properties are evaluated for impairment on a quarterly basis or whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. Whenever the Company concludes the carrying value may not be recoverable, the Company estimates the expected undiscounted future net cash flows of its oil and gas properties using proved and risked probable and possible reserves based on its development plans and best estimate of future production, commodity pricing, reserve risking, gathering and transportation deductions, production tax rates, lease operating expenses and future development costs. The Company compares such undiscounted future net cash flows to the carrying amount of the oil and gas properties to determine if the carrying amount is recoverable. If the undiscounted future net cash flows exceed the carrying amount of the oil and gas properties, no impairment is taken. If the carrying amount of a property exceeds the undiscounted future net cash flows, the Company will impair the carrying value to fair value. If an impairment is necessary, the fair value is estimated by using either a market approach based on recent sales prices of comparable properties and/or indications from marketing activities or by using the income valuation technique, which involves calculating the present value of future net revenues. The present value, net of estimated operating and development costs, is calculated using estimates of reserves, future commodity pricing, future production estimates, anticipated capital expenditures and various discount rates commensurate with the risk and current market conditions associated with realizing the projected cash flows, predominantly all of which are designated as Level 3 inputs within the fair value hierarchy. During the three months ended March 31, 2020, the Company’s proved oil and gas properties with a carrying value of $1.7 billion were reduced to a fair value of $0.5 billion, resulting in an impairment of $1.2 billion which was included in impairment and abandonment expense on the Consolidated Statement of Operations. The Company contracted with an independent third party to assist with the Company’s determination of fair value associated with its proved oil and gas properties. Through the use of the Company’s production and price forecast, the third party used the income valuation technique to assist the Company in the determination of fair value for the PDP and PDN reserves and a market approach utilizing sales prices of comparable properties to assist the Company in the determination of fair value of the PUD reserves. The following table includes quantitative information about the significant unobservable inputs, categorized within Level 3 of the fair value hierarchy, that were used in the fair value measurement. Level 3 Unobservable Inputs As of March 31, 2020 Price (1) Oil (per Bbl) $29 to $60 Gas (per MMbtu) $2.03 to $2.52 NGL (percentage of oil price) 24% to 31% Reserve adjustment factors PDP 100% PDN 95% Discount rate 11% (1) These prices were adjusted for location and quality differentials. Unproved oil and gas properties are assessed periodically for impairment based on remaining lease terms, drilling results, reservoir performance, commodity price outlooks, future plans to develop acreage, recent sales prices of comparable properties and other relevant matters. During the three months ended March 31, 2020, due to substantial commodity price declines, certain unproved oil and gas properties with a carrying value of $256.0 million were reduced to a fair value of $179.7 million, resulting in an impairment of $76.3 million which was included in impairment and abandonment expense on the Consolidated Statement of Operations. The Company contracted with an independent third party to assist the Company in the Company’s determination of fair value of the Company’s unproved oil and gas properties. The third party used the market approach utilizing sales prices of comparable properties to determine the fair value of the unproved oil and gas properties. Aside from the three months ended March 31, 2020, no properties were measured at fair value during any other quarters during the years ended December 31, 2020 and 2019. Purchase price allocation – The 2018 Merger was accounted for as a business combination, using the acquisition method. The allocation of the total purchase price to the identifiable assets acquired and the liabilities assumed was based on the fair values at the acquisition date. See Note 4 for additional information regarding the fair value of the 2018 Merger. Additional Fair Value Disclosures Long-term Debt – Long-term debt is not presented at fair value on the Consolidated Balance Sheets, as it is recorded at carrying value, net of unamortized debt issuance costs. The estimated fair value of the 7.0% Senior Notes was $141.2 million and $335.0 million as of December 31, 2020 and 2019, respectively. The estimated fair value of the 8.75% Senior Notes was $121.0 million and $251.2 million as of December 31, 2020 and 2019, respectively. The fair values of the Company’s fixed rate Senior Notes are based on active market quotes, which represent Level 1 inputs. There is no active, public market for the Credit Facility. The recorded value of the Credit Facility approximates its fair value due to its floating rate structure based on the LIBOR spread, secured interest, and the Company’s borrowing base utilization. The Credit Facility had a balance of $140.0 million as of both December 31, 2020 and December 31, 2019. The fair value measurements for the Credit Facility represent Level 2 inputs. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company uses financial derivative instruments as part of its price risk management program to achieve a more predictable cash flow from its production revenues by reducing its exposure to commodity price fluctuations. The Company has entered into financial commodity swap, swaption and cashless collar contracts related to the sale of a portion of the Company’s production. A swap allows the Company to receive a fixed price for its production and pay a variable market price to the counterparty. A swaption allows the counterparty, on a specific date, to extend an existing fixed-price swap for a certain period of time or to increase the notional volumes of an existing fixed-price swap. A cashless collar establishes a floor and a ceiling price, which allows the Company to receive the difference between the floor price and the variable market price if the variable market price is below the floor price. However, the Company will pay the difference between the ceiling price and the variable market price if the variable market price is above the ceiling. No amounts are paid or received if the variable market price is between the floor and ceiling prices. The Company has also entered into crude oil swaps to fix the differential in pricing between the NYMEX WTI calendar month average and the physical crude delivery month price (“oil roll swaps”). The Company does not enter into derivative instruments for speculative or trading purposes. In addition to financial contracts, the Company may at times be party to various physical commodity contracts for the sale of oil, natural gas and NGLs that have varying terms and pricing provisions. These physical commodity contracts qualify for the normal purchase and normal sale exception and, therefore, are not subject to hedge or mark-to-market accounting. The financial impact of physical commodity contracts is included in oil, natural gas and NGL production revenues at the time of settlement. All derivative instruments, other than those that meet the normal purchase and normal sale exception, as mentioned above, are recorded at fair value and included on the Consolidated Balance Sheets as assets or liabilities. The following table summarizes the location, as well as the gross and net fair value amounts, of all derivative instruments presented on the Consolidated Balance Sheets as of the dates indicated. As of December 31, 2020 Balance Sheet Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative assets $ 19,410 $ (933) (1) $ 18,477 Other noncurrent assets 132 (132) (1) — Total derivative assets $ 19,542 $ (1,065) $ 18,477 Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative liabilities $ (2,347) $ 933 (1) $ (1,414) Other noncurrent liabilities (3,019) 132 (1) (2,887) Total derivative liabilities $ (5,366) $ 1,065 $ (4,301) As of December 31, 2019 Balance Sheet Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative assets $ 8,477 $ (4,561) (1) $ 3,916 Other noncurrent assets 413 (413) (1) — Total derivative assets $ 8,890 $ (4,974) $ 3,916 Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative liabilities $ (8,972) $ 4,561 (1) $ (4,411) Other noncurrent liabilities (1,084) 413 (1) (671) Total derivative liabilities $ (10,056) $ 4,974 $ (5,082) (1) Asset and liability balances with the same counterparty are presented as a net asset or liability on the Consolidated Balance Sheets. As of December 31, 2020, the Company had swap and swaption contracts in place to hedge the following volumes for the periods indicated: For the Year 2021 For the Year 2022 Derivative Volumes Weighted Average Price Derivative Volumes Weighted Average Price Swaps Oil (Bbls) 3,098,000 $ 54.30 — $ — Natural Gas (MMbtu) 5,790,000 2.13 3,650,000 2.13 Oil Roll Swaps (1) Oil (Bbls) 973,500 (0.01) — — Swaptions (2) Oil (Bbls) — — 1,092,000 55.08 (1) These contracts establish a fixed amount for the differential between the NYMEX WTI calendar month average and the physical crude oil delivery month price. The weighted average differential represents the amount of reduction to NYMEX WTI prices for the notional volumes covered by the swap contracts. (2) These swaptions may become effective fixed-price swaps at the counterparty’s election on December 31, 2021. As of December 31, 2020, the Company had cashless collars in place to hedge the following volumes for the periods indicated: For the Year 2021 Derivative Volumes Weighted Average Floor Weighted Average Ceiling Cashless Collars Natural Gas (MMbtu) 1,800,000 $ 2.00 $ 4.25 The Company’s derivative financial instruments are generally executed with major financial or commodities trading institutions. The instruments expose the Company to market and credit risks and may, at times, be concentrated with certain counterparties or groups of counterparties. The Company had derivatives in place with seven different counterparties as of December 31, 2020. Although notional amounts are used to express the volume of these contracts, the amounts potentially subject to credit risk in the event of non-performance by the counterparties are substantially smaller. The creditworthiness of counterparties is subject to continual review by management, and the Company believes all of these institutions currently are acceptable credit risks. Full performance is anticipated, and the Company has no past due receivables from any of its counterparties. It is the Company’s policy to enter into derivative contracts with counterparties that are lenders in the Credit Facility, affiliates of lenders in the Credit Facility or potential lenders in the Credit Facility. The Company’s derivative contracts are documented using an industry standard contract known as a Schedule to the Master Agreement and International Swaps and Derivative Association, Inc. (“ISDA”) Master Agreement or other contracts. Typical terms for these contracts include credit support requirements, cross default provisions, termination events and set-off provisions. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the properties securing the Credit Facility. The Company has set-off provisions in its derivative contracts with lenders under its Credit Facility which, in the event of a counterparty default, allow the Company to set-off amounts owed to the defaulting counterparty under the Amended Credit Facility or other obligations against monies owed the Company under derivative contracts. Where the counterparty is not a lender under the Company’s Credit Facility, the Company may not be able to set-off amounts owed by the Company under the Credit Facility, even if such counterparty is an affiliate of a lender under such facility. The Company does not have any derivative balances that are offset by cash collateral. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The (expense) benefit for income taxes consisted of the following for the periods indicated: Year Ended December 31, 2020 2019 2018 (in thousands) Current: Federal $ — $ — $ — State — — — Deferred: Federal 83,755 35,806 (1,777) State 12,107 6,310 (50) Total $ 95,862 $ 42,116 $ (1,827) Income tax (expense) benefit differed from the amounts computed by applying the U.S. federal income tax rate of 21% to pretax income for the years ended December 31, 2020 and 2019 and 2018 from continuing operations as a result of the following: Year Ended December 31, 2020 2019 2018 (in thousands) Income tax (expense) benefit at the federal statutory rate $ 264,567 $ 37,159 $ (25,840) State income tax (expense) benefit, net of federal tax effect 43,956 6,002 (5,144) Nondeductible equity-based compensation (2,531) (1,895) (3,101) Nondeductible costs in connection with 2018 Merger — — (2,545) Other permanent items (449) (157) (418) Change in valuation allowance (209,885) 628 36,321 Change in valuation allowance - Section 382 — — 64,994 Change in apportioned state tax rates 204 275 (723) Change in ownership - Section 382 — — (64,994) Other, net — 104 (377) Income tax (expense) benefit $ 95,862 $ 42,116 $ (1,827) On the date of the 2018 Merger, the Fifth Creek assets were acquired in a nontaxable transaction pursuant to Section 351 of the Internal Revenue Code. Accordingly, a deferred tax liability of $137.7 million was recorded to reflect the difference between the fair value recorded and the income tax basis of the assets acquired and liabilities assumed. The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below: As of December 31, 2020 2019 (in thousands) Long-term: Deferred tax assets: Net operating loss carryforward $ 136,373 $ 112,409 Oil and gas properties 79,100 — Stock-based compensation 736 1,368 Financing obligation 1,921 2,163 Accrued expenses — 38 Derivative instruments — 287 Other assets 6,302 148 Capital loss carryforward 869 890 Less: Valuation allowance (222,473) (12,587) Total long-term deferred tax assets 2,828 104,716 Deferred tax liabilities: Oil and gas properties — (201,396) Long-term derivative instruments (3,477) — Prepaid expenses (811) (462) Deferred compensation (96) (276) Total long-term deferred tax assets (liabilities) (4,384) (202,134) Net long-term deferred tax assets (liabilities) $ (1,556) $ (97,418) In connection with the 2018 Merger, the Company had a greater than 50% ownership change pursuant to Section 382 of the Internal Revenue Code. As a result of the ownership change, the Company’s ability to use pre-change net operating losses (“NOLs”) and credits against post-change taxable income is limited to an annual amount plus any built-in gains recognized within five years of the ownership change. The Company’s annual limitation amount is approximately $11.7 million and the net unrealized built-in gain is projected to be $176.9 million. The Company has reduced its federal and state NOLs by $274.7 million and $13.1 million, respectively, and eliminated its state tax credits by $8.2 million to reflect the expected impact of the Section 382 limitation. Deferred tax assets and the corresponding valuation allowance have been reduced by $65.0 million for the expected tax effect of the Section 382 limitation. As of December 31, 2020, the Company projected approximately $554.7 million and $553.3 million of federal and state NOLs, respectively. Federal NOLs of $98.9 million and state NOLs of $97.0 million have no expiration. The remaining federal and state NOLs begin to expire in 2025 and 2029, respectively. On December 22, 2017, Congress signed into law the Tax Cut and Jobs Act of 2017 (“TCJA”). The TCJA includes significant changes to the U.S. corporate tax systems including a rate reduction from 35% to 21% beginning in January of 2018. Accordingly, the 21% federal tax rate is utilized in computing the Company’s annualized effective tax rate. Other provisions of TCJA include the elimination of the corporate alternative minimum tax (“AMT”), the acceleration of depreciation for US tax purposes, limitations on deductibility of interest expense, expanded Section 162(m) limitations on the deductibility of officer’s compensation, the elimination of net operation loss carrybacks and indefinite carryforwards on losses generated after 2017, subject to restrictions on their utilization. In assessing the ability to realize the benefit of the deferred tax assets, management must consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers all available evidence (both positive and negative) in determining whether a valuation allowance is required. Such evidence includes the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment, and judgment is required in considering the relative weight of negative and positive evidence. For the year ended December 31, 2020, the Company determined that there would not be sufficient future taxable income to use existing deferred tax assets and has recorded a valuation allowance against the existing deferred tax assets and a deferred tax liability of $1.6 million for projected taxable income in future periods beyond 2037 in which only 80% of taxable income can be offset by net operating losses. The Company continues to monitor facts and circumstances in the reassessment of the likelihood that operating loss carryforwards, credits and other deferred tax assets will be utilized prior to their expiration. The Company accounts for uncertainty in income taxes for tax positions taken or expected to be taken in a tax return. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits. The Company did not have any additions, reductions or settlements of unrecognized tax benefits. In 2020, the Company generated no uncertain tax positions. The Company’s policy is to classify accrued penalties and interest related to unrecognized tax benefits in the Company’s income tax provision. As of December 31, 2020, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the current year. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common and Preferred Stock. The Company’s authorized capital structure consists of 75 million shares of preferred stock, par value $0.001 per share, and 8 million shares of common stock, par value $0.001 per share. There are no issued and outstanding shares of preferred stock. In March 2018, the Company completed the 2018 Merger with Fifth Creek. Pursuant to the 2018 Merger Agreement, each share of Bill Barrett common stock, par value $0.001 per share (the “BBG Common Stock”), issued and outstanding immediately prior to the closing of the 2018 Merger was converted into one share of the Company’s common stock and all outstanding equity interests in Fifth Creek, in the aggregate, were converted into 2 million shares (100 million shares on a pre-split basis) of the Company’s common stock. In addition, all options to purchase shares of BBG Common Stock and all common stock awards and performance-based cash unit awards relating to BBG Common Stock that were outstanding immediately prior to the closing of the 2018 Merger were generally converted into corresponding awards relating to shares of the Company’s common stock on the same terms and conditions (excluding performance conditions) as applied prior to the closing of the 2018 Merger (with 2016 and 2017 Program performance-based cash units converting into time-based common stock awards based on actual performance for the 2016 program and target performance for the 2017 program through the closing date). See Note 11 for additional information on equity compensation. In March 2018, the Company terminated the Equity Distribution Agreement, dated as of June 2015, by and between the Company and Goldman, Sachs and Co., which established an “at-the-market” program for sales of common stock from time to time. The agreement was terminable at will upon written notification by the Company with no penalty. No shares had been sold pursuant to this Agreement. Treasury Stock. The Company may occasionally acquire treasury stock, which is recorded at cost, in connection with the vesting and exercise of stock-based awards or for other reasons. As of December 31, 2020, all treasury stock held by the Company was retired. The following table reflects the activity in the Company’s common and treasury stock for the periods indicated: Year Ended December 31, 2020 2019 2018 Common Stock Outstanding: Shares at beginning of period 4,273,391 4,249,543 2,207,272 Shares issued for directors' fees 12,770 3,164 3,751 Shares issued for nonvested shares of common stock 40,572 36,954 46,642 Shares issued for 2018 Merger, common stock — — 2,000,000 Shares retired or forfeited (21,658) (16,270) (8,122) Shares at end of period 4,305,075 4,273,391 4,249,543 Treasury Stock: Shares at beginning of period — — — Treasury stock acquired 14,294 14,380 5,716 Treasury stock retired (14,294) (14,380) (5,716) Shares at end of period — — — |
Equity Incentive Compensation P
Equity Incentive Compensation Plans and Other Long-term Incentive Programs | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Compensation Plans and Other Long-term Incentive Programs | Equity Incentive Compensation Plans and Other Long-term Incentive Programs The Company maintains various stock-based compensation plans and other employee benefit plans as discussed below. Stock-based compensation is measured at the grant date based on the value of the awards, and the fair value is recognized on a straight-line basis over the requisite service period (usually the vesting period). Nonvested shares of common stock generally vest ratably over a three one three The following table presents the long-term equity and cash incentive compensation related to awards for the periods indicated: Year Ended December 31, 2020 2019 2018 (in thousands) Nonvested common stock (1) $ 4,106 $ 6,601 $ 6,036 Nonvested common stock units (1) 543 1,177 1,138 Nonvested performance cash units (2)(3) (1,162) 844 52 Total $ 3,487 $ 8,622 $ 7,226 (1) Unrecognized compensation cost as of December 31, 2020 was $3.1 million related to grants of nonvested shares of common stock and common stock units that are expected to be recognized over a weighted-average period of 1.5 years. (2) The nonvested performance-based cash units are accounted for as liability awards with $0.0 million, $1.2 million and $0.3 million in other noncurrent liabilities as of December 31, 2020, 2019 and 2018, respectively, in the Consolidated Balance Sheets. (3) Liability awards are fair valued at each reporting date. The expense for the period will increase or decrease based on updated fair values of these awards at each reporting date. As of December 31, 2020, all nonvested performance cash units were cancelled, resulting in a reversal of expense and liability balances. Nonvested Equity and Cash Awards. In May 2012, the Company’s stockholders approved and adopted its 2012 Equity Incentive Plan (the “2012 Incentive Plan”). The purpose of the 2012 Incentive Plan is to enhance the Company’s ability to attract and retain officers, employees and directors and to provide such persons with an interest in the Company aligned with the interests of stockholders. The 2012 Incentive Plan provides for the grant of awards including performance units, performance shares, share awards, share units, restricted stock, cash incentive, stock appreciation rights or SARS, and stock options (including incentive stock options and non-qualified stock options). In March 2020, the Company’s stockholders approved an amendment to the 2012 Incentive Plan (the “Amendment”). Pursuant to the Amendment, the Company is authorized to issue 233,455 shares, less any shares issued under the 2012 Incentive Plan on or after the Amendment adoption date, and plus any shares that again become available for grant. Shares underlying grants that expire without being exercised or are forfeited are available for grant under the 2012 Incentive Plan; however, shares withheld by the Company to satisfy any tax withholding obligation will not be available for future issuance. As of December 31, 2020, 232,311 shares remain available for grant under the 2012 Incentive Plan. Historically, the Company has granted share-based option awards, however, the Company has not granted these awards since 2012. As of December 31, 2019, there are no outstanding share-based option awards, and there have been no stock options exercised for the years ended December 31, 2019 and 2018. The Company grants service-based shares of common stock to employees, which generally vest ratably over a three Year Ended December 31, 2020 2019 2018 Nonvested Common Stock Awards Shares Weighted Shares Weighted Shares Weighted Outstanding at January 1, 59,369 $ 190.74 58,243 $ 263.50 27,897 $ 348.48 Granted 40,572 57.00 36,954 131.95 23,716 273.50 Modified (1) — — — — 22,926 242.00 Vested (2) (33,805) 212.12 (33,939) 249.50 (13,890) 412.00 Forfeited (7,468) 76.15 (1,889) 245.50 (2,406) 296.50 Outstanding at December 31, 58,668 100.32 59,369 190.74 58,243 263.50 (1) Due to the closing of the 2018 Merger, the 2016 and 2017 Performance Cash Programs were converted from nonvested performance-based cash units to nonvested common stock awards, resulting in an increase of nonvested common stock awards for the year ended December 31, 2018. (2) The fair value of common stock awards vested was $1.6 million, $4.1 million and $3.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company grants service-based shares of common stock units to non-employee or outside directors, which generally vest over a one Year Ended December 31, 2020 2019 2018 Nonvested Common Stock Unit Awards Units Weighted Units Weighted Units Weighted Outstanding at January 1, 15,922 $ 163.61 6,224 $ 362.97 5,451 $ 318.34 Granted 10,618 13.48 12,862 93.78 4,525 291.50 Vested (1) (12,770) 131.38 (3,164) 271.99 (3,752) 212.00 Forfeited (1,588) 12.69 — — — — Outstanding at December 31, 12,182 86.21 15,922 163.61 6,224 362.97 (1) The fair value of common stock unit awards vested was $0.2 million, $0.3 million and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. For the years ended December 31, 2020, 2019 and 2018, the Company granted performance-based cash units that settle in cash. These awards are accounted for as liability awards and are measured at fair value at each reporting date. A summary of the Company’s nonvested performance-based cash units for the years ended December 31, 2020, 2019 and 2018 is presented below: Year Ended December 31, 2020 2019 2018 Nonvested Performance-Based Units Weighted Units Weighted Units Weighted Outstanding at January 1, 51,521 18,191 30,962 Granted 71,388 40,530 18,706 Performance goal adjustment (1) — — 226 Modified (2) — — (24,230) Vested (3) — — (5,733) Forfeited (4) (122,909) (7,200) (1,740) Outstanding at December 31, — $ — 51,521 $ 79.50 18,191 $ 61.50 (1) The 2015 Program vested at 104.1% of the target level and resulted in additional units vesting in March 2018. These units are included in the vested line item for the year ended December 31, 2018. (2) Due to the closing of the 2018 Merger, the 2016 and 2017 Performance Cash Programs were converted from nonvested performance-based cash units to nonvested common stock awards, resulting in a decrease in nonvested performance-based cash units for the year ended December 31, 2018. The 2016 Program converted based on performance through March 19, 2018, which resulted in 89% of the units converting to nonvested common stock awards or a reduction of 1,303 units converting to nonvested common stock awards. (3) The fair value of performance-based cash unit awards vested was $1.5 million for the year ended December 31, 2018. No awards vested in 2020 or 2019. (4) During the year ended December 31, 2020, all nonvested performance-based cash unit awards were forfeited due to the cancellation of all performance cash programs. Performance Cash Programs 2020 Program. In February 2020, the Compensation Committee of the Board of Directors of the Company approved a performance cash program (the “2020 Program”) granting performance cash units that settle in cash and are accounted for as liability awards. The performance-based awards would contingently vest in February 2023, depending on the level at which the performance goal is achieved. In October 2020, all performance cash units were forfeited due to the cancellation of the 2020 Program. 2019 Program. In February 2019, the Compensation Committee of the Board of Directors of the Company approved a performance cash program (the “2019 Program”) granting performance cash units that settle in cash and are accounted for as liability awards. The performance-based awards would contingently vest in February 2022, depending on the level at which the performance goal is achieved. In October 2020, all performance cash units were forfeited due to the cancellation of the 2019 Program. 2018 Program. In February 2018, the Compensation Committee approved a performance cash program (the “2018 Program”) granting performance cash units that settle in cash and are accounted for as liability awards. The performance-based awards would contingently vest in February 2021, depending on the level at which the performance goal is achieved. In October 2020, all performance cash units were forfeited due to the cancellation of the 2018 Program. 2017 Program. In February 2017, the Compensation Committee approved a performance cash program (the “2017 Program”) granting performance cash units that settle in cash and are accounted for as liability awards. In March 2018, upon the 2018 Merger closing, each award under the 2017 Program was converted to a nonvested common stock award at 100% of the original award. At the time of the modification, 12,381 units were converted to 12,381 nonvested shares of the Company’s common stock affecting 34 employees. These awards no longer had a performance criterion, but continued to have a service- based criterion through the cliff vest that occurred in February 2020. The conversion of the performance-based liability award to a service-based equity award was accounted for as a modification in accordance with ASC 718, Compensation - Stock Compensation . The total incremental compensation cost resulting from the modification was an increase of $0.5 million. The Company recorded an increase to additional paid-in capital (“APIC”) and a decrease to derivative and other noncurrent liabilities of $0.9 million as of December 31, 2018 in the Consolidated Statement of Stockholders’ Equity and the Consolidated Balance Sheets, respectively. 2016 Program. In March 2016, the Compensation Committee approved a performance cash program (the “2016 Program”) granting performance cash units that would settle in cash and were accounted for as liability awards. In March 2018, upon the 2018 Merger closing, each award under the 2016 Program was converted to a nonvested common stock award at 89% of the original award based on the Company’s performance through March 19, 2018. At the time of the modification, 11,849 units were converted to 10,546 nonvested shares of the Company’s common stock affecting 23 employees. These awards no longer had a performance criterion, but continued to have a service-based criterion through the cliff vest that occurred in February 2019. The conversion of the performance-based liability award to a service-based equity award was accounted for as a modification in accordance with ASC 718, Compensation - Stock Compensation . The total incremental compensation cost resulting from the modification was zero. The Company recorded an increase to APIC and a decrease to derivative and other noncurrent liabilities of $1.8 million as of December 31, 2018 in the Consolidated Statement of Stockholders’ Equity and the Consolidated Balance Sheets, respectively. 2015 Program. In February 2015, the Compensation Committee approved a performance cash program (the “2015 Program”) granting performance cash units that settle in cash and are accounted for as liability awards. The performance-based awards vested in May 2018, based on the level at which the performance goals were achieved. The performance goals, which were measured over the three year period ending December 31, 2017, consisted of the TSR compared to Relative TSR (weighted at 60%) and the percentage change in discretionary cash flow per debt adjusted share relative to a defined peer group’s percentage calculation (“DCF per Debt Adjusted Share”) (weighted at 40%). The Relative TSR and DCF per Debt Adjusted Share goals were to vest at 25% or 50%, respectively, of the total award for performance met at the threshold level, 100% at the target level and 200% at the stretch level. If the actual results for a metric were between the threshold and target levels or between the target and stretch levels, the vested number of units was to be prorated based on the actual results compared to the threshold, target and stretch goals. If the threshold metrics were not met, no units would vest. In any event, the total number of units that could vest would not exceed 200% of the original number of performance cash units granted. At the end of the three year vesting period, units that did not vest were forfeited. A total of 8,447 units were granted under this program during the year ended December 31, 2015. All compensation expense related to the TSR metric was recognized if the requisite service period is fulfilled, even if the market condition was not achieved. All compensation expense related to the DCF per Debt Adjusted Share metric was based on the number of shares expected to vest at the end of the three year period. The Company modified the vest date of these awards from May 2018 to March 2018. Based upon the Company’s performance through 2017, 104.1% or 5,733 units of the 2015 Program vested in March 2018. Other Employee Benefits-401(k) Savings Plan. The Company has an employee-directed 401(k) savings plan (the “401(k) Plan”) for all eligible employees over the age of 21. Under the 401(k) Plan, employees may make voluntary contributions based on a percentage of their pretax income, subject to statutory limitations. The Company matches 100% of each employee’s contribution, up to 6% of the employee’s pretax income in cash. The Company’s cash contributions are fully vested upon the date of match. The Company made matching cash contributions of $1.0 million, $1.3 million and $1.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Deferred Compensation Plan. In 2010, the Company adopted a non-qualified deferred compensation plan for certain employees and officers whose eligibility to participate in the plan was determined by the Compensation Committee. The Company makes matching cash contributions on behalf of eligible employees up to 6% of the employee’s cash compensation once the contribution limits are reached in the Company’s 401(k) Plan. All amounts deferred and matched under the plan vest immediately. Deferred compensation, including accumulated earnings on the participant-directed investment selections, is distributable in cash at participant-specified dates or upon retirement, death, disability, change in control or termination of employment. The table below summarizes the activity in the plan as of December 31, 2020 and 2019, and the Company’s ending deferred compensation liability as of December 31, 2020 and 2019: As of December 31, 2020 2019 (in thousands) Beginning deferred compensation liability balance $ 2,033 $ 1,392 Employee contributions 158 276 Company matching contributions 74 150 Distributions (1,319) (193) Participant earnings (losses) 51 408 Ending deferred compensation liability balance $ 997 $ 2,033 Amount to be paid within one year $ 211 $ 844 Remaining balance to be paid beyond one year $ 786 $ 1,189 The Company has established a rabbi trust to offset the deferred compensation liability and protect the interests of the plan participants. The investments in the rabbi trust seek to offset the change in the value of the related liability. As a result, there is no expected impact on earnings or earnings per share from the changes in market value of the investment assets because the changes in market value of the trust assets are offset by changes in the value of the deferred compensation plan liability. The gains and losses from changes in fair value of the investments are included in interest and other income in the Consolidated Statements of Operations. The following table represents the Company’s activity in the investment assets held in the rabbi trust as of December 31, 2020 and 2019: As of December 31, 2020 2019 (in thousands) Beginning investment balance $ 2,033 $ 1,392 Investment purchases 145 426 Distributions (1,319) (193) Earnings (losses) 51 408 Ending investment balance $ 910 $ 2,033 |
Significant Customers and Other
Significant Customers and Other Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Customers and Other Concentrations | Significant Customers and Other Concentrations Significant Customers. During 2020, four customers individually accounted for over 10% of the Company’s oil, gas and NGL production revenues. During 2019, three customers individually accounted for over 10% of the Company’s oil, gas and NGL production revenues. During 2018, four customers individually accounted for over 10% of the Company’s oil, gas and NGL production revenues. Collectability is dependent upon the financial stability of each individual company and is influenced by the general economic conditions of the industry. The Company normally sells production to a relatively small number of customers, as is customary in the development and production business. Based on where the Company operates and the availability of other purchasers and markets, the Company believes that its production could be sold in the market in the event that it is not sold to its existing customers. However, in some circumstances, a change in customers may entail significant costs during the transition to a new customer. Concentrations of Market Risk. The future results of the Company’s oil and gas operations will be affected by the market prices of oil, natural gas and NGLs. A readily available market for oil, natural gas and NGLs in the future will depend on numerous factors beyond the control of the Company, including weather, imports, marketing of competitive fuels, proximity and capacity of oil and gas pipelines and other transportation facilities, any oversupply or undersupply of oil, gas and NGLs, the regulatory environment, the economic environment and other regional, national and international economic and political events, none of which can be predicted with certainty. The Company operates in the exploration, development and production phase of the oil and gas industry. Its receivables include amounts due from purchasers of oil and gas production and amounts due from joint venture partners for their respective portions of operating expenses and exploration and development costs. The Company believes that no single customer or joint venture partner exposes the Company to significant credit risk. While certain of these customers and joint venture partners are affected by periodic downturns in the economy in general or in their specific segment of the natural gas or oil industry, the Company believes that its level of credit-related losses due to such economic fluctuations has been and will continue to be immaterial to the Company’s results of operations in the long-term. Trade receivables are generally not collateralized. The Company analyzes customers’ and joint venture partners’ historical credit positions and payment histories prior to extending credit and continuously monitors all credit activities. Concentrations of Credit Risk. Derivative financial instruments that hedge the price of oil, natural gas and NGLs are generally executed with major financial or commodities trading institutions which expose the Company to market and credit risks and may, at times, be concentrated with certain counterparties or groups of counterparties. The Company’s policy is to execute financial derivatives only with major, creditworthy financial institutions. The Company has derivative instruments with seven different counterparties, of which all are lenders or affiliates of lenders in the Credit Facility. The creditworthiness of counterparties is subject to continuous review, and the Company believes all of these institutions currently are acceptable credit risks. Full performance is anticipated, and the Company has no past due receivables from any of its counterparties. Where the counterparty is a lender under the Credit Facility, the counterparty risk is mitigated to the extent that the Company is indebted to such lender under the Credit Facility. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases A contract is or contains a lease when, (1) the contract contains an explicitly or implicitly identified asset and (2) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract in exchange for consideration. The Company assesses whether an arrangement is or contains a lease at inception of the contract. For all leases, other than those that qualify for the short-term recognition exemption, the Company recognizes as of the lease commencement date on the balance sheet a liability for its obligation related to the lease and a corresponding asset representing the Company’s right to use the underlying asset over the period of use. The Company currently has leases for office space and other equipment, all of which are classified as operating leases. The Company’s leases have remaining terms of up to seven years. Certain lease agreements contain options to extend or early terminate the agreement. These options are used to calculate right-of-use asset and lease liability balances when it is reasonably certain that the Company will exercise these options. The discount rate used to calculate the present value of the future minimum lease payments is the Company’s incremental borrowing rate. The Company elected, for all classes of underlying assets, to not apply the balance sheet recognition requirements of ASC 842 to leases with a term of one year or less, and instead, recognize the lease payments in the income statement on a straight-line basis over the lease term. The Company also elected, for certain classes of underlying assets, to combine lease and non-lease components. Therefore, the Company elected to combine lease and non-lease components for drilling rig and gathering system asset classes. These assets are not reported on the Consolidated Balance Sheets as the Company did not have any drilling rig lease contracts as of December 31, 2020 and its drilling rig lease contracts were classified as short-term as of December 31, 2019. In addition, the Company’s lease contract for a gathering system includes variable payments. For the year ended December 31, 2020 and 2019, lease cost is presented below: Year Ended December 31, Lease Cost 2020 2019 (in thousands) Operating lease cost (1)(3) $ 2,099 $ 2,239 Short-term lease cost (2)(3) 3,625 15,928 Variable lease cost (4) 1,310 654 Total lease cost $ 7,034 $ 18,821 (1) Operating lease cost was primarily included in general and administrative expense or lease operating expense on the Consolidated Statements of Operations. (2) Short-term lease cost primarily includes leases for drilling rigs, which were capitalized to property, plant and equipment on the Consolidated Balance Sheets. (3) A portion of the operating lease cost and a majority of the short-term lease cost represent gross amounts that the Company was financially committed to pay. However, the Company recorded in the financial statements its proportionate share based on the Company’s working interest, which varies from property to property. (4) Variable lease cost is related to a gathering agreement and is included in oil, gas, and NGL production revenue on the Consolidated Statements of Operations. Supplemental balance sheet information related to leases as of December 31, 2020 and 2019, is presented below: As of December 31, Operating Leases 2020 2019 (in thousands) Right-of-use assets (1) $ 9,820 $ 9,287 Accumulated amortization (2) (2,024) (1,142) Total right-of-use assets (3) $ 7,796 $ 8,145 Current lease liabilities (4) (1,979) (1,287) Noncurrent lease liabilities (5) (12,018) (13,195) Total lease liabilities (3) $ (13,997) $ (14,482) Weighted average remaining lease term Operating leases (in years) 6.8 7.8 Weighted average discount rate Operating leases 5.6 % 5.6 % (1) Included in furniture, equipment and other in the Consolidated Balance Sheets. (2) Included in accumulated depreciation, depletion, amortization and impairment in the Consolidated Balance Sheets. (3) The difference between the right-of-use assets and lease liabilities is primarily related to lease incentives and deferred rent balances, which were required to be netted against the right-of-use assets as of the implementation date of January 1, 2019. (4) Included in accounts payable and accrued liabilities in the Consolidated Balance Sheets. (5) Included in other noncurrent liabilities in the Consolidated Balance Sheets. Maturities of lease liabilities as of December 31, 2020 and 2019 are presented below: As of December 31, 2020 2019 (in thousands) 2021 $ 2,691 $ 2,056 2022 2,413 2,355 2023 2,167 2,044 2024 2,078 2,024 2025 2,196 2,078 Thereafter 5,380 7,577 Total $ 16,925 $ 18,134 Less: Interest (2,928) (3,652) Present value of lease liabilities $ 13,997 $ 14,482 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Firm Transportation Agreements . The Company is party to two firm transportation contracts to provide capacity on natural gas pipeline systems. The contracts require the Company to pay minimum volume transportation charges through July 2021 regardless of the amount of pipeline capacity utilized by the Company. These monthly transportation payments are included in unused commitments expense in the Consolidated Statements of Operations. As a result of previous divestitures in 2013 and 2014, the Company will likely not utilize the firm capacity on the natural gas pipelines. The Company is party to one firm pipeline transportation contract to provide capacity on an oil pipeline system. The contract requires the Company to pay minimum volume transportation charges through April 2025 regardless of the amount of pipeline capacity utilized by the Company. The amounts in the table below represent the Company’s future minimum transportation charges: As of December 31, 2020 (in thousands) 2021 $ 19,549 2022 13,064 2023 14,600 2024 14,640 2025 4,800 Thereafter — Total $ 66,653 Other Commitments. The Company is party to a drilling commitment with a joint interest partner that requires the Company to drill and complete two wells by July 2022 and three wells by July 2023. If the drilling commitment is not met, the Company must return the associated leases that are not held by production to the joint interest partner, which cover approximately 13,000 acres. The Company is also party to minimum volume commitments for the delivery of natural gas volumes to midstream entities for gathering, processing and capital reimbursements as well as minimum volume commitments to purchase fresh water from water suppliers. These commitments require the Company to pay a fee associated with the minimum volumes regardless of the amount delivered. Due to a decline in activity, the Company did not utilize the minimum volume for fresh water during the year 2020 and, therefore, recognized $1.0 million in unused commitments in the Consolidated Statement of Operations for the year ended December 31, 2020. In addition, the Company has non-cancellable agreements for information technology services. Future minimum annual payments under these agreements are as follows: As of December 31, 2020 (in thousands) 2021 $ 3,651 2022 (1) 11,485 2023 (1) 16,345 Thereafter — Total $ 31,481 (1) Includes $10.2 million in 2022 and $15.3 million in 2023 related to the drilling commitment discussed above. Litigation. The Company is subject to litigation, claims and governmental and regulatory proceedings arising in the ordinary course of business. It is the opinion of the Company’s management that current claims and litigation involving the Company are not likely to have a material adverse effect on its Consolidated Balance Sheet, Cash Flows or Statements of Operations, other than the following. Sterling Energy Investments LLC v. HighPoint Operating Corporation, 2020CV32034, District Court in Denver, Colorado. On June 15, 2020, Sterling Energy Investments LLC (“Sterling”) filed a complaint against HighPoint Operating Corporation, a subsidiary of the Company, for breach of contract related to a Gas Purchase Agreement dated effective November 1, 2017, by and between HighPoint Operating Corporation and Sterling. Sterling alleges that HighPoint Operating Corporation breached the contract by failing to use reasonable commercial efforts to deliver to Sterling at Sterling’s receipt points all quantities of gas not otherwise dedicated to other gas purchase agreements. The Company vigorously denies Sterling’s claims. Sterling seeks monetary damages in an amount not yet specified. On July 31, 2020, the Company filed a counterclaim against Sterling for breach of Sterling’s obligations under the Gas Purchase Agreement. The Company is seeking monetary damages in an amount not yet specified. The case is scheduled to go to trial in July 2021. At this time the Company is unable to determine whether any loss is probable or reasonably estimate a range of such loss, and accordingly has not recognized any liability associated with this matter. Disclosure of certain environmental matters is required when a governmental authority is a party to the proceedings and the |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Leases | A contract is or contains a lease when, (1) the contract contains an explicitly or implicitly identified asset and (2) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract in exchange for consideration. The Company assesses whether an arrangement is or contains a lease at inception of the contract. For all leases, other than those that qualify for the short-term recognition exemption, the Company recognizes as of the lease commencement date on the balance sheet a liability for its obligation related to the lease and a corresponding asset representing the Company’s right to use the underlying asset over the period of use. |
Basis of Presentation | Basis of Presentation. The accompanying Consolidated Financial Statements include the accounts of the Company. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. On October 20, 2020, the Company announced a reverse stock split of the Company’s outstanding shares of common stock at a ratio of 1-for-50 and a proportionate reduction of the total number of authorized shares of common stock, which was approved by the stockholders at the Company’s Annual Meeting of Stockholders on April 28, 2020. The reverse stock split became effective on October 30, 2020, and the Company’s common stock was traded on a split-adjusted basis on the New York Stock Exchange (“NYSE”) at the market open on that date. The par value of the common stock was not adjusted as a result of |
Use of Estimates | Use of Estimates. In the course of preparing the Company’s financial statements in accordance with GAAP, management makes various assumptions, judgments and estimates to determine the reported amount of assets, liabilities, revenues and expenses and in the disclosure of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and, accordingly, actual results could differ from amounts initially established. |
Oil and Gas Properties | Oil and Gas Properties. The Company’s oil, gas and NGL exploration and production activities are accounted for using the successful efforts method. Under this method, all property acquisition costs and costs of exploratory and development wells are capitalized when incurred, pending determination of whether the well has found proved reserves. If an exploratory well does not find proved reserves, the costs of drilling the well are charged to expense and remain within cash flows from investing activities in the Consolidated Statements of Cash Flows. If an exploratory well does find proved reserves, the costs remain capitalized and are included within additions to oil and gas properties and remain within cash flows from investing activities in the Consolidated Statements of Cash Flows. The costs of development wells are capitalized whether proved reserves are added or not. Oil and gas lease acquisition costs are also capitalized. Upon sale or retirement of depreciable or depletable property, the cost and related accumulated DD&A are eliminated from the accounts and the resulting gain or loss is recognized. Other exploration costs, including certain geological and geophysical expenses and delay rentals for oil and gas leases, are charged to expense as incurred. The sale of a partial interest in a proved property is accounted for as a cost recovery and no gain or loss is recognized as long as this treatment does not significantly affect the unit-of-production amortization rate. Maintenance and repairs are charged to expense, and renewals are capitalized to the appropriate property and equipment accounts. Unproved oil and gas property costs are transferred to proved oil and gas properties if the properties are subsequently determined to be productive or are assigned proved reserves. Proceeds from sales of partial interests in unproved leases are accounted for as a recovery of cost without recognizing any gain until all costs are recovered. Unproved oil and gas properties are assessed periodically for impairment based on remaining lease terms, drilling results, reservoir performance, commodity price outlooks, future plans to develop acreage, recent sales prices of comparable properties and other relevant matters. Materials and supplies consist primarily of tubular goods and well equipment to be used in future drilling operations or repair operations and are carried at the lower of cost or net realizable value. The following table sets forth the net capitalized costs and associated accumulated DD&A and non-cash impairments relating to the Company’s oil, natural gas and NGL producing activities: As of December 31, 2020 2019 (in thousands) Proved properties $ 720,582 $ 725,964 Wells and related equipment and facilities 1,923,811 1,805,136 Support equipment and facilities 107,068 99,540 Materials and supplies 12,507 13,489 Total proved oil and gas properties $ 2,763,968 $ 2,644,129 Unproved properties 163,455 265,387 Wells and facilities in progress 49,095 92,406 Total unproved oil and gas properties, excluded from amortization $ 212,550 $ 357,793 Accumulated depreciation, depletion, amortization and impairment (1) (2,270,855) (958,475) Total oil and gas properties, net $ 705,663 $ 2,043,447 (1) The Company recognized non-cash impairment charges associated with proved oil and gas properties during the year ended December 31, 2020 of $1.2 billion. See discussion below. All exploratory wells are evaluated for economic viability within one year of well completion. Exploratory wells that discover potentially economic reserves in areas where a major capital expenditure would be required before production could begin, and where the economic viability of that major capital expenditure depends upon the successful completion of further exploratory work in the area, remain capitalized if the well finds a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. As of December 31, 2020 and 2019, there were no exploratory well costs that had been capitalized for a period greater than one year since the completion of drilling. In addition, the Company had no exploratory wells as of December 31, 2020. The Company reviews proved oil and gas properties for impairment on a quarterly basis or whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. The Company estimates the expected undiscounted future net cash flows of its oil and gas properties using proved and risked probable and possible reserves based on an analysis of quantitative and qualitative factors existing as of the balance sheet date including the Company’s development plans and best estimate of future production, commodity pricing, reserve risking, gathering and transportation deductions, production tax rates, lease operating expenses and future development costs. The Company compares such undiscounted future net cash flows to the carrying amount of the oil and gas properties to determine if the carrying amount is recoverable. If the undiscounted future net cash flows exceed the carrying amount of the oil and gas properties, no impairment is taken. If the carrying amount of a property exceeds the undiscounted future net cash flows, the Company will impair the carrying value to fair value. The factors used to determine fair value may include, but are not limited to, recent sales prices of comparable properties, indications from marketing activities, the present value of future revenues, net of estimated operating and development costs using estimates of reserves, future commodity pricing, future production estimates, anticipated capital expenditures, income taxes and various discount rates commensurate with the risk and current market conditions associated with realizing the projected cash flows. Oil and gas properties are also assessed for impairment once they meet the criteria to be classified as held for sale. Assets held for sale are carried at the lower of carrying cost or fair value less costs to sell. The fair value of the assets is determined using a market approach, based on an estimated selling price, as evidenced by current marketing activities, if possible. If an estimated selling price is not available, the Company utilizes the income valuation technique which involves calculating the present value of future revenues, as discussed above. If the carrying amount of the assets exceeds the fair value less costs to sell, an impairment will result to reduce the value of the properties down to fair value less costs to sell. The estimated fair value of assets held for sale may be materially different from sales proceeds that the Company eventually realizes due to a number of factors including but not limited to the differences in expected future commodity pricing, location and quality differentials, the Company’s relative desire to dispose of such properties based on facts and circumstances impacting the Company’s business at the time the Company agrees to sell, such as the Company’s position in the field subsequent to the sale and plans for future acquisitions or development in core areas. In early 2020, global health care systems and economies began to experience strain from the spread of COVID-19, a highly transmissible and pathogenic coronavirus (the “COVID-19 pandemic”). As the virus spread, global economic activity began to slow resulting in a decline in demand for oil and natural gas. In response, the Organization of Petroleum Exporting Countries (“OPEC”), along with non-OPEC oil-producing countries (collectively known as “OPEC+”), initiated discussions to reduce production to support energy prices. With OPEC+ unable to agree on cuts, energy prices declined sharply during the first half of 2020 and only partially recovered in the second half of 2020. These events led to a decline in the recoverability of the carrying value of the Company’s oil and gas properties. Since the carrying amount of the oil and gas properties was no longer recoverable, the Company impaired the carrying value to fair value. Therefore, the Company recognized non-cash impairment charges during the year ended December 31, 2020 of $1.3 billion, which were included within impairment and abandonment expense in the Consolidated Statements of Operations. The Company contracted with an independent third party to assist the Company in the Company’s determination of fair value associated with the Company’s proved and unproved oil and gas properties. Through the use of the Company’s production and price forecast, the third party used the income valuation technique to assist the Company in the determination of fair value for the proved developed producing (“PDP”) and proved developed non-producing (“PDN”) reserves and a market approach utilizing sales prices of comparable properties to assist the Company in the determination of fair value of the proved undeveloped (“PUD”), probable (“PROB”) and possible (“POSS”) reserves. The Company’s impairment and abandonment expense for the years ended December 31, 2020, 2019 and 2018 is summarized below: Year Ended December 31, 2020 2019 2018 (in thousands) Impairment of proved oil and gas properties (1) $ 1,188,566 $ — $ — Impairment of unproved oil and gas properties (1)(2) 94,209 3,854 — Abandonment expense 2,310 5,788 719 Total impairment and abandonment expense $ 1,285,085 $ 9,642 $ 719 (1) Due to a decline in the recoverability of the carrying value of the Company’s oil and gas properties during the year ended December 31, 2020, the Company recognized non-cash impairment charges of $1.2 billion associated with proved oil and gas properties and $76.3 million associated with unproved oil and gas properties. (2) As a result of the Company’s continuous review of its acreage position and future drilling plans, the Company recognized $17.9 million and $3.9 million of non-cash impairment associated with unproved oil and gas properties during the years ended December 31, 2020 and 2019, respectively, associated with certain leases in which the economics may not support renewal or extending at current contracted values. Under successful efforts accounting, depletion expense is calculated using the units-of-production method on the basis of some reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. Natural gas and NGLs are converted to an oil equivalent, Boe, at the standard rate of six Mcf to one Boe and forty-two gallons to one Boe, respectively. Estimated future dismantlement, restoration and abandonment costs are taken into consideration by this calculation. |
Environmental Liabilities | Environmental Liabilities. Environmental expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenue generation are expensed. Environmental liabilities are accrued when |
Revenue Recognition | Revenue Recognition. All of the Company’s sales of oil, gas and NGLs are made under contracts with customers, whereby revenues are recognized when the Company satisfies its performance obligations and the customer obtains control of the product. Performance obligations under the Company’s contracts with customers are typically satisfied at a point-in-time through monthly delivery of oil, gas and/or NGLs. Accordingly, at the end of the reporting period, the Company does not have any unsatisfied performance obligations. The Company’s contracts with customers typically include variable consideration based on monthly pricing tied to local indices and volumes delivered in the current month. The nature of the Company’s contracts with customers does not require the Company to constrain variable consideration for accounting purposes. As of December 31, 2020, the Company had open contracts with customers with terms of 1 month to 18 years, as well as evergreen contracts that renew on a periodic basis if not canceled by the Company or the customer. The Company’s contracts with customers typically require payment within one month of delivery. Under the Company’s contracts with customers, natural gas and its components, including NGLs, are either sold to a midstream entity (which processes the natural gas and subsequently sells the resulting residue gas and NGLs) or are sold to a gas or NGL purchaser after being processed by a third party for a fee. Regardless of the contract structure type, the terms of these contracts compensate the Company for the value of the residue gas and NGLs at current market prices for each product. The Company’s oil is sold to multiple oil purchasers at specific delivery points at or near the wellhead. All costs incurred to gather, transport and/or process the Company’s oil, gas and NGLs after control has transferred to the customer are considered components of the consideration received from the customer and thus recorded in oil, gas and NGL production revenues in the Consolidated Statements of Operations. All costs incurred prior to the transfer of control to the customer are included in gathering, transportation and processing expense in the Consolidated Statements of Operations. Gas imbalances from the sale of natural gas are recorded on the basis of gas actually sold by the Company. If the Company’s aggregate sales volumes for a well are greater (or less) than its proportionate share of production from the well, a liability (or receivable) is established to the extent there are insufficient proved reserves available to make-up the overproduced (or underproduced) imbalance. Imbalances were not significant in the periods presented. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities. The Company periodically uses derivative financial instruments to achieve a more predictable cash flow from its oil, natural gas and NGL sales by reducing its exposure to price fluctuations. Derivative instruments are recorded at fair market value and are included in the Consolidated Balance Sheets as assets or liabilities. |
Income Taxes | Income Taxes. Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when assets are recovered or liabilities are settled. Deferred income taxes also include tax credits and net operating losses that are available to offset future income taxes. Deferred income taxes are measured by applying currently enacted tax rates. A valuation allowance is recorded if it is more likely than not that all or some portion of the Company’s deferred tax assets will not be realized. The Company regularly assesses the realizability of the deferred tax assets considering all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, planning strategies and results of recent operations. The assumptions about future taxable income require significant judgment to determine if a valuation allowance is required. Changes to the Company’s development plans, changes in market prices for hydrocarbons, changes in operating results, or other factors could change the valuation allowance in future periods, resulting in recognition of tax expense or benefit. |
Comprehensive Income | Comprehensive Income. The Company has no elements of other comprehensive income, therefore, the Company’s net income (loss) on the Consolidated Statements of Operations represents comprehensive income. |
Earnings/Loss Per Share | Earnings/Loss Per Share. Basic net income (loss) per common share is calculated by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding and other dilutive securities. Potentially dilutive securities for the diluted net income per common share calculations consist of nonvested shares of common stock. The dilutive net income per common share excludes the anti-dilutive effect of 8,159 nonvested shares of common stock for the year ended December 31, 2018. The Company was in a net loss position for the years ended December 31, 2020 and 2019, therefore, all potentially dilutive securities were anti-dilutive. The following table sets forth the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2020 2019 2018 (in thousands, except per share amounts) Net income (loss) $ (1,163,981) $ (134,830) $ 121,220 Basic weighted-average common shares outstanding in period 4,238 4,208 3,766 Add dilutive effects of stock options and nonvested equity shares of common stock — — 19 Diluted weighted-average common shares outstanding in period 4,238 4,208 3,785 Basic net income (loss) per common share $ (274.65) $ (32.04) $ 32.19 Diluted net income (loss) per common share $ (274.65) $ (32.04) $ 32.03 |
Industry Segment and Geographic Information | Industry Segment and Geographic Information. The Company operates in one industry segment, which is the development and production of crude oil, natural gas and NGLs, and all of the Company’s operations are conducted in the continental United States. Consequently, the Company currently reports as a single industry segment. |
New Accounting Pronouncements | New Accounting Pronouncements. In April 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In response to the cessation of the London Interbank Offered Rate (“LIBOR”) by December 31, 2022, the FASB issued this update to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other affected transactions. The Company currently has only one contract, its Credit Facility, that may be impacted by this ASU. Modifications of debt contracts should be accounted for by prospectively adjusting the effective interest rate. This update has an effective period of March 12, 2020 through December 31, 2022 and allows for elections to be made by the Company in terms of how the ASU is adopted. Once elected for a Topic or Industry Subtopic, the update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The Company does not believe the standard will have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The objective of this update is to improve the effectiveness of fair value measurement disclosures. ASU 2018-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The standard was adopted on January 1, 2020 and did not have a material impact on the Company’s disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments, Credit Losses . The objective of this update is to amend current impairment guidance by adding an impairment model (known as the current expected credit loss model (“CECL”)) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The standard was adopted on January 1, 2020 and did not have a material impact on the Company’s disclosures and financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable is comprised of the following: As of December 31, 2020 2019 (in thousands) Accrued oil, gas and NGL sales $ 25,874 $ 50,171 Due from joint interest owners (1) 8,690 9,551 Other 4,431 2,419 Allowance for credit losses (701) (21) Total accounts receivable, net $ 38,294 $ 62,120 |
Schedule of Net Capitalized Costs | The following table sets forth the net capitalized costs and associated accumulated DD&A and non-cash impairments relating to the Company’s oil, natural gas and NGL producing activities: As of December 31, 2020 2019 (in thousands) Proved properties $ 720,582 $ 725,964 Wells and related equipment and facilities 1,923,811 1,805,136 Support equipment and facilities 107,068 99,540 Materials and supplies 12,507 13,489 Total proved oil and gas properties $ 2,763,968 $ 2,644,129 Unproved properties 163,455 265,387 Wells and facilities in progress 49,095 92,406 Total unproved oil and gas properties, excluded from amortization $ 212,550 $ 357,793 Accumulated depreciation, depletion, amortization and impairment (1) (2,270,855) (958,475) Total oil and gas properties, net $ 705,663 $ 2,043,447 (1) The Company recognized non-cash impairment charges associated with proved oil and gas properties during the year ended December 31, 2020 of $1.2 billion. See discussion below. |
Schedule Of Noncash Impairment Charges | The Company’s impairment and abandonment expense for the years ended December 31, 2020, 2019 and 2018 is summarized below: Year Ended December 31, 2020 2019 2018 (in thousands) Impairment of proved oil and gas properties (1) $ 1,188,566 $ — $ — Impairment of unproved oil and gas properties (1)(2) 94,209 3,854 — Abandonment expense 2,310 5,788 719 Total impairment and abandonment expense $ 1,285,085 $ 9,642 $ 719 (1) Due to a decline in the recoverability of the carrying value of the Company’s oil and gas properties during the year ended December 31, 2020, the Company recognized non-cash impairment charges of $1.2 billion associated with proved oil and gas properties and $76.3 million associated with unproved oil and gas properties. (2) As a result of the Company’s continuous review of its acreage position and future drilling plans, the Company recognized $17.9 million and $3.9 million of non-cash impairment associated with unproved oil and gas properties during the years ended December 31, 2020 and 2019, respectively, associated with certain leases in which the economics may not support renewal or extending at current contracted values. |
Schedule of Accounts Payable | Accounts payable and accrued liabilities are comprised of the following: As of December 31, 2020 2019 (in thousands) Accrued drilling, completion and facility costs $ 4,390 $ 25,667 Accrued lease operating, gathering, transportation and processing expenses 6,751 8,046 Accrued general and administrative expenses 6,567 6,612 Accrued interest payable 6,494 6,832 Trade payables 2,763 17,488 Operating lease liability 1,979 1,287 Other 2,976 5,706 Total accounts payable and accrued liabilities $ 31,920 $ 71,638 |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2020 2019 2018 (in thousands, except per share amounts) Net income (loss) $ (1,163,981) $ (134,830) $ 121,220 Basic weighted-average common shares outstanding in period 4,238 4,208 3,766 Add dilutive effects of stock options and nonvested equity shares of common stock — — 19 Diluted weighted-average common shares outstanding in period 4,238 4,208 3,785 Basic net income (loss) per common share $ (274.65) $ (32.04) $ 32.19 Diluted net income (loss) per common share $ (274.65) $ (32.04) $ 32.03 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Cash paid for interest $ 55,210 $ 55,470 $ 50,063 Cash paid for income taxes — — — Cash paid for amounts included in the measurements of lease liabilities: Cash paid for operating leases 2,235 1,315 Non-cash operating activities: Right-of-use assets obtained in exchange for lease obligations Operating leases (1)(2) 957 14,999 Supplemental disclosures of non-cash investing and financing activities: Accrued liabilities - oil and gas properties 5,435 28,130 98,346 Change in asset retirement obligations, net of disposals (652) (5,538) 10,778 Retirement of treasury stock (669) (1,729) (1,535) Properties exchanged in non-cash transactions 4,753 4,561 — Issuance of common stock for 2018 Merger — — 484,000 (1) Excludes the reclassifications of lease incentives and deferred rent balances. (2) The year ended December 31, 2019 included $14.0 million of right-of-use assets established with the adoption of ASC 842, Leases , effective January 1, 2019. |
Mergers, Acquisitions, Exchan_2
Mergers, Acquisitions, Exchanges and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the Company’s purchase price allocation: March 19, 2018 (in thousands) Purchase Price: Fair value of common stock issued $ 484,000 Plus: Repayment of Fifth Creek debt 53,900 Total purchase price 537,900 Plus Liabilities Assumed: Accounts payable and accrued liabilities 25,782 Current unfavorable contract 2,651 Other current liabilities 13,797 Asset retirement obligations 7,361 Long-term deferred tax liability 137,707 Long-term unfavorable contract 4,449 Other noncurrent liabilities 2,354 Total purchase price plus liabilities assumed $ 732,001 Fair Value of Assets Acquired: Cash 543 Accounts receivable 7,831 Oil and Gas Properties: Proved oil and gas properties 105,702 Unproved oil and gas properties 609,568 Asset retirement obligations 7,361 Furniture, equipment and other 931 Other noncurrent assets 65 Total asset value $ 732,001 |
Schedule of Business Acquisition, Pro Forma Information | The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the acquisition taken place on January 1, 2017; furthermore, the financial information is not intended to be a projection of future results. Year Ended December 31, 2019 2018 (in thousands, except per share data) Revenues $ 452,659 $ 468,949 Net Income (Loss) (131,407) 125,281 Net Income (Loss) per Common Share, Basic (31.00) 30.00 Net Income (Loss) per Common Share, Diluted (31.00) 30.00 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt is summarized below: As of December 31, 2020 As of December 31, 2019 Maturity Date Principal Debt Carrying Principal Debt Carrying (in thousands) Credit Facility (1) September 14, 2023 $ 140,000 $ — $ 140,000 $ 140,000 $ — $ 140,000 7.0% Senior Notes October 15, 2022 350,000 (1,535) 348,465 350,000 (2,372) 347,628 8.75% Senior Notes June 15, 2025 275,000 (3,031) 271,969 275,000 (3,717) 271,283 Total Long-Term Debt $ 765,000 $ (4,566) $ 760,434 $ 765,000 $ (6,089) $ 758,911 (1) The maturity date of the Credit Facility could be accelerated to July 16, 2022. See discussion below. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | A reconciliation of the Company’s asset retirement obligations for the year ended December 31, 2020, 2019 and 2018 is as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Beginning of period $ 25,709 $ 29,655 $ 17,586 Liabilities incurred (1) 519 2,863 10,649 Liabilities settled (1,501) (1,682) (1,630) Disposition of properties (143) (7,668) (351) Accretion expense 1,788 1,592 1,291 Revisions to estimate 473 949 2,110 End of period $ 26,845 $ 25,709 $ 29,655 Less: Current asset retirement obligations 2,020 2,218 2,325 Long-term asset retirement obligations $ 24,825 $ 23,491 $ 27,330 (1) The year ended December 31, 2018 includes $7.4 million associated with properties acquired in the 2018 Merger. See Note 4 for additional information regarding the 2018 Merger. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Recurring | The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were measured at fair value on a recurring basis in the Consolidated Balance Sheets. Level 1 Level 2 Level 3 Total (in thousands) As of December 31, 2020 Financial Assets Cash equivalents $ — $ — $ — $ — Deferred compensation plan 910 — — 910 Commodity derivatives — 19,542 — 19,542 Financial Liabilities Commodity derivatives — 5,366 — 5,366 As of December 31, 2019 Financial Assets Cash equivalents — — — — Deferred compensation plan 2,033 — — 2,033 Commodity derivatives — 8,890 — 8,890 Financial Liabilities Commodity derivatives — 10,056 — 10,056 |
Fair Value, Assets Measured on Nonrecurring Basis, Level 3 Unobservable Inputs | The following table includes quantitative information about the significant unobservable inputs, categorized within Level 3 of the fair value hierarchy, that were used in the fair value measurement. Level 3 Unobservable Inputs As of March 31, 2020 Price (1) Oil (per Bbl) $29 to $60 Gas (per MMbtu) $2.03 to $2.52 NGL (percentage of oil price) 24% to 31% Reserve adjustment factors PDP 100% PDN 95% Discount rate 11% (1) These prices were adjusted for location and quality differentials. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value Amounts of Derivative Instruments | The following table summarizes the location, as well as the gross and net fair value amounts, of all derivative instruments presented on the Consolidated Balance Sheets as of the dates indicated. As of December 31, 2020 Balance Sheet Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative assets $ 19,410 $ (933) (1) $ 18,477 Other noncurrent assets 132 (132) (1) — Total derivative assets $ 19,542 $ (1,065) $ 18,477 Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative liabilities $ (2,347) $ 933 (1) $ (1,414) Other noncurrent liabilities (3,019) 132 (1) (2,887) Total derivative liabilities $ (5,366) $ 1,065 $ (4,301) As of December 31, 2019 Balance Sheet Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative assets $ 8,477 $ (4,561) (1) $ 3,916 Other noncurrent assets 413 (413) (1) — Total derivative assets $ 8,890 $ (4,974) $ 3,916 Gross Amounts of Gross Amounts Net Amounts of (in thousands) Derivative liabilities $ (8,972) $ 4,561 (1) $ (4,411) Other noncurrent liabilities (1,084) 413 (1) (671) Total derivative liabilities $ (10,056) $ 4,974 $ (5,082) (1) Asset and liability balances with the same counterparty are presented as a net asset or liability on the Consolidated Balance Sheets. |
Schedule of Financial Instruments for Hedging Volumes | As of December 31, 2020, the Company had swap and swaption contracts in place to hedge the following volumes for the periods indicated: For the Year 2021 For the Year 2022 Derivative Volumes Weighted Average Price Derivative Volumes Weighted Average Price Swaps Oil (Bbls) 3,098,000 $ 54.30 — $ — Natural Gas (MMbtu) 5,790,000 2.13 3,650,000 2.13 Oil Roll Swaps (1) Oil (Bbls) 973,500 (0.01) — — Swaptions (2) Oil (Bbls) — — 1,092,000 55.08 (1) These contracts establish a fixed amount for the differential between the NYMEX WTI calendar month average and the physical crude oil delivery month price. The weighted average differential represents the amount of reduction to NYMEX WTI prices for the notional volumes covered by the swap contracts. (2) These swaptions may become effective fixed-price swaps at the counterparty’s election on December 31, 2021. As of December 31, 2020, the Company had cashless collars in place to hedge the following volumes for the periods indicated: For the Year 2021 Derivative Volumes Weighted Average Floor Weighted Average Ceiling Cashless Collars Natural Gas (MMbtu) 1,800,000 $ 2.00 $ 4.25 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Expense) Benefit for Income Taxes | The (expense) benefit for income taxes consisted of the following for the periods indicated: Year Ended December 31, 2020 2019 2018 (in thousands) Current: Federal $ — $ — $ — State — — — Deferred: Federal 83,755 35,806 (1,777) State 12,107 6,310 (50) Total $ 95,862 $ 42,116 $ (1,827) |
Schedule of Reconciliation of Actual Income Tax (Expense) Benefit | Income tax (expense) benefit differed from the amounts computed by applying the U.S. federal income tax rate of 21% to pretax income for the years ended December 31, 2020 and 2019 and 2018 from continuing operations as a result of the following: Year Ended December 31, 2020 2019 2018 (in thousands) Income tax (expense) benefit at the federal statutory rate $ 264,567 $ 37,159 $ (25,840) State income tax (expense) benefit, net of federal tax effect 43,956 6,002 (5,144) Nondeductible equity-based compensation (2,531) (1,895) (3,101) Nondeductible costs in connection with 2018 Merger — — (2,545) Other permanent items (449) (157) (418) Change in valuation allowance (209,885) 628 36,321 Change in valuation allowance - Section 382 — — 64,994 Change in apportioned state tax rates 204 275 (723) Change in ownership - Section 382 — — (64,994) Other, net — 104 (377) Income tax (expense) benefit $ 95,862 $ 42,116 $ (1,827) |
Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities as of December 31, 2020 and 2019 are presented below: As of December 31, 2020 2019 (in thousands) Long-term: Deferred tax assets: Net operating loss carryforward $ 136,373 $ 112,409 Oil and gas properties 79,100 — Stock-based compensation 736 1,368 Financing obligation 1,921 2,163 Accrued expenses — 38 Derivative instruments — 287 Other assets 6,302 148 Capital loss carryforward 869 890 Less: Valuation allowance (222,473) (12,587) Total long-term deferred tax assets 2,828 104,716 Deferred tax liabilities: Oil and gas properties — (201,396) Long-term derivative instruments (3,477) — Prepaid expenses (811) (462) Deferred compensation (96) (276) Total long-term deferred tax assets (liabilities) (4,384) (202,134) Net long-term deferred tax assets (liabilities) $ (1,556) $ (97,418) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following table reflects the activity in the Company’s common and treasury stock for the periods indicated: Year Ended December 31, 2020 2019 2018 Common Stock Outstanding: Shares at beginning of period 4,273,391 4,249,543 2,207,272 Shares issued for directors' fees 12,770 3,164 3,751 Shares issued for nonvested shares of common stock 40,572 36,954 46,642 Shares issued for 2018 Merger, common stock — — 2,000,000 Shares retired or forfeited (21,658) (16,270) (8,122) Shares at end of period 4,305,075 4,273,391 4,249,543 Treasury Stock: Shares at beginning of period — — — Treasury stock acquired 14,294 14,380 5,716 Treasury stock retired (14,294) (14,380) (5,716) Shares at end of period — — — |
Equity Incentive Compensation_2
Equity Incentive Compensation Plans and Other Long-term Incentive Programs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Non-Cash Stock-Based Compensation Cost Related to Equity Awards | The following table presents the long-term equity and cash incentive compensation related to awards for the periods indicated: Year Ended December 31, 2020 2019 2018 (in thousands) Nonvested common stock (1) $ 4,106 $ 6,601 $ 6,036 Nonvested common stock units (1) 543 1,177 1,138 Nonvested performance cash units (2)(3) (1,162) 844 52 Total $ 3,487 $ 8,622 $ 7,226 (1) Unrecognized compensation cost as of December 31, 2020 was $3.1 million related to grants of nonvested shares of common stock and common stock units that are expected to be recognized over a weighted-average period of 1.5 years. (2) The nonvested performance-based cash units are accounted for as liability awards with $0.0 million, $1.2 million and $0.3 million in other noncurrent liabilities as of December 31, 2020, 2019 and 2018, respectively, in the Consolidated Balance Sheets. (3) Liability awards are fair valued at each reporting date. The expense for the period will increase or decrease based on updated fair values of these awards at each reporting date. As of December 31, 2020, all nonvested performance cash units were cancelled, resulting in a reversal of expense and liability balances. |
Schedule of Deferred Compensation Liability | The table below summarizes the activity in the plan as of December 31, 2020 and 2019, and the Company’s ending deferred compensation liability as of December 31, 2020 and 2019: As of December 31, 2020 2019 (in thousands) Beginning deferred compensation liability balance $ 2,033 $ 1,392 Employee contributions 158 276 Company matching contributions 74 150 Distributions (1,319) (193) Participant earnings (losses) 51 408 Ending deferred compensation liability balance $ 997 $ 2,033 Amount to be paid within one year $ 211 $ 844 Remaining balance to be paid beyond one year $ 786 $ 1,189 |
Schedule of Deferred Compensation Investment Assets | The following table represents the Company’s activity in the investment assets held in the rabbi trust as of December 31, 2020 and 2019: As of December 31, 2020 2019 (in thousands) Beginning investment balance $ 2,033 $ 1,392 Investment purchases 145 426 Distributions (1,319) (193) Earnings (losses) 51 408 Ending investment balance $ 910 $ 2,033 |
Director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Equity Shares of Common Stock | A summary of the Company’s nonvested common stock units for the years ended December 31, 2020, 2019 and 2018 is presented in the table below: Year Ended December 31, 2020 2019 2018 Nonvested Common Stock Unit Awards Units Weighted Units Weighted Units Weighted Outstanding at January 1, 15,922 $ 163.61 6,224 $ 362.97 5,451 $ 318.34 Granted 10,618 13.48 12,862 93.78 4,525 291.50 Vested (1) (12,770) 131.38 (3,164) 271.99 (3,752) 212.00 Forfeited (1,588) 12.69 — — — — Outstanding at December 31, 12,182 86.21 15,922 163.61 6,224 362.97 |
Nonvested Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Equity Shares of Common Stock | A summary of the Company’s nonvested common stock awards for the years ended December 31, 2020, 2019 and 2018 is presented below: Year Ended December 31, 2020 2019 2018 Nonvested Common Stock Awards Shares Weighted Shares Weighted Shares Weighted Outstanding at January 1, 59,369 $ 190.74 58,243 $ 263.50 27,897 $ 348.48 Granted 40,572 57.00 36,954 131.95 23,716 273.50 Modified (1) — — — — 22,926 242.00 Vested (2) (33,805) 212.12 (33,939) 249.50 (13,890) 412.00 Forfeited (7,468) 76.15 (1,889) 245.50 (2,406) 296.50 Outstanding at December 31, 58,668 100.32 59,369 190.74 58,243 263.50 (1) Due to the closing of the 2018 Merger, the 2016 and 2017 Performance Cash Programs were converted from nonvested performance-based cash units to nonvested common stock awards, resulting in an increase of nonvested common stock awards for the year ended December 31, 2018. (2) The fair value of common stock awards vested was $1.6 million, $4.1 million and $3.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Nonvested Performance Cash Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Performance-Based Equity Shares of Common Stock | A summary of the Company’s nonvested performance-based cash units for the years ended December 31, 2020, 2019 and 2018 is presented below: Year Ended December 31, 2020 2019 2018 Nonvested Performance-Based Units Weighted Units Weighted Units Weighted Outstanding at January 1, 51,521 18,191 30,962 Granted 71,388 40,530 18,706 Performance goal adjustment (1) — — 226 Modified (2) — — (24,230) Vested (3) — — (5,733) Forfeited (4) (122,909) (7,200) (1,740) Outstanding at December 31, — $ — 51,521 $ 79.50 18,191 $ 61.50 (1) The 2015 Program vested at 104.1% of the target level and resulted in additional units vesting in March 2018. These units are included in the vested line item for the year ended December 31, 2018. (2) Due to the closing of the 2018 Merger, the 2016 and 2017 Performance Cash Programs were converted from nonvested performance-based cash units to nonvested common stock awards, resulting in a decrease in nonvested performance-based cash units for the year ended December 31, 2018. The 2016 Program converted based on performance through March 19, 2018, which resulted in 89% of the units converting to nonvested common stock awards or a reduction of 1,303 units converting to nonvested common stock awards. (3) The fair value of performance-based cash unit awards vested was $1.5 million for the year ended December 31, 2018. No awards vested in 2020 or 2019. (4) During the year ended December 31, 2020, all nonvested performance-based cash unit awards were forfeited due to the cancellation of all performance cash programs. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost | For the year ended December 31, 2020 and 2019, lease cost is presented below: Year Ended December 31, Lease Cost 2020 2019 (in thousands) Operating lease cost (1)(3) $ 2,099 $ 2,239 Short-term lease cost (2)(3) 3,625 15,928 Variable lease cost (4) 1,310 654 Total lease cost $ 7,034 $ 18,821 (1) Operating lease cost was primarily included in general and administrative expense or lease operating expense on the Consolidated Statements of Operations. (2) Short-term lease cost primarily includes leases for drilling rigs, which were capitalized to property, plant and equipment on the Consolidated Balance Sheets. (3) A portion of the operating lease cost and a majority of the short-term lease cost represent gross amounts that the Company was financially committed to pay. However, the Company recorded in the financial statements its proportionate share based on the Company’s working interest, which varies from property to property. (4) Variable lease cost is related to a gathering agreement and is included in oil, gas, and NGL production revenue on the Consolidated Statements of Operations. |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of December 31, 2020 and 2019, is presented below: As of December 31, Operating Leases 2020 2019 (in thousands) Right-of-use assets (1) $ 9,820 $ 9,287 Accumulated amortization (2) (2,024) (1,142) Total right-of-use assets (3) $ 7,796 $ 8,145 Current lease liabilities (4) (1,979) (1,287) Noncurrent lease liabilities (5) (12,018) (13,195) Total lease liabilities (3) $ (13,997) $ (14,482) Weighted average remaining lease term Operating leases (in years) 6.8 7.8 Weighted average discount rate Operating leases 5.6 % 5.6 % (1) Included in furniture, equipment and other in the Consolidated Balance Sheets. (2) Included in accumulated depreciation, depletion, amortization and impairment in the Consolidated Balance Sheets. (3) The difference between the right-of-use assets and lease liabilities is primarily related to lease incentives and deferred rent balances, which were required to be netted against the right-of-use assets as of the implementation date of January 1, 2019. (4) Included in accounts payable and accrued liabilities in the Consolidated Balance Sheets. (5) Included in other noncurrent liabilities in the Consolidated Balance Sheets. |
Schedule of Maturity of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 and 2019 are presented below: As of December 31, 2020 2019 (in thousands) 2021 $ 2,691 $ 2,056 2022 2,413 2,355 2023 2,167 2,044 2024 2,078 2,024 2025 2,196 2,078 Thereafter 5,380 7,577 Total $ 16,925 $ 18,134 Less: Interest (2,928) (3,652) Present value of lease liabilities $ 13,997 $ 14,482 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Gross Future Minimum Transportation Demand and Firm Processing Charges | The amounts in the table below represent the Company’s future minimum transportation charges: As of December 31, 2020 (in thousands) 2021 $ 19,549 2022 13,064 2023 14,600 2024 14,640 2025 4,800 Thereafter — Total $ 66,653 |
Schedule of Other Commitments | In addition, the Company has non-cancellable agreements for information technology services. Future minimum annual payments under these agreements are as follows: As of December 31, 2020 (in thousands) 2021 $ 3,651 2022 (1) 11,485 2023 (1) 16,345 Thereafter — Total $ 31,481 (1) Includes $10.2 million in 2022 and $15.3 million in 2023 related to the drilling commitment discussed above. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment and abandonment expense | $ 1,285,085 | $ 9,642 | $ 719 | ||
Capitalized Costs, Oil and Gas Producing Activities, Net | $ 705,663 | $ 705,663 | 2,043,447 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 8,159 | ||||
Environmental Remediation Expense | 300 | $ 1,900 | |||
Contract Payment Term | 1 month | ||||
Current operating lease liability | 1,979 | $ 1,979 | 1,287 | ||
Accounts Receivable, Due from One Joint Interest Partner | 4,500 | 4,500 | |||
Accounts Receivable, Due from One Joint Interest Partner, Noncurrent | 9,700 | 9,700 | |||
Proved Oil And Gas Properties | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash impairment of oil and gas properties | $ 1,200,000 | 1,188,566 | 0 | 0 | |
Unproved Oil And Gas Properties | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash impairment of oil and gas properties | $ 17,900 | $ 76,300 | $ 94,209 | $ 3,854 | $ 0 |
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue, Contract Term | 1 month | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue, Contract Term | 18 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | $ (701) | $ (21) |
Total accounts receivable, net | 38,294 | 62,120 |
Accrued oil, gas and NGL sales | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable gross | 25,874 | 50,171 |
Corporate Joint Venture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable gross | 8,690 | 9,551 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable gross | $ 4,431 | $ 2,419 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Net Capitalized Costs and Associated Accumulated Depreciation, Depletion & Amortization and Non Cash Impairments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Proved properties | $ 720,582 | $ 725,964 |
Wells and related equipment and facilities | 1,923,811 | 1,805,136 |
Support equipment and facilities | 107,068 | 99,540 |
Materials and supplies | 12,507 | 13,489 |
Total proved oil and gas properties | 2,763,968 | 2,644,129 |
Unproved properties | 163,455 | 265,387 |
Wells and facilities in progress | 49,095 | 92,406 |
Total unproved oil and gas properties, excluded from amortization | 212,550 | 357,793 |
Accumulated depreciation, depletion, amortization and impairment (1) | (2,270,855) | (958,475) |
Total oil and gas properties, net | $ 705,663 | $ 2,043,447 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Non-cash Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Non-cash Impairment Charges [Line Items] | |||||
Abandonment Expense of Oil and Gas Properties | $ 2,310 | $ 5,788 | $ 719 | ||
Impairment and abandonment expense | 1,285,085 | 9,642 | 719 | ||
Proved Oil And Gas Properties | |||||
Schedule of Non-cash Impairment Charges [Line Items] | |||||
Non-cash impairment of oil and gas properties | $ 1,200,000 | 1,188,566 | 0 | 0 | |
Unproved Oil And Gas Properties | |||||
Schedule of Non-cash Impairment Charges [Line Items] | |||||
Non-cash impairment of oil and gas properties | $ 17,900 | $ 76,300 | $ 94,209 | $ 3,854 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Accrued drilling, completion and facility costs | $ 4,390 | $ 25,667 |
Accrued lease operating, gathering, transportation and processing expenses | 6,751 | 8,046 |
Accrued general and administrative expenses | 6,567 | 6,612 |
Accrued interest payable | 6,494 | 6,832 |
Trade payables | 2,763 | 17,488 |
Operating lease liability | 1,979 | 1,287 |
Other | 2,976 | 5,706 |
Total accounts payable and accrued liabilities | $ 31,920 | $ 71,638 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Calculation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Net income (loss) | $ (1,163,981) | $ (134,830) | $ 121,220 |
Basic weighted-average common shares outstanding in period (in shares) | 4,238,180 | 4,207,833 | 3,765,981 |
Add dilutive effects of stock options and nonvested equity shares of common stock (in shares) | 0 | 0 | 19,000 |
Diluted weighted-average common shares outstanding in period (in shares) | 4,238,180 | 4,207,833 | 3,784,821 |
Basic net income (loss) per common share (in dollars per share) | $ (274.65) | $ (32.04) | $ 32.19 |
Diluted net income (loss) per common share (in dollars per share) | $ (274.65) | $ (32.04) | $ 32.03 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||
Cash paid for interest | $ 55,210 | $ 55,470 | $ 50,063 | |
Cash paid for income taxes | 0 | 0 | 0 | |
Cash paid for operating leases | 2,235 | 1,315 | ||
Operating leases | 957 | 14,999 | ||
Supplemental disclosures of non-cash investing and financing activities: | ||||
Accrued liabilities - oil and gas properties | 5,435 | 28,130 | 98,346 | |
Change in asset retirement obligations, net of disposals | (652) | (5,538) | 10,778 | |
Retirement of treasury stock | (669) | (1,729) | (1,535) | |
Properties exchanged in non-cash transactions | 4,753 | 4,561 | 0 | |
Issuance of common stock for 2018 Merger | 0 | 0 | $ 484,000 | |
Operating right-of-use asset | $ 7,796 | $ 8,145 | $ 14,000 |
Mergers, Acquisitions, Exchan_3
Mergers, Acquisitions, Exchanges and Divestitures - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 19, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Asset Retirement Obligations Disposition Of Properties | $ 143 | $ 7,668 | $ 351 | |
Business Acquisition, Pro Forma Revenue | 452,659 | 468,949 | ||
Asset retirement obligations | $ 7,400 | |||
Gain (Loss) on Disposition of Oil and Gas Property | (4,777) | (2,901) | (1,046) | |
Merger transaction expense | $ 25,891 | 4,492 | 7,991 | |
Business Acquisition, Pro Forma Net Income (Loss) | $ (131,407) | $ 125,281 | ||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax, Per Share, Basic | $ (31) | $ 30 | ||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax, Per Share, Diluted | $ (31) | $ 30 | ||
DJ Basin, Non-Core | ||||
Asset Retirement Obligations Disposition Of Properties | $ 7,700 | |||
Gain (Loss) on Disposition of Oil and Gas Property | $ (2,300) | |||
Fifth Creek | ||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 59,400 | |||
Business Combination, Pro Forma Information, Expenses of Acquiree since Acquisition Date, Actual | 44,200 | |||
Fair value of common stock issued | 484,000 | |||
Plus: Repayment of Fifth Creek debt | 53,900 | |||
Total purchase price | 537,900 | |||
Accounts payable and accrued liabilities | 25,782 | |||
Current unfavorable contract | 2,651 | |||
Other current liabilities | 13,797 | |||
Asset retirement obligations | 7,361 | |||
Long-term deferred tax liability | 137,707 | |||
Long-term unfavorable contract | 4,449 | |||
Other noncurrent liabilities | 2,354 | |||
Total purchase price plus liabilities assumed | 732,001 | |||
Cash | 543 | |||
Accounts receivable | 7,831 | |||
Proved oil and gas properties | 105,702 | |||
Unproved oil and gas properties | 609,568 | |||
Asset retirement obligations | 7,361 | |||
Furniture, equipment and other | 931 | |||
Other noncurrent assets | 65 | |||
Total asset value | $ 732,001 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,000,000 | |||
Acquisition-related Costs | Fifth Creek | ||||
Merger transaction expense | $ 4,000 |
Long-Term Debt - Outstanding De
Long-Term Debt - Outstanding Debt (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 765,000,000 | $ 765,000,000 |
Debt Issuance Costs | (4,566,000) | (6,089,000) |
Carrying Amount | 760,434,000 | 758,911,000 |
Amended Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 140,000,000 | 140,000,000 |
Debt Issuance Costs | 0 | 0 |
Carrying Amount | 140,000,000 | 140,000,000 |
7.0% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 350,000,000 | 350,000,000 |
Debt Issuance Costs | (1,535,000) | (2,372,000) |
Carrying Amount | $ 348,465,000 | 347,628,000 |
Debt, stated interest rate | 7.00% | |
Debt Instrument, Fair Value Disclosure | $ 141,200,000 | 335,000,000 |
8.75% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 275,000,000 | 275,000,000 |
Debt Issuance Costs | (3,031,000) | (3,717,000) |
Carrying Amount | $ 271,969,000 | 271,283,000 |
Debt, stated interest rate | 8.75% | |
Debt Instrument, Fair Value Disclosure | $ 121,000,000 | $ 251,200,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Principal amount | $ 765,000,000 | $ 765,000,000 | ||
Commitment fee percentage | 0.50% | |||
Line of Credit Facility, Interest Rate During Period | 3.20% | 4.00% | ||
Maximum Credit Amount, Maximum Commitments That Could Be Elected By Lenders | $ 185,000,000 | |||
Commitments and Contingencies | ||||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, interest rate above London Interbank Offered Rate | 1.50% | 2.50% | ||
Revolving credit facility interest rate percent above LIBOR alternate interest rate | 0.50% | 1.50% | ||
Commitment fee percentage | 0.375% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, interest rate above London Interbank Offered Rate | 2.50% | 3.50% | ||
Revolving credit facility interest rate percent above LIBOR alternate interest rate | 1.50% | 2.50% | ||
Commitment fee percentage | 0.50% | |||
Amended Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | $ 200,000,000 | $ 300,000,000 | |
Letters of credit issued amount | 21,000,000 | |||
Principal amount | 140,000,000 | 140,000,000 | ||
Line of Credit Facility, Required Availability under the Credit Facility | 50,000,000 | |||
Line of Credit Facility, Maximum Weekly Cash Balance | $ 35,000,000 | |||
Permitted Debt Resulting in Accelerated Maturity Date | 100,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 24,000,000 | |||
7.0% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 350,000,000 | 350,000,000 | ||
Debt, stated interest rate | 7.00% | |||
Debt Instrument, Fair Value Disclosure | $ 141,200,000 | 335,000,000 | ||
8.75% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 275,000,000 | 275,000,000 | ||
Debt, stated interest rate | 8.75% | |||
Debt Instrument, Fair Value Disclosure | $ 121,000,000 | $ 251,200,000 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 625,000,000 | |||
2020 | 7.0% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Par value of senior notes | 100.00% | |||
2020 | 8.75% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Par value of senior notes | 106.563% | |||
2021 | 8.75% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Par value of senior notes | 104.375% | |||
2022 | 8.75% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Par value of senior notes | 102.188% | |||
2023 | 8.75% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Par value of senior notes | 100.00% |
Asset Retirement Obligations -
Asset Retirement Obligations - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 19, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning of period | $ 25,709 | $ 29,655 | $ 17,586 | |
Liabilities incurred | 519 | 2,863 | 10,649 | |
Liabilities settled | (1,501) | (1,682) | (1,630) | |
Disposition of properties | (143) | (7,668) | (351) | |
Accretion expense | 1,788 | 1,592 | 1,291 | |
Revisions to estimate | 473 | 949 | 2,110 | |
End of period | 26,845 | 25,709 | 29,655 | |
Less: Current asset retirement obligations | 2,020 | 2,218 | 2,325 | |
Long-term asset retirement obligations | $ 24,825 | $ 23,491 | $ 27,330 | |
Asset Retirement Obligations Acquisition of Properties | $ 7,400 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Cash equivalents | $ 24,709 | $ 16,449 |
Deferred compensation plan | 910 | 2,033 |
Level 1 | ||
Financial Assets | ||
Deferred compensation plan | 910 | 2,033 |
Level 2 | ||
Financial Assets | ||
Deferred compensation plan | 0 | 0 |
Level 3 | ||
Financial Assets | ||
Deferred compensation plan | 0 | 0 |
Money Market Funds | Level 1 | ||
Financial Assets | ||
Cash equivalents | 0 | 0 |
Money Market Funds | Level 2 | ||
Financial Assets | ||
Cash equivalents | 0 | 0 |
Money Market Funds | Level 3 | ||
Financial Assets | ||
Cash equivalents | 0 | 0 |
Commodity Derivatives | ||
Financial Assets | ||
Commodity derivatives | 19,542 | 8,890 |
Financial Liabilities | ||
Commodity derivatives | 5,366 | 10,056 |
Commodity Derivatives | Level 1 | ||
Financial Assets | ||
Commodity derivatives | 0 | 0 |
Financial Liabilities | ||
Commodity derivatives | 0 | 0 |
Commodity Derivatives | Level 2 | ||
Financial Assets | ||
Commodity derivatives | 19,542 | 8,890 |
Financial Liabilities | ||
Commodity derivatives | 5,366 | 10,056 |
Commodity Derivatives | Level 3 | ||
Financial Assets | ||
Commodity derivatives | 0 | 0 |
Financial Liabilities | ||
Commodity derivatives | 0 | 0 |
Estimate of Fair Value Measurement | Money Market Funds | ||
Financial Assets | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurements [Line Items] | |||||
Proved Oil and Gas Properties, Net Book Value Prior to Impairment | $ 1,700,000 | ||||
Unproved Oil and Gas Properties, Net Book Value Prior to Impairment | 256,000 | ||||
Proved Oil And Gas Properties | |||||
Fair Value Measurements [Line Items] | |||||
Non-cash impairment of oil and gas properties | 1,200,000 | $ 1,188,566 | $ 0 | $ 0 | |
Unproved Oil And Gas Properties | |||||
Fair Value Measurements [Line Items] | |||||
Non-cash impairment of oil and gas properties | $ 17,900 | 76,300 | $ 94,209 | $ 3,854 | $ 0 |
Level 3 | Proved Oil And Gas Properties | |||||
Fair Value Measurements [Line Items] | |||||
Oil and Gas Property, Successful Effort Method, Net | 500,000 | ||||
Level 3 | Unproved Oil And Gas Properties | |||||
Fair Value Measurements [Line Items] | |||||
Oil and Gas Property, Successful Effort Method, Net | $ 179,700 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Unobservable Inputs (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Unobservable Input, Level 3, Oil Price Range | $29 to $60 |
Fair Value, Unobservable Input, Level 3, Gas Price Range | $2.03 to $2.52 |
Fair Value, Unobservable Input, Level 3, NGL Price Range, % of Oil Price | 24% to 31% |
Fair Value, Unobservable Input, Level 3, Percent of PDP Reserves Adjusted | 100 |
Fair Value, Unobservable Input, Level 3, Percent of PDN Reserves Adjusted | 95 |
Fair Value, Unobservable Input, Level 3, Discount Rate | 11 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Measurements [Line Items] | ||
Debt Instrument, Face Amount | $ 765,000,000 | $ 765,000,000 |
8.75% Senior Notes | ||
Fair Value Measurements [Line Items] | ||
Debt, stated interest rate | 8.75% | |
Debt Instrument, Fair Value Disclosure | $ 121,000,000 | 251,200,000 |
Debt Instrument, Face Amount | $ 275,000,000 | 275,000,000 |
7.0% Senior Notes | ||
Fair Value Measurements [Line Items] | ||
Debt, stated interest rate | 7.00% | |
Debt Instrument, Fair Value Disclosure | $ 141,200,000 | 335,000,000 |
Debt Instrument, Face Amount | 350,000,000 | 350,000,000 |
Amended Credit Facility | ||
Fair Value Measurements [Line Items] | ||
Debt Instrument, Face Amount | $ 140,000,000 | $ 140,000,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | $ 19,542 | $ 8,890 |
Gross Amounts Offset in the Balance Sheet | (1,065) | (4,974) |
Net Amounts of Assets Presented in the Balance Sheet | 18,477 | 3,916 |
Gross Amounts of Recognized Liabilities | (5,366) | (10,056) |
Gross Amounts Offset in the Balance Sheet | 1,065 | 4,974 |
Net Amounts of Liabilities Presented in the Balance Sheet | (4,301) | (5,082) |
Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | 19,410 | 8,477 |
Gross Amounts Offset in the Balance Sheet | (933) | (4,561) |
Net Amounts of Assets Presented in the Balance Sheet | 18,477 | 3,916 |
Other noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets | 132 | 413 |
Gross Amounts Offset in the Balance Sheet | (132) | (413) |
Net Amounts of Assets Presented in the Balance Sheet | 0 | 0 |
Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | (2,347) | (8,972) |
Gross Amounts Offset in the Balance Sheet | 933 | 4,561 |
Net Amounts of Liabilities Presented in the Balance Sheet | (1,414) | (4,411) |
Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities | (3,019) | (1,084) |
Gross Amounts Offset in the Balance Sheet | 132 | 413 |
Net Amounts of Liabilities Presented in the Balance Sheet | $ (2,887) | $ (671) |
Derivative Instruments - Financ
Derivative Instruments - Financial Instruments for Hedging Volume (Details) | Dec. 31, 2020$ / unitbbl |
Hedge Period Ending Next Year | Crude Oil [Member] | Swaps | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedge Backed Oil Volume | bbl | 3,098,000 |
Derivative, Average Forward Price | 54.30 |
Hedge Period Ending Next Year | Crude Oil [Member] | Oil Roll Swaps | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedge Backed Oil Volume | bbl | 973,500 |
Derivative, Average Forward Price | (0.01) |
Hedge Period Ending Next Year | Crude Oil [Member] | Swaption | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedge Backed Oil Volume | bbl | 0 |
Derivative, Average Forward Price | 0 |
Hedge Period Ending Next Year | Natural Gas [Member] | Swaps | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, Average Forward Price | 2.13 |
Hedge Backed Gas Volume | bbl | 5,790,000 |
Hedge Period Ending Next Year | Natural Gas and Natural Gas Liquids [Member] | Cashless Collars | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedge Backed Gas Volume | bbl | 1,800,000 |
Derivative, Average Floor Price | 2 |
Derivative, Average Ceiling Price | 4.25 |
Hedge Period Ending In Two Years | Crude Oil [Member] | Swaps | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedge Backed Oil Volume | bbl | 0 |
Derivative, Average Forward Price | 0 |
Hedge Period Ending In Two Years | Crude Oil [Member] | Oil Roll Swaps | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedge Backed Oil Volume | bbl | 0 |
Derivative, Average Forward Price | 0 |
Hedge Period Ending In Two Years | Crude Oil [Member] | Swaption | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedge Backed Oil Volume | bbl | 1,092,000 |
Derivative, Average Forward Price | 55.08 |
Hedge Period Ending In Two Years | Natural Gas [Member] | Swaps | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, Average Forward Price | 2.13 |
Hedge Backed Gas Volume | bbl | 3,650,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020counterparty | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Counterparties With Hedges In Place Number | 7 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforward, Annual limitation | $ 11,700 | |||
Unrealized Built In Gain, For Realizing Future NOLs | 176,900 | |||
U.S. federal income tax rate | 21.00% | 35.00% | ||
Federal tax net operating loss carryforwards | $ 554,700 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 553,300 | |||
Change in valuation allowance | 0 | $ 0 | (64,994) | |
Federal NOLs With No Expirations | 98,900 | |||
State NOLs With No Expirations | 97,000 | |||
Deferred income taxes | $ 1,556 | $ 97,418 | ||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (Decrease) in Operating Loss Carryforward | (274,700) | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (Decrease) in Operating Loss Carryforward | (13,100) | |||
Increase (Decrease) in Tax Credit Carryforward | (8,200) | |||
Fifth Creek | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred income taxes | $ 137,700 |
Income Taxes - Expense for Inco
Income Taxes - Expense for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 0 | $ 0 | $ 0 |
Current State | 0 | 0 | 0 |
Deferred Federal | 83,755 | 35,806 | (1,777) |
Deferred State | 12,107 | 6,310 | (50) |
Income tax (expense) benefit | $ 95,862 | $ 42,116 | $ (1,827) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Actual Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax (expense) benefit at the federal statutory rate | $ 264,567 | $ 37,159 | $ (25,840) |
State income tax (expense) benefit, net of federal tax effect | 43,956 | 6,002 | (5,144) |
Nondeductible equity-based compensation | 2,531 | 1,895 | 3,101 |
Nondeductible costs in connection with 2018 Merger | 0 | 0 | (2,545) |
Other permanent items | (449) | (157) | (418) |
Change in valuation allowance | (209,885) | 628 | 36,321 |
Change in valuation allowance - Section 382 | 0 | 0 | 64,994 |
Change in apportioned state tax rates | (204) | (275) | 723 |
Change in ownership - Section 382 | 0 | 0 | (64,994) |
Other, net | 0 | 104 | (377) |
Income tax (expense) benefit | $ 95,862 | $ 42,116 | $ (1,827) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Net operating loss carryforward | $ 136,373 | $ 112,409 |
Oil and gas properties | 79,100 | 0 |
Stock-based compensation | 736 | 1,368 |
Financing obligation | 1,921 | 2,163 |
Accrued expenses | 0 | 38 |
Derivative instruments | 0 | 287 |
Other assets | 6,302 | 148 |
Capital loss carryforward | 869 | 890 |
Less: Valuation allowance | (222,473) | (12,587) |
Total long-term deferred tax assets | 2,828 | 104,716 |
Oil and gas properties | 0 | (201,396) |
Long-term derivative instruments | (3,477) | 0 |
Prepaid expenses | (811) | (462) |
Deferred compensation | (96) | (276) |
Total long-term deferred tax assets (liabilities) | (4,384) | (202,134) |
Net long-term deferred tax assets (liabilities) | $ (1,556) | $ (97,418) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 75,000,000 | ||
Preferred stock, par value | $ 0.001 | ||
Common stock, shares authorized | 8,000,000 | 8,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding | 0 | ||
Preferred stock, shares issued | 0 | ||
Number of Shares Sold, Equity Distribution Agreement | 0 | ||
Common stock, shares issued | 4,305,075 | 4,273,391 | |
7.0% Senior Notes | |||
Class of Stock [Line Items] | |||
Debt, stated interest rate | 7.00% | ||
Merger | |||
Class of Stock [Line Items] | |||
Common stock, shares issued | 0 | 0 | 2,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares at beginning of period | 4,273,391 | 4,249,543 | 2,207,272 |
Shares issued for directors' fees | 12,770 | 3,164 | 3,751 |
Shares issued for nonvested shares of common stock | 40,572 | 36,954 | 46,642 |
Shares retired or forfeited | (21,658) | (16,270) | (8,122) |
Shares at end of period | 4,305,075 | 4,273,391 | 4,249,543 |
Shares at beginning of period | 0 | 0 | 0 |
Treasury stock acquired | 14,294 | 14,380 | 5,716 |
Treasury stock retired | (14,294) | (14,380) | (5,716) |
Shares at end of period | 0 | 0 | 0 |
Common stock, shares issued | 4,305,075 | 4,273,391 | |
Merger | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock, shares issued | 0 | 0 | 2,000,000 |
Equity Incentive Compensation_3
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / sharesageshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)integer$ / sharesshares | Dec. 31, 2015unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of common stock options (in shares) | shares | 0 | 0 | ||
Unrecognized compensation cost | $ | $ 3,100 | |||
Weighted-average period (years) | 1 year 6 months | |||
Non-cash stock based compensation | $ | $ 3,487 | $ 8,622 | $ 7,226 | |
Minimum age for employees to be eligible under employee directed savings plan | age | 21 | |||
Percentage of employee's contribution matched by the company | 100.00% | |||
Percentage of employee's pretax income | 6.00% | |||
Cash and common stock contributions | $ | $ 1,000 | $ 1,300 | $ 1,200 | |
Percentage of employee's cash compensation reached under cash matching contributions | 6.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 0 | |||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
2012 Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 233,455 | |||
Number of shares available for grant | shares | 232,311 | |||
2016 Performance Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | integer | 23 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ | $ 0 | |||
Adjustments to Additional Paid in Capital, Other | $ | $ 1,800 | |||
Percentage Of Original Award Converted To Nonvested Common Stock Award | 89.00% | |||
Number Of Units Converted To Nonvested Common Stock | integer | 11,849 | |||
Number Of Shares, Converted From Performance Cash Units | shares | 10,546 | |||
Number Of Units Not Converted To Nonvested Common Stock | integer | 1,303 | |||
2015 Performance Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted percentage of stockholders return related to performance goals | 60.00% | |||
Performance goals percentage for change in discretionary cash flows | 40.00% | |||
Vested, Shares | shares | 5,733 | |||
Percent of Performance Based Shares Vested | 104.10% | |||
Maximum Number Of Cash Units Vest As Percentage Of Performance Cash Units Granted | 200.00% | |||
Number Of Performance Cash Units Granted | unit | 8,447 | |||
2015 Performance Program | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance-based awards allowed to vest within a year | 25.00% | |||
2015 Performance Program | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of total grant that will vest for metrics met at stretch level | 200.00% | |||
Percentage of total grant that will vest for metrics met at target level | 100.00% | |||
Percentage of performance-based awards allowed to vest within a year | 50.00% | |||
2017 Performance Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected | integer | 34 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ | $ 500 | |||
Adjustments to Additional Paid in Capital, Other | $ | $ 900 | |||
Percentage Of Original Award Converted To Nonvested Common Stock Award | 100.00% | |||
Number Of Units Converted To Nonvested Common Stock | integer | 12,381 | |||
Number Of Shares, Converted From Performance Cash Units | shares | 12,381 | |||
Nonvested Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 40,572 | 36,954 | 23,716 | |
Non-cash stock based compensation | $ | $ 4,106 | $ 6,601 | $ 6,036 | |
Vested, Shares | shares | 33,805 | 33,939 | 13,890 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 1,600 | $ 4,100 | $ 3,700 | |
Nonvested Equity Common Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 1 year | |||
Non-cash stock based compensation | $ | $ 543 | 1,177 | 1,138 | |
Nonvested Performance Cash Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Deferred Compensation Cash-based Arrangements, Liability, Classified, Noncurrent | $ | $ 0 | $ 1,200 | $ 300 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 71,388 | 40,530 | 18,706 | |
Vested, Shares | shares | 0 | 0 | 5,733 | |
Fair Value Performance Based Cash Unit Awards Vested | $ | $ 0 | $ 0 | $ 1,500 | |
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 10,618 | 12,862 | 4,525 | |
Vested, Shares | shares | 12,770 | 3,164 | 3,752 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 200 | $ 300 | $ 1,100 |
Equity Incentive Compensation_4
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Non-Cash Stock-Based Compensation Cost Related to Equity Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Based Compensation [Line Items] | |||
Non-cash stock based compensation | $ 3,487 | $ 8,622 | $ 7,226 |
Nonvested Common Stock | |||
Stock Based Compensation [Line Items] | |||
Non-cash stock based compensation | 4,106 | 6,601 | 6,036 |
Nonvested Equity Common Stock Units | |||
Stock Based Compensation [Line Items] | |||
Non-cash stock based compensation | 543 | 1,177 | 1,138 |
Nonvested Performance Cash Units | |||
Stock Based Compensation [Line Items] | |||
Cash Unit Based Compensation Awards | $ (1,162) | $ 844 | $ 52 |
Equity Incentive Compensation_5
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Share-Based Option Activity (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Exercised (in shares) | 0 | 0 |
Outstanding at end of period (in shares) | 0 |
Equity Incentive Compensation_6
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Nonvested Equity Shares of Common Stock (Details) - Nonvested Common Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Beginning, Shares | 59,369 | 58,243 | 27,897 |
Granted, Shares | 40,572 | 36,954 | 23,716 |
Modified, Shares | 0 | 0 | 22,926 |
Vested, Shares | (33,805) | (33,939) | (13,890) |
Forfeited or expired, Shares | (7,468) | (1,889) | (2,406) |
Outstanding Ending, Shares | 58,668 | 59,369 | 58,243 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding Beginning, Weighted-average Grant Date Fair-Value | $ 190.74 | $ 263.50 | $ 348.48 |
Granted, Weighted-average Grant Date Fair-Value | 57 | 131.95 | 273.50 |
Modified, Weighted-average Grant Date Fair-Value | 0 | 0 | 242 |
Vested, Weighted-average Grant Date Fair-Value | 212.12 | 249.50 | 412 |
Forfeited or expired, Weighted-average Grant Date Fair-Value | 76.15 | 245.50 | 296.50 |
Outstanding Ending, Weighted-average Grant Date Fair-Value | $ 100.32 | $ 190.74 | $ 263.50 |
Equity Incentive Compensation_7
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Nonvested Equity Shares of Common Stock Issued for Payment of Director Fees (Details) - Director - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Beginning, Shares | 15,922 | 6,224 | 5,451 |
Granted, Shares | 10,618 | 12,862 | 4,525 |
Vested, Shares | (12,770) | (3,164) | (3,752) |
Forfeited or expired, Shares | (1,588) | 0 | 0 |
Outstanding Ending, Shares | 12,182 | 15,922 | 6,224 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding Beginning, Weighted-average Grant Date Fair-Value | $ 163.61 | $ 362.97 | $ 318.34 |
Granted, Weighted-average Grant Date Fair-Value | 13.48 | 93.78 | 291.50 |
Vested, Weighted-average Grant Date Fair-Value | 131.38 | 271.99 | 212 |
Forfeited or expired, Weighted-average Grant Date Fair-Value | 12.69 | 0 | 0 |
Outstanding Ending, Weighted-average Grant Date Fair-Value | $ 86.21 | $ 163.61 | $ 362.97 |
Equity Incentive Compensation_8
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Nonvested Performance-based Cash Units (Details) - Nonvested Performance Cash Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Beginning, Shares | 51,521 | 18,191 | 30,962 |
Granted, Shares | 71,388 | 40,530 | 18,706 |
Share-Based Compensation, Performance Goal Adjustment | 0 | 0 | 226 |
Share Based Compensation, Modification | 0 | 0 | (24,230) |
Vested, Shares | 0 | 0 | (5,733) |
Forfeited or expired, Shares | (122,909) | (7,200) | (1,740) |
Outstanding Ending, Shares | 0 | 51,521 | 18,191 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, Weighted-average Grant Date Fair-Value | $ 0 | $ 79.50 | $ 61.50 |
Equity Incentive Compensation_9
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Deferred Compensation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Compensation Liability [Roll Forward] | ||
Beginning deferred compensation liability balance | $ 2,033 | $ 1,392 |
Employee contributions | 158 | 276 |
Company matching contributions | 74 | 150 |
Distributions | (1,319) | (193) |
Participant earnings (losses) | 51 | 408 |
Ending deferred compensation liability balance | 997 | 2,033 |
Deferred Compensation Liability [Abstract] | ||
Amount to be paid within one year | 211 | 844 |
Remaining balance to be paid beyond one year | $ 786 | $ 1,189 |
Equity Incentive Compensatio_10
Equity Incentive Compensation Plans and Other Long-term Incentive Programs - Deferred Compensation Investment Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation Liability [Roll Forward] | ||
Beginning investment balance | $ 2,033 | $ 1,392 |
Investment purchases | 145 | 426 |
Distributions | (1,319) | (193) |
Earnings (losses) | 51 | 408 |
Ending investment balance | $ 910 | $ 2,033 |
Significant Customers and Oth_2
Significant Customers and Other Concentrations - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020Customercounterparty | Dec. 31, 2019Customer | Dec. 31, 2018Customer | |
Concentration Risk [Line Items] | |||
Counterparties With Hedges In Place Number | counterparty | 7 | ||
Sales Revenue, Product Line [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Customers account for production revenues | Customer | 4 | 3 | 4 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2020 |
Leases [Abstract] | |
Term of operating lease contract | 7 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,099 | $ 2,239 |
Short-term lease cost | 3,625 | 15,928 |
Variable lease cost | 1,310 | 654 |
Total lease cost | $ 7,034 | $ 18,821 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | |||
Right-of-use assets | $ 9,820 | $ 9,287 | |
Accumulated amortization | (2,024) | (1,142) | |
Total right-of-use assets | 7,796 | 8,145 | $ 14,000 |
Current lease liabilities | (1,979) | (1,287) | |
Noncurrent lease liabilities | (12,018) | (13,195) | |
Total lease liabilities | $ 13,997 | $ 14,482 | |
Weighted-average remaining lease term of operating leases | 6 years 9 months 18 days | 7 years 9 months 18 days | |
Weighted-average discount rate of operating leases (as a percent) | 5.60% | 5.60% | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherNoncurrentLiabilitiesMember | us-gaap:OtherNoncurrentLiabilitiesMember |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 2,691 | $ 2,056 |
2022 | 2,413 | 2,355 |
2023 | 2,167 | 2,044 |
2024 | 2,078 | 2,024 |
2025 | 2,196 | 2,078 |
Thereafter | 5,380 | 7,577 |
Total | 16,925 | 18,134 |
Less: Interest | (2,928) | (3,652) |
Present value of lease liabilities | $ 13,997 | $ 14,482 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)ainteger | |
Contingencies And Commitments [Line Items] | |
Number of Firm Transportation Contracts | 2 |
Number Of Firm Pipeline Transportation Contracts | integer | 1 |
Number of Wells Due by July 2022 | integer | 2 |
Number of Wells Due by July 2023 | integer | 3 |
Acreage to be Assigned if Drilling Commitment Not Met | a | 13,000 |
Expense Due To Minimum Volume Commitment, Fresh Water | $ 1 |
Drilling Commitment Due 2022 | 10.2 |
Drilling Commitment Due 2023 | 15.3 |
Liabilities Subject to Compromise, Environmental Contingencies | $ 1.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Gross Future Minimum Transportation Demand and Firm Processing Charges (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 19,549 |
2022 | 13,064 |
2023 | 14,600 |
2024 | 14,640 |
2025 | 4,800 |
Thereafter | 0 |
Total | $ 66,653 |
Commitments and Contingencies_3
Commitments and Contingencies - Other Commitments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 3,651 |
2022 | 11,485 |
2023 | 16,345 |
Thereafter | 0 |
Total | $ 31,481 |