Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-03262 | |
Entity Registrant Name | COMSTOCK RESOURCES, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 94-1667468 | |
Entity Address, Address Line One | 5300 Town and Country Blvd. | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Frisco | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75034 | |
City Area Code | 972 | |
Local Phone Number | 668-8800 | |
Title of 12(b) Security | Common Stock, par value $0.50 (per share) | |
Trading Symbol | CRK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 232,905,868 | |
Amendment Flag | false | |
Entity Central Index Key | 0000023194 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 12,137 | $ 30,663 |
Accounts receivable: | ||
Oil and gas sales | 198,261 | 217,149 |
Joint interest operations | 34,694 | 29,755 |
From affiliates | 6,658 | 20,834 |
Derivative financial instruments | 2,601 | 5,258 |
Other current assets | 13,671 | 15,077 |
Total current assets | 268,022 | 318,736 |
Oil and natural gas properties, successful efforts method: | ||
Proved | 4,988,567 | 4,756,394 |
Unproved | 298,091 | 302,129 |
Other | 6,602 | 6,690 |
Accumulated depreciation, depletion and amortization | (1,164,366) | (1,058,067) |
Net property and equipment | 4,128,894 | 4,007,146 |
Goodwill | 335,897 | 335,897 |
Derivative financial instruments | 10,008 | 0 |
Operating lease right-of-use assets | 6,879 | 6,450 |
Total assets | 4,749,700 | 4,668,229 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 318,736 | 314,569 |
Accrued costs | 103,322 | 135,026 |
Operating leases | 2,784 | 2,444 |
Derivative financial instruments | 513,645 | 181,945 |
Total current liabilities | 938,487 | 633,984 |
Long-term debt | 2,534,460 | 2,615,235 |
Deferred income taxes | 172,629 | 197,417 |
Derivative financial instruments | 0 | 4,042 |
Long-term operating leases | 4,167 | 4,075 |
Reserve for future abandonment costs | 26,416 | 25,673 |
Other non-current liabilities | 24 | 24 |
Total liabilities | 3,676,183 | 3,480,450 |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series B Convertible Preferred stock — 5,000,000 shares authorized, 175,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 175,000 | 175,000 |
Stockholders' equity: | ||
Common stock—$0.50 par, 400,000,000 shares authorized, 232,919,869 and 232,924,646 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 116,460 | 116,462 |
Additional paid-in capital | 1,101,838 | 1,100,359 |
Accumulated deficit | (319,781) | (204,042) |
Total stockholders' equity | 898,517 | 1,012,779 |
Total liabilities and stockholders' equity | $ 4,749,700 | $ 4,668,229 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 175,000 | 175,000 |
Preferred stock, shares outstanding (in shares) | 175,000 | 175,000 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 232,919,869 | 232,924,646 |
Common stock, shares outstanding (in shares) | 232,919,869 | 232,924,646 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total oil and gas sales | $ 524,841 | $ 340,485 |
Operating expenses: | ||
Production and ad valorem taxes | 13,820 | 9,652 |
Gathering and transportation | 32,093 | 29,458 |
Lease operating | 26,186 | 24,563 |
Depreciation, depletion and amortization | 106,728 | 109,128 |
General and administrative | 8,223 | 8,028 |
Exploration | 1,021 | 0 |
Gain on sale of assets | (2) | (70) |
Total operating expenses | 188,069 | 180,759 |
Operating income | 336,772 | 159,726 |
Other income (expenses): | ||
Loss from derivative financial instruments | (437,493) | (21,749) |
Other income | 4,166 | 281 |
Interest expense | (46,491) | (63,811) |
Loss on early retirement of debt | 0 | (238,539) |
Total other expenses | (479,818) | (323,818) |
Loss before income taxes | (143,046) | (164,092) |
Benefit from income taxes | 31,622 | 29,967 |
Net loss | (111,424) | (134,125) |
Preferred stock dividends | (4,315) | (4,315) |
Net loss available to common stockholders | $ (115,739) | $ (138,440) |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.50) | $ (0.60) |
Diluted (in dollars per share) | $ (0.50) | $ (0.60) |
Weighted average shares outstanding: | ||
Basic (in shares) | 231,976 | 231,377 |
Diluted (in shares) | 231,976 | 231,377 |
Natural gas sales | ||
Revenues: | ||
Total oil and gas sales | $ 522,957 | $ 323,960 |
Oil sales | ||
Revenues: | ||
Total oil and gas sales | $ 1,884 | $ 16,525 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Earnings (Deficit) |
Beginning balance (in shares) at Dec. 31, 2020 | 232,415 | |||
Beginning balance at Dec. 31, 2020 | $ 1,266,773 | $ 116,206 | $ 1,095,384 | $ 55,183 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation (in shares) | (4) | |||
Stock-based compensation | 1,690 | 1,690 | ||
Stock issuance costs | (30) | (30) | ||
Net income (loss) | (134,125) | (134,125) | ||
Payment of preferred dividends | (4,315) | (4,315) | ||
Ending balance (in shares) at Mar. 31, 2021 | 232,411 | |||
Ending balance at Mar. 31, 2021 | 1,129,993 | $ 116,206 | 1,097,044 | (83,257) |
Beginning balance (in shares) at Dec. 31, 2021 | 232,925 | |||
Beginning balance at Dec. 31, 2021 | 1,012,779 | $ 116,462 | 1,100,359 | (204,042) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation (in shares) | (5) | |||
Stock-based compensation | 1,477 | $ (2) | 1,479 | |
Net income (loss) | (111,424) | (111,424) | ||
Payment of preferred dividends | (4,315) | (4,315) | ||
Ending balance (in shares) at Mar. 31, 2022 | 232,920 | |||
Ending balance at Mar. 31, 2022 | $ 898,517 | $ 116,460 | $ 1,101,838 | $ (319,781) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (111,424) | $ (134,125) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Deferred income taxes | (24,788) | (30,150) |
Gain on sale of assets | (2) | (70) |
Depreciation, depletion and amortization | 106,728 | 109,128 |
Loss on derivative financial instruments | 437,493 | 21,749 |
Cash settlements of derivative financial instruments | (117,186) | (8,677) |
Amortization of debt discount and issuance costs | 4,225 | 8,489 |
Stock-based compensation | 1,495 | 1,690 |
Loss on early retirement of debt | 0 | 238,539 |
(Increase) decrease in accounts receivable | 28,125 | (7,032) |
Decrease in other current assets | 1,406 | 4,778 |
Decrease in accounts payable and accrued expenses | (42,033) | (11,047) |
Net cash provided by operating activities | 284,039 | 193,272 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (213,277) | (165,751) |
Proceeds from sales of assets | 45 | 200 |
Net cash used for investing activities | (213,232) | (165,551) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on bank credit facility | 95,000 | 145,000 |
Repayments on bank credit facility | (180,000) | (95,000) |
Issuance of Senior Notes | 0 | 1,257,500 |
Retirement of Senior Notes | 0 | (1,263,651) |
Preferred stock dividends paid | (4,315) | (4,315) |
Debt and stock issuance costs | 0 | (20,092) |
Income tax withholdings on equity awards | (18) | 0 |
Net cash provided by (used for) financing activities | (89,333) | 19,442 |
Net increase (decrease) in cash and cash equivalents | (18,526) | 47,163 |
Cash and cash equivalents, beginning of period | 30,663 | 30,272 |
Cash and cash equivalents, end of period | $ 12,137 | $ 77,435 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Basis of Presentation These unaudited consolidated financial statements include the accounts of Comstock Resources, Inc. and its wholly-owned subsidiaries (collectively, "Comstock" or the "Company"). In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock as of March 31, 2022, and the related results of operations and cash flows for the periods being presented. Net income and comprehensive income are the same in all periods presented. All adjustments are of a normal recurring nature unless otherwise disclosed. The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to those rules and regulations, although Comstock believes that the disclosures made are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in Comstock's Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the period through March 31, 2022 are not necessarily an indication of the results expected for the full year. Property and Equipment The Company follows the successful efforts method of accounting for its oil and natural gas properties. Costs incurred to acquire oil and gas leasehold are capitalized. The Company assesses the need for an impairment of the capitalized costs for its proved oil and gas properties on a property basis. No impairments were recognized to adjust the carrying value of the Company's proved oil and gas properties during any of the periods presented. Unproved oil and gas properties are also periodically assessed and any impairment in value is charged to expense. The costs related to unproved properties are transferred to proved oil and gas properties and amortized on an equivalent unit-of-production basis when they are reflected in proved oil and natural gas reserves. Exploratory drilling costs are initially capitalized as proved property but charged to expense if and when the well is determined not to have found commercial quantities of proved oil and gas reserves. Exploratory drilling costs are evaluated within a one-year period after the completion of drilling. The Company determines the fair values of its oil and gas properties using a discounted cash flow model and proved and risk-adjusted probable oil and natural gas reserves. Undrilled acreage can also be valued based on sales transactions in comparable areas. Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for oil and natural gas prices, production costs, capital expenditures, and future production as well as estimated proved oil and gas reserves and risk-adjusted probable oil and natural gas reserves. Management's oil and natural gas price outlook is developed based on third-party longer-term price forecasts as of each measurement date. The expected future net cash flows are discounted using an appropriate discount rate in determining a property's fair value. It is reasonably possible that the Company's estimates of undiscounted future net cash flows attributable to its oil and gas properties may change in the future. The primary factors that may affect estimates of future cash flows include future adjustments, both positive and negative, to proved and appropriate risk-adjusted probable oil and gas reserves, results of future drilling activities, future prices for oil and natural gas, and increases or decreases in production and capital costs. As a result of these changes, there may be future impairments in the carrying values of these or other properties. Goodwill The Company had goodwill of $335.9 million as of March 31, 2022 that was recorded in 2018. The Company is not required to amortize goodwill as a charge to earnings; however, the Company is required to conduct an annual review of goodwill for impairment. The Company performs an annual assessment of goodwill on October 1 of each year and performs interim assessments if indicators of impairment are present. If the carrying value of goodwill exceeds the fair value, an impairment charge would be recorded for the difference between fair value and carrying value. Leases The Company has right-of-use lease assets of $6.9 million related to its corporate office lease, certain office equipment and leased vehicles used in oil and gas operations with corresponding short-term and long-term liabilities. The value of the lease assets and liabilities are determined based upon discounted future minimum cash flows contained within each of the respective contracts. The Company determines if contracts contain a lease at inception of the contract. To the extent that contract terms representing a lease are identified, leases are identified as being either an operating lease or a finance-type lease. Comstock currently has no finance-type leases. Right-of-use lease assets representing the Company's right to use an underlying asset for the lease term and the related lease liabilities represent our obligation to make lease payments under the terms of the contracts. Short-term leases that have an initial term of one year or less are not capitalized; however, amounts paid for those leases are included as part of its lease cost disclosures. Short-term lease costs exclude expenses related to leases with a lease term of one month or less. Leases for the right to explore for and develop oil and natural gas reserves and the related rights to use the land associated with those leases are reflected as oil and gas properties. Comstock contracts for a variety of equipment used in its oil and natural gas exploration and development activities. Contract terms for this equipment vary broadly, including the contract duration, pricing, scope of services included along with the equipment, cancellation terms, and rights of substitution, among others. The Company's drilling and completion operations routinely change due to changes in commodity prices, demand for oil and natural gas, and the overall operating and economic environment. Accordingly, Comstock manages the terms of its contracts for drilling rigs and completions equipment so as to allow for maximum flexibility in responding to these changing conditions. The Company's completion contracts do not qualify as leases. The Company's rig contracts are presently either for periods of less than one year, or they are on terms that provide for cancellation with 45 days advance notice without a specified expiration date. Accordingly, the Company has elected not to recognize right-of-use lease assets for these rig contracts. The costs associated with drilling rig operations are accounted for under the successful efforts method, which generally require that these costs be capitalized as part of our proved oil and natural gas properties on our balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense. Lease costs recognized during the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 (In thousands) Operating lease cost included in general and administrative expense $ 435 $ 429 Operating lease cost included in lease operating expense 270 232 Short-term lease cost (drilling rig costs included in proved oil and gas properties) 11,035 11,458 $ 11,740 $ 12,119 Cash payments for operating leases associated with right-of-use assets included in cash provided by operating activities were $0.7 million for the three months ended March 31, 2022 and 2021. As of March 31, 2022 and December 31, 2021, the operating leases had a weighted-average term of 2.5 years and 2.7 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 2.7%. As of March 31, 2022, the Company also had expected future payments for contracted drilling services of $11.6 million. As of March 31, 2022, expected future payments related to contracts that contain operating leases were as follows: (In thousands) April 1 to December 31, 2022 $ 2,135 2023 2,673 2024 2,321 2025 67 2026 1 Total lease payments 7,197 Imputed interest (246) Total lease liability $ 6,951 Accrued Costs Accrued costs at March 31, 2022 and December 31, 2021 consisted of the following: As of March 31, 2022 December 31, 2021 (In thousands) Accrued drilling costs $ 34,494 $ 19,995 Accrued interest payable 26,643 60,305 Accrued transportation costs 21,119 22,859 Accrued income and other taxes 12,233 15,655 Accrued employee compensation 4,573 12,320 Accrued lease operating expenses 2,783 2,036 Other 1,477 1,856 $ 103,322 $ 135,026 Reserve for Future Abandonment Costs Comstock's asset retirement obligations relate to future plugging and abandonment expenses on its oil and gas properties and related facilities disposal. The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented: Three Months Ended 2022 2021 (In thousands) Reserve for future abandonment costs at beginning of period $ 25,673 $ 19,290 New wells placed on production 381 328 Accretion expense 362 297 Reserve for future abandonment costs at end of period $ 26,416 $ 19,915 Derivative Financial Instruments and Hedging Activities All of the Company's derivative financial instruments are used for risk management purposes and, by policy, none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. The Company classifies the fair value amounts of derivative financial instruments as net current or noncurrent assets or liabilities, whichever the case may be, by commodity contract. None of the Company's derivative contracts were designated as cash flow hedges. All of Comstock's natural gas derivative financial instruments, except for certain basis swaps, are tied to the Henry Hub-NYMEX price index. The Company had the following oil and natural gas price derivative financial instruments at March 31, 2022: Future Production Period Nine Months Ending December 31, 2022 Year Ending December 31, 2023 Total Natural Gas Swap Contracts: Volume (MMBtu) 88,000,000 — 88,000,000 Average Price per MMBtu $2.68 $2.68 Natural Gas Collar Contracts: Volume (MMBtu) 104,925,000 128,925,000 233,850,000 Average Price per MMBtu: Average Ceiling $3.88 $9.85 $7.17 Average Floor $2.62 $2.98 $2.82 Natural Gas Basis Swap Contracts: Volume (MMBtu) 8,250,000 (1) — 8,250,000 (1) Average Price per MMBtu ($0.16) ($0.16) _____________________________ (1) Contracts fix the differentials between NYMEX Henry Hub and the Columbia Gulf Mainline indices. The aggregate fair value of the Company's derivative instruments are presented on a gross basis in the accompanying consolidated balance sheets. The classification of derivative financial instruments between assets and liabilities, consists of the following: As of Type Consolidated Balance Sheet Location March 31, 2022 December 31, 2021 (In thousands) Asset Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ 2,601 $ 4,528 Oil price derivatives Derivative Financial Instruments – current — 730 $ 2,601 $ 5,258 Natural gas price derivatives Derivative Financial Instruments – long-term $ 10,008 $ — Liability Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ 513,645 $ 181,215 Oil price derivatives Derivative Financial Instruments – current — 730 $ 513,645 $ 181,945 Natural gas price derivatives Derivative Financial Instruments – long-term $ — $ 4,042 The Company recognized cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses). Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows: Gain (Loss) on Derivatives Three Months Ended March 31, 2022 2021 (In thousands) Natural gas price derivatives $ (437,493) $ (18,877) Oil price derivatives — (3,544) Interest rate derivatives — 672 $ (437,493) $ (21,749) Stock-Based Compensation Comstock accounts for employee stock-based compensation under the fair value method. Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period and included in general and administrative expenses for awards of restricted stock and performance stock units ("PSUs") to the Company's employees and directors. The Company recognized $1.5 million and $1.7 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and PSUs to its employees and directors during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, Comstock had 943,386 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $5.74 per share. Total unrecognized compensation cost related to unvested restricted stock grants of $3.1 million as of March 31, 2022 is expected to be recognized over a period of 1.6 years. As of March 31, 2022, Comstock had 1,049,910 PSUs outstanding at a weighted average grant date fair value of $8.11 per unit. The number of shares of common stock to be issued related to the PSUs is based on the Company's stock price performance as compared to its peers which could result in the issuance of anywhere from zero to 2,099,820 shares of common stock. Total unrecognized compensation cost related to these grants of $2.7 million as of March 31, 2022 is expected to be recognized over a period of 1.5 years. Revenue Recognition Comstock produces oil and natural gas and reports revenues separately for each of these two primary products in its statements of operations. Revenues are recognized upon the transfer of produced volumes to the Company's customers, who take control of the volumes and receive all the benefits of ownership upon delivery at designated sales points. Payment is reasonably assured upon delivery of production. All sales are subject to contracts that have commercial substance, contain specific pricing terms, and define the enforceable rights and obligations of both parties. These contracts typically provide for cash settlement within 25 days following each production month and are cancellable upon 30 days' notice by either party for oil and vary for natural gas based upon the terms set out in the confirmations between both parties. Prices for sales of oil and natural gas are generally based upon terms that are common in the oil and gas industry, including index or spot prices, location and quality differentials, as well as market supply and demand conditions. As a result, prices for oil and natural gas routinely fluctuate based on changes in these factors. Each unit of production (barrel of crude oil and thousand cubic feet of natural gas) represents a separate performance obligation under the Company's contracts since each unit has economic benefit on its own and each is priced separately according to the terms of the contracts. Comstock has elected to exclude all taxes from the measurement of transaction prices, and its revenues are reported net of royalties and exclude revenue interests owned by others because the Company acts as an agent when selling crude oil and natural gas, on behalf of royalty owners and working interest owners. Revenue is recorded in the month of production based on an estimate of the Company's share of volumes produced and prices realized. The Company recognizes any differences between estimates and actual amounts received in the month when payment is received. Historically, differences between estimated revenues and actual revenue received have not been significant. The amount of oil or natural gas sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties. The Company did not have any significant imbalance positions at March 31, 2022. Sales of oil and natural gas generally occur at or near the wellhead. When sales of oil and gas occur at locations other than the wellhead, the Company accounts for costs incurred to transport the production to the delivery point as gathering and transportation expenses. The Company recognized accounts receivable of $198.3 million as of March 31, 2022 from customers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists. Credit Losses Substantially all of the Company's accounts receivable are due from either purchasers of oil and gas or participants in oil and gas wells for which the Company serves as the operator. Generally, operators of oil and gas wells have the right to offset future revenues against unpaid charges related to operated wells. Oil and gas sales are generally unsecured. Comstock assesses the collectability of its receivables based upon their age, the credit quality of the purchaser or participant and the potential for revenue offset. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible. Accordingly, no allowance for doubtful accounts has been recorded for the three months ended March 31, 2022 and 2021. Income Taxes Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. In recording deferred income tax assets, the Company considers whether it is more likely than not that its deferred income tax assets will be realized in the future. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. The Company believes that after considering all the available objective evidence, historical and prospective, with greater weight given to historical evidence, management is not able to determine that it is more likely than not that all of its deferred tax assets will be realized. As a result, the Company established valuation allowances for its deferred tax assets and U.S. federal and state net operating loss carryforwards that are not expected to be utilized due to the uncertainty of generating taxable income prior to the expiration of the carryforward periods. The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods. The following is an analysis of the consolidated income tax benefit (provision): Three Months Ended 2022 2021 (In thousands) Current - Federal $ 3,961 $ — Current - State 2,460 (136) Deferred - Federal 13,424 34,919 Deferred - State 11,777 (4,816) $ 31,622 $ 29,967 The difference between the federal statutory rate of 21% and the effective tax rate is due to the following: Three Months Ended 2022 2021 Tax at statutory rate 21.0 % 21.0 % Tax effect of: Valuation allowance on deferred tax assets (3.6) 0.5 State income taxes, net of federal benefit 4.6 (3.0) Nondeductible stock-based compensation 0.1 (0.2) Effective tax rate 22.1 % 18.3 % The Company's federal income tax returns for the years subsequent to December 31, 2017 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2018. The Company currently believes that all other significant filing positions are highly certain and that all of its other significant income tax positions and deductions would be sustained under audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions. Fair Value Measurements The Company holds or has held certain financial assets and liabilities that are required to be measured at fair value. These include cash and cash equivalents held in bank accounts and derivative financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 — Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 — Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 — Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. During 2021, the Company had natural gas swaption agreements that were measured at fair value using a third party pricing service, categorized as a Level 3 measurement. The following is a reconciliation of the beginning and ending balances for derivative instruments using Level 3 measurements in the fair value hierarchy: Three Months Ended (In thousands) Balance at beginning of year $ (22,588) Total loss included in earnings 9,712 Settlements, net 1,919 Transfers out of Level 3 (6,418) Balance at end of period $ (17,375) Fair Values – Reported The following presents the carrying amounts and the fair values of the Company's financial instruments as of March 31, 2022 and December 31, 2021: As of March 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Assets: (In thousands) Commodity-based derivatives (1) $ 12,609 $ 12,609 $ 5,258 $ 5,258 Liabilities: Commodity-based derivatives (1) $ 513,645 $ 513,645 $ 185,987 $ 185,987 Bank credit facility (2) $ 150,000 $ 150,000 $ 235,000 $ 235,000 7.50% senior notes due 2025 (3) $ 199,758 $ 248,066 $ 196,998 $ 248,066 6.75% senior notes due 2029 (3) $ 1,256,685 $ 1,287,500 $ 1,256,874 $ 1,337,500 5.875% senior notes due 2030 (3) $ 965,000 $ 950,525 $ 965,000 $ 989,125 _____________________________ (1) The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using third party pricing services and other active markets or broker quotes that are readily available in the public markets. (2) The carrying value of our floating rate debt outstanding approximates fair value. (3) The fair value of the Company's fixed rate debt was based on quoted prices as of March 31, 2022 and December 31, 2021, respectively, a Level 1 measurement. Earnings Per Share Unvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. At March 31, 2022 and December 31, 2021, 943,386 and 952,971 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders. Weighted average shares of unvested restricted stock outstanding were as follows: Three Months Ended 2022 2021 (In thousands) Unvested restricted stock 947 1,035 PSUs represent the right to receive a number of shares of the Company's common stock that may range from zero to up to two times the number of PSUs granted on the award date based on the achievement of certain performance measures during a performance period. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, which would be issuable at the end of the respective period, assuming that date was the end of the performance period. The treasury stock method is used to measure the dilutive effect of PSUs. Weighted average unearned PSUs outstanding were as follows: Three Months Ended 2022 2021 (In thousands, except per unit amounts) Weighted average PSUs 1,050 1,136 Weighted average grant date fair value per unit $8.11 $9.33 The Series B Convertible Preferred Stock became convertible into an aggregate of 43,750,000 shares of common stock on July 16, 2020 at a conversion price of $4.00 per share. The dilutive effect of preferred stock is computed using the if-converted method as if conversion of the preferred shares had occurred at the earlier of the date of issuance or the beginning of the period. None of the Company's participating securities participate in losses and as such are excluded from the computation of basic earnings per share during periods of net losses. Basic and diluted per share amounts are the same for the three months ended March 31, 2022 and 2021, respectively, due to the net losses in the periods. Supplementary Information with Respect to the Consolidated Statements of Cash Flows Cash payments made for interest and income taxes and other non-cash investing activities for the three months ended March 31, 2022 and 2021, respectively, were as follows: Three Months Ended 2022 2021 (In thousands) Cash payments for: Interest payments $ 75,928 $ 97,990 Non-cash investing activities include: Increase in accrued capital expenditures $ 14,499 $ 1,880 Liabilities assumed in exchange for right-of-use lease assets $ 1,089 $ 4,791 |
EXPLORATORY WELL COSTS
EXPLORATORY WELL COSTS | 3 Months Ended |
Mar. 31, 2022 | |
Exploratory Well Cost [Abstract] | |
EXPLORATORY WELL COSTS | EXPLORATORY WELL COSTS Exploratory well costs are initially capitalized as proved property in the consolidated balance sheets but charged to exploration expense if and when the well is determined not to have found commercial proved oil and gas reserves, it is impaired or it is sold. The changes in capitalized exploratory well costs are as follows: Three Months Ended 2022 (In thousands) Beginning capitalized exploratory project costs $ 6,966 Additions to exploratory project costs pending the determination of proved reserves 11,557 Ending capitalized exploratory project costs $ 18,523 As of March 31, 2022 and December 31, 2021, the Company had no exploratory wells for which costs have been capitalized for a period greater than one year. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT At March 31, 2022, long-term debt was comprised of the following: (In thousands) 7.50% Senior Notes due 2025: Principal $ 244,400 Discount, net of amortization (44,642) 6.75% Senior Notes due 2029: Principal 1,250,000 Premium, net of amortization 6,685 5.875% Senior Notes due 2030: Principal 965,000 Bank Credit Facility: Principal 150,000 Debt issuance costs, net of amortization (36,983) $ 2,534,460 As of March 31, 2022, the Company had $150.0 million outstanding under a bank credit facility with a $1.4 billion committed borrowing base which is re-determined on a semi-annual basis and upon the occurrence of certain other events and matures on July 16, 2024. Borrowings under the bank credit facility are secured by substantially all of the assets of the Company and its subsidiaries and bear interest at the Company's option, at either LIBOR plus 2.25% to 3.25% or a base rate plus 1.25% to 2.25%, in each case depending on the utilization of the borrowing base. The Company also pays a commitment fee of 0.375% to 0.5% on the unused portion of the borrowing base. The bank credit facility places certain restrictions upon the Company's and its subsidiaries' ability to, among other things, incur additional indebtedness, pay cash dividends, repurchase common stock, make certain loans, investments and divestitures and redeem the senior notes. The only financial covenants are the maintenance of a leverage ratio of less than 4.0 to 1.0 and an adjusted current ratio of at least 1.0 to 1.0. The Company was in compliance with the covenants as of March 31, 2022. In March 2021, the Company issued $1.25 billion principal amount of its 6.75% senior notes due 2029 in a private placement and received net proceeds after offering costs of $1.24 billion, which were used to repurchase a portion of the Company's 7.50% senior notes due 2025 and 9.75% senior notes due 2026 pursuant to a tender offer. Pursuant to the tender offer, Comstock repurchased $375.0 million principal amount of the 7.50% senior notes due 2025 and $777.1 million principal amount of the 9.75% senior notes due 2026 for an aggregate amount of $1.26 billion, which included premiums paid over face value of $97.9 million, accrued interest of $12.5 million and $1.1 million of costs related to the tender offer. As a result of the early retirement of the senior notes, the Company recognized a loss of $238.5 million. |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 3 Months Ended |
Mar. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
CONVERTIBLE PREFERRED STOCK | CONVERTIBLE PREFERRED STOCK The Company has 175,000 shares outstanding of Series B Convertible Preferred Stock, which are held by its majority stockholder. The holder of the Series B Convertible Preferred Stock is entitled to receive quarterly dividends at a rate of 10% per annum, which are paid in arrears. The holder of the Series B Convertible Preferred Stock may convert any or all shares of such preferred stock into shares of the Company's common stock at $4.00 per share, subject to adjustment pursuant to customary anti-dilution provisions. The Company has the right to redeem the Series B Convertible Preferred Stock at any time at face value plus accrued dividends. The Series B Convertible Preferred Stock is classified as mezzanine equity based on the majority stockholder's ability to control the terms of conversion to common stock. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESFrom time to time, the Company is involved in certain litigation that arises in the normal course of its operations. The Company records a loss contingency for these matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company does not believe the resolution of these matters will have a material effect on the Company's financial position, results of operations or cash flows and no material amounts are accrued relative to these matters at March 31, 2022 or 2021. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Comstock operates oil and gas properties held by partnerships owned by its majority stockholder. The Company charges the partnerships for the costs incurred to drill, complete and produce wells, as well as drilling and operating overhead fees. Comstock also provides natural gas marketing services to the partnerships, including evaluating potential markets and providing hedging services, in return for a fee equal to $0.02 per Mcf for natural gas marketed. The Company received $0.2 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively, for drilling, operating and marketing services provided to the partnerships. In connection with the operation of the wells, the Company had a $6.7 million and a $20.8 million receivable from the partnerships at March 31, 2022 and December 31, 2021, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTOn April 14, 2022, the Company announced the early redemption of the remaining amount of its outstanding 7.50% senior notes due 2025 in the aggregate principal amount of $244.4 million on May 15, 2022. In accordance with the terms and conditions set forth in the indenture, the Company will pay the redemption price of 101.875% of the principal amount plus any accrued and unpaid interest. The Company expects to fund this redemption by using cash on hand and borrowings under its bank credit facility and expects to recognize a pre-tax loss between $47 million and $49 million on the early retirement of debt. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited consolidated financial statements include the accounts of Comstock Resources, Inc. and its wholly-owned subsidiaries (collectively, "Comstock" or the "Company"). In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock as of March 31, 2022, and the related results of operations and cash flows for the periods being presented. Net income and comprehensive income are the same in all periods presented. All adjustments are of a normal recurring nature unless otherwise disclosed. The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to those rules and regulations, although Comstock believes that the disclosures made are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in Comstock's Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the period through March 31, 2022 are not necessarily an indication of the results expected for the full year. |
Property and Equipment | Property and Equipment The Company follows the successful efforts method of accounting for its oil and natural gas properties. Costs incurred to acquire oil and gas leasehold are capitalized. The Company assesses the need for an impairment of the capitalized costs for its proved oil and gas properties on a property basis. No impairments were recognized to adjust the carrying value of the Company's proved oil and gas properties during any of the periods presented. Unproved oil and gas properties are also periodically assessed and any impairment in value is charged to expense. The costs related to unproved properties are transferred to proved oil and gas properties and amortized on an equivalent unit-of-production basis when they are reflected in proved oil and natural gas reserves. Exploratory drilling costs are initially capitalized as proved property but charged to expense if and when the well is determined not to have found commercial quantities of proved oil and gas reserves. Exploratory drilling costs are evaluated within a one-year period after the completion of drilling. The Company determines the fair values of its oil and gas properties using a discounted cash flow model and proved and risk-adjusted probable oil and natural gas reserves. Undrilled acreage can also be valued based on sales transactions in comparable areas. Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for oil and natural gas prices, production costs, capital expenditures, and future production as well as estimated proved oil and gas reserves and risk-adjusted probable oil and natural gas reserves. Management's oil and natural gas price outlook is developed based on third-party longer-term price forecasts as of each measurement date. The expected future net cash flows are discounted using an appropriate discount rate in determining a property's fair value. It is reasonably possible that the Company's estimates of undiscounted future net cash flows attributable to its oil and gas properties may change in the future. The primary factors that may affect estimates of future cash flows include future adjustments, both positive and negative, to proved and appropriate risk-adjusted probable oil and gas reserves, results of future drilling activities, future prices for oil and natural gas, and increases or decreases in production and capital costs. As a result of these changes, there may be future impairments in the carrying values of these or other properties. |
Goodwill | Goodwill The Company had goodwill of $335.9 million as of March 31, 2022 that was recorded in 2018. The Company is not required to amortize goodwill as a charge to earnings; however, the Company is required to conduct an annual review of goodwill for impairment. The Company performs an annual assessment of goodwill on October 1 of each year and performs interim assessments if indicators of impairment are present. If the carrying value of goodwill exceeds the fair value, an impairment charge would be recorded for the difference between fair value and carrying value. |
Leases | Leases The Company has right-of-use lease assets of $6.9 million related to its corporate office lease, certain office equipment and leased vehicles used in oil and gas operations with corresponding short-term and long-term liabilities. The value of the lease assets and liabilities are determined based upon discounted future minimum cash flows contained within each of the respective contracts. The Company determines if contracts contain a lease at inception of the contract. To the extent that contract terms representing a lease are identified, leases are identified as being either an operating lease or a finance-type lease. Comstock currently has no finance-type leases. Right-of-use lease assets representing the Company's right to use an underlying asset for the lease term and the related lease liabilities represent our obligation to make lease payments under the terms of the contracts. Short-term leases that have an initial term of one year or less are not capitalized; however, amounts paid for those leases are included as part of its lease cost disclosures. Short-term lease costs exclude expenses related to leases with a lease term of one month or less. Leases for the right to explore for and develop oil and natural gas reserves and the related rights to use the land associated with those leases are reflected as oil and gas properties. Comstock contracts for a variety of equipment used in its oil and natural gas exploration and development activities. Contract terms for this equipment vary broadly, including the contract duration, pricing, scope of services included along with the equipment, cancellation terms, and rights of substitution, among others. The Company's drilling and completion operations routinely change due to changes in commodity prices, demand for oil and natural gas, and the overall operating and economic environment. Accordingly, Comstock manages the terms of its contracts for drilling rigs and completions equipment so as to allow for maximum flexibility in responding to these changing conditions. The Company's completion contracts do not qualify as leases. The Company's rig contracts are presently either for periods of less than one year, or they are on terms that provide for cancellation with 45 days advance notice without a specified expiration date. Accordingly, the Company has elected not to recognize right-of-use lease assets for these rig contracts. The costs associated with drilling rig operations are accounted for under the successful efforts method, which generally require that these costs be capitalized as part of our proved oil and natural gas properties on our balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense. |
Reserve for Future Abandonment Costs | Reserve for Future Abandonment CostsComstock's asset retirement obligations relate to future plugging and abandonment expenses on its oil and gas properties and related facilities disposal. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging ActivitiesAll of the Company's derivative financial instruments are used for risk management purposes and, by policy, none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. The Company classifies the fair value amounts of derivative financial instruments as net current or noncurrent assets or liabilities, whichever the case may be, by commodity contract. None of the Company's derivative contracts were designated as cash flow hedges. All of Comstock's natural gas derivative financial instruments, except for certain basis swaps, are tied to the Henry Hub-NYMEX price index. |
Stock-Based Compensation | Stock-Based CompensationComstock accounts for employee stock-based compensation under the fair value method. Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period and included in general and administrative expenses for awards of restricted stock and performance stock units ("PSUs") to the Company's employees and directors. |
Revenue Recognition | Revenue Recognition Comstock produces oil and natural gas and reports revenues separately for each of these two primary products in its statements of operations. Revenues are recognized upon the transfer of produced volumes to the Company's customers, who take control of the volumes and receive all the benefits of ownership upon delivery at designated sales points. Payment is reasonably assured upon delivery of production. All sales are subject to contracts that have commercial substance, contain specific pricing terms, and define the enforceable rights and obligations of both parties. These contracts typically provide for cash settlement within 25 days following each production month and are cancellable upon 30 days' notice by either party for oil and vary for natural gas based upon the terms set out in the confirmations between both parties. Prices for sales of oil and natural gas are generally based upon terms that are common in the oil and gas industry, including index or spot prices, location and quality differentials, as well as market supply and demand conditions. As a result, prices for oil and natural gas routinely fluctuate based on changes in these factors. Each unit of production (barrel of crude oil and thousand cubic feet of natural gas) represents a separate performance obligation under the Company's contracts since each unit has economic benefit on its own and each is priced separately according to the terms of the contracts. |
Credit Losses | Credit Losses Substantially all of the Company's accounts receivable are due from either purchasers of oil and gas or participants in oil and gas wells for which the Company serves as the operator. Generally, operators of oil and gas wells have the right to offset future revenues against unpaid charges related to operated wells. Oil and gas sales are generally unsecured. Comstock assesses the collectability of its receivables based upon their age, the credit quality of the purchaser or participant and the potential for revenue offset. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible. Accordingly, no allowance for doubtful accounts has been recorded for the three months ended March 31, 2022 and 2021. |
Income Taxes | Income Taxes Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. In recording deferred income tax assets, the Company considers whether it is more likely than not that its deferred income tax assets will be realized in the future. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. The Company believes that after considering all the available objective evidence, historical and prospective, with greater weight given to historical evidence, management is not able to determine that it is more likely than not that all of its deferred tax assets will be realized. As a result, the Company established valuation allowances for its deferred tax assets and U.S. federal and state net operating loss carryforwards that are not expected to be utilized due to the uncertainty of generating taxable income prior to the expiration of the carryforward periods. The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods. |
Fair Value Measurements | Fair Value Measurements The Company holds or has held certain financial assets and liabilities that are required to be measured at fair value. These include cash and cash equivalents held in bank accounts and derivative financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 — Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 — Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 — Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. During 2021, the Company had natural gas swaption agreements that were measured at fair value using a third party pricing service, categorized as a Level 3 measurement. The following is a reconciliation of the beginning and ending balances for derivative instruments using Level 3 measurements in the fair value hierarchy: Three Months Ended (In thousands) Balance at beginning of year $ (22,588) Total loss included in earnings 9,712 Settlements, net 1,919 Transfers out of Level 3 (6,418) Balance at end of period $ (17,375) |
Earnings Per Share | Earnings Per ShareUnvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. At March 31, 2022 and December 31, 2021, 943,386 and 952,971 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Lease Cost Recognized | Lease costs recognized during the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 (In thousands) Operating lease cost included in general and administrative expense $ 435 $ 429 Operating lease cost included in lease operating expense 270 232 Short-term lease cost (drilling rig costs included in proved oil and gas properties) 11,035 11,458 $ 11,740 $ 12,119 |
Summary of Liabilities Under Contracts That Contain Operating Leases | As of March 31, 2022, expected future payments related to contracts that contain operating leases were as follows: (In thousands) April 1 to December 31, 2022 $ 2,135 2023 2,673 2024 2,321 2025 67 2026 1 Total lease payments 7,197 Imputed interest (246) Total lease liability $ 6,951 |
Summary of Accrued Costs | Accrued costs at March 31, 2022 and December 31, 2021 consisted of the following: As of March 31, 2022 December 31, 2021 (In thousands) Accrued drilling costs $ 34,494 $ 19,995 Accrued interest payable 26,643 60,305 Accrued transportation costs 21,119 22,859 Accrued income and other taxes 12,233 15,655 Accrued employee compensation 4,573 12,320 Accrued lease operating expenses 2,783 2,036 Other 1,477 1,856 $ 103,322 $ 135,026 |
Summary of Changes in Total Estimated Asset Retirement Obligation Liability | The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented: Three Months Ended 2022 2021 (In thousands) Reserve for future abandonment costs at beginning of period $ 25,673 $ 19,290 New wells placed on production 381 328 Accretion expense 362 297 Reserve for future abandonment costs at end of period $ 26,416 $ 19,915 |
Schedule of Oil and Natural Gas Price Derivative | The Company had the following oil and natural gas price derivative financial instruments at March 31, 2022: Future Production Period Nine Months Ending December 31, 2022 Year Ending December 31, 2023 Total Natural Gas Swap Contracts: Volume (MMBtu) 88,000,000 — 88,000,000 Average Price per MMBtu $2.68 $2.68 Natural Gas Collar Contracts: Volume (MMBtu) 104,925,000 128,925,000 233,850,000 Average Price per MMBtu: Average Ceiling $3.88 $9.85 $7.17 Average Floor $2.62 $2.98 $2.82 Natural Gas Basis Swap Contracts: Volume (MMBtu) 8,250,000 (1) — 8,250,000 (1) Average Price per MMBtu ($0.16) ($0.16) _____________________________ (1) Contracts fix the differentials between NYMEX Henry Hub and the Columbia Gulf Mainline indices. |
Schedule of Derivative Instruments | The aggregate fair value of the Company's derivative instruments are presented on a gross basis in the accompanying consolidated balance sheets. The classification of derivative financial instruments between assets and liabilities, consists of the following: As of Type Consolidated Balance Sheet Location March 31, 2022 December 31, 2021 (In thousands) Asset Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ 2,601 $ 4,528 Oil price derivatives Derivative Financial Instruments – current — 730 $ 2,601 $ 5,258 Natural gas price derivatives Derivative Financial Instruments – long-term $ 10,008 $ — Liability Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ 513,645 $ 181,215 Oil price derivatives Derivative Financial Instruments – current — 730 $ 513,645 $ 181,945 Natural gas price derivatives Derivative Financial Instruments – long-term $ — $ 4,042 |
Schedule of Gains and Losses from Derivative Contracts | Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows: Gain (Loss) on Derivatives Three Months Ended March 31, 2022 2021 (In thousands) Natural gas price derivatives $ (437,493) $ (18,877) Oil price derivatives — (3,544) Interest rate derivatives — 672 $ (437,493) $ (21,749) |
Consolidated Income Tax Benefit (Provision) | The following is an analysis of the consolidated income tax benefit (provision): Three Months Ended 2022 2021 (In thousands) Current - Federal $ 3,961 $ — Current - State 2,460 (136) Deferred - Federal 13,424 34,919 Deferred - State 11,777 (4,816) $ 31,622 $ 29,967 |
Difference Between Federal Statutory Rate and Effective Tax Rate | The difference between the federal statutory rate of 21% and the effective tax rate is due to the following: Three Months Ended 2022 2021 Tax at statutory rate 21.0 % 21.0 % Tax effect of: Valuation allowance on deferred tax assets (3.6) 0.5 State income taxes, net of federal benefit 4.6 (3.0) Nondeductible stock-based compensation 0.1 (0.2) Effective tax rate 22.1 % 18.3 % |
Reconciliation of Beginning and Ending Balances for Derivative Instruments | The following is a reconciliation of the beginning and ending balances for derivative instruments using Level 3 measurements in the fair value hierarchy: Three Months Ended (In thousands) Balance at beginning of year $ (22,588) Total loss included in earnings 9,712 Settlements, net 1,919 Transfers out of Level 3 (6,418) Balance at end of period $ (17,375) |
Summary of Carrying Amounts and Fair Values of Financial Instruments | The following presents the carrying amounts and the fair values of the Company's financial instruments as of March 31, 2022 and December 31, 2021: As of March 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Assets: (In thousands) Commodity-based derivatives (1) $ 12,609 $ 12,609 $ 5,258 $ 5,258 Liabilities: Commodity-based derivatives (1) $ 513,645 $ 513,645 $ 185,987 $ 185,987 Bank credit facility (2) $ 150,000 $ 150,000 $ 235,000 $ 235,000 7.50% senior notes due 2025 (3) $ 199,758 $ 248,066 $ 196,998 $ 248,066 6.75% senior notes due 2029 (3) $ 1,256,685 $ 1,287,500 $ 1,256,874 $ 1,337,500 5.875% senior notes due 2030 (3) $ 965,000 $ 950,525 $ 965,000 $ 989,125 _____________________________ (1) The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using third party pricing services and other active markets or broker quotes that are readily available in the public markets. (2) The carrying value of our floating rate debt outstanding approximates fair value. (3) The fair value of the Company's fixed rate debt was based on quoted prices as of March 31, 2022 and December 31, 2021, respectively, a Level 1 measurement. |
Weighted Average Shares of Unvested Restricted Stock | Weighted average shares of unvested restricted stock outstanding were as follows: Three Months Ended 2022 2021 (In thousands) Unvested restricted stock 947 1,035 |
Common Stock and Convertible Stock Dilutive in Weighted average unearned PSUs outstanding | The treasury stock method is used to measure the dilutive effect of PSUs. Weighted average unearned PSUs outstanding were as follows: Three Months Ended 2022 2021 (In thousands, except per unit amounts) Weighted average PSUs 1,050 1,136 Weighted average grant date fair value per unit $8.11 $9.33 |
Cash Payments Made for Interest and Income Taxes | Cash payments made for interest and income taxes and other non-cash investing activities for the three months ended March 31, 2022 and 2021, respectively, were as follows: Three Months Ended 2022 2021 (In thousands) Cash payments for: Interest payments $ 75,928 $ 97,990 Non-cash investing activities include: Increase in accrued capital expenditures $ 14,499 $ 1,880 Liabilities assumed in exchange for right-of-use lease assets $ 1,089 $ 4,791 |
EXPLORATORY WELL COSTS (Tables)
EXPLORATORY WELL COSTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Exploratory Well Cost [Abstract] | |
Capitalized Exploratory Well Costs | The changes in capitalized exploratory well costs are as follows: Three Months Ended 2022 (In thousands) Beginning capitalized exploratory project costs $ 6,966 Additions to exploratory project costs pending the determination of proved reserves 11,557 Ending capitalized exploratory project costs $ 18,523 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | At March 31, 2022, long-term debt was comprised of the following: (In thousands) 7.50% Senior Notes due 2025: Principal $ 244,400 Discount, net of amortization (44,642) 6.75% Senior Notes due 2029: Principal 1,250,000 Premium, net of amortization 6,685 5.875% Senior Notes due 2030: Principal 965,000 Bank Credit Facility: Principal 150,000 Debt issuance costs, net of amortization (36,983) $ 2,534,460 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Equipment and Goodwill (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Impairment of oil and gas properties | $ 0 | $ 0 | |
Goodwill | $ 335,897,000 | $ 335,897,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Operating lease, right-of-use assets | $ 6,879 | $ 6,450 | |
Prior advance notice period for cancellation of rig contracts | 45 days | ||
Cash payments for operating leases associated with right-of-use assets | $ 700 | $ 700 | |
Operating lease, weighted average remaining lease term | 2 years 6 months | 2 years 8 months 12 days | |
Operating lease, weighted average discount rate, percent | 2.70% | 2.70% | |
Expected future payments for contracted drilling services | $ 11,600 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Lease Cost Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Operating lease cost | $ 11,740 | $ 12,119 |
General and Administrative Expense | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Operating lease cost | 435 | 429 |
Lease Operating Expense | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Operating lease cost | 270 | 232 |
Short-term Drilling Rig Costs Included in Proved Oil and Gas Properties | ||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||
Operating lease cost | $ 11,035 | $ 11,458 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Liabilities Under Contract Contain Operating Leases (Detail) $ in Thousands | Mar. 31, 2022USD ($) |
Accounting Policies [Abstract] | |
Remainder of fiscal year | $ 2,135 |
2023 | 2,673 |
2024 | 2,321 |
2025 | 67 |
2026 | 1 |
Total lease payments | 7,197 |
Imputed interest | (246) |
Total lease liability | $ 6,951 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Accrued Costs (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Accrued drilling costs | $ 34,494 | $ 19,995 |
Accrued interest payable | 26,643 | 60,305 |
Accrued transportation costs | 21,119 | 22,859 |
Accrued income and other taxes | 12,233 | 15,655 |
Accrued employee compensation | 4,573 | 12,320 |
Accrued lease operating expenses | 2,783 | 2,036 |
Other | 1,477 | 1,856 |
Total accrued expenses | $ 103,322 | $ 135,026 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Changes in Reserve for Future Abandonment Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Reserve for future abandonment costs at beginning of period | $ 25,673 | $ 19,290 |
New wells placed on production | 381 | 328 |
Accretion expense | 362 | 297 |
Reserve for future abandonment costs at end of period | $ 26,416 | $ 19,915 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Derivative Contracts Volume and Prices (Detail) | 3 Months Ended |
Mar. 31, 2022MMBTU$ / MMBTU | |
Natural Gas Swap Contracts: | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 88,000,000 |
Average price (in dollars per MMBtu) | 2.68 |
Natural Gas Swap Contracts: | Swap Contracts for 2022 | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 88,000,000 |
Average price (in dollars per MMBtu) | 2.68 |
Natural Gas Swap Contracts: | Swap Contracts for 2023 | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 0 |
Natural Gas Collar Contracts: | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 233,850,000 |
Average ceiling (dollars per unit) | 7.17 |
Average floor (dollars per unit) | 2.82 |
Natural Gas Collar Contracts: | Collar Contracts for 2022 | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 104,925,000 |
Average ceiling (dollars per unit) | 3.88 |
Average floor (dollars per unit) | 2.62 |
Natural Gas Collar Contracts: | Collar Contract for 2023 | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 128,925,000 |
Average ceiling (dollars per unit) | 9.85 |
Average floor (dollars per unit) | 2.98 |
Natural Gas Basis Swap Contracts: | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 8,250,000 |
Average price (in dollars per MMBtu) | (0.16) |
Natural Gas Basis Swap Contracts: | Basis Swap Contracts for 2022 | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 8,250,000 |
Average price (in dollars per MMBtu) | (0.16) |
Natural Gas Basis Swap Contracts: | Basis Swap Contracts for 2023 | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 0 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivatives Narrative (Detail) | Mar. 31, 2022USD ($) |
Accounting Policies [Abstract] | |
Cash flow hedges derivative instruments | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Derivative Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Asset Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | $ 2,601 | $ 5,258 |
Derivative Financial Instruments – long-term | 10,008 | 0 |
Liability Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | 513,645 | 181,945 |
Derivative Financial Instruments – long-term | 0 | 4,042 |
Derivative Financial Instruments – current | ||
Asset Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | 2,601 | 5,258 |
Liability Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | 513,645 | 181,945 |
Derivative Financial Instruments – current | Natural gas price derivatives | ||
Asset Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | 2,601 | 4,528 |
Liability Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | 513,645 | 181,215 |
Derivative Financial Instruments – current | Oil price derivatives | ||
Asset Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | 0 | 730 |
Liability Derivative Financial Instruments: | ||
Derivative Financial Instruments – current | 0 | 730 |
Derivative Financial Instruments – long-term | Natural gas price derivatives | ||
Asset Derivative Financial Instruments: | ||
Derivative Financial Instruments – long-term | 10,008 | 0 |
Liability Derivative Financial Instruments: | ||
Derivative Financial Instruments – long-term | $ 0 | $ 4,042 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Gains and Losses from Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Gain (loss) from derivative financial instruments | $ (437,493) | $ (21,749) |
Natural gas price derivatives | ||
Derivative [Line Items] | ||
Gain (loss) from derivative financial instruments | (437,493) | (18,877) |
Oil price derivatives | ||
Derivative [Line Items] | ||
Gain (loss) from derivative financial instruments | 0 | (3,544) |
Interest rate derivatives | ||
Derivative [Line Items] | ||
Gain (loss) from derivative financial instruments | $ 0 | $ 672 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognized (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)product | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | |
Accounting Policies [Abstract] | |||
Number of primary products | product | 2 | ||
Contract cash settlement max days | 25 days | ||
Contract cancellable notice term | 30 days | ||
Oil and gas sales | $ 198,261,000 | $ 217,149,000 | |
Allowance for doubtful accounts | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1,495 | $ 1,690 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of unvested restricted stock outstanding (in shares) | 943,386 | 952,971 | |
Weighted average grant date fair value of stock grants per share (in dollars per share) | $ 5.74 | ||
Unrecognized compensation cost related to unvested restricted stock | $ 3,100 | ||
Period in which compensation cost expected to be recognized | 1 year 7 months 6 days | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period in which compensation cost expected to be recognized | 1 year 6 months | ||
Number of performance stock units ("PSUs") outstanding (in shares) | 1,049,910 | ||
Weighted average grant date fair value of PSUs per unit (in dollars per share) | $ 8.11 | ||
Minimum final number of shares of common stock issuable based on performance multiplier (in shares) | 0 | ||
Maximum final number of shares of common stock issuable based on performance multiplier (in shares) | 2,099,820 | ||
Unrecognized expense, performance share units | $ 2,700 | ||
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1,500 | $ 1,700 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Current - Federal | $ 3,961 | $ 0 |
Current - State | 2,460 | (136) |
Deferred - Federal | 13,424 | 34,919 |
Deferred - State | 11,777 | (4,816) |
Total | $ 31,622 | $ 29,967 |
SUMMARY OF SIGNIFICANT ACCOU_17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Difference Between Federal Statutory Rate and Effective Tax Rate (Detail) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Tax at statutory rate | 21.00% | 21.00% |
Tax effect of: | ||
Valuation allowance on deferred tax assets | (3.60%) | 0.50% |
State income taxes, net of federal benefit | 4.60% | (3.00%) |
Nondeductible stock-based compensation | 0.10% | (0.20%) |
Effective tax rate | 22.10% | 18.30% |
SUMMARY OF SIGNIFICANT ACCOU_18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Beginning and Ending Balances for Derivative Instrument Assets (Liabilities) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at beginning of year | $ (22,588) |
Total loss included in earnings | 9,712 |
Settlements, net | 1,919 |
Transfers out of Level 3 | (6,418) |
Balance at end of period | $ (17,375) |
SUMMARY OF SIGNIFICANT ACCOU_19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Derivative financial instruments | $ 2,601 | $ 5,258 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Derivative financial instruments | $ 513,645 | 181,945 | |
7.5% Senior Notes due 2025 | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Interest rate on debt instrument | 7.50% | 7.50% | |
6.75% Senior Notes due 2029: | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Interest rate on debt instrument | 6.75% | 6.75% | |
5.875% Senior Notes due 2030: | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Interest rate on debt instrument | 5.875% | ||
Bank Credit Facility | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, carrying value | $ 150,000 | 235,000 | |
Long-term debt, fair value | 150,000 | 235,000 | |
Level 1 | 7.5% Senior Notes due 2025 | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, carrying value | 199,758 | 196,998 | |
Long-term debt, fair value | 248,066 | 248,066 | |
Level 1 | 6.75% Senior Notes due 2029: | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, carrying value | 1,256,685 | 1,256,874 | |
Long-term debt, fair value | 1,287,500 | 1,337,500 | |
Level 1 | 5.875% Senior Notes due 2030: | |||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Long-term debt, carrying value | 965,000 | 965,000 | |
Long-term debt, fair value | 950,525 | 989,125 | |
Level 2 and Level 3 | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Derivative financial instruments | 12,609 | 5,258 | |
Derivative financial asset, fair value | 12,609 | 5,258 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Derivative financial instruments | 513,645 | 185,987 | |
Derivative financial liabilities, fair value | $ 513,645 | $ 185,987 |
SUMMARY OF SIGNIFICANT ACCOU_20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Detail) - $ / shares | Jul. 16, 2020 | Mar. 31, 2022 | Dec. 31, 2021 |
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Performance multiplier, maximum | 200.00% | ||
Performance multiplier, minimum | 0.00% | ||
Preferred stock, conversion price per share in dollars per share) | $ 4 | $ 4 | |
Participating securities that share in losses (in shares) | 0 | ||
Series A and Series B Convertible Preferred Stock | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Aggregate common stock upon conversion (in shares) | 43,750,000 | ||
Restricted Stock | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Shares of unvested restricted stock outstanding (in shares) | 943,386 | 952,971 |
SUMMARY OF SIGNIFICANT ACCOU_21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Weighted Average Shares of Unvested Restricted Stock (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Unvested restricted stock (in shares) | 947 | 1,035 |
SUMMARY OF SIGNIFICANT ACCOU_22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Common Stock and Convertible Stock Dilutive in Weighted average unearned PSUs outstanding (Detail) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Weighted average PSUs (in shares) | 1,050 | 1,136 |
Weighted average grant date fair value per unit (in dollars per share) | $ 8.11 | $ 9.33 |
SUMMARY OF SIGNIFICANT ACCOU_23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplementary Information of Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash payments for: | ||
Interest payments | $ 75,928 | $ 97,990 |
Non-cash investing activities include: | ||
Increase in accrued capital expenditures | 14,499 | 1,880 |
Liabilities assumed in exchange for right-of-use lease assets | $ 1,089 | $ 4,791 |
EXPLORATORY WELL COSTS (Details
EXPLORATORY WELL COSTS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |
Beginning capitalized exploratory project costs | $ 6,966 |
Additions to exploratory project costs pending the determination of proved reserves | 11,557 |
Ending capitalized exploratory project costs | $ 18,523 |
LONG-TERM DEBT - Long-term Debt
LONG-TERM DEBT - Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | |||
Debt issuance costs, net of amortization | $ (36,983) | ||
Long-term debt | 2,534,460 | $ 2,615,235 | |
Bank Credit Facility: | |||
Debt Instrument [Line Items] | |||
Principal | 150,000 | ||
7.50% Senior Notes due 2025: | |||
Debt Instrument [Line Items] | |||
Principal | 244,400 | ||
Discount, net of amortization | $ (44,642) | ||
Interest rate on debt instrument | 7.50% | 7.50% | |
6.75% Senior Notes due 2029: | |||
Debt Instrument [Line Items] | |||
Principal | $ 1,250,000 | ||
Premium, net of amortization | $ 6,685 | ||
Interest rate on debt instrument | 6.75% | 6.75% | |
5.875% Senior Notes due 2030: | |||
Debt Instrument [Line Items] | |||
Principal | $ 965,000 | ||
Interest rate on debt instrument | 5.875% |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||
Net proceeds of sale of senior notes | $ 0 | $ 1,257,500 | |
Repayments of long-term debt | $ 1,260,000 | ||
Premiums paid over face value | 97,900 | ||
Payment of accrued interest | 12,500 | ||
Cost related to the tender offer | 1,100 | ||
Loss on early retirement of debt | 0 | 238,539 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Loss on early retirement of debt | 238,500 | ||
6.75% Senior Notes due 2029: | |||
Debt Instrument [Line Items] | |||
Principal | $ 1,250,000 | ||
Principal amount of senior notes issued | $ 1,250,000 | $ 1,250,000 | |
Interest rate on debt instrument | 6.75% | 6.75% | 6.75% |
Net proceeds of sale of senior notes | $ 1,240,000 | ||
7.5% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Principal | $ 244,400 | ||
Interest rate on debt instrument | 7.50% | 7.50% | 7.50% |
Repayments of long-term debt | $ 375,000 | ||
9.75% Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate on debt instrument | 9.75% | 9.75% | |
Repayments of long-term debt | $ 777,100 | ||
5.875% Senior Notes due 2030: | |||
Debt Instrument [Line Items] | |||
Principal | $ 965,000 | ||
Interest rate on debt instrument | 5.875% | ||
Bank Credit Facility | |||
Debt Instrument [Line Items] | |||
Principal | $ 150,000 | ||
Bank credit facility | $ 1,400,000 | ||
Leverage ratio | 400.00% | ||
Current ratio | 100.00% | ||
Bank Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused borrowing base | 0.375% | ||
Bank Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused borrowing base | 0.50% | ||
Bank Credit Facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Spread rate for interest rate on credit facility | 2.25% | ||
Bank Credit Facility | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Spread rate for interest rate on credit facility | 3.25% | ||
Bank Credit Facility | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Spread rate for interest rate on credit facility | 1.25% | ||
Bank Credit Facility | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Spread rate for interest rate on credit facility | 2.25% |
CONVERTIBLE PREFERRED STOCK (De
CONVERTIBLE PREFERRED STOCK (Detail) - $ / shares | Jul. 16, 2020 | Jul. 16, 2019 | Mar. 31, 2022 | May 19, 2020 |
Temporary Equity Disclosure [Abstract] | ||||
Convertible preferred stock issued/ sold (in shares) | 175,000 | |||
Preferred stock, quarterly dividends rate | 10.00% | |||
Conversion price per share (in dollars per share) | $ 4 | $ 4 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)$ / Mcf | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Related Party Transaction [Line Items] | |||
Accounts receivable from affiliates | $ 6,658 | $ 20,834 | |
Partnerships owned by majority stockholder | |||
Related Party Transaction [Line Items] | |||
Related party revenue, fee (in USD per Mcf) | $ / Mcf | 0.02 | ||
Accounts receivable from affiliates | $ 6,700 | $ 20,800 | |
Partnerships owned by majority stockholder | Partnership costs to drill and operating wells and overhead fees | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 200 | $ 400 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Apr. 14, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Subsequent Event [Line Items] | |||
Loss on early retirement of debt | $ 0 | $ 238,539 | |
7.5% Senior Notes due 2025 | |||
Subsequent Event [Line Items] | |||
Interest rate on debt instrument | 7.50% | 7.50% | |
Principal | $ 244,400 | ||
Subsequent Event | 7.5% Senior Notes due 2025 | |||
Subsequent Event [Line Items] | |||
Principal | $ 244,400 | ||
Redemption price, percentage | 101.875% | ||
Subsequent Event | 7.5% Senior Notes due 2025 | Minimum | |||
Subsequent Event [Line Items] | |||
Loss on early retirement of debt | $ 47,000 | ||
Subsequent Event | 7.5% Senior Notes due 2025 | Maximum | |||
Subsequent Event [Line Items] | |||
Loss on early retirement of debt | $ 49,000 |