Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 07, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CRK | |
Entity Registrant Name | COMSTOCK RESOURCES INC | |
Entity Central Index Key | 23,194 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 15,478,775 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and Cash Equivalents | $ 35,321 | $ 65,904 |
Accounts Receivable: | ||
Oil and gas sales | 22,547 | 19,339 |
Joint interest operations | 9,554 | 3,105 |
Derivative Financial Instruments | 5,229 | |
Other Current Assets | 2,732 | 1,824 |
Total current assets | 75,383 | 90,172 |
Property and Equipment: | ||
Oil and gas properties, successful efforts method | 3,883,681 | 3,797,101 |
Other | 19,598 | 19,590 |
Accumulated depreciation, depletion and amortization | (3,077,800) | (3,018,029) |
Net property and equipment | 825,479 | 798,662 |
Other Assets | 969 | 1,040 |
Total Assets | 901,831 | 889,874 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Accounts Payable | 72,455 | 45,311 |
Derivative Financial Instruments | 6,030 | |
Accrued Expenses | 38,163 | 40,366 |
Total current liabilities | 110,618 | 91,707 |
Long-term Debt | 1,070,240 | 1,044,506 |
Deferred Income Taxes | 10,077 | 9,126 |
Reserve for Future Abandonment Costs | 16,203 | 15,804 |
Total liabilities | 1,207,138 | 1,161,143 |
Commitments and Contingencies | ||
Stockholders' Deficit: | ||
Common stock — $0.50 par, 75,000,000 shares authorized, 15,478,775 and 13,937,627 shares outstanding at June 30, 2017 and December 31, 2016, respectively | 7,739 | 6,969 |
Common stock warrants | 3,557 | 5,672 |
Additional paid-in capital | 543,604 | 531,924 |
Accumulated deficit | (860,207) | (815,834) |
Total stockholders' deficit | (305,307) | (271,269) |
Total liabilities and stockholders' deficit | $ 901,831 | $ 889,874 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares outstanding | 15,478,775 | 13,937,627 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Natural gas sales | $ 50,437 | $ 25,727 | $ 91,377 | $ 50,874 |
Oil sales | 11,034 | 14,988 | 23,895 | 26,004 |
Total oil and gas sales | 61,471 | 40,715 | 115,272 | 76,878 |
Operating expenses: | ||||
Production taxes | 1,143 | 1,327 | 2,240 | 2,513 |
Gathering and transportation | 3,545 | 4,025 | 7,673 | 8,390 |
Lease operating | 9,433 | 12,988 | 19,322 | 25,948 |
Exploration | 7,753 | |||
Depreciation, depletion and amortization | 30,321 | 36,029 | 60,226 | 74,865 |
General and administrative | 6,559 | 5,663 | 12,960 | 11,238 |
Impairment of oil and gas properties | 1,742 | 24,460 | ||
Net loss on sale of oil and gas properties | 1,647 | 907 | ||
Total operating expenses | 51,001 | 63,421 | 102,421 | 156,074 |
Operating income (loss) | 10,470 | (22,706) | 12,851 | (79,196) |
Other income (expenses): | ||||
Gain on extinguishment of debt | 56,196 | 89,576 | ||
Gain from derivative financial instruments | 5,295 | 18 | 13,155 | 674 |
Other income | 65 | 314 | 228 | 595 |
Interest expense | (36,755) | (28,882) | (69,655) | (58,826) |
Total other income (expenses) | (31,395) | 27,646 | (56,272) | 32,019 |
Income (loss) before income taxes | (20,925) | 4,940 | (43,421) | (47,177) |
Provision for income taxes | (517) | (88) | (952) | (4,548) |
Net income (loss) | $ (21,442) | $ 4,852 | $ (44,373) | $ (51,725) |
Net income (loss) per share – basic and diluted | $ (1.45) | $ 0.41 | $ (3.06) | $ (4.82) |
Weighted average shares outstanding – basic and diluted | 14,749 | 11,557 | 14,488 | 10,729 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Common Stock Warrants | Additional Paid-in Capital | Accumulated Deficit |
Beginning Balance at Dec. 31, 2016 | $ (271,269) | $ 6,969 | $ 5,672 | $ 531,924 | $ (815,834) |
Beginning Balance, Shares at Dec. 31, 2016 | 13,938,000 | ||||
Stock-based compensation | 2,815 | $ 248 | 2,567 | ||
Stock-based compensation, Shares | 495,000 | ||||
Tax withholdings related to equity awards | (271) | $ (13) | (258) | ||
Tax withholdings related to equity awards, Shares | (27,000) | ||||
Common stock issued for debt conversions | 7,789 | $ 412 | 7,377 | ||
Common stock issued for debt conversions, Shares | 826,000 | ||||
Common stock warrants exercised | $ 2 | $ 123 | (2,115) | 1,994 | |
Common stock warrants exercised, Shares | 246,793 | 247,000 | |||
Net loss | $ (44,373) | (44,373) | |||
Ending Balance at Jun. 30, 2017 | $ (305,307) | $ 7,739 | $ 3,557 | $ 543,604 | $ (860,207) |
Ending Balance, Shares at Jun. 30, 2017 | 15,479,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (44,373) | $ (51,725) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||
Deferred income taxes | 855 | 4,519 |
Net loss on sale of oil and gas properties | 907 | |
Exploratory lease impairments | 7,753 | |
Impairment of oil and gas properties | 24,460 | |
Depreciation, depletion and amortization | 60,226 | 74,865 |
Gain on derivative financial instruments | (13,155) | (674) |
Cash settlements of derivative financial instruments | 1,896 | 2,120 |
Gain on extinguishment of debt | (89,576) | |
Amortization of debt discount, premium and issuance costs | 15,000 | 2,533 |
Interest paid in-kind | 18,594 | |
Stock-based compensation | 2,815 | 2,493 |
Decrease (increase) in accounts receivable | (9,657) | 331 |
Increase in other current assets | (908) | (346) |
Increase (decrease) in accounts payable and accrued expenses | 24,222 | (8,864) |
Net cash provided by (used for) operating activities | 55,515 | (31,204) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (85,829) | (33,654) |
Proceeds from sales of oil and gas properties | 2,067 | |
Net cash used for investing activities | (85,829) | (31,587) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments to retire debt | (3,397) | |
Common stock warrants exercised | 2 | |
Debt and equity issuance costs | (93) | |
Tax withholdings related to equity awards | (271) | (313) |
Net cash used for financing activities | (269) | (3,803) |
Net decrease in cash and cash equivalents | (30,583) | (66,594) |
Cash and cash equivalents, beginning of period | 65,904 | 134,006 |
Cash and cash equivalents, end of period | $ 35,321 | $ 67,412 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Basis of Presentation In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock Resources, Inc. and subsidiaries ("Comstock" or the "Company") as of June 30, 2017, the related results of operations for the three months and six months ended June 30, 2017 and 2016, and cash flows for the six months ended June 30, 2017 and 2016. Net loss and comprehensive loss 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, 2016. The results of operations for the three months and six months ended June 30, 2017 are not necessarily an indication of the results expected for the full year. These unaudited consolidated financial statements include the accounts of Comstock and its wholly-owned subsidiaries. On July 29, 2016, the Company effected a one-for-five (1:5) reverse split of its outstanding shares of common stock. All amounts disclosed in these financial statements have been adjusted to give effect to this reverse stock split in all periods. Property and Equipment The Company follows the successful efforts method of accounting for its oil and gas properties. Costs incurred to acquire oil and gas leasehold are capitalized. In January 2017, the Company entered an agreement to jointly develop certain acreage prospective for the Haynesville shale in Louisiana and Texas with USG Properties Haynesville, LLC ("USG"). As of June 30, 2017, USG has acquired 6,382 net acres prospective for Haynesville shale development for the joint development program. The Company operates wells drilled on USG's acreage and has the right to acquire a 25% working interest in the acreage by reimbursing USG for the attributable acreage costs of the wells being drilled. Comstock received $80,000 for each well drilled as consideration for the Company's services managing the drilling program in addition to customary operating fees. Comstock and USG plan to continue to acquire additional acreage for the joint development venture. In January 2016, the Company designated certain of its natural gas properties located in South Texas as held for sale and recognized an impairment charge of $20.8 million in the six months ended June 30, 2016 to adjust the carrying value of these assets to their estimated net realizable value. The sale of these properties was completed in December 2016. In January 2016, the Company exchanged certain oil and gas properties with another operator in a non-monetary exchange. Under the exchange, the Company received acreage in DeSoto Parish, Louisiana, prospective for the Haynesville shale, including four producing wells (3.5 net). The Company exchanged acreage in Atascosa County, Texas, including seven producing wells (5.3 net) for the Haynesville shale properties. The Company recognized a gain of $0.7 million on this transaction which is included in the loss on sale of oil and gas properties for the six months ended June 30, 2016. The Company also sold certain other oil and gas properties during the first six months of 2016 for total proceeds of $2.1 million. The Company recognized a loss of $1.6 million on these divestitures. Results of operations for the properties that were sold or held for sale were as follows: Three Months June 30, 2016 Six Months June 30, 2016 (In thousands) Total oil and gas sales 1,728 3,528 Total operating expenses (1) (1,712 ) (3,399 ) Operating income $ 16 $ 129 (1) Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale. Unproved oil and gas properties are periodically assessed and any impairment in value is charged to exploration expense. The costs of unproved properties which are determined to be productive are transferred to oil and gas properties and amortized on an equivalent unit-of-production basis. The Company recognized an impairment included in exploration expense of $7.8 million in the six months ended June 30, 2016 related to leases that were expiring on certain of its unproved oil and gas properties. The Company also assesses the need for an impairment of the capitalized costs for its proved oil and gas properties on a property basis. Accordingly, the Company recognized additional impairments of its oil and gas properties of $1.7 million and $3.7 million for the three months and six months ended June 30, 2016, respectively, to reduce the carrying value of certain properties to their estimated fair value. 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 further impairments in the carrying values of these or other properties. Accrued Expenses Accrued expenses at June 30, 2017 and December 31, 2016 consist of the following: As of As of (In thousands) Accrued drilling costs $ 8,313 $ 7,498 Accrued interest payable 20,938 22,721 Accrued transportation costs 2,785 2,227 Accrued employee compensation 2,561 6,292 Accrued ad valorem taxes 1,800 — Other 1,766 1,628 $ 38,163 $ 40,366 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 six months ended June 30, 2017 and 2016: Six Months Ended June 30, 2017 2016 (In thousands) Future abandonment costs — beginning of period $ 15,804 $ 20,093 Accretion expense 431 496 New wells placed on production 4 2 Assets held for sale — (3,442 ) Liabilities settled and assets disposed of (36 ) (1,177 ) Future abandonment costs — end of period $ 16,203 $ 15,972 Derivative Financial Instruments and Hedging Activities Comstock periodically uses swaps, floors and collars to hedge oil and natural gas prices and interest rates. Swaps are settled monthly based on differences between the prices specified in the instruments and the settlement prices of futures contracts. Generally, when the applicable settlement price is less than the price specified in the contract, Comstock receives a settlement from the counterparty based on the difference multiplied by the volume or amounts hedged. Similarly, when the applicable settlement price exceeds the price specified in the contract, Comstock pays the counterparty based on the difference. Comstock generally receives a settlement from the counterparty for floors when the applicable settlement price is less than the price specified in the contract, which is based on the difference multiplied by the volumes hedged. For collars, generally Comstock receives a settlement from the counterparty when the settlement price is below the floor and pays a settlement to the counterparty when the settlement price exceeds the cap. No settlement occurs when the settlement price falls between the floor and cap. 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 and counterparty. The Company had the following outstanding derivative financial instruments used for oil and natural gas price risk management at June 30, 2017: Commodity and Derivative Type Weighted-Average Contract Volume Contract Period Natural Gas Swap Agreements $3.38 per MMBtu 20,745,000 July 2017 – March 2018 None of the Company's derivative contracts were designated as cash flow hedges. The Company recognized cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses). The Company recognized gains of $5.3 million and $18 thousand in the three months ended June 30, 2017 and 2016, respectively, and $13.2 million and $0.7 million in the six months ended June 30, 2017 and 2016, respectively, related to the change in fair value of its natural gas swap agreements. 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. The Company recognized $1.5 million and $1.2 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and performance stock units ("PSUs") to its employees and directors in the three months ended June 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016, the Company recognized $2.8 million and $2.5 million, respectively, of stock-based compensation expense within general and administrative expenses. During the six months ended June 30, 2017, the Company granted 500,002 shares of restricted stock with a grant date fair value of $5.6 million, or $11.11 per share, to its employees and directors. The fair value of each restricted share on the date of grant was equal to its market price. As of June 30, 2017, Comstock had 688,998 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $11.50 per share. Total unrecognized compensation cost related to unvested restricted stock grants of $6.5 million as of June 30, 2017 is expected to be recognized over a period of 2.0 years. During the six months ended June 30, 2017, the Company granted 241,814 PSUs with a grant date fair value of $4.4 million, or $18.17 per unit, to its employees. As of June 30, 2017, Comstock had 313,248 PSUs outstanding at a weighted average grant date fair value of $17.12 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 626,496 shares of common stock. Total unrecognized compensation cost related to these grants of $4.6 million as of June 30, 2017 is expected to be recognized over a period of 2.4 years. 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. The deferred tax provision in the first three months and six months of 2017 related to adjustments to the valuation allowances on state net operating loss carryforwards. The deferred income tax provision for the first three months and six months of 2016 related to an increase in the Company's deferred income tax liability resulting from certain state tax law changes enacted during the period. In recording deferred income tax assets, the Company considers whether it is more likely than not that some portion or all of 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 following is an analysis of consolidated income tax expense: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Current - State $ 21 $ 15 $ 97 $ 29 - Federal — — — — Deferred - State 496 73 855 4,519 - Federal — — — — $ 517 $ 88 $ 952 $ 4,548 The difference between the Company's effective tax rate and the 35% federal statutory rate is caused by valuation allowances on deferred taxes and state taxes. The impact of these items varies based upon the Company's projected full year loss and the jurisdictions that are expected to generate the projected losses. The difference between the federal statutory rate of 35% and the effective tax rate on the income (loss) before income taxes is due to the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Tax at statutory rate 35.0 % 35.0 % 35.0 % 35.0 % Tax effect of: Valuation allowance on deferred tax assets (42.1 ) (22.1 ) (40.1 ) (48.5 ) State income taxes, net of federal benefit 5.0 (11.8 ) 4.3 4.2 Other (0.4 ) 0.7 (1.4 ) (0.3 ) Effective tax rate (2.5 )% 1.8 % (2.2 )% (9.6 )% The Company's federal income tax returns for the years subsequent to December 31, 2012, 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, 2011. 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. Future use of the Company's federal and state net operating loss carryforwards may be limited in the event that a cumulative change in the ownership of Comstock's common stock by more than 50% occurs within a three-year period. Such a change in ownership could result in a substantial portion of the Company's net operating loss carryforwards being eliminated or becoming restricted. Fair Value Measurements The Company holds or has held certain items that are required to be measured at fair value. These include cash and cash equivalents held in bank accounts and derivative financial instruments in the form of oil and natural gas price swap agreements. 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. The Company's valuation of cash and cash equivalents is a Level 1 measurement. The Company's natural gas price swap agreements are not traded on a public exchange. Their value is determined utilizing a discounted cash flow model based on inputs that are readily available in public markets and, accordingly, the valuation of these swap agreements is categorized as a Level 2 measurement. The following table summarizes financial assets accounted for at fair value as of June 30, 2017: Carrying Level 1 Level 2 (In thousands) Assets measured at fair value on a recurring basis: Cash and cash equivalents held in bank accounts $ 35,321 $ 35,321 $ — Derivative financial instruments 5,229 — 5,229 Total assets $ 40,550 $ 35,321 $ 5,229 As of June 30, 2017, the Company's other financial instruments, comprised solely of its fixed rate debt, had a carrying value of $1.1 billion and a fair value of $1.1 billion. The fair market value of the Company's fixed rate debt was based on quoted prices as of June 30, 2017, a Level 2 measurement. Earnings Per Share Basic earnings per share is determined without the effect of any outstanding potentially dilutive securities and diluted earnings per share is determined with the effect of any outstanding securities that are potentially dilutive. Unvested share-based payment awards containing nonforfeitable rights to dividends are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. 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 contingency period. Common stock warrants represent the right to convert the warrants into common stock at an exercise price of $0.01 per share. The treasury stock method is used to measure the dilutive effect of outstanding PSUs and common stock warrants. The shares that would be issuable upon exercise of the conversion rights contained in the Company's convertible debt for each period are based on the if-converted method for computing potentially dilutive shares of common stock that could be issued upon conversion. Basic and diluted loss per share for the three months and six months ended June 30, 2017 and 2016 were determined as follows: Three Months Ended June 30, 2017 2016 Loss Shares Per Income Shares Per (In thousands, except per share amounts) Net income (loss) $ (21,442 ) $ 4,852 Income allocable to unvested stock grants — (143 ) Basic and diluted net income (loss) attributable $ (21,442 ) 14,749 $ (1.45 ) $ 4,709 11,557 $ 0.41 Six Months Ended June 30, 2017 2016 Loss Shares Per Loss Shares Per (In thousands, except per share amounts) Basic and diluted net loss attributable to $ (44,373 ) 14,488 $ (3.06 ) $ (51,725 ) 10,729 $ (4.82 ) At June 30, 2017 and December 31, 2016, 688,998 and 354,986 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a nonforfeitable 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 during the three months and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Unvested restricted stock 659 350 582 332 For the three months ended June 30, 2017 and 2016, all stock options, unvested PSUs, common stock warrants and contingently issuable shares related to the convertible debt were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share in all periods presented due to the net loss in those periods. Options to purchase common stock, warrants exercisable into common stock, PSUs that were outstanding and contingently issuable shares related to the convertible debt that were excluded as anti-dilutive from the determination of diluted earnings per share are as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands except per share/unit data) Weighted average stock options — 12 — 12 Weighted average exercise price per share $ — $ 166.10 $ — $ 166.10 Weighted average warrants for common stock 433 — 511 — Weighted average exercise price per share $ 0.01 $ — $ 0.01 $ — Weighted average PSUs 313 135 273 138 Weighted average grant date fair value per unit $ 17.12 $ 22.10 $ 17.12 $ 22.10 Weighted average contingently convertible shares 36,181 — 36,331 — Weighted average conversion price per share $ 12.32 $ — $ 12.32 $ — Supplementary Information With Respect to the Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash payments made for interest and income taxes for the six months ended June 30, 2017 and 2016, respectively, were as follows: Six Months Ended 2017 2016 (In thousands) Interest payments $ 37,846 $ 58,476 Income tax payments $ 3 $ — Interest of $18.6 million related to the Company's convertible notes was paid in-kind during the six months ended June 30, 2017. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (2) LONG-TERM DEBT – At June 30, 2017, long-term debt was comprised of the following: (In thousands) 10% Senior Secured Toggle Notes due 2020: Principal $ 697,195 Discount, net of amortization (10,673 ) 7¾% Convertible Second Lien PIK Notes due 2019: Principal 273,832 Accrued interest payable in kind 5,276 Discount, net of amortization (50,999 ) 9½% Convertible Second Lien PIK Notes due 2020: Principal 178,580 Accrued interest payable in kind 728 Discount, net of amortization (35,963 ) 10% Senior Notes due 2020: Principal 2,805 7¾% Senior Notes due 2019: Principal 17,959 Premium, net of amortization 92 9½% Senior Notes due 2020: Principal 4,860 Discount, net of amortization (84 ) Debt issuance costs, net of amortization (13,368 ) $ 1,070,240 Interest on the 10% Senior Secured Toggle Notes is payable on March 15 and September 15 and the notes mature on March 15, 2020. The Company has the option to pay up to $75.0 million of accrued interest by issuing additional notes. To the extent that interest is paid in kind, the interest rate increases to 12¼% only for that interest payment and would result in up to an additional $91.9 million of notes outstanding. Interest on the 7¾% Convertible Second Lien PIK Notes is payable on April 1 and October 1 and these notes mature on April 1, 2019. Interest on the 9½% Convertible Second Lien PIK Notes is payable on June 15 and December 15 and these notes mature on June 15, 2020. Interest on the convertible notes is only payable in kind. Each series of the convertible notes is convertible, at the option of the holder, into 81.2 shares of the Company's common stock for each $1,000 of principal amount of notes. The convertible notes will mandatorily convert into shares of common stock following a 15 consecutive trading day period during which the daily volume weighted average price of the Company's common stock is equal to or greater than $12.32 per share. $9.9 million of principal amount of the convertible notes plus accrued interest thereon were converted into 826,327 shares of common stock during the six months ended June 30, 2017. During the six months ended June 30, 2016, the Company retired $87.5 million in principal amount of the 2019 Notes and $19.8 million of the 2020 Notes in exchange in the aggregate for the issuance of 2,748,403 shares of common stock and $3.5 million in cash. A gain of $89.6 million was recognized on the exchanges and purchases of the 2019 Notes and the 2020 Notes during the six months ended June 30, 2016. The gain is included in the net gain on extinguishment of debt for the difference between the market value of the stock on the closing date of the exchange and the net carrying value of the debt and the related net premium and net debt issuance costs. Comstock has a $50.0 million revolving credit facility with Bank of Montreal and Bank of America, N.A. that matures March 4, 2019. As of June 30, 2017, the Company did not have any borrowings outstanding under the revolving credit facility. Indebtedness under the revolving credit facility is guaranteed by all of the Company's subsidiaries and is secured by substantially all of Comstock's and its subsidiaries' assets. Borrowings under the revolving credit facility bear interest, at Comstock's option, at either (1) LIBOR plus 2.5% or (2) the base rate (which is the higher of the administrative agent's prime rate, the federal funds rate plus 0.5% or 30 day LIBOR plus 1.0%) plus 1.5%. A commitment fee of 0.5% per annum is payable quarterly on the unused credit line. The revolving credit facility contains covenants that, among other things, restrict the payment of cash dividends and repurchases of common stock, limit the amount of additional debt that Comstock may incur and limit the Company's ability to make certain loans, investments and divestitures. The only financial covenants are the maintenance of a current ratio, including availability under the revolving credit facility, of at least 1.0 to 1.0 and the maintenance of an asset coverage ratio of proved developed reserves to amounts outstanding under the revolving credit facility of at least 2.5 to 1.0. The Company was in compliance with these covenants as of June 30, 2017. All of the Company's subsidiaries guarantee the bank credit facility, the 10% Senior Secured Toggle Notes, the 7¾% Convertible Second Lien PIK Notes, the 9½% Convertible Second Lien PIK Notes, and the other outstanding senior notes. The bank credit facility, the 10% Senior Secured Toggle Notes and the convertible notes are secured by liens on substantially all of the assets of the Company and its subsidiaries. The allocation of proceeds related to the liens on the Company's assets are governed by intercreditor agreements granting priority to the bank credit facility. Proceeds from liens on the convertible notes are also subject to the priority of the 10% Senior Secured Toggle Notes. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | (3) STOCKHOLDERS' EQUITY – At June 30, 2017 the Company had warrants outstanding to purchase 415,087 shares of common stock at an exercise price of $0.01 per share. Warrants for 246,793 shares of common stock were exercised during the six months ended June 30, 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (4) Commitments and Contingencies – From time to time, Comstock 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 or results of operations. The Company has entered into natural gas transportation and treating agreements through July 2019. Maximum commitments under these transportation agreements as of June 30, 2017 totaled $3.3 million. As of June 30, 2017, the Company had commitments for contracted drilling services through April 2018 of $9.9 million. |
Summary of Significant Accoun11
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock Resources, Inc. and subsidiaries ("Comstock" or the "Company") as of June 30, 2017, the related results of operations for the three months and six months ended June 30, 2017 and 2016, and cash flows for the six months ended June 30, 2017 and 2016. Net loss and comprehensive loss 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, 2016. The results of operations for the three months and six months ended June 30, 2017 are not necessarily an indication of the results expected for the full year. These unaudited consolidated financial statements include the accounts of Comstock and its wholly-owned subsidiaries. On July 29, 2016, the Company effected a one-for-five (1:5) reverse split of its outstanding shares of common stock. All amounts disclosed in these financial statements have been adjusted to give effect to this reverse stock split in all periods. |
Property and Equipment | Property and Equipment The Company follows the successful efforts method of accounting for its oil and gas properties. Costs incurred to acquire oil and gas leasehold are capitalized. In January 2017, the Company entered an agreement to jointly develop certain acreage prospective for the Haynesville shale in Louisiana and Texas with USG Properties Haynesville, LLC ("USG"). As of June 30, 2017, USG has acquired 6,382 net acres prospective for Haynesville shale development for the joint development program. The Company operates wells drilled on USG's acreage and has the right to acquire a 25% working interest in the acreage by reimbursing USG for the attributable acreage costs of the wells being drilled. Comstock received $80,000 for each well drilled as consideration for the Company's services managing the drilling program in addition to customary operating fees. Comstock and USG plan to continue to acquire additional acreage for the joint development venture. In January 2016, the Company designated certain of its natural gas properties located in South Texas as held for sale and recognized an impairment charge of $20.8 million in the six months ended June 30, 2016 to adjust the carrying value of these assets to their estimated net realizable value. The sale of these properties was completed in December 2016. In January 2016, the Company exchanged certain oil and gas properties with another operator in a non-monetary exchange. Under the exchange, the Company received acreage in DeSoto Parish, Louisiana, prospective for the Haynesville shale, including four producing wells (3.5 net). The Company exchanged acreage in Atascosa County, Texas, including seven producing wells (5.3 net) for the Haynesville shale properties. The Company recognized a gain of $0.7 million on this transaction which is included in the loss on sale of oil and gas properties for the six months ended June 30, 2016. The Company also sold certain other oil and gas properties during the first six months of 2016 for total proceeds of $2.1 million. The Company recognized a loss of $1.6 million on these divestitures. Results of operations for the properties that were sold or held for sale were as follows: Three Months June 30, 2016 Six Months June 30, 2016 (In thousands) Total oil and gas sales 1,728 3,528 Total operating expenses (1) (1,712 ) (3,399 ) Operating income $ 16 $ 129 (1) Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale. Unproved oil and gas properties are periodically assessed and any impairment in value is charged to exploration expense. The costs of unproved properties which are determined to be productive are transferred to oil and gas properties and amortized on an equivalent unit-of-production basis. The Company recognized an impairment included in exploration expense of $7.8 million in the six months ended June 30, 2016 related to leases that were expiring on certain of its unproved oil and gas properties. The Company also assesses the need for an impairment of the capitalized costs for its proved oil and gas properties on a property basis. Accordingly, the Company recognized additional impairments of its oil and gas properties of $1.7 million and $3.7 million for the three months and six months ended June 30, 2016, respectively, to reduce the carrying value of certain properties to their estimated fair value. 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 further impairments in the carrying values of these or other properties. |
Accrued Expenses | Accrued Expenses Accrued expenses at June 30, 2017 and December 31, 2016 consist of the following: As of As of (In thousands) Accrued drilling costs $ 8,313 $ 7,498 Accrued interest payable 20,938 22,721 Accrued transportation costs 2,785 2,227 Accrued employee compensation 2,561 6,292 Accrued ad valorem taxes 1,800 — Other 1,766 1,628 $ 38,163 $ 40,366 |
Reserve for Future Abandonment Costs | 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 six months ended June 30, 2017 and 2016: Six Months Ended June 30, 2017 2016 (In thousands) Future abandonment costs — beginning of period $ 15,804 $ 20,093 Accretion expense 431 496 New wells placed on production 4 2 Assets held for sale — (3,442 ) Liabilities settled and assets disposed of (36 ) (1,177 ) Future abandonment costs — end of period $ 16,203 $ 15,972 |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Comstock periodically uses swaps, floors and collars to hedge oil and natural gas prices and interest rates. Swaps are settled monthly based on differences between the prices specified in the instruments and the settlement prices of futures contracts. Generally, when the applicable settlement price is less than the price specified in the contract, Comstock receives a settlement from the counterparty based on the difference multiplied by the volume or amounts hedged. Similarly, when the applicable settlement price exceeds the price specified in the contract, Comstock pays the counterparty based on the difference. Comstock generally receives a settlement from the counterparty for floors when the applicable settlement price is less than the price specified in the contract, which is based on the difference multiplied by the volumes hedged. For collars, generally Comstock receives a settlement from the counterparty when the settlement price is below the floor and pays a settlement to the counterparty when the settlement price exceeds the cap. No settlement occurs when the settlement price falls between the floor and cap. 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 and counterparty. The Company had the following outstanding derivative financial instruments used for oil and natural gas price risk management at June 30, 2017: Commodity and Derivative Type Weighted-Average Contract Volume Contract Period Natural Gas Swap Agreements $3.38 per MMBtu 20,745,000 July 2017 – March 2018 None of the Company's derivative contracts were designated as cash flow hedges. The Company recognized cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses). The Company recognized gains of $5.3 million and $18 thousand in the three months ended June 30, 2017 and 2016, respectively, and $13.2 million and $0.7 million in the six months ended June 30, 2017 and 2016, respectively, related to the change in fair value of its natural gas swap agreements. |
Stock-Based Compensation | 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. The Company recognized $1.5 million and $1.2 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and performance stock units ("PSUs") to its employees and directors in the three months ended June 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016, the Company recognized $2.8 million and $2.5 million, respectively, of stock-based compensation expense within general and administrative expenses. During the six months ended June 30, 2017, the Company granted 500,002 shares of restricted stock with a grant date fair value of $5.6 million, or $11.11 per share, to its employees and directors. The fair value of each restricted share on the date of grant was equal to its market price. As of June 30, 2017, Comstock had 688,998 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $11.50 per share. Total unrecognized compensation cost related to unvested restricted stock grants of $6.5 million as of June 30, 2017 is expected to be recognized over a period of 2.0 years. During the six months ended June 30, 2017, the Company granted 241,814 PSUs with a grant date fair value of $4.4 million, or $18.17 per unit, to its employees. As of June 30, 2017, Comstock had 313,248 PSUs outstanding at a weighted average grant date fair value of $17.12 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 626,496 shares of common stock. Total unrecognized compensation cost related to these grants of $4.6 million as of June 30, 2017 is expected to be recognized over a period of 2.4 years. |
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. The deferred tax provision in the first three months and six months of 2017 related to adjustments to the valuation allowances on state net operating loss carryforwards. The deferred income tax provision for the first three months and six months of 2016 related to an increase in the Company's deferred income tax liability resulting from certain state tax law changes enacted during the period. In recording deferred income tax assets, the Company considers whether it is more likely than not that some portion or all of 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 following is an analysis of consolidated income tax expense: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Current - State $ 21 $ 15 $ 97 $ 29 - Federal — — — — Deferred - State 496 73 855 4,519 - Federal — — — — $ 517 $ 88 $ 952 $ 4,548 The difference between the Company's effective tax rate and the 35% federal statutory rate is caused by valuation allowances on deferred taxes and state taxes. The impact of these items varies based upon the Company's projected full year loss and the jurisdictions that are expected to generate the projected losses. The difference between the federal statutory rate of 35% and the effective tax rate on the income (loss) before income taxes is due to the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Tax at statutory rate 35.0 % 35.0 % 35.0 % 35.0 % Tax effect of: Valuation allowance on deferred tax assets (42.1 ) (22.1 ) (40.1 ) (48.5 ) State income taxes, net of federal benefit 5.0 (11.8 ) 4.3 4.2 Other (0.4 ) 0.7 (1.4 ) (0.3 ) Effective tax rate (2.5 )% 1.8 % (2.2 )% (9.6 )% The Company's federal income tax returns for the years subsequent to December 31, 2012, 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, 2011. 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. Future use of the Company's federal and state net operating loss carryforwards may be limited in the event that a cumulative change in the ownership of Comstock's common stock by more than 50% occurs within a three-year period. Such a change in ownership could result in a substantial portion of the Company's net operating loss carryforwards being eliminated or becoming restricted. |
Fair Value Measurements | Fair Value Measurements The Company holds or has held certain items that are required to be measured at fair value. These include cash and cash equivalents held in bank accounts and derivative financial instruments in the form of oil and natural gas price swap agreements. 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. The Company's valuation of cash and cash equivalents is a Level 1 measurement. The Company's natural gas price swap agreements are not traded on a public exchange. Their value is determined utilizing a discounted cash flow model based on inputs that are readily available in public markets and, accordingly, the valuation of these swap agreements is categorized as a Level 2 measurement. The following table summarizes financial assets accounted for at fair value as of June 30, 2017: Carrying Level 1 Level 2 (In thousands) Assets measured at fair value on a recurring basis: Cash and cash equivalents held in bank accounts $ 35,321 $ 35,321 $ — Derivative financial instruments 5,229 — 5,229 Total assets $ 40,550 $ 35,321 $ 5,229 As of June 30, 2017, the Company's other financial instruments, comprised solely of its fixed rate debt, had a carrying value of $1.1 billion and a fair value of $1.1 billion. The fair market value of the Company's fixed rate debt was based on quoted prices as of June 30, 2017, a Level 2 measurement. |
Earnings Per Share | Earnings Per Share Basic earnings per share is determined without the effect of any outstanding potentially dilutive securities and diluted earnings per share is determined with the effect of any outstanding securities that are potentially dilutive. Unvested share-based payment awards containing nonforfeitable rights to dividends are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. 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 contingency period. Common stock warrants represent the right to convert the warrants into common stock at an exercise price of $0.01 per share. The treasury stock method is used to measure the dilutive effect of outstanding PSUs and common stock warrants. The shares that would be issuable upon exercise of the conversion rights contained in the Company's convertible debt for each period are based on the if-converted method for computing potentially dilutive shares of common stock that could be issued upon conversion. Basic and diluted loss per share for the three months and six months ended June 30, 2017 and 2016 were determined as follows: Three Months Ended June 30, 2017 2016 Loss Shares Per Income Shares Per (In thousands, except per share amounts) Net income (loss) $ (21,442 ) $ 4,852 Income allocable to unvested stock grants — (143 ) Basic and diluted net income (loss) attributable $ (21,442 ) 14,749 $ (1.45 ) $ 4,709 11,557 $ 0.41 Six Months Ended June 30, 2017 2016 Loss Shares Per Loss Shares Per (In thousands, except per share amounts) Basic and diluted net loss attributable to $ (44,373 ) 14,488 $ (3.06 ) $ (51,725 ) 10,729 $ (4.82 ) At June 30, 2017 and December 31, 2016, 688,998 and 354,986 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a nonforfeitable 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 during the three months and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Unvested restricted stock 659 350 582 332 For the three months ended June 30, 2017 and 2016, all stock options, unvested PSUs, common stock warrants and contingently issuable shares related to the convertible debt were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share in all periods presented due to the net loss in those periods. Options to purchase common stock, warrants exercisable into common stock, PSUs that were outstanding and contingently issuable shares related to the convertible debt that were excluded as anti-dilutive from the determination of diluted earnings per share are as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands except per share/unit data) Weighted average stock options — 12 — 12 Weighted average exercise price per share $ — $ 166.10 $ — $ 166.10 Weighted average warrants for common stock 433 — 511 — Weighted average exercise price per share $ 0.01 $ — $ 0.01 $ — Weighted average PSUs 313 135 273 138 Weighted average grant date fair value per unit $ 17.12 $ 22.10 $ 17.12 $ 22.10 Weighted average contingently convertible shares 36,181 — 36,331 — Weighted average conversion price per share $ 12.32 $ — $ 12.32 $ — |
Supplementary Information With Respect to the Consolidated Statements of Cash Flows | Supplementary Information With Respect to the Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash payments made for interest and income taxes for the six months ended June 30, 2017 and 2016, respectively, were as follows: Six Months Ended 2017 2016 (In thousands) Interest payments $ 37,846 $ 58,476 Income tax payments $ 3 $ — Interest of $18.6 million related to the Company's convertible notes was paid in-kind during the six months ended June 30, 2017. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases |
Summary of Significant Accoun12
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Results of Operations for Properties | Results of operations for the properties that were sold or held for sale were as follows: Three Months June 30, 2016 Six Months June 30, 2016 (In thousands) Total oil and gas sales 1,728 3,528 Total operating expenses (1) (1,712 ) (3,399 ) Operating income $ 16 $ 129 (1) Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale. |
Summary of Accrued Expenses | Accrued expenses at June 30, 2017 and December 31, 2016 consist of the following: As of As of (In thousands) Accrued drilling costs $ 8,313 $ 7,498 Accrued interest payable 20,938 22,721 Accrued transportation costs 2,785 2,227 Accrued employee compensation 2,561 6,292 Accrued ad valorem taxes 1,800 — Other 1,766 1,628 $ 38,163 $ 40,366 |
Summary of Changes in Reserve for Future Abandonment Costs | The following table summarizes the changes in Comstock's total estimated liability for such obligations during the six months ended June 30, 2017 and 2016: Six Months Ended June 30, 2017 2016 (In thousands) Future abandonment costs — beginning of period $ 15,804 $ 20,093 Accretion expense 431 496 New wells placed on production 4 2 Assets held for sale — (3,442 ) Liabilities settled and assets disposed of (36 ) (1,177 ) Future abandonment costs — end of period $ 16,203 $ 15,972 |
Summary of Outstanding Derivative Financial Instruments | The Company had the following outstanding derivative financial instruments used for oil and natural gas price risk management at June 30, 2017: Commodity and Derivative Type Weighted-Average Contract Volume Contract Period Natural Gas Swap Agreements $3.38 per MMBtu 20,745,000 July 2017 – March 2018 |
Income Tax Expense | The following is an analysis of consolidated income tax expense: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Current - State $ 21 $ 15 $ 97 $ 29 - Federal — — — — Deferred - State 496 73 855 4,519 - Federal — — — — $ 517 $ 88 $ 952 $ 4,548 |
Difference Between Federal Statutory Rate and Effective Tax Rate on the Loss Before Income Taxes Due | The difference between the Company's effective tax rate and the 35% federal statutory rate is caused by valuation allowances on deferred taxes and state taxes. The impact of these items varies based upon the Company's projected full year loss and the jurisdictions that are expected to generate the projected losses. The difference between the federal statutory rate of 35% and the effective tax rate on the income (loss) before income taxes is due to the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Tax at statutory rate 35.0 % 35.0 % 35.0 % 35.0 % Tax effect of: Valuation allowance on deferred tax assets (42.1 ) (22.1 ) (40.1 ) (48.5 ) State income taxes, net of federal benefit 5.0 (11.8 ) 4.3 4.2 Other (0.4 ) 0.7 (1.4 ) (0.3 ) Effective tax rate (2.5 )% 1.8 % (2.2 )% (9.6 )% |
Summary of Financial Assets and Liabilities at Fair Value | The following table summarizes financial assets accounted for at fair value as of June 30, 2017: Carrying Level 1 Level 2 (In thousands) Assets measured at fair value on a recurring basis: Cash and cash equivalents held in bank accounts $ 35,321 $ 35,321 $ — Derivative financial instruments 5,229 — 5,229 Total assets $ 40,550 $ 35,321 $ 5,229 |
Basic and Diluted Losses Per Share | Basic and diluted loss per share for the three months and six months ended June 30, 2017 and 2016 were determined as follows: Three Months Ended June 30, 2017 2016 Loss Shares Per Income Shares Per (In thousands, except per share amounts) Net income (loss) $ (21,442 ) $ 4,852 Income allocable to unvested stock grants — (143 ) Basic and diluted net income (loss) attributable $ (21,442 ) 14,749 $ (1.45 ) $ 4,709 11,557 $ 0.41 Six Months Ended June 30, 2017 2016 Loss Shares Per Loss Shares Per (In thousands, except per share amounts) Basic and diluted net loss attributable to $ (44,373 ) 14,488 $ (3.06 ) $ (51,725 ) 10,729 $ (4.82 ) |
Weighted Average Shares of Unvested Restricted Stock | Weighted average shares of unvested restricted stock outstanding during the three months and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Unvested restricted stock 659 350 582 332 |
Common Stock Stock Options and Convertible Stock Excluded as Anti-Dilutive from Determination of Diluted Earnings Per Share | For the three months ended June 30, 2017 and 2016, all stock options, unvested PSUs, common stock warrants and contingently issuable shares related to the convertible debt were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share in all periods presented due to the net loss in those periods. Options to purchase common stock, warrants exercisable into common stock, PSUs that were outstanding and contingently issuable shares related to the convertible debt that were excluded as anti-dilutive from the determination of diluted earnings per share are as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands except per share/unit data) Weighted average stock options — 12 — 12 Weighted average exercise price per share $ — $ 166.10 $ — $ 166.10 Weighted average warrants for common stock 433 — 511 — Weighted average exercise price per share $ 0.01 $ — $ 0.01 $ — Weighted average PSUs 313 135 273 138 Weighted average grant date fair value per unit $ 17.12 $ 22.10 $ 17.12 $ 22.10 Weighted average contingently convertible shares 36,181 — 36,331 — Weighted average conversion price per share $ 12.32 $ — $ 12.32 $ — |
Cash Payments Made for Interest and Income Taxes | Cash payments made for interest and income taxes for the six months ended June 30, 2017 and 2016, respectively, were as follows: Six Months Ended 2017 2016 (In thousands) Interest payments $ 37,846 $ 58,476 Income tax payments $ 3 $ — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | At June 30, 2017, long-term debt was comprised of the following: (In thousands) 10% Senior Secured Toggle Notes due 2020: Principal $ 697,195 Discount, net of amortization (10,673 ) 7¾% Convertible Second Lien PIK Notes due 2019: Principal 273,832 Accrued interest payable in kind 5,276 Discount, net of amortization (50,999 ) 9½% Convertible Second Lien PIK Notes due 2020: Principal 178,580 Accrued interest payable in kind 728 Discount, net of amortization (35,963 ) 10% Senior Notes due 2020: Principal 2,805 7¾% Senior Notes due 2019: Principal 17,959 Premium, net of amortization 92 9½% Senior Notes due 2020: Principal 4,860 Discount, net of amortization (84 ) Debt issuance costs, net of amortization (13,368 ) $ 1,070,240 |
Summary of Significant Accoun14
Summary of Significant Accounting Policies - Additional Information 1 (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2016aWell | Jun. 30, 2017USD ($)a | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)a | Jun. 30, 2016USD ($) | |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||||
Immaterial reduction in prior year debt discount amortization expense included in current period | $ 2,900,000 | $ 2,900,000 | ||||
Reverse share split | 0.2 | |||||
Reverse share split description | a one-for-five (1:5) reverse split | |||||
Joint venture net acreage | a | 6,382 | 6,382 | ||||
JV acreage cost reimbursement working interest per well | 25.00% | 25.00% | ||||
Proceeds received per JV drilled well | $ 80,000 | |||||
Impairment of oil and gas properties | $ 1,742,000 | $ 24,460,000 | ||||
Property exchange gross wells received | Well | 4 | |||||
Property exchange net wells received | a | 3.5 | |||||
Property exchange gross wells disposed | Well | 7 | |||||
Property exchange net wells disposed | a | 5.3 | |||||
Gain on property exchange of oil and gas properties | 700,000 | |||||
Net proceeds from sale of oil and gas properties | 2,100 | |||||
Loss on sale of oil and gas properties | (1,600) | |||||
Impairment of unproved oil and natural gas properties | 7,800,000 | |||||
Cash flow hedges derivative instruments | $ 0 | 0 | ||||
Commodity Derivatives | Natural Gas Properties | ||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||||
Gain on derivative financial instruments | $ 5,300,000 | 18,000 | $ 13,200,000 | 700,000 | ||
Oil and Gas Properties Impairment related to Assets Held For Sale | ||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment of oil and gas properties | 20,800,000 | |||||
Oil and Gas Properties Impairment excluding Assets Held For Sale | ||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment of oil and gas properties | $ 1,700,000 | $ 3,700,000 |
Summary of Significant Accoun15
Summary of Significant Accounting Policies - Operating Income (Loss) Results of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | ||
Oil And Gas Properties Sold [Abstract] | |||
Total oil and gas sales | $ 1,728 | $ 3,528 | |
Total operating expenses | [1] | (1,712) | (3,399) |
Operating income | $ 16 | $ 129 | |
[1] | Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Accrued drilling costs | $ 8,313 | $ 7,498 |
Accrued interest payable | 20,938 | 22,721 |
Accrued transportation costs | 2,785 | 2,227 |
Accrued employee compensation | 2,561 | 6,292 |
Accrued ad valorem taxes | 1,800 | |
Other | 1,766 | 1,628 |
Total accrued expenses | $ 38,163 | $ 40,366 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies - Summary of Changes in Reserve for Future Abandonment Costs (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Asset Retirement Obligations Noncurrent [Abstract] | ||
Future abandonment costs — beginning of period | $ 15,804 | $ 20,093 |
Accretion expense | 431 | 496 |
New wells placed on production | 4 | 2 |
Assets held for sale | (3,442) | |
Liabilities settled and assets disposed of | (36) | (1,177) |
Future abandonment costs — end of period | $ 16,203 | $ 15,972 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies - Summary of Outstanding Derivative Financial Instruments (Detail) - Natural Gas Swap Agreements | 6 Months Ended |
Jun. 30, 2017MMBTU$ / MMBTU | |
Derivative [Line Items] | |
Commodity Derivatives Weighted Average Contract Price | $ / MMBTU | 3.38 |
Commodity Derivatives Contract Volume | MMBTU | 20,745,000 |
Commodity Derivatives Beginning of Remaining Contract Period | Jul. 1, 2017 |
Commodity Derivatives End of Remaining Contract Period | Mar. 31, 2018 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies - Additional Information 2 (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)Unit$ / shares$ / EquityUnitshares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Unit$ / shares$ / EquityUnitshares | Jun. 30, 2016USD ($) | Dec. 31, 2016shares | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Stock-based compensation expense recognized | $ 2,815 | $ 2,493 | |||
Restricted Stock | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of shares granted | shares | 500,002 | ||||
Restricted stock grant date fair value | $ 5,600 | ||||
Grant date fair value of share units, per share | $ / shares | $ 11.11 | ||||
Shares of unvested restricted stock outstanding | shares | 688,998 | 688,998 | 354,986 | ||
Weighted average grant date fair value of stock grants per share | $ / shares | $ 11.50 | $ 11.50 | |||
Unrecognized compensation cost related to unvested restricted stock | $ 6,500 | $ 6,500 | |||
Period in which compensation cost expected to be recognized | 2 years | ||||
Potential Performance Shares (PSU) | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Period in which compensation cost expected to be recognized | 2 years 4 months 24 days | ||||
Number of units granted | Unit | 241,814 | ||||
Performance share units grant date fair value | $ 4,400 | ||||
Grant date fair value of share units, per unit | $ / EquityUnit | 18.17 | ||||
Number of performance stock units ("PSUs") outstanding | Unit | 313,248 | 313,248 | |||
Weighted average grant date fair value of PSUs per unit | $ / EquityUnit | 17.12 | 17.12 | |||
Minimum final number of shares of common stock issuable based on performance multiplier | shares | 0 | ||||
Maximum final number of shares of common stock issuable based on performance multiplier | shares | 626,496 | ||||
Unrecognized expense, performance share units | $ 4,600 | ||||
General and Administrative Expense | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Stock-based compensation expense recognized | $ 1,500 | $ 1,200 | $ 2,800 | $ 2,500 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current - State | $ 21 | $ 15 | $ 97 | $ 29 |
Deferred - State | 496 | 73 | 855 | 4,519 |
Total | $ 517 | $ 88 | $ 952 | $ 4,548 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Additional Information 3 (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Cumulative common stock ownership change over three year period that would limit federal and state net operating loss carry forwards | 50.00% | ||||
Performance multiplier, minimum | 0.00% | ||||
Performance multiplier, maximum | 200.00% | ||||
Warrants for Common Stock exercise price | $ 0.01 | $ 0.01 | |||
Interest paid in-kind | $ 18,594 | ||||
Convertible Notes | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Interest paid in-kind | $ 18,600 | ||||
Restricted Stock | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Shares of unvested restricted stock outstanding | 688,998 | 688,998 | 354,986 | ||
Fixed Rate Debt | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term debt, including current portion, Carrying Value | $ 1,100,000 | $ 1,100,000 | |||
Level 2 | Fixed Rate Debt | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Long-term debt, including current portion, Fair Value | $ 1,100,000 | $ 1,100,000 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Difference Between Federal Statutory Rate and Effective Tax Rate on the Income (Loss) Before Income Taxes Due (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Tax at statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Tax effect of: | ||||
Valuation allowance on deferred tax assets | (42.10%) | (22.10%) | (40.10%) | (48.50%) |
State income taxes, net of federal benefit | 5.00% | (11.80%) | 4.30% | 4.20% |
Other | (0.40%) | 0.70% | (1.40%) | (0.30%) |
Effective tax rate | (2.50%) | 1.80% | (2.20%) | (9.60%) |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Summary of Financial Assets at Fair Value (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Assets measured at fair value on a recurring basis: | |
Derivative financial instruments | $ 5,229 |
Fair Value, Measurements, Recurring | |
Assets measured at fair value on a recurring basis: | |
Cash and cash equivalents held in bank accounts | 35,321 |
Derivative financial instruments | 5,229 |
Total assets | 40,550 |
Fair Value, Measurements, Recurring | Level 1 | |
Assets measured at fair value on a recurring basis: | |
Cash and cash equivalents held in bank accounts | 35,321 |
Total assets | 35,321 |
Fair Value, Measurements, Recurring | Level 2 | |
Assets measured at fair value on a recurring basis: | |
Derivative financial instruments | 5,229 |
Total assets | $ 5,229 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (21,442) | $ 4,852 | $ (44,373) | $ (51,725) |
Income allocable to unvested stock grants | (143) | |||
Basic and diluted net income (loss) attributable to common stock | $ (21,442) | $ 4,709 | $ (44,373) | $ (51,725) |
Basic and diluted weighted average shares outstanding | 14,749 | 11,557 | 14,488 | 10,729 |
Net income (loss) per share - basic and diluted | $ (1.45) | $ 0.41 | $ (3.06) | $ (4.82) |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Weighted Average Shares of Unvested Restricted Stock (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Unvested restricted stock | 659 | 350 | 582 | 332 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Common Stock Stock Options and Convertible Stock Excluded as Anti-Dilutive from Determination of Diluted Earnings Per Share (Detail) shares in Thousands, EquityUnit in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017EquityUnit$ / shares$ / EquityUnitshares | Jun. 30, 2016EquityUnit$ / shares$ / EquityUnitshares | Jun. 30, 2017EquityUnit$ / shares$ / EquityUnitshares | Jun. 30, 2016EquityUnit$ / shares$ / EquityUnitshares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average stock options | shares | 12 | 12 | ||
Weighted average warrants for common stock | shares | 433 | 511 | ||
Weighted average PSUs | EquityUnit | 313 | 135 | 273 | 138 |
Weighted average grant date fair value per unit | $ / EquityUnit | 17.12 | 22.10 | 17.12 | 22.10 |
Weighted average contingently convertible shares | shares | 36,181 | 36,331 | ||
Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average exercise price per share | $ / shares | $ 166.10 | $ 166.10 | ||
Warrants for Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average exercise price per share | $ / shares | $ 0.01 | $ 0.01 | ||
Contingently Convertible Shares | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Weighted average exercise price per share | $ / shares | $ 12.32 | $ 12.32 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Cash Payments Made for Interest and Income Taxes (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Payments [Abstract] | ||
Interest payments | $ 37,846 | $ 58,476 |
Income tax payments | $ 3 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt issuance costs, net of amortization | $ (13,368) | |
Long-term Debt | 1,070,240 | $ 1,044,506 |
10% Senior Secured Toggle Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Principal | 697,195 | |
Discount, net of amortization | (10,673) | |
7¾% Convertible Second Lien PIK Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Principal | 273,832 | |
Accrued interest payable in kind | 5,276 | |
Discount, net of amortization | (50,999) | |
9½% Convertible Second Lien PIK Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Principal | 178,580 | |
Accrued interest payable in kind | 728 | |
Discount, net of amortization | (35,963) | |
10% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Principal | 2,805 | |
7¾% Senior Notes due 2019 | ||
Debt Instrument [Line Items] | ||
Principal | 17,959 | |
Premium, net of amortization | 92 | |
9½% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Principal | 4,860 | |
Discount, net of amortization | $ (84) |
Long-term Debt - Long-Term De29
Long-term Debt - Long-Term Debt (Parenthetical) (Detail) | Jun. 30, 2017 |
10% Senior Secured Toggle Notes due 2020 | |
Debt Instrument [Line Items] | |
Interest rate on debt instrument | 10.00% |
7¾% Convertible Second Lien PIK Notes due 2019 | |
Debt Instrument [Line Items] | |
Interest rate on debt instrument | 7.75% |
9½% Convertible Second Lien PIK Notes due 2020 | |
Debt Instrument [Line Items] | |
Interest rate on debt instrument | 9.50% |
10% Senior Notes due 2020 | |
Debt Instrument [Line Items] | |
Interest rate on debt instrument | 10.00% |
7¾% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Interest rate on debt instrument | 7.75% |
9½% Senior Notes due 2020 | |
Debt Instrument [Line Items] | |
Interest rate on debt instrument | 9.50% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Day$ / sharesshares | Jun. 30, 2016USD ($)shares | |
Debt Instrument [Line Items] | |||
Gain on extinguishment of debt | $ 56,196,000 | $ 89,576,000 | |
10% Senior Secured Toggle Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Interest payment terms | payable on March 15 and September 15 and the notes mature on March 15, 2020 | ||
Maturity of senior notes | Mar. 15, 2020 | ||
Accrued interest by issuing additional notes | $ 75,000,000 | ||
Interest rate on senior notes, payment in kind | 12.25% | ||
Maximum notes issuable for toggle interest paid in kind | $ 91,900,000 | ||
7¾% Convertible Second Lien PIK Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Interest payment terms | payable on April 1 and October 1 | ||
Maturity of senior notes | Apr. 1, 2019 | ||
9½% Convertible Second Lien PIK Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Interest payment terms | payable on June 15 and December 15 | ||
Maturity of senior notes | Jun. 15, 2020 | ||
Interest payment commencing date | Dec. 15, 2016 | ||
Convertible Second Lien PIK Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument convertible conversion ratio | 0.0812 | ||
Debt instrument convertible threshold consecutive trading days period | Day | 15 | ||
Convertible Second Lien PIK Notes | Minimum | |||
Debt Instrument [Line Items] | |||
Daily volume weighted average price | $ / shares | $ 12.32 | ||
Converted Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount and accrued interest | $ 9,900,000 | ||
Common stock shares exchanged for repayment of principal amount | shares | 826,327 | ||
7¾% Senior Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Principal amount of notes repurchased | 87,500,000 | 87,500,000 | |
9½% Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Principal amount of notes repurchased | $ 19,800,000 | $ 19,800,000 | |
7 3/4% Senior Notes due 2019 and 9 1/2% Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Common stock shares exchanged for repayment of principal amount | shares | 2,748,403 | ||
Gain on extinguishment of debt | $ 89,600,000 | ||
7 3/4% Senior Notes due 2019 and 9 1/2% Senior Notes due 2020 | Payment In Cash | |||
Debt Instrument [Line Items] | |||
Senior notes exchanged in cash | $ 3,500,000 |
Long-Term Debt - Additional I31
Long-Term Debt - Additional Information 1 (Detail) - Revolving Credit Facility | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Bank credit facility | $ 50,000,000 |
Maturity of credit facility | Mar. 4, 2019 |
Credit facility amount outstanding | $ 0 |
Spread rate over LIBOR for interest rate on credit facility | 2.50% |
Stated percentage over federal funds rate to calculate base rate | 0.50% |
Stated percentage over 30 day LIBOR to calculate base rate | 1.00% |
Spread rate over base rate for interest rate on credit facility | 1.50% |
Commitment fee on unused borrowing base | 0.50% |
Current ratio | 100.00% |
Asset coverage ratio | 250.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Equity [Abstract] | |
Warrants outstanding | 415,087 |
Exercise price of warrants for common stock | $ / shares | $ 0.01 |
Common stock warrants exercised, Shares | 246,793 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Natural gas transportation and treating agreements | through July 2019 |
Maximum commitments under natural gas transportation and treating agreements | $ 3.3 |
Contract term related to drilling rigs | through April 2018 |
Commitments for contracted drilling services | $ 9.9 |