Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ENERGEN CORP | |
Entity Central Index Key | 277,595 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 97,201,944 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 252 | $ 386,093 |
Accounts receivable, net | 129,219 | 73,322 |
Inventories, net | 14,538 | 14,222 |
Derivative instruments | 3,895 | 50 |
Income tax receivable | 9,598 | 27,153 |
Prepayments and other | 5,838 | 5,071 |
Total current assets | 163,340 | 505,911 |
Oil and natural gas properties, successful efforts method | ||
Proved properties | 8,256,046 | 7,543,464 |
Unproved properties | 448,974 | 196,888 |
Less accumulated depreciation, depletion and amortization | (4,071,508) | (3,723,669) |
Oil and natural gas properties, net | 4,633,512 | 4,016,683 |
Other property and equipment, net | 45,198 | 44,869 |
Total property, plant and equipment, net | 4,678,710 | 4,061,552 |
Other postretirement assets | 3,583 | 3,619 |
Noncurrent derivative instruments | 1,064 | 0 |
Other assets | 6,879 | 8,741 |
TOTAL ASSETS | 4,853,576 | 4,579,823 |
Current Liabilities | ||
Long-term debt due within one year | 0 | 24,000 |
Accounts payable | 101,819 | 65,031 |
Accrued taxes | 14,585 | 7,252 |
Accrued wages and benefits | 21,268 | 25,089 |
Accrued capital costs | 67,176 | 79,988 |
Revenue and royalty payable | 48,429 | 51,217 |
Derivative instruments | 18,089 | 65,467 |
Other | 11,402 | 20,160 |
Total current liabilities | 282,768 | 338,204 |
Long-term debt | 765,759 | 527,443 |
Asset retirement obligations | 86,643 | 81,544 |
Deferred income taxes | 535,002 | 495,888 |
Noncurrent derivative instruments | 2,962 | 3,006 |
Other long-term liabilities | 7,162 | 13,136 |
Total liabilities | 1,680,296 | 1,459,221 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock, cumulative, $0.01 par value, 5,000,000 shares authorized | 0 | 0 |
Common shareholders’ equity | ||
Common stock, $0.01 par value; 150,000,000 shares authorized; 100,326,196 shares and 100,138,797 shares issued at September 30, 2017 and December 31, 2016, respectively | 1,003 | 1,001 |
Premium on capital stock | 1,384,518 | 1,372,569 |
Retained earnings | 1,922,731 | 1,878,503 |
Accumulated other comprehensive income, net of tax | ||
Postretirement plans | 1,197 | 1,405 |
Deferred compensation plan | 2,790 | 2,261 |
Treasury stock, at cost; 3,195,499 shares and 3,125,715 shares at September 30, 2017 and December 31, 2016, respectively | (138,959) | (135,137) |
Total shareholders’ equity | 3,173,280 | 3,120,602 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 4,853,576 | $ 4,579,823 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Shareholders’ Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 100,326,196 | 100,138,797 |
Treasury stock, shares (in shares) | 3,195,499 | 3,125,715 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Oil, natural gas liquids and natural gas sales | $ 249,114 | $ 163,973 | $ 644,212 | $ 458,374 |
Gain (loss) on derivative instruments, net | (57,610) | 20,412 | 45,037 | (40,005) |
Total revenues | 191,504 | 184,385 | 689,249 | 418,369 |
Operating Costs and Expenses | ||||
Oil, natural gas liquids and natural gas production | 44,549 | 42,280 | 129,746 | 132,847 |
Production and ad valorem taxes | 15,326 | 10,987 | 41,364 | 33,422 |
Depreciation, depletion and amortization | 131,756 | 108,167 | 352,957 | 344,564 |
Asset impairment | 100 | 587 | 1,589 | 220,612 |
Exploration | 625 | 18 | 6,259 | 1,780 |
General and administrative (including stock-based compensation of $4,713 and $6,518 for the three months ended September 30, 2017 and 2016, respectively, and $11,101 and $14,493 for the nine months ended September 30, 2017 and 2016, respectively) | 21,474 | 21,710 | 61,665 | 74,783 |
Accretion of discount on asset retirement obligations | 1,473 | 1,556 | 4,330 | 5,092 |
Gain on sale of assets and other | (5,977) | (91,222) | (6,980) | (252,097) |
Total operating costs and expenses | 209,326 | 94,083 | 590,930 | 561,003 |
Operating Income (Loss) | (17,822) | 90,302 | 98,319 | (142,634) |
Other Income (Expense) | ||||
Interest expense | (9,928) | (8,987) | (28,039) | (27,858) |
Other income | 58 | 421 | 486 | 580 |
Total other expense | (9,870) | (8,566) | (27,553) | (27,278) |
Income (Loss) Before Income Taxes | (27,692) | 81,736 | 70,766 | (169,912) |
Income tax expense (benefit) | (9,206) | 28,422 | 26,368 | (56,869) |
Net Income (Loss) | $ (18,486) | $ 53,314 | $ 44,398 | $ (113,043) |
Diluted Earnings Per Average Common Share (in dollars per share) | $ (0.19) | $ 0.55 | $ 0.45 | $ (1.21) |
Basic Earnings Per Average Common Share (in dollars per share) | $ (0.19) | $ 0.55 | $ 0.46 | $ (1.21) |
Diluted Average Common Shares Outstanding (in shares) | 97,198 | 97,511 | 97,678 | 93,602 |
Basic Average Common Shares Outstanding (in shares) | 97,198 | 97,068 | 97,176 | 93,602 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Non-cash stock based compensation | $ 4,713 | $ 6,518 | $ 11,101 | $ 14,493 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (18,486) | $ 53,314 | $ 44,398 | $ (113,043) |
Pension and postretirement plans: | ||||
Amortization of prior service cost, net of tax of ($42), ($43), (129) and ($133), respectively | (71) | (71) | (212) | (219) |
Amortization of net loss, including settlement charges, net of tax of $0, $0, $3 and $1,168, respectively | 2 | 0 | 4 | 1,890 |
Current period change in fair value of pension and postretirement plans, net of tax of ($6) in 2016 | 0 | 0 | 0 | (9) |
Total pension and postretirement plans | (69) | (71) | (208) | 1,662 |
Comprehensive Income (Loss) | $ (18,555) | $ 53,243 | $ 44,190 | $ (111,381) |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of prior service cost, tax | $ (42) | $ (43) | $ 129 | $ (133) |
Amortization of net loss including settlement charges, tax | 0 | 0 | 3 | 1,168 |
Current period change in fair value of pension and postretirement plans, tax | $ 0 | $ 0 | $ 0 | $ (6) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | ||
Net income (loss) | $ 44,398 | $ (113,043) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 352,957 | 344,564 |
Asset impairment | 1,589 | 220,612 |
Accretion of discount on asset retirement obligations | 4,330 | 5,092 |
Deferred income taxes | 39,240 | (78,159) |
Change in derivative fair value | (47,030) | 35,366 |
Gain on sale of assets | (3,972) | (252,510) |
Stock-based compensation expense | 11,101 | 14,493 |
Exploration, including dry holes | 0 | 16 |
Other, net | (3,491) | 3,082 |
Net change in: | ||
Accounts receivable | (55,897) | 38,947 |
Inventories | (316) | (2,439) |
Accounts payable | 31,614 | (11,042) |
Accrued taxes/income tax receivable | 24,888 | 37,646 |
Pension contributions | (89) | (14,576) |
Other current assets and liabilities | (16,545) | (23,580) |
Net cash provided by operating activities | 382,777 | 204,469 |
Investing Activities | ||
Additions to oil and natural gas properties | (720,243) | (314,581) |
Acquisitions | (263,364) | (135,775) |
Proceeds on the sale of assets, net | 4,009 | 537,202 |
Net cash provided by (used in) investing activities | (979,598) | 86,846 |
Financing Activities | ||
Issuance of common stock, net | 273 | 381,219 |
Taxes paid for shares withheld | (3,293) | (2,550) |
Reduction of long-term debt | (24,000) | 0 |
Net change in credit facility | 238,000 | (222,500) |
Tax benefit on stock compensation | 0 | (831) |
Net cash provided by financing activities | 210,980 | 155,338 |
Net change in cash and cash equivalents | (385,841) | 446,653 |
Cash and cash equivalents at beginning of period | 386,093 | 1,272 |
Cash and cash equivalents at end of period | $ 252 | $ 447,925 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION Energen Corporation (Energen or the Company) is an oil and natural gas exploration and production company engaged in the exploration, development and production of oil, natural gas liquids and natural gas. Our operations are conducted through our subsidiary, Energen Resources Corporation (Energen Resources) and primarily occur within the Midland Basin, the Delaware Basin and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. Our corporate headquarters are located in Birmingham, Alabama. The unaudited consolidated financial statements and notes should be read in conjunction with the financial statements and notes thereto included in the 2016 Annual Report of Energen on Form 10-K. Our accompanying unaudited consolidated financial statements include Energen and its subsidiaries, principally Energen Resources, and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the disclosures required for complete financial statements. Results of operations for interim periods are not necessarily indicative of the results that may be expected for the year. In the opinion of management, the accompanying financial statements reflect all adjustments necessary to present a fair statement of our financial position, results of operations, and cash flows for the periods and as of the dates shown. Such adjustments consist of normal recurring items. Certain reclassifications were made to conform prior periods’ financial statements to the current-quarter presentation. Workforce Reduction On January 22, 2016 and March 18, 2016, we reduced our workforce as part of an overall plan to reduce costs and better align our workforce with the needs of our business. In connection with the reductions, we incurred charges of approximately $5.0 million during 2016 for one-time termination benefits which are included in general and administrative expense on the consolidated statements of operations. |
Derivative Commodity Instrument
Derivative Commodity Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Commodity Instruments | DERIVATIVE COMMODITY INSTRUMENTS We periodically enter into derivative commodity instruments to hedge our exposure to price fluctuations on oil, natural gas liquids and natural gas production. These derivative commodity instruments are accounted for as mark-to-market transactions with gains or losses recognized in the period of change in gain (loss) on derivative instruments, net. Such instruments may include over-the-counter (OTC) swaps, options and basis swaps typically executed with investment and commercial banks and energy-trading firms. Derivative transactions are pursuant to standing authorizations by the Board of Directors, which do not authorize speculative positions. The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets: (in thousands) September 30, 2017 Gross Amounts Not Offset in the Balance Sheets Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Financial Instruments Cash Collateral Received Net Fair Value Presented in the Balance Sheets Derivatives not designated as hedging instruments Assets Derivative instruments $ 15,652 $ (11,757 ) $ 3,895 $ — $ — $ 3,895 Noncurrent derivative instruments 3,680 (2,616 ) 1,064 — — 1,064 Total derivative assets 19,332 (14,373 ) 4,959 — — 4,959 Liabilities Derivative instruments 29,846 (11,757 ) 18,089 — — 18,089 Noncurrent derivative instruments 5,578 (2,616 ) 2,962 — — 2,962 Total derivative liabilities 35,424 (14,373 ) 21,051 — — 21,051 Total derivatives $ (16,092 ) $ — $ (16,092 ) $ — $ — $ (16,092 ) (in thousands) December 31, 2016 Gross Amounts Not Offset in the Balance Sheets Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Financial Instruments Cash Collateral Received Net Fair Value Presented in the Balance Sheets Derivatives not designated as hedging instruments Assets Derivative instruments $ 1,756 $ (1,706 ) $ 50 $ — $ — $ 50 Liabilities Derivative instruments 67,173 (1,706 ) 65,467 — — 65,467 Noncurrent derivative instruments 3,006 — 3,006 — — 3,006 Total derivative liabilities 70,179 (1,706 ) 68,473 — — 68,473 Total derivatives $ (68,423 ) $ — $ (68,423 ) $ — $ — $ (68,423 ) Due to the volatility of commodity prices, the estimated fair value of our derivative instruments is subject to fluctuation from period to period, which could result in significant differences between the current estimated fair value and the ultimate settlement price. Additionally, Energen is at risk of economic loss based upon the creditworthiness of our counterparties. We were in a net loss position with nine of our active counterparties and in a net gain position with the remaining five at September 30, 2017 . The three largest counterparty net gain positions at September 30, 2017 , PNC Bank, National Association, Regions Bank and NextEra Energy Power Marketing, LLC, constituted approximately $1.9 million , $1.1 million and $1.0 million , respectively, of Energen’s total net loss on fair value of derivatives. The following table details the effect of open and closed derivative commodity instruments not designated as hedging instruments on the statements of operations: (in thousands) Location on Statements of Operations Three months Three months Gain (loss) recognized in income on derivatives Gain (loss) on derivative instruments, net $ (57,610 ) $ 20,412 (in thousands) Location on Statements of Operations Nine months Nine months Gain (loss) recognized in income on derivatives Gain (loss)on derivative instruments, net $ 45,037 $ (40,005 ) As of September 30, 2017, Energen had entered into the following derivative transactions for the remainder of 2017 and subsequent years: Production Period Description Total Hedged Volumes Weighted Average Contract Price Oil 2017 NYMEX Swaps 2,010 MBbl $50.68 Bbl NYMEX Three-Way Collars 1,200 MBbl Ceiling sold price (call) $62.18 Bbl Floor purchased price (put) $45.00 Bbl Floor sold price (put) $35.00 Bbl 2018 NYMEX Three-Way Collars 13,500 MBbl Ceiling sold price (call) $60.04 Bbl Floor purchased price (put) $45.47 Bbl Floor sold price (put) $35.47 Bbl Oil Basis Differential 2017 WTI/WTI Basis Swaps 2,970 MBbl $(0.68) Bbl 2018 WTI/WTI Basis Swaps 10,800 MBbl $(1.01) Bbl Natural Gas Liquids 2017 Liquids Swaps 20.8 MMGal $0.57 Gal 2018 Liquids Swaps 105.8 MMGal $0.59 Gal Natural Gas 2017 Basin Specific Swaps - Permian 3.9 Bcf $2.85 Mcf 2017 NYMEX Swaps 0.5 Bcf $3.29 Mcf 2018 Basin Specific Swaps - Permian 3.6 Bcf $2.56 Mcf Natural Gas Basis Differential 2017 Permian Swaps 0.5 Bcf $(0.29) Mcf WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing As of September 30, 2017 , the maximum term over which Energen has hedged exposures to the variability of cash flows is through December 31, 2018. Subsequent to September 30, 2017, Energen executed various hedges through December 31, 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In determining fair value, we use various valuation approaches and classify all assets and liabilities based on the lowest level of input that is significant to the fair value measurement. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect our own considerations about the assumptions other market participants would use in pricing the asset or liability based on the best information available in the circumstances. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. The hierarchy is broken down into three levels based on the observability of inputs as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - Pricing inputs other than quoted prices in active markets included within Level 1, which are either directly or indirectly observable through correlation with market data as of the reporting date and Level 3 - Pricing that requires inputs that are both significant and unobservable to the calculation of the fair value measure. The fair value measure represents estimates of the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs are developed based on the best available information and subject to cost-benefit constraints. No transfers between fair value hierarchy levels occurred during the three months and nine months ended September 30, 2017 . Assets and Liabilities Measured at Fair Value on a Recurring Basis Energen classifies the fair value of multiple derivative instruments executed under master netting arrangements as net derivative assets and liabilities. The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis: September 30, 2017 (in thousands) Level 2 Level 3 Total Assets: Derivative instruments $ 3,895 $ — $ 3,895 Noncurrent derivative instruments 1,126 (62 ) 1,064 Total assets 5,021 (62 ) 4,959 Liabilities: Derivative instruments 2,552 15,537 18,089 Noncurrent derivative instruments 944 2,018 2,962 Total liabilities 3,496 17,555 21,051 Net derivative asset (liability) $ 1,525 $ (17,617 ) $ (16,092 ) December 31, 2016 (in thousands) Level 2 Level 3 Total Assets: Derivative instruments $ 50 $ — $ 50 Liabilities: Derivative instruments 57,927 7,540 65,467 Noncurrent derivative instruments 1,694 1,312 3,006 Total liabilities 59,621 8,852 68,473 Net derivative liability $ (59,571 ) $ (8,852 ) $ (68,423 ) Derivative Instruments: The fair value of Energen’s derivative commodity instruments is determined using market transactions and other market evidence whenever possible, including market-based inputs to models and broker or dealer quotations. Our OTC derivative contracts trade in less liquid markets with limited pricing information as compared to markets with actively traded, unadjusted quoted prices; accordingly, the determination of fair value is inherently more difficult. OTC derivatives for which we are able to substantiate fair value through direct or indirect observable market prices are classified within Level 2 of the fair value hierarchy. These Level 2 fair values consist of swaps and options priced in reference to NYMEX oil and natural gas prices. OTC derivatives valued using unobservable market prices have been classified within Level 3 of the fair value hierarchy. These Level 3 fair values include oil basis and natural gas liquids swaps. We consider the frequency of pricing and variability in pricing between sources in determining whether a market is considered active. While Energen does not have access to the specific assumptions used in its counterparties’ valuation models, Energen maintains communications with its counterparties and discusses pricing practices. Further, we corroborate the fair value of our transactions by comparison of market-based price sources. Level 3 Fair Value Instruments: Energen prepared a sensitivity analysis to evaluate the hypothetical effect that changes in the prices used to estimate fair value would have on the fair value of its Level 3 instruments. We estimate that a 10 percent increase or decrease in commodity prices would result in an approximate $7.7 million change in the fair value of open Level 3 derivative contracts and to our results of operations. The table below sets forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows: Three months ended September 30, (in thousands) 2017 2016 Balance at beginning of period $ 7,645 $ (10,650 ) Realized losses (1,548 ) (4,610 ) Unrealized gains (losses) relating to instruments held at the reporting date* (24,112 ) 6,353 Settlements during period 398 4,610 Balance at end of period $ (17,617 ) $ (4,297 ) Nine months ended September 30, (in thousands) 2017 2016 Balance at beginning of period $ (8,852 ) $ (16,059 ) Realized losses (4,588 ) (11,526 ) Unrealized gains (losses) relating to instruments held at the reporting date* (7,616 ) 11,762 Settlements during period 3,439 11,526 Balance at end of period $ (17,617 ) $ (4,297 ) *Includes $23.0 million and $14.2 million in losses related to open contracts held at the reporting date for the three months and nine months ended September 30, 2017, respectively. Includes $1.5 million in gains and $1.6 million in losses for the three months and nine months ended September 30, 2016, respectively. The table below sets forth quantitative information about Energen’s Level 3 fair value measurements of derivative commodity instruments as follows: (in thousands, except price data) Fair Value as of September 30, 2017 Valuation Technique* Unobservable Input* Range Oil Basis - WTI/WTI 2017 $ (285 ) Discounted Cash Flow Forward Basis ($0.55 - $0.62) Bbl 2018 $ (5,166 ) Discounted Cash Flow Forward Basis ($0.50 - $0.58) Bbl Natural Gas Liquids 2017 $ (4,952 ) Discounted Cash Flow Forward Basis $0.75 Gal 2018 $ (7,214 ) Discounted Cash Flow Forward Basis $0.66 Gal *Discounted cash flow represents an income approach in calculating fair value including the referenced unobservable input and a discount reflecting credit quality of the counterparty. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are reported at fair value on a nonrecurring basis in Energen’s consolidated balance sheets. The following methods and assumptions were used to estimate the fair values of these assets and liabilities. Asset retirement obligations: Energen’s asset retirement obligations (ARO) primarily relate to the future plugging, abandonment and reclamation of wells and facilities. We recognize a liability for the fair value of the ARO in the periods incurred. See Note 11, Asset Retirement Obligations, for further discussion related to these ARO’s. These assumptions are classified as Level 3 fair value measurements. Asset Impairments: We monitor our oil and natural gas properties as well as the market and business environments in which we operate and make assessments about events that could result in potential impairment. Such potential events may include, but are not limited to, commodity price declines, unanticipated increased operating costs, and lower than expected field production performance. If a material event occurs, Energen makes an estimate of undiscounted future cash flows to determine whether the asset is impaired. If the asset is impaired, we will record an impairment loss for the difference between the net book value of the properties and the fair value of the properties. The fair value of the properties typically is estimated using discounted cash flows and values derived from purchase and sale agreements and similar support as applicable. Cash flow and fair value estimates require Energen to make projections and assumptions for pricing, demand, competition, operating costs, legal and regulatory issues, discount rates and other factors for many years into the future. These assumptions are classified as Level 3 fair value measurements. See Note 13, Asset Impairment, for impairments recognized by Energen during the three months and nine months ended September 30, 2017 and 2016. Financial Instruments not Carried at Fair Value The stated value of cash and cash equivalents, short-term investments, accounts receivable (net of allowance for doubtful accounts), and short-term debt approximates fair value due to the short maturity of the instruments. The Company invested in certain short-term investments that qualify and were classified as cash and cash equivalents. Energen had an allowance for doubtful accounts of $0.7 million at both September 30, 2017 and December 31, 2016, respectively. The fair value of Energen’s long-term debt, including the current portion, was approximately $779.6 million and $559.9 million and had a carrying value of $768.0 million and $554.0 million at September 30, 2017 and December 31, 2016 , respectively. The fair values are based on market prices of similar debt issues having the same remaining maturities, redemption terms and credit rating. Short-term debt is classified as a Level 1 fair value measurement and long-term debt is classified as a Level 2 fair value measurement. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt consisted of the following: (in thousands) September 30, 2017 December 31, 2016 Credit facility, due August 30, 2019 $ 238,000 $ — 7.40% Medium-term Notes, Series A, due July 24, 2017 — 2,000 7.36% Medium-term Notes, Series A, due July 24, 2017 — 15,000 7.23% Medium-term Notes, Series A, due July 28, 2017 — 2,000 7.32% Medium-term Notes, Series A, due July 28, 2022 20,000 20,000 7.60% Medium-term Notes, Series A, due July 26, 2027 — 5,000 7.35% Medium-term Notes, Series A, due July 28, 2027 10,000 10,000 7.125% Medium-term Notes, Series B, due February 15, 2028 100,000 100,000 4.625% Notes, due September 1, 2021 400,000 400,000 Total 768,000 554,000 Less amounts due within one year — 24,000 Less unamortized debt discount 367 387 Less unamortized debt issuance costs 1,874 2,170 Total $ 765,759 $ 527,443 The aggregate maturities of Energen’s long-term debt outstanding at September 30, 2017 are as follows: (in thousands) Remaining 2017 2018 2019 2020 2021 2022 and thereafter $— $— $238,000 $— $400,000 $130,000 On January 23, 2017, Energen redeemed the $2.0 million of 7.40% Medium-term Notes, Series A, due July 24, 2017 and $5.0 million of 7.60% Medium-term Notes, Series A, due July 26, 2027. The Company also had $17.0 million of scheduled reductions in long-term debt in July 2017. The debt agreements of Energen contain financial and nonfinancial covenants including routine matters such as timely payment of principal and interest, maintenance of corporate existence and restrictions on liens. Although none of the debt agreements have events of default based on credit ratings, the interest rates applicable to the syndicated credit facility discussed below may adjust based on credit rating changes during certain periods. Under Energen’s Indenture dated September 1, 1996 with The Bank of New York as Trustee, a cross default provision provides that any debt default of more than $10 million by Energen or Energen Resources will constitute an event of default by Energen. The Indenture does not include a restriction on the payment of dividends. Credit Facility: On September 2, 2014, Energen entered into a five -year syndicated secured credit facility with domestic and foreign lenders. On October 25, 2016, the borrowing base and aggregate commitments were reaffirmed at $1.05 billion each with no changes in association with the semi-annual redetermination required under the agreement. On April 21, 2017, the borrowing base was increased to $1.4 billion . The aggregate commitments under the credit facility did not change and remained at $1.05 billion . A semi-annual redetermination is in process and expected to be completed in November 2017. Energen’s obligations under the syndicated credit facility are unconditionally guaranteed by Energen Resources. Subject to release of collateral in certain periods upon the achievement of certain investment grade ratings from designated ratings agencies, the credit facility is collateralized by certain assets of Energen and Energen Resources, including a pledge of equity interests in subsidiaries of Energen other than Energen Resources, by mortgages on substantially all of Energen Resources’ oil and natural gas properties and by the pledge of Energen’s and Energen Resources’ deposit accounts, securities accounts and commodity accounts (other than de minimus accounts and excluded accounts). The current credit facility qualifies for classification as long-term debt on the consolidated balance sheets. The financial covenants of the credit facility require Energen to maintain a ratio of total debt to consolidated income before interest expense, income taxes, depreciation, depletion, amortization, exploration expense and other non-cash income and expenses (EBITDAX) less than or equal to 4.0 to 1.0; to maintain a ratio of consolidated current assets (adjusted to include amounts available for borrowings and exclude non-cash derivative instruments) to consolidated current liabilities (adjusted to exclude maturities under the credit facility and non-cash derivative instruments) greater than or equal to 1.0 to 1.0; and, during certain periods, to maintain a ratio of the net present value of proved reserves of our oil and natural gas properties to consolidated total debt greater than or equal to 1.50 to 1.0. We are also bound by covenants which limit our ability to incur additional indebtedness, make certain distributions or alter our corporate structure. Energen may not pay dividends if an event of default exists if the payment would result in an event of default, or if availability is less than 10 percent of the loan limit under the credit facility. Our credit facility also limits our ability to enter into commodity hedges based on projected production volumes. In addition, the terms of our credit facility limit the amount we can borrow to a borrowing base amount which is determined by our lenders in their sole discretion based on their valuation of our proved reserves and their internal criteria including commodity price outlook. The borrowing base amount is subject to redetermination semi-annually and for event-driven unscheduled redeterminations. Our next scheduled redetermination is April 1, 2018. Under the credit facility, a cross default provision provides that any debt default of more than $75 million by Energen or Energen Resources will constitute an event of default by Energen. Upon an uncured event of default under the credit facility, all amounts owing under the credit facility, if any, depending on the nature of the event of default will automatically, or may upon notice by the administrative agent or the requisite lenders thereunder, become immediately due and payable and the lenders may terminate their commitments under the defaulted facility. Energen was in compliance with the terms of its credit facility as of September 30, 2017 . The following is a summary of information relating to Energen’s credit facility: (in thousands) September 30, 2017 December 31, 2016 Credit facility outstanding $ 238,000 $ — Available for borrowings 812,000 1,050,000 Total borrowing commitments $ 1,050,000 $ 1,050,000 Three months ended Nine months ended 2017 2016 2017 2016 Maximum amount outstanding at any month-end $ 238,000 $ — $ 238,000 $ 214,500 Average daily amount outstanding $ 191,810 $ 374 $ 80,476 $ 44,938 Weighted average interest rates based on: Average daily amount outstanding 2.51 % 1.72 % 2.49 % 1.72 % Amount outstanding at period-end 2.49 % — % 2.49 % — % The following is a summary of information relating to Energen’s interest expense: Three months ended Nine months ended 2017 2016 2017 2016 Interest expense $ 9,928 $ 8,987 $ 28,039 $ 27,858 Amortization of debt issuance costs related to long-term debt, including our credit facility* $ 830 $ 828 $ 2,503 $ 2,480 Capitalized interest* $ — $ 54 $ — $ 101 Commitment fees* $ 674 $ 805 $ 2,236 $ 2,605 *Included in Energen’s total interest expense. At September 30, 2017, Energen paid commitment fees on the unused portion of the available credit facility at a current annual rate of 30 basis points. |
Reconciliation of Earnings Per
Reconciliation of Earnings Per Share (EPS) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share (EPS) | RECONCILIATION OF EARNINGS PER SHARE (EPS) Three months ended Three months ended (in thousands, except per share amounts) September 30, 2017 September 30, 2016 Net Per Share Net Per Share Loss Shares Amount Income Shares Amount Basic EPS $ (18,486 ) 97,198 $ (0.19 ) $ 53,314 97,068 $ 0.55 Effect of dilutive securities Stock options — 54 Non-vested restricted stock — 217 Performance share awards — 172 Diluted EPS $ (18,486 ) 97,198 $ (0.19 ) $ 53,314 97,511 $ 0.55 Nine months ended Nine months ended (in thousands, except per share amounts) September 30, 2017 September 30, 2016 Net Per Share Net Per Share Income Shares Amount Loss Shares Amount Basic EPS $ 44,398 97,176 $ 0.46 $ (113,043 ) 93,602 $ (1.21 ) Effect of dilutive securities Stock options 25 — Non-vested restricted stock 284 — Performance share awards 193 — Diluted EPS $ 44,398 97,678 $ 0.45 $ (113,043 ) 93,602 $ (1.21 ) In periods of loss, shares that otherwise would have been included in diluted average common shares outstanding are excluded. The Company had 547,793 of excluded shares for the three months ended September 30, 2017 and 275,005 of excluded shares for the nine months ended September 30, 2016. Energen had the following shares that were excluded from the computation of diluted EPS, as inclusion would be anti-dilutive: Three months ended Nine months ended (in thousands) 2017 2016 2017 2016 Stock options 512 163 512 691 Performance share awards 139 — 139 — |
Equity Offering
Equity Offering | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Equity Offering | EQUITY OFFERING During the first quarter of 2016, Energen issued 18,170,000 additional shares of common stock through a public equity offering. We received net proceeds of approximately $381.1 million , after deducting offering expenses. Net proceeds from this offering were used to repay borrowings under our credit facility and for general corporate purposes. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | STOCK COMPENSATION Stock Incentive Plan Restricted Stock: The Stock Incentive Plan provides for the grant of restricted stock and restricted stock units (restricted stock awards) which have been valued based on the quoted market price of Energen’s common stock at the date of grant. Restricted stock awards vest within three years from grant date. A summary of restricted stock award activity during the nine months ended September 30, 2017 is presented below: Shares Weighted Average Price Nonvested at December 31, 2016 325,643 $ 44.44 Restricted stock units granted 127,661 52.42 Vested (45,576 ) 65.68 Forfeited (2,803 ) 44.68 Nonvested at September 30, 2017 404,925 $ 44.56 Performance Share Awards: In addition, the Stock Incentive Plan provides for the grant of performance share awards to eligible employees based on predetermined Energen performance criteria at the end of an award period. The Stock Incentive Plan provides that payment of earned performance share awards be made in the form of Energen common stock. Performance share awards are valued using the Monte Carlo model which uses historical volatility and other assumptions to estimate the probability of satisfying the market condition of the award and have a three -year vesting period. A summary of performance share award activity during the nine months ended September 30, 2017 is presented below: Shares Weighted Average Price Nonvested at December 31, 2016 336,442 $ 57.03 Granted (two-year vesting period) 3,116 $ 96.54 Granted (three-year vesting period) 137,084 66.89 Vested and paid (59,530 ) 93.52 Forfeited (3,225 ) 46.16 Nonvested at September 30, 2017 413,887 $ 55.43 Stock Repurchase Program During the three months and nine months ended September 30, 2017 , Energen had non-cash purchases of approximately $0.1 million and $3.3 million , respectively, of Energen common stock in conjunction with tax withholdings on other stock compensation and our non-qualified deferred compensation plan. Energen had non-cash purchases of Energen common stock of $0.1 million and $2.6 million during the three months and nine months September 30, 2016. Energen utilized internally generated cash flows in payment of the related tax withholdings. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pension Plans In October 2014, Energen’s Board of Directors elected to freeze and terminate its qualified defined benefit pension plan. A plan amendment adopted in October 2014 closed the plan to new entrants, effective November 1, 2014, and froze benefit accruals effective December 31, 2014. Energen terminated the plan on January 31, 2015 and distributed benefits in December 2015. The Pension Benefit Guaranty Corporation (PBGC) is conducting an audit of the termination of the pension plan to ensure that Energen properly calculated and distributed benefits in accordance with plan provisions and in compliance with the appropriate laws and regulations administered by the PBGC. Energen’s non-qualified supplemental retirement plans were terminated effective December 31, 2014. Distributions under the plans were partially made in the first quarter of 2015 with the remainder of approximately $14.5 million paid in the first quarter of 2016. The Company expects to make no additional benefit payments with respect to the termination of the non-qualified supplemental retirement plans. Certain annuities associated with our non-qualified supplemental retirement plans remain of approximately $1.0 million and $1.1 million and are included in other current liabilities and other long-term liabilities on the consolidated balance sheets at September 30, 2017 and December 31, 2016, respectively. In the first quarter of 2016, Energen incurred a settlement charge of $3.3 million for the payment of lump sums from the non-qualified supplemental retirement plans. Postretirement Benefit Plans Energen provides certain postretirement health care and life insurance benefits for all employees hired prior to January 1, 2010. These postretirement healthcare and life insurance benefits are available upon reaching normal retirement age while working for Energen. The components of net periodic postretirement benefit income for Energen’s postretirement benefit plan were as follows: Three months ended Nine months ended (in thousands) 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 18 $ 24 $ 53 $ 71 Interest cost 57 52 170 170 Expected long-term return on assets (62 ) (68 ) (187 ) (248 ) Prior service cost amortization (114 ) (113 ) (340 ) (351 ) Actuarial loss amortization 2 — 7 — Settlement charge — — — 45 Curtailment gain — — — (816 ) Net periodic income $ (99 ) $ (105 ) $ (297 ) $ (1,129 ) There are no required contributions to the postretirement benefit plan during 2017. In the first quarter of 2016, Energen incurred a curtailment gain of $0.8 million in connection with the reduction in workforce. 2017 Change in Control Severance Pay Plan In November 2017, Energen adopted the Change in Control Severance Pay Plan which provides for certain severance payments to non-officer employees of Energen Corporation in the event of an involuntary termination of employment other than for cause or a voluntary termination for good reason within one year following any Change in Control. Change in Control, as used in the Plan, has the same definition included in Energen’s Severance Compensation Agreements with named executive officers. The Plan has an initial term of three years, with an automatic one -year extension each anniversary absent Company notification that it will not be extended. The Plan may not be terminated (nor may any amendment which adversely affects rights of participants under the Plan become effective) during the one -year period following a Change in Control. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments and Agreements: Under various agreements for third-party gathering, treatment, transportation or other services, Energen is committed to deliver minimum production volumes or to pay certain costs in the event the minimum quantities are not delivered. These delivery commitments are approximately 3.1 million barrels of oil equivalent (MMBOE) through October 2020 . Legal Matters: Energen and its affiliates are, from time to time, parties to various pending or threatened legal proceedings and we have accrued a provision for our estimated liability. Certain of these lawsuits include claims for punitive damages in addition to other specified relief. We recognize a liability for contingencies, including an estimate of legal costs to be incurred, when information available indicates both a loss is probable and the amount of the loss can be reasonably estimated. Based upon information presently available, and in light of available legal and other defenses, contingent liabilities arising from threatened and pending litigation are not considered material in relation to the respective financial positions of Energen and its affiliates. It should be noted, however, that there is uncertainty in the valuation of pending claims and prediction of litigation results. On November 4, 2015, Energen Resources filed a quiet title action against Endeavor Energy Resources, L.P. (Endeavor) in the District Court of Howard County, Texas, to remove a cloud on the title to approximately 10,000 acres leased by Energen Resources in that county. Energen Resources believes the cloud on title arises from a prior, unreleased but partially terminated oil and gas lease covering the leased lands. The trial judge ruled with respect to the acreage not held by production that Endeavor’s lease terminated prior to the date Energen Resources entered into its lease. In November 2016, the trial judge entered a final judgment to that effect and that judgment has been appealed by Endeavor. In September 2017, Energen Resources received an Order from the Bureau of Safety and Environmental Enforcement of the United States Department of the Interior relating to the decommissioning of the wells, drilling platforms and other infrastructure relating to an expired shallow water federal offshore lease. Energen Resources was one of multiple parties that received this Order and is in the preliminary stages of evaluating the Order and any potential exposure related thereto. No amount has been accrued as of September 30, 2017. Environmental Matters: Various environmental laws and regulations apply to the operations of Energen and Energen Resources. Historically, the cost of environmental compliance has not materially affected our financial position, results of operations or cash flows. New regulations, enforcement policies, claims for damages or other events could result in significant unanticipated costs. During January 2014, Energen Resources responded to a General Notice and Information Request from the Environmental Protection Agency regarding the Reef Environmental Site (the Site) in Sylacauga, Talladega County, Alabama. The letter identifies Energen Resources as a potentially responsible party under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 for the cleanup of the Site. In 2008, Energen hired a third party to transport approximately 3,000 gallons of non-hazardous wastewater to Reef Environmental for wastewater treatment. Reef Environmental ceased operating its wastewater treatment system in 2010. Because it used Reef Environmental only one time for a small volume of non-hazardous wastewater, Energen Resources has not accrued a liability for cleanup of the Site. New Mexico Audits: In 2011, Energen Resources received an Order to Perform Restructured Accounting and Pay Additional Royalties (the Order), following an audit performed by the Taxation and Revenue Department (the Department) of the State of New Mexico on behalf of the Office of Natural Resources Revenue (ONRR), of federal oil and gas leases in New Mexico. The audit covered periods from January 2004 through December 2008 and included a review of the computation and payment of royalties due on minerals removed from specified U.S. federal leases. The Order addressed ONRR’s efforts to change accounting and reporting practices, and to unbundle fees charged by third parties that gather, compress and transport natural gas production. ONRR now maintains that all or some of such fees are not deductible. Energen Resources appealed the Order in 2011 and in July 2012, on a motion from ONRR, the Order was remanded. In August 2014, ONRR issued its Revised Order and Energen Resources appealed the Revised Order. In the Revised Order, ONRR ordered that Energen pay additional royalties on production from certain federal leases in the amount of $129,700 . At ONRR’s request, the Revised Order was also remanded in August 2015. On April 15, 2016, ONRR issued its Second Revised Order. The Second Revised Order directs Energen Resources to pay additional royalties of $189,000 , replacing the previous demand of $129,700 . Energen estimates that application of the ONRR position to all of the Company’s federal leases would result in ONRR claims up to approximately $24 million , plus interest and penalties from 2004 forward. ONRR began implementing its unbundling initiative in 2010, but seeks to implement its revisions retroactively, despite the fact that they conflict with previous audits, allowances and industry practice. Energen is contesting the Second Revised Order, the predecessor orders and the findings. Management is unable, at this time, to determine a range of reasonably possible losses, and no amount has been accrued as of September 30, 2017 . Income Taxes: In October 2017, the Company received notification from the Internal Revenue Service of a forthcoming examination of its federal consolidated income tax returns for 2014 and 2016. |
Exploratory Costs
Exploratory Costs | 9 Months Ended |
Sep. 30, 2017 | |
Extractive Industries [Abstract] | |
Exploratory Costs | EXPLORATORY COSTS Energen capitalizes exploratory drilling costs until a determination is made that the well or project has either found proved reserves or is impaired. After an exploratory well has been drilled and found oil and natural gas reserves, a determination may be pending as to whether the oil and natural gas quantities can be classified as proved. In those circumstances, Energen continues to capitalize the drilling costs pending the determination of proved status if (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) Energen is making sufficient progress assessing the reserves and the economic and operating viability of the project. Capitalized exploratory drilling costs are presented in proved properties in the balance sheets. If the exploratory well is determined to be a dry hole, the costs are charged to exploration expense. Other exploration costs, including geological and geophysical costs, are expensed as incurred. The following table sets forth capitalized exploratory well costs and includes additions pending determination of proved reserves, reclassifications to proved reserves and costs charged to expense: Three months ended (in thousands) 2017 2016 Capitalized exploratory well costs at beginning of period $ 141,401 $ 37,438 Additions pending determination of proved reserves 168,965 88,879 Reclassifications due to determination of proved reserves (174,270 ) (44,564 ) Capitalized exploratory well costs at end of period $ 136,096 $ 81,753 Nine months ended (in thousands) 2017 2016 Capitalized exploratory well costs at beginning of period $ 164,996 $ 103,588 Additions pending determination of proved reserves 504,668 250,782 Reclassifications due to determination of proved reserves (533,568 ) (272,617 ) Capitalized exploratory well costs at end of period $ 136,096 $ 81,753 The following table sets forth capitalized exploratory well costs: (in thousands) September 30, 2017 December 31, 2016 Exploratory wells in progress (drilling rig not released) $ 15,309 $ 14,531 Capitalized exploratory well costs capitalized for a period of one year or less 120,787 143,602 Capitalized exploratory well costs for a period greater than one year — 6,863 Total capitalized exploratory well costs $ 136,096 $ 164,996 At September 30, 2017 , Energen had 55 gross exploratory wells either drilling or waiting on results from completion and testing, all of which were located in the Permian Basin. As of September 30, 2017, the Company had no wells capitalized greater than a year. As of December 31, 2016, the Company had two gross wells capitalized greater than a year, which were completed during 2017. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS Energen’s asset retirement obligations (ARO) primarily relate to the future plugging, abandonment and reclamation of wells and facilities. We recognize a liability for the fair value of the ARO in the periods incurred. The ARO fair value liability is determined by calculating the present value of the estimated future cash outflows, adjusted for inflation, we expect to incur to plug, abandon and reclaim our producing properties at the end of their productive lives, and is recognized on a discounted basis incorporating an estimate of performance risk specific to Energen. Subsequent to initial measurement, liabilities are accreted to their present value and capitalized costs are depreciated over the estimated useful lives of the related assets. Upon settlement of the liability, Energen may recognize a gain or loss for differences between estimated and actual settlement costs. The following table reflects the components of the change in Energen’s ARO balance: (in thousands) Balance as of December 31, 2016 $ 81,544 Liabilities incurred 1,072 Liabilities settled (303 ) Accretion expense 4,330 Balance as of September 30, 2017 $ 86,643 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table provides changes in the components of accumulated other comprehensive income (loss), net of the related income tax effects. (in thousands) Balance as of December 31, 2016 $ 1,405 Amounts reclassified from accumulated other comprehensive income (loss) (208 ) Balance as of September 30, 2017 $ 1,197 The following table provides details of the reclassifications out of accumulated other comprehensive income (loss). Three months ended September 30, 2017 2016 (in thousands) Amounts Reclassified Line Item Where Presented Postretirement plans: Prior service cost $ 113 $ 114 General and administrative Actuarial losses (2 ) — General and administrative Total postretirement plans 111 114 Income tax benefit (42 ) (43 ) Total reclassifications for the period, net of tax $ 69 $ 71 Nine months ended September 30, 2017 2016 (in thousands) Amounts Reclassified Line Item Where Presented Pension and postretirement plans: Prior service cost $ 341 $ 352 General and administrative Actuarial losses (7 ) (3,058 ) General and administrative Total pension and postretirement plans 334 (2,706 ) Income tax expense (benefit) (126 ) 1,035 Total reclassifications for the period, net of tax $ 208 $ (1,671 ) |
Asset Impairment
Asset Impairment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Asset Impairment | ASSET IMPAIRMENT Impairments recognized by Energen are presented below: Three months ended Nine months ended (in thousands) 2017 2016 2017 2016 Permian Basin oil properties Central Basin Platform $ — $ — $ 1,096 $ 187,043 Delaware Basin — — — 21,288 San Juan Basin properties — — — 7,519 Permian Basin unproved leasehold properties 100 587 493 4,722 San Juan Basin unproved leasehold properties — — — 40 Total asset impairments $ 100 $ 587 $ 1,589 $ 220,612 Non-cash impairment writedowns are reflected in asset impairment on the consolidated statements of operations. Permian Basin: During the first quarter of 2017, Energen recognized non-cash impairment writedowns in the Permian Basin of $1.1 million to adjust the carrying amount of these properties to their fair value. During the first quarter of 2016, Energen recognized non-cash impairment writedowns in the Permian Basin of $208.3 million to adjust the carrying amount of these properties to their fair value. We estimate future discounted cash flows in determining fair value using commodity assumptions, which are based on the commodity price curve for five years and then escalated at 3 percent through our assumed price cap. Our commodity price assumptions declined in the first quarter of 2016 by approximately 5 percent for oil and 4 percent for natural gas in comparable periods. In the year-to-date 2017, Energen recognized unproved leasehold writedowns primarily on Permian Basin oil properties of $0.5 million . Energen recognized unproved leasehold writedowns primarily on Permian Basin oil properties in the Delaware Basin and the Central Basin Platform of $4.7 million in the year-to-date 2016. San Juan Basin: During the first quarter of 2016, Energen recognized non-cash impairment writedowns on held for sale properties in the San Juan Basin of $7.5 million to adjust the carrying amount of these properties to their fair value. |
Acquisition and Disposition of
Acquisition and Disposition of Properties | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition and Disposition of Properties | ACQUISITION AND DISPOSITION OF PROPERTIES During the nine months ended September 30, 2017, Energen completed an estimated total of $259.3 million in various purchases and renewals of unproved acquisitions, which are accounted for as asset acquisitions, including approximately $208.1 million in the Delaware Basin and approximately $32.4 million in the Midland Basin for unproved leasehold and $18.8 million for mineral purchases in the Delaware Basin. During the nine months ended September 30, 2016, Energen completed an estimated $134.9 million in various purchases and renewals of unproved leasehold largely in the Permian Basin, including approximately $77 million of acreage purchased in Lea County, New Mexico. During June, July and August of 2016, Energen completed a series of asset sales of certain non-core Permian Basin assets in the Delaware Basin in Texas and in the San Juan Basin in New Mexico for an aggregate purchase price of $552 million . These transactions had closing dates of June 3, June 7, June 30, July 15 and August 9 of 2016 with various effective dates ranging from March 1, 2016 to June 30, 2016. Minor portions of the assets were transferred to other parties upon the exercise of preferential purchase rights under pre-existing joint operating agreements in the ordinary course of business. Pre-tax proceeds to Energen were approximately $532.4 million after purchase price adjustments of approximately $19 million related to the operations of the properties subsequent to the effective dates and other one-time adjustments including transfer payments and certain amounts due to the buyer, but before consideration of transaction costs of approximately $5 million . Energen recognized total net pre-tax gains of approximately $246 million on the sales. For the nine months ended September 30, 2017, included in the gain on sale of assets and other, Energen recognized post-closing adjustment losses of $0.4 million on these sales. For the three and nine months ended September 30, 2016, Energen recognized pre-tax gains of $91.4 million and $252.4 million , respectively, on the sales. Energen used proceeds from the sale to fund ongoing operations. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | RECENTLY ISSUED ACCOUNTING STANDARDS In May 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2017-09, Stock Compensation - Scope of Modification Accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendment is effective for annual periods beginning after December 15, 2017, and interim periods within those annual years. This amendment is not expected to have a material impact to the Company’s financial position or results of operations. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments in this update require that the service cost component of net periodic postretirement benefit expense be presented in the same statement of operations line item as other employee compensation costs, while the remaining components of net periodic postretirement benefit expense are to be presented outside operating income. The amendment is effective for annual periods beginning after December 15, 2017, and interim periods within those annual years. This amendment is not expected to have a material impact to the Company’s financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This update apples to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years with early adoption permitted. This update will be applied using the retrospective transition method. Adoption of this standard will only affect the presentation of the Company’s cash flows and is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which makes a number of changes meant to simplify and improve accounting for share-based payments. The amendment was effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this ASU effective January 1, 2017 did not have a material impact on our consolidated financial statements. Upon adoption of this new guidance, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in our consolidated statements of operations as a discrete item in the reporting period in which they occur. The presentation requirements for cash flows related to employee taxes paid for withheld shares were adjusted retrospectively. These cash outflows, which were historically presented as an operating activity, were classified as a financing activity under taxes paid for shares withheld on the consolidated statements of cash flows. The Company also had an approximate $169,000 decrease to retained earnings associated with our election to recognize forfeitures as they occur. In February 2016, the FASB issued ASU No. 2016-02, Leases. This update increases transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendment is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The primary effect of adopting the new standard will be to record assets and obligations on the balance sheet for contracts currently recognized as operating leases. We have identified certain applicable leases under the standard and are currently developing an inventory of all applicable leases. The Company is still evaluating the impact of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This update is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. Companies may apply this update retrospectively or using a modified retrospective approach to adjust retained earnings. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, which deferred the effective date of ASU No. 2014-09 to annual periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company expects to adopt this standard using the modified retrospective method of adoption on January 1, 2018. We continue to evaluate the impact of this standard on our individual customer contracts; however, due to the short length of our revenue cycle, we do not expect and have not identified any significant impacts to our consolidated financial statements. |
Recently Issued Accounting St24
Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | RECENTLY ISSUED ACCOUNTING STANDARDS In May 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2017-09, Stock Compensation - Scope of Modification Accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendment is effective for annual periods beginning after December 15, 2017, and interim periods within those annual years. This amendment is not expected to have a material impact to the Company’s financial position or results of operations. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amendments in this update require that the service cost component of net periodic postretirement benefit expense be presented in the same statement of operations line item as other employee compensation costs, while the remaining components of net periodic postretirement benefit expense are to be presented outside operating income. The amendment is effective for annual periods beginning after December 15, 2017, and interim periods within those annual years. This amendment is not expected to have a material impact to the Company’s financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. This update apples to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years with early adoption permitted. This update will be applied using the retrospective transition method. Adoption of this standard will only affect the presentation of the Company’s cash flows and is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which makes a number of changes meant to simplify and improve accounting for share-based payments. The amendment was effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this ASU effective January 1, 2017 did not have a material impact on our consolidated financial statements. Upon adoption of this new guidance, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in our consolidated statements of operations as a discrete item in the reporting period in which they occur. The presentation requirements for cash flows related to employee taxes paid for withheld shares were adjusted retrospectively. These cash outflows, which were historically presented as an operating activity, were classified as a financing activity under taxes paid for shares withheld on the consolidated statements of cash flows. The Company also had an approximate $169,000 decrease to retained earnings associated with our election to recognize forfeitures as they occur. In February 2016, the FASB issued ASU No. 2016-02, Leases. This update increases transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendment is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The primary effect of adopting the new standard will be to record assets and obligations on the balance sheet for contracts currently recognized as operating leases. We have identified certain applicable leases under the standard and are currently developing an inventory of all applicable leases. The Company is still evaluating the impact of this standard on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This update is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. Companies may apply this update retrospectively or using a modified retrospective approach to adjust retained earnings. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, which deferred the effective date of ASU No. 2014-09 to annual periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company expects to adopt this standard using the modified retrospective method of adoption on January 1, 2018. We continue to evaluate the impact of this standard on our individual customer contracts; however, due to the short length of our revenue cycle, we do not expect and have not identified any significant impacts to our consolidated financial statements. |
Derivative Commodity Instrume25
Derivative Commodity Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Offsetting Liabilities | The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets: (in thousands) September 30, 2017 Gross Amounts Not Offset in the Balance Sheets Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Financial Instruments Cash Collateral Received Net Fair Value Presented in the Balance Sheets Derivatives not designated as hedging instruments Assets Derivative instruments $ 15,652 $ (11,757 ) $ 3,895 $ — $ — $ 3,895 Noncurrent derivative instruments 3,680 (2,616 ) 1,064 — — 1,064 Total derivative assets 19,332 (14,373 ) 4,959 — — 4,959 Liabilities Derivative instruments 29,846 (11,757 ) 18,089 — — 18,089 Noncurrent derivative instruments 5,578 (2,616 ) 2,962 — — 2,962 Total derivative liabilities 35,424 (14,373 ) 21,051 — — 21,051 Total derivatives $ (16,092 ) $ — $ (16,092 ) $ — $ — $ (16,092 ) (in thousands) December 31, 2016 Gross Amounts Not Offset in the Balance Sheets Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Financial Instruments Cash Collateral Received Net Fair Value Presented in the Balance Sheets Derivatives not designated as hedging instruments Assets Derivative instruments $ 1,756 $ (1,706 ) $ 50 $ — $ — $ 50 Liabilities Derivative instruments 67,173 (1,706 ) 65,467 — — 65,467 Noncurrent derivative instruments 3,006 — 3,006 — — 3,006 Total derivative liabilities 70,179 (1,706 ) 68,473 — — 68,473 Total derivatives $ (68,423 ) $ — $ (68,423 ) $ — $ — $ (68,423 ) |
Schedule of Offsetting Assets | The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets: (in thousands) September 30, 2017 Gross Amounts Not Offset in the Balance Sheets Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Financial Instruments Cash Collateral Received Net Fair Value Presented in the Balance Sheets Derivatives not designated as hedging instruments Assets Derivative instruments $ 15,652 $ (11,757 ) $ 3,895 $ — $ — $ 3,895 Noncurrent derivative instruments 3,680 (2,616 ) 1,064 — — 1,064 Total derivative assets 19,332 (14,373 ) 4,959 — — 4,959 Liabilities Derivative instruments 29,846 (11,757 ) 18,089 — — 18,089 Noncurrent derivative instruments 5,578 (2,616 ) 2,962 — — 2,962 Total derivative liabilities 35,424 (14,373 ) 21,051 — — 21,051 Total derivatives $ (16,092 ) $ — $ (16,092 ) $ — $ — $ (16,092 ) (in thousands) December 31, 2016 Gross Amounts Not Offset in the Balance Sheets Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets Financial Instruments Cash Collateral Received Net Fair Value Presented in the Balance Sheets Derivatives not designated as hedging instruments Assets Derivative instruments $ 1,756 $ (1,706 ) $ 50 $ — $ — $ 50 Liabilities Derivative instruments 67,173 (1,706 ) 65,467 — — 65,467 Noncurrent derivative instruments 3,006 — 3,006 — — 3,006 Total derivative liabilities 70,179 (1,706 ) 68,473 — — 68,473 Total derivatives $ (68,423 ) $ — $ (68,423 ) $ — $ — $ (68,423 ) |
Effects of Open and Closed Derivative Commodity Instruments Not Designated as Hedging Instruments | The following table details the effect of open and closed derivative commodity instruments not designated as hedging instruments on the statements of operations: (in thousands) Location on Statements of Operations Three months Three months Gain (loss) recognized in income on derivatives Gain (loss) on derivative instruments, net $ (57,610 ) $ 20,412 (in thousands) Location on Statements of Operations Nine months Nine months Gain (loss) recognized in income on derivatives Gain (loss)on derivative instruments, net $ 45,037 $ (40,005 ) |
Schedule of Hedging Transactions | As of September 30, 2017, Energen had entered into the following derivative transactions for the remainder of 2017 and subsequent years: Production Period Description Total Hedged Volumes Weighted Average Contract Price Oil 2017 NYMEX Swaps 2,010 MBbl $50.68 Bbl NYMEX Three-Way Collars 1,200 MBbl Ceiling sold price (call) $62.18 Bbl Floor purchased price (put) $45.00 Bbl Floor sold price (put) $35.00 Bbl 2018 NYMEX Three-Way Collars 13,500 MBbl Ceiling sold price (call) $60.04 Bbl Floor purchased price (put) $45.47 Bbl Floor sold price (put) $35.47 Bbl Oil Basis Differential 2017 WTI/WTI Basis Swaps 2,970 MBbl $(0.68) Bbl 2018 WTI/WTI Basis Swaps 10,800 MBbl $(1.01) Bbl Natural Gas Liquids 2017 Liquids Swaps 20.8 MMGal $0.57 Gal 2018 Liquids Swaps 105.8 MMGal $0.59 Gal Natural Gas 2017 Basin Specific Swaps - Permian 3.9 Bcf $2.85 Mcf 2017 NYMEX Swaps 0.5 Bcf $3.29 Mcf 2018 Basin Specific Swaps - Permian 3.6 Bcf $2.56 Mcf Natural Gas Basis Differential 2017 Permian Swaps 0.5 Bcf $(0.29) Mcf WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis: September 30, 2017 (in thousands) Level 2 Level 3 Total Assets: Derivative instruments $ 3,895 $ — $ 3,895 Noncurrent derivative instruments 1,126 (62 ) 1,064 Total assets 5,021 (62 ) 4,959 Liabilities: Derivative instruments 2,552 15,537 18,089 Noncurrent derivative instruments 944 2,018 2,962 Total liabilities 3,496 17,555 21,051 Net derivative asset (liability) $ 1,525 $ (17,617 ) $ (16,092 ) December 31, 2016 (in thousands) Level 2 Level 3 Total Assets: Derivative instruments $ 50 $ — $ 50 Liabilities: Derivative instruments 57,927 7,540 65,467 Noncurrent derivative instruments 1,694 1,312 3,006 Total liabilities 59,621 8,852 68,473 Net derivative liability $ (59,571 ) $ (8,852 ) $ (68,423 ) |
Schedule of Changes in Fair Value of Derivative Commodity Instruments | The table below sets forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows: Three months ended September 30, (in thousands) 2017 2016 Balance at beginning of period $ 7,645 $ (10,650 ) Realized losses (1,548 ) (4,610 ) Unrealized gains (losses) relating to instruments held at the reporting date* (24,112 ) 6,353 Settlements during period 398 4,610 Balance at end of period $ (17,617 ) $ (4,297 ) Nine months ended September 30, (in thousands) 2017 2016 Balance at beginning of period $ (8,852 ) $ (16,059 ) Realized losses (4,588 ) (11,526 ) Unrealized gains (losses) relating to instruments held at the reporting date* (7,616 ) 11,762 Settlements during period 3,439 11,526 Balance at end of period $ (17,617 ) $ (4,297 ) *Includes $23.0 million and $14.2 million in losses related to open contracts held at the reporting date for the three months and nine months ended September 30, 2017, respectively. Includes $1.5 million in gains and $1.6 million in losses for the three months and nine months ended September 30, 2016, respectively. |
Quantitative Information About Level 3 Fair Value Measurements of Derivative Commodity Instruments | The table below sets forth quantitative information about Energen’s Level 3 fair value measurements of derivative commodity instruments as follows: (in thousands, except price data) Fair Value as of September 30, 2017 Valuation Technique* Unobservable Input* Range Oil Basis - WTI/WTI 2017 $ (285 ) Discounted Cash Flow Forward Basis ($0.55 - $0.62) Bbl 2018 $ (5,166 ) Discounted Cash Flow Forward Basis ($0.50 - $0.58) Bbl Natural Gas Liquids 2017 $ (4,952 ) Discounted Cash Flow Forward Basis $0.75 Gal 2018 $ (7,214 ) Discounted Cash Flow Forward Basis $0.66 Gal *Discounted cash flow represents an income approach in calculating fair value including the referenced unobservable input and a discount reflecting credit quality of the counterparty. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following is a summary of information relating to Energen’s interest expense: Three months ended Nine months ended 2017 2016 2017 2016 Interest expense $ 9,928 $ 8,987 $ 28,039 $ 27,858 Amortization of debt issuance costs related to long-term debt, including our credit facility* $ 830 $ 828 $ 2,503 $ 2,480 Capitalized interest* $ — $ 54 $ — $ 101 Commitment fees* $ 674 $ 805 $ 2,236 $ 2,605 *Included in Energen’s total interest expense. At September 30, 2017, Energen paid commitment fees on the unused portion of the available credit facility at a current annual rate of 30 basis points. Long-term debt consisted of the following: (in thousands) September 30, 2017 December 31, 2016 Credit facility, due August 30, 2019 $ 238,000 $ — 7.40% Medium-term Notes, Series A, due July 24, 2017 — 2,000 7.36% Medium-term Notes, Series A, due July 24, 2017 — 15,000 7.23% Medium-term Notes, Series A, due July 28, 2017 — 2,000 7.32% Medium-term Notes, Series A, due July 28, 2022 20,000 20,000 7.60% Medium-term Notes, Series A, due July 26, 2027 — 5,000 7.35% Medium-term Notes, Series A, due July 28, 2027 10,000 10,000 7.125% Medium-term Notes, Series B, due February 15, 2028 100,000 100,000 4.625% Notes, due September 1, 2021 400,000 400,000 Total 768,000 554,000 Less amounts due within one year — 24,000 Less unamortized debt discount 367 387 Less unamortized debt issuance costs 1,874 2,170 Total $ 765,759 $ 527,443 |
Maturities of Long-term Debt | The aggregate maturities of Energen’s long-term debt outstanding at September 30, 2017 are as follows: (in thousands) Remaining 2017 2018 2019 2020 2021 2022 and thereafter $— $— $238,000 $— $400,000 $130,000 |
Summary of Credit Facilities | The following is a summary of information relating to Energen’s credit facility: (in thousands) September 30, 2017 December 31, 2016 Credit facility outstanding $ 238,000 $ — Available for borrowings 812,000 1,050,000 Total borrowing commitments $ 1,050,000 $ 1,050,000 Three months ended Nine months ended 2017 2016 2017 2016 Maximum amount outstanding at any month-end $ 238,000 $ — $ 238,000 $ 214,500 Average daily amount outstanding $ 191,810 $ 374 $ 80,476 $ 44,938 Weighted average interest rates based on: Average daily amount outstanding 2.51 % 1.72 % 2.49 % 1.72 % Amount outstanding at period-end 2.49 % — % 2.49 % — % |
Reconciliation of Earnings Pe28
Reconciliation of Earnings Per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | Three months ended Three months ended (in thousands, except per share amounts) September 30, 2017 September 30, 2016 Net Per Share Net Per Share Loss Shares Amount Income Shares Amount Basic EPS $ (18,486 ) 97,198 $ (0.19 ) $ 53,314 97,068 $ 0.55 Effect of dilutive securities Stock options — 54 Non-vested restricted stock — 217 Performance share awards — 172 Diluted EPS $ (18,486 ) 97,198 $ (0.19 ) $ 53,314 97,511 $ 0.55 Nine months ended Nine months ended (in thousands, except per share amounts) September 30, 2017 September 30, 2016 Net Per Share Net Per Share Income Shares Amount Loss Shares Amount Basic EPS $ 44,398 97,176 $ 0.46 $ (113,043 ) 93,602 $ (1.21 ) Effect of dilutive securities Stock options 25 — Non-vested restricted stock 284 — Performance share awards 193 — Diluted EPS $ 44,398 97,678 $ 0.45 $ (113,043 ) 93,602 $ (1.21 ) |
Schedule of Shares Excluded from the Computation of Diluted EPS | Energen had the following shares that were excluded from the computation of diluted EPS, as inclusion would be anti-dilutive: Three months ended Nine months ended (in thousands) 2017 2016 2017 2016 Stock options 512 163 512 691 Performance share awards 139 — 139 — |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of performance share award activity during the nine months ended September 30, 2017 is presented below: Shares Weighted Average Price Nonvested at December 31, 2016 336,442 $ 57.03 Granted (two-year vesting period) 3,116 $ 96.54 Granted (three-year vesting period) 137,084 66.89 Vested and paid (59,530 ) 93.52 Forfeited (3,225 ) 46.16 Nonvested at September 30, 2017 413,887 $ 55.43 A summary of restricted stock award activity during the nine months ended September 30, 2017 is presented below: Shares Weighted Average Price Nonvested at December 31, 2016 325,643 $ 44.44 Restricted stock units granted 127,661 52.42 Vested (45,576 ) 65.68 Forfeited (2,803 ) 44.68 Nonvested at September 30, 2017 404,925 $ 44.56 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Costs | The components of net periodic postretirement benefit income for Energen’s postretirement benefit plan were as follows: Three months ended Nine months ended (in thousands) 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 18 $ 24 $ 53 $ 71 Interest cost 57 52 170 170 Expected long-term return on assets (62 ) (68 ) (187 ) (248 ) Prior service cost amortization (114 ) (113 ) (340 ) (351 ) Actuarial loss amortization 2 — 7 — Settlement charge — — — 45 Curtailment gain — — — (816 ) Net periodic income $ (99 ) $ (105 ) $ (297 ) $ (1,129 ) |
Exploratory Costs (Tables)
Exploratory Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Extractive Industries [Abstract] | |
Schedule of Capitalized Exploratory Wells | The following table sets forth capitalized exploratory well costs and includes additions pending determination of proved reserves, reclassifications to proved reserves and costs charged to expense: Three months ended (in thousands) 2017 2016 Capitalized exploratory well costs at beginning of period $ 141,401 $ 37,438 Additions pending determination of proved reserves 168,965 88,879 Reclassifications due to determination of proved reserves (174,270 ) (44,564 ) Capitalized exploratory well costs at end of period $ 136,096 $ 81,753 Nine months ended (in thousands) 2017 2016 Capitalized exploratory well costs at beginning of period $ 164,996 $ 103,588 Additions pending determination of proved reserves 504,668 250,782 Reclassifications due to determination of proved reserves (533,568 ) (272,617 ) Capitalized exploratory well costs at end of period $ 136,096 $ 81,753 The following table sets forth capitalized exploratory well costs: (in thousands) September 30, 2017 December 31, 2016 Exploratory wells in progress (drilling rig not released) $ 15,309 $ 14,531 Capitalized exploratory well costs capitalized for a period of one year or less 120,787 143,602 Capitalized exploratory well costs for a period greater than one year — 6,863 Total capitalized exploratory well costs $ 136,096 $ 164,996 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Components of the Change in the ARO Balance | The following table reflects the components of the change in Energen’s ARO balance: (in thousands) Balance as of December 31, 2016 $ 81,544 Liabilities incurred 1,072 Liabilities settled (303 ) Accretion expense 4,330 Balance as of September 30, 2017 $ 86,643 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Related Income Tax Effects | The following table provides changes in the components of accumulated other comprehensive income (loss), net of the related income tax effects. (in thousands) Balance as of December 31, 2016 $ 1,405 Amounts reclassified from accumulated other comprehensive income (loss) (208 ) Balance as of September 30, 2017 $ 1,197 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table provides details of the reclassifications out of accumulated other comprehensive income (loss). Three months ended September 30, 2017 2016 (in thousands) Amounts Reclassified Line Item Where Presented Postretirement plans: Prior service cost $ 113 $ 114 General and administrative Actuarial losses (2 ) — General and administrative Total postretirement plans 111 114 Income tax benefit (42 ) (43 ) Total reclassifications for the period, net of tax $ 69 $ 71 Nine months ended September 30, 2017 2016 (in thousands) Amounts Reclassified Line Item Where Presented Pension and postretirement plans: Prior service cost $ 341 $ 352 General and administrative Actuarial losses (7 ) (3,058 ) General and administrative Total pension and postretirement plans 334 (2,706 ) Income tax expense (benefit) (126 ) 1,035 Total reclassifications for the period, net of tax $ 208 $ (1,671 ) |
Asset Impairment (Tables)
Asset Impairment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Impairments Recognized | Impairments recognized by Energen are presented below: Three months ended Nine months ended (in thousands) 2017 2016 2017 2016 Permian Basin oil properties Central Basin Platform $ — $ — $ 1,096 $ 187,043 Delaware Basin — — — 21,288 San Juan Basin properties — — — 7,519 Permian Basin unproved leasehold properties 100 587 493 4,722 San Juan Basin unproved leasehold properties — — — 40 Total asset impairments $ 100 $ 587 $ 1,589 $ 220,612 |
Organization and Basis of Pre35
Organization and Basis of Presentation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
One-time Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges incurred for one-time termination benefits | $ 5 |
Derivative Commodity Instrume36
Derivative Commodity Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Gross Amounts Recognized at Fair Value | $ 19,332 | |
Gross Amounts Offset in the Balance Sheets | (14,373) | |
Net Amounts Presented in the Balance Sheets | 4,959 | |
Financial Instruments | 0 | |
Cash Collateral Received | 0 | |
Net Fair Value Presented in the Balance Sheets | 4,959 | |
Liabilities | ||
Gross Amounts Recognized at Fair Value | 35,424 | $ 70,179 |
Gross Amounts Offset in the Balance Sheets | (14,373) | (1,706) |
Net Amount Presented in the Balance Sheets | 21,051 | 68,473 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 21,051 | 68,473 |
Total Derivatives | (16,092) | (68,423) |
Current assets | ||
Assets | ||
Gross Amounts Recognized at Fair Value | 15,652 | 1,756 |
Gross Amounts Offset in the Balance Sheets | (11,757) | (1,706) |
Net Amounts Presented in the Balance Sheets | 3,895 | 50 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 3,895 | 50 |
Noncurrent assets | ||
Assets | ||
Gross Amounts Recognized at Fair Value | 3,680 | |
Gross Amounts Offset in the Balance Sheets | (2,616) | |
Net Amounts Presented in the Balance Sheets | 1,064 | |
Financial Instruments | 0 | |
Cash Collateral Received | 0 | |
Net Fair Value Presented in the Balance Sheets | 1,064 | |
Current Liabilities | ||
Liabilities | ||
Gross Amounts Recognized at Fair Value | 29,846 | 67,173 |
Gross Amounts Offset in the Balance Sheets | (11,757) | (1,706) |
Net Amount Presented in the Balance Sheets | 18,089 | 65,467 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | 18,089 | 65,467 |
Noncurrent Liabilities | ||
Liabilities | ||
Gross Amounts Recognized at Fair Value | 5,578 | 3,006 |
Gross Amounts Offset in the Balance Sheets | (2,616) | 0 |
Net Amount Presented in the Balance Sheets | 2,962 | 3,006 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Fair Value Presented in the Balance Sheets | $ 2,962 | $ 3,006 |
Derivative Commodity Instrume37
Derivative Commodity Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments, net | $ (57,610) | $ 20,412 | $ 45,037 | $ (40,005) |
Commodity contracts | PNC Bank | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments, net | 1,900 | |||
Commodity contracts | Regions Bank | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments, net | 1,100 | |||
Commodity contracts | NextEra Energen Power Marketing, LLC | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative instruments, net | $ 1,000 |
Derivative Commodity Instrume38
Derivative Commodity Instruments - Not Designated as Hedging Instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in income on derivatives | $ (57,610) | $ 20,412 | $ 45,037 | $ (40,005) |
Gain (loss) on derivative instruments, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in income on derivatives | $ (57,610) | $ 20,412 | $ 45,037 | $ (40,005) |
Derivative Commodity Instrume39
Derivative Commodity Instruments - Derivative Transactions (Details) gal in Millions | 9 Months Ended |
Sep. 30, 2017MBblsgalBcf$ / bbl$ / Mcf$ / gal | |
2017 | NYMEX Swaps | Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | MBbls | 2,010 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | 50.68 |
2017 | NYMEX Swaps | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | Bcf | 0.5 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | $ / Mcf | 3.29 |
2017 | NYMEX Three-Way Collars | Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | MBbls | 1,200 |
2017 | Ceiling sold price (call) | Oil | Short | |
Derivatives, Fair Value [Line Items] | |
Ceiling sold price (call) (in dollars per Bbl) | 62.18 |
2017 | Floor Purchased and Sold Price (Put) | Oil | Short | |
Derivatives, Fair Value [Line Items] | |
Floor price (in dollars per Bbl) | 35 |
2017 | Floor Purchased and Sold Price (Put) | Oil | Long | |
Derivatives, Fair Value [Line Items] | |
Floor price (in dollars per Bbl) | 45 |
2017 | WTI/WTI Basis Swaps | Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | MBbls | 2,970 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | (0.68) |
2017 | Liquids Swaps | Natural Gas Liquids | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | gal | 20.8 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | $ / gal | 0.57 |
2017 | Basin Specific Swaps - Permian | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | Bcf | 3.9 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | $ / Mcf | 2.85 |
2017 | Permian Swaps | Natural Gas Basis Differential | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | Bcf | 0.5 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | $ / Mcf | (0.29) |
2018 | NYMEX Three-Way Collars | Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | MBbls | 13,500 |
2018 | Ceiling sold price (call) | Oil | Short | |
Derivatives, Fair Value [Line Items] | |
Ceiling sold price (call) (in dollars per Bbl) | 60.04 |
2018 | Floor Purchased and Sold Price (Put) | Oil | Short | |
Derivatives, Fair Value [Line Items] | |
Floor price (in dollars per Bbl) | 35.47 |
2018 | Floor Purchased and Sold Price (Put) | Oil | Long | |
Derivatives, Fair Value [Line Items] | |
Floor price (in dollars per Bbl) | 45.47 |
2018 | WTI/WTI Basis Swaps | Oil | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | MBbls | 10,800 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | (1.01) |
2018 | Liquids Swaps | Natural Gas Liquids | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | gal | 105.8 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | $ / gal | 0.59 |
2018 | Basin Specific Swaps - Permian | Natural Gas | |
Derivatives, Fair Value [Line Items] | |
Total Hedged Volumes (in MBbl, MMgal and Bcf) | Bcf | 3.6 |
Average Contract Price (in dollars per Bbl, Gal and Mcf) | $ / Mcf | 2.56 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Noncurrent derivative instruments | $ 1,064 | $ 0 |
Net Amounts Presented in the Balance Sheets | 4,959 | |
Liabilities: | ||
Net Amount Presented in the Balance Sheets | 21,051 | 68,473 |
Recurring | ||
Assets: | ||
Derivative instruments | 3,895 | 50 |
Noncurrent derivative instruments | 1,064 | |
Net Amounts Presented in the Balance Sheets | 4,959 | |
Liabilities: | ||
Derivative instruments | 18,089 | 65,467 |
Noncurrent derivative instruments | 2,962 | 3,006 |
Net Amount Presented in the Balance Sheets | 21,051 | 68,473 |
Net derivative asset/liability | (16,092) | (68,423) |
Recurring | Level 2 | ||
Assets: | ||
Derivative instruments | 3,895 | 50 |
Noncurrent derivative instruments | 1,126 | |
Net Amounts Presented in the Balance Sheets | 5,021 | |
Liabilities: | ||
Derivative instruments | 2,552 | 57,927 |
Noncurrent derivative instruments | 944 | 1,694 |
Net Amount Presented in the Balance Sheets | 3,496 | 59,621 |
Net derivative asset/liability | 1,525 | (59,571) |
Recurring | Level 3 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Noncurrent derivative instruments | (62) | |
Net Amounts Presented in the Balance Sheets | (62) | |
Liabilities: | ||
Derivative instruments | 15,537 | 7,540 |
Noncurrent derivative instruments | 2,018 | 1,312 |
Net Amount Presented in the Balance Sheets | 17,555 | 8,852 |
Net derivative asset/liability | $ (17,617) | $ (8,852) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Allowance for doubtful accounts | $ 700 | $ 600 |
Long-term debt carrying value | 768,000 | 554,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Sensitivity analysis of fair value of 10 percent change in commodity prices | 7,700 | |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt fair value | 779,600 | 559,900 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt carrying value | $ 768,000 | $ 554,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes of Derivative Commodity Instruments in Fair Value (Details) - Derivative Commodity Instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 7,645 | $ (10,650) | $ (8,852) | $ (16,059) |
Realized losses | (1,548) | (4,610) | (4,588) | (11,526) |
Unrealized gains (losses) relating to instruments held at the reporting date | (24,112) | 6,353 | (7,616) | 11,762 |
Settlements during period | 398 | 4,610 | 3,439 | 11,526 |
Balance at end of period | (17,617) | (4,297) | (17,617) | (4,297) |
Mark-to-market gain (loss) included in earnings | $ (23,000) | $ 1,500 | $ (14,200) | $ (1,600) |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Measurements of Derivative Commodity Instruments (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)$ / bbl$ / gal | Dec. 31, 2016USD ($) | |
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Derivative liabilities | $ (21,051) | $ (68,473) |
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2017 | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Derivative liabilities | $ (285) | |
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2017 | Minimum | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Price per barrel (in dollars per Bbl) | $ / bbl | (0.55) | |
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2017 | Maximum | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Price per barrel (in dollars per Bbl) | $ / bbl | (0.62) | |
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2018 | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Derivative liabilities | $ (5,166) | |
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2018 | Minimum | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Price per barrel (in dollars per Bbl) | $ / bbl | (0.50) | |
Discounted Cash Flow Valuation Technique | Level 3 | Oil Basis - WTI/WTI | 2018 | Maximum | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Price per barrel (in dollars per Bbl) | $ / bbl | (0.58) | |
Discounted Cash Flow Valuation Technique | Level 3 | Natural Gas Liquids | 2017 | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Derivative liabilities | $ (4,952) | |
Price per gallon (in dollars per gal) | $ / gal | 0.75 | |
Discounted Cash Flow Valuation Technique | Level 3 | Natural Gas Liquids | 2018 | ||
Fair Value Inputs, Derivatives, Quantitative Information [Line Items] | ||
Derivative liabilities | $ (7,214) | |
Price per gallon (in dollars per gal) | $ / gal | 0.66 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 31, 2017 | Jan. 23, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Gross amount | $ 768,000 | $ 554,000 | ||
Less amounts due within one year | 0 | 24,000 | ||
Less unamortized debt discount | 367 | 387 | ||
Less unamortized debt issuance costs | 1,874 | 2,170 | ||
Total | 765,759 | 527,443 | ||
Medium-term Notes | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 17,000 | |||
Medium-term Notes | 7.40% Medium-term Notes, Series A, due July 24, 2017 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 0 | $ 2,000 | $ 2,000 | |
Stated interest rate | 7.40% | 7.40% | 7.40% | |
Medium-term Notes | 7.36% Medium-term Notes, Series A, due July 24, 2017 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 0 | $ 15,000 | ||
Stated interest rate | 7.36% | 7.36% | ||
Medium-term Notes | 7.23% Medium-term Notes, Series A, due July 28, 2017 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 0 | $ 2,000 | ||
Stated interest rate | 7.23% | 7.23% | ||
Medium-term Notes | 7.32% Medium-term Notes, Series A, due July 28, 2022 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 20,000 | $ 20,000 | ||
Stated interest rate | 7.32% | 7.32% | ||
Medium-term Notes | 7.60% Medium-term Notes, Series A, due July 26, 2027 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 0 | $ 5,000 | $ 5,000 | |
Stated interest rate | 7.60% | 7.60% | 7.60% | |
Medium-term Notes | 7.35% Medium-term Notes, Series A, due July 28, 2027 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 10,000 | $ 10,000 | ||
Stated interest rate | 7.35% | 7.35% | ||
Medium-term Notes | 7.125% Medium-term Notes, Series B, due February 15, 2028 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 100,000 | $ 100,000 | ||
Stated interest rate | 7.125% | 7.125% | ||
Notes Payable | 4.625% Notes, due September 1, 2021 | ||||
Debt Instrument [Line Items] | ||||
Gross amount | $ 400,000 | $ 400,000 | ||
Stated interest rate | 4.625% | 4.625% |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-Term Debt (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Remaining 2,017 | $ 0 |
2,018 | 0 |
2,019 | 238,000 |
2,020 | 0 |
2,021 | 400,000 |
2022 and thereafter | $ 130,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Sep. 02, 2014 | Sep. 30, 2017 | Jul. 31, 2017 | Apr. 21, 2017 | Jan. 23, 2017 | Dec. 31, 2016 | Oct. 25, 2016 |
Debt Instrument [Line Items] | |||||||
Gross amount | $ 768,000,000 | $ 554,000,000 | |||||
Cross default provision, threshold amount | 10,000,000 | ||||||
Initial borrowing base | $ 1,050,000,000 | 1,050,000,000 | |||||
Loan limit percentage (less than) | 10.00% | ||||||
Credit facility cross default provision, threshold amount (more than) | $ 75,000,000 | ||||||
Medium-term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Gross amount | $ 17,000,000 | ||||||
Medium-term Notes | 7.40% Medium-term Notes, Series A, due July 24, 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Gross amount | $ 0 | $ 2,000,000 | $ 2,000,000 | ||||
Stated interest rate | 7.40% | 7.40% | 7.40% | ||||
Medium-term Notes | 7.60% Medium-term Notes, Series A, due July 26, 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Gross amount | $ 0 | $ 5,000,000 | $ 5,000,000 | ||||
Stated interest rate | 7.60% | 7.60% | 7.60% | ||||
Credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Gross amount | $ 238,000,000 | $ 0 | |||||
Initial borrowing base | $ 1,400,000,000 | $ 1,050,000,000 | |||||
Syndicated Credit Facility | Credit Facility, September 2, 2014 | |||||||
Debt Instrument [Line Items] | |||||||
Term of credit facility | 5 years | ||||||
Debt covenant, debt to EBITDAX ratio (less than or equal to) | 4 | ||||||
Debt covenant, current assets to current liabilities ratio (greater than or equal to) | 1 | ||||||
Debt covenant, minimum net present value of proved reserves to consolidated debt, ratio (greater than or equal to) | 1.50 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||||
Credit facility outstanding | $ 238,000 | $ 238,000 | $ 0 | ||
Available for borrowings | 812,000 | 812,000 | 1,050,000 | ||
Total borrowing commitments | 1,050,000 | 1,050,000 | $ 1,050,000 | ||
Maximum amount outstanding at any month-end | 238,000 | $ 0 | 238,000 | $ 214,500 | |
Average daily amount outstanding | $ 191,810 | $ 374 | $ 80,476 | $ 44,938 | |
Average daily amount outstanding | 2.51% | 1.72% | 2.49% | 1.72% | |
Amount outstanding at period-end | 2.49% | 0.00% | 2.49% | 0.00% |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense Related To Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 9,928 | $ 8,987 | $ 28,039 | $ 27,858 |
Amortization of debt issuance costs related to long-term debt, including our credit facility | 830 | 828 | 2,503 | 2,480 |
Capitalized interest | 0 | 54 | 0 | 101 |
Commitment fees | $ 674 | $ 805 | $ 2,236 | $ 2,605 |
Commitment fee (basis points) | 0.30% |
Reconciliation of Earnings Pe49
Reconciliation of Earnings Per Share (EPS) - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Income (Loss), Basic EPS | $ (18,486) | $ 53,314 | $ 44,398 | $ (113,043) |
Basic Average Common Shares Outstanding (in shares) | 97,198 | 97,068 | 97,176 | 93,602 |
Earnings Per Share, Basic (in dollars per share) | $ (0.19) | $ 0.55 | $ 0.46 | $ (1.21) |
Effect of dilutive securities | ||||
Net Income (Loss), Diluted EPS | $ (18,486) | $ 53,314 | $ 44,398 | $ (113,043) |
Diluted Average Common Shares Outstanding (in shares) | 97,198 | 97,511 | 97,678 | 93,602 |
Diluted EPS (in dollars per share) | $ (0.19) | $ 0.55 | $ 0.45 | $ (1.21) |
Stock options | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0 | 54 | 25 | 0 |
Non-vested restricted stock | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0 | 217 | 284 | 0 |
Performance share awards | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0 | 172 | 193 | 0 |
Reconciliation of Earnings Pe50
Reconciliation of Earnings Per Share (EPS) - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 547,793 | 275,005 |
Reconciliation of Earnings Pe51
Reconciliation of Earnings Per Share (EPS) - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 547,793 | 275,005 | ||
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 512,000 | 163,000 | 512,000 | 691,000 |
Performance share awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 139,000 | 0 | 139,000 | 0 |
Equity Offering (Details)
Equity Offering (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)shares | |
Class of Stock [Line Items] | |
Issuance of common stock, net | $ | $ 381.1 |
Common Stock | |
Class of Stock [Line Items] | |
Shares issued through public equity offering (in shares) | shares | 18,170,000 |
Stock Compensation - Summary of
Stock Compensation - Summary of Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 325,643 |
Restricted stock units granted (in shares) | shares | 127,661 |
Vested (in shares) | shares | (45,576) |
Forfeited (in shares) | shares | (2,803) |
Ending balance (in shares) | shares | 404,925 |
Weighted Average Price | |
Beginning balance (in dollars per share) | $ / shares | $ 44.44 |
Granted (in dollars per share) | $ / shares | 52.42 |
Vested (in dollars per share) | $ / shares | 65.68 |
Forfeited (in dollars per share) | $ / shares | 44.68 |
Ending balance (in dollars per share) | $ / shares | $ 44.56 |
Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 336,442 |
Vested (in shares) | shares | (59,530) |
Forfeited (in shares) | shares | (3,225) |
Ending balance (in shares) | shares | 413,887 |
Weighted Average Price | |
Beginning balance (in dollars per share) | $ / shares | $ 57.03 |
Vested (in dollars per share) | $ / shares | 93.52 |
Forfeited (in dollars per share) | $ / shares | 46.16 |
Ending balance (in dollars per share) | $ / shares | $ 55.43 |
Granted (two-year vesting period) | Stock Incentive Plan | Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock units granted (in shares) | shares | 3,116 |
Weighted Average Price | |
Granted (in dollars per share) | $ / shares | $ 96.54 |
Granted (three-year vesting period) | Stock Incentive Plan | Performance share awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock units granted (in shares) | shares | 137,084 |
Weighted Average Price | |
Granted (in dollars per share) | $ / shares | $ 66.89 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Noncash payments for repurchase of common stock | $ 0.1 | $ 0.1 | $ 3.3 | $ 2.6 |
Stock Incentive Plan | Performance share awards | 3 year vesting period | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 3 years |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Mar. 31, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Non-qualified supplemental retirement plan | $ 1,000,000 | $ 1,100,000 | ||
Non-Qualified Supplemental Employee Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Contributions by employer | $ 14,500,000 | |||
Estimated amount of additional benefit payments | $ 0 | |||
Settlement charge | $ 3,300,000 | |||
Employee Severance | Scenario, Forecast | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Initial term limit of severance compensation agreements | 3 years | |||
Extension period | 1 year |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - Postretirement Benefit Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of net periodic benefit cost: | |||||
Service cost | $ 18 | $ 24 | $ 53 | $ 71 | |
Interest cost | 57 | 52 | 170 | 170 | |
Expected long-term return on assets | (62) | (68) | (187) | (248) | |
Prior service cost amortization | (114) | (113) | (340) | (351) | |
Actuarial loss | 2 | 0 | 7 | 0 | |
Settlement charge | 0 | 0 | 0 | 45 | |
Curtailment gain | 0 | 0 | $ (800) | 0 | (816) |
Net periodic (income) expense | $ (99) | $ (105) | $ (297) | $ (1,129) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) MMBoe in Millions | Nov. 04, 2015a | Dec. 31, 2008gal | Sep. 30, 2017MMBoe |
Sylacauga, Talladega County, Alabama | |||
Long-term Purchase Commitment [Line Items] | |||
Gallons of wastewater transported | gal | 3,000 | ||
Crude Oil and Natural Gas | |||
Long-term Purchase Commitment [Line Items] | |||
Delivery commitments (MMBOE) | MMBoe | 3.1 | ||
Endeavor Energy Resources | Pending Litigation | |||
Long-term Purchase Commitment [Line Items] | |||
Number of acres with cloud on the title | a | 10,000 |
Commitments and Contingencies58
Commitments and Contingencies - New Mexico Audits (Details) - USD ($) | Sep. 30, 2017 | Apr. 15, 2016 | Aug. 31, 2014 |
Unfavorable Regulatory Action | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 24,000,000 | $ 189,000 | $ 129,700 |
Exploratory Costs - Explorator
Exploratory Costs - Exploratory Well Costs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)well | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)well | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)well | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |||||
Capitalized exploratory well costs at beginning of period | $ 141,401 | $ 37,438 | $ 164,996 | $ 103,588 | $ 103,588 |
Additions pending determination of proved reserves | 168,965 | 88,879 | 504,668 | 250,782 | |
Reclassifications due to determination of proved reserves | (174,270) | (44,564) | (533,568) | (272,617) | |
Capitalized exploratory well costs at end of period | 136,096 | $ 81,753 | 136,096 | $ 81,753 | 164,996 |
Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||||
Exploratory wells in progress (drilling rig not released) | 15,309 | 15,309 | 14,531 | ||
Capitalized exploratory well costs capitalized for a period of one year or less | 120,787 | 120,787 | 143,602 | ||
Capitalized exploratory well costs for a period greater than one year | 0 | 0 | 6,863 | ||
Total capitalized exploratory well costs | $ 136,096 | $ 136,096 | $ 164,996 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Number of wells capitalized | well | 0 | 2 | |||
Permian Basin | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of wells in process of drilling | well | 55 | 55 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Balance as of December 31, 2016 | $ 81,544 | |||
Liabilities incurred | 1,072 | |||
Liabilities settled | (303) | |||
Accretion expense | $ 1,473 | $ 1,556 | 4,330 | $ 5,092 |
Balance as of September 30, 2017 | $ 86,643 | $ 86,643 |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Loss) - Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (69) | $ (71) | $ (208) | $ 1,671 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 1,405 | |||
Ending balance | $ 1,197 | $ 1,197 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Loss) - Reclassifications of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ 111 | $ 114 | $ 334 | $ (2,706) |
Income tax benefit | (42) | (43) | (126) | 1,035 |
Total reclassifications for the period, net of tax | 69 | 71 | 208 | (1,671) |
Prior service cost | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 113 | 114 | 341 | 352 |
Actuarial losses | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ (2) | $ 0 | $ (7) | $ (3,058) |
Asset Impairment - Summary of I
Asset Impairment - Summary of Impairments Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment | $ 100 | $ 587 | $ 1,589 | $ 220,612 | ||
Central Basin Platform | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment | 0 | 0 | 1,096 | 187,043 | ||
Delaware Basin | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment | 0 | 0 | 0 | 21,288 | ||
San Juan Basin properties | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment | 0 | 0 | $ 7,500 | 0 | 7,519 | |
Permian Basin unproved leasehold properties | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment | 100 | 587 | 493 | 4,722 | $ 4,700 | |
San Juan Basin unproved leasehold properties | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment | $ 0 | $ 0 | $ 0 | $ 40 |
Asset Impairment - Additional I
Asset Impairment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Asset impairment | $ 100 | $ 587 | $ 1,589 | $ 220,612 | |||
Price curve, term | 5 years | ||||||
Increase (decrease) in carrying amount of properties, percent | 3.00% | ||||||
Oil | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Increase (decrease) in carrying amount of properties, percent | (5.00%) | ||||||
Natural Gas | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Increase (decrease) in carrying amount of properties, percent | (4.00%) | ||||||
Permian Basin | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Asset impairment | $ 1,100 | $ 208,300 | |||||
Permian Basin unproved leasehold properties | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Asset impairment | 100 | 587 | $ 493 | 4,722 | $ 4,700 | ||
San Juan Basin | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Asset impairment | $ 0 | $ 0 | $ 7,500 | $ 0 | $ 7,519 |
Acquisition and Disposition o65
Acquisition and Disposition of Properties - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Gas and Oil Acreage [Line Items] | |||
Payment for unproved leasehold | $ 259.3 | ||
Delaware Basin | |||
Gas and Oil Acreage [Line Items] | |||
Payment for unproved leasehold | 208.1 | ||
Midland Basin | |||
Gas and Oil Acreage [Line Items] | |||
Payment for unproved leasehold | 32.4 | ||
Mineral Purchases | |||
Gas and Oil Acreage [Line Items] | |||
Payment for unproved leasehold | 18.8 | ||
Permian Basin | |||
Gas and Oil Acreage [Line Items] | |||
Payment for unproved leasehold | $ 134.9 | ||
Lea County, New Mexico | |||
Gas and Oil Acreage [Line Items] | |||
Payments to acquire acreage in unproved leasehold properties | 77 | ||
Disposal group | Permian and San Juan Basin | |||
Gas and Oil Acreage [Line Items] | |||
Amount of consideration received | 552 | ||
Held-for-sale | Permian and San Juan Basin | |||
Gas and Oil Acreage [Line Items] | |||
Proceeds from sale of oil and gas property and equipment | 532.4 | ||
Purchase price adjustments | 19 | ||
Transaction costs | 5 | ||
Purchase price adjustments | (0.4) | ||
Pre-tax gain on disposal | $ 91.4 | $ 246 | $ 252.4 |
Recently Issued Accounting St66
Recently Issued Accounting Standards - Narrative (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Retained Earnings | New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Forfeiture Rate Component | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Decrease to retained earnings associated with our election to recognize forfeitures | $ 169 |