Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Feb. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SWIFT ENERGY CO | |
Entity Central Index Key | 351,817 | |
Document Type | 10-K | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 44,747,966 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 87,818,801 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 29,460 | $ 406 |
Accounts receivable | 21,704 | 48,451 |
Deferred tax asset | 0 | 6,243 |
Other current assets | 10,683 | 9,569 |
Total Current Assets | 61,847 | 64,669 |
Property and Equipment: | ||
Property and Equipment, including $18,839 and $64,903 of unproved property costs not being amortized, respectively | 6,035,757 | 5,934,155 |
Less - Accumulated depreciation, depletion, and amortization | (5,577,854) | (3,839,118) |
Property and Equipment, Net | 457,903 | 2,095,037 |
Other Long-Term Assets | 5,248 | 13,641 |
Total Assets | 524,998 | 2,173,347 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 7,663 | 68,244 |
Accrued capital costs | 0 | 41,461 |
Accrued interest | 490 | 21,389 |
Undistributed oil and gas revenues | 0 | 17,825 |
Current portion of long-term debt | 324,900 | 0 |
Total Current Liabilities | 333,053 | 148,919 |
Long-Term Debt | 0 | 1,074,534 |
Deferred Tax Liabilities | 0 | 86,376 |
Asset Retirement Obligation | 56,390 | 62,122 |
Other Long-Term Liabilities | 3,891 | 7,018 |
Liabilities Subject to Compromise | 984,388 | 0 |
Commitments and Contingencies | 0 | 0 |
Stockholders' Equity: | ||
Preferred stock, $.01 par value, 5,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value, 150,000,000 shares authorized, 44,771,258 and 44,379,463 shares issued, and 44,591,863 and 43,918,029 shares outstanding, respectively | 448 | 444 |
Additional paid-in capital | 776,358 | 771,972 |
Treasury stock held, at cost, 179,395 and 461,434 shares, respectively | (2,491) | (9,855) |
Retained earnings (Accumulated deficit) | (1,627,039) | 31,817 |
Total Stockholders' Equity (Deficit) | (852,724) | 794,378 |
Total Liabilities and Stockholders' Equity | $ 524,998 | $ 2,173,347 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Capitalized Costs, Unproved Properties | $ 18,839 | $ 64,903 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 44,771,258 | 44,379,463 |
Common stock, shares outstanding | 44,591,863 | 43,918,029 |
Treasury stock shares held, at cost | 179,395 | 461,434 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Oil and gas sales | $ 246,270 | $ 547,790 | $ 585,229 |
Price-risk management and other, net | (1,549) | 1,666 | (828) |
Total Revenues | 244,721 | 549,456 | 584,401 |
Costs and Expenses: | |||
General and administrative, net | 42,611 | 39,629 | 45,423 |
Depreciation, depletion, and amortization | 177,512 | 267,590 | 252,769 |
Accretion of asset retirement obligation | 5,572 | 5,712 | 6,181 |
Lease operating cost | 70,188 | 93,214 | 99,731 |
Transportation and gas processing | 21,741 | 21,140 | 21,044 |
Severance and other taxes | 17,090 | 37,038 | 42,725 |
Interest expense, net | 75,870 | 73,207 | 69,382 |
Write-down of oil and gas properties | 1,562,086 | 445,396 | 46,948 |
Reorganization items | 6,565 | 0 | 0 |
Total Costs and Expenses | 1,979,235 | 982,926 | 584,203 |
Income (Loss) Before Income Taxes | (1,734,514) | (433,470) | 198 |
Provision (Benefit) for Income Taxes | (80,543) | (150,043) | 2,640 |
Net Income (Loss) | $ (1,653,971) | $ (283,427) | $ (2,442) |
Per Share Amounts- | |||
Earnings (Loss) Per Share, Basic | $ (37.20) | $ (6.47) | $ (0.06) |
Earnings (Loss) Per Share, Diluted | $ (37.20) | $ (6.47) | $ (0.06) |
Weighted Average Shares Outstanding - Basic | 44,463 | 43,795 | 43,331 |
Weighted Average Shares Outstanding - Diluted | 44,463 | 43,795 | 43,331 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings (Deficit) |
Beginning Balance | $ 1,052,783 | $ 435 | $ 748,517 | $ (13,855) | $ 317,686 |
Stock issued for benefit plans | 1,622 | 0 | (1,171) | 2,793 | 0 |
Stock options exercised | 4 | 0 | 4 | 0 | 0 |
Purchase of treasury shares | (1,513) | 0 | 0 | (1,513) | 0 |
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (1,607) | 0 | (1,607) | 0 | 0 |
Employee stock purchase plan | 946 | 1 | 945 | 0 | 0 |
Issuance of restricted stock | 0 | 3 | (3) | 0 | 0 |
Amortization of share-based compensation | 15,557 | 0 | 15,557 | 0 | 0 |
Net Income (Loss) | (2,442) | 0 | 0 | 0 | (2,442) |
Beginning Balance | 1,065,350 | 439 | 762,242 | (12,575) | 315,244 |
Stock issued for benefit plans | 1,909 | 0 | (1,876) | 3,785 | 0 |
Purchase of treasury shares | (1,065) | 0 | 0 | (1,065) | 0 |
Employee stock purchase plan | 824 | 1 | 823 | 0 | 0 |
Issuance of restricted stock | 0 | 4 | (4) | 0 | 0 |
Amortization of share-based compensation | 10,787 | 0 | 10,787 | 0 | 0 |
Net Income (Loss) | (283,427) | 0 | 0 | 0 | (283,427) |
Beginning Balance | 794,378 | 444 | 771,972 | (9,855) | 31,817 |
Stock issued for benefit plans | 919 | 0 | (1,714) | 7,518 | (4,885) |
Purchase of treasury shares | (154) | 0 | 0 | (154) | 0 |
Employee stock purchase plan | 302 | 1 | 301 | 0 | 0 |
Issuance of restricted stock | 0 | 3 | (3) | 0 | 0 |
Amortization of share-based compensation | 5,802 | 0 | 5,802 | 0 | 0 |
Net Income (Loss) | (1,653,971) | 0 | 0 | 0 | (1,653,971) |
Beginning Balance | $ (852,724) | $ 448 | $ 776,358 | $ (2,491) | $ (1,627,039) |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Stock issued for benefit plans (shares) | 352,476 | 154,665 | 104,890 |
Shares issued from stock option exercises | 0 | 0 | 1,125 |
Purchase of treasury shares (shares) | 70,437 | 102,673 | 98,020 |
Employee stock purchase plan (shares) | 87,629 | 71,825 | 72,273 |
Issuance of restricted stock (shares) | 304,166 | 392,292 | 391,581 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | |||
Net Income (Loss) | $ (1,653,971) | $ (283,427) | $ (2,442) |
Adjustments to reconcile net income to net cash provided by operation activities - | |||
Write-down of oil and gas properties | 1,562,086 | 445,396 | 46,948 |
Depreciation, depletion, and amortization | 177,512 | 267,590 | 252,769 |
Accretion of asset retirement obligation | 5,572 | 5,712 | 6,181 |
Deferred income taxes | (80,133) | (150,357) | 2,647 |
Stock-based compensation expense | 4,435 | 7,309 | 10,099 |
Reorganization items (non-cash) | 6,565 | 0 | 0 |
Other | (831) | (8,910) | (5,443) |
Change in assets and liabilities- | |||
(Increase) decrease in accounts receivable | 26,747 | 21,411 | (1,894) |
Increase (decrease) in accounts payable and accrued liabilities | (15,003) | 1,505 | 2,607 |
Increase (decrease) in income taxes payable | (435) | 314 | (224) |
Increase (decrease) in accrued interest | 9,730 | (172) | 199 |
Net Cash Provided by Operating Activities | 42,274 | 306,371 | 311,447 |
Cash Flows from Investing Activities: | |||
Additions to property and equipment | (139,688) | (386,336) | (540,368) |
Proceeds from the sale of property and equipment | 1,164 | 145,035 | 6,991 |
Funds withdrawn from restricted cash account | 0 | 25,994 | 0 |
Funds deposited into restricted cash account | 0 | (25,994) | 0 |
Net Cash Used in Investing Activities | (138,524) | (241,301) | (533,377) |
Cash Flows from Financing Activities: | |||
Proceeds from bank borrowings | 281,100 | 487,400 | 622,500 |
Payments of bank borrowings | (153,500) | (555,100) | (396,900) |
Net proceeds from issuances of common stock | 302 | 824 | 950 |
Purchase of treasury shares | (154) | (1,065) | (1,513) |
Payments of debt issuance costs | (2,444) | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 125,304 | (67,941) | 225,037 |
Net Increase (decrease) in Cash and Cash Equivalents | 29,054 | (2,871) | 3,107 |
Cash and Cash Equivalents at Beginning of Period | 406 | 3,277 | 170 |
Cash and Cash Equivalents at End of Period | 29,460 | 406 | 3,277 |
Supplemental Disclosures of Cash Flows Information: | |||
Cash paid during period for interest, net of amounts capitalized | 63,132 | 70,933 | 67,070 |
Cash paid during period for income taxes | $ 450 | $ 150 | $ 217 |
Chapter 11 Proceedings Chapter
Chapter 11 Proceedings Chapter 11 Proceedings | 12 Months Ended |
Dec. 31, 2015 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings | Chapter 11 Proceedings On December 31, 2015, the Company and eight of its subsidiaries including Swift Energy International, Inc., Swift Energy Group, Inc., Swift Energy USA, Inc., Swift Energy Alaska, Inc., Swift Energy Operating, LLC, GASRS LLC, SWENCO-Western, LLC and Swift Energy Exploration Services, Inc. (the “Chapter 11 Subsidiaries”) filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the district of Delaware (In re Swift Energy Company, et al, Case No. 15-12670). The Chapter 11 bankruptcy proceedings do not include our international subsidiaries, which are 100% owned by our domestic subsidiary Swift Energy International, Inc. Debtor-In-Possession. The Company and the Chapter 11 Subsidiaries are currently operating our business as debtors in possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has granted all motions filed by the Company and the Chapter 11 Subsidiaries that were designed primarily to minimize the impact of the Chapter 11 proceedings on the Company’s operations, customers and employees. As a result, the Company is not only able to conduct normal business activities and pay all associated obligations for the period following its bankruptcy filing, it is also authorized to pay and has paid (subject to caps applicable to payments of certain pre-petition obligations) pre-petition employee wages and benefits, pre-petition amounts owed to certain lienholders and critical vendors, pre-petition amounts owed to pipeline owners that transport the Company's production, and funds belonging to third parties, including royalty holders and partners. During the pendency of the Chapter 11 case, all transactions outside the ordinary course of our business require the prior approval of the Bankruptcy Court. Automatic Stay. Subject to certain specific exceptions under the Bankruptcy Code, the Chapter 11 filings automatically stayed most judicial or administrative actions against the Company and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. As a result, for example, most creditor actions to obtain possession of property from the Company or any of the Chapter 11 Subsidiaries, or to create, perfect or enforce any lien against the property of the Company or any of the Chapter 11 Subsidiaries, or to collect on or otherwise exercise rights or remedies with respect to a pre-petition claim are stayed. Restructuring Support Agreement. Immediately prior to the Chapter 11 filings, a majority of the holders of the Company’s senior notes agreed, pursuant to a restructuring support agreement (the “RSA”), to support a plan under which all of the Company’s senior notes are converted to equity. Under the RSA, holders of the senior notes, and certain unsecured creditors and lenders under the DIP Credit Agreement (see below “Debtor-in-Possession Financing”) are to receive ninety-six percent ( 96% ) of the reorganized company's common stock in exchange for the senior notes, and the existing equity holders are entitled to receive the remaining four percent ( 4% ) of the reorganized company's common stock on a fully diluted basis, subject only to dilution as a result of a proposed new management incentive program. Existing equity holders are also entitled to receive warrants for up to 30% of the reorganized company's equity. Under the RSA, Dean Swick, Managing Director at Alvarez & Marsal North America, LLC, has been appointed to act as Chief Restructuring Officer during the reorganization process. The RSA includes an agreed timeline for the Chapter 11 proceedings that, if met, would result in the Company emerging from bankruptcy within 110 days of the date the Chapter 11 cases were filed. Plan of Reorganization . On February 5, 2016, the Company and the Chapter 11 Subsidiaries filed with the Bankruptcy Court a joint plan of reorganization (the “Plan”), which is supported by an ad hoc committee of the Company’s noteholders, and a related disclosure statement. The Plan is subject to approval by the Bankruptcy Court. The Bankruptcy Court has approved the Company’s disclosure statement with respect to the Plan, and the Company is in the process of soliciting votes with respect to the Plan. A confirmation hearing on the Plan is scheduled on March 30, 2016 in the Bankruptcy Court. If the Plan is ultimately approved by the Bankruptcy Court, the Company and the Chapter 11 Subsidiaries would exit bankruptcy pursuant to the terms of the Plan. Under the Plan, the claims against and interests in the Company and the Chapter 11 Subsidiaries are grouped into classes based, in part, on their respective priority. The Plan provides that, upon emergence from bankruptcy: • the approximately $ 906 million of indebtedness outstanding on account of the Company’s senior notes and certain other unsecured claims will be exchanged for 88.5% of the post-emergence Company’s common stock; • the lenders under the DIP Credit Agreement (as more fully described below under “Debtor-In-Possession Financing”) will receive a backstop fee consisting of 7.5% of the post-emergence Company’s common stock; • the Company’s current common stock will be canceled and the current shareholders will be entitled to receive the remaining 4% of the post-emergence Company’s common stock and certain warrants; and • claims of other creditors will be paid in full in cash, reinstated or otherwise treated in a manner acceptable to the creditors. The Plan also provides that the post-emergence Company’s new board of directors will be made up of seven directors consisting of the Chief Executive Officer of the post-emergence Company, two directors appointed by Strategic Value Partners LLC, a current holder of the Company’s senior notes, two directors appointed by other current holders of the Company’s senior notes, and two independent directors (one of whom will be the new Chairman of the Board). The Plan is subject to acceptance by certain holders of claims against the Company and the Chapter 11 Subsidiaries and confirmation by the Bankruptcy Court. The Plan is deemed accepted by a class of claims entitled to vote if at least one-half in number and two-thirds in dollar amount of claims actually voting in the class has voted to accept the Plan. Under certain circumstances set forth in the Bankruptcy Code, the Bankruptcy Court may confirm a plan even if such plan has not been accepted by all impaired classes of claims and equity interests. In particular, a plan may be compelled on a rejecting class if the proponent of the plan demonstrates that (1) no class junior to the rejecting class is receiving or retaining property under the plan and (2) no class of claims or interests senior to the rejecting class is being paid more than in full. Executory Contracts. Subject to certain exceptions, under the Bankruptcy Code, the Company and the Chapter 11 Subsidiaries may assume, assign, or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. The rejection of an executory contract or unexpired lease is generally treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Company and the Chapter 11 Subsidiaries of performing their future obligations under such executory contract or unexpired lease but may give rise to a pre-petition general unsecured claim for damages caused by such deemed breach. Counterparties to rejected contracts or leases may assert claims against the Company or any of the Chapter 11 Subsidiaries, as applicable, for such damages. The assumption of an executory contract or unexpired lease generally requires the Company and the Chapter 11 Subsidiaries to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Any description of the treatment of an executory contract or unexpired lease with the Company or any of the Chapter 11 Subsidiaries, including any description of the obligations under any such executory contract or unexpired lease of the Company or any of the Chapter 11 Subsidiaries, is qualified by and subject to any rights we have with respect to executory contacts and unexpired leases under the Bankruptcy Code. Potential Claims. The Company and the Chapter 11 Subsidiaries have filed with the Bankruptcy Court Schedules and Statements setting forth, among other things, the assets and liabilities of the Company and each of the Chapter 11 Subsidiaries, subject to the assumptions filed in connection therewith. The Schedules and Statements may be subject to further amendment or modification after filing. Certain holders of pre-petition claims are required to file proofs of claim by the Bar Date. Differences between amounts scheduled by the Company and the Chapter 11 Subsidiaries and claims by creditors will be investigated and resolved in connection with the claims resolution process. In light of the expected number of creditors, the claims resolution process may take considerable time to complete and will likely continue after our emergence from bankruptcy. Accordingly, the ultimate number and amount of allowed claims is not presently known, nor can the ultimate recovery with respect to allowed claims be presently ascertained. Chapter 11 Filing Impact on Creditors and Stockholders. Under the priority requirements established by the Bankruptcy Code, unless creditors agree otherwise, pre-petition liabilities to creditors and post-petition liabilities must be satisfied in full before the holders of our existing common stock are entitled to receive any distribution or retain any property under a plan of reorganization. The ultimate recovery to creditors and/or stockholders, if any, will not be determined until confirmation and implementation of a plan or plans of reorganization. The outcome of the Chapter 11 case remains uncertain at this time and, as a result, we cannot accurately estimate the amounts or value of distributions that creditors and stockholders may receive. It is possible that stockholders will receive no distribution on account of their interests. Debtor-In-Possession Financing. In connection with the pre-petition negotiations of the RSA, certain holders of the Company’s senior notes agreed to provide the Company and the Chapter 11 Subsidiaries a debtor in possession facility (the “DIP Facility”) pursuant to the terms of a Debtor-in-Possession (“DIP”) Credit Agreement. The DIP Facility has been approved by the Bankruptcy Court. The DIP Credit Agreement provides for a multi-draw term loan in the aggregate amount of up to $75.0 million , of which the Company has $30.0 million currently available. The remaining $45 million under the DIP Facility will become available to the Company, upon the satisfaction of certain contingencies, including our ability to amend and restate or refinance the indebtedness under the Company’s current first lien credit facility and obtain exit financing. Pursuant to the Plan, the DIP Facility will be either paid in full in cash or, at the option of the lenders under the DIP Credit Agreement, converted, in full or in part, into the post-emergence Company’s common stock, which common stock will only come from the 88.5% of the common stock to be distributed to the current holders of the senior notes and certain unsecured creditors. For more information refer to Note 4 of these consolidated financial statements. Creditors Committee. On January 14, 2016, the United States Trustee for the District of Delaware appointed pursuant to section 1102 of the Bankruptcy Code, the Official Committee of Unsecured Creditors (the "Creditors' Committee"). There can be no assurance that the Creditors' Committee and its legal representatives will support the Company’s and the Chapter 11 Subsidiaries’ positions on matters presented to the Bankruptcy Court, including the Plan. Disagreements between the Company and the Chapter 11 Subsidiaries and the Creditors' Committee could protract the Chapter 11 proceedings and delay the Company’s and the Chapter 11 Subsidiaries’ emergence from the Chapter 11 proceedings. Financial Statement Classification of Liabilities Subject to Compromise . Our financial statements include amounts classified as Liabilities Subject to Compromise (see “Liabilities Subject to Compromise” below), which represent liabilities that we anticipate will be allowed as claims in our bankruptcy case. These amounts include amounts related to the anticipated rejection of various executory contracts and unexpired leases. Additional amounts may be included in Liabilities Subject to Compromise in future periods if additional executory contracts and unexpired leases are rejected. Conversely, to the extent that such executory contracts or unexpired leases are not rejected and are instead assumed, certain liabilities characterized as subject to compromise may be converted to post-petition liabilities. Because the uncertain nature of many of the potential claims has not been determined at this time, the magnitude of such claims is not reasonably estimable at this time. Such claims may be material. Reorganization Expenses. The Company and the Chapter 11 Subsidiaries have incurred and will continue to incur significant costs associated with the reorganization, principally professional fees. The amount of these costs, which are being expensed as incurred, are expected to significantly affect our results of operations. In accordance with ASC 852, we have recorded certain costs associated with the bankruptcy proceedings as Reorganization Items within our Consolidated Statement of Operations. For additional information, see “Reorganization Items” below. Restrictions on Trading of Our Equity Securities to Protect Our Use of Net Operating Losses. The Bankruptcy Court has issued a final order pursuant to Sections 105(a), 362(a)(3) and 541 of the Bankruptcy Code enabling the Company and the Chapter 11 Subsidiaries to avoid limitations on the use of their tax net operating loss carryforwards and certain other tax attributes by imposing certain notice procedures and transfer restrictions on the trading of our equity securities. In general, the order applies to any person that, directly or indirectly, beneficially owns (or would beneficially own as a result of a proposed transfer) at least 4.99% of our outstanding equity securities (a “Substantial Stockholder”), and requires that each Substantial Stockholder files with the Bankruptcy Court and serves us with notice of such status. Under the order, prior to any proposed acquisition or disposition of equity securities that would result in an increase or decrease in the amount of our equity securities owned by a Substantial Stockholder, or that would result in a person or entity becoming a Substantial Stockholder, such person is required to file with the Bankruptcy Court and notify the Company of such acquisition or disposition. We have the right to seek an injunction from the Bankruptcy Court to prevent certain acquisitions or sales of our common stock if the acquisition or sale would pose a material risk of adversely affecting our ability to utilize such tax attributes. Risks Associated with Chapter 11 Proceedings . For the duration of our Chapter 11 proceedings, our operations and our ability to develop and execute our business plan are subject to the risks and uncertainties associated with the Chapter 11 process as described in Item 1A, “Risk Factors”. Because of these risks and uncertainties, the description of our operations, properties and capital plans may not accurately reflect our operations, properties and capital plans following the Chapter 11 process. Liabilities Subject to Compromise. Liabilities Subject to Compromise refers to pre-petition obligations that may be impacted by the Chapter 11 reorganization process. The amounts represent our current estimate of known or potential obligations to be resolved in connection with our Chapter 11 proceedings. Differences between liabilities we have estimated and the claims filed, or to be filed, will be investigated and resolved in connection with the claims resolution process. We will continue to evaluate these liabilities throughout the Chapter 11 process and adjust amounts as necessary. Such adjustments may be material. The following table summarizes the components of liabilities subject to compromise included on our Consolidated Balance Sheet as of December 31, 2015 (in thousands): December 31, 2015 Accounts payable and accrued liabilities 55,587 Accrued capital costs 7,225 Undistributed oil and gas revenues 11,989 Senior notes and accrued interest 905,629 Other long-term liabilities 3,958 Liabilities Subject to Compromise 984,388 Reorganization Items. The Debtors have incurred and will continue to incur significant costs associated with the reorganization. The amount of these costs, which are being expensed as incurred, are expected to significantly affect our results of operations. The following table summarizes the components included in Reorganization items in our Consolidated Statements of Operations for the year ended December 31, 2015 (in thousands): December 31, 2015 Non-cash expense for write-off of debt issuance costs on senior notes 8,662 Non-cash expense for write-off of debt discount on senior notes due 2020 1,864 Non-cash gain for write-off of debt premium on senior notes due 2022 (3,961 ) Reorganization Items 6,565 A non-cash charge to write-off all of the unamortized debt issuance costs and associated discounts and premiums related to the Company's Senior Notes due 2017, Senior Notes due 2020 and Senior Notes due 2022 is included in "Reorganization Items" as these debt instruments are expected to be impacted by the bankruptcy reorganization process. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation . The consolidated financial statements included herein have been prepared by Swift Energy Company (“Swift Energy,” the “Company,” or “we”) assuming the Company will continue as a going concern, and reflect necessary adjustments, all of which were of a recurring nature unless otherwise disclosed herein, and are in the opinion of our management necessary for a fair presentation. Given risks involved with respect to our Chapter 11 proceedings, there is no assurance that we will emerge from bankruptcy proceedings as a going concern, and the realization of assets and satisfaction of liabilities, without substantial adjustments and/or changes in ownership, are also subject to uncertainty. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. We believe that the disclosures presented are adequate to allow the information presented not to be misleading. We have applied ASC 852 “Reorganizations” in preparing our consolidated interim financial statements. ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain revenues, expenses, realized gains and losses and provisions for losses that are realized or incurred in the bankruptcy proceedings are recorded in Reorganization items, in the accompanying Consolidated Statements of Operations. In addition, pre-petition obligations that may be impacted by the bankruptcy reorganization process have been classified on our consolidated balance sheets at December 31, 2015 in "Liabilities Subject to Compromise". These liabilities are reported at the amounts we anticipate will be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts. See Note 1A for more information regarding Reorganization items. While operating as debtors in possession under Chapter 11 of the Bankruptcy Code, the Debtors may sell or otherwise dispose of or liquidate assets or settle liabilities in amounts other than those reflected in our consolidated financial statements, subject to the approval of the Bankruptcy Court or otherwise as permitted in the ordinary course of business. Further, a plan of reorganization could materially change the amounts and classifications in our historical consolidated financial statements. Principles of Consolidation . The accompanying consolidated financial statements include the accounts of Swift Energy and its wholly owned subsidiaries, which are engaged in the exploration, development, acquisition, and operation of oil and gas properties, with a focus on inland waters and onshore oil and natural gas reserves in Louisiana and Texas. Our undivided interests in oil and gas properties are accounted for using the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. Intercompany balances and transactions have been eliminated in preparing the accompanying consolidated financial statements. Subsequent Events. We have evaluated subsequent events of our consolidated financial statements. In February of 2016 the Bankruptcy Court approved a purchase and sale agreement with Texegy to sell a portion of the Company's acreage position in the South Bearhead Creek and Burr Ferry fields. The agreement provides that closing must take place on or prior to March 15, 2016 or a later date agreed to by both parties. For additional discussion regarding the terms of this agreement refer to Note 9 of these consolidated financial statements. Additionally, in 2016 the bankruptcy proceedings have progressed as discussed in Note 1A. There were no other material subsequent events requiring additional disclosure in these financial statements. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the reported amounts of certain revenues and expenses during each reporting period. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these financial statements include: • the estimated quantities of proved oil and natural gas reserves used to compute depletion of oil and natural gas properties, the related present value of estimated future net cash flows there-from, and the ceiling test impairment calculation, • estimates related to the collectability of accounts receivable and the credit worthiness of our customers, • estimates of the counterparty bank risk related to letters of credit that our customers may have issued on our behalf, • estimates of future costs to develop and produce reserves, • accruals related to oil and gas sales, capital expenditures and lease operating expenses, • estimates of insurance recoveries related to property damage, and the solvency of insurance providers, • estimates in the calculation of share-based compensation expense, • estimates of our ownership in properties prior to final division of interest determination, • the estimated future cost and timing of asset retirement obligations, • estimates made in our income tax calculations, • estimates of the liabilities subject to compromise versus not subject to compromise • estimates in the calculation of the fair value of hedging assets and liabilities, and • estimates in the assessment of current litigation claims against the Company. While we are not aware of any material revisions to any of our estimates, there will likely be future revisions to our estimates resulting from matters such as new accounting pronouncements, changes in ownership interests, payouts, joint venture audits, re-allocations by purchasers or pipelines, or other corrections and adjustments common in the oil and gas industry, many of which require retroactive application. These types of adjustments cannot be currently estimated and will be recorded in the period during which the adjustments occur. We are subject to legal proceedings, claims, liabilities and environmental matters that arise in the ordinary course of business. We accrue for losses when such losses are considered probable and the amounts can be reasonably estimated. Property and Equipment. We follow the “full-cost” method of accounting for oil and natural gas property and equipment costs. Under this method of accounting, all productive and nonproductive costs incurred in the exploration, development, and acquisition of oil and natural gas reserves are capitalized. Such costs may be incurred both prior to and after the acquisition of a property and include lease acquisitions, geological and geophysical services, drilling, completion, and equipment. Internal costs incurred that are directly identified with exploration, development, and acquisition activities undertaken by us for our own account, and which are not related to production, general corporate overhead, or similar activities, are also capitalized. For the years ended December 31, 2015, 2014 and 2013 , such internal costs capitalized totaled $12.7 million , $26.3 million and $31.8 million , respectively. Interest costs are also capitalized to unproved oil and natural gas properties (refer to Note 4 of these consolidated financial statements for further discussion on capitalized interest costs). The “Property and Equipment” balances on the accompanying consolidated balance sheets are summarized for presentation purposes. The following is a detailed breakout of our “Property and Equipment” balances. (in thousands) December 31, December 31, Property and Equipment Proved oil and gas properties $ 5,972,666 $ 5,826,995 Unproved oil and gas properties 18,839 64,903 Furniture, fixtures, and other equipment 44,252 42,257 Less – Accumulated depreciation, depletion, and amortization (5,577,854 ) (3,839,118 ) Property and Equipment, Net $ 457,903 $ 2,095,037 No gains or losses are recognized upon the sale or disposition of oil and natural gas properties, except in transactions involving a significant amount of reserves or where the proceeds from the sale of oil and natural gas properties would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a cost center. Internal costs associated with selling properties are expensed as incurred. Future development costs are estimated on a property-by-property basis based on current economic conditions and are amortized to expense as our capitalized oil and gas property costs are amortized. We compute the provision for depreciation, depletion, and amortization (“DD&A”) of oil and natural gas properties using the unit-of-production method. Under this method, we compute the provision by multiplying the total unamortized costs of oil and gas properties—including future development costs, gas processing facilities, and both capitalized asset retirement obligations and undiscounted abandonment costs of wells to be drilled, net of salvage values, but excluding costs of unproved properties—by an overall rate determined by dividing the physical units of oil and natural gas produced (which excludes natural gas consumed in operations) during the period by the total estimated units of proved oil and natural gas reserves (which excludes natural gas consumed in operations) at the beginning of the period. This calculation is done on a country-by-country basis and the period over which we will amortize these properties is dependent on our production from these properties in future years. Furniture, fixtures, and other equipment are recorded at cost and are depreciated by the straight-line method at rates based on the estimated useful lives of the property, which range between two and 20 years. Repairs and maintenance are charged to expense as incurred. Geological and geophysical (“G&G”) costs incurred on developed properties are recorded in “Proved properties” and therefore subject to amortization. G&G costs incurred that are directly associated with specific unproved properties are capitalized in “Unproved properties” and evaluated as part of the total capitalized costs associated with a prospect. The cost of unproved properties not being amortized is assessed quarterly, on a property-by-property basis, to determine whether such properties have been impaired. In determining whether such costs should be impaired, we evaluate current drilling results, lease expiration dates, current oil and gas industry conditions, international economic conditions, capital availability, and available geological and geophysical information. Any impairment assessed is added to the cost of proved properties being amortized. Due to the bankruptcy proceedings the Company adjusted all unevaluated properties to fair market value. Full-Cost Ceiling Test . At the end of each quarterly reporting period, the unamortized cost of oil and natural gas properties (including natural gas processing facilities, capitalized asset retirement obligations, net of related salvage values and deferred income taxes, and excluding the recognized asset retirement obligation liability) is limited to the sum of the estimated future net revenues from proved properties (excluding cash outflows from recognized asset retirement obligations, including future development and abandonment costs of wells to be drilled, using the preceding 12-months’ average price based on closing prices on the first day of each month, adjusted for price differentials, discounted at 10% , and the lower of cost or fair value of unproved properties) adjusted for related income tax effects (“Ceiling Test”). The calculations of the Ceiling Test and provision for DD&A are based on estimates of proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production, timing, and plan of development. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimates. Accordingly, reserves estimates are often different from the quantities of oil and natural gas that are ultimately recovered. Principally due to the effects of pricing, and also due to the timing of projects and changes in our reserves product mix, in 2015 and 2014 we reported a non-cash impairment write-down on a before-tax basis, of $1.6 billion and $445.4 million , respectively, on our oil and natural gas properties. The bankruptcy filing also directly contributed to the 2015 write-down as we were required to exclude most of our proved undeveloped reserves due to the uncertainties surrounding the availability of the financing that would be available to develop our proved undeveloped reserves. If future capital expenditures out pace future discounted net cash flows in our reserve calculations, if we have significant declines in our oil and natural gas reserves volumes (which also reduces our estimate of discounted future net cash flows from proved oil and natural gas reserves) if oil or natural gas prices decline, or remain at levels prevalent in the current period, it is likely that non-cash write-downs of our oil and natural gas properties will occur in the future. We cannot control and cannot predict what future prices for oil and natural gas will be, thus we cannot estimate the amount or timing of any potential future non-cash write-down of our oil and natural gas properties due to decreases in oil or natural gas prices. However, due to current trends in commodity pricing it is likely that we will record additional ceiling test write-downs in future periods. Revenue Recognition . Oil and gas revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectability of the revenue is probable. Swift Energy uses the entitlement method of accounting in which we recognize our ownership interest in production as revenue. If our sales exceed our ownership share of production, the natural gas balancing payables are reported in “Accounts payable and accrued liabilities” on the accompanying consolidated balance sheets. Natural gas balancing receivables are reported in “Other current assets” on the accompanying consolidated balance sheets when our ownership share of production exceeds sales. As of December 31, 2015 and 2014 , we did not have any material natural gas imbalances. Accounts Receivable. We assess the collectability of accounts receivable, and based on our judgment, we accrue a reserve when we believe a receivable may not be collected. At December 31, 2015 and 2014 , we had an allowance for doubtful accounts of approximately $0.1 million , respectively. The allowance for doubtful accounts has been deducted from the total “Accounts receivable” balance on the accompanying consolidated balance sheets. At December 31, 2015 , our “Accounts receivable” balance included $14.9 million for oil and gas sales, $4.9 million for joint interest owners, $1.2 million for severance tax credit receivables and $0.7 million for other receivables. At December 31, 2014 , our “Accounts receivable” balance included $34.8 million for oil and gas sales, $8.4 million for joint interest owners, $3.1 million for severance tax credit receivables and $2.2 million for other receivables. Supervision Fees. Consistent with industry practice, we charge a supervision fee to the wells we operate including our wells in which we own up to a 100% working interest. Supervision fees are recorded as a reduction to “General and administrative, net”, on the accompanying consolidated statements of operations. Our supervision fees are allocated to each well based on general and administrative costs incurred for well maintenance and support. The amount of supervision fees charged for the years ended December 31, 2015, 2014 and 2013 , respectively, did not exceed our actual costs incurred. The total amount of supervision fees charged to the wells we operated was $9.2 million , $12.7 million and $11.6 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Other Current Assets. Included in "Other current assets" on the accompanying consolidated balance sheets are inventories which consist primarily of tubulars and other equipment and supplies that we expect to place in service in production operations. Our inventories are recorded at cost (weighted average method) and totaled $0.6 million and $3.1 million at December 31, 2015 and 2014 , respectively. During the year ended December 31, 2015 , we recorded a charge of $2.0 million , related to inventory obsolescence in "Price-risk management and other, net" on the accompanying condensed statement of operations. Also included in "Other current assets" on the accompanying consolidated balance sheets are prepaid expenses totaling $4.4 million and $3.9 million at December 31, 2015 and 2014 , respectively. These prepaid amounts cover well insurance, drilling contracts and various other prepaid expenses. We also recorded $2.4 million in "Other current assets" related to a deposit received from Texegy as part of the purchase and sale agreement. This amount is restricted until the transaction closes which is expected to occur during the first quarter 2016. Finally, as a result of the Company's bankruptcy proceedings, we reclassified $3.3 million in debt issuance costs related to our revolving credit facility as of December 31, 2015 from "Other Long-Term Assets" to "Other current assets". Income Taxes. Under guidance contained in FASB ASC 740-10, deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities, given the provisions of the enacted tax laws. We follow the recognition and disclosure provisions under guidance contained in FASB ASC 740-10-25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our policy is to record interest and penalties relating to uncertain tax positions in income tax expense. At December 31, 2015 , we did not have any accrued liability for uncertain tax positions and do not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. Our U.S. Federal income tax returns for 2007 forward, our Louisiana income tax returns from 2000 forward and our Texas franchise tax returns after 2010 remain subject to examination by the taxing authorities. There are no material unresolved items related to periods previously audited by these taxing authorities. No other jurisdiction returns are significant to our financial position. For the year ended December 31, 2015 , the tax benefit for the book loss was mostly offset with an increase in our valuation allowance against our deferred tax assets. Accounts Payable and Accrued Liabilities . The “Accounts payable and accrued liabilities” balances on the accompanying consolidated balance sheets are summarized below (in thousands): December 31, December 31, Trade accounts payable (1)(2) $ — $ 31,153 Accrued operating expenses (2) — 10,784 Accrued payroll costs (2) — 8,100 Asset retirement obligations – current portion 7,165 10,709 Accrued taxes (2) — 2,957 Other payables (2)(3) 498 4,541 Total Accounts payable and accrued liabilities $ 7,663 $ 68,244 (1) Included in “trade accounts payable” are liabilities of approximately $13.7 million at December 31, 2014 for outstanding checks. (2) Classified as Liabilities Subject to Compromise as of December 31, 2015. (3) Total balance at December 31, 2015 was $5.3 million of which $4.8 million was classified as Liabilities Subject to Compromise with the remaining portion classified as "Other payables". Cash and Cash Equivalents. We consider all highly liquid instruments with an initial maturity of three months or less to be cash equivalents. Credit Risk Due to Certain Concentrations. We extend credit, primarily in the form of uncollateralized oil and gas sales and joint interest owners' receivables, to various companies in the oil and gas industry, which results in a concentration of credit risk. The concentration of credit risk may be affected by changes in economic or other conditions within our industry and may accordingly impact our overall credit risk. However, we believe that the risk of these unsecured receivables is mitigated by the size, reputation, and nature of the companies to which we extend credit. From certain customers we also obtain letters of credit or parent company guarantees, if applicable, to reduce risk of loss. For the years ended December 31, 2015, 2014 and 2013 , Shell Oil Company and affiliates accounted for 16% , 21% and 33% of our total oil and gas gross receipts, respectively. Kinder Morgan, Plains Marketing and Howard Energy accounted for approximately 27% and 18% and 13% of our total oil and gas gross receipts in 2015, respectively. Kinder Morgan and Plains Marketing accounted for approximately 20% and 11% of our total oil and gas gross receipts in 2014, while BP America accounted for approximately 21% of our total oil and gas gross receipts in 2013. Short-Term Restricted Cash (Saka Energi Transaction). On July 15, 2014, we closed our transaction with PT Saka Energi Indonesia ("Saka Energi") to fully develop 8,300 acres of Fasken area Eagle Ford shale properties owned by Swift Energy in Webb County, Texas. Swift Energy sold a 36% full participating interest in the Fasken properties to Saka Energi. Subject to the terms of the transaction, Swift Energy and Saka Energi were required to deposit cash on a monthly basis into a separate Swift Energy-owned bank account to fund their respective portions of the on-going Fasken development program for the following month. During the third quarter of 2014, cash deposited in the account was contractually restricted for use in the Fasken development program and therefore was recorded as restricted cash until the Company had performed the related development activities. The cash changes from the account during the third quarter of 2014 relating to Saka Energi’s contributions were shown in the operating activities section of the accompanying consolidated statements of cash flows. The cash changes from the account during the third quarter of 2014 relating to Swift Energy’s contributions were reported in the investing activities section on the accompanying consolidated statements of cash flows. Long-term Restricted Cash. Long-term restricted cash includes amounts held in escrow accounts to satisfy plugging and abandonment obligations. As of December 31, 2015 and 2014 , these assets were approximately $1.0 million . These amounts are restricted as to their current use, and will be released when we have satisfied all plugging and abandonment obligations in certain fields. These restricted cash balances are reported in “Other Long-Term Assets” on the accompanying consolidated balance sheets. Treasury Stock. Our treasury stock repurchases are reported at cost and are included “Treasury stock held, at cost" on the accompanying consolidated balance sheets. When the Company reissues treasury stock the gains are recorded in "Additional paid-in capital" ("APIC") on the accompanying consolidated balance sheets, while the losses are recorded to APIC to the extent that previous net gains on the reissuance of treasury stock are available to offset the losses. If the loss is larger than the previous gains available then the loss is recorded to "Retained earnings (Accumulated deficit)" on the accompanying consolidated balance sheets. For the year ended December 31, 2015 , the Company recorded losses of $4.9 million to "Retained earnings (Accumulated deficit)" as a result of treasury stock transactions. New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, providing a comprehensive revenue recognition standard for contracts with customers that supersedes current revenue recognition guidance. The guidance requires entities to recognize revenue using the following five-step model: identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue as the entity satisfies each performance obligation. Adoption of this standard could result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. We have not completed our review of these new requirements to determine the impact of the guidance on our financial statements. In April 2015, the FASB issued ASU 2015-03, providing guidance on the presentation of debt issuance costs. The guidance requires debt issuance costs to be presented on the balance sheet as a reduction of the carrying amount of the related debt liability. This guidance is effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years, with early adoption permitted and retrospective application required. This guidance, which we plan to adopt beginning with the first quarter of 2016, is not expected to have a material impact on our financial statements. In July 2015, the FASB issued ASU 2015-11, which changes the measurement principle for inventory from the lower of cost or market to “lower of cost and net realizable value.” The standard simplifies the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable value). Net realizable value is defined as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, and must be applied prospectively after the date of adoption. We have not completed our review of this new requirement to determine the impact of this guidance on our financial statements. In November 15, the FASB issued ASU 2015-17, which requires companies to classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, with early adoption permitted and either with prospective or retrospective application permitted. We do not expect this new guidance to have a material impact on our financial statements. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share in accordance with FASB ASC 260-10. Basic earnings per share (“Basic EPS”) has been computed using the weighted average number of common shares outstanding during each period. Diluted earnings per share ("Diluted EPS") assumes, as of the beginning of the period, exercise of stock options and restricted stock grants using the treasury stock method. Diluted EPS also assumes conversion of performance-based restricted stock units to common shares based on the number of shares (if any) that would be issuable, according to predetermined performance and market goals, if the end of the reporting period was the end of the performance period. As we recognized a net loss for the years ended December 31, 2015, 2014 and 2013 , the unvested share-based payments and stock options were not recognized in diluted earnings per share (“Diluted EPS”) calculations as they would be antidilutive. The following is a reconciliation of the numerators and denominators used in the calculation of Basic and Diluted EPS for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share amounts): 2015 2014 2013 Net Income (Loss) Shares Per Share Net Income (Loss) Shares Per Share Net Income (Loss) Shares Per Share Basic EPS: Net Income (Loss) and Share Amounts $ (1,653,971 ) 44,463 $ (37.20 ) $ (283,427 ) 43,795 $ (6.47 ) $ (2,442 ) 43,331 $ (0.06 ) Dilutive Securities: Stock Options — — — Restricted Stock Awards — — — Diluted EPS: Net Income (Loss) and Assumed Share Conversions $ (1,653,971 ) 44,463 $ (37.20 ) $ (283,427 ) 43,795 $ (6.47 ) $ (2,442 ) 43,331 $ (0.06 ) All of the 1.3 million , 1.4 million and 1.6 million stock options to purchase shares were not included in the computation of Diluted EPS for the years ended December 31, 2015, 2014 and 2013 , respectively, as they were antidilutive. Approximately 0.5 million restricted stock awards for the years ended December 31, 2015 and 2014 , respectively, and 0.3 million restricted stock awards for the year ended December 31, 2013 were not included in the computation of Diluted EPS, as they would be antidilutive given the net loss. Approximately 0.6 million , 0.4 million and 0.3 million shares related to performance-based restricted stock units that could be converted to common shares based on predetermined performance and market goals were not included in the computation of Diluted EPS for years ended December 31, 2015, 2014 and 2013 , respectively, primarily because the performance and market conditions had not been met, assuming the end of the reporting period was the end of the performance period. |
Provision (Benefit) for Income
Provision (Benefit) for Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | Provision (Benefit) for Income Taxes Income (Loss) before taxes is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Income (Loss) Before Income Taxes $ (1,734,514 ) $ (433,470 ) $ 198 The following is an analysis of the consolidated income tax provision (benefit) (in thousands): Year Ended December 31, 2015 2014 2013 Current $ (410 ) $ 314 $ (12 ) Deferred (80,133 ) (150,357 ) 2,652 Total $ (80,543 ) $ (150,043 ) $ 2,640 Reconciliations of income taxes computed using the U.S. Federal statutory rate ( 35% ) to the effective income tax rates are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Income taxes (benefit) computed at U.S. statutory rate $ (607,080 ) $ (151,714 ) $ 69 State tax provisions (benefits), net of federal benefits (18,064 ) (5,935 ) (184 ) Non-deductible equity compensation 252 666 1,127 Stock-based compensation tax shortfall 1,703 2,409 558 Valuation allowances 542,289 4,635 385 Expiration of carryover items 333 288 400 Other, net 24 (392 ) 285 Provision (benefit) for income taxes $ (80,543 ) $ (150,043 ) $ 2,640 Effective rate 4.6 % 34.6 % 1,333.4 % The Company’s operations are concentrated in Texas and Louisiana. The Company’s state tax provision varies in proportion to the overall statutory rate due to differences in deductions allowed for U.S. Federal and state income taxes. During 2015, write-downs of oil and gas properties reduced the Company’s book value to less than its Federal and state income tax basis. We believe it is more likely than not that the Company will be unable to utilize loss carryovers and amortizable tax basis in excess of the book carrying value of its properties. Accordingly, the Company increased its valuation allowance by $542 million which reduced the carrying value of the Company’s deferred tax assets to zero . The 2014 net deferred tax liability was reversed in 2015 and is reflected in the 2015 Statement of Operations as the deferred tax benefit. The 2014 tax benefit was primarily attributable to a reduction in the Company’s deferred tax liability resulting from a book write-down in oil and gas properties. The tax effects of temporary differences representing the net deferred tax asset (liability) at December 31, 2015 and 2014 were as follows (in thousands): Year Ended December 31, 2015 2014 Deferred tax assets: Federal net operating loss (“NOL”) carryovers $ 287,720 $ 141,896 NOLs for excess stock-based compensation (9,571 ) (9,606 ) Oil and gas exploration and development costs 214,413 — State NOL carryovers 18,384 15,525 Alternative minimum tax credits 2,092 2,092 Other Carryover Items 1,215 1,294 Asset Retirement Obligations 22,884 26,388 Unrealized share-based compensation 9,953 9,471 Valuation allowance (553,283 ) (11,327 ) Other 6,193 4,056 Total deferred tax assets $ — $ 179,789 Deferred tax liabilities: Oil and gas exploration and development costs $ — $ (258,326 ) Other — (1,596 ) Total deferred tax liabilities $ — $ (259,922 ) Net deferred tax liabilities $ — $ (80,133 ) Net current deferred tax assets — 6,243 Net non-current deferred tax liabilities $ — $ (86,376 ) The federal NOL carryovers totaling $822.1 million will expire between 2027 and 2035 if not utilized in earlier periods. Deferred tax benefits for excess stock-based compensation deductions represent stock-based compensation that have generated tax deductions that have not resulted in a cash tax benefit because the Company has NOL carryovers. The Company will recognize the federal NOL net deferred tax assets associated with excess stock-based compensation tax deductions only if all other components of the NOL carryover tax assets are fully utilized prospectively. If and when the excess stock-based compensation related NOL carryover tax assets are realized, the benefit will be credited directly to equity. The state NOL carryovers are for Louisiana. The Louisiana loss carryovers are scheduled to expire between 2016 and 2030. All of the Company's deferred tax assets as of December 31, 2015 are fully reserved by the valuation allowance. The valuation allowances at the end of 2014 was primarily attributable to the Louisiana NOL carryovers. U.S. Federal income tax returns for 2007 forward, Louisiana income tax returns from 2000 forward, and Texas franchise tax returns after 2010 remain open to possible examination by the taxing authorities. There are no material unresolved items related to periods previously audited by these taxing authorities. No other jurisdiction returns are significant to our financial position. As of December 31, 2015, we do not have any accrued liability for uncertain tax positions. We do not believe the total of unrecognized tax positions will significantly increase or decrease during the next 12 months. As a result of the Company’s bankruptcy and planned reorganization, the ultimate realization of our net operating losses (“NOL”) and tax basis is uncertain. Our tax attributes may be reduced and / or subject to annual utilization limits depending on several factors including ownership changes and other factors. A significant portion of our NOL may be offset by tax gains or cancellation of debt. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Debt Bankruptcy Filing . On December 31, 2015, the Company and eight of its subsidiaries filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code. The Chapter 11 filing constituted an event of default with respect to our existing debt obligations. As a result of the Chapter 11 filing, the Company's pre-petition unsecured senior notes and secured debt under the revolving credit facility became immediately due and payable, but any efforts to enforce such payment obligations are automatically stayed as a result of the Chapter 11 filing. If the bankruptcy plan of reorganization is approved, the senior notes (along with certain unsecured claims) will be exchanged for 88.5% of the common stock of the reorganized entity upon emergence from the bankruptcy proceedings. Additional information regarding the bankruptcy proceedings is included in Note 1A of the consolidated financial statements. Our debt balances as of December 31, 2015 and 2014 , were as follows (in thousands): December 31, 2015 December 31, 2014 7.125% senior notes due in 2017 (1) $ — $ 250,000 8.875% senior notes due in 2020 (1) — 222,775 7.875% senior notes due in 2022 (1) — 404,459 Bank Borrowings 324,900 197,300 Total Debt $ 324,900 $ 1,074,534 Less: Current portion of long-term debt (2) (324,900 ) — Long-Term Debt $ — $ 1,074,534 (1) Classified as Liabilities Subject to Compromise as of December 31, 2015 (2) As a result of our Chapter 11 filing, we have classified our credit facility borrowings as current at December 31, 2015. Reclassification of Senior Notes Liabilities . Senior Notes due in 2017 of $250.0 million , Senior Notes due in 2020 of $225.0 million and Senior Notes due in 2022 of $400.0 million are included in Liabilities Subject to Compromise in the consolidated balance sheet as of December 31, 2015. Additionally, a non-cash charge to write-off all of the unamortized debt issuance costs and associated discounts and premiums related to the Company's senior notes is included in "Reorganization Items" in the Consolidated Statement of Operations as of December 31, 2015. Debt issuance costs of $0.8 million on the senior notes due in 2017, $2.6 million on the senior notes due in 2020 and $5.3 million on the senior notes due in 2022 were also written-off as of December 31, 2015. A loss of $1.9 million was recognized on the extinguishment of the 2020 senior note unamortized discount, while a gain of $4.0 million was recognized on the extinguishment of the 2022 unamortized senior note premium. Reclassification of Revolving Credit Facility Liabilities . Amounts outstanding under our revolving credit facility due in 2017 of $324.9 million were reclassified as a current liability in the Consolidated Balance Sheet dated December 31, 2015 due to cross-default provisions as a result of the bankruptcy filings. The associated remaining unamortized debt issuance costs of $3.3 million on the credit facility were reclassified to Other Current Assets in the Company's Consolidated Balance Sheet as of December 31, 2015. Debtor-In-Possession Financing . As part of the Chapter 11 filings, the Bankruptcy Court has entered a final order authorizing the Company and the Chapter 11 Subsidiaries to obtain debtor-in-possession financing on the terms and conditions set forth in the Debtor-In-Possession (DIP) Credit Agreement, subject to the terms of the order. As of February 29, 2016, the Company has $30.0 million available under the DIP Facility. The remaining $45.0 million under the DIP Facility will become available to the Company upon the Company’s satisfaction of certain contingencies, including the amendment and restatement or refinancing of the indebtedness under the Existing First Lien Credit Agreement and the securing of exit financing. The proceeds of the DIP Facility may be used to, among other things, pay certain costs, fees and expenses related to the Chapter 11 cases, pay authorized pre-petition claims, and pay amounts due in connection with the DIP Credit Agreement, including on account of certain “adequate protection” obligations. The proceeds may also be used to fund working capital needs and for other general corporate purposes in all cases subject to the terms of the DIP Credit Agreement, and applicable orders of the Court. The maturity date of the DIP Facility is expected to be the earliest to occur of six months from the effective date of a plan of reorganization or liquidation in the Chapter 11 cases, the consummation of a sale of all or substantially all of the assets of the Company and its subsidiaries pursuant to Section 363 of the Bankruptcy Code, or the date of termination of the DIP Lenders’ commitment amounts pursuant to an event of default under the DIP Credit Agreement. Interest will accrue at a rate per year equal to LIBOR plus 12.0% for Eurodollar Rate Loans or the alternative base rate plus 11.0% . We have paid the DIP Lenders a total of $0.9 million during the first two months of 2016 as a commitment fee, and if the remaining $45.0 million under the DIP Facility becomes available we will be required to pay an additional commitment fee of 3.0% of the $45.0 million made available to the Company on that date. We are also required to pay to each Backstop Lender (as defined in the DIP Credit Agreement) a non-refundable backstop fee of 7.5% on the pro rata share of such Backstop Lender’s share of the loan commitments, payable in the form of common stock issued by the Company or its successor upon its emergence from the Chapter 11 cases, or, if the Restructuring Support Agreement is terminated, in cash when the principal amounts outstanding under the DIP Facility come due. An original issue discount of 5% will be paid by the Company at the time of any drawdowns against the DIP facility, resulting in net proceeds to the Company of 95% of the gross drawdown amount. The DIP Facility is secured by security interests in substantially all of the Company’s assets, which are (1) second priority to the existing pre-petition liens of the lenders and JPMorgan Chase Bank, N.A., as administrative agent with respect to the collateral (generally required to be at least 95% of our oil and gas properties) set forth in the Second Amended and Restated Credit Agreement, dated as of September 21, 2010 (the “Existing First Lien Credit Agreement”), and (2) first priority with respect to all other property of the Company. These security interests are subject to certain carve-outs (such as Bankruptcy Court costs and professional fees), and permitted liens under the DIP Credit Agreement. The DIP Facility is subject to customary covenants, prepayment events, events of default and other provisions. Bank Borrowings . Effective November 2, 2015 , our syndicate of 11 banks executed an amendment to our credit facility agreement lowering our borrowing base and commitment amount from $375.0 million to $330.0 million . At December 31, 2015 and 2014 , we had $324.9 million and $197.3 million in outstanding borrowings under our credit facility, respectively. As of December 31, 2015 , the interest rate on our credit facility is either (a) the lead bank’s prime rate plus an applicable margin or (b) the Eurodollar rate plus an applicable margin. However with respect to (a), if the lead bank’s prime rate is not higher than each of the federal funds rate plus 0.5% , and the adjusted London Interbank Offered Rate (“LIBOR”) plus 1% , the greatest of these three rates will then apply. The applicable margins vary depending on the level of outstanding debt with escalating rates of 100 to 200 basis points above the Alternative Base Rate and escalating rates of 200 to 300 basis points for Eurodollar rate loans. During 2015 , the lead bank’s prime rate fluctuated between 3.25% and 3.5% while the commitment fee associated with the credit facility fluctuated between 0.38% and 0.50% . Since the filing of the petition in Bankruptcy Court, we have been paying interest on our credit facility in the normal course. Interest expense on the credit facility, including commitment fees and amortization of debt issuance costs, totaled $9.4 million , $7.5 million and $6.0 million for the years ended December 31, 2015, 2014 and 2013 , respectively. The amount of commitment fees included in interest expense, net was $0.5 million , $0.8 million and $1.1 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Additionally, we have capitalized interest on our unproved properties in the amount of $4.9 million , $5.0 million and $7.2 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Due to the bankruptcy proceedings, most acts to exercise remedies under our credit facility, including those related to defaults of various financial covenants and ratios, were stayed as of December 31, 2015 and continue to be stayed. No further funds are available to us under the credit facility. The terms of our credit facility include, among other restrictions, a limitation on the level of cash dividends (not to exceed $15.0 million in any fiscal year), a remaining aggregate limitation on purchases of our stock of $50.0 million , and limitations on incurring other debt. At December 31, 2015 , our bank credit agreement contained financial covenants detailing certain minimum financial ratios that must be maintained. The first was an adjusted working capital ratio of adjusted current assets to current liabilities (as defined in the Credit Agreement) of not less than 0.5 for each of the quarters up to and ending on December 31, 2016, returning to a ratio of not less than 1.0 to 1.0 at any time thereafter. The second ratio was also an interest coverage ratio, calculated on a trailing twelve month basis of EBITDAX to interest expense (as defined in the Credit Agreement), of not less than 1.15 to 1.0 for the quarters ending on December 31, 2015 through June 30, 2016, 1.3 to 1.0 for the quarters ending September 30, 2016 through December 31, 2016, and 2.0 to 1.0 any time thereafter. The third ratio was the senior secured leverage ratio (as defined in the Credit Agreement), requiring that the ratio of senior secured liabilities on the last day of the quarter to EBITDAX, calculated on a trailing twelve month basis, not be greater than 3.5 to 1.0 for the quarters ending December 31, 2015 through June 30, 2016, 3.0 to 1.0 for the quarters ending September 30, 2016 through December 31, 2016, and 2.5 to 1.0 any time thereafter. Since inception, no cash dividends had been declared on our common stock. The terms of the credit facility also required us to secure at least 95% of our oil and natural gas properties. Under the terms of the credit facility, the commitment amount can be less than or equal to the total amount of the borrowing base with unanimous consent of the bank group as it might change from time to time. Senior Notes Due In 2022. These notes consist of $400.0 million of 7.875% senior notes that were set to mature on March 1, 2022. On November 30, 2011, we issued $250.0 million of these senior notes at a discount of $2.1 million or 99.156% of par, which equates to an effective yield to maturity of 8% . On October 3, 2012, we issued an additional $150.0 million of these senior notes at 105% of par, which equates to a yield to worst of 6.993% . The notes are senior unsecured obligations that rank equally with all of our existing and future senior unsecured indebtedness, are effectively subordinated to all our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, including borrowing under our bank credit facility, and will rank senior to any future subordinated indebtedness of Swift Energy. Interest on these notes was payable semi-annually on March 1 and September 1 and commenced on March 1, 2012. The filing of the petition for bankruptcy protection constitutes an “event of default” under the indenture governing these senior notes. Senior Notes Due In 2020 . These notes consist of $225.0 million of 8.875% senior notes issued at 98.389% of par, which equates to an effective yield to maturity of 9.125% . The notes were issued on November 25, 2009 with an original discount of $3.6 million and were set to mature on January 15, 2020. The notes are senior unsecured obligations that rank equally with all of our existing and future senior unsecured indebtedness, are effectively subordinated to all our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, including borrowing under our bank credit facility, and will rank senior to any future subordinated indebtedness of Swift Energy. Interest on these notes was payable semi-annually on January 15 and July 15 and commenced on January 15, 2010. The filing of the petition for bankruptcy protection constitutes an “event of default” under the indenture governing these senior notes. Senior Notes Due In 2017 . These notes consist of $250.0 million of 7.125% senior notes due in 2017, which were issued on June 1, 2007 at 100% of the principal amount and will mature on June 1, 2017. The notes are senior unsecured obligations that rank equally with all of our existing and future senior unsecured indebtedness, are effectively subordinated to all our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, including borrowing under our bank credit facility, and will rank senior to any future subordinated indebtedness of Swift Energy. Interest on these notes was payable semi-annually on June 1 and December 1, and commenced on December 1, 2007. Prior to the Chapter 11 filing, the Company elected not to make the $8.9 million semi-annual interest payment due December 1, 2015, on its outstanding $250.0 million principal amount of 7.125% Senior Notes due 2017. The filing of the petition for bankruptcy protection constitutes an “event of default” under the indenture governing these senior notes. Debt Issuance Costs . Legal fees, accounting fees, underwriting fees, printing costs, and other direct expenses associated with extensions of our senior notes were originally capitalized and then amortized on an effective interest basis over the life of each of the respective senior note offerings. Interest Expense on Senior Notes . Interest expense on the senior notes, including amortization of debt issuance costs, debt discount and debt premium, totaled $70.8 million for the year ended December 31, 2015 , $70.7 million for the year ended December 31, 2014 , and $70.6 million for the year ended December 31, 2013 . |
Price-Risk Management Price-Ris
Price-Risk Management Price-Risk Management (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Price-Risk Management Activities | Price-Risk Management Activities The Company follows FASB ASC 815-10, which requires that changes in the derivative’s fair value are recognized in earnings. The changes in the fair value of our derivatives are recognized in "Price-risk management and other, net” on the accompanying consolidated statements of operations. We have a price-risk management policy to use derivative instruments to protect against declines in oil and natural gas prices, mainly through the purchase of price swaps, floors, calls, collars and participating collars. For the years ended December 31, 2015, 2014 and 2013 , we recognized net gains (losses) of $0.2 million , $1.3 million and ($0.9) million , respectively, relating to our derivative activities. The effects of our derivatives are included in the "Other" section of our Cash Flows from Operating Activities on the accompanying consolidated statements of cash flows. The fair values of our derivatives are computed using commonly accepted industry-standard models and are periodically verified against quotes from brokers. There were no unsettled derivative assets and no unsettled derivative liabilities at December 31, 2015 as all outstanding hedge agreements had settled as of year-end. The Company uses an International Swap and Derivatives Association "ISDA" master agreement for all derivative contracts. This is an industry standardized contract containing the general conditions of our derivative transactions including provisions relating to netting derivative settlement payments under certain circumstances (such as default). For reporting purposes, the Company does not offset the asset and liability fair value amounts of its derivatives on the accompanying balance sheets. As all hedge agreements had settled as of year-end, under the right of set-off, there was no net fair value at December 31, 2015 . For further discussion related to the fair value of the Company's derivatives, refer to Note 10 of these consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rental and lease expenses were $16.8 million , $21.0 million and $20.5 million for the years ended December 31, 2015, 2014 and 2013 , respectively. The rental and lease expenses primarily relate to compressor rentals during the year and the lease of our office space in Houston, Texas. During 2015 the Company entered into a new eleven year lease agreement for office space in Houston, Texas. The operating lease commenced on March 1, 2015 and may be terminated after seven years. The operating lease may be subject to reinstatement, renegotiation or amendment, or rejection in connection with our Chapter 11 proceedings. As of December 31, 2015 , the minimum contractual obligations were approximately $23 million in the aggregate. Our policy is to amortize the total payments under the lease agreement on a straight-line basis over the term of the lease. Any reinstatement, renegotiation, amendment or rejection of this agreement in the bankruptcy proceedings could have a material impact on the timing and magnitude of amounts recognized within our financial statements in future periods. Our minimum annual obligations under non-cancelable operating lease commitments were $4.1 million for 2016, $3.3 million for 2017, $3.7 million for 2018 , $3.9 million for 2019 , $5.5 million for 2020 and approximately $24.1 million in the aggregate. The minimum annual obligations under non-cancelable operating lease commitments primarily relate to office space for the Houston office. Our employment agreement liabilities for certain named executive officers are recorded in "Liabilities subject to compromise" on the balance sheet at December 31, 2015, and are recorded in "Other long-term liabilities" on the balance sheet at December 31, 2014. Our remaining gas transportation and processing minimum obligations were $14.5 million for 2016 , $17.7 million for 2017 , $17.2 million for 2018 , $16.9 million for 2019 , $14.3 million for 2020 and $80.7 million in the aggregate. In the ordinary course of business, we are party to various legal actions, which arise primarily from our activities as operator of oil and natural gas wells. Most of our pending legal proceedings have been stayed by virtue of our voluntary petition filed on December 31, 2015 seeking relief under Chapter 11 of the Bankruptcy Code. In management's opinion, the outcome of any such currently pending legal actions will not have a material adverse effect on our financial position or results of operations. |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation Bankruptcy Proceedings The Plan of Reorganization, as discussed in Note 1A, provides that the Company’s current common stock will be cancelled and that new common stock will be issued upon emergence from bankruptcy. If the Plan is confirmed by the Bankruptcy Court, the Company's currently existing share-based awards will also be canceled upon the Company's emergence from bankruptcy. Cancellation of these share-based awards will result in the recognition of expense, on the date of cancellation, to record any previously unamortized expense related to the canceled awards. Share-Based Compensation Plans We have multiple share-based compensation plans with outstanding awards including the 2005 Stock Compensation Plan, most recently amended by our Board of Directors in May 2013, which was approved by shareholders at the 2005 annual meeting of shareholders; the 2001 Omnibus Stock Compensation Plan, which was adopted by our Board of Directors in February 2001 and was approved by shareholders at the 2001 annual meeting of shareholders; the 1990 Non-Qualified Stock Option Plan solely for our independent directors. No further grants will be made under the 2001 Omnibus Stock Compensation Plan or the 1990 Non-Qualified Stock Option Plan, both of which were replaced by the 2005 Stock Compensation Plan, and no awards remain outstanding under these plans as of December 31, 2015 . In addition, we have an employee stock purchase plan and also had an employee stock ownership plan prior to its termination during 2015. We follow guidance contained in FASB ASC 718 to account for share-based compensation. Under the 2005 plan, stock option awards and other equity based awards may be granted to employees, directors, and consultants, with directors only eligible to receive restricted awards. Under the 2001 plan, stock option awards and other equity based awards were granted to employees. Under the 1990 non-qualified plan, non-employee members of our Board of Directors were automatically granted stock option awards to purchase shares of common stock on a formula basis. All three plans provide that the exercise prices for stock option awards equal 100% of the fair value of the common stock on the date of grant. Restricted stock grants become vested over a three year period, and stock option awards become exercisable in various terms ranging from one year to five years. Stock option awards granted typically expire ten years after the date of grant or earlier in the event of the optionee's separation from employment. At the time the stock option awards are exercised, the cash received is credited to common stock and additional paid-in capital. The 2005 plan allows for the use of a “stock swap” in lieu of a cash exercise for stock option awards, under certain circumstances. The delivery of Swift Energy common stock, held by the optionee for a minimum of six months, which are considered mature shares, with a fair market value equal to the required purchase price of the shares to which the exercise relates, constitutes a valid “stock swap.” Stock option awards issued under a “stock swap” also previously included a reload feature that was discontinued during 2012. There were no mature shares that were delivered in “stock swap” transactions during 2015 or 2014 while there were 10,752 such shared delivered for the year ended December 31, 2013 . The employee stock purchase plan, which began in 1993, provides eligible employees the opportunity to acquire shares of Swift Energy common stock at a discount through payroll deductions. To date, employees have been allowed to authorize payroll deductions of up to 10% of their base salary, within IRS limitations and plan rules, during the plan year by making an election to participate prior to the start of a plan year. The purchase price for stock acquired under the plan is 85% of the lower of the closing price of our common stock at the beginning or end of the plan year. Under this plan for the last three years, we have issued 87,629 shares at a price of $3.44 in 2015 , 71,825 shares at a price of $11.47 in 2014 and 72,273 shares at a price of $13.08 in 2013 . There were no contributions for the year ended December 31, 2015 while contributions for the years ended December 31, 2014 and 2013 were all made in common stock. As of December 31, 2015 , 318,027 shares remained available for issuance under this plan. We receive a tax deduction for certain stock option exercises during the period the stock option awards are exercised, generally for the excess of the market value on the exercise date over the exercise price of the stock option awards. We receive an additional tax deduction when restricted stock awards vest at a higher value than the value used to recognize compensation expense at the date of grant. We are required to report excess tax benefits from the award of equity instruments as financing cash flows. We recognized an excess tax shortfall for the years ended December 31, 2015 and 2014 , as referenced in Note 3 of these consolidated financial statements. We did not recognize any material excess tax benefit or shortfall in earnings for the year ended December 31, 2013 . There were no stock option exercises for the years ended December 31, 2015 and 2014 . Net cash proceeds from the exercise of stock option awards were not material for the year ended December 31, 2013 . There was no income tax benefit from stock option exercises for the year ended December 31, 2013 . Share-based compensation expense for awards issued to both employees and non-employees, which was recorded in “General and administrative, net” in the accompanying consolidated statements of operations, was $4.1 million , $6.7 million and $9.3 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Share-based compensation recorded in lease operating cost was $0.2 million for the years ended December 31, 2015 and 2014 , respectively and $0.3 million for the year ended December 31, 2013 . We also capitalized $1.4 million , $3.5 million and $5.5 million of share-based compensation for the years ended December 31, 2015, 2014 and 2013 , respectively. We view stock option awards and restricted stock awards with graded vesting as single awards with an expected life equal to the average expected life of component awards, and we amortize the awards on a straight-line basis over the life of the awards. Our shares available for future grant under our Share-Based Compensation plans were 1,253,306 at December 31, 2015 . Each stock option award granted reduces the aforementioned total by 1.0 share, while each restricted stock award and restricted stock unit granted reduces the shares available for future grant by 1.44 shares. Stock Option Awards During the years ended December 31, 2015, 2014 and 2013 , we did not grant any stock option awards. The expected term for grants issued considers all relevant factors including historical and expected future employee exercise behavior. We have analyzed historical volatility and, based on an analysis of all relevant factors, we have used a 5.5 year look-back period to estimate expected volatility of our stock option awards. At December 31, 2015 , we had no unrecognized compensation cost related to stock option awards. The following table represents stock option award activity for the year ended December 31, 2015 : 2015 Shares Wtd. Avg. Exer. Price Options outstanding, beginning of period 1,332,190 $ 34.02 Options granted — $ — Options canceled (1,800 ) $ 34.15 Options exercised — $ — Options outstanding, end of period 1,330,390 $ 34.02 Options exercisable, end of period 1,330,390 $ 34.02 Our outstanding and exercisable stock option awards at December 31, 2015 had no aggregate intrinsic value since all outstanding stock option awards were out of the money. At December 31, 2015 the weighted average remaining contract life of stock option awards outstanding and exercisable was 3.8 years. The total intrinsic value of stock option awards exercised for the years ended December 31, 2015, 2014 and 2013 was no t material. The following table summarizes information about stock option awards outstanding at December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at 12/31/15 Wtd. Avg. Remaining Contractual Life Wtd. Avg. Exercise Price Number Exercisable at 12/31/15 Wtd. Avg. Exercise Price $8.00 to $24.99 380,080 3.6 $ 19.91 380,080 $ 19.91 $25.00 to $45.00 950,310 3.8 $ 39.67 950,310 $ 39.67 $8.00 to $45.00 1,330,390 3.7 $ 34.02 1,330,390 $ 34.02 Restricted Stock Awards For the years ended December 31, 2015, 2014 and 2013 , the Company issued 609,238 shares, 747,400 shares and 869,430 shares, respectively, of restricted stock to employees, consultants, and directors. These shares vest over three years and remain subject to forfeiture if vesting conditions are not met. The ultimate treatment of these grants will be determined by the Bankruptcy Court, which may include forfeiture of all unvested awards to certain members of management of the Company and the Board of Directors. The weighted average fair values of these shares when issued, for the years ended December 31, 2015, 2014 and 2013 were $2.64 , $11.55 and $14.86 per share, respectively. The compensation expense for these awards was determined based on the closing market price of our stock at the date of grant applied to the total number of shares that were anticipated to fully vest. As of December 31, 2015 , we had unrecognized compensation expense of $3.6 million related to restricted stock awards which is expected to be recognized over a weighted-average period of 1.2 years. The grant date fair values of shares vested for the years ended December 31, 2015, 2014 and 2013 were $6.1 million , $11.8 million and $12.8 million , respectively. The following table represents restricted stock award activity for the year ended December 31, 2015 : 2015 Shares Wtd. Avg. Grant Price Restricted shares outstanding, beginning of period 1,414,012 $ 14.81 Restricted shares granted 609,238 $ 2.64 Restricted shares canceled (232,482 ) $ 13.65 Restricted shares vested (303,692 ) $ 20.04 Restricted shares outstanding, end of period 1,487,076 $ 8.94 Performance-Based Restricted Stock Units For the years ended December 31, 2015, 2014 and 2013 , the Company granted 216,450 , 185,250 and 189,700 performance-based restricted stock units, respectively. These units contained predetermined market and performance conditions set by our compensation committee with a performance period of 3 years and a cliff vesting period of 3.1 years . Further, the ultimate treatment of these grants will be determined by the Bankruptcy Court, which may include forfeiture of all unvested awards to certain members of management. The Target payout is 100% of the units granted while the conditions of the grants allow for a payout ranging between no payout and 200% of target. The compensation expense for the market condition is based on the per unit grant date valuation using a Monte-Carlo simulation. The performance condition is remeasured quarterly and compensation expense is recorded based on the closing market price of our stock per unit on the grant date multiplied by the expected payout level. The payout level for the 2015 awards is calculated based on actual stock price performance achieved during the performance period while the payout level for the 2014 and 2013 awards is calculated based on actual performance achieved during the performance period compared to a defined peer group. As of December 31, 2015 , we had unrecognized compensation expense of $0.9 million related to our restricted stock units which is expected to be recognized over a weighted-average period of 1.5 years . No shares vested during the years ended December 31, 2015, 2014 and 2013 . The weighted average grant date fair value for the restricted stock units granted during the years ended December 31, 2015, 2014 and 2013 was $1.98 , $11.68 and $15.01 per unit, respectively. The following table represents restricted stock unit activity for the year ended December 31, 2015 : Shares Wtd. Avg. Restricted stock units outstanding, beginning of period 374,950 $ 13.36 Restricted stock units granted 216,450 $ 1.98 Restricted stock units canceled — $ — Restricted stock units vested — $ — Restricted stock units outstanding, end of period 591,400 $ 9.20 Cash-Settled Restricted Stock Units (Liability Awards) During the year ended 2015 , the Company granted 147,812 units of cash-settled restricted stock units. The grants have a cliff vesting period of approximately 1.0 year while the compensation expense and corresponding liability are remeasured quarterly over the corresponding service period. The vesting of these grants, the timing of which is currently uncertain due to the bankruptcy proceedings, originally required a cash payout based on the fair value of the stock price on the date of the next Annual Shareholder Meeting in May of 2016. The ultimate treatment of these grants will be determined by the Bankruptcy Court, which may include forfeiture of all unvested awards. Employee Stock Ownership Plan The company established the Employee Stock Ownership Plan (“ESOP”), effective January 1, 1996. All employees over the age of 21 with one year of service were participants. This plan had a three-year cliff vesting requirement. The ESOP was designed to enable our employees to accumulate stock ownership. While employees did not contribute to the plan, contributions made by the Company provided participants with an allocation of stock within the plan. The plan could also acquire Swift Energy common stock, purchased at fair market value. The ESOP could borrow money from Swift Energy to buy Swift Energy common stock. ESOP payouts were paid in a lump sum or installments, and the participants generally had the choice of receiving cash or stock. In 2015, with the approval of the Board of Directors, the Company began winding down the ESOP and on October 25, 2015, the Board of Directors approved the termination of the ESOP. Distributions were made to all participants with a balance based on each participant’s election, and as of December 31, 2015, there were no remaining participants in the ESOP. The Company is in the process of completing the remaining administrative steps necessary to formally terminate the ESOP. Accordingly, no contributions were made by Swift Energy for the years ended December 31, 2015 and 2014. Our contribution to the ESOP plan totaled $0.2 million for the year ended year ended December 31, 2013 , and was all made in common stock, from treasury shares which totaled 14,815 , and was recorded as “General and administrative, net” on the accompanying consolidated statements of operations. Employee Savings Plan We have a savings plan under Section 401(k) of the Internal Revenue Code. In 2013 this plan was updated so that eligible employees may make voluntary contributions into the 401(k) savings plan with Swift Energy contributing on behalf of the eligible employee an amount up to 100% of the first 6% of compensation based on the contributions made by the eligible employees. The 2015 plan contributions of $0.7 million are expected to be paid in cash during the first quarter of 2016. Our contributions to the 401(k) savings plan were $1.9 million for the year ended December 31, 2014 and were $1.8 million for the year ended December 31, 2013. These amounts were recorded as “General and administrative, net” on the accompanying consolidated statements of operations. The 2014 plan contributions were made with a combination of $0.9 million of cash and 352,476 shares of common stock, from treasury shares, while the 2013 plan contributions were made in common stock, from treasury shares. The shares of common stock contributed to the 401(k) savings plan totaled 139,850 for the year ended December 31, 2013. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions We receive research, technical writing, publishing, and website-related services from Tec-Com Inc., a corporation located in Knoxville, Tennessee and controlled and majority owned by the aunt of the Company's Chairman of the Board and Chief Executive Officer. We paid Tec-Com, for services pursuant to the terms of the contract, approximately $0.5 million in 2015 and $0.6 million in 2014 and 2013. The contract will be terminated on March 31, 2016. As a matter of corporate governance policy and practice, related party transactions are annually presented and considered by the Corporate Governance Committee of our Board of Directors in accordance with the Committee's charter. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions On July 15, 2014, we closed our transaction with Saka Energi to fully develop 8,300 acres of Fasken area Eagle Ford shale properties owned by Swift Energy in Webb County, Texas, with an effective date of January 1, 2014. Swift Energy sold a 36% full participating interest in the Fasken properties to Saka Energi for $175 million in total cash consideration, with $125 million paid at closing (subject to adjustments for the interim period between the effective date and the closing date) and $50 million in cash to be paid by Saka Energi over time to carry a portion of Swift Energy's field development costs incurred after the effective date. As of December 31, 2015, approximately $5.5 million remained of Saka Energi's original $50 million carry obligation. At closing, the Company received approximately $147 million in proceeds, including a $12.5 million deposit received during the prior quarter which was held in an escrow account until the closing date, as well as adjustments for the interim period between the effective date and the closing date. The proceeds initially were used to reduce our outstanding borrowings on our credit facility which were partially offset by additional borrowings against the credit facility during the second half of the year to fund development expenditures. No gain or loss was recognized for the transaction as the proceeds were applied to the full cost pool. On December 31, 2015, the Company, entered into a purchase and sale agreement with Texegy LLC (Texegy) to sell a full participating 75% working interest of Swift Energy’s position in the South Bearhead Creek Field and Burr Ferry Field located in Allen, Avoyelles, Vernon, Sabine and Beauregard Parishes in central Louisiana. The Bankruptcy Court approved the sale on February 2, 2016. To date, Swift has received two cash deposits aggregating $4.9 million from Texegy, the second of which was made upon Bankruptcy Court approval of the sale on February 2, 2016. The purchase agreement provides for Texegy to pay Swift Energy approximately $49.0 million in cash consideration, which is subject to closing adjustments and adjustments for interim operations between January 1, 2016 and the closing date. Upon closing, which the purchase and sale agreement provides will occur on or prior to March 15, 2016 unless a later date is agreed to by both parties, Swift will retain approximately $13.0 million of the closing proceeds (subject to the same adjustments), with the balance to be paid to the Company’s first-lien secured lenders under the Company’s credit facility. The properties being sold represent approximately 5% of the company's total reserves as of December 31, 2015. In addition to paying for its share of costs, Texegy has agreed to carry a portion of the Company’s field development costs, which are limited to the Company's 25% share of all costs for the drilling of two wells to casing point in the South Bearhead Creek Field. On the closing date, Swift Energy and Texegy plan to enter into a joint development agreement and a joint operating agreement (together, the “JV Agreements”) to continue operation and development of the Properties with a Texegy affiliate serving as the operator of the Properties, that will conduct all drilling, completion and production operations. Under the JV Agreements, future development plans for the field will be mutually agreed upon by the Company and Texegy. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements FASB ASC 820-10 defines fair value, establishes guidelines for measuring fair value and expands disclosure about fair value measurements. It does not create or modify any current GAAP requirements to apply fair value accounting. However, it provides a single definition for fair value that is to be applied consistently for all prior accounting pronouncements. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, bank borrowings, and senior notes. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the highly liquid or short-term nature of these instruments. Based upon quoted market prices as of December 31, 2015, 2014 and 2013 , the fair value and carrying value of our senior notes was as follows (in millions): Subject to Compromise Not Subject to Compromise Not Subject to Compromise December 31, 2015 December 31, 2014 December 31, 2013 Fair Value Carrying Value (1) Fair Value Carrying Value Fair Value Carrying Value 7.125% senior notes due in 2017 $ 23.0 $ 250.0 $ 153.0 $ 250.0 $ 256.7 $ 250.0 8.875% senior notes due in 2020 $ 21.4 $ 225.0 $ 133.1 $ 222.8 $ 239.1 $ 222.4 7.875% senior notes due in 2022 $ 34.5 $ 400.0 $ 198.0 $ 404.5 $ 409.0 $ 404.9 (1) Includes write-off of discount associated with the 2020 notes and premium associated with the 2022 notes due to the Company's bankruptcy proceedings. Our senior notes due in 2017, 2020 and 2022 are stated at carrying value on our financial statements for the year ended December 31, 2015 and are stated net of any discount or premium for the years ended December 31, 2014 and 2013. If we recorded these notes at fair value they would be Level 1 in our fair value hierarchy as they are traded in an active market with quoted prices for identical instruments. As of December 31, 2015 all of the Company's hedging agreements had settled. The following table presents our assets and liabilities that are measured at fair value as of December 31, 2014 , and are categorized using the fair value hierarchy. For additional discussion related to the fair value of the Company's derivatives, refer to Note 5 of these consolidated financial statements. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value (in millions): Fair Value Measurements at Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2014 Assets Natural Gas Derivatives $ 2.4 $ — $ 2.4 $ — Natural Gas Basis Derivatives $ 0.1 $ — $ 0.1 $ — Liabilities Natural Gas Derivatives $ 0.1 $ — $ 0.1 $ — Our derivative assets and liabilities in the table above are measured at gross fair value and are shown on the accompanying consolidated balance sheets in “Other current assets” and "Accounts payable and accrued liabilities", respectively. Level 1 – Uses quoted prices in active markets for identical, unrestricted assets or liabilities. Instruments in this category have comparable fair values for identical instruments in active markets. Level 2 – Uses quoted prices for similar assets or liabilities in active markets or observable inputs for assets or liabilities in non-active markets. Instruments in this category are periodically verified against quotes from brokers and include our commodity derivatives that we value using commonly accepted industry-standard models which contain inputs such as contract prices, risk-free rates, volatility measurements and other observable market data that are obtained from independent third-party sources. Level 3 – Uses unobservable inputs for assets or liabilities that are in non-active markets. We do not have any assets or liabilities in this category. |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations We record these obligations in accordance with the guidance contained in FASB ASC 410-20. This guidance requires entities to record the fair value of a liability for legal obligations associated with the retirement obligations of tangible long-lived assets in the period in which it is incurred. When the liability is initially recorded, the carrying amount of the related long-lived asset is increased. The liability is discounted from the expected date of abandonment. Over time, accretion of the liability is recognized each period, and the capitalized cost is depreciated on a unit-of-production basis as part of depreciation, depletion, and amortization expense for our oil and gas properties. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement which is included in the “Property and Equipment” balance on our accompanying consolidated balance sheets. This guidance requires us to record a liability for the fair value of our dismantlement and abandonment costs, excluding salvage values. The following provides a roll-forward of our asset retirement obligations (in thousands): Asset Retirement Obligations as of December 31, 2013 $ 79,084 Accretion expense 5,712 Liabilities incurred for new wells and facilities construction 469 Reductions due to sold and abandoned wells and facilities (8,253 ) Revisions in estimates (4,181 ) Asset Retirement Obligations as of December 31, 2014 $ 72,831 Accretion expense 5,572 Liabilities incurred for new wells and facilities construction 151 Reductions due to sold and abandoned wells and facilities (4,576 ) Revisions in estimates (10,423 ) Asset Retirement Obligations as of December 31, 2015 $ 63,555 At December 31, 2015 and 2014 , approximately $7.2 million and $10.7 million , respectively, of our asset retirement obligation was classified as a current liability in “Accounts payable and accrued liabilities” on the accompanying consolidated balance sheets. The decrease in 2015 is primarily attributable to revaluation changes due to changes in service costs driven by market conditions, which led to a decrease in the estimated plugging and abandonment costs for many our wells and facilities. |
Consolidating Financial Informa
Consolidating Financial Information Consolidating Financial Information (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Information of Parent Company Only Disclosure | Consolidating Financial Information Swift Energy Company (the parent) is the issuer and Swift Energy Operating, LLC (a wholly owned indirect subsidiary of Swift Energy Company) is the sole guarantor of our senior notes due in 2017, 2020 and 2022. Swift Energy Company does not have any independent assets or operations. The guarantees on our senior notes due in 2017, 2020 and 2022 are full and unconditional. All subsidiaries of Swift Energy Company, other than Swift Energy Operating, LLC, are minor. The Chapter 11 bankruptcy proceedings, as discussed in Note 1A of the consolidated financial statements, include all of our domestic subsidiaries but do not include our international subsidiaries, which are 100% owned by our domestic subsidiary Swift Energy International, Inc. These international subsidiaries primarily consist of our New Zealand subsidiaries, which liquidated their assets in 2007 and 2008. These subsidiaries have had no activity since 2008, except for the recognition of gains in 2011 upon the settlement of legal claims related to the 2007 and 2008 divestitures, and have no debt obligations. We do not have any material intercompany balances between our entities in bankruptcy proceedings and our entities not in bankruptcy proceedings. Intercompany balances for our entities in bankruptcy proceedings, which have been eliminated within our consolidated balance sheets, include payables due from Swift Energy Operating, LLC to Swift Energy Company (the parent) in the amount of $416.4 million and to Swift Energy International, Inc. in the amount of $85.4 million , and receivables due to Swift Energy Operating, LLC from Swift Energy Alaska, Inc. in the amount of approximately $6.1 million and from Swift Energy Exploration Services, Inc. in the amount of $0.1 million . |
Chapter 11 Proceedings Chapte21
Chapter 11 Proceedings Chapter 11 Proceedings (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings [Policy Text Block] | 1A. Chapter 11 Proceedings On December 31, 2015, the Company and eight of its subsidiaries including Swift Energy International, Inc., Swift Energy Group, Inc., Swift Energy USA, Inc., Swift Energy Alaska, Inc., Swift Energy Operating, LLC, GASRS LLC, SWENCO-Western, LLC and Swift Energy Exploration Services, Inc. (the “Chapter 11 Subsidiaries”) filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the district of Delaware (In re Swift Energy Company, et al, Case No. 15-12670). The Chapter 11 bankruptcy proceedings do not include our international subsidiaries, which are 100% owned by our domestic subsidiary Swift Energy International, Inc. Debtor-In-Possession. The Company and the Chapter 11 Subsidiaries are currently operating our business as debtors in possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has granted all motions filed by the Company and the Chapter 11 Subsidiaries that were designed primarily to minimize the impact of the Chapter 11 proceedings on the Company’s operations, customers and employees. As a result, the Company is not only able to conduct normal business activities and pay all associated obligations for the period following its bankruptcy filing, it is also authorized to pay and has paid (subject to caps applicable to payments of certain pre-petition obligations) pre-petition employee wages and benefits, pre-petition amounts owed to certain lienholders and critical vendors, pre-petition amounts owed to pipeline owners that transport the Company's production, and funds belonging to third parties, including royalty holders and partners. During the pendency of the Chapter 11 case, all transactions outside the ordinary course of our business require the prior approval of the Bankruptcy Court. Automatic Stay. Subject to certain specific exceptions under the Bankruptcy Code, the Chapter 11 filings automatically stayed most judicial or administrative actions against the Company and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. As a result, for example, most creditor actions to obtain possession of property from the Company or any of the Chapter 11 Subsidiaries, or to create, perfect or enforce any lien against the property of the Company or any of the Chapter 11 Subsidiaries, or to collect on or otherwise exercise rights or remedies with respect to a pre-petition claim are stayed. Restructuring Support Agreement. Immediately prior to the Chapter 11 filings, a majority of the holders of the Company’s senior notes agreed, pursuant to a restructuring support agreement (the “RSA”), to support a plan under which all of the Company’s senior notes are converted to equity. Under the RSA, holders of the senior notes, and certain unsecured creditors and lenders under the DIP Credit Agreement (see below “Debtor-in-Possession Financing”) are to receive ninety-six percent ( 96% ) of the reorganized company's common stock in exchange for the senior notes, and the existing equity holders are entitled to receive the remaining four percent ( 4% ) of the reorganized company's common stock on a fully diluted basis, subject only to dilution as a result of a proposed new management incentive program. Existing equity holders are also entitled to receive warrants for up to 30% of the reorganized company's equity. Under the RSA, Dean Swick, Managing Director at Alvarez & Marsal North America, LLC, has been appointed to act as Chief Restructuring Officer during the reorganization process. The RSA includes an agreed timeline for the Chapter 11 proceedings that, if met, would result in the Company emerging from bankruptcy within 110 days of the date the Chapter 11 cases were filed. Plan of Reorganization . On February 5, 2016, the Company and the Chapter 11 Subsidiaries filed with the Bankruptcy Court a joint plan of reorganization (the “Plan”), which is supported by an ad hoc committee of the Company’s noteholders, and a related disclosure statement. The Plan is subject to approval by the Bankruptcy Court. The Bankruptcy Court has approved the Company’s disclosure statement with respect to the Plan, and the Company is in the process of soliciting votes with respect to the Plan. A confirmation hearing on the Plan is scheduled on March 30, 2016 in the Bankruptcy Court. If the Plan is ultimately approved by the Bankruptcy Court, the Company and the Chapter 11 Subsidiaries would exit bankruptcy pursuant to the terms of the Plan. Under the Plan, the claims against and interests in the Company and the Chapter 11 Subsidiaries are grouped into classes based, in part, on their respective priority. The Plan provides that, upon emergence from bankruptcy: • the approximately $ 906 million of indebtedness outstanding on account of the Company’s senior notes and certain other unsecured claims will be exchanged for 88.5% of the post-emergence Company’s common stock; • the lenders under the DIP Credit Agreement (as more fully described below under “Debtor-In-Possession Financing”) will receive a backstop fee consisting of 7.5% of the post-emergence Company’s common stock; • the Company’s current common stock will be canceled and the current shareholders will be entitled to receive the remaining 4% of the post-emergence Company’s common stock and certain warrants; and • claims of other creditors will be paid in full in cash, reinstated or otherwise treated in a manner acceptable to the creditors. The Plan also provides that the post-emergence Company’s new board of directors will be made up of seven directors consisting of the Chief Executive Officer of the post-emergence Company, two directors appointed by Strategic Value Partners LLC, a current holder of the Company’s senior notes, two directors appointed by other current holders of the Company’s senior notes, and two independent directors (one of whom will be the new Chairman of the Board). The Plan is subject to acceptance by certain holders of claims against the Company and the Chapter 11 Subsidiaries and confirmation by the Bankruptcy Court. The Plan is deemed accepted by a class of claims entitled to vote if at least one-half in number and two-thirds in dollar amount of claims actually voting in the class has voted to accept the Plan. Under certain circumstances set forth in the Bankruptcy Code, the Bankruptcy Court may confirm a plan even if such plan has not been accepted by all impaired classes of claims and equity interests. In particular, a plan may be compelled on a rejecting class if the proponent of the plan demonstrates that (1) no class junior to the rejecting class is receiving or retaining property under the plan and (2) no class of claims or interests senior to the rejecting class is being paid more than in full. Executory Contracts. Subject to certain exceptions, under the Bankruptcy Code, the Company and the Chapter 11 Subsidiaries may assume, assign, or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. The rejection of an executory contract or unexpired lease is generally treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Company and the Chapter 11 Subsidiaries of performing their future obligations under such executory contract or unexpired lease but may give rise to a pre-petition general unsecured claim for damages caused by such deemed breach. Counterparties to rejected contracts or leases may assert claims against the Company or any of the Chapter 11 Subsidiaries, as applicable, for such damages. The assumption of an executory contract or unexpired lease generally requires the Company and the Chapter 11 Subsidiaries to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Any description of the treatment of an executory contract or unexpired lease with the Company or any of the Chapter 11 Subsidiaries, including any description of the obligations under any such executory contract or unexpired lease of the Company or any of the Chapter 11 Subsidiaries, is qualified by and subject to any rights we have with respect to executory contacts and unexpired leases under the Bankruptcy Code. Potential Claims. The Company and the Chapter 11 Subsidiaries have filed with the Bankruptcy Court Schedules and Statements setting forth, among other things, the assets and liabilities of the Company and each of the Chapter 11 Subsidiaries, subject to the assumptions filed in connection therewith. The Schedules and Statements may be subject to further amendment or modification after filing. Certain holders of pre-petition claims are required to file proofs of claim by the Bar Date. Differences between amounts scheduled by the Company and the Chapter 11 Subsidiaries and claims by creditors will be investigated and resolved in connection with the claims resolution process. In light of the expected number of creditors, the claims resolution process may take considerable time to complete and will likely continue after our emergence from bankruptcy. Accordingly, the ultimate number and amount of allowed claims is not presently known, nor can the ultimate recovery with respect to allowed claims be presently ascertained. Chapter 11 Filing Impact on Creditors and Stockholders. Under the priority requirements established by the Bankruptcy Code, unless creditors agree otherwise, pre-petition liabilities to creditors and post-petition liabilities must be satisfied in full before the holders of our existing common stock are entitled to receive any distribution or retain any property under a plan of reorganization. The ultimate recovery to creditors and/or stockholders, if any, will not be determined until confirmation and implementation of a plan or plans of reorganization. The outcome of the Chapter 11 case remains uncertain at this time and, as a result, we cannot accurately estimate the amounts or value of distributions that creditors and stockholders may receive. It is possible that stockholders will receive no distribution on account of their interests. Debtor-In-Possession Financing. In connection with the pre-petition negotiations of the RSA, certain holders of the Company’s senior notes agreed to provide the Company and the Chapter 11 Subsidiaries a debtor in possession facility (the “DIP Facility”) pursuant to the terms of a Debtor-in-Possession (“DIP”) Credit Agreement. The DIP Facility has been approved by the Bankruptcy Court. The DIP Credit Agreement provides for a multi-draw term loan in the aggregate amount of up to $75.0 million , of which the Company has $30.0 million currently available. The remaining $45 million under the DIP Facility will become available to the Company, upon the satisfaction of certain contingencies, including our ability to amend and restate or refinance the indebtedness under the Company’s current first lien credit facility and obtain exit financing. Pursuant to the Plan, the DIP Facility will be either paid in full in cash or, at the option of the lenders under the DIP Credit Agreement, converted, in full or in part, into the post-emergence Company’s common stock, which common stock will only come from the 88.5% of the common stock to be distributed to the current holders of the senior notes and certain unsecured creditors. For more information refer to Note 4 of these consolidated financial statements. Creditors Committee. On January 14, 2016, the United States Trustee for the District of Delaware appointed pursuant to section 1102 of the Bankruptcy Code, the Official Committee of Unsecured Creditors (the "Creditors' Committee"). There can be no assurance that the Creditors' Committee and its legal representatives will support the Company’s and the Chapter 11 Subsidiaries’ positions on matters presented to the Bankruptcy Court, including the Plan. Disagreements between the Company and the Chapter 11 Subsidiaries and the Creditors' Committee could protract the Chapter 11 proceedings and delay the Company’s and the Chapter 11 Subsidiaries’ emergence from the Chapter 11 proceedings. Financial Statement Classification of Liabilities Subject to Compromise . Our financial statements include amounts classified as Liabilities Subject to Compromise (see “Liabilities Subject to Compromise” below), which represent liabilities that we anticipate will be allowed as claims in our bankruptcy case. These amounts include amounts related to the anticipated rejection of various executory contracts and unexpired leases. Additional amounts may be included in Liabilities Subject to Compromise in future periods if additional executory contracts and unexpired leases are rejected. Conversely, to the extent that such executory contracts or unexpired leases are not rejected and are instead assumed, certain liabilities characterized as subject to compromise may be converted to post-petition liabilities. Because the uncertain nature of many of the potential claims has not been determined at this time, the magnitude of such claims is not reasonably estimable at this time. Such claims may be material. Reorganization Expenses. The Company and the Chapter 11 Subsidiaries have incurred and will continue to incur significant costs associated with the reorganization, principally professional fees. The amount of these costs, which are being expensed as incurred, are expected to significantly affect our results of operations. In accordance with ASC 852, we have recorded certain costs associated with the bankruptcy proceedings as Reorganization Items within our Consolidated Statement of Operations. For additional information, see “Reorganization Items” below. Restrictions on Trading of Our Equity Securities to Protect Our Use of Net Operating Losses. The Bankruptcy Court has issued a final order pursuant to Sections 105(a), 362(a)(3) and 541 of the Bankruptcy Code enabling the Company and the Chapter 11 Subsidiaries to avoid limitations on the use of their tax net operating loss carryforwards and certain other tax attributes by imposing certain notice procedures and transfer restrictions on the trading of our equity securities. In general, the order applies to any person that, directly or indirectly, beneficially owns (or would beneficially own as a result of a proposed transfer) at least 4.99% of our outstanding equity securities (a “Substantial Stockholder”), and requires that each Substantial Stockholder files with the Bankruptcy Court and serves us with notice of such status. Under the order, prior to any proposed acquisition or disposition of equity securities that would result in an increase or decrease in the amount of our equity securities owned by a Substantial Stockholder, or that would result in a person or entity becoming a Substantial Stockholder, such person is required to file with the Bankruptcy Court and notify the Company of such acquisition or disposition. We have the right to seek an injunction from the Bankruptcy Court to prevent certain acquisitions or sales of our common stock if the acquisition or sale would pose a material risk of adversely affecting our ability to utilize such tax attributes. Risks Associated with Chapter 11 Proceedings . For the duration of our Chapter 11 proceedings, our operations and our ability to develop and execute our business plan are subject to the risks and uncertainties associated with the Chapter 11 process as described in Item 1A, “Risk Factors”. Because of these risks and uncertainties, the description of our operations, properties and capital plans may not accurately reflect our operations, properties and capital plans following the Chapter 11 process. Liabilities Subject to Compromise. Liabilities Subject to Compromise refers to pre-petition obligations that may be impacted by the Chapter 11 reorganization process. The amounts represent our current estimate of known or potential obligations to be resolved in connection with our Chapter 11 proceedings. Differences between liabilities we have estimated and the claims filed, or to be filed, will be investigated and resolved in connection with the claims resolution process. We will continue to evaluate these liabilities throughout the Chapter 11 process and adjust amounts as necessary. Such adjustments may be material. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation . The accompanying consolidated financial statements include the accounts of Swift Energy and its wholly owned subsidiaries, which are engaged in the exploration, development, acquisition, and operation of oil and gas properties, with a focus on inland waters and onshore oil and natural gas reserves in Louisiana and Texas. Our undivided interests in oil and gas properties are accounted for using the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. Intercompany balances and transactions have been eliminated in preparing the accompanying consolidated financial statements. |
Subsequent Events | Subsequent Events. We have evaluated subsequent events of our consolidated financial statements. In February of 2016 the Bankruptcy Court approved a purchase and sale agreement with Texegy to sell a portion of the Company's acreage position in the South Bearhead Creek and Burr Ferry fields. The agreement provides that closing must take place on or prior to March 15, 2016 or a later date agreed to by both parties. For additional discussion regarding the terms of this agreement refer to Note 9 of these consolidated financial statements. Additionally, in 2016 the bankruptcy proceedings have progressed as discussed in Note 1A. There were no other material subsequent events requiring additional disclosure in these financial statements. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the reported amounts of certain revenues and expenses during each reporting period. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these financial statements include: • the estimated quantities of proved oil and natural gas reserves used to compute depletion of oil and natural gas properties, the related present value of estimated future net cash flows there-from, and the ceiling test impairment calculation, • estimates related to the collectability of accounts receivable and the credit worthiness of our customers, • estimates of the counterparty bank risk related to letters of credit that our customers may have issued on our behalf, • estimates of future costs to develop and produce reserves, • accruals related to oil and gas sales, capital expenditures and lease operating expenses, • estimates of insurance recoveries related to property damage, and the solvency of insurance providers, • estimates in the calculation of share-based compensation expense, • estimates of our ownership in properties prior to final division of interest determination, • the estimated future cost and timing of asset retirement obligations, • estimates made in our income tax calculations, • estimates of the liabilities subject to compromise versus not subject to compromise • estimates in the calculation of the fair value of hedging assets and liabilities, and • estimates in the assessment of current litigation claims against the Company. While we are not aware of any material revisions to any of our estimates, there will likely be future revisions to our estimates resulting from matters such as new accounting pronouncements, changes in ownership interests, payouts, joint venture audits, re-allocations by purchasers or pipelines, or other corrections and adjustments common in the oil and gas industry, many of which require retroactive application. These types of adjustments cannot be currently estimated and will be recorded in the period during which the adjustments occur. |
Property and Equipment | Property and Equipment. We follow the “full-cost” method of accounting for oil and natural gas property and equipment costs. Under this method of accounting, all productive and nonproductive costs incurred in the exploration, development, and acquisition of oil and natural gas reserves are capitalized. Such costs may be incurred both prior to and after the acquisition of a property and include lease acquisitions, geological and geophysical services, drilling, completion, and equipment. Internal costs incurred that are directly identified with exploration, development, and acquisition activities undertaken by us for our own account, and which are not related to production, general corporate overhead, or similar activities, are also capitalized. For the years ended December 31, 2015, 2014 and 2013 , such internal costs capitalized totaled $12.7 million , $26.3 million and $31.8 million , respectively. Interest costs are also capitalized to unproved oil and natural gas properties (refer to Note 4 of these consolidated financial statements for further discussion on capitalized interest costs). The “Property and Equipment” balances on the accompanying consolidated balance sheets are summarized for presentation purposes. The following is a detailed breakout of our “Property and Equipment” balances. (in thousands) December 31, December 31, Property and Equipment Proved oil and gas properties $ 5,972,666 $ 5,826,995 Unproved oil and gas properties 18,839 64,903 Furniture, fixtures, and other equipment 44,252 42,257 Less – Accumulated depreciation, depletion, and amortization (5,577,854 ) (3,839,118 ) Property and Equipment, Net $ 457,903 $ 2,095,037 No gains or losses are recognized upon the sale or disposition of oil and natural gas properties, except in transactions involving a significant amount of reserves or where the proceeds from the sale of oil and natural gas properties would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a cost center. Internal costs associated with selling properties are expensed as incurred. Future development costs are estimated on a property-by-property basis based on current economic conditions and are amortized to expense as our capitalized oil and gas property costs are amortized. We compute the provision for depreciation, depletion, and amortization (“DD&A”) of oil and natural gas properties using the unit-of-production method. Under this method, we compute the provision by multiplying the total unamortized costs of oil and gas properties—including future development costs, gas processing facilities, and both capitalized asset retirement obligations and undiscounted abandonment costs of wells to be drilled, net of salvage values, but excluding costs of unproved properties—by an overall rate determined by dividing the physical units of oil and natural gas produced (which excludes natural gas consumed in operations) during the period by the total estimated units of proved oil and natural gas reserves (which excludes natural gas consumed in operations) at the beginning of the period. This calculation is done on a country-by-country basis and the period over which we will amortize these properties is dependent on our production from these properties in future years. Furniture, fixtures, and other equipment are recorded at cost and are depreciated by the straight-line method at rates based on the estimated useful lives of the property, which range between two and 20 years. Repairs and maintenance are charged to expense as incurred. Geological and geophysical (“G&G”) costs incurred on developed properties are recorded in “Proved properties” and therefore subject to amortization. G&G costs incurred that are directly associated with specific unproved properties are capitalized in “Unproved properties” and evaluated as part of the total capitalized costs associated with a prospect. The cost of unproved properties not being amortized is assessed quarterly, on a property-by-property basis, to determine whether such properties have been impaired. In determining whether such costs should be impaired, we evaluate current drilling results, lease expiration dates, current oil and gas industry conditions, international economic conditions, capital availability, and available geological and geophysical information. Any impairment assessed is added to the cost of proved properties being amortized. Due to the bankruptcy proceedings the Company adjusted all unevaluated properties to fair market value. |
Full-Cost Ceiling Test | Full-Cost Ceiling Test . At the end of each quarterly reporting period, the unamortized cost of oil and natural gas properties (including natural gas processing facilities, capitalized asset retirement obligations, net of related salvage values and deferred income taxes, and excluding the recognized asset retirement obligation liability) is limited to the sum of the estimated future net revenues from proved properties (excluding cash outflows from recognized asset retirement obligations, including future development and abandonment costs of wells to be drilled, using the preceding 12-months’ average price based on closing prices on the first day of each month, adjusted for price differentials, discounted at 10% , and the lower of cost or fair value of unproved properties) adjusted for related income tax effects (“Ceiling Test”). The calculations of the Ceiling Test and provision for DD&A are based on estimates of proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production, timing, and plan of development. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimates. Accordingly, reserves estimates are often different from the quantities of oil and natural gas that are ultimately recovered. Principally due to the effects of pricing, and also due to the timing of projects and changes in our reserves product mix, in 2015 and 2014 we reported a non-cash impairment write-down on a before-tax basis, of $1.6 billion and $445.4 million , respectively, on our oil and natural gas properties. The bankruptcy filing also directly contributed to the 2015 write-down as we were required to exclude most of our proved undeveloped reserves due to the uncertainties surrounding the availability of the financing that would be available to develop our proved undeveloped reserves. If future capital expenditures out pace future discounted net cash flows in our reserve calculations, if we have significant declines in our oil and natural gas reserves volumes (which also reduces our estimate of discounted future net cash flows from proved oil and natural gas reserves) if oil or natural gas prices decline, or remain at levels prevalent in the current period, it is likely that non-cash write-downs of our oil and natural gas properties will occur in the future. We cannot control and cannot predict what future prices for oil and natural gas will be, thus we cannot estimate the amount or timing of any potential future non-cash write-down of our oil and natural gas properties due to decreases in oil or natural gas prices. However, due to current trends in commodity pricing it is likely that we will record additional ceiling test write-downs in future periods. |
Revenue Recognition | Revenue Recognition . Oil and gas revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectability of the revenue is probable. Swift Energy uses the entitlement method of accounting in which we recognize our ownership interest in production as revenue. If our sales exceed our ownership share of production, the natural gas balancing payables are reported in “Accounts payable and accrued liabilities” on the accompanying consolidated balance sheets. Natural gas balancing receivables are reported in “Other current assets” on the accompanying consolidated balance sheets when our ownership share of production exceeds sales. As of December 31, 2015 and 2014 , we did not have any material natural gas imbalances. |
Accounts Receivable | Accounts Receivable. We assess the collectability of accounts receivable, and based on our judgment, we accrue a reserve when we believe a receivable may not be collected. At December 31, 2015 and 2014 , we had an allowance for doubtful accounts of approximately $0.1 million , respectively. The allowance for doubtful accounts has been deducted from the total “Accounts receivable” balance on the accompanying consolidated balance sheets. At December 31, 2015 , our “Accounts receivable” balance included $14.9 million for oil and gas sales, $4.9 million for joint interest owners, $1.2 million for severance tax credit receivables and $0.7 million for other receivables. At December 31, 2014 , our “Accounts receivable” balance included $34.8 million for oil and gas sales, $8.4 million for joint interest owners, $3.1 million for severance tax credit receivables and $2.2 million for other receivables. |
Supervision Fees | Supervision Fees. Consistent with industry practice, we charge a supervision fee to the wells we operate including our wells in which we own up to a 100% working interest. Supervision fees are recorded as a reduction to “General and administrative, net”, on the accompanying consolidated statements of operations. Our supervision fees are allocated to each well based on general and administrative costs incurred for well maintenance and support. |
Inventories | Other Current Assets. Included in "Other current assets" on the accompanying consolidated balance sheets are inventories which consist primarily of tubulars and other equipment and supplies that we expect to place in service in production operations. Our inventories are recorded at cost (weighted average method) |
Income Taxes | Income Taxes. Under guidance contained in FASB ASC 740-10, deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities, given the provisions of the enacted tax laws. We follow the recognition and disclosure provisions under guidance contained in FASB ASC 740-10-25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our policy is to record interest and penalties relating to uncertain tax positions in income tax expense. At December 31, 2015 , we did not have any accrued liability for uncertain tax positions and do not anticipate recognition of any significant liabilities for uncertain tax positions during the next 12 months. Our U.S. Federal income tax returns for 2007 forward, our Louisiana income tax returns from 2000 forward and our Texas franchise tax returns after 2010 remain subject to examination by the taxing authorities. There are no material unresolved items related to periods previously audited by these taxing authorities. No other jurisdiction returns are significant to our financial position. For the year ended December 31, 2015 , the tax benefit for the book loss was mostly offset with an increase in our valuation allowance against our deferred tax assets. |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities . The “Accounts payable and accrued liabilities” balances on the accompanying consolidated balance sheets are summarized below (in thousands): December 31, December 31, Trade accounts payable (1)(2) $ — $ 31,153 Accrued operating expenses (2) — 10,784 Accrued payroll costs (2) — 8,100 Asset retirement obligations – current portion 7,165 10,709 Accrued taxes (2) — 2,957 Other payables (2)(3) 498 4,541 Total Accounts payable and accrued liabilities $ 7,663 $ 68,244 (1) Included in “trade accounts payable” are liabilities of approximately $13.7 million at December 31, 2014 for outstanding checks. (2) Classified as Liabilities Subject to Compromise as of December 31, 2015. (3) Total balance at December 31, 2015 was $5.3 million of which $4.8 million was classified as Liabilities Subject to Compromise with the remaining portion classified as "Other payables". |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid instruments with an initial maturity of three months or less to be cash equivalents. |
Credit Risk Due To Certain Concentrations | Credit Risk Due to Certain Concentrations. We extend credit, primarily in the form of uncollateralized oil and gas sales and joint interest owners' receivables, to various companies in the oil and gas industry, which results in a concentration of credit risk. The concentration of credit risk may be affected by changes in economic or other conditions within our industry and may accordingly impact our overall credit risk. However, we believe that the risk of these unsecured receivables is mitigated by the size, reputation, and nature of the companies to which we extend credit. From certain customers we also obtain letters of credit or parent company guarantees, if applicable, to reduce risk of loss. |
Restricted Cash | Short-Term Restricted Cash (Saka Energi Transaction). On July 15, 2014, we closed our transaction with PT Saka Energi Indonesia ("Saka Energi") to fully develop 8,300 acres of Fasken area Eagle Ford shale properties owned by Swift Energy in Webb County, Texas. Swift Energy sold a 36% full participating interest in the Fasken properties to Saka Energi. Subject to the terms of the transaction, Swift Energy and Saka Energi were required to deposit cash on a monthly basis into a separate Swift Energy-owned bank account to fund their respective portions of the on-going Fasken development program for the following month. During the third quarter of 2014, cash deposited in the account was contractually restricted for use in the Fasken development program and therefore was recorded as restricted cash until the Company had performed the related development activities. The cash changes from the account during the third quarter of 2014 relating to Saka Energi’s contributions were shown in the operating activities section of the accompanying consolidated statements of cash flows. The cash changes from the account during the third quarter of 2014 relating to Swift Energy’s contributions were reported in the investing activities section on the accompanying consolidated statements of cash flows. Long-term Restricted Cash. Long-term restricted cash includes amounts held in escrow accounts to satisfy plugging and abandonment obligations. As of December 31, 2015 and 2014 , these assets were approximately $1.0 million . These amounts are restricted as to their current use, and will be released when we have satisfied all plugging and abandonment obligations in certain fields. These restricted cash balances are reported in “Other Long-Term Assets” on the accompanying consolidated balance sheets. |
Treasury Stock | Treasury Stock. Our treasury stock repurchases are reported at cost and are included “Treasury stock held, at cost" on the accompanying consolidated balance sheets. When the Company reissues treasury stock the gains are recorded in "Additional paid-in capital" ("APIC") on the accompanying consolidated balance sheets, while the losses are recorded to APIC to the extent that previous net gains on the reissuance of treasury stock are available to offset the losses. If the loss is larger than the previous gains available then the loss is recorded to "Retained earnings (Accumulated deficit)" on the accompanying consolidated balance sheets. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, providing a comprehensive revenue recognition standard for contracts with customers that supersedes current revenue recognition guidance. The guidance requires entities to recognize revenue using the following five-step model: identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue as the entity satisfies each performance obligation. Adoption of this standard could result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. We have not completed our review of these new requirements to determine the impact of the guidance on our financial statements. In April 2015, the FASB issued ASU 2015-03, providing guidance on the presentation of debt issuance costs. The guidance requires debt issuance costs to be presented on the balance sheet as a reduction of the carrying amount of the related debt liability. This guidance is effective for fiscal years beginning after December 15, 2015 and for interim periods within those fiscal years, with early adoption permitted and retrospective application required. This guidance, which we plan to adopt beginning with the first quarter of 2016, is not expected to have a material impact on our financial statements. In July 2015, the FASB issued ASU 2015-11, which changes the measurement principle for inventory from the lower of cost or market to “lower of cost and net realizable value.” The standard simplifies the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable value). Net realizable value is defined as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, and must be applied prospectively after the date of adoption. We have not completed our review of this new requirement to determine the impact of this guidance on our financial statements. In November 15, the FASB issued ASU 2015-17, which requires companies to classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods thereafter, with early adoption permitted and either with prospective or retrospective application permitted. We do not expect this new guidance to have a material impact on our financial statements. |
Earnings Per Share Earning Per
Earnings Per Share Earning Per Share (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share in accordance with FASB ASC 260-10. Basic earnings per share (“Basic EPS”) has been computed using the weighted average number of common shares outstanding during each period. Diluted earnings per share ("Diluted EPS") assumes, as of the beginning of the period, exercise of stock options and restricted stock grants using the treasury stock method. Diluted EPS also assumes conversion of performance-based restricted stock units to common shares based on the number of shares (if any) that would be issuable, according to predetermined performance and market goals, if the end of the reporting period was the end of the performance period. As we recognized a net loss for the years ended December 31, 2015, 2014 and 2013 , the unvested share-based payments and stock options were not recognized in diluted earnings per share (“Diluted EPS”) calculations as they would be antidilutive. |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Issuance Costs | Debt Issuance Costs . Legal fees, accounting fees, underwriting fees, printing costs, and other direct expenses associated with extensions of our senior notes were originally capitalized and then amortized on an effective interest basis over the life of each of the respective senior note offerings. |
Price-Risk Management Price-R25
Price-Risk Management Price-Risk Management (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Price-Risk Management Activities, Policy | Price-Risk Management Activities The Company follows FASB ASC 815-10, which requires that changes in the derivative’s fair value are recognized in earnings. The changes in the fair value of our derivatives are recognized in "Price-risk management and other, net” on the accompanying consolidated statements of operations. We have a price-risk management policy to use derivative instruments to protect against declines in oil and natural gas prices, mainly through the purchase of price swaps, floors, calls, collars and participating collars. |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rental and lease expenses were $16.8 million , $21.0 million and $20.5 million for the years ended December 31, 2015, 2014 and 2013 , respectively. The rental and lease expenses primarily relate to compressor rentals during the year and the lease of our office space in Houston, Texas. During 2015 the Company entered into a new eleven year lease agreement for office space in Houston, Texas. The operating lease commenced on March 1, 2015 and may be terminated after seven years. The operating lease may be subject to reinstatement, renegotiation or amendment, or rejection in connection with our Chapter 11 proceedings. As of December 31, 2015 , the minimum contractual obligations were approximately $23 million in the aggregate. Our policy is to amortize the total payments under the lease agreement on a straight-line basis over the term of the lease. Any reinstatement, renegotiation, amendment or rejection of this agreement in the bankruptcy proceedings could have a material impact on the timing and magnitude of amounts recognized within our financial statements in future periods. Our minimum annual obligations under non-cancelable operating lease commitments were $4.1 million for 2016, $3.3 million for 2017, $3.7 million for 2018 , $3.9 million for 2019 , $5.5 million for 2020 and approximately $24.1 million in the aggregate. The minimum annual obligations under non-cancelable operating lease commitments primarily relate to office space for the Houston office. Our employment agreement liabilities for certain named executive officers are recorded in "Liabilities subject to compromise" on the balance sheet at December 31, 2015, and are recorded in "Other long-term liabilities" on the balance sheet at December 31, 2014. Our remaining gas transportation and processing minimum obligations were $14.5 million for 2016 , $17.7 million for 2017 , $17.2 million for 2018 , $16.9 million for 2019 , $14.3 million for 2020 and $80.7 million in the aggregate. In the ordinary course of business, we are party to various legal actions, which arise primarily from our activities as operator of oil and natural gas wells. Most of our pending legal proceedings have been stayed by virtue of our voluntary petition filed on December 31, 2015 seeking relief under Chapter 11 of the Bankruptcy Code. In management's opinion, the outcome of any such currently pending legal actions will not have a material adverse effect on our financial position or results of operations. |
Share-Based Compensation Shar27
Share-Based Compensation Share-Based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Share-based Compensation | Share-Based Compensation Plans We have multiple share-based compensation plans with outstanding awards including the 2005 Stock Compensation Plan, most recently amended by our Board of Directors in May 2013, which was approved by shareholders at the 2005 annual meeting of shareholders; the 2001 Omnibus Stock Compensation Plan, which was adopted by our Board of Directors in February 2001 and was approved by shareholders at the 2001 annual meeting of shareholders; the 1990 Non-Qualified Stock Option Plan solely for our independent directors. No further grants will be made under the 2001 Omnibus Stock Compensation Plan or the 1990 Non-Qualified Stock Option Plan, both of which were replaced by the 2005 Stock Compensation Plan, and no awards remain outstanding under these plans as of December 31, 2015 . In addition, we have an employee stock purchase plan and also had an employee stock ownership plan prior to its termination during 2015. We follow guidance contained in FASB ASC 718 to account for share-based compensation. Under the 2005 plan, stock option awards and other equity based awards may be granted to employees, directors, and consultants, with directors only eligible to receive restricted awards. Under the 2001 plan, stock option awards and other equity based awards were granted to employees. Under the 1990 non-qualified plan, non-employee members of our Board of Directors were automatically granted stock option awards to purchase shares of common stock on a formula basis. All three plans provide that the exercise prices for stock option awards equal 100% of the fair value of the common stock on the date of grant. Restricted stock grants become vested over a three year period, and stock option awards become exercisable in various terms ranging from one year to five years. Stock option awards granted typically expire ten years after the date of grant or earlier in the event of the optionee's separation from employment. At the time the stock option awards are exercised, the cash received is credited to common stock and additional paid-in capital. The 2005 plan allows for the use of a “stock swap” in lieu of a cash exercise for stock option awards, under certain circumstances. The delivery of Swift Energy common stock, held by the optionee for a minimum of six months, which are considered mature shares, with a fair market value equal to the required purchase price of the shares to which the exercise relates, constitutes a valid “stock swap.” Stock option awards issued under a “stock swap” also previously included a reload feature that was discontinued during 2012. There were no mature shares that were delivered in “stock swap” transactions during 2015 or 2014 while there were 10,752 such shared delivered for the year ended December 31, 2013 . The employee stock purchase plan, which began in 1993, provides eligible employees the opportunity to acquire shares of Swift Energy common stock at a discount through payroll deductions. To date, employees have been allowed to authorize payroll deductions of up to 10% of their base salary, within IRS limitations and plan rules, during the plan year by making an election to participate prior to the start of a plan year. The purchase price for stock acquired under the plan is 85% of the lower of the closing price of our common stock at the beginning or end of the plan year. Under this plan for the last three years, we have issued 87,629 shares at a price of $3.44 in 2015 , 71,825 shares at a price of $11.47 in 2014 and 72,273 shares at a price of $13.08 in 2013 . There were no contributions for the year ended December 31, 2015 while contributions for the years ended December 31, 2014 and 2013 were all made in common stock. As of December 31, 2015 , 318,027 shares remained available for issuance under this plan. We receive a tax deduction for certain stock option exercises during the period the stock option awards are exercised, generally for the excess of the market value on the exercise date over the exercise price of the stock option awards. We receive an additional tax deduction when restricted stock awards vest at a higher value than the value used to recognize compensation expense at the date of grant. We are required to report excess tax benefits from the award of equity instruments as financing cash flows. We recognized an excess tax shortfall for the years ended December 31, 2015 and 2014 , as referenced in Note 3 of these consolidated financial statements. We did not recognize any material excess tax benefit or shortfall in earnings for the year ended December 31, 2013 . |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value Measurements FASB ASC 820-10 defines fair value, establishes guidelines for measuring fair value and expands disclosure about fair value measurements. It does not create or modify any current GAAP requirements to apply fair value accounting. However, it provides a single definition for fair value that is to be applied consistently for all prior accounting pronouncements. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, bank borrowings, and senior notes. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the highly liquid or short-term nature of these instruments. |
Asset Retirement Obligations 29
Asset Retirement Obligations Asset Retirement Obligations (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations, Policy | Asset Retirement Obligations We record these obligations in accordance with the guidance contained in FASB ASC 410-20. This guidance requires entities to record the fair value of a liability for legal obligations associated with the retirement obligations of tangible long-lived assets in the period in which it is incurred. When the liability is initially recorded, the carrying amount of the related long-lived asset is increased. The liability is discounted from the expected date of abandonment. Over time, accretion of the liability is recognized each period, and the capitalized cost is depreciated on a unit-of-production basis as part of depreciation, depletion, and amortization expense for our oil and gas properties. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement which is included in the “Property and Equipment” balance on our accompanying consolidated balance sheets. This guidance requires us to record a liability for the fair value of our dismantlement and abandonment costs, excluding salvage values. |
Chapter 11 Proceedings Chapte30
Chapter 11 Proceedings Chapter 11 Proceedings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reorganizations [Abstract] | |
Schedule of Liabilities Subject to Compromise | The following table summarizes the components of liabilities subject to compromise included on our Consolidated Balance Sheet as of December 31, 2015 (in thousands): December 31, 2015 Accounts payable and accrued liabilities 55,587 Accrued capital costs 7,225 Undistributed oil and gas revenues 11,989 Senior notes and accrued interest 905,629 Other long-term liabilities 3,958 Liabilities Subject to Compromise 984,388 |
Schedule of Reorganization Items | The following table summarizes the components included in Reorganization items in our Consolidated Statements of Operations for the year ended December 31, 2015 (in thousands): December 31, 2015 Non-cash expense for write-off of debt issuance costs on senior notes 8,662 Non-cash expense for write-off of debt discount on senior notes due 2020 1,864 Non-cash gain for write-off of debt premium on senior notes due 2022 (3,961 ) Reorganization Items 6,565 |
Summary of Signigicant Accounti
Summary of Signigicant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment | The following is a detailed breakout of our “Property and Equipment” balances. (in thousands) December 31, December 31, Property and Equipment Proved oil and gas properties $ 5,972,666 $ 5,826,995 Unproved oil and gas properties 18,839 64,903 Furniture, fixtures, and other equipment 44,252 42,257 Less – Accumulated depreciation, depletion, and amortization (5,577,854 ) (3,839,118 ) Property and Equipment, Net $ 457,903 $ 2,095,037 |
Accounts Payable and Accrued Liabilities | The “Accounts payable and accrued liabilities” balances on the accompanying consolidated balance sheets are summarized below (in thousands): December 31, December 31, Trade accounts payable (1)(2) $ — $ 31,153 Accrued operating expenses (2) — 10,784 Accrued payroll costs (2) — 8,100 Asset retirement obligations – current portion 7,165 10,709 Accrued taxes (2) — 2,957 Other payables (2)(3) 498 4,541 Total Accounts payable and accrued liabilities $ 7,663 $ 68,244 (1) Included in “trade accounts payable” are liabilities of approximately $13.7 million at December 31, 2014 for outstanding checks. (2) Classified as Liabilities Subject to Compromise as of December 31, 2015. (3) Total balance at December 31, 2015 was $5.3 million of which $4.8 million was classified as Liabilities Subject to Compromise with the remaining portion classified as "Other payables". |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators used in the calculation of Basic and Diluted EPS | The following is a reconciliation of the numerators and denominators used in the calculation of Basic and Diluted EPS for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share amounts): 2015 2014 2013 Net Income (Loss) Shares Per Share Net Income (Loss) Shares Per Share Net Income (Loss) Shares Per Share Basic EPS: Net Income (Loss) and Share Amounts $ (1,653,971 ) 44,463 $ (37.20 ) $ (283,427 ) 43,795 $ (6.47 ) $ (2,442 ) 43,331 $ (0.06 ) Dilutive Securities: Stock Options — — — Restricted Stock Awards — — — Diluted EPS: Net Income (Loss) and Assumed Share Conversions $ (1,653,971 ) 44,463 $ (37.20 ) $ (283,427 ) 43,795 $ (6.47 ) $ (2,442 ) 43,331 $ (0.06 ) |
Provision (Benefit) for Incom33
Provision (Benefit) for Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of income (Loss) from continuing operations before taxes | Income (Loss) before taxes is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Income (Loss) Before Income Taxes $ (1,734,514 ) $ (433,470 ) $ 198 |
Summary of consolidated income tax provision (benefit) | The following is an analysis of the consolidated income tax provision (benefit) (in thousands): Year Ended December 31, 2015 2014 2013 Current $ (410 ) $ 314 $ (12 ) Deferred (80,133 ) (150,357 ) 2,652 Total $ (80,543 ) $ (150,043 ) $ 2,640 |
Reconciliations of income taxes computed using the U.S. Federal statutory rate to the effective income tax rates | Reconciliations of income taxes computed using the U.S. Federal statutory rate ( 35% ) to the effective income tax rates are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Income taxes (benefit) computed at U.S. statutory rate $ (607,080 ) $ (151,714 ) $ 69 State tax provisions (benefits), net of federal benefits (18,064 ) (5,935 ) (184 ) Non-deductible equity compensation 252 666 1,127 Stock-based compensation tax shortfall 1,703 2,409 558 Valuation allowances 542,289 4,635 385 Expiration of carryover items 333 288 400 Other, net 24 (392 ) 285 Provision (benefit) for income taxes $ (80,543 ) $ (150,043 ) $ 2,640 Effective rate 4.6 % 34.6 % 1,333.4 % |
Tax effects of temporary differences representing the net deferred tax asset (liability) | The tax effects of temporary differences representing the net deferred tax asset (liability) at December 31, 2015 and 2014 were as follows (in thousands): Year Ended December 31, 2015 2014 Deferred tax assets: Federal net operating loss (“NOL”) carryovers $ 287,720 $ 141,896 NOLs for excess stock-based compensation (9,571 ) (9,606 ) Oil and gas exploration and development costs 214,413 — State NOL carryovers 18,384 15,525 Alternative minimum tax credits 2,092 2,092 Other Carryover Items 1,215 1,294 Asset Retirement Obligations 22,884 26,388 Unrealized share-based compensation 9,953 9,471 Valuation allowance (553,283 ) (11,327 ) Other 6,193 4,056 Total deferred tax assets $ — $ 179,789 Deferred tax liabilities: Oil and gas exploration and development costs $ — $ (258,326 ) Other — (1,596 ) Total deferred tax liabilities $ — $ (259,922 ) Net deferred tax liabilities $ — $ (80,133 ) Net current deferred tax assets — 6,243 Net non-current deferred tax liabilities $ — $ (86,376 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term debt | Our debt balances as of December 31, 2015 and 2014 , were as follows (in thousands): December 31, 2015 December 31, 2014 7.125% senior notes due in 2017 (1) $ — $ 250,000 8.875% senior notes due in 2020 (1) — 222,775 7.875% senior notes due in 2022 (1) — 404,459 Bank Borrowings 324,900 197,300 Total Debt $ 324,900 $ 1,074,534 Less: Current portion of long-term debt (2) (324,900 ) — Long-Term Debt $ — $ 1,074,534 (1) Classified as Liabilities Subject to Compromise as of December 31, 2015 (2) As a result of our Chapter 11 filing, we have classified our credit facility borrowings as current at December 31, 2015. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock option activity | The following table represents stock option award activity for the year ended December 31, 2015 : 2015 Shares Wtd. Avg. Exer. Price Options outstanding, beginning of period 1,332,190 $ 34.02 Options granted — $ — Options canceled (1,800 ) $ 34.15 Options exercised — $ — Options outstanding, end of period 1,330,390 $ 34.02 Options exercisable, end of period 1,330,390 $ 34.02 |
Stock options outstanding | The following table summarizes information about stock option awards outstanding at December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at 12/31/15 Wtd. Avg. Remaining Contractual Life Wtd. Avg. Exercise Price Number Exercisable at 12/31/15 Wtd. Avg. Exercise Price $8.00 to $24.99 380,080 3.6 $ 19.91 380,080 $ 19.91 $25.00 to $45.00 950,310 3.8 $ 39.67 950,310 $ 39.67 $8.00 to $45.00 1,330,390 3.7 $ 34.02 1,330,390 $ 34.02 |
Schedule of RSA Activity | The following table represents restricted stock award activity for the year ended December 31, 2015 : 2015 Shares Wtd. Avg. Grant Price Restricted shares outstanding, beginning of period 1,414,012 $ 14.81 Restricted shares granted 609,238 $ 2.64 Restricted shares canceled (232,482 ) $ 13.65 Restricted shares vested (303,692 ) $ 20.04 Restricted shares outstanding, end of period 1,487,076 $ 8.94 |
Schedule of Nonvested Restricted Stock Units Activity | The following table represents restricted stock unit activity for the year ended December 31, 2015 : Shares Wtd. Avg. Restricted stock units outstanding, beginning of period 374,950 $ 13.36 Restricted stock units granted 216,450 $ 1.98 Restricted stock units canceled — $ — Restricted stock units vested — $ — Restricted stock units outstanding, end of period 591,400 $ 9.20 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of senior notes | Based upon quoted market prices as of December 31, 2015, 2014 and 2013 , the fair value and carrying value of our senior notes was as follows (in millions): Subject to Compromise Not Subject to Compromise Not Subject to Compromise December 31, 2015 December 31, 2014 December 31, 2013 Fair Value Carrying Value (1) Fair Value Carrying Value Fair Value Carrying Value 7.125% senior notes due in 2017 $ 23.0 $ 250.0 $ 153.0 $ 250.0 $ 256.7 $ 250.0 8.875% senior notes due in 2020 $ 21.4 $ 225.0 $ 133.1 $ 222.8 $ 239.1 $ 222.4 7.875% senior notes due in 2022 $ 34.5 $ 400.0 $ 198.0 $ 404.5 $ 409.0 $ 404.9 (1) Includes write-off of discount associated with the 2020 notes and premium associated with the 2022 notes due to the Company's bankruptcy proceedings. |
Fair value of plan assets | The following table presents our assets and liabilities that are measured at fair value as of December 31, 2014 , and are categorized using the fair value hierarchy. For additional discussion related to the fair value of the Company's derivatives, refer to Note 5 of these consolidated financial statements. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value (in millions): Fair Value Measurements at Total Quoted Prices in Active markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2014 Assets Natural Gas Derivatives $ 2.4 $ — $ 2.4 $ — Natural Gas Basis Derivatives $ 0.1 $ — $ 0.1 $ — Liabilities Natural Gas Derivatives $ 0.1 $ — $ 0.1 $ — |
Asset Retirement Obligations 37
Asset Retirement Obligations Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Roll-forward of our asset retirement obligations | The following provides a roll-forward of our asset retirement obligations (in thousands): Asset Retirement Obligations as of December 31, 2013 $ 79,084 Accretion expense 5,712 Liabilities incurred for new wells and facilities construction 469 Reductions due to sold and abandoned wells and facilities (8,253 ) Revisions in estimates (4,181 ) Asset Retirement Obligations as of December 31, 2014 $ 72,831 Accretion expense 5,572 Liabilities incurred for new wells and facilities construction 151 Reductions due to sold and abandoned wells and facilities (4,576 ) Revisions in estimates (10,423 ) Asset Retirement Obligations as of December 31, 2015 $ 63,555 |
Chapter 11 Proceedings Chapte38
Chapter 11 Proceedings Chapter 11 Proceedings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Plan of Reorganization [Abstract] | ||||
Equity Method Investment, Ownership Percentage | 100.00% | |||
Plan or Reorganization, Percentage of Common Stock lenders to receive | 96.00% | |||
Plan of Reorganization, Percentage of Common Stock existing equity holders to retain | 4.00% | |||
Plan or Reorganization, warrants existing equity holders | 30.00% | |||
Plan of Reogranization, percentage of common stock lenders to receive net of backstop fee | 88.50% | |||
Plan of Reorganization, backstop fee | 7.50% | |||
Substantial Stockholder percentage | 4.99% | |||
Debtor-in-Possession Financing [Abstract] | ||||
Debtor-in-Possession Financing, Amount Arranged | $ 75,000 | |||
Debtor-in-Possession Financing, Amount Currently Available | 30,000 | |||
Debtor-in-Possession Financing, Unused Borrowings | 45,000 | |||
Liabilities Subject to Compromise [Abstract] | ||||
Liabilities Subject to Compromise, Accounts Payable and Accrued Liabilities | 55,587 | |||
Liabilities Subject to Compromise, Accrued Capital Costs | 7,225 | |||
Liabilities Subject to Compromise, Undistributed Oil and Gas Revenues | 11,989 | |||
Liabilities Subject to Compromise, Debt and Accrued Interest | 905,629 | |||
Liabilities Subject to Compromise, Other Liabilities | 3,958 | |||
Liabilities Subject to Compromise | 984,388 | $ 0 | ||
Reorganization Items [Abstract] | ||||
Reorganization items | 6,565 | $ 0 | $ 0 | |
Senior Notes [Member] | ||||
Reorganization Items [Abstract] | ||||
Debtor Reorganization Items, write-off of Deferred Financing Costs and Debt Discounts | 8,662 | |||
Senior Notes [Member] | Debt Discount on Senior Notes Due 2020 [Member] | ||||
Reorganization Items [Abstract] | ||||
Debtor Reorganization Items, write-off of Deferred Financing Costs and Debt Discounts | 1,864 | |||
Senior Notes [Member] | Senior Notes Due 2022 [Member] | ||||
Liabilities Subject to Compromise [Abstract] | ||||
Liabilities Subject to Compromise, Debt and Accrued Interest | [1] | 400,000 | ||
Reorganization Items [Abstract] | ||||
Debtor Reorganization Items, write-off of Deferred Financing Costs and Debt Discounts | 5,300 | |||
Debtor Reorganization Items, write-off of Debt Premiums | $ (3,961) | |||
[1] | Amounts are shown net of any debt discount or premium |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $ 5,972,666 | $ 5,826,995 |
Unproved oil and gas properties | 18,839 | 64,903 |
Furniture, fixtures, and other equipment | 44,252 | 42,257 |
Less - Accumulated depreciation, depletion, and amortization | (5,577,854) | (3,839,118) |
Property, Plant and Equipment, Net | 457,903 | 2,095,037 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade accounts payable | 0 | 31,153 |
Accrued operating expenses | 0 | 10,784 |
Accrued payroll costs | 0 | 8,100 |
Asset retirement obligation - current portion | 7,165 | 10,709 |
Accrued taxes | 0 | 2,957 |
Other payables | 498 | 4,541 |
Total accounts payable and accrued liabilities | $ 7,663 | $ 68,244 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Total capitalized internal costs | $ 12,700 | $ 26,300 | $ 31,800 | |
Discount rate for estimated future net revenues from proved properties | 10.00% | |||
Write-down of oil and gas properties | $ 1,562,086 | 445,396 | 46,948 | |
Allowance for doubtful accounts receivable, current | $ 100 | 100 | 100 | |
Accounts receivable from oil and gas sales | 14,900 | 14,900 | 34,800 | |
Accounts receivable related to joint interest owners | 4,900 | 4,900 | 8,400 | |
Severance tax credit receivables | 1,200 | 1,200 | 3,100 | |
Other receivables | 700 | $ 700 | 2,200 | |
Percentage of working interest in wells | 100.00% | |||
Total amount of supervision fees charged to wells | $ 9,200 | 12,700 | $ 11,600 | |
Inventories carried at cost | 600 | 600 | 3,100 | |
Inventory write-down | 2,000 | |||
Prepaid expenses | 4,400 | 4,400 | 3,900 | |
Texegy PSA deposit | 2,400 | 2,400 | ||
Outstanding checks included in trade accounts payable | 13,700 | |||
Other payables before reclass to liabilities subject to compromise | 5,300 | 5,300 | ||
Other payables reclassed to liabilities subject to compromise | 4,800 | 4,800 | ||
Restricted cash and cash equivalents included in other long term assets | 1,000 | 1,000 | $ 1,000 | |
Treasury stock reissued at lower than repurchase price | $ 4,900 | |||
Shell Oil Company Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Concentration risk, percentage | 16.00% | 21.00% | 33.00% | |
Kinder Morgan Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Concentration risk, percentage | 27.00% | 20.00% | ||
Plains Marketing Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Concentration risk, percentage | 18.00% | 11.00% | ||
Howard Energy Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Concentration risk, percentage | 13.00% | |||
BP America Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Concentration risk, percentage | 21.00% | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Property, Plant and Equipment, Useful Life | 2 years | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
Line of Credit [Member] | ||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||
Revolving credit facility debt issuance costs | $ 3,300 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic EPS: | |||
Net Income (Loss) | $ (1,653,971) | $ (283,427) | $ (2,442) |
Income, Share Amounts | 44,463 | 43,795 | 43,331 |
Earnings (Loss) Per Share, Basic | $ (37.20) | $ (6.47) | $ (0.06) |
Dilutive Securities: | |||
Dilutive Options, Shares | 0 | 0 | |
Dilutive RSA's, Shares | 0 | 0 | |
Diluted EPS: | |||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (1,653,971) | $ (283,427) | $ (2,442) |
Weighted Average Number of Shares Outstanding, Diluted | 44,463 | 43,795 | 43,331 |
Earnings (Loss) Per Share, Diluted | $ (37.20) | $ (6.47) | $ (0.06) |
Stock Options [Member] | |||
Earnings Per Share (Textual) [Abstract] | |||
Antidilutive shares not included in the computation of diluted EPS | 1,300 | 1,400 | 1,600 |
Restricted Stock Awards [Member] | |||
Earnings Per Share (Textual) [Abstract] | |||
Antidilutive shares not included in the computation of diluted EPS | 500 | 500 | 300 |
Restricted Stock Units (RSUs) [Member] | |||
Earnings Per Share (Textual) [Abstract] | |||
Antidilutive shares not included in the computation of diluted EPS | 600 | 400 | 300 |
Provision (Benefit) for Incom42
Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of income (Loss) from continuing operations before taxes | |||
Income (Loss) Before Income Taxes | $ (1,734,514) | $ (433,470) | $ 198 |
Provision (Benefit) for Incom43
Provision (Benefit) for Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of consolidated income tax provision (benefit) | |||
Current income taxes | $ (410) | $ 314 | $ (12) |
Deferred income taxes | (80,133) | (150,357) | 2,652 |
Income tax provision (benefit) | $ (80,543) | $ (150,043) | $ 2,640 |
Provision (Benefit) for Incom44
Provision (Benefit) for Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliations of income taxes computed using the U.S. Federal statutory rate to the effective income tax rates | |||
Income taxes (or benefits) computed at U.S. statutory rate | $ (607,080) | $ (151,714) | $ 69 |
State tax provisions (benefits), net of federal benefits | (18,064) | (5,935) | (184) |
Non-deductible equity compensation | 252 | 666 | 1,127 |
Stock-based compensation tax shortfall | 1,703 | 2,409 | 558 |
Valuation allowances | 542,289 | 4,635 | 385 |
Expired operating loss carryovers | 333 | 288 | 400 |
Other, net | 24 | (392) | 285 |
Income tax provision (benefit) | $ (80,543) | $ (150,043) | $ 2,640 |
Effective rate | 4.60% | 34.60% | 1333.40% |
Provision (Benefit) for Incom45
Provision (Benefit) for Income Taxes (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
DTA, Federal net operating losses (NOLs) | $ 287,720 | $ 141,896 |
DTA, NOLs for excess stock-based compensation | (9,571) | (9,606) |
DTA, Oil and gas exploration and development costs | 214,413 | 0 |
DTA, State NOL carryovers | 18,384 | 15,525 |
DTA, Alternative minimum tax credits | 2,092 | 2,092 |
DTA, Other loss carryforwards | 1,215 | 1,294 |
DTA, Asset retirement obligations | 22,884 | 26,388 |
DTA, Unrealized share-based compensation | 9,953 | 9,471 |
DTA, Valuation Allowance | (553,283) | (11,327) |
DTA, Other | 6,193 | 4,056 |
Total deferred tax assets | 0 | 179,789 |
Deferred tax liabilities: | ||
DTL, Oil and gas exploration and development costs | 0 | (258,326) |
DTL, Other | 0 | (1,596) |
Total deferred tax liabilites | 0 | 259,922 |
Net deferred tax liabilities | 0 | (80,133) |
Net current deferred tax assets | 0 | 6,243 |
Net non-current deferred tax liabilities | $ 0 | $ 86,376 |
Provision (Benefit) for Incom46
Provision (Benefit) for Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate reconciliation, percent | 35.00% | ||
Change in deferred tax assets valuation allowance | $ 542,289 | $ 4,635 | $ 385 |
Total deferred tax assets | 0 | $ 179,789 | |
Federal NOL carryovers | $ 822,100 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Thousands | Jan. 01, 2017 | Dec. 31, 2015USD ($) | Dec. 01, 2015USD ($) | Feb. 29, 2016USD ($) | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Nov. 02, 2015USD ($)Banks | May. 01, 2015USD ($) | Oct. 03, 2012USD ($) | Nov. 30, 2011USD ($) | Nov. 25, 2009USD ($) | Jun. 01, 2007USD ($) | |
Bankruptcy Proceedings [Abstract] | |||||||||||||||||
Plan of Reogranization, percentage of common stock lenders to receive net of backstop fee | 88.50% | 88.50% | |||||||||||||||
Bank Borrowings | |||||||||||||||||
Liabilities subject to compromise, senior notes | $ 905,629 | $ 905,629 | |||||||||||||||
Long-Term Debt, excluding current maturities | 0 | 0 | $ 1,074,534 | ||||||||||||||
Total Debt | 324,900 | 324,900 | |||||||||||||||
Number of syndicated banks | Banks | 11 | ||||||||||||||||
Interest expense including commitment fees and amortization of debt issuance costs relating to the credit facility | 75,870 | 73,207 | $ 69,382 | ||||||||||||||
Capitalized interest on our unproved properties | 4,900 | 5,000 | 7,200 | ||||||||||||||
Debtor-in-Possession Financing [Abstract] | |||||||||||||||||
Debtor-in-Possession Financing, Amount Currently Available | 30,000 | 30,000 | |||||||||||||||
Debtor-in-Possession Financing, Unused Borrowings | $ 45,000 | $ 45,000 | |||||||||||||||
DIP Financing, percentage of applicable margin with LIBOR | 12.00% | ||||||||||||||||
DIP Financing, percentage of applicable margin with ABR | 11.00% | ||||||||||||||||
Debtor-in-Possession Financing, Fee on Unused Borrowings | 3.00% | 3.00% | |||||||||||||||
Plan of Reorganization, backstop fee | 7.50% | 7.50% | |||||||||||||||
DIP Financing, fee paid on drawdowns against DIP facility | 5.00% | 5.00% | |||||||||||||||
DIP Financing, net proceeds after drawdown fee | 95.00% | 95.00% | |||||||||||||||
Senior Notes [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Reorganization Items, write-off of debt issuance costs and debt discounts | $ 8,662 | ||||||||||||||||
Interest expense including commitment fees and amortization of debt issuance costs relating to the credit facility | 70,800 | 70,700 | 70,600 | ||||||||||||||
Line of Credit [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Long-Term Debt, excluding current maturities | 197,300 | ||||||||||||||||
Revolving credit facility debt issuance costs | $ 3,300 | ||||||||||||||||
Line of Credit, current borrowing base | $ 330,000 | $ 375,000 | |||||||||||||||
Line of Credit, current commitment amount | $ 330,000 | $ 375,000 | |||||||||||||||
Long-term Debt, Current Maturities | 324,900 | $ 324,900 | 0 | ||||||||||||||
Percentage of applicable margin with federal fund rate | 0.50% | ||||||||||||||||
Percentage of applicable margin with LIBOR | 1.00% | ||||||||||||||||
Interest expense including commitment fees and amortization of debt issuance costs relating to the credit facility | $ 9,400 | 7,500 | 6,000 | ||||||||||||||
Commitment fees included in interest expense, net | 500 | 800 | $ 1,100 | ||||||||||||||
Maximum level of cash dividends in any fiscal year | 15,000 | 15,000 | |||||||||||||||
Aggregate limitation on purchases of stock | 50,000 | $ 50,000 | |||||||||||||||
Line of Credit, Required Security Interest on Oil and Gas Properties | 95.00% | ||||||||||||||||
Line of Credit [Member] | Minimum [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Lead bank's prime rate | 3.25% | ||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.375% | ||||||||||||||||
Line of Credit [Member] | Minimum [Member] | Alternative Base Interest Rate [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Debt Instrument escalating basis spread on base rate | 100 | ||||||||||||||||
Line of Credit [Member] | Minimum [Member] | Eurodollar Interest Rate [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Debt instrument escalating rates for eurodollar rate loans | 200 | ||||||||||||||||
Line of Credit [Member] | Maximum [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Lead bank's prime rate | 3.50% | ||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||||||||||||||||
Line of Credit [Member] | Maximum [Member] | Alternative Base Interest Rate [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Debt Instrument escalating basis spread on base rate | 200 | ||||||||||||||||
Line of Credit [Member] | Maximum [Member] | Eurodollar Interest Rate [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Debt instrument escalating rates for eurodollar rate loans | 300 | ||||||||||||||||
Senior Notes Due 2017 [Member] | Senior Notes [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Liabilities subject to compromise, senior notes | 250,000 | $ 250,000 | |||||||||||||||
Long-Term Debt, excluding current maturities | 0 | 0 | 250,000 | $ 250,000 | |||||||||||||
Stated rate of senior notes | 7.125% | ||||||||||||||||
Reorganization Items, write-off of debt issuance costs and debt discounts | 800 | ||||||||||||||||
Missed interest payment on 2017 senior notes | $ 8,900 | ||||||||||||||||
Senior Notes | |||||||||||||||||
Percentage at which senior notes are issued, of par value | 100.00% | ||||||||||||||||
Senior Notes Due 2020 [Member] | Senior Notes [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Liabilities subject to compromise, senior notes | [1] | 225,000 | 225,000 | ||||||||||||||
Long-Term Debt, excluding current maturities | 0 | 0 | 222,775 | ||||||||||||||
Stated rate of senior notes | 8.875% | ||||||||||||||||
Reorganization Items, write-off of debt issuance costs and debt discounts | 2,600 | ||||||||||||||||
Senior Notes | |||||||||||||||||
Senior notes, issued | $ 225,000 | ||||||||||||||||
Original unamortized issuance discount on senior notes | $ 3,600 | ||||||||||||||||
Percentage at which senior notes are issued, of par value | 98.389% | ||||||||||||||||
Effective interest rate on senior notes including discount | 9.125% | ||||||||||||||||
Senior Notes Due 2022 [Member] | Senior Notes [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Liabilities subject to compromise, senior notes | [1] | 400,000 | 400,000 | ||||||||||||||
Long-Term Debt, excluding current maturities | $ 0 | 0 | $ 404,459 | ||||||||||||||
Stated rate of senior notes | 7.875% | ||||||||||||||||
Reorganization Items, write-off of debt issuance costs and debt discounts | 5,300 | ||||||||||||||||
Reorganization Items, write-off of debt premiums | 3,961 | ||||||||||||||||
Senior Notes | |||||||||||||||||
Senior notes, issued | $ 400,000 | $ 250,000 | |||||||||||||||
Original unamortized issuance discount on senior notes | $ 2,100 | ||||||||||||||||
Percentage at which senior notes are issued, of par value | 99.156% | ||||||||||||||||
Effective interest rate on senior notes including discount | 8.00% | ||||||||||||||||
Debt Discount on Senior Notes Due 2020 [Member] | Senior Notes [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Reorganization Items, write-off of debt issuance costs and debt discounts | $ 1,864 | ||||||||||||||||
Additional Senior Notes Due 2022 [Member] | Senior Notes [Member] | |||||||||||||||||
Senior Notes | |||||||||||||||||
Senior notes, issued | $ 150,000 | ||||||||||||||||
Percentage at which senior notes are issued, of par value | 105.00% | ||||||||||||||||
Effective interest rate on senior notes including discount | 6.993% | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Debtor-in-Possession Financing [Abstract] | |||||||||||||||||
Debtor Reorganization Items, Debtor-in-Possession Facility Financing Costs | $ 900 | ||||||||||||||||
Subsequent Event [Member] | Line of Credit [Member] | |||||||||||||||||
Bank Borrowings | |||||||||||||||||
Line of Credit, Working Capital Ratio Required | 1 | 0.5 | |||||||||||||||
Line of Credit, Covenant, Interest Coverage Ratio, Required | 2 | 1.3 | 1.15 | ||||||||||||||
Line of Credit, Covenant, Senior Secured Leverage Ratio, Minimum | 2.5 | 3 | 3.5 | ||||||||||||||
[1] | Amounts are shown net of any debt discount or premium |
Price-Risk Management Price-R48
Price-Risk Management Price-Risk Management (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Gain (Loss) on Price Risk Derivatives, Net | $ 0.2 | $ 1.3 | $ (0.9) |
Derivative Asset, Fair Value, Gross Asset | 0 | ||
Derivative Liability, Fair Value, Gross Liability | 0 | ||
Derivative, Fair Value, Net | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Feb. 27, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Obligations (Textual) | ||||
Operating Leases, Rent Expense | $ 16.8 | $ 21 | $ 20.5 | |
Operating Lease Term of Contract | 11 years | |||
Operating Lease, Early Termination Option | 7 years | |||
Operating Leases, Future Minimum Payments Due | 23 | |||
Operating lease commitments [Member] | ||||
Obligations (Textual) | ||||
Operating Leases, Future Minimum Payments Due | 24.1 | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 4.1 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 3.3 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 3.7 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 3.9 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 5.5 | |||
Gas transportation and processing obligations [Member] | ||||
Obligations (Textual) | ||||
Operating Leases, Future Minimum Payments Due | 80.7 | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 14.5 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 17.7 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 17.2 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 16.9 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | $ 14.3 |
Share-Based Compensation (Detai
Share-Based Compensation (Details 1) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Stock option activity in shares and weighted average price | |
Options outstanding, beginning of period, shares | shares | 1,332,190 |
Options outstanding, beginning of period, weighted average price | $ / shares | $ 34.02 |
Options granted, shares | shares | 0 |
Options granted, weighted average price | $ / shares | $ 0 |
Options canceled, shares | shares | (1,800) |
Options canceled, weighted average price | $ / shares | $ 34.15 |
Options exercised, shares | shares | 0 |
Options exercised, weighted average price | $ / shares | $ 0 |
Options outstanding, end of period, shares | shares | 1,330,390 |
Options outstanding, end of period, weighted average price | $ / shares | $ 34.02 |
Options exercisable, end of period, shares | shares | 1,330,390 |
Options exercisable, end of period, weighted average price | $ / shares | $ 34.02 |
Share-Based Compensation (Det51
Share-Based Compensation (Details 2) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
$ 8.00 to $24.99 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Outstanding Options | shares | 380,080 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 7 months |
Options Outstanding, Weighted Average Exercise | $ / shares | $ 19.91 |
Options Exercisable, Number of Exercisable Options | shares | 380,080 |
Options Exercisable, Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 19.91 |
$25.00 to $45.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Outstanding Options | shares | 950,310 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 10 months |
Options Outstanding, Weighted Average Exercise | $ / shares | $ 39.67 |
Options Exercisable, Number of Exercisable Options | shares | 950,310 |
Options Exercisable, Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 39.67 |
$8.00 to $45.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Outstanding Options | shares | 1,330,390 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 8 months |
Options Outstanding, Weighted Average Exercise | $ / shares | $ 34.02 |
Options Exercisable, Number of Exercisable Options | shares | 1,330,390 |
Options Exercisable, Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 34.02 |
Share-Based Compensation (Det52
Share-Based Compensation (Details 3) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Restricted stock activity | |||
Restricted shares outstanding, beginning of period, shares | 1,414,012 | ||
Restricted shares outstanding, beginning of period, weighted average price | $ 14.81 | ||
Restricted shares granted, shares | 609,238 | ||
Restricted shares granted, fair value, weighted average price | $ 2.64 | $ 11.55 | $ 14.86 |
Restricted shares canceled, shares | (232,482) | ||
Restricted shares canceled, fair value, weighted average price | $ 13.65 | ||
Restricted shares vested, shares | (303,692) | ||
Restricted shares vested, weighted average price | $ 20.04 | ||
Restricted shares outstanding, end of period, shares | 1,487,076 | 1,414,012 | |
Restricted shares outstanding, end of period, weighted average price | $ 8.94 | $ 14.81 | |
Restricted Stock Units (RSUs) [Member] | |||
Restricted stock activity | |||
Restricted shares outstanding, beginning of period, shares | 374,950 | ||
Restricted shares outstanding, beginning of period, weighted average price | $ 13.36 | ||
Restricted shares granted, shares | 216,450 | ||
Restricted shares granted, fair value, weighted average price | $ 1.98 | $ 11.68 | $ 15.01 |
Restricted shares canceled, shares | 0 | ||
Restricted shares canceled, fair value, weighted average price | $ 0 | ||
Restricted shares vested, shares | 0 | 0 | 0 |
Restricted shares vested, weighted average price | $ 0 | ||
Restricted shares outstanding, end of period, shares | 591,400 | 374,950 | |
Restricted shares outstanding, end of period, weighted average price | $ 9.20 | $ 13.36 |
Share-Based Compensation (Det53
Share-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation Plan | |||
Shares available from canceled share-based compensation plans | 0 | ||
Percentage of fair value of the common stock equal to exercise price | 100.00% | ||
Number of Matured Shares Delivered in Stock Swap Transactions | 0 | 0 | 10,752 |
Percentage of payroll deductions | 10.00% | ||
Percentage of purchase price for stock acquired under the plan | 85.00% | ||
Number of shares issued under employee stock purchase plan | 87,629 | 71,825 | 72,273 |
Purchase price of shares issued under employee stock purchase plan | $ 3.44 | $ 11.47 | $ 13.08 |
Actual income tax benefit from excise of stock options | $ 0 | ||
Share-based compensation expenses | $ 4,435 | $ 7,309 | 10,099 |
Share-based compensation (capitalized) | 1,400 | 3,500 | 5,500 |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||
Remaining contract life of outstanding stock options. | 3 years 9 months | ||
Remaining contract life of exercisable stock option | 3 years 9 months | ||
Intrinsic value of exercised stock option | $ 0 | 0 | 0 |
Employee Stock Ownership Plan | |||
Minimum age to participate for ESOP | 21 years | ||
Shares in ESOP | 0 | ||
Amount contributed to ESOP | $ 0 | 0 | $ 200 |
Shares of common stock contributed to ESOP | 14,815 | ||
Employee Savings Plan [Abstract] | |||
Employee Savings Plan, Employer Matching Contribution, Percent | 100.00% | ||
Employee Savings Plan, Maximum Annual Contribution Per Employee, Percent | 6.00% | ||
Employee Savings Plan, Employer Discretionary Contribution Amount | $ 700 | 1,900 | $ 1,800 |
Defined Contribution Plan, Employer Discretionary Contribution Amount Paid in Cash | $ 900 | ||
Employee Savings Plan, Stock Issued During Period, Shares | 352,476 | 139,850 | |
General and Administrative Expense [Member] | |||
Stock-Based Compensation Plan | |||
Share-based compensation expenses | 4,100 | $ 6,700 | $ 9,300 |
Operating Lease Expense [Member] | |||
Stock-Based Compensation Plan | |||
Share-based compensation expenses | $ 200 | $ 200 | $ 300 |
Employee Stock Option [Member] | |||
Stock-Based Compensation Plan | |||
Reduction in shares available for future grant by restricted stock | 1 | ||
Stock Option Awards | |||
Look back period used to estimate expected volatility of stock option grants | 5 years 6 months | ||
Restricted Stock Awards [Abstract] | |||
Unrecognized compensation cost related to stock awards | $ 0 | ||
Restricted Stock Awards [Member] | |||
Stock-Based Compensation Plan | |||
Reduction in shares available for future grant by restricted stock | 1.44 | ||
Restricted Stock Awards [Abstract] | |||
Number of shares issued to employees, consultants and directors | 609,238 | 747,400 | 869,430 |
Fair value of non-option shares granted | $ 2.64 | $ 11.55 | $ 14.86 |
Unrecognized compensation cost related to stock awards | $ 3,600 | ||
Weighted average recognition period of cost related to stock awards | 1 year 2 months | ||
Grant date fair value of shares vested | $ 6,100 | $ 11,800 | $ 12,800 |
Restricted Stock Units [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 609,238 | ||
Performance Awards (RSUs) [Member] | |||
Stock-Based Compensation Plan | |||
Reduction in shares available for future grant by restricted stock | 1.44 | ||
Restricted Stock Awards [Abstract] | |||
Number of shares issued to employees, consultants and directors | 216,450 | 185,250 | 189,700 |
Vesting period | 3 years 1 month | ||
Fair value of non-option shares granted | $ 1.98 | $ 11.68 | $ 15.01 |
Unrecognized compensation cost related to stock awards | $ 900 | ||
Weighted average recognition period of cost related to stock awards | 1 year 6 months | ||
Restricted Stock Units [Abstract] | |||
Performance Period for RSUs | 3 years | ||
Percent of payout for performance based restricted stock unit grants | 100.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 216,450 | ||
Cash-settled Restricted Stock Unit (RSUs) [Member] | |||
Restricted Stock Units [Abstract] | |||
Performance Period for RSUs | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 147,812 | ||
Minimum Payout [Member] | Restricted Stock Awards [Member] | |||
Restricted Stock Awards [Abstract] | |||
Vesting period | 3 years | ||
Maximum Payout [Member] | |||
Employee Stock Ownership Plan | |||
Criteria for ESOP | 1 year | ||
Maximum Payout [Member] | Performance Awards (RSUs) [Member] | |||
Restricted Stock Units [Abstract] | |||
Percent of payout for performance based restricted stock unit grants | 200.00% | ||
Employee Stock Purchase Plan [Member] | |||
Stock-Based Compensation Plan | |||
Shares available for future grant under stock compensation plans | 318,027 | ||
Share-Based Compensation Plan [Member] | |||
Stock-Based Compensation Plan | |||
Shares available for future grant under stock compensation plans | 1,253,306 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Cost of service provided | $ 0.5 | $ 0.6 | $ 0.6 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) $ in Millions | Mar. 15, 2016USD ($) | Feb. 02, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 15, 2014USD ($)a |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Texegy PSA deposit | $ 2.4 | |||
Fasken Field [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Acreage sold in oil and gas properties | a | 8,300 | |||
Participation interest sold in oil and gas properties | 36.00% | |||
Sale proceeds from disposal of properties | $ 175 | |||
Cash Received at Closing from Oil and Gas Properties | 125 | |||
Cash Carry of Field Development Costs | 50 | |||
Remaining Cash Carry of Field Development Costs | 5.5 | |||
Sale Proceeds Received at Closing | 147 | |||
Deferred Credits and Other Liabilities, Current | $ 12.5 | |||
South Bearhead Creek and Burr Ferry Field [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale proceeds from disposal of properties | $ 49 | |||
Interest Sold in Oil and Gas Properties | 75.00% | |||
Discontinued Operations, percentage of company reserves sold | 5.00% | |||
Remaining interest in oil and gas properties | 25.00% | |||
Subsequent Event [Member] | South Bearhead Creek and Burr Ferry Field [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale Proceeds Received at Closing | $ 13 | |||
Texegy PSA deposit | $ 4.9 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Senior Notes [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Senior Notes Due 2017 [Member] | |||
Fair value of senior notes | |||
Fair value of senior notes | $ 23 | $ 153 | $ 256.7 |
Carrying value of senior notes | 250 | 250 | 250 |
Senior Notes Due 2020 [Member] | |||
Fair value of senior notes | |||
Fair value of senior notes | 21.4 | 133.1 | 239.1 |
Carrying value of senior notes | 225 | 222.8 | 222.4 |
Senior Notes Due 2022 [Member] | |||
Fair value of senior notes | |||
Fair value of senior notes | 34.5 | 198 | 409 |
Carrying value of senior notes | $ 400 | $ 404.5 | $ 404.9 |
Fair Value Measurements (Deta57
Fair Value Measurements (Details 2) - Fair Value, Measurements, Recurring [Member] $ in Millions | Dec. 31, 2014USD ($) |
Natural Gas Derivative Contract [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | $ 2.4 |
Fair Value of Derivative Liability | 0.1 |
Natural Gas Derivative Contract [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | 0 |
Fair Value of Derivative Liability | 0 |
Natural Gas Derivative Contract [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | 2.4 |
Fair Value of Derivative Liability | 0.1 |
Natural Gas Derivative Contract [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | 0 |
Fair Value of Derivative Liability | 0 |
Natural Gas Basis Derivative Contract [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | 0.1 |
Natural Gas Basis Derivative Contract [Member] | Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | 0 |
Natural Gas Basis Derivative Contract [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | 0.1 |
Natural Gas Basis Derivative Contract [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value of Derivative Asset | $ 0 |
Asset Retirement Obligations 58
Asset Retirement Obligations Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset Retirement Obligation | $ 63,555 | $ 72,831 | $ 79,084 |
Accretion expense | 5,572 | 5,712 | $ 6,181 |
Liabilities incurred for new wells and facilities construction | 151 | 469 | |
Reductions due to sold and abandoned wells | (4,576) | (8,253) | |
Revisions in estimates | (10,423) | (4,181) | |
Asset retirement obligation - current portion | $ 7,165 | $ 10,709 |
Consolidating Financial Infor59
Consolidating Financial Information Consolidating Financial Information (Details) $ in Millions | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Consolidation, Eliminations [Member] | Payable due from Swift Energy Operating do Swift Energy Company [Member] | |
Related Party Transaction [Line Items] | |
Accounts Payable, Related Parties, Current | $ 416.4 |
Consolidation, Eliminations [Member] | Payable due from Swift Energy Operating to Swift Energy International [Member] | |
Related Party Transaction [Line Items] | |
Accounts Payable, Related Parties, Current | 85.4 |
Consolidation, Eliminations [Member] | Receivables due to Swift Energy Operating from Swift Energy Alaska [Member] | |
Related Party Transaction [Line Items] | |
Accounts Receivable, Related Parties, Current | 6.1 |
Consolidation, Eliminations [Member] | Receivables due to Swift Energy Operating from Swift Energy Exploration Services [Member] | |
Related Party Transaction [Line Items] | |
Accounts Receivable, Related Parties, Current | $ 0.1 |