Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CLR | |
Entity Registrant Name | CONTINENTAL RESOURCES, INC | |
Entity Central Index Key | 732,834 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 374,530,174 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 19,496 | $ 11,463 |
Receivables: | ||
Crude oil and natural gas sales | 335,570 | 378,622 |
Affiliated parties | 62 | 122 |
Joint interest and other, net | 278,501 | 232,293 |
Derivative assets | 12,587 | 93,922 |
Inventories | 92,894 | 94,151 |
Prepaid expenses and other | 11,765 | 11,766 |
Total current assets | 750,875 | 822,339 |
Net property and equipment, based on successful efforts method of accounting | 13,094,683 | 14,063,328 |
Noncurrent derivative assets | 1,676 | 14,560 |
Other noncurrent assets | 18,018 | 19,581 |
Total assets | 13,865,252 | 14,919,808 |
Current liabilities: | ||
Accounts payable trade | 413,278 | 553,285 |
Revenues and royalties payable | 173,223 | 187,000 |
Payables to affiliated parties | 178 | 69 |
Accrued liabilities and other | 199,694 | 176,947 |
Derivative liabilities | 13,780 | 3,583 |
Current portion of long-term debt | 2,197 | 2,144 |
Total current liabilities | 802,350 | 923,028 |
Long-term debt, net of current portion | 6,830,141 | 7,115,644 |
Other noncurrent liabilities: | ||
Deferred income tax liabilities, net | 1,847,947 | 2,090,228 |
Asset retirement obligations, net of current portion | 104,938 | 101,251 |
Noncurrent derivative liabilities | 4,299 | 3,706 |
Other noncurrent liabilities | 14,879 | 17,051 |
Total other noncurrent liabilities | 1,972,063 | 2,212,236 |
Commitments and contingencies (Note 7) | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 374,537,423 shares issued and outstanding at September 30, 2016; 372,959,080 shares issued and outstanding at December 31, 2015 | 3,745 | 3,730 |
Additional paid-in capital | 1,363,886 | 1,345,624 |
Accumulated other comprehensive loss, net of tax | (2,485) | (3,354) |
Retained earnings | 2,895,552 | 3,322,900 |
Total shareholders’ equity | 4,260,698 | 4,668,900 |
Total liabilities and shareholders’ equity | $ 13,865,252 | $ 14,919,808 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 374,537,423 | 372,959,080 |
Common Stock, Shares, Outstanding | 374,537,423 | 372,959,080 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Crude oil and natural gas sales | $ 505,892 | $ 628,457 | $ 1,435,194 | $ 1,999,751 |
Crude oil and natural gas sales to affiliates | 0 | 0 | 0 | 1,400 |
Gain (loss) on crude oil and natural gas derivatives, net | 15,668 | 46,527 | (24,477) | 74,545 |
Crude oil and natural gas service operations | 4,639 | 7,685 | 19,867 | 28,991 |
Total revenues | 526,199 | 682,669 | 1,430,584 | 2,104,687 |
Operating costs and expenses | ||||
Production expenses | 67,022 | 84,036 | 219,745 | 267,058 |
Production expenses to affiliates | 0 | 0 | 0 | 1,654 |
Production taxes and other expenses | 34,583 | 47,682 | 104,216 | 157,589 |
Exploration expenses | 3,987 | 232 | 8,726 | 14,680 |
Crude oil and natural gas service operations | 2,605 | 4,059 | 9,224 | 15,045 |
Depreciation, depletion, amortization and accretion | 414,671 | 448,809 | 1,320,423 | 1,288,278 |
Property impairments | 57,689 | 96,697 | 202,728 | 321,130 |
General and administrative expenses | 44,389 | 53,798 | 113,043 | 143,368 |
Net gain on sale of assets and other | (5,564) | (288) | (104,690) | (22,930) |
Total operating costs and expenses | 619,382 | 735,025 | 1,873,415 | 2,185,872 |
Loss from operations | (93,183) | (52,356) | (442,831) | (81,185) |
Other income (expense): | ||||
Interest expense | (82,074) | (79,399) | (244,949) | (232,904) |
Other | 360 | 588 | 1,178 | 1,474 |
Total other income (expense) | (81,714) | (78,811) | (243,771) | (231,430) |
Loss before income taxes | (174,897) | (131,167) | (686,602) | (312,615) |
Benefit for income taxes | (65,276) | (48,744) | (259,254) | (98,623) |
Net loss | (109,621) | (82,423) | (427,348) | (213,992) |
Foreign currency transaction and translation gain (loss), net of tax | 418 | (438) | 869 | (2,918) |
Other Comprehensive Income (Loss), Net of Tax (unaudited) | 418 | (438) | 869 | (2,918) |
Comprehensive loss, net of tax | $ (109,203) | $ (82,861) | $ (426,479) | $ (216,910) |
Basic net loss per share (in dollars per share) | $ (0.30) | $ (0.22) | $ (1.15) | $ (0.58) |
Diluted net loss per share (in dollars per share) | $ (0.30) | $ (0.22) | $ (1.15) | $ (0.58) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2015 | $ 4,668,900 | $ 3,730 | $ 1,345,624 | $ (3,354) | $ 3,322,900 |
Balance, shares at Dec. 31, 2015 | 372,959,080 | 372,959,080 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss (unaudited) | $ (427,348) | (427,348) | |||
Other Comprehensive Income (Loss), Net of Tax (unaudited) | 869 | 869 | |||
Stock-based compensation (unaudited) | 34,259 | 34,259 | |||
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (9,460) | (9,460) | |||
Restricted stock: | |||||
Granted (unaudited) | $ 20 | $ 20 | |||
Granted (unaudited), shares | 2,025,885 | 2,025,885 | |||
Repurchased and canceled (unaudited) | $ (6,540) | $ (3) | (6,537) | ||
Repurchased and canceled (unaudited), shares | (296,105) | (296,105) | |||
Forfeited (unaudited), shares | (151,437) | (151,437) | |||
Forfeitures (unaudited) | $ (2) | $ (2) | |||
Balance at Sep. 30, 2016 | $ 4,260,698 | $ 3,745 | $ 1,363,886 | $ (2,485) | $ 2,895,552 |
Balance, shares at Sep. 30, 2016 | 374,537,423 | 374,537,423 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (427,348) | $ (213,992) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, Depletion, Amortization and Accretion | 1,322,280 | 1,286,158 |
Property impairments | 202,728 | 321,130 |
Non-cash (gain) loss on derivatives, net | 105,009 | (26,011) |
Stock-based compensation | 34,274 | 40,290 |
Benefit for deferred income taxes | (259,256) | (98,645) |
Tax deficiency (benefit) from stock-based compensation | 9,460 | (13,177) |
Dry hole costs | 233 | 8,183 |
Gain on sale of assets, net | (103,174) | (22,930) |
Other, net | 7,166 | 10,143 |
Changes in assets and liabilities: | ||
Accounts receivable | (2,634) | 351,309 |
Inventories | 1,257 | 9,137 |
Other current assets | 390 | 64,271 |
Accounts payable trade | (43,131) | (178,000) |
Revenues and royalties payable | (11,102) | (45,030) |
Accrued liabilities and other | 22,411 | (78,947) |
Other noncurrent assets and liabilities | 5,325 | 1,603 |
Net cash provided by operating activities | 863,888 | 1,415,492 |
Cash flows from investing activities | ||
Exploration and development | (878,928) | (2,598,367) |
Purchase of producing crude oil and natural gas properties | (29) | (557) |
Purchase of other property and equipment | (5,569) | (31,991) |
Proceeds from sale of assets | 334,305 | 33,216 |
Net cash used in investing activities | (550,221) | (2,597,699) |
Cash flows from financing activities | ||
Credit facility borrowings | 915,000 | 1,780,000 |
Repayment of credit facility | (1,203,000) | (600,000) |
Repayment of other debt | (1,601) | (1,552) |
Debt issuance costs | (40) | (2,110) |
Repurchase of restricted stock for tax withholdings | (6,540) | (5,818) |
Tax (deficiency) benefit from stock-based compensation | (9,460) | 13,177 |
Net cash (used in) provided by financing activities | (305,641) | 1,183,697 |
Effect of Exchange Rate on Cash and Cash Equivalents | 7 | (8,916) |
Net change in cash and cash equivalents | 8,033 | (7,426) |
Cash and cash equivalents at beginning of period | 11,463 | 24,381 |
Cash and cash equivalents at end of period | $ 19,496 | $ 16,955 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Continental Resources, Inc. (the “Company”) was originally formed in 1967 and is incorporated under the laws of the State of Oklahoma. The Company's principal business is crude oil and natural gas exploration, development and production with properties primarily located in the North, South, and East regions of the United States. The North region consists of properties north of Kansas and west of the Mississippi River and includes North Dakota Bakken, Montana Bakken and the Red River units. The South region includes all properties south of Nebraska and west of the Mississippi River including various plays in the SCOOP (South Central Oklahoma Oil Province), STACK (Sooner Trend Anadarko Canadian Kingfisher), Northwest Cana, and Arkoma Woodford areas of Oklahoma. The East region is comprised of undeveloped leasehold acreage east of the Mississippi River with no current drilling or production operations. A substantial portion of the Company’s operations are concentrated in the North region, with that region comprising approximately 62% of the Company’s crude oil and natural gas production and approximately 71% of its crude oil and natural gas revenues for the nine months ended September 30, 2016 . The Company's principal producing properties in the North region are located in the Bakken field of North Dakota and Montana. In recent years, the Company has significantly expanded its activity in the South region with its discovery of the SCOOP play and its increased activity in the Northwest Cana and STACK plays. The South region comprised approximately 38% of the Company's crude oil and natural gas production and approximately 29% of its crude oil and natural gas revenues for the nine months ended September 30, 2016 . The Company has focused its operations on the exploration and development of crude oil since the 1980s. For the nine months ended September 30, 2016 , crude oil accounted for approximately 60% of the Company’s total production and approximately 84% of its crude oil and natural gas revenues. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of presentation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are 100% owned, after all significant intercompany accounts and transactions have been eliminated upon consolidation. This report has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Because this is an interim period filing presented using a condensed format, it does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”), although the Company believes the disclosures are adequate to make the information not misleading. You should read this Quarterly Report on Form 10-Q ("Form 10-Q") together with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (“ 2015 Form 10-K”), which includes a summary of the Company’s significant accounting policies and other disclosures. The condensed consolidated financial statements as of September 30, 2016 and for the three and nine month periods ended September 30, 2016 and 2015 are unaudited. The condensed consolidated balance sheet as of December 31, 2015 was derived from the audited balance sheet included in the 2015 Form 10-K. The Company has evaluated events or transactions through the date this report on Form 10-Q was filed with the SEC in conjunction with its preparation of these condensed consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure and estimation of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. The most significant of the estimates and assumptions that affect reported results are the estimates of the Company’s crude oil and natural gas reserves, which are used to compute depreciation, depletion, amortization and impairment of proved crude oil and natural gas properties. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation in accordance with U.S. GAAP have been included in these unaudited interim condensed consolidated financial statements. The results of operations for any interim period are not necessarily indicative of the results of operations that may be expected for any other interim period or for an entire year. Earnings per share Basic and diluted net loss per share is computed by dividing net loss by the weighted-average number of shares outstanding for the period. In periods where the Company has net income, diluted earnings per share reflects the potential dilution of non-vested restricted stock awards, which are calculated using the treasury stock method. The following table presents the calculation of basic and diluted weighted average shares outstanding and net loss per share for the three and nine months ended September 30, 2016 and 2015 . Three months ended September 30, Nine months ended September 30, In thousands, except per share data 2016 2015 2016 2015 Loss (numerator): Net loss - basic and diluted $ (109,621 ) $ (82,423 ) $ (427,348 ) $ (213,992 ) Weighted average shares (denominator): Weighted average shares - basic 370,483 369,599 370,327 369,499 Non-vested restricted stock (1) — — — — Weighted average shares - diluted 370,483 369,599 370,327 369,499 Net loss per share: Basic $ (0.30 ) $ (0.22 ) $ (1.15 ) $ (0.58 ) Diluted $ (0.30 ) $ (0.22 ) $ (1.15 ) $ (0.58 ) (1) For the three and nine months ended September 30, 2016 , the Company had a net loss and therefore the potential dilutive effect of approximately 2,176,500 and 2,083,000 weighted average non-vested restricted shares, respectively, were not included in the calculation of diluted net loss per share because to do so would have been anti-dilutive to the computations. The Company also had net losses for the three and nine months ended September 30, 2015 , and therefore approximately 688,800 and 1,521,000 weighted average non-vested restricted shares, respectively, were not included in the calculation of diluted net loss per share for those periods. Inventories Inventory is comprised of crude oil held in storage or as line fill in pipelines and tubular goods and equipment to be used in the Company's exploration and development activities. Crude oil inventories are valued at the lower of cost or market primarily using the first-in, first-out inventory method. Tubular goods and equipment are valued at the lower of cost or market, with cost determined primarily using a weighted average cost method applied to specific classes of inventory items. The components of inventory as of September 30, 2016 and December 31, 2015 consisted of the following: In thousands September 30, 2016 December 31, 2015 Tubular goods and equipment $ 16,080 $ 15,633 Crude oil 76,814 78,518 Total $ 92,894 $ 94,151 Income taxes Income taxes are accounted for using the liability method under which deferred income taxes are recognized for the future tax effects of temporary differences between financial statement carrying amounts and the tax basis of existing assets and liabilities using the enacted statutory tax rates in effect at period-end. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s policy is to recognize penalties and interest related to unrecognized tax benefits, if any, in income tax expense. A valuation allowance for deferred tax assets is recorded when it is more likely than not that the benefit from the deferred tax asset will not be realized. The Company recorded valuation allowances of $0.7 million and $1.0 million for the three and nine months ended September 30, 2016 , respectively, and $0.9 million and $13.3 million for the three and nine months ended September 30, 2015 , respectively, against deferred tax assets associated with operating loss carryforwards generated by its Canadian subsidiary for which the Company does not expect to realize a benefit. New accounting pronouncements not yet adopted Leases – In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) , which requires companies to recognize a right of use asset and related liability on the balance sheet for the rights and obligations arising from leases with durations greater than 12 months. The standard is effective for interim and annual reporting periods beginning after December 15, 2018 and requires adoption by application of a modified retrospective transition approach. The Company continues to evaluate the impact of ASU 2016-02 and is in the process of developing systems and processes to identify, classify, and account for leases within the scope of the new guidance. Adoption of ASU 2016-02 will ultimately result in an increase in long-term assets and liabilities on the Company's balance sheet, the effect of which cannot be predicted with certainty at this time. Stock-based compensation – In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which changes how companies account for certain aspects of share-based payment awards, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and will be adopted either prospectively, retrospectively or using a modified retrospective transition approach depending on the topic covered in the standard. Under ASU 2016-09, on a prospective basis companies will no longer record excess tax benefits and deficiencies in additional paid-in capital. Instead, excess tax benefits and deficiencies will be recognized as income tax expense or benefit in the income statement. This is expected to result in increased volatility in income tax expense/benefit and corresponding variations in the relationship between income tax expense/benefit and pre-tax income/loss from period to period, the effect of which cannot be predicted with certainty at this time. ASU 2016-09 also removes the requirement to delay recognition of an excess tax benefit until it reduces current taxes payable. Under the new guidance, excess tax benefits will be recorded when they arise. This change is required to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings upon adoption. The Company's cumulative effect adjustment is not expected to have a material impact on retained earnings upon adoption of ASU 2016-09 on January 1, 2017. The Company expects to continue its current accounting practice of estimating forfeitures in determining the amount of stock-based compensation expense to recognize. Therefore, the adoption of ASU 2016-09 is not expected to have an impact on stock-based compensation expense to be recognized on non-vested restricted stock awards. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table discloses supplemental cash flow information about cash paid for interest and income tax payments and refunds. Also disclosed is information about investing activities that affects recognized assets and liabilities but has not yet resulted in cash receipts or payments. Nine months ended September 30, In thousands 2016 2015 Supplemental cash flow information: Cash paid for interest $ 213,969 $ 204,180 Cash paid for income taxes — 27 Cash received for income tax refunds 174 59,117 Non-cash investing activities: Asset retirement obligation additions and revisions, net 1,645 6,267 As of September 30, 2016 and December 31, 2015 , the Company had $186.2 million and $282.8 million , respectively, of accrued capital expenditures included in "Net property and equipment" and "Accounts payable trade" in the condensed consolidated balance sheets. As of September 30, 2015 and December 31, 2014 , the Company had $315.0 million and $797.5 million , respectively, of accrued capital expenditures. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Crude oil and natural gas derivatives The Company may utilize crude oil and natural gas swap and collar derivative contracts to economically hedge against the variability in cash flows associated with future sales of crude oil and natural gas production. While the use of these derivative instruments limits the downside risk of adverse price movements, their use also limits future revenues from upward price movements. The Company recognizes all crude oil and natural gas derivative instruments on the balance sheet as either assets or liabilities measured at fair value. The Company has not designated its crude oil and natural gas derivative instruments as hedges for accounting purposes and, as a result, marks such derivative instruments to fair value and recognizes the changes in fair value in the unaudited condensed consolidated statements of comprehensive loss under the caption “ Gain (loss) on crude oil and natural gas derivatives, net ”, which is a component of "Total revenues". With respect to a crude oil or natural gas fixed price swap contract, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the swap price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the swap price. For a crude oil or natural gas collar contract, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is below the floor price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is above the ceiling price. Neither party is required to make a payment to the other party if the settlement price for any settlement period is between the floor price and the ceiling price. The Company’s crude oil and natural gas derivative contracts are settled based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on Inter-Continental Exchange (“ICE”) pricing for Brent crude oil and natural gas derivative settlements based on NYMEX Henry Hub pricing. The estimated fair value of derivative contracts is based upon various factors, including commodity exchange prices, over-the-counter quotations, and, in the case of collars and written call options, volatility, the risk-free interest rate, and the time to expiration. The calculation of the fair value of collars and written call options requires the use of an option-pricing model. See Note 5. Fair Value Measurements . At September 30, 2016 , the Company had outstanding crude oil and natural gas derivative contracts with respect to future production as set forth in the tables below. The hedged volumes reflected below represent an aggregation of multiple derivative contracts that have varying durations and may not be realized on a ratable basis over the periods indicated. Crude Oil - ICE Brent Period and Type of Contract Bbls Ceiling Price October 2016 - December 2016 Written call options - ICE Brent (1) 368,000 $ 107.70 (1) Written call options represent the ceiling positions remaining from the Company's previous crude oil collar contracts. The floor positions of the collars were liquidated in the fourth quarter of 2014. For these written call options, the Company is required to make a payment to the counterparty if the settlement price for any settlement period is above the ceiling price. Collars Natural Gas - NYMEX Henry Hub Swaps Weighted Average Price Floors Ceilings Weighted Average Price Weighted Average Price Period and Type of Contract MMBtus Range Range October 2016 - December 2016 Swaps - Henry Hub 34,870,000 $ 3.09 January 2017 - December 2017 Swaps - Henry Hub 25,550,000 $ 3.35 Collars - Henry Hub 65,700,000 $2.40 - $3.00 $ 2.47 $2.92 - $3.88 $ 3.08 Crude oil and natural gas derivative gains and losses Cash receipts and payments in the following table reflect the gain or loss on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price of matured contracts. Non-cash gains and losses below represent the change in fair value of derivative instruments which continue to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period. Three months ended September 30, Nine months ended September 30, In thousands 2016 2015 2016 2015 Cash received on derivatives: Natural gas fixed price swaps $ 5,174 $ 5,142 $ 83,141 $ 29,084 Natural gas collars — 6,775 — 19,450 Cash received on derivatives, net 5,174 11,917 83,141 48,534 Non-cash gain (loss) on derivatives: Crude oil written call options — 617 38 4,544 Natural gas fixed price swaps 5,298 36,257 (93,617 ) 33,453 Natural gas collars 5,196 (2,264 ) (14,039 ) (11,986 ) Non-cash gain (loss) on derivatives, net 10,494 34,610 (107,618 ) 26,011 Gain (loss) on crude oil and natural gas derivatives, net $ 15,668 $ 46,527 $ (24,477 ) $ 74,545 Diesel fuel derivatives In March 2016, the Company entered into diesel fuel swap derivative contracts to economically hedge against the variability in cash flows associated with future purchases of diesel fuel for use in drilling activities. The Company has hedged approximately 15 million gallons of diesel fuel over the period from October 2016 to December 2017 at a weighted average price of $1.42 per gallon. With respect to these diesel fuel swap contracts, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is greater than the swap price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is less than the swap price. The diesel fuel swap contracts are settled based upon reported NYMEX settlement prices for New York Harbor ultra-low sulfur diesel fuel. The Company recognizes its diesel fuel derivative instruments on the balance sheet as either assets or liabilities measured at fair value. The estimated fair value is based upon various factors, including commodity exchange prices, over-the-counter quotations, the risk-free interest rate, and time to expiration. The Company has not designated its diesel fuel derivative instruments as hedges for accounting purposes and, as a result, marks the derivative instruments to fair value and recognizes the changes in fair value in the unaudited condensed consolidated statements of comprehensive loss under the caption “Operating costs and expenses — Net gain on sale of assets and other.” For both the three and nine months ended September 30, 2016 , the Company recognized cash gains of $0.1 million on its matured diesel fuel derivatives. For the three and nine months ended September 30, 2016 , the Company recognized a non-cash loss of $0.5 million and a non-cash gain of $2.6 million , respectively, on its diesel fuel derivatives. Balance sheet offsetting of derivative assets and liabilities The Company’s derivative contracts are recorded at fair value in the condensed consolidated balance sheets under the captions “Derivative assets”, “Noncurrent derivative assets”, “Derivative liabilities”, and “Noncurrent derivative liabilities”. Derivative assets and liabilities with the same counterparty that are subject to contractual terms which provide for net settlement are reported on a net basis in the condensed consolidated balance sheets. The following table presents the gross amounts of recognized crude oil, natural gas, and diesel fuel derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets for the periods presented, all at fair value. In thousands September 30, 2016 December 31, 2015 Commodity derivative assets: Gross amounts of recognized assets $ 25,241 $ 120,385 Gross amounts offset on balance sheet (10,978 ) (11,903 ) Net amounts of assets on balance sheet 14,263 108,482 Commodity derivative liabilities: Gross amounts of recognized liabilities (29,057 ) (19,192 ) Gross amounts offset on balance sheet 10,978 11,903 Net amounts of liabilities on balance sheet $ (18,079 ) $ (7,289 ) The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets. In thousands September 30, 2016 December 31, 2015 Derivative assets $ 12,587 $ 93,922 Noncurrent derivative assets 1,676 14,560 Net amounts of assets on balance sheet 14,263 108,482 Derivative liabilities (13,780 ) (3,583 ) Noncurrent derivative liabilities (4,299 ) (3,706 ) Net amounts of liabilities on balance sheet (18,079 ) (7,289 ) Total derivative assets (liabilities), net $ (3,816 ) $ 101,193 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company follows a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: • Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. • Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. • Level 3: Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. A financial instrument’s categorization within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 inputs are given the highest priority in the fair value hierarchy while Level 3 inputs are given the lowest priority. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the hierarchy. As Level 1 inputs generally provide the most reliable evidence of fair value, the Company uses Level 1 inputs when available. The Company’s policy is to recognize transfers between the hierarchy levels as of the beginning of the reporting period in which the event or change in circumstances caused the transfer. Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company's derivative instruments are reported at fair value on a recurring basis. In determining the fair values of swap contracts, a discounted cash flow method is used due to the unavailability of relevant comparable market data for the Company’s exact contracts. The discounted cash flow method estimates future cash flows based on quoted market prices for forward commodity prices and a risk-adjusted discount rate. The fair values of swap contracts are calculated mainly using significant observable inputs (Level 2). Calculation of the fair values of collars and written call options requires the use of an industry-standard option pricing model that considers various inputs including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. These assumptions are observable in the marketplace or can be corroborated by active markets or broker quotes and are therefore designated as Level 2 within the valuation hierarchy. The Company’s calculation of fair value for each of its derivative positions is compared to the counterparty valuation for reasonableness. The following tables summarize the valuation of financial instruments by pricing levels that were accounted for at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 . Fair value measurements at September 30, 2016 using: In thousands Level 1 Level 2 Level 3 Total Derivative assets (liabilities): Swaps $ — $ 13,418 $ — $ 13,418 Collars — (17,234 ) — (17,234 ) Written call options — — — — Total $ — $ (3,816 ) $ — $ (3,816 ) Fair value measurements at December 31, 2015 using: In thousands Level 1 Level 2 Level 3 Total Derivative assets (liabilities): Swaps $ — $ 104,426 $ — $ 104,426 Collars — (3,195 ) — (3,195 ) Written call options — (38 ) — (38 ) Total $ — $ 101,193 $ — $ 101,193 Assets Measured at Fair Value on a Nonrecurring Basis Certain assets are reported at fair value on a nonrecurring basis in the condensed consolidated financial statements. The following methods and assumptions were used to estimate the fair values for those assets. Asset Impairments – Proved crude oil and natural gas properties are reviewed for impairment on a field-by-field basis each quarter. The estimated future cash flows expected in connection with the field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. If the carrying amount of the field exceeds its estimated undiscounted future cash flows, the carrying amount of the field is reduced to its estimated fair value. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. The discounted cash flow method estimates future cash flows based on the Company's estimates of future crude oil and natural gas production, commodity prices based on commodity futures price strips adjusted for differentials, operating costs, and a risk-adjusted discount rate. The fair value of proved crude oil and natural gas properties is calculated using significant unobservable inputs (Level 3). The following table sets forth quantitative information about the significant unobservable inputs used by the Company to calculate the fair value of proved crude oil and natural gas properties using a discounted cash flow method. Unobservable Input Assumption Future production Future production estimates for each property Forward commodity prices Forward NYMEX strip prices through 2020 (adjusted for differentials), escalating 3% per year thereafter Operating costs Estimated costs for the current year, escalating 3% per year thereafter Productive life of field Ranging from 0 to 33 years Discount rate 10% Unobservable inputs to the fair value assessment are reviewed quarterly and are revised as warranted based on a number of factors, including reservoir performance, new drilling, crude oil and natural gas prices, changes in costs, technological advances, new geological or geophysical data, or other economic factors. Fair value measurements of proved properties are reviewed and approved by certain members of the Company’s management. For the three and nine months ended September 30, 2016 and 2015 , the Company determined the carrying amounts of certain proved properties were not recoverable from future cash flows, and therefore, were impaired. Impairments of proved properties totaled $2.9 million for year to date 2016 , all of which were recognized in the third quarter primarily for properties in a non-core area of the North region. The impaired properties were written down to their estimated fair value of approximately $0.7 million as of September 30, 2016 . Impairments of proved properties for the three and nine months ended September 30, 2015 totaled $36.3 million and $111.3 million , respectively, and were primarily concentrated in an emerging area with minimal production and costly reserve additions ( $42.5 million , including $1.3 million in the 2015 third quarter), the Buffalo Red River units ( $26.3 million , all in the 2015 third quarter), the Medicine Pole Hills units ( $22.9 million , including $8.2 million in the 2015 third quarter), various legacy areas in the South region ( $11.4 million , including $0.4 million in the 2015 third quarter), and non-Bakken areas of North Dakota and Montana ( $8.2 million , including $0.1 million in the 2015 third quarter). The impaired properties were written down to their estimated fair value totaling approximately $48.5 million as of September 30, 2015 . Certain unproved crude oil and natural gas properties were impaired during the three and nine months ended September 30, 2016 and 2015 , reflecting recurring amortization of undeveloped leasehold costs on properties the Company expects will not be transferred to proved properties over the lives of the leases based on drilling plans, experience of successful drilling, and the average holding period. The following table sets forth the non-cash impairments of both proved and unproved properties for the indicated periods. Proved and unproved property impairments are recorded under the caption “Property impairments” in the unaudited condensed consolidated statements of comprehensive loss. Three months ended September 30, Nine months ended September 30, In thousands 2016 2015 2016 2015 Proved property impairments $ 2,895 $ 36,302 $ 2,895 $ 111,346 Unproved property impairments 54,794 60,395 199,833 209,784 Total $ 57,689 $ 96,697 $ 202,728 $ 321,130 Financial Instruments Not Recorded at Fair Value The following table sets forth the estimated fair values of financial instruments that are not recorded at fair value in the condensed consolidated financial statements. September 30, 2016 December 31, 2015 In thousands Carrying Estimated Fair Value Carrying Estimated Fair Value Debt: Revolving credit facility $ 565,000 $ 565,000 $ 853,000 $ 853,000 Term loan 498,710 500,000 498,274 500,000 Note payable 12,716 11,400 14,309 12,500 7.375% Senior Notes due 2020 (1) 197,036 205,200 196,574 179,200 7.125% Senior Notes due 2021 (1) 395,923 413,700 395,365 388,300 5% Senior Notes due 2022 1,997,095 1,970,100 1,996,831 1,480,400 4.5% Senior Notes due 2023 1,483,994 1,455,000 1,482,451 1,061,000 3.8% Senior Notes due 2024 990,702 920,000 989,932 700,300 4.9% Senior Notes due 2044 691,162 588,900 691,052 430,500 Total debt $ 6,832,338 $ 6,629,300 $ 7,117,788 $ 5,605,200 (1) As discussed in Note 11. Subsequent Events , on October 4, 2016 the Company announced it will redeem the 7.375% Senior Notes due 2020 and the 7.125% Senior Notes due 2021 on November 10, 2016. The fair values of revolving credit facility borrowings and the term loan approximate face value based on borrowing rates available to the Company for bank loans with similar terms and maturities and are classified as Level 2 in the fair value hierarchy. The fair value of the note payable is determined using a discounted cash flow approach based on the interest rate and payment terms of the note payable and an assumed discount rate. The fair value of the note payable is significantly influenced by the discount rate assumption, which is derived by the Company and is unobservable. Accordingly, the fair value of the note payable is classified as Level 3 in the fair value hierarchy. The fair values of the 7.375% Senior Notes due 2020 (“2020 Notes”), the 7.125% Senior Notes due 2021 (“2021 Notes”), the 5% Senior Notes due 2022 (“2022 Notes”), the 4.5% Senior Notes due 2023 (“2023 Notes”), the 3.8% Senior Notes due 2024 (“2024 Notes”), and the 4.9% Senior Notes due 2044 (“2044 Notes”) are based on quoted market prices and, accordingly, are classified as Level 1 in the fair value hierarchy. The carrying values of all classes of cash and cash equivalents, trade receivables, and trade payables are considered to be representative of their respective fair values due to the short term maturities of those instruments. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt, net of unamortized discounts, premiums, and debt issuance costs totaling $45.5 million and $49.6 million at September 30, 2016 and December 31, 2015 , respectively, consists of the following. In thousands September 30, 2016 December 31, 2015 Revolving credit facility $ 565,000 $ 853,000 Term loan 498,710 498,274 Note payable 12,716 14,309 7.375% Senior Notes due 2020 (1) 197,036 196,574 7.125% Senior Notes due 2021 (1) 395,923 395,365 5% Senior Notes due 2022 1,997,095 1,996,831 4.5% Senior Notes due 2023 1,483,994 1,482,451 3.8% Senior Notes due 2024 990,702 989,932 4.9% Senior Notes due 2044 691,162 691,052 Total debt $ 6,832,338 $ 7,117,788 Less: Current portion of long-term debt 2,197 2,144 Long-term debt, net of current portion $ 6,830,141 $ 7,115,644 (1) As discussed in Note 11. Subsequent Events , on October 4, 2016 the Company announced it will redeem the 7.375% Senior Notes due 2020 and the 7.125% Senior Notes due 2021 on November 10, 2016. Revolving Credit Facility The Company has an unsecured revolving credit facility, maturing on May 16, 2019 , with aggregate commitments totaling $2.75 billion at September 30, 2016 , which may be increased up to a total of $4.0 billion upon agreement between the Company and participating lenders. The Company had $565 million and $853 million of outstanding borrowings on its revolving credit facility at September 30, 2016 and December 31, 2015 , respectively. Borrowings bear interest at market-based interest rates plus a margin based on the terms of the borrowing and the credit ratings assigned to the Company's senior, unsecured, long-term indebtedness. The weighted-average interest rate on outstanding credit facility borrowings at September 30, 2016 was 2.28% . The Company had approximately $2.18 billion of borrowing availability on its revolving credit facility at September 30, 2016 and incurs commitment fees based on currently assigned credit ratings of 0.30% per annum on the daily average amount of unused borrowing availability under its revolving credit facility. The revolving credit facility contains certain restrictive covenants including a requirement that the Company maintain a consolidated net debt to total capitalization ratio of no greater than 0.65 to 1.00. This ratio represents the ratio of net debt (calculated as total face value of debt plus outstanding letters of credit less cash and cash equivalents) divided by the sum of net debt plus total shareholders' equity plus, to the extent resulting in a reduction of total shareholders’ equity, the amount of any non-cash impairment charges incurred, net of any tax effect, after June 30, 2014. The Company was in compliance with the revolving credit facility covenants at September 30, 2016 . Senior Notes The following table summarizes the face values, maturity dates, semi-annual interest payment dates, and optional redemption periods related to the Company’s outstanding senior note obligations at September 30, 2016 . 2020 Notes (3) 2021 Notes (3) 2022 Notes 2023 Notes 2024 Notes 2044 Notes Face value (in thousands) $200,000 $400,000 $2,000,000 $1,500,000 $1,000,000 $700,000 Maturity date Oct 1, 2020 April 1, 2021 Sep 15, 2022 April 15, 2023 June 1, 2024 June 1, 2044 Interest payment dates April 1, Oct 1 April 1, Oct 1 March 15, Sep 15 April 15, Oct 15 June 1, Dec 1 June 1, Dec 1 Call premium redemption period (1) Oct 1, 2015 April 1, 2016 March 15, 2017 — — — Make-whole redemption period (2) — — March 15, 2017 Jan 15, 2023 Mar 1, 2024 Dec 1, 2043 (1) On or after these dates, the Company has the option to redeem all or a portion of its senior notes of the applicable series at the decreasing redemption prices specified in the respective senior note indentures (together, the “Indentures”) plus any accrued and unpaid interest to the date of redemption. (2) At any time prior to these dates, the Company has the option to redeem all or a portion of its senior notes of the applicable series at the “make-whole” redemption prices or amounts specified in the Indentures plus any accrued and unpaid interest to the date of redemption. (3) As discussed in Note 11. Subsequent Events , on October 4, 2016 the Company announced it will redeem these senior notes on November 10, 2016. The Company’s senior notes are not subject to any mandatory redemption or sinking fund requirements. The indentures governing the Company's senior notes contain covenants that, among other things, limit the Company's ability to create liens securing certain indebtedness, enter into certain sale-leaseback transactions, and consolidate, merge or transfer certain assets. The senior note covenants are subject to a number of important exceptions and qualifications. The Company was in compliance with these covenants at September 30, 2016 . Three of the Company’s subsidiaries, Banner Pipeline Company, L.L.C., CLR Asset Holdings, LLC, and The Mineral Resources Company, which have no material assets or operations, fully and unconditionally guarantee the senior notes on a joint and several basis. The Company’s other subsidiaries, the value of whose assets and operations are minor, do not guarantee the senior notes as of September 30, 2016 . Term Loan In November 2015, the Company borrowed $500 million under a three-year term loan agreement, the proceeds of which were used to repay a portion of the borrowings then outstanding on the Company's revolving credit facility. The term loan matures in full on November 4, 2018 and bears interest at a variable market-based interest rate plus a margin based on the terms of the borrowing and the credit ratings assigned to the Company's senior, unsecured, long-term indebtedness. The interest rate on the term loan at September 30, 2016 was 2.02% . The term loan contains certain restrictive covenants including a requirement that the Company maintain a consolidated net debt to total capitalization ratio of no greater than 0.65 to 1.0, consistent with the covenant requirement in the Company's revolving credit facility. The Company was in compliance with the term loan covenants at September 30, 2016 . Note Payable In February 2012, 20 Broadway Associates LLC, a 100% owned subsidiary of the Company, borrowed $22 million under a 10 -year amortizing term loan secured by the Company’s corporate office building in Oklahoma City, Oklahoma. The loan bears interest at a fixed rate of 3.14% per annum. Principal and interest are payable monthly through the loan’s maturity date of February 26, 2022 . Accordingly, approximately $2.2 million is reflected as a current liability under the caption “Current portion of long-term debt” in the condensed consolidated balance sheets as of September 30, 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Included below is a discussion of various future commitments of the Company as of September 30, 2016 . The commitments under these arrangements are not recorded in the accompanying condensed consolidated balance sheets. Drilling commitments – As of September 30, 2016 , the Company had drilling rig contracts with various terms extending to February 2020 to ensure rig availability in its key operating areas. Future commitments as of September 30, 2016 total approximately $250 million , of which $49 million is expected to be incurred in the remainder of 2016 , $134 million in 2017 , $44 million in 2018 , $21 million in 2019 , and $2 million in 2020. Pipeline transportation commitments – The Company has entered into firm transportation commitments to guarantee pipeline access capacity on crude oil and natural gas pipelines. The commitments, which have varying terms extending as far as 2027, require the Company to pay per-unit transportation charges regardless of the amount of pipeline capacity used. Future commitments remaining as of September 30, 2016 under the pipeline transportation arrangements amount to approximately $849 million , of which $55 million is expected to be incurred in the remainder of 2016 , $215 million in 2017 , $208 million in 2018 , $154 million in 2019 , $47 million in 2020, and $170 million thereafter. The Company’s pipeline commitments are for production primarily in the North region. The Company is not committed under these contracts to deliver fixed and determinable quantities of crude oil or natural gas in the future. Litigation – In November 2010, a putative class action was filed in the District Court of Blaine County, Oklahoma by Billy J. Strack and Daniela A. Renner as trustees of certain named trusts and on behalf of other similarly situated parties against the Company. The Petition alleged the Company improperly deducted post-production costs from royalties paid to plaintiffs and other royalty interest owners from crude oil and natural gas wells located in Oklahoma. The plaintiffs alleged a number of claims, including breach of contract, fraud, breach of fiduciary duty, unjust enrichment, and other claims and seek recovery of compensatory damages, interest, punitive damages and attorney fees on behalf of the proposed class. On November 3, 2014, plaintiffs filed an Amended Petition that did not add any substantive claims, but sought a “hybrid class action” in which they sought certification of certain claims for injunctive relief, reserving the right to seek a further class certification on money damages in the future. Plaintiffs filed an Amended Motion for Class Certification on January 9, 2015, that modified the proposed class to royalty owners in Oklahoma production from July 1, 1993, to the present (instead of 1980 to the present) and sought certification of over 45 separate “issues” for injunctive or declaratory relief, again, reserving the right to seek a further class certification of money damages in the future. The Company responded to the petition, its amendment, and the motions for class certification denying the allegations and raising a number of affirmative defenses and legal arguments to each of the claims and filings. Certain discovery was undertaken and the “hybrid” motion was briefed by plaintiffs and the Company. A hearing on the “hybrid” class certification was held on June 1st and 2nd, 2015. On June 11, 2015, the trial court certified a “hybrid” class as requested by plaintiffs. The Company has appealed the trial court’s class certification order, which will be reviewed de novo by the appellate court. The appeal briefing is complete and ready for determination by the court. An unsuccessful mediation was conducted on December 7, 2015. The parties have continued settlement negotiations. If such negotiations are unsuccessful, the Company intends to litigate the case to its conclusion. The Company is not currently able to estimate a reasonably possible loss or range of loss or what impact, if any, the action will have on its financial condition, results of operations or cash flows due to the preliminary status of the matter, the complexity and number of legal and factual issues presented by the matter and uncertainties with respect to, among other things, the nature of the claims and defenses, the potential size of the class, the scope and types of the properties and agreements involved, the production years involved, and the ultimate potential outcome of the matter. Although not currently at issue in the “hybrid” certification, plaintiffs have alleged underpayments in excess of $200 million that they may claim as damages, which may increase with the passage of time, a majority of which would be comprised of interest. The Company disputes plaintiffs’ claims, disputes that the case meets the requirements for a class action and is vigorously defending the case. The Company will continue to assert its defenses to the case as certified as well as any future attempt to certify a money damages class. The Company is involved in various other legal proceedings including, but not limited to, commercial disputes, claims from royalty and surface owners, property damage claims, personal injury claims, disputes with tax authorities and other matters. While the outcome of these legal matters cannot be predicted with certainty, the Company does not expect them to have a material effect on its financial condition, results of operations or cash flows. As of both September 30, 2016 and December 31, 2015 , the Company had recorded a liability in the condensed consolidated balance sheets under the caption “Other noncurrent liabilities” of $6.1 million for various matters, none of which are believed to be individually significant. Environmental risk – Due to the nature of the crude oil and natural gas business, the Company is exposed to possible environmental risks. The Company is not aware of any material environmental issues or claims. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has granted restricted stock to employees and directors pursuant to the Continental Resources, Inc. 2013 Long-Term Incentive Plan ("2013 Plan") as discussed below. The Company’s associated compensation expense, which is included in the caption “General and administrative expenses” in the unaudited condensed consolidated statements of comprehensive loss, was $13.2 million and $12.9 million for the three months ended September 30, 2016 and 2015 , respectively, and $34.3 million and $40.3 million for the nine months ended September 30, 2016 and 2015 , respectively. In May 2013, the Company adopted the 2013 Plan and reserved 19,680,072 shares of common stock that may be issued pursuant to the plan. As of September 30, 2016 , the Company had 15,220,886 shares of common stock available for long-term incentive awards to employees and directors under the 2013 Plan. Restricted stock is awarded in the name of the recipient and constitutes issued and outstanding shares of the Company’s common stock for all corporate purposes during the period of restriction and, except as otherwise provided under the 2013 Plan or agreement relevant to a given award, includes the right to vote the restricted stock or to receive dividends, subject to forfeiture. Restricted stock grants generally vest over periods ranging from one to three years. A summary of changes in non-vested restricted shares outstanding for the nine months ended September 30, 2016 is presented below. Number of Weighted average Non-vested restricted shares outstanding at December 31, 2015 3,249,611 $ 48.20 Granted 2,025,885 21.81 Vested (1,084,804 ) 39.90 Forfeited (151,437 ) 41.13 Non-vested restricted shares outstanding at September 30, 2016 4,039,255 $ 37.46 The grant date fair value of restricted stock represents the closing market price of the Company’s common stock on the date of grant. Compensation expense for a restricted stock grant is a fixed amount determined at the grant date fair value and is recognized ratably over the vesting period as services are rendered by employees and directors. There are no post-vesting restrictions related to the Company’s restricted stock. The fair value at the vesting date of restricted stock that vested during the nine months ended September 30, 2016 was approximately $24.0 million . As of September 30, 2016 , there was approximately $67 million of unrecognized compensation expense related to non-vested restricted stock. This expense is expected to be recognized over a weighted average period of 1.6 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss Adjustments resulting from the process of translating foreign functional currency financial statements into U.S. dollars are included in "Accumulated other comprehensive loss" within shareholders’ equity on the condensed consolidated balance sheets. The following table summarizes the change in accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015 : Three months ended September 30, Nine months ended September 30, In thousands 2016 2015 2016 2015 Beginning accumulated other comprehensive loss, net of tax $ (2,903 ) $ (2,865 ) $ (3,354 ) $ (385 ) Foreign currency translation adjustments 418 (438 ) 869 (2,918 ) Income taxes (1) — — — — Other comprehensive income (loss), net of tax 418 (438 ) 869 (2,918 ) Ending accumulated other comprehensive loss, net of tax $ (2,485 ) $ (3,303 ) $ (2,485 ) $ (3,303 ) (1) A valuation allowance has been recognized against deferred tax assets associated with losses generated by the Company's Canadian operations, thereby resulting in no income taxes on other comprehensive income (loss). |
Property Dispositions (Notes)
Property Dispositions (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Property Dispositions [Abstract] | |
Property Acquisitions and Dispositions [Text Block] | On September 30, 2016, the Company sold non-strategic properties in North Dakota and Montana to a third party for cash proceeds of $214.8 million , with no gain or loss recognized. The sale included approximately 68,000 net acres of leasehold primarily in western Williams County, North Dakota, and approximately 12,000 net acres of leasehold in Roosevelt County, Montana. The sale also included producing properties with production totaling approximately 2,700 barrels of oil equivalent per day. The disposed properties represented an immaterial portion of the Company’s proved reserves. In April 2016, the Company sold approximately 132,000 net acres of undeveloped leasehold acreage located in Wyoming to a third party for cash proceeds of $110.0 million . In connection with the transaction, the Company recognized a pre-tax gain of $96.9 million . The disposed properties had no production or proved reserves. See Note 11. Subsequent Events for discussion of an asset disposition that closed subsequent to September 30, 2016. During the nine months ended September 30, 2015 , the Company sold certain non-strategic properties in various areas to third parties for cash proceeds totaling $33.2 million . The proceeds primarily related to the assignment of certain non-producing leasehold acreage in Oklahoma to a third party for $25.9 million in May 2015. The Company recognized a pre-tax gain on that transaction of $20.5 million . The assigned properties represented an immaterial portion of the Company’s total acreage. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Asset Disposition On October 14, 2016, the Company sold approximately 30,000 net acres of non-strategic leasehold located in the SCOOP play in Oklahoma for cash proceeds totaling $295.6 million . The leasehold is located primarily in the eastern portion of the SCOOP play and includes producing properties with production totaling approximately 700 barrels of oil equivalent per day. In connection with the transaction, the Company expects to recognize a pre-tax gain of approximately $200 million , which will be reflected in fourth quarter 2016 results. The disposed properties represented an immaterial portion of the Company’s proved reserves. Senior Note Redemptions On October 4, 2016, the Company announced it will redeem all of its outstanding 7.375% Senior Notes due 2020 (the “2020 Notes”) and 7.125% Senior Notes due 2021 (the “2021 Notes”) on November 10, 2016. The redemption price for the 2020 Notes will be equal to 102.458% of the principal amount plus accrued and unpaid interest to the redemption date of November 10, 2016 in accordance with the terms of the 2020 Notes and the related indenture under which the 2020 Notes were issued. The aggregate principal amount of the 2020 Notes outstanding is $200 million . The redemption price for the 2021 Notes will be equal to 103.563% of the principal amount plus accrued and unpaid interest to the redemption date of November 10, 2016 in accordance with the terms of the 2021 Notes and the related indenture under which the 2021 Notes were issued. The aggregate principal amount of the 2021 Notes outstanding is $400 million . The aggregate of the principal amounts, redemption premiums, and accrued interest payable upon redemption of the 2020 Notes and 2021 Notes is expected to total approximately $624 million . The Company expects to fund the redemptions using borrowings under its revolving credit facility. Such borrowings will serve to offset the Company's previous reduction of outstanding credit facility borrowings which used proceeds totaling approximately $630 million from asset dispositions completed in 2016 through October 31, 2016, resulting in no net increase in year to date debt associated with the redemptions. The Company expects to record a pre-tax loss on extinguishment of debt related to the redemptions of approximately $26 million , which will be reflected in fourth quarter 2016 results and includes the call premiums and write-off of deferred financing costs and unaccreted debt discounts associated with the notes. |
Basis of Presentation and Sig18
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Description of the Company | The Company's principal business is crude oil and natural gas exploration, development and production with properties primarily located in the North, South, and East regions of the United States. The North region consists of properties north of Kansas and west of the Mississippi River and includes North Dakota Bakken, Montana Bakken and the Red River units. The South region includes all properties south of Nebraska and west of the Mississippi River including various plays in the SCOOP (South Central Oklahoma Oil Province), STACK (Sooner Trend Anadarko Canadian Kingfisher), Northwest Cana, and Arkoma Woodford areas of Oklahoma. The East region is comprised of undeveloped leasehold acreage east of the Mississippi River with no current drilling or production operations. A substantial portion of the Company’s operations are concentrated in the North region, with that region comprising approximately 62% of the Company’s crude oil and natural gas production and approximately 71% of its crude oil and natural gas revenues for the nine months ended September 30, 2016 . The Company's principal producing properties in the North region are located in the Bakken field of North Dakota and Montana. In recent years, the Company has significantly expanded its activity in the South region with its discovery of the SCOOP play and its increased activity in the Northwest Cana and STACK plays. The South region comprised approximately 38% of the Company's crude oil and natural gas production and approximately 29% of its crude oil and natural gas revenues for the nine months ended September 30, 2016 . The Company has focused its operations on the exploration and development of crude oil since the 1980s. For the nine months ended September 30, 2016 , crude oil accounted for approximately 60% of the Company’s total production and approximately 84% of its crude oil and natural gas revenues. |
Basis of Presentation | Basis of presentation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are 100% owned, after all significant intercompany accounts and transactions have been eliminated upon consolidation. This report has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Because this is an interim period filing presented using a condensed format, it does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”), although the Company believes the disclosures are adequate to make the information not misleading. You should read this Quarterly Report on Form 10-Q ("Form 10-Q") together with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (“ 2015 Form 10-K”), which includes a summary of the Company’s significant accounting policies and other disclosures. The condensed consolidated financial statements as of September 30, 2016 and for the three and nine month periods ended September 30, 2016 and 2015 are unaudited. The condensed consolidated balance sheet as of December 31, 2015 was derived from the audited balance sheet included in the 2015 Form 10-K. The Company has evaluated events or transactions through the date this report on Form 10-Q was filed with the SEC in conjunction with its preparation of these condensed consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure and estimation of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates. The most significant of the estimates and assumptions that affect reported results are the estimates of the Company’s crude oil and natural gas reserves, which are used to compute depreciation, depletion, amortization and impairment of proved crude oil and natural gas properties. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation in accordance with U.S. GAAP have been included in these unaudited interim condensed consolidated financial statements. The results of operations for any interim period are not necessarily indicative of the results of operations that may be expected for any other interim period or for an entire year. |
Earnings Per Share | Earnings per share Basic and diluted net loss per share is computed by dividing net loss by the weighted-average number of shares outstanding for the period. In periods where the Company has net income, diluted earnings per share reflects the potential dilution of non-vested restricted stock awards, which are calculated using the treasury stock method. |
Inventories | Inventories Inventory is comprised of crude oil held in storage or as line fill in pipelines and tubular goods and equipment to be used in the Company's exploration and development activities. Crude oil inventories are valued at the lower of cost or market primarily using the first-in, first-out inventory method. Tubular goods and equipment are valued at the lower of cost or market, with cost determined primarily using a weighted average cost method applied to specific classes of inventory items. |
Income Tax | Income taxes Income taxes are accounted for using the liability method under which deferred income taxes are recognized for the future tax effects of temporary differences between financial statement carrying amounts and the tax basis of existing assets and liabilities using the enacted statutory tax rates in effect at period-end. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s policy is to recognize penalties and interest related to unrecognized tax benefits, if any, in income tax expense. A valuation allowance for deferred tax assets is recorded when it is more likely than not that the benefit from the deferred tax asset will not be realized. The Company recorded valuation allowances of $0.7 million and $1.0 million for the three and nine months ended September 30, 2016 , respectively, and $0.9 million and $13.3 million for the three and nine months ended September 30, 2015 , respectively, against deferred tax assets associated with operating loss carryforwards generated by its Canadian subsidiary for which the Company does not expect to realize a benefit. |
New Accounting Pronouncements | New accounting pronouncements not yet adopted Leases – In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) , which requires companies to recognize a right of use asset and related liability on the balance sheet for the rights and obligations arising from leases with durations greater than 12 months. The standard is effective for interim and annual reporting periods beginning after December 15, 2018 and requires adoption by application of a modified retrospective transition approach. The Company continues to evaluate the impact of ASU 2016-02 and is in the process of developing systems and processes to identify, classify, and account for leases within the scope of the new guidance. Adoption of ASU 2016-02 will ultimately result in an increase in long-term assets and liabilities on the Company's balance sheet, the effect of which cannot be predicted with certainty at this time. Stock-based compensation – In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which changes how companies account for certain aspects of share-based payment awards, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and will be adopted either prospectively, retrospectively or using a modified retrospective transition approach depending on the topic covered in the standard. Under ASU 2016-09, on a prospective basis companies will no longer record excess tax benefits and deficiencies in additional paid-in capital. Instead, excess tax benefits and deficiencies will be recognized as income tax expense or benefit in the income statement. This is expected to result in increased volatility in income tax expense/benefit and corresponding variations in the relationship between income tax expense/benefit and pre-tax income/loss from period to period, the effect of which cannot be predicted with certainty at this time. ASU 2016-09 also removes the requirement to delay recognition of an excess tax benefit until it reduces current taxes payable. Under the new guidance, excess tax benefits will be recorded when they arise. This change is required to be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings upon adoption. The Company's cumulative effect adjustment is not expected to have a material impact on retained earnings upon adoption of ASU 2016-09 on January 1, 2017. The Company expects to continue its current accounting practice of estimating forfeitures in determining the amount of stock-based compensation expense to recognize. Therefore, the adoption of ASU 2016-09 is not expected to have an impact on stock-based compensation expense to be recognized on non-vested restricted stock awards. |
Basis of Presentation and Sig19
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Components of Inventories | The components of inventory as of September 30, 2016 and December 31, 2015 consisted of the following: In thousands September 30, 2016 December 31, 2015 Tubular goods and equipment $ 16,080 $ 15,633 Crude oil 76,814 78,518 Total $ 92,894 $ 94,151 |
Calculation of Basic and Diluted Weighted Average Shares and Net Income Per Share | The following table presents the calculation of basic and diluted weighted average shares outstanding and net loss per share for the three and nine months ended September 30, 2016 and 2015 . Three months ended September 30, Nine months ended September 30, In thousands, except per share data 2016 2015 2016 2015 Loss (numerator): Net loss - basic and diluted $ (109,621 ) $ (82,423 ) $ (427,348 ) $ (213,992 ) Weighted average shares (denominator): Weighted average shares - basic 370,483 369,599 370,327 369,499 Non-vested restricted stock (1) — — — — Weighted average shares - diluted 370,483 369,599 370,327 369,499 Net loss per share: Basic $ (0.30 ) $ (0.22 ) $ (1.15 ) $ (0.58 ) Diluted $ (0.30 ) $ (0.22 ) $ (1.15 ) $ (0.58 ) (1) For the three and nine months ended September 30, 2016 , the Company had a net loss and therefore the potential dilutive effect of approximately 2,176,500 and 2,083,000 weighted average non-vested restricted shares, respectively, were not included in the calculation of diluted net loss per share because to do so would have been anti-dilutive to the computations. The Company also had net losses for the three and nine months ended September 30, 2015 , and therefore approximately 688,800 and 1,521,000 weighted average non-vested restricted shares, respectively, were not included in the calculation of diluted net loss per share for those periods. |
Supplemental Cash Flow Inform20
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | The following table discloses supplemental cash flow information about cash paid for interest and income tax payments and refunds. Also disclosed is information about investing activities that affects recognized assets and liabilities but has not yet resulted in cash receipts or payments. Nine months ended September 30, In thousands 2016 2015 Supplemental cash flow information: Cash paid for interest $ 213,969 $ 204,180 Cash paid for income taxes — 27 Cash received for income tax refunds 174 59,117 Non-cash investing activities: Asset retirement obligation additions and revisions, net 1,645 6,267 As of September 30, 2016 and December 31, 2015 , the Company had $186.2 million and $282.8 million , respectively, of accrued capital expenditures included in "Net property and equipment" and "Accounts payable trade" in the condensed consolidated balance sheets. As of September 30, 2015 and December 31, 2014 , the Company had $315.0 million and $797.5 million , respectively, of accrued capital expenditures. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Outstanding Contracts with Respect to Natural Gas | Collars Natural Gas - NYMEX Henry Hub Swaps Weighted Average Price Floors Ceilings Weighted Average Price Weighted Average Price Period and Type of Contract MMBtus Range Range October 2016 - December 2016 Swaps - Henry Hub 34,870,000 $ 3.09 January 2017 - December 2017 Swaps - Henry Hub 25,550,000 $ 3.35 Collars - Henry Hub 65,700,000 $2.40 - $3.00 $ 2.47 $2.92 - $3.88 $ 3.08 |
Realized and Unrealized Gains and Losses on Derivative Instruments | Cash receipts and payments in the following table reflect the gain or loss on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price of matured contracts. Non-cash gains and losses below represent the change in fair value of derivative instruments which continue to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period. Three months ended September 30, Nine months ended September 30, In thousands 2016 2015 2016 2015 Cash received on derivatives: Natural gas fixed price swaps $ 5,174 $ 5,142 $ 83,141 $ 29,084 Natural gas collars — 6,775 — 19,450 Cash received on derivatives, net 5,174 11,917 83,141 48,534 Non-cash gain (loss) on derivatives: Crude oil written call options — 617 38 4,544 Natural gas fixed price swaps 5,298 36,257 (93,617 ) 33,453 Natural gas collars 5,196 (2,264 ) (14,039 ) (11,986 ) Non-cash gain (loss) on derivatives, net 10,494 34,610 (107,618 ) 26,011 Gain (loss) on crude oil and natural gas derivatives, net $ 15,668 $ 46,527 $ (24,477 ) $ 74,545 |
Gross Amounts of Recognized Derivative Assets and Liabilities | The following table presents the gross amounts of recognized crude oil, natural gas, and diesel fuel derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets for the periods presented, all at fair value. In thousands September 30, 2016 December 31, 2015 Commodity derivative assets: Gross amounts of recognized assets $ 25,241 $ 120,385 Gross amounts offset on balance sheet (10,978 ) (11,903 ) Net amounts of assets on balance sheet 14,263 108,482 Commodity derivative liabilities: Gross amounts of recognized liabilities (29,057 ) (19,192 ) Gross amounts offset on balance sheet 10,978 11,903 Net amounts of liabilities on balance sheet $ (18,079 ) $ (7,289 ) |
Reconciles Net Amounts Derivative Assets and Liabilities | The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets. In thousands September 30, 2016 December 31, 2015 Derivative assets $ 12,587 $ 93,922 Noncurrent derivative assets 1,676 14,560 Net amounts of assets on balance sheet 14,263 108,482 Derivative liabilities (13,780 ) (3,583 ) Noncurrent derivative liabilities (4,299 ) (3,706 ) Net amounts of liabilities on balance sheet (18,079 ) (7,289 ) Total derivative assets (liabilities), net $ (3,816 ) $ 101,193 |
ICE Brent [Member] | |
Summary of Outstanding Contracts with Respect to Crude Oil | At September 30, 2016 , the Company had outstanding crude oil and natural gas derivative contracts with respect to future production as set forth in the tables below. The hedged volumes reflected below represent an aggregation of multiple derivative contracts that have varying durations and may not be realized on a ratable basis over the periods indicated. Crude Oil - ICE Brent Period and Type of Contract Bbls Ceiling Price October 2016 - December 2016 Written call options - ICE Brent (1) 368,000 $ 107.70 (1) Written call options represent the ceiling positions remaining from the Company's previous crude oil collar contracts. The floor positions of the collars were liquidated in the fourth quarter of 2014. For these written call options, the Company is required to make a payment to the counterparty if the settlement price for any settlement period is above the ceiling price. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Valuation of Financial Instruments by Pricing Levels | The following tables summarize the valuation of financial instruments by pricing levels that were accounted for at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 . Fair value measurements at September 30, 2016 using: In thousands Level 1 Level 2 Level 3 Total Derivative assets (liabilities): Swaps $ — $ 13,418 $ — $ 13,418 Collars — (17,234 ) — (17,234 ) Written call options — — — — Total $ — $ (3,816 ) $ — $ (3,816 ) Fair value measurements at December 31, 2015 using: In thousands Level 1 Level 2 Level 3 Total Derivative assets (liabilities): Swaps $ — $ 104,426 $ — $ 104,426 Collars — (3,195 ) — (3,195 ) Written call options — (38 ) — (38 ) Total $ — $ 101,193 $ — $ 101,193 |
Quantitative Information about Significant Unobservable Inputs | The following table sets forth quantitative information about the significant unobservable inputs used by the Company to calculate the fair value of proved crude oil and natural gas properties using a discounted cash flow method. Unobservable Input Assumption Future production Future production estimates for each property Forward commodity prices Forward NYMEX strip prices through 2020 (adjusted for differentials), escalating 3% per year thereafter Operating costs Estimated costs for the current year, escalating 3% per year thereafter Productive life of field Ranging from 0 to 33 years Discount rate 10% |
Property Impairments | The following table sets forth the non-cash impairments of both proved and unproved properties for the indicated periods. Proved and unproved property impairments are recorded under the caption “Property impairments” in the unaudited condensed consolidated statements of comprehensive loss. Three months ended September 30, Nine months ended September 30, In thousands 2016 2015 2016 2015 Proved property impairments $ 2,895 $ 36,302 $ 2,895 $ 111,346 Unproved property impairments 54,794 60,395 199,833 209,784 Total $ 57,689 $ 96,697 $ 202,728 $ 321,130 |
Fair Values of Financial Instruments not Recorded at Fair Value | The following table sets forth the estimated fair values of financial instruments that are not recorded at fair value in the condensed consolidated financial statements. September 30, 2016 December 31, 2015 In thousands Carrying Estimated Fair Value Carrying Estimated Fair Value Debt: Revolving credit facility $ 565,000 $ 565,000 $ 853,000 $ 853,000 Term loan 498,710 500,000 498,274 500,000 Note payable 12,716 11,400 14,309 12,500 7.375% Senior Notes due 2020 (1) 197,036 205,200 196,574 179,200 7.125% Senior Notes due 2021 (1) 395,923 413,700 395,365 388,300 5% Senior Notes due 2022 1,997,095 1,970,100 1,996,831 1,480,400 4.5% Senior Notes due 2023 1,483,994 1,455,000 1,482,451 1,061,000 3.8% Senior Notes due 2024 990,702 920,000 989,932 700,300 4.9% Senior Notes due 2044 691,162 588,900 691,052 430,500 Total debt $ 6,832,338 $ 6,629,300 $ 7,117,788 $ 5,605,200 (1) As discussed in Note 11. Subsequent Events , on October 4, 2016 the Company announced it will redeem the 7.375% Senior Notes due 2020 and the 7.125% Senior Notes due 2021 on November 10, 2016. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Maturity Dates, Semi-Annual Interest Payment Dates, and Optional Redemption Periods of Outstanding Senior Note Obligations | The following table summarizes the face values, maturity dates, semi-annual interest payment dates, and optional redemption periods related to the Company’s outstanding senior note obligations at September 30, 2016 . 2020 Notes (3) 2021 Notes (3) 2022 Notes 2023 Notes 2024 Notes 2044 Notes Face value (in thousands) $200,000 $400,000 $2,000,000 $1,500,000 $1,000,000 $700,000 Maturity date Oct 1, 2020 April 1, 2021 Sep 15, 2022 April 15, 2023 June 1, 2024 June 1, 2044 Interest payment dates April 1, Oct 1 April 1, Oct 1 March 15, Sep 15 April 15, Oct 15 June 1, Dec 1 June 1, Dec 1 Call premium redemption period (1) Oct 1, 2015 April 1, 2016 March 15, 2017 — — — Make-whole redemption period (2) — — March 15, 2017 Jan 15, 2023 Mar 1, 2024 Dec 1, 2043 (1) On or after these dates, the Company has the option to redeem all or a portion of its senior notes of the applicable series at the decreasing redemption prices specified in the respective senior note indentures (together, the “Indentures”) plus any accrued and unpaid interest to the date of redemption. (2) At any time prior to these dates, the Company has the option to redeem all or a portion of its senior notes of the applicable series at the “make-whole” redemption prices or amounts specified in the Indentures plus any accrued and unpaid interest to the date of redemption. (3) As discussed in Note 11. Subsequent Events , on October 4, 2016 the Company announced it will redeem these senior notes on November 10, 2016. |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt, net of unamortized discounts, premiums, and debt issuance costs totaling $45.5 million and $49.6 million at September 30, 2016 and December 31, 2015 , respectively, consists of the following. In thousands September 30, 2016 December 31, 2015 Revolving credit facility $ 565,000 $ 853,000 Term loan 498,710 498,274 Note payable 12,716 14,309 7.375% Senior Notes due 2020 (1) 197,036 196,574 7.125% Senior Notes due 2021 (1) 395,923 395,365 5% Senior Notes due 2022 1,997,095 1,996,831 4.5% Senior Notes due 2023 1,483,994 1,482,451 3.8% Senior Notes due 2024 990,702 989,932 4.9% Senior Notes due 2044 691,162 691,052 Total debt $ 6,832,338 $ 7,117,788 Less: Current portion of long-term debt 2,197 2,144 Long-term debt, net of current portion $ 6,830,141 $ 7,115,644 (1) As discussed in Note 11. Subsequent Events , on October 4, 2016 the Company announced it will redeem the 7.375% Senior Notes due 2020 and the 7.125% Senior Notes due 2021 on November 10, 2016. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restricted stock [Member] | |
Summary of Changes in Non-vested Shares of Restricted Stock Outstanding | A summary of changes in non-vested restricted shares outstanding for the nine months ended September 30, 2016 is presented below. Number of Weighted average Non-vested restricted shares outstanding at December 31, 2015 3,249,611 $ 48.20 Granted 2,025,885 21.81 Vested (1,084,804 ) 39.90 Forfeited (151,437 ) 41.13 Non-vested restricted shares outstanding at September 30, 2016 4,039,255 $ 37.46 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the change in accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015 : Three months ended September 30, Nine months ended September 30, In thousands 2016 2015 2016 2015 Beginning accumulated other comprehensive loss, net of tax $ (2,903 ) $ (2,865 ) $ (3,354 ) $ (385 ) Foreign currency translation adjustments 418 (438 ) 869 (2,918 ) Income taxes (1) — — — — Other comprehensive income (loss), net of tax 418 (438 ) 869 (2,918 ) Ending accumulated other comprehensive loss, net of tax $ (2,485 ) $ (3,303 ) $ (2,485 ) $ (3,303 ) (1) A valuation allowance has been recognized against deferred tax assets associated with losses generated by the Company's Canadian operations, thereby resulting in no income taxes on other comprehensive income (loss). |
Organization and Nature of Bu26
Organization and Nature of Business - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |
Percentage of crude oil and natural gas production concentrated in crude oil | 60.00% |
Percentage of crude oil and natural gas revenue concentrated in crude oil | 84.00% |
North Region [Member] | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |
Percentage of operations concentrated in geographic areas | 62.00% |
Percentage of revenues concentrated in geographic areas | 71.00% |
South Region [Member] | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |
Percentage of operations concentrated in geographic areas | 38.00% |
Percentage of revenues concentrated in geographic areas | 29.00% |
Basis of Presentation and Sig27
Basis of Presentation and Significant Accounting Policies - Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Tubular goods and equipment | $ 16,080 | $ 15,633 |
Crude oil | 76,814 | 78,518 |
Total | $ 92,894 | $ 94,151 |
Basis of Presentation and Sig28
Basis of Presentation and Significant Accounting Policies - Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Accounting Policies [Abstract] | |||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,176,500 | 688,800 | 2,083,000 | 1,521,000 | |
Loss (numerator): | |||||
Net loss - basic and diluted | $ (109,621) | $ (82,423) | $ (427,348) | $ (213,992) | |
Weighted average shares - basic | 370,483,000 | 369,599,000 | 370,327,000 | 369,499,000 | |
Non-vested restricted stock (1) | [1] | 0 | 0 | 0 | 0 |
Weighted average shares - diluted | 370,483,000 | 369,599,000 | 370,327,000 | 369,499,000 | |
Net loss per share: | |||||
Basic (in dollars per share) | $ (0.30) | $ (0.22) | $ (1.15) | $ (0.58) | |
Diluted (in dollars per share) | $ (0.30) | $ (0.22) | $ (1.15) | $ (0.58) | |
[1] | For the three and nine months ended September 30, 2016, the Company had a net loss and therefore the potential dilutive effect of approximately 2,176,500 and 2,083,000 weighted average non-vested restricted shares, respectively, were not included in the calculation of diluted net loss per share because to do so would have been anti-dilutive to the computations. The Company also had net losses for the three and nine months ended September 30, 2015, and therefore approximately 688,800 and 1,521,000 weighted average non-vested restricted shares, respectively, were not included in the calculation of diluted net loss per share for those periods. |
Basis of Presentation and Sig29
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 0.7 | $ 0.9 | $ 1 | $ 13.3 |
Supplemental Cash Flow Inform30
Supplemental Cash Flow Information - Summary of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash paid for interest | $ 213,969 | $ 204,180 | ||
Cash paid for income taxes | 0 | 27 | ||
Cash received for income tax refunds | 174 | 59,117 | ||
Noncash Investing and Financing Items [Abstract] | ||||
Accrued capital expenditures | 186,200 | 315,000 | $ 282,800 | $ 797,500 |
Increase (Decrease) in Asset Retirement Obligations | $ 1,645 | $ 6,267 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Outstanding Contracts with Respect to Crude Oil (Detail) - ICE Brent [Member] - Call Option October 2016 to December 2016 [Member] | 9 Months Ended |
Sep. 30, 2016$ / bblbbl | |
Derivative [Line Items] | |
Oil Production Derivative Volume | bbl | 368,000 |
Derivative, Average Price Risk Option Strike Price | $ / bbl | 107.70 |
Derivative Instruments - Summ32
Derivative Instruments - Summary of Outstanding Contracts with Respect to Natural Gas (Detail) - Natural Gas [Member] | 9 Months Ended |
Sep. 30, 2016MMBTU$ / MMBTU$ / bbl | |
October 2016 to December 2016 Swaps [Member] | |
Derivative [Line Items] | |
Natural Gas Production Derivative Volume, MMBtus | MMBTU | 34,870,000 |
Swaps Weighted Average Price | $ / MMBTU | 3.09 |
January 2017 to December 2017 Swaps | |
Derivative [Line Items] | |
Natural Gas Production Derivative Volume, MMBtus | MMBTU | 25,550,000 |
Swaps Weighted Average Price | $ / MMBTU | 3.35 |
January 2017 to December 2017 Collars | |
Derivative [Line Items] | |
Natural Gas Production Derivative Volume, MMBtus | MMBTU | 65,700,000 |
Floors, Weighted Average Price | $ / MMBTU | 2.47 |
Ceilings, Weighted Average Price | $ / MMBTU | 3.08 |
Minimum [Member] | January 2017 to December 2017 Collars | |
Derivative [Line Items] | |
Derivative, Floor Price | $ / bbl | 2.40 |
Derivative, Cap Price | $ / bbl | 2.92 |
Maximum [Member] | January 2017 to December 2017 Collars | |
Derivative [Line Items] | |
Derivative, Floor Price | $ / bbl | 3 |
Derivative, Cap Price | $ / bbl | 3.88 |
Derivative Instruments - Realiz
Derivative Instruments - Realized and Unrealized Gains and Losses on Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Non-cash gain (loss) on derivatives: | ||||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | $ (105,009) | $ 26,011 | ||
Gain (loss) on crude oil and natural gas derivatives, net | $ 15,668 | $ 46,527 | (24,477) | 74,545 |
Diesel Fuel [Member] | ||||
Cash received on derivatives: | ||||
Cash received (paid) on derivatives, net | 100 | |||
Non-cash gain (loss) on derivatives: | ||||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | 500 | 2,600 | ||
Swap [Member] | Natural Gas [Member] | ||||
Cash received on derivatives: | ||||
Cash received (paid) on derivatives, net | 5,174 | 5,142 | 83,141 | 29,084 |
Non-cash gain (loss) on derivatives: | ||||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | 5,298 | 36,257 | (93,617) | 33,453 |
Collars | Natural Gas [Member] | ||||
Cash received on derivatives: | ||||
Cash received (paid) on derivatives, net | 0 | 6,775 | 0 | 19,450 |
Non-cash gain (loss) on derivatives: | ||||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | 5,196 | (2,264) | (14,039) | (11,986) |
Call Option [Member] | Crude Oil [Member] | ||||
Non-cash gain (loss) on derivatives: | ||||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | 0 | 617 | 38 | 4,544 |
Crude Oil and Natural Gas [Member] | ||||
Cash received on derivatives: | ||||
Cash received (paid) on derivatives, net | 5,174 | 11,917 | 83,141 | 48,534 |
Non-cash gain (loss) on derivatives: | ||||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | 10,494 | 34,610 | (107,618) | 26,011 |
Gain (loss) on crude oil and natural gas derivatives, net | $ 15,668 | $ 46,527 | $ (24,477) | $ 74,545 |
Derivative Instruments - Gross
Derivative Instruments - Gross Amounts of Recognized Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 25,241 | $ 120,385 |
Gross amounts offset on balance sheet | (10,978) | (11,903) |
Net amounts of assets on balance sheet | 14,263 | 108,482 |
Gross amounts of recognized liabilities | (29,057) | (19,192) |
Gross amounts offset on balance sheet | 10,978 | 11,903 |
Net amounts of liabilities on balance sheet | $ (18,079) | $ (7,289) |
Derivative Instruments - Reconc
Derivative Instruments - Reconciles Net Amounts Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets | $ 12,587 | $ 93,922 |
Noncurrent derivative assets | 1,676 | 14,560 |
Net amounts of assets on balance sheet | 14,263 | 108,482 |
Derivative liabilities | (13,780) | (3,583) |
Noncurrent derivative liabilities | (4,299) | (3,706) |
Net amounts of liabilities on balance sheet | (18,079) | (7,289) |
Total derivative assets, net | $ (3,816) | $ 101,193 |
Derivative Instruments Summary
Derivative Instruments Summary of Outstanding Contracts with Respect to Diesel Fuel (Details) $ in Thousands, gal in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($)$ / gal | Sep. 30, 2016USD ($)$ / galgal | Sep. 30, 2015USD ($) | |
Derivative [Line Items] | |||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | $ (105,009) | $ 26,011 | |
Diesel Fuel [Member] | |||
Derivative [Line Items] | |||
Cash received (paid) on derivatives, net | $ 100 | ||
Non-cash gain (loss) on crude oil and natural gas derivatives, net | $ 500 | $ 2,600 | |
Diesel Fuel [Member] | July 2016 to December 2017 Swaps [Member] | |||
Derivative [Line Items] | |||
Diesel Fuel Derivative Volume, gallons | gal | 15 | ||
Swaps Weighted Average Price | $ / gal | 1.42 | 1.42 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments by Pricing Levels (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | $ (3,816) | $ 101,193 |
Swap [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 13,418 | 104,426 |
Collars | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | (17,234) | (3,195) |
Call Option [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | (38) |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Swap [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Collars | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Call Option [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | (3,816) | 101,193 |
Fair Value, Inputs, Level 2 [Member] | Swap [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 13,418 | 104,426 |
Fair Value, Inputs, Level 2 [Member] | Collars | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | (17,234) | (3,195) |
Fair Value, Inputs, Level 2 [Member] | Call Option [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | (38) |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Swap [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Collars | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Call Option [Member] | ||
Derivative assets (liabilities): | ||
Derivative assets (liabilities) | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Line Items] | |
Operating cost escalation assumption used in impairment assessment | 3.00% |
Discount factor utilized as standardized measure for future net cash flows | 10.00% |
Minimum [Member] | |
Fair Value Measurements [Line Items] | |
Productive life of field (in years) | 0 years |
Maximum [Member] | |
Fair Value Measurements [Line Items] | |
Productive life of field (in years) | 33 years |
Forward Commodity Prices [Member] | |
Fair Value Measurements [Line Items] | |
Forward commodity price escalation assumption used in impairment assessment | 3.00% |
Fair Value Measurements - Prope
Fair Value Measurements - Property Impairments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property impairments | $ 2,895 | $ 36,302 | $ 2,895 | $ 111,346 |
Unproved property impairments | 54,794 | 60,395 | 199,833 | 209,784 |
Oil and gas property fair value after impairment | 700 | 48,500 | 700 | 48,500 |
Property impairments | $ 57,689 | 96,697 | $ 202,728 | 321,130 |
Emerging Areas [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property impairments | 1,300 | 42,500 | ||
Red River Units [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property impairments | 26,300 | |||
Non-Bakken North Region [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property impairments | 100 | 8,200 | ||
Medicine Pole Hill Units [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property impairments | 8,200 | 22,900 | ||
South Region [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property impairments | $ 400 | $ 11,400 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Instruments not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements [Line Items] | ||
Loans Payable to Bank | $ 498,710 | $ 498,274 |
7.375% Senior Notes due 2020 | ||
Fair Value Measurements [Line Items] | ||
Debt Instrument, stated interest rate | 7.375% | |
Debt Instrument, Maturity Date, Description | 2,020 | |
7.125% Senior Notes due 2021 | ||
Fair Value Measurements [Line Items] | ||
Debt Instrument, stated interest rate | 7.125% | |
Debt Instrument, Maturity Date, Description | 2,021 | |
5% Senior Notes due 2022 | ||
Fair Value Measurements [Line Items] | ||
Debt Instrument, stated interest rate | 5.00% | |
Debt Instrument, Maturity Date, Description | 2,022 | |
4.5% Senior Notes due 2023 | ||
Fair Value Measurements [Line Items] | ||
Debt Instrument, stated interest rate | 4.50% | |
Debt Instrument, Maturity Date, Description | 2,023 | |
3.8% Senior Notes due 2024 | ||
Fair Value Measurements [Line Items] | ||
Debt Instrument, stated interest rate | 3.80% | |
Debt Instrument, Maturity Date, Description | 2,024 | |
4.9% Senior Notes due 2044 | ||
Fair Value Measurements [Line Items] | ||
Debt Instrument, stated interest rate | 4.90% | |
Debt Instrument, Maturity Date, Description | 2,044 | |
Carrying Amount | ||
Fair Value Measurements [Line Items] | ||
Revolving credit facility | $ 565,000 | 853,000 |
Loans Payable to Bank | 498,710 | 498,274 |
Note payable | 12,716 | 14,309 |
Total debt | 6,832,338 | 7,117,788 |
Carrying Amount | 7.375% Senior Notes due 2020 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 197,036 | 196,574 |
Carrying Amount | 7.125% Senior Notes due 2021 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 395,923 | 395,365 |
Carrying Amount | 5% Senior Notes due 2022 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 1,997,095 | 1,996,831 |
Carrying Amount | 4 1/2% Senior Notes Due 2023 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 1,483,994 | 1,482,451 |
Carrying Amount | 3.8% Senior Notes due 2024 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 990,702 | 989,932 |
Carrying Amount | 4.9% Senior Notes due 2044 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 691,162 | 691,052 |
Estimated Fair Value | ||
Fair Value Measurements [Line Items] | ||
Revolving credit facility | 565,000 | 853,000 |
Loans Payable to Bank | 500,000 | 500,000 |
Note payable | 11,400 | 12,500 |
Total debt | 6,629,300 | 5,605,200 |
Estimated Fair Value | 7.375% Senior Notes due 2020 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 205,200 | 179,200 |
Estimated Fair Value | 7.125% Senior Notes due 2021 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 413,700 | 388,300 |
Estimated Fair Value | 5% Senior Notes due 2022 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 1,970,100 | 1,480,400 |
Estimated Fair Value | 4 1/2% Senior Notes Due 2023 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 1,455,000 | 1,061,000 |
Estimated Fair Value | 3.8% Senior Notes due 2024 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | 920,000 | 700,300 |
Estimated Fair Value | 4.9% Senior Notes due 2044 | ||
Fair Value Measurements [Line Items] | ||
Senior notes | $ 588,900 | $ 430,500 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Loans Payable to Bank | $ 498,710 | $ 498,274 |
Less: Current portion of long-term debt | (2,197) | (2,144) |
Long-term debt, net of current portion | $ 6,830,141 | 7,115,644 |
7.375% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 7.375% | |
7.125% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 7.125% | |
5% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 5.00% | |
Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 3.14% | |
Note payable | $ 22,000 | |
3.8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 3.80% | |
4.9% Senior Notes due 2044 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 4.90% | |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 565,000 | 853,000 |
Loans Payable to Bank | 498,710 | 498,274 |
Note payable | 12,716 | 14,309 |
Total debt | 6,832,338 | 7,117,788 |
Carrying Amount | 7.375% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Senior notes | 197,036 | 196,574 |
Carrying Amount | 7.125% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Senior notes | 395,923 | 395,365 |
Carrying Amount | 5% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,997,095 | 1,996,831 |
Carrying Amount | 4 1/2% Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,483,994 | 1,482,451 |
Carrying Amount | 3.8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes | 990,702 | 989,932 |
Carrying Amount | 4.9% Senior Notes due 2044 | ||
Debt Instrument [Line Items] | ||
Senior notes | 691,162 | 691,052 |
Estimated Fair Value | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | 565,000 | 853,000 |
Loans Payable to Bank | 500,000 | 500,000 |
Note payable | 11,400 | 12,500 |
Total debt | 6,629,300 | 5,605,200 |
Estimated Fair Value | 7.375% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Senior notes | 205,200 | 179,200 |
Estimated Fair Value | 7.125% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Senior notes | 413,700 | 388,300 |
Estimated Fair Value | 5% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,970,100 | 1,480,400 |
Estimated Fair Value | 4 1/2% Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,455,000 | 1,061,000 |
Estimated Fair Value | 3.8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes | 920,000 | 700,300 |
Estimated Fair Value | 4.9% Senior Notes due 2044 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 588,900 | $ 430,500 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Loans Payable to Bank | $ 498,710 | $ 498,274 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 45,500 | 49,600 |
Line of credit facility, maturity date | May 16, 2019 | |
Aggregate amount of lender commitments on credit facility | $ 2,750,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | |
Line of credit facility, commitment fee percentage, per annum | 0.30% | |
Current portion of long-term debt | $ 2,197 | 2,144 |
Line of Credit Facility, Covenant Terms | 0.65 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 2.28% | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,180,000 | |
Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 2.02% | |
4.5% Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 4.50% | |
Debt Instrument, Maturity Date, Description | 2,023 | |
Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes Payable | $ 22,000 | |
Loan term | 10 years | |
Debt Instrument, stated interest rate | 3.14% | |
Debt Instrument, Maturity Date | Feb. 26, 2022 | |
7.375% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 7.375% | |
Debt Instrument, Maturity Date, Description | 2,020 | |
7.125% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 7.125% | |
Debt Instrument, Maturity Date, Description | 2,021 | |
5% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 5.00% | |
Debt Instrument, Maturity Date, Description | 2,022 | |
3.8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 3.80% | |
Debt Instrument, Maturity Date, Description | 2,024 | |
4.9% Senior Notes due 2044 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, stated interest rate | 4.90% | |
Debt Instrument, Maturity Date, Description | 2,044 | |
Estimated Fair Value | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | $ 500,000 | 500,000 |
Credit facility | 565,000 | 853,000 |
Notes Payable | 11,400 | 12,500 |
Estimated Fair Value | 7.375% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Senior notes | 205,200 | 179,200 |
Estimated Fair Value | 7.125% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Senior notes | 413,700 | 388,300 |
Estimated Fair Value | 5% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,970,100 | 1,480,400 |
Estimated Fair Value | 3.8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes | 920,000 | 700,300 |
Estimated Fair Value | 4.9% Senior Notes due 2044 | ||
Debt Instrument [Line Items] | ||
Senior notes | 588,900 | 430,500 |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank | 498,710 | 498,274 |
Credit facility | 565,000 | 853,000 |
Notes Payable | 12,716 | 14,309 |
Carrying Amount | 7.375% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Senior notes | 197,036 | 196,574 |
Carrying Amount | 7.125% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Senior notes | 395,923 | 395,365 |
Carrying Amount | 5% Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,997,095 | 1,996,831 |
Carrying Amount | 3.8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes | 990,702 | 989,932 |
Carrying Amount | 4.9% Senior Notes due 2044 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 691,162 | $ 691,052 |
Long-Term Debt Long-Term Debt -
Long-Term Debt Long-Term Debt - Summary of Maturity Dates, Semi-Annual Interest Payment Dates, and Optional Redemption Periods of Outstanding Senior Note Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
2020 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 200,000 |
Maturity date | Oct. 1, 2020 |
Interest payment dates | April 1, Oct 1 |
Call premium redemption period | Oct. 1, 2015 |
2021 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 400,000 |
Maturity date | Apr. 1, 2021 |
Interest payment dates | April 1, Oct 1 |
Call premium redemption period | Apr. 1, 2016 |
2022 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 2,000,000 |
Maturity date | Sep. 15, 2022 |
Interest payment dates | March 15, Sep 15 |
Call premium redemption period | Mar. 15, 2017 |
Debt Instrument, Redemption Period, Start Date | Mar. 15, 2017 |
2023 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1,500,000 |
Maturity date | Apr. 15, 2023 |
Interest payment dates | April 15, Oct 15 |
Debt Instrument, Redemption Period, Start Date | Jan. 15, 2023 |
2024 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1,000,000 |
Maturity date | Jun. 1, 2024 |
Interest payment dates | June 1, Dec 1 |
Debt Instrument, Redemption Period, Start Date | Mar. 1, 2024 |
2044 Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 700,000 |
Maturity date | Jun. 1, 2044 |
Interest payment dates | June 1, Dec 1 |
Debt Instrument, Redemption Period, Start Date | Dec. 1, 2043 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Nov. 30, 2010 | Sep. 30, 2016 | Dec. 31, 2015 | |
Long-term Purchase Commitment [Line Items] | |||
Total future drilling commitments at balance sheet date | $ 250 | ||
Drilling commitments due remainder of current year | 49 | ||
Drilling commitments Year Two | 134 | ||
Drilling Commitments Year Three | 44 | ||
Drilling Commitments Year Four | 21 | ||
Drilling Commitments Year Five | $ 2 | ||
Future Drilling Commitments End Date | 2020-02 | ||
Damages sought in litigation matter | $ 200 | ||
Legal proceedings recorded as a liability under other noncurrent liabilities | $ (6.1) | $ (6.1) | |
Pipeline Transportation of Crude Oil and Natural Gas [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Pipeline commitments, end date | 2,027 | ||
Purchase Obligation, total | $ 849 | ||
Purchase Obligation, due in remainder of current year | 55 | ||
Purchase Obligation, due second year | 215 | ||
Purchase Obligation, due third year | 208 | ||
Purchase Obligation, due fourth year | 154 | ||
Purchase Obligation, due fifth year | 47 | ||
Purchase Obligation, Due after Fifth Year | $ 170 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Non-cash equity compensation | $ 13.2 | $ 12.9 | $ 34.3 | $ 40.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Restricted stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock available to grant | shares | 15,220,886 |
Fair value at vesting date | $ | $ 24 |
Unrecognized compensation expense related to non-vested | $ | $ 67 |
Unrecognized compensation expense related to non-vested, period for recognition, in years | 1 year 7 months 17 days |
Restricted stock [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants vest over periods, in years | 1 year |
Restricted stock [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants vest over periods, in years | 3 years |
2013 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issue | shares | 19,680,072 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Changes in Non Vested Shares of Restricted Stock Outstanding (Detail) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested shares, beginning balance | shares | 3,249,611 |
Granted (unaudited), shares | shares | 2,025,885 |
Vested shares | shares | (1,084,804) |
Forfeited (unaudited), shares | shares | (151,437) |
Non-vested shares, ending balance | shares | 4,039,255 |
Non-vested, weighted average grant-date fair value, beginning of period | $ / shares | $ 48.20 |
Granted, weighted average grant-date fair value | $ / shares | 21.81 |
Vested, weighted average grant-date fair value | $ / shares | 39.90 |
Forfeited, weighted average grant-date fair value | $ / shares | 41.13 |
Non-vested, weighted average grant-date fair value, end of period | $ / shares | $ 37.46 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income [Abstract] | ||||||||
Accumulated other comprehensive loss, net of tax | $ (2,485) | $ (3,303) | $ (2,485) | $ (3,303) | $ (2,903) | $ (3,354) | $ (2,865) | $ (385) |
Foreign currency transaction and translation gain (loss), net of tax | 418 | (438) | 869 | (2,918) | ||||
Translation Adjustment Functional to Reporting Currency, Tax Benefit (Expense) | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax (unaudited) | $ 418 | $ (438) | $ 869 | $ (2,918) |
Property Dispositions (Details)
Property Dispositions (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($)aBoe | Jun. 30, 2016USD ($)a | Sep. 30, 2015USD ($) | |
BAKKEN | |||
Property Dispositions [Line Items] | |||
Proceeds from sale of oil and gas property | $ 214.8 | ||
Production, Barrels of Oil Equivalents | Boe | 2,700 | ||
NORTH DAKOTA | |||
Property Dispositions [Line Items] | |||
Leasehold acreage | a | 68,000 | ||
MONTANA | |||
Property Dispositions [Line Items] | |||
Leasehold acreage | a | 12,000 | ||
WYOMING | |||
Property Dispositions [Line Items] | |||
Proceeds from sale of oil and gas property | $ 110 | ||
Leasehold acreage | a | 132,000 | ||
Gain (loss) on sale of assets | $ 96.9 | ||
Non-core [Member] | |||
Property Dispositions [Line Items] | |||
Proceeds from sale of oil and gas property | $ 33.2 | ||
OKLAHOMA | |||
Property Dispositions [Line Items] | |||
Proceeds from sale of oil and gas property | 25.9 | ||
Gain (loss) on sale of assets | $ 20.5 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | Nov. 10, 2016USD ($) | Dec. 31, 2016USD ($)Boe | Oct. 31, 2016USD ($) | Oct. 14, 2016a | Sep. 30, 2016USD ($) |
2021 Notes [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Face Amount | $ 400,000 | ||||
2020 Notes [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Face Amount | $ 200,000 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Leasehold acreage | a | 30,000 | ||||
Gain (Loss) on Extinguishment of Debt | $ 26,000 | ||||
Gain (loss) on sale of assets | $ 200,000 | ||||
Proceeds from sale of oil and gas property | $ 295,600 | $ 630,000 | |||
Production, Barrels of Oil Equivalents | Boe | 700 | ||||
Total Redemption Amount | $ 624,000 | ||||
Carrying Amount | Subsequent Event [Member] | 7.125% Senior Notes due 2021 | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 103.563% | ||||
Debt Instrument, Face Amount | $ 400,000 | ||||
Carrying Amount | Subsequent Event [Member] | 7.375% Senior Notes due 2020 | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 102.458% | ||||
Debt Instrument, Face Amount | $ 200,000 |