Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-13283 | |
Entity Registrant Name | PENN VIRGINIA CORP | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 23-1184320 | |
Entity Address, Address Line One | 16285 PARK TEN PLACE, SUITE 500 | |
Entity Address, City or Town | HOUSTON | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77084 | |
City Area Code | 713 | |
Local Phone Number | 722-6500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | PVAC | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 15,107,265 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000077159 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Gain on sales of assets, net | $ 16 | $ 4 | $ 41 | $ 79 |
Total revenues | 122,767 | 111,580 | 227,995 | 188,791 |
Operating expenses | ||||
Lease operating | 10,362 | 8,730 | 21,366 | 16,026 |
Gathering, processing and transportation | 6,408 | 4,574 | 10,337 | 7,933 |
Production and ad valorem taxes | 7,579 | 5,795 | 13,271 | 9,887 |
General and administrative | 6,232 | 5,322 | 13,297 | 11,793 |
Depreciation, depletion and amortization | 44,298 | 31,273 | 83,168 | 53,354 |
Total operating expenses | 74,879 | 55,694 | 141,439 | 98,993 |
Operating income (loss) | 47,888 | 55,886 | 86,556 | 89,798 |
Other income (expense) | ||||
Interest expense | (9,056) | (6,150) | (18,534) | (10,751) |
Derivatives | 13,603 | (52,241) | (54,414) | (71,036) |
Other, net | 8 | (16) | 114 | (74) |
Income (loss) before income taxes | 52,443 | (2,521) | 13,722 | 7,937 |
Income tax benefit (expense) | (818) | 0 | (794) | (163) |
Net income (loss) attributable to common shareholders | $ 51,625 | $ (2,521) | $ 12,928 | $ 7,774 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 3.42 | $ (0.17) | $ 0.86 | $ 0.52 |
Diluted (in dollars per share) | $ 3.40 | $ (0.17) | $ 0.85 | $ 0.51 |
Weighted average shares outstanding – basic (in shares) | 15,106 | 15,058 | 15,102 | 15,050 |
Weighted average shares outstanding – diluted (in shares) | 15,162 | 15,058 | 15,174 | 15,171 |
Oil and Gas, Exploration and Production [Member] | ||||
Revenues | ||||
Revenues | $ (114,031) | $ (101,716) | $ (208,843) | $ (172,974) |
Oil and Condensate [Member] | ||||
Revenues | ||||
Revenues | (3,502) | (5,533) | (9,050) | (8,479) |
Natural Gas, Production [Member] | ||||
Revenues | ||||
Revenues | (5,290) | (3,912) | (9,567) | (6,702) |
Product and Service, Other [Member] | ||||
Revenues | ||||
Revenues | $ (72) | $ (415) | $ (494) | $ (557) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 51,625 | $ (2,521) | $ 12,928 | $ 7,774 |
Other comprehensive loss: | ||||
Change in pension and postretirement obligations, net of tax of $0 and $0 in 2016 | (1) | 0 | (2) | 0 |
Total Other Comprehensive Income (Loss), Net of Tax | (1) | 0 | (2) | 0 |
Comprehensive income (loss) | $ 51,624 | $ (2,521) | $ 12,926 | $ 7,774 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in pension and postretirement obligations, net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 12,796 | $ 17,864 |
Accounts receivable, net of allowance for doubtful accounts | 52,471 | 66,038 |
Derivative assets | 7,182 | 34,932 |
Income taxes receivable | 3,707 | 2,471 |
Other current assets | 4,733 | 5,125 |
Total current assets | 80,889 | 126,430 |
Property and equipment, net (full cost method) | 1,038,687 | 927,994 |
Derivative assets | 2,756 | 10,100 |
Deferred income taxes | 0 | 1,949 |
Other assets | 7,412 | 2,481 |
Total assets | 1,129,744 | 1,068,954 |
Current liabilities | ||
Accounts payable and accrued liabilities | 111,993 | 103,700 |
Derivative liabilities | 14,203 | 991 |
Total current liabilities | 126,196 | 104,691 |
Other liabilities | 8,236 | 5,533 |
Deferred income taxes | 81 | 0 |
Derivative liabilities | 2,201 | 0 |
Long-term debt, net | 531,476 | 511,375 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity: | ||
Preferred stock of $0.01 par value – 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock of $0.01 par value – 45,000,000 shares authorized; 15,107,265 and 15,080,594 shares issued as of June 30, 2019 and December 31, 2018, respectively | 151 | 151 |
Paid-in capital | 198,997 | 197,630 |
Retained earnings | 262,326 | 249,492 |
Accumulated other comprehensive income | 80 | 82 |
Total shareholders’ equity | 461,554 | 447,355 |
Total liabilities and shareholders’ equity | $ 1,129,744 | $ 1,068,954 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 100 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Schedule of Stockholders' Equity [Line Items] | ||
Preferred stock, redemption value per share (in dollars per share) | $ 0 | $ 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 15,107,265 | 15,080,594 |
Series A Preferred Stock | ||
Schedule of Stockholders' Equity [Line Items] | ||
Preferred stock, issued | 0 | 0 |
Series B Preferred Stock | ||
Schedule of Stockholders' Equity [Line Items] | ||
Preferred stock, issued | 0 | 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 12,928 | $ 7,774 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 83,168 | 53,354 |
Derivative contracts: | ||
Net losses | 54,414 | 71,036 |
Cash settlements, net | (3,907) | (19,977) |
Deferred income tax expense | 2,030 | 163 |
Gain on sales of assets, net | (41) | (79) |
Non-cash interest expense | 1,748 | 1,644 |
Share-based compensation (equity-classified) | 2,055 | 2,451 |
Other, net | 26 | 26 |
Changes in operating assets and liabilities, net | 1,941 | 4,026 |
Net cash provided by operating activities | 154,362 | 120,418 |
Cash flows from investing activities | ||
Acquisitions, net | 0 | (86,835) |
Capital expenditures | (175,941) | (201,350) |
Proceeds from sales of assets, net | 29 | 2,525 |
Net cash used in investing activities | (175,912) | (285,660) |
Cash flows from financing activities | ||
Proceeds from credit facility borrowings | 32,000 | 166,500 |
Repayment of credit facility borrowings | (13,000) | 0 |
Debt issuance costs paid | (2,518) | (754) |
Net cash provided by financing activities | 16,482 | 165,746 |
Net increase (decrease) in cash and cash equivalents | (5,068) | 504 |
Cash and cash equivalents – beginning of period | 17,864 | 11,017 |
Cash and cash equivalents – end of period | 12,796 | 11,521 |
Cash paid for: | ||
Interest, net of amounts capitalized | 16,784 | 8,953 |
Reorganization items, net | 79 | 442 |
Non-cash investing and financing activities: | ||
Changes in accounts receivable related to acquisitions | 0 | (26,631) |
Changes in other assets related to acquisitions | 0 | (2,469) |
Changes in accrued liabilities related to acquisitions | 0 | (15,099) |
Changes in accrued liabilities related to capital expenditures | 17,397 | 12,231 |
Changes in other liabilities for asset retirement obligations related to acquisitions | $ 0 | $ 382 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Penn Virginia Corporation (together with its consolidated subsidiaries, unless the context otherwise requires, “Penn Virginia,” the “Company,” “we,” “us” or “our”) is an independent oil and gas company engaged in the onshore exploration, development and production of oil, natural gas liquids (“NGLs”) and natural gas. Our current operations consist primarily of drilling unconventional horizontal development wells and operating our producing wells in the Eagle Ford Shale (the “Eagle Ford”) in Gonzales, Lavaca, Fayette and DeWitt Counties in South Texas. On March 21, 2019, we and Denbury Resources Inc. (“Denbury”) entered into a Termination Agreement (the “Termination Agreement”) under which the parties mutually agreed to terminate our previously announced merger agreement. Subject to limited customary exceptions, the Termination Agreement also mutually releases the parties from any claims of liability to one another relating to the contemplated merger transaction. We incurred a total of $ 0.8 million of incremental costs associated with the merger transaction as well as the Termination Agreement during the six months ended June 30, 2019 . These costs are included in the “General and administrative” (“G&A”) expenses caption in our Condensed Consolidated Statement of Operations. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited Condensed Consolidated Financial Statements include the accounts of Penn Virginia and all of our subsidiaries. Intercompany balances and transactions have been eliminated. Our Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Preparation of these statements involves the use of estimates and judgments where appropriate. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of our Condensed Consolidated Financial Statements, have been included. Our Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . Adoption of Recently Issued Accounting Pronouncements Effective January 1, 2019, we adopted and began applying the relevant guidance provided in Accounting Standards Update (“ASU”) 2016–02, Leases (“ASU 2016–02”) and related amendments to GAAP which, together with ASU 2016–02, represent ASC Topic 842, Leases (“ASC Topic 842”). We adopted ASC Topic 842 using the optional transition approach with a charge to the beginning balance of retained earnings as of January 1, 2019 (see Note 9 for the impact and disclosures associated with the adoption of ASC Topic 842). Comparative periods and related disclosures have not been restated for the application of ASC Topic 842. Recently Issued Accounting Pronouncements Pending Adoption In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016–13, Measurement of Credit Losses on Financial Instruments (“ASU 2016–13”), which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016–13 is required to be adopted using the modified retrospective method by January 1, 2020, with early adoption permitted for fiscal periods beginning after December 15, 2018. In contrast to current guidance, which considers current information and events and utilizes a probable threshold (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. ASU 2016–13 will have applicability to our accounts receivable portfolio, particularly those receivables attributable to our joint interest partners which have a higher credit risk than those associated with our traditional customer receivables. At this time, we do not anticipate that the adoption of ASU 2016–13 will have a significant impact on our Consolidated Financial Statements and related disclosures; however, we are continuing to evaluate the requirements as well as monitoring developments regarding ASU 2016–13 that are unique to our industry. We plan to adopt ASU 2016–13 effective January 1, 2020. Going Concern Presumption Our unaudited Condensed Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and other commitments in the normal course of business. Subsequent Events Management has evaluated all of our activities through the issuance date of our Condensed Consolidated Financial Statements and has concluded that no subsequent events have occurred that would require recognition in our Condensed Consolidated Financial Statements or disclosure in the Notes thereto. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2019 | |
Acquisitions [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Hunt Acquisition In December 2017, we entered into a purchase and sale agreement with Hunt Oil Company (“Hunt”) to acquire certain oil and gas assets in the Eagle Ford Shale, primarily in Gonzales County, Texas for $ 86.0 million in cash, subject to adjustments (the “Hunt Acquisition”). The Hunt Acquisition had an effective date of October 1, 2017, and closed on March 1, 2018, at which time we paid cash consideration of $ 84.4 million . In connection with the Hunt Acquisition, we also acquired working interests in certain wells that we previously drilled as operator in which Hunt had rights to participate prior to the transaction closing. Accumulated costs, net of suspended revenues for these wells was $ 13.8 million , which we have reflected as a component of the total net assets acquired. We funded the Hunt Acquisition with borrowings under our credit agreement (the “Credit Facility”). The final settlement of the Hunt Acquisition occurred in July 2018, at which time an additional $ 0.2 million of acquisition costs was allocated from certain working capital components and Hunt transferred $ 1.4 million to us primarily for suspended revenues attributable to the acquired properties. We incurred a total of $ 0.5 million of transaction costs for legal, due diligence and other professional fees associated with the Hunt Acquisition, including $ 0.1 million in 2017 and $ 0.4 million in the first quarter of 2018. These costs have been recognized as a component of our G&A expenses. We accounted for the Hunt Acquisition by applying the acquisition method of accounting as of March 1, 2018. The following table represents the final fair values assigned to the net assets acquired and the total acquisition cost incurred, including consideration transferred to Hunt: Assets Oil and gas properties - proved $ 82,443 Oil and gas properties - unproved 16,339 Liabilities Revenue suspense 1,448 Asset retirement obligations 356 Net assets acquired $ 96,978 Cash consideration paid to Hunt, net $ 82,955 Application of working capital adjustments 245 Accumulated costs, net of suspended revenues, for wells in which Hunt had rights to participate 13,778 Total acquisition costs incurred $ 96,978 Valuation of Acquisitions The fair value of the oil and gas properties acquired in the Hunt Acquisition was measured using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation include estimates of: (i) reserves, (ii) future operating and development costs, (iii) future commodity prices, (iv) future cash flows, (v) the timing of our development plans and (vi) a market-based weighted-average cost of capital. Because many of these inputs are not observable, we have classified the initial fair value estimates as Level 3 inputs as that term is defined in GAAP. Impact of Acquisitions on Actual and Pro Forma Results of Operations The results of operations attributable to the Hunt Acquisition have been included in our Consolidated Financial Statements for the periods after March 1, 2018. The Hunt Acquisition provided revenues and estimated earnings (including revenues less operating expenses and excluding allocations of interest expense and income taxes) of approximately $ 0.4 million and $ 0.2 million , respectively, for the period from March 1, 2018 through March 31, 2018. As the properties and working interests acquired in connection with the Hunt Acquisition are included within our existing Eagle Ford acreage, it is not practical or meaningful to disclose revenues and earnings unique to those assets for periods beyond those during which they were acquired, as they were fully integrated into our regional operations soon after their acquisition. The following table presents unaudited summary pro forma financial information for the six months ended June 30, 2018 , assuming the Hunt Acquisition occurred as of January 1, 2018. The pro forma financial information does not purport to represent what our actual results of operations would have been if the Hunt Acquisition had occurred as of this date, or the results of operations for any future periods. Six Months Ended June 30, 2018 Total revenues $ 194,036 Net income $ 9,886 Net income per share - basic $ 0.66 Net income per share - diluted $ 0.65 Divestiture s Mid-Continent Divestiture In June 2018, we entered into a purchase and sale agreement with a third party to sell all of our Mid-Continent oil and gas properties, located primarily in Oklahoma in the Granite Wash, for $ 6.0 million in cash, subject to customary adjustments. The sale had an effective date of March 1, 2018 and closed on July 31, 2018, and we received net proceeds of $ 6.2 million , of which $ 0.7 million was received in June 2018 as an earnest deposit. The sale proceeds and de-recognition of certain assets and liabilities were recorded as a reduction of our net oil and gas properties. In November 2018, we paid $ 0.5 million , including $ 0.2 million of suspended revenues, to the buyer in connection with the final settlement. The Mid-Continent properties had asset retirement obligations (“AROs”) of $ 0.3 million as well as a net working capital deficit attributable to the oil and gas properties of $ 1.3 million as of July 31, 2018. The net pre-tax operating income attributable to the Mid-Continent assets was $ 0.6 million and $ 1.4 million for the three and six months ended June 30, 2018 . Sales of Undeveloped Acreage, Rights and Other Assets In February 2018, we sold our undeveloped acreage holdings in the Tuscaloosa Marine Shale in Louisiana that were scheduled to expire in 2019. In March 2018, we sold certain undeveloped deep leasehold rights in Oklahoma, and in May 2018, we sold certain pipeline assets in our former Marcellus Shale operating region. We received a combined total of $ 1.7 million for these leasehold and other assets which were applied as a reduction of our net oil and gas properties. |
Accounts Receivable and Revenue
Accounts Receivable and Revenues from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable and Revenues from Contracts with Customers | Accounts Receivable and Revenues from Contracts with Customers Accounts Receivable and Major Customers The following table summarizes our accounts receivable by type as of the dates presented: June 30, December 31, 2019 2018 Customers $ 48,347 $ 59,030 Joint interest partners 3,546 6,404 Other 629 640 52,522 66,074 Less: Allowance for doubtful accounts (51 ) (36 ) $ 52,471 $ 66,038 For the six months ended June 30, 2019 , three customers accounted for $150.0 million , or approximately 66% , of our consolidated product revenues. The revenues generated from these customers during the six months ended June 30, 2019 , were $85.6 million , $37.5 million and $26.9 million , or 38% , 16% and 12% of the consolidated total, respectively. As of June 30, 2019 and December 31, 2018 , $32.4 million and $34.8 million , or approximately 67% and 59% , of our consolidated accounts receivable from customers was related to these customers. No significant uncertainties exist related to the collectability of amounts owed to us by any of these customers. For the six months ended June 30, 2018 , three customers accounted for $157.8 million , or approximately 84% , of our consolidated product revenues. The allowance for doubtful accounts is entirely attributable to certain receivables from joint interest partners. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We utilize derivative instruments to mitigate our financial exposure to commodity price volatility. Our derivative instruments are not formally designated as hedges in the context of GAAP. We typically utilize collars and swaps, which are placed with financial institutions that we believe to be acceptable credit risks, to hedge against the variability in cash flows associated with anticipated sales of our future production. While the use of derivative instruments limits the risk of adverse price movements, such use may also limit future revenues from favorable price movements. The counterparty to a collar or swap contract is required to make a payment to us if the settlement price for any settlement period is below the floor or swap price for such contract. We are required to make a payment to the counterparty if the settlement price for any settlement period is above the ceiling or swap price for such contract. Neither party is required to make a payment to the other party if the settlement price for any settlement period is equal to or greater than the floor price and equal to or less than the ceiling price for such contract. We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for West Texas Intermediate (“ WTI ”), Louisiana Light Sweet (“ LLS ”) and Magellan East Houston (“ MEH ”) crude oil closing prices as of the end of the reporting period. The discounted cash flows utilize discount rates adjusted for the credit risk of our counterparties if the derivative is in an asset position, and our own credit risk if the derivative is in a liability position. We are currently unhedged with respect to NGL and natural gas production. The following table sets forth our commodity derivative positions, presented on a net basis by period of maturity, as of June 30, 2019 : Average Weighted Volume Per Average Fair Value Instrument Day Price Asset Liability Crude Oil: (barrels) ($/barrel) Third quarter 2019 Swaps-WTI 7,397 $ 55.70 $ — $ 1,677 Third quarter 2019 Swaps-LLS 5,000 $ 59.17 — 1,589 Third quarter 2019 Swaps-MEH 1,000 $ 64.00 15 — Fourth quarter 2019 Swaps-WTI 7,398 $ 55.70 — 1,222 Fourth quarter 2019 Swaps-LLS 5,000 $ 59.17 — 1,059 Fourth quarter 2019 Swaps-MEH 1,000 $ 64.00 46 — First quarter 2020 Swaps-WTI 7,000 $ 54.94 — 1,048 First quarter 2020 Swaps-MEH 2,000 $ 61.03 — 108 Second quarter 2020 Swaps-WTI 7,000 $ 54.94 — 375 Second quarter 2020 Swaps-MEH 2,000 $ 61.03 — 75 Third quarter 2020 Swaps-WTI 7,000 $ 54.93 164 — Third quarter 2020 Swaps-MEH 2,000 $ 61.03 — 52 Fourth quarter 2020 Swaps-WTI 7,000 $ 54.93 569 — Fourth quarter 2020 Swaps-MEH 2,000 $ 61.03 — 51 Settlements to be paid in subsequent period 4 Financial Statement Impact of Derivatives The impact of our derivative activities on income is included in “Derivatives” in our Condensed Consolidated Statements of Operations. The following table summarizes the effects of our derivative activities for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Derivative income (losses) $ 13,603 $ (52,241 ) $ (54,414 ) $ (71,036 ) The effects of derivative gains and (losses) and cash settlements are reported as adjustments to reconcile net income to net cash provided by operating activities. These items are recorded in the “Derivative contracts” section of our Condensed Consolidated Statements of Cash Flows under “Net (gains) losses” and “Cash settlements, net.” The following table summarizes the fair values of our derivative instruments presented on a gross basis, as well as the locations of these instruments on our Condensed Consolidated Balance Sheets as of the dates presented: June 30, 2019 December 31, 2018 Derivative Derivative Derivative Derivative Type Balance Sheet Location Assets Liabilities Assets Liabilities Commodity contracts Derivative assets/liabilities – current $ 7,182 $ 14,203 $ 34,932 $ 991 Commodity contracts Derivative assets/liabilities – noncurrent 2,756 2,201 10,100 — $ 9,938 $ 16,404 $ 45,032 $ 991 As of June 30, 2019 , we reported net commodity derivative liabilities of $6.5 million . The contracts associated with this position are with eight |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table summarizes our property and equipment as of the dates presented: June 30, December 31, 2019 2018 Oil and gas properties: Proved $ 1,224,547 $ 1,037,993 Unproved 66,419 63,484 Total oil and gas properties 1,290,966 1,101,477 Other property and equipment 24,588 20,383 Total properties and equipment 1,315,554 1,121,860 Accumulated depreciation, depletion and amortization (276,867 ) (193,866 ) $ 1,038,687 $ 927,994 Unproved property costs of $ 66.4 million and $ 63.5 million have been excluded from amortization as of June 30, 2019 and December 31, 2018 , respectively. An additional $4.2 million and $0.3 million of costs, associated with wells in-progress for which we had not previously recognized any proved undeveloped reserves, were excluded from amortization as of June 30, 2019 and December 31, 2018 . We transferred less than $ 0.1 million and $5.6 million of undeveloped leasehold costs associated with acreage unlikely to be drilled or associated with proved undeveloped reserves, including capitalized interest, from unproved properties to the full cost pool during the six months ended June 30, 2019 and 2018 , respectively. We capitalized internal costs of $ 2.2 million and $1.6 million and interest of $ 2.2 million and $4.7 million during the six months ended June 30, 2019 and 2018 , respectively, in accordance with our accounting policies. Average depreciation, depletion and amortization per barrel of oil equivalent of proved oil and gas properties was $17.49 and $15.36 for the six months ended June 30, 2019 and 2018 , respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table summarizes our debt obligations as of the dates presented: June 30, 2019 December 31, 2018 Principal Unamortized Discount and Deferred Issuance Costs 1, 2 Principal Unamortized Discount and Deferred Issuance Costs 1, 2 Credit facility $ 340,000 $ 321,000 Second lien term loan 200,000 $ 8,524 200,000 $ 9,625 Totals 540,000 $ 8,524 521,000 $ 9,625 Less: Unamortized discount (2,795 ) (3,159 ) Less: Unamortized deferred issuance costs (5,729 ) (6,466 ) Long-term debt, net $ 531,476 $ 511,375 _______________________ 1 Issuance costs of the Credit Facility, which represent costs attributable to the access to credit over its contractual term, have been presented as a component of Other assets (see Note 10) and are being amortized over the term of the Credit Facility using the straight-line method. 2 Discount and issuance costs of the Second Lien Facility are being amortized over the term of the underlying loan using the effective-interest method. Credit Facility The Credit Facility provides a $1.0 billion revolving commitment and $500 million borrowing base and a $25 million sublimit for the issuance of letters of credit. In May 2019, the borrowing base was increased to $500 million from $450 million pursuant to the Borrowing Base Increase Agreement and Amendment No. 6 to the Credit Agreement (the “Sixth Amendment”). In the six months ended June 30, 2019 , we incurred and capitalized approximately $2.5 million of issue and other costs associated with the Sixth Amendment. Availability under the Credit Facility may not exceed the lesser of the aggregate commitments or the borrowing base. The borrowing base under the Credit Facility is redetermined semi-annually, generally in April and October of each year. Additionally, the Credit Facility lenders may, at their discretion, initiate a redetermination at any time during the six-month period between scheduled redeterminations. The Credit Facility is available to us for general corporate purposes, including working capital. We had $0.4 million in letters of credit outstanding as of June 30, 2019 and December 31, 2018 . In connection with the Sixth Amendment, maturity of the Credit Facility was extended to May 2024 from September 2020; provided that in June 2022, unless we have either extended the maturity date of our $200 million Second Lien Credit Agreement dated as of September 29, 2017 (the “Second Lien Facility”) described below to a date that is at least 91 days after the extended maturity date of May 2024 or have repaid our Second Lien Facility in full, the maturity date of the Credit Facility will mean June 2022. Prior to entry into the Sixth Amendment, we received consent from requisite lenders of our Second Lien Facility to extend the maturity of our Credit Facility to May 2024. The outstanding borrowings under the Credit Facility bear interest at a rate equal to, at our option, either (a) a customary reference rate plus an applicable margin ranging from 0.50% to 1.50% ( 2.00% to 3.00% prior to May 2019), determined based on the average availability under the Credit Facility or (b) a customary London interbank offered rate (“LIBOR”) plus an applicable margin ranging from 1.50% to 2.50% ( 3.00% to 4.00% prior to May 2019), determined based on the average availability under the Credit Facility. Interest on reference rate borrowings is payable quarterly in arrears and is computed on the basis of a year of 365/366 days, and interest on LIBOR borrowings is payable every one , three or six months , at our election, and is computed on the basis of a year of 360 days. As of June 30, 2019 , the actual weighted-average interest rate on the outstanding borrowings under the Credit Facility was 4.42% . Unused commitment fees are charged at a rate of 0.375% to 0.50% , depending upon utilization. The Credit Facility is guaranteed by us and all of our subsidiaries (the “Guarantor Subsidiaries”). The guarantees under the Credit Facility are full and unconditional and joint and several. Substantially all of our consolidated assets are held by the Guarantor Subsidiaries. There are no significant restrictions on our ability or any of the Guarantor Subsidiaries to obtain funds through dividends, advances or loans. The obligations under the Credit Facility are secured by a first priority lien on substantially all of our assets. In connection with the Sixth Amendment and effective May 2019, the Credit Facility requires us to maintain (1) a minimum current ratio (as defined in the Credit Facility, which considers the unused portion of the total commitment as a current asset), measured as of the last day of each fiscal quarter of 1.00 to 1.00 and (2) a maximum leverage ratio (consolidated indebtedness to adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses), both as defined in the Credit Facility, measured as of the last day of each fiscal quarter of 4.00 to 1.00. The Credit Facility also contains customary affirmative and negative covenants, including as to compliance with laws (including environmental laws, ERISA and anti-corruption laws), maintenance of required insurance, delivery of quarterly and annual financial statements, oil and gas engineering reports and budgets, maintenance and operation of property (including oil and gas properties), restrictions on the incurrence of liens and indebtedness, merger, consolidation or sale of assets, payment of dividends, and transactions with affiliates and other customary covenants. The Credit Facility contains customary events of default and remedies for credit facilities of this nature. If we do not comply with the financial and other covenants in the Credit Facility, the lenders may, subject to customary cure rights, require immediate payment of all amounts outstanding under the Credit Facility. As of June 30, 2019 , and through the date upon which the Condensed Consolidated Financial Statements were issued, we were in compliance with all of the covenants under the Credit Facility. Second Lien Facility On September 29, 2017, we entered into the Second Lien Facility. We received net proceeds of $187.8 million from the Second Lien Facility net of an original issue discount (“OID”) of $4.0 million and issue costs of $8.2 million . The proceeds from the Second Lien Facility were used to fund a significant acquisition and related fees and expenses. The maturity date under the Second Lien Facility is September 29, 2022. The outstanding borrowings under the Second Lien Facility bear interest at a rate equal to, at our option, either (a) a customary reference rate based on the prime rate plus an applicable margin of 6.00% or (b) a customary LIBOR rate plus an applicable margin of 7.00% . As of June 30, 2019 , the actual interest rate of outstanding borrowings under the Second Lien Facility was 9.41% . Amounts under the Second Lien Facility were borrowed at a price of 98% with an initial interest rate of 8.34% , resulting in an effective interest rate of 9.89% . Interest on reference rate borrowings is payable quarterly in arrears and is computed on the basis of a year of 365/366 days, and interest on eurocurrency borrowings is payable every one or three months (including in three-month intervals if we select a six-month interest period), at our election and is computed on the basis of a 360-day year. We have the right, to the extent permitted under the Credit Facility and an intercreditor agreement between the lenders under the Credit Facility and the lenders under the Second Lien Facility, to prepay loans under the Second Lien Facility at any time, subject to the following prepayment premiums (in addition to customary “breakage” costs with respect to eurocurrency loans): during year one, a customary “make-whole” premium; during year two, 102% of the amount being prepaid; during year three, 101% of the amount being prepaid; and thereafter, no premium. The Second Lien Facility also provides for the following prepayment premiums in the event of a change in control that results in an offer of prepayment that is accepted by the lenders under the Second Lien Facility: during years one and two, 102% of the amount being prepaid; during year three, 101% of the amount being prepaid; and thereafter, no premium. The Second Lien Facility is collateralized by substantially all of the Company’s and its subsidiaries’ assets with lien priority subordinated to the liens securing the Credit Facility. The obligations under the Second Lien Facility are guaranteed by us and the Guarantor Subsidiaries. The Second Lien Facility has no financial covenants, but contains customary affirmative and negative covenants, including as to compliance with laws (including environmental laws, ERISA and anti-corruption laws), maintenance of required insurance, delivery of quarterly and annual financial statements, oil and gas engineering reports and budgets, maintenance and operation of property (including oil and gas properties), restrictions on the incurrence of liens and indebtedness, merger, consolidation or sale of assets, payment of dividends and transactions with affiliates and other customary covenants. As illustrated in the table above, the OID and issue costs of the Second Lien Facility are presented as reductions to the outstanding term loans. These costs are subject to amortization using the interest method over the five -year term of the Second Lien Facility. As of June 30, 2019 , and through the date upon which the Consolidated Financial Statements were issued, we were in compliance with all of the covenants under the Second Lien Facility. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized a federal and state income tax expense for the six months ended June 30, 2019 at the blended rate of 21.6% . The federal and state tax expense was offset by an adjustment to the valuation allowance against our net deferred tax assets resulting in an effective tax rate of 5.8% , which related to Texas deferred tax expense. The effect of the valuation allowance, as well as a reclassification of $ 1.2 million from deferred tax assets to the current income tax receivable for refundable alternative minimum tax (“AMT”) credit carryforwards, was to adjust our deferred tax asset to a deferred tax liability position $ 0.1 million as of June 30, 2019. We recognized a federal income tax expense for the six months ended June 30, 2018 at the blended rate of 21.6% which was similarly offset by a valuation allowance against our net deferred tax assets. We recorded an adjustment of $ 0.2 million to the deferred tax asset related to sequestration of a portion of the aforementioned AMT credit carryforward resulting in an effective tax rate of 2.1% . We considered both the positive and negative evidence in determining that it was more likely than not that some portion or all of our deferred tax assets will not be realized, due primarily to cumulative losses. We had no liability for unrecognized tax benefits as of June 30, 2019 . There were no interest and penalty charges recognized during the periods ended June 30, 2019 and 2018 . Tax years from 2014 forward remain open to examination by the major taxing jurisdictions to which the Company is subject; however, net operating losses originating in prior years are subject to examination when utilized. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Adoption of ASC Topic 842 Effective January 1, 2019, we adopted ASC Topic 842 and have applied the guidance therein to all of our contracts and agreements explicitly identified as leases as well as other contractual arrangements that we have determined to include or otherwise have the characteristics of a lease as defined in ASC Topic 842. As illustrated in the disclosures below, the adoption of ASC Topic 842 resulted in the recognition of certain assets and liabilities on our Condensed Consolidated Balance Sheet and changes in the amounts and timing of lease cost recognition in our Condensed Consolidated Statements of Operations as compared to prior GAAP. We have adopted ASC Topic 842 using the optional transition approach with an adjustment to the beginning balance of retained earnings as of January 1, 2019. Accordingly, our 2019 financial statements are not comparable with respect to leases in effect during all periods prior to January 1, 2019. On January 1, 2019, we recognized operating lease right-of-use (“ROU”) assets of $ 2.5 million and operating lease obligations of $ 2.8 million on our Condensed Consolidated Balance Sheet for operating leases in effect on that date. We recorded an immaterial adjustment to the beginning balance of retained earnings as of January 1, 2019 representing the difference between the operating lease ROU assets and operating lease obligations recognized upon adoption net of amounts already included in our liabilities as of December 31, 2018 that were attributable to straight-line lease expense in excess of amounts paid for certain operating leases. We did not identify any finance leases, as defined in ASC Topic 842, upon the date of initial adoption. Accounting Policies for Leases We determine if an arrangement is a lease at the inception of the underlying contractual arrangement. Operating leases are included in the captions “Other assets,” “Accounts payable and accrued liabilities” and “Other liabilities” on our Condensed Consolidated Balance Sheets and are identified as ROU assets - operating, Current operating lease obligations and Noncurrent operating lease obligations, respectively, below and in Note 10. ROU assets represent our right to use an underlying asset for the lease term and lease obligations represent our obligation to make lease payments arising from the underlying contractual arrangement. Operating lease ROU assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. The operating lease ROU assets include any lease payments made in advance and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Most of our leasing arrangements do not identify or otherwise provide for an implicit interest rate. Accordingly, we utilize a secured incremental borrowing rate based on information available at the commencement date in the determination of the present value of the lease payments. As most of our lease arrangements have terms ranging from two to five years , our secured incremental borrowing rate is primarily based on the rates applicable to our Credit Facility. We have lease arrangements that include lease and certain non-lease components, including amounts for related taxes, insurance, common area maintenance and similar terms. We have elected to apply a practical expedient provided in ASC Topic 842 to not separate the lease and non-lease components. Accordingly, the ROU assets and lease obligations for such leases will include the present value of the estimated payments for the non-lease components over the lease term. Certain of our lease arrangements with contractual terms of 12 months or less are classified as short-term leases. Accordingly, we have elected to not include the underlying ROU assets and lease obligations on our Condensed Consolidated Balance Sheets. The associated costs are aggregated with all of our other lease arrangements and are disclosed in the tables that follow. Certain of our lease arrangements result in variable lease payments which, in accordance with ASC Topic 842, do not give rise to lease obligations. Rather, the basis and terms and conditions upon which such variable lease payments are determined are disclosed in the summary below. Lease Arrangements and Supplemental Disclosures We have lease arrangements for office facilities and certain office equipment, certain field equipment including compressors, drilling rigs, land easements and similar arrangements for rights-of-way, and certain gas gathering and gas lift assets. Our short-term leases are primarily comprised of our contractual arrangements with certain vendors for operated drilling rigs and our field compressors. Our primary variable lease includes our field gas gathering and gas lift agreement with a midstream service provider and the lease payments are charged on a volumetric basis at a contractual fixed rate. The following table summarizes the components of our total lease cost for the periods presented: Three Months Ended Six Months Ended June 30, 2019 Operating lease cost $ 194 $ 357 Short-term lease cost 11,484 23,055 Variable lease cost 5,548 10,643 Less: Amounts charged as drilling costs 1 (10,790 ) (21,641 ) Total lease cost recognized in the Condensed Consolidated Statement of Operations 2 $ 6,436 $ 12,414 ___________________ 1 Represents the combined gross amounts paid and (i) capitalized as drilling costs for our working interest share and (ii) billed to joint interest partners for their working interest share for short-term leases of operated drilling rigs. 2 Includes $ 2.9 million and $ 5.0 million recognized in Gathering, processing and transportation, $ 3.3 million and $ 7.1 million recognized in Lease operating and $ 0.2 million and $ 0.4 million recognized in G&A for the three and six months ended June 30, 2019 , respectively. The following table summarizes supplemental cash flow information related to leases for the six months ended June 30, 2019 : Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 221 ROU assets obtained in exchange for lease obligations: Operating leases 1 $ 3,325 ___________________ 1 Includes $ 2.5 million recognized upon adoption of ASC Topic 842 and $ 0.8 million obtained during the six months ended June 30, 2019. The following table summarizes supplemental balance sheet information related to leases as of June 30, 2019 : ROU assets - operating leases $ 3,059 Current operating lease obligations $ 874 Noncurrent operating lease obligations 2,545 Total operating lease obligations $ 3,419 Weighted-average remaining lease term Operating leases 4.6 Years Weighted-average discount rate Operating leases 5.97 % Maturities of operating lease obligations for the years ending December 31, 2019 $ 437 2020 846 2021 830 2022 834 2023 833 2024 and thereafter 139 Total undiscounted lease payments 3,919 Less: imputed interest (500 ) Total operating lease obligations $ 3,419 |
Additional Balance Sheet Detail
Additional Balance Sheet Detail | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Balance Sheet Detail | Additional Balance Sheet Detail The following table summarizes components of selected balance sheet accounts as of the dates presented: June 30, December 31, 2019 2018 Other current assets: Tubular inventory and well materials $ 3,733 $ 4,061 Prepaid expenses 1,000 1,064 $ 4,733 $ 5,125 Other assets: Deferred issuance costs of the Credit Facility $ 4,308 $ 2,437 Right-of-use assets – operating leases 3,059 — Other 45 44 $ 7,412 $ 2,481 Accounts payable and accrued liabilities: Trade accounts payable $ 15,712 $ 16,507 Drilling costs 39,831 22,434 Royalties and revenue – related 43,903 51,212 Production, ad valorem and other taxes 5,236 2,418 Compensation – related 3,295 4,489 Interest 673 670 Current operating lease obligations 874 — Other 2,469 5,970 $ 111,993 $ 103,700 Other liabilities: Asset retirement obligations $ 4,497 $ 4,314 Noncurrent operating lease obligations 2,545 — Defined benefit pension obligations 802 857 Postretirement health care benefit obligations 392 362 $ 8,236 $ 5,533 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We apply the authoritative accounting provisions included in GAAP for measuring the fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. Our financial instruments that are subject to fair value disclosure consist of cash and cash equivalents, accounts receivable, accounts payable, derivatives and our Credit Facility and Second Lien Facility borrowings. As of June 30, 2019 , the carrying values of all of these financial instruments approximated fair value. Recurring Fair Value Measurements Certain financial assets and liabilities are measured at fair value on a recurring basis on our Condensed Consolidated Balance Sheets. The following tables summarize the valuation of those assets and (liabilities) as of the dates presented: June 30, 2019 Fair Value Fair Value Measurement Classification Description Measurement Level 1 Level 2 Level 3 Assets: Commodity derivative assets – current $ 7,182 $ — $ 7,182 $ — Commodity derivative assets – noncurrent $ 2,756 $ — $ 2,756 $ — Liabilities: Commodity derivative liabilities – current $ (14,203 ) $ — $ (14,203 ) $ — Commodity derivative liabilities – noncurrent $ (2,201 ) $ — $ (2,201 ) $ — December 31, 2018 Fair Value Fair Value Measurement Classification Description Measurement Level 1 Level 2 Level 3 Assets: Commodity derivative assets – current $ 34,932 $ — $ 34,932 $ — Commodity derivative assets - noncurrent $ 10,100 $ — $ 10,100 $ — Liabilities: Commodity derivative liabilities – current $ (991 ) $ — $ (991 ) $ — Commodity derivative liabilities – noncurrent $ — $ — $ — $ — Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one level of the fair value hierarchy to another level. In such instances, the transfer is deemed to have occurred at the beginning of the quarterly period in which the event or change in circumstances that caused the transfer occurred. There were no transfers during the six months ended June 30, 2019 and 2018 . We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below: • Commodity derivatives : We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for WTI , LLS and MEH crude oil closing prices as of the end of the reporting periods. We generally use the income approach, using valuation techniques that convert future cash flows to a single discounted value. Each of these is a Level 2 input. Non-Recurring Fair Value Measurements In addition to the fair value measurements applied with respect to the Hunt Acquisition, as described in Note 3, the most significant non-recurring fair value measurements utilized in the preparation of our Condensed Consolidated Financial Statements are those attributable to the initial determination of AROs associated with the ongoing development of new oil and gas properties. The determination of the fair value of AROs is based upon regional market and facility specific information. The amount of an ARO and the costs capitalized represent the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor after discounting the future cost back to the date that the abandonment obligation was incurred using a rate commensurate with the risk, which approximates our cost of funds. Because these significant fair value inputs are typically not observable, we have categorized the initial estimates as Level 3 inputs. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Gathering and Intermediate Transportation Commitments We have long-term agreements with Republic Midstream, LLC (“Republic Midstream”) and Republic Midstream Marketing, LLC (“Republic Marketing” and, together with Republic Midstream, collectively, “Republic”) to provide gathering and intermediate pipeline transportation services for a substantial portion of our crude oil and condensate production in the South Texas region as well as volume capacity support for certain downstream interstate pipeline transportation. Republic is obligated to gather and transport our crude oil and condensate from within a dedicated area in the Eagle Ford via a gathering system and intermediate takeaway pipeline connecting to a downstream interstate pipeline operated by a third party through 2041. We have a minimum volume commitment (“MVC”) of 8,000 gross barrels of oil per day to Republic through 2031 under the gathering agreement. Under the marketing agreement, we have a commitment to sell 8,000 barrels per day of crude oil (gross) to Republic, or to any third party, utilizing Republic Marketing’s capacity on a downstream interstate pipeline through 2026. Excluding the potential impact of the effects of price escalation from commodity price changes, the minimum fee requirements attributable to the MVC under the gathering and transportation agreement are as follows: $ 6.3 million for the remainder of 2019, $ 13.0 million per year for 2020 through 2025, $ 7.4 million for 2026, $ 3.8 million per year for 2027 through 2030 and $ 2.2 million for 2031. Drilling, Completion and Other Commitments As of June 30, 2019 , we had contractual commitments on a pad-to-pad basis for two drilling rigs. Additionally, we have a one -year agreement, effective January 1, 2019, which can be terminated with 60 days’ notice by either party, to utilize of certain frac services. In the absence of any potential early termination, we have an obligation of $ 9.9 million associated with the remaining minimum daily utilization commitment. Legal and Regulatory We are involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, our management believes that these claims will not have a material effect on our financial position, results of operations or cash flows. As of June 30, 2019 , we had a reserve in the amount of $0.3 million included in “Accounts payable and accrued liabilities” for the estimated settlement of disputes with partners regarding certain transactions that occurred in prior years. As of June 30, 2019 , we had AROs of approximately $4.5 million |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The following tables summarize the components of our shareholders ’ equity and the changes therein as of and for the six months ended June 30, 2019 and 2018 . Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Total Shareholders’ Equity Balance as of December 31, 2018 $ 151 $ 197,630 $ 249,492 $ 82 $ 447,355 Net loss — — (38,697 ) — (38,697 ) Cumulative effect of change in accounting principle 1 — — (94 ) — (94 ) All other changes 2 — 381 — (1 ) 380 Balance as of March 31, 2019 $ 151 $ 198,011 $ 210,701 $ 81 $ 408,944 Net income — — 51,625 — 51,625 All other changes 2 — 986 — (1 ) 985 Balance as of June 30, 2019 $ 151 $ 198,997 $ 262,326 $ 80 $ 461,554 _______________________ 1 Attributable to the adoption of ASC Topic 842 as of January 1, 2019 (see Note 9). 2 Includes equity-classified share-based compensation of $2.1 million during the six months ended June 30, 2019 . During the six months ended June 30, 2019 , 26,671 shares of common stock were issued in connection with the vesting of certain time-vested restricted stock units (“RSUs”), net of shares withheld for income taxes. Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Total Shareholders’ Equity Balance as of December 31, 2017 $ 150 $ 194,123 $ 27,366 $ — $ 221,639 Net income — — 10,295 — 10,295 Cumulative effect of change in accounting principle 1 — — (2,659 ) — (2,659 ) All other changes 2 1 988 — — 989 Balance as of March 31, 2018 $ 151 $ 195,111 $ 35,002 $ — $ 230,264 Net loss — — (2,521 ) — (2,521 ) All other changes 2 — 869 — — 869 Balance as of June 30, 2018 $ 151 $ 195,980 $ 32,481 $ — $ 228,612 _______________________ 1 Reflects a write-off for certain accounts receivable attributable to natural gas imbalances accounted for under the entitlements method prior to January 1, 2018, in connection with the adoption of ASC Topic 606, Revenues from Contracts with Customers . 2 Includes equity-classified share-based compensation of $2.5 million during the six months ended June 30, 2018 . During the six months ended June 30, 2018 , 38,115 and 1,495 |
Share-Based Compensation and Ot
Share-Based Compensation and Other Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation and Other Benefit Plans | Share-Based Compensation and Other Benefit Plans Share-Based Compensation We recognize share-based compensation expense related to our share-based compensation plans as a component of G&A expenses in our Condensed Consolidated Statements of Operations. We reserved a total of 1,424,600 shares of common stock for issuance under the Penn Virginia Corporation Management Incentive Plan for share-based compensation awards. A total of 348,572 RSUs and 98,526 PRSUs have been granted to employees and directors as of June 30, 2019 . We recognized $1.0 million and $2.1 million of expense attributable to the RSUs and PRSUs for the three and six months ended June 30, 2019 , respectively, and $0.9 million and $2.5 million for the three and six months ended June 30, 2018 , respectively. Approximately $ 0.6 million of the expense for the six months ended June 30, 2018 was attributable to the accelerated vesting of certain awards of our former Executive Chairman upon his retirement. We also paid him $ 0.3 million for certain transition and support services during this period in connection with his retirement. In the six months ended June 30, 2018 , we granted 17,456 RSUs to certain employees with an average grant-date fair value of $43.43 per RSU. A total of 1,132 equity awards were granted during the six months ended June 30, 2019 with an average grant-date fair value of $43.06 . The RSUs are being charged to expense on a straight-line basis over a range of four to five years . In the six months ended June 30, 2019 and 2018 , 26,671 and 38,115 shares were issued upon vesting/settlement of equity awards, net of shares withheld for income taxes, respectively. No PRSUs were granted during the six months ended June 30, 2019 or 2018 . In the six months ended June 30, 2018 , 1,495 shares were issued upon vesting/settlement of equity awards, net of shares withheld for income taxes. The PRSUs were granted collectively in two to three separate tranches with individual three -year performance periods beginning in January 2017, 2018 and 2019, respectively. Vesting of the PRSUs can range from zero to 200 percent of the original grant based on the performance of our common stock relative to an industry index. Due to their market condition, the PRSUs are being charged to expense using graded vesting over a maximum of five years . The fair value of each PRSU award was estimated on their applicable grant date using a Monte Carlo simulation with a range of $47.70 to $65.28 per PRSU. Expected volatilities were based on historical volatilities and range from 59.63% to 62.18% . A risk-free rate of interest with a range of 1.44% to 1.51% was utilized, which is equivalent to the yield, as of the measurement date, of the zero-coupon U.S. Treasury bill commensurate with the longest remaining performance measurement period for each tranche. We assumed no payment of dividends during the performance periods. Other Benefit Plans We maintain the Penn Virginia Corporation and Affiliated Companies Employees 401(k) Plan (the “401(k) Plan”), a defined contribution plan, which covers substantially all of our employees. We recognized $0.1 million and $0.3 million of expense attributable to the 401(k) Plan for the three and six months ended June 30, 2019 , respectively, and $0.2 million and $0.3 million for the three and six months ended June 30, 2018 , respectively. The charges for the 401(k) Plan are recorded as a component of “G&A expenses” in our Condensed Consolidated Statements of Operation. We maintain unqualified legacy defined benefit pension and defined benefit postretirement plans that cover a limited number of former employees, all of whom retired prior to 2000. The combined expense recognized with respect to these plans was less than $0.1 million for each of the three and six months ended June 30, 2019 and 2018 . The charges for these plans are recorded as a component of “Other income (expense)” in our Condensed Consolidated Statements of Operation. |
Interest Expense
Interest Expense | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Interest Expense | Interest Expense The following table summarizes the components of interest expense for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest on borrowings and related fees $ 9,304 $ 7,730 $ 19,015 $ 13,778 Accretion of original issue discount 1 183 168 363 333 Amortization of debt issuance costs 644 680 1,385 1,311 Capitalized interest (1,075 ) (2,428 ) (2,229 ) (4,671 ) $ 9,056 $ 6,150 $ 18,534 $ 10,751 ___________________ 1 Attributable to the Second Lien Facility (see Note 7). |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings per share for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) - basic and diluted $ 51,625 $ (2,521 ) $ 12,928 $ 7,774 Weighted-average shares – basic 15,106 15,058 15,102 15,050 Effect of dilutive securities 1 56 — 72 121 Weighted-average shares – diluted 15,162 15,058 15,174 15,171 _______________________ 1 For the three months ended June 30, 2018 , approximately 0.1 million |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited Condensed Consolidated Financial Statements include the accounts of Penn Virginia and all of our subsidiaries. Intercompany balances and transactions have been eliminated. Our Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Preparation of these statements involves the use of estimates and judgments where appropriate. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of our Condensed Consolidated Financial Statements, have been included. Our Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . Adoption of Recently Issued Accounting Pronouncements Effective January 1, 2019, we adopted and began applying the relevant guidance provided in Accounting Standards Update (“ASU”) 2016–02, Leases (“ASU 2016–02”) and related amendments to GAAP which, together with ASU 2016–02, represent ASC Topic 842, Leases (“ASC Topic 842”). We adopted ASC Topic 842 using the optional transition approach with a charge to the beginning balance of retained earnings as of January 1, 2019 (see Note 9 for the impact and disclosures associated with the adoption of ASC Topic 842). Comparative periods and related disclosures have not been restated for the application of ASC Topic 842. Recently Issued Accounting Pronouncements Pending Adoption In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016–13, Measurement of Credit Losses on Financial Instruments (“ASU 2016–13”), which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016–13 is required to be adopted using the modified retrospective method by January 1, 2020, with early adoption permitted for fiscal periods beginning after December 15, 2018. In contrast to current guidance, which considers current information and events and utilizes a probable threshold (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. ASU 2016–13 will have applicability to our accounts receivable portfolio, particularly those receivables attributable to our joint interest partners which have a higher credit risk than those associated with our traditional customer receivables. At this time, we do not anticipate that the adoption of ASU 2016–13 will have a significant impact on our Consolidated Financial Statements and related disclosures; however, we are continuing to evaluate the requirements as well as monitoring developments regarding ASU 2016–13 that are unique to our industry. We plan to adopt ASU 2016–13 effective January 1, 2020. Going Concern Presumption Our unaudited Condensed Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and other commitments in the normal course of business. Subsequent Events Management has evaluated all of our activities through the issuance date of our Condensed Consolidated Financial Statements and has concluded that no subsequent events have occurred that would require recognition in our Condensed Consolidated Financial Statements or disclosure in the Notes thereto. |
New Accounting Pronouncements | Adoption of Recently Issued Accounting Pronouncements Effective January 1, 2019, we adopted and began applying the relevant guidance provided in Accounting Standards Update (“ASU”) 2016–02, Leases (“ASU 2016–02”) and related amendments to GAAP which, together with ASU 2016–02, represent ASC Topic 842, Leases (“ASC Topic 842”). We adopted ASC Topic 842 using the optional transition approach with a charge to the beginning balance of retained earnings as of January 1, 2019 (see Note 9 for the impact and disclosures associated with the adoption of ASC Topic 842). Comparative periods and related disclosures have not been restated for the application of ASC Topic 842. Recently Issued Accounting Pronouncements Pending Adoption In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016–13, Measurement of Credit Losses on Financial Instruments |
Fair Value Measurements | We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below: • Commodity derivatives : We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for WTI , LLS and MEH crude oil closing prices as of the end of the reporting periods. We generally use the income approach, using valuation techniques that convert future cash flows to a single discounted value. Each of these is a Level 2 input. Non-Recurring Fair Value Measurements In addition to the fair value measurements applied with respect to the Hunt Acquisition, as described in Note 3, the most significant non-recurring fair value measurements utilized in the preparation of our Condensed Consolidated Financial Statements are those attributable to the initial determination of AROs associated with the ongoing development of new oil and gas properties. The determination of the fair value of AROs is based upon regional market and facility specific information. The amount of an ARO and the costs capitalized represent the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor after discounting the future cost back to the date that the abandonment obligation was incurred using a rate commensurate with the risk, which approximates our cost of funds. Because these significant fair value inputs are typically not observable, we have categorized the initial estimates as Level 3 inputs. We apply the authoritative accounting provisions included in GAAP for measuring the fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. Our financial instruments that are subject to fair value disclosure consist of cash and cash equivalents, accounts receivable, accounts payable, derivatives and our Credit Facility and Second Lien Facility borrowings. As of June 30, 2019 , the carrying values of all of these financial instruments approximated fair value. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Acquisitions [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | We accounted for the Hunt Acquisition by applying the acquisition method of accounting as of March 1, 2018. The following table represents the final fair values assigned to the net assets acquired and the total acquisition cost incurred, including consideration transferred to Hunt: Assets Oil and gas properties - proved $ 82,443 Oil and gas properties - unproved 16,339 Liabilities Revenue suspense 1,448 Asset retirement obligations 356 Net assets acquired $ 96,978 Cash consideration paid to Hunt, net $ 82,955 Application of working capital adjustments 245 Accumulated costs, net of suspended revenues, for wells in which Hunt had rights to participate 13,778 Total acquisition costs incurred $ 96,978 |
Business Acquisition, Pro Forma Information | The pro forma financial information does not purport to represent what our actual results of operations would have been if the Hunt Acquisition had occurred as of this date, or the results of operations for any future periods. Six Months Ended June 30, 2018 Total revenues $ 194,036 Net income $ 9,886 Net income per share - basic $ 0.66 Net income per share - diluted $ 0.65 |
Accounts Receivable and Reven_2
Accounts Receivable and Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | The following table summarizes our accounts receivable by type as of the dates presented: June 30, December 31, 2019 2018 Customers $ 48,347 $ 59,030 Joint interest partners 3,546 6,404 Other 629 640 52,522 66,074 Less: Allowance for doubtful accounts (51 ) (36 ) $ 52,471 $ 66,038 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Positions | The following table sets forth our commodity derivative positions, presented on a net basis by period of maturity, as of June 30, 2019 : Average Weighted Volume Per Average Fair Value Instrument Day Price Asset Liability Crude Oil: (barrels) ($/barrel) Third quarter 2019 Swaps-WTI 7,397 $ 55.70 $ — $ 1,677 Third quarter 2019 Swaps-LLS 5,000 $ 59.17 — 1,589 Third quarter 2019 Swaps-MEH 1,000 $ 64.00 15 — Fourth quarter 2019 Swaps-WTI 7,398 $ 55.70 — 1,222 Fourth quarter 2019 Swaps-LLS 5,000 $ 59.17 — 1,059 Fourth quarter 2019 Swaps-MEH 1,000 $ 64.00 46 — First quarter 2020 Swaps-WTI 7,000 $ 54.94 — 1,048 First quarter 2020 Swaps-MEH 2,000 $ 61.03 — 108 Second quarter 2020 Swaps-WTI 7,000 $ 54.94 — 375 Second quarter 2020 Swaps-MEH 2,000 $ 61.03 — 75 Third quarter 2020 Swaps-WTI 7,000 $ 54.93 164 — Third quarter 2020 Swaps-MEH 2,000 $ 61.03 — 52 Fourth quarter 2020 Swaps-WTI 7,000 $ 54.93 569 — Fourth quarter 2020 Swaps-MEH 2,000 $ 61.03 — 51 Settlements to be paid in subsequent period 4 |
Impact of Derivative Activities on Condensed Consolidated Statements of Income | The impact of our derivative activities on income is included in “Derivatives” in our Condensed Consolidated Statements of Operations. The following table summarizes the effects of our derivative activities for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Derivative income (losses) $ 13,603 $ (52,241 ) $ (54,414 ) $ (71,036 ) |
Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets | The following table summarizes the fair values of our derivative instruments presented on a gross basis, as well as the locations of these instruments on our Condensed Consolidated Balance Sheets as of the dates presented: June 30, 2019 December 31, 2018 Derivative Derivative Derivative Derivative Type Balance Sheet Location Assets Liabilities Assets Liabilities Commodity contracts Derivative assets/liabilities – current $ 7,182 $ 14,203 $ 34,932 $ 991 Commodity contracts Derivative assets/liabilities – noncurrent 2,756 2,201 10,100 — $ 9,938 $ 16,404 $ 45,032 $ 991 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | The following table summarizes our property and equipment as of the dates presented: June 30, December 31, 2019 2018 Oil and gas properties: Proved $ 1,224,547 $ 1,037,993 Unproved 66,419 63,484 Total oil and gas properties 1,290,966 1,101,477 Other property and equipment 24,588 20,383 Total properties and equipment 1,315,554 1,121,860 Accumulated depreciation, depletion and amortization (276,867 ) (193,866 ) $ 1,038,687 $ 927,994 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes our debt obligations as of the dates presented: June 30, 2019 December 31, 2018 Principal Unamortized Discount and Deferred Issuance Costs 1, 2 Principal Unamortized Discount and Deferred Issuance Costs 1, 2 Credit facility $ 340,000 $ 321,000 Second lien term loan 200,000 $ 8,524 200,000 $ 9,625 Totals 540,000 $ 8,524 521,000 $ 9,625 Less: Unamortized discount (2,795 ) (3,159 ) Less: Unamortized deferred issuance costs (5,729 ) (6,466 ) Long-term debt, net $ 531,476 $ 511,375 _______________________ 1 Issuance costs of the Credit Facility, which represent costs attributable to the access to credit over its contractual term, have been presented as a component of Other assets (see Note 10) and are being amortized over the term of the Credit Facility using the straight-line method. 2 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table summarizes the components of our total lease cost for the periods presented: Three Months Ended Six Months Ended June 30, 2019 Operating lease cost $ 194 $ 357 Short-term lease cost 11,484 23,055 Variable lease cost 5,548 10,643 Less: Amounts charged as drilling costs 1 (10,790 ) (21,641 ) Total lease cost recognized in the Condensed Consolidated Statement of Operations 2 $ 6,436 $ 12,414 ___________________ 1 Represents the combined gross amounts paid and (i) capitalized as drilling costs for our working interest share and (ii) billed to joint interest partners for their working interest share for short-term leases of operated drilling rigs. 2 Includes $ 2.9 million and $ 5.0 million recognized in Gathering, processing and transportation, $ 3.3 million and $ 7.1 million recognized in Lease operating and $ 0.2 million and $ 0.4 million recognized in G&A for the three and six months ended June 30, 2019 , respectively. |
Schedule of Supplemental Cash Flow Information Related to Leases | The following table summarizes supplemental cash flow information related to leases for the six months ended June 30, 2019 : Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 221 ROU assets obtained in exchange for lease obligations: Operating leases 1 $ 3,325 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 221 ROU assets obtained in exchange for lease obligations: Operating leases 1 $ 3,325 ___________________ 1 Includes $ 2.5 million recognized upon adoption of ASC Topic 842 and $ 0.8 million obtained during the six months ended June 30, 2019. The following table summarizes supplemental balance sheet information related to leases as of June 30, 2019 : ROU assets - operating leases $ 3,059 Current operating lease obligations $ 874 Noncurrent operating lease obligations 2,545 Total operating lease obligations $ 3,419 Weighted-average remaining lease term Operating leases 4.6 Years Weighted-average discount rate Operating leases 5.97 % Maturities of operating lease obligations for the years ending December 31, 2019 $ 437 2020 846 2021 830 2022 834 2023 833 2024 and thereafter 139 Total undiscounted lease payments 3,919 Less: imputed interest (500 ) Total operating lease obligations $ 3,419 |
Additional Balance Sheet Deta_2
Additional Balance Sheet Detail (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Selected Balance Sheet Accounts | The following table summarizes components of selected balance sheet accounts as of the dates presented: June 30, December 31, 2019 2018 Other current assets: Tubular inventory and well materials $ 3,733 $ 4,061 Prepaid expenses 1,000 1,064 $ 4,733 $ 5,125 Other assets: Deferred issuance costs of the Credit Facility $ 4,308 $ 2,437 Right-of-use assets – operating leases 3,059 — Other 45 44 $ 7,412 $ 2,481 Accounts payable and accrued liabilities: Trade accounts payable $ 15,712 $ 16,507 Drilling costs 39,831 22,434 Royalties and revenue – related 43,903 51,212 Production, ad valorem and other taxes 5,236 2,418 Compensation – related 3,295 4,489 Interest 673 670 Current operating lease obligations 874 — Other 2,469 5,970 $ 111,993 $ 103,700 Other liabilities: Asset retirement obligations $ 4,497 $ 4,314 Noncurrent operating lease obligations 2,545 — Defined benefit pension obligations 802 857 Postretirement health care benefit obligations 392 362 $ 8,236 $ 5,533 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize the valuation of those assets and (liabilities) as of the dates presented: June 30, 2019 Fair Value Fair Value Measurement Classification Description Measurement Level 1 Level 2 Level 3 Assets: Commodity derivative assets – current $ 7,182 $ — $ 7,182 $ — Commodity derivative assets – noncurrent $ 2,756 $ — $ 2,756 $ — Liabilities: Commodity derivative liabilities – current $ (14,203 ) $ — $ (14,203 ) $ — Commodity derivative liabilities – noncurrent $ (2,201 ) $ — $ (2,201 ) $ — December 31, 2018 Fair Value Fair Value Measurement Classification Description Measurement Level 1 Level 2 Level 3 Assets: Commodity derivative assets – current $ 34,932 $ — $ 34,932 $ — Commodity derivative assets - noncurrent $ 10,100 $ — $ 10,100 $ — Liabilities: Commodity derivative liabilities – current $ (991 ) $ — $ (991 ) $ — Commodity derivative liabilities – noncurrent $ — $ — $ — $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | The following tables summarize the components of our shareholders ’ equity and the changes therein as of and for the six months ended June 30, 2019 and 2018 . Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Total Shareholders’ Equity Balance as of December 31, 2018 $ 151 $ 197,630 $ 249,492 $ 82 $ 447,355 Net loss — — (38,697 ) — (38,697 ) Cumulative effect of change in accounting principle 1 — — (94 ) — (94 ) All other changes 2 — 381 — (1 ) 380 Balance as of March 31, 2019 $ 151 $ 198,011 $ 210,701 $ 81 $ 408,944 Net income — — 51,625 — 51,625 All other changes 2 — 986 — (1 ) 985 Balance as of June 30, 2019 $ 151 $ 198,997 $ 262,326 $ 80 $ 461,554 _______________________ 1 Attributable to the adoption of ASC Topic 842 as of January 1, 2019 (see Note 9). 2 Includes equity-classified share-based compensation of $2.1 million during the six months ended June 30, 2019 . During the six months ended June 30, 2019 , 26,671 shares of common stock were issued in connection with the vesting of certain time-vested restricted stock units (“RSUs”), net of shares withheld for income taxes. Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income Total Shareholders’ Equity Balance as of December 31, 2017 $ 150 $ 194,123 $ 27,366 $ — $ 221,639 Net income — — 10,295 — 10,295 Cumulative effect of change in accounting principle 1 — — (2,659 ) — (2,659 ) All other changes 2 1 988 — — 989 Balance as of March 31, 2018 $ 151 $ 195,111 $ 35,002 $ — $ 230,264 Net loss — — (2,521 ) — (2,521 ) All other changes 2 — 869 — — 869 Balance as of June 30, 2018 $ 151 $ 195,980 $ 32,481 $ — $ 228,612 _______________________ 1 Reflects a write-off for certain accounts receivable attributable to natural gas imbalances accounted for under the entitlements method prior to January 1, 2018, in connection with the adoption of ASC Topic 606, Revenues from Contracts with Customers . 2 Includes equity-classified share-based compensation of $2.5 million during the six months ended June 30, 2018 . During the six months ended June 30, 2018 , 38,115 and 1,495 |
Interest Expense (Tables)
Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Interest Expense Net Disclosure | The following table summarizes the components of interest expense for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest on borrowings and related fees $ 9,304 $ 7,730 $ 19,015 $ 13,778 Accretion of original issue discount 1 183 168 363 333 Amortization of debt issuance costs 644 680 1,385 1,311 Capitalized interest (1,075 ) (2,428 ) (2,229 ) (4,671 ) $ 9,056 $ 6,150 $ 18,534 $ 10,751 ___________________ 1 Attributable to the Second Lien Facility (see Note 7). |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Components of Calculation of Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings per share for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) - basic and diluted $ 51,625 $ (2,521 ) $ 12,928 $ 7,774 Weighted-average shares – basic 15,106 15,058 15,102 15,050 Effect of dilutive securities 1 56 — 72 121 Weighted-average shares – diluted 15,162 15,058 15,174 15,171 _______________________ 1 For the three months ended June 30, 2018 , approximately 0.1 million |
Nature of Operations Nature of
Nature of Operations Nature of Operations (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Nature of Operations [Abstract] | |
Merger Costs - G&A | $ 0.8 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Details) - USD ($) | Jul. 31, 2018 | Nov. 30, 2018 | Jul. 31, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Mar. 01, 2018 | Sep. 29, 2017 |
Business Acquisition [Line Items] | ||||||||||
Capitalized Costs, Proved Properties | $ 1,600,000 | $ 2,200,000 | $ 1,600,000 | |||||||
Asset Retirement Obligation | 4,500,000 | |||||||||
Business Acquisition, Transaction Costs | 500,000 | |||||||||
Proceeds from sales of assets, net | 1,700,000 | |||||||||
Earnest Money Deposits | 700,000 | 700,000 | ||||||||
Business Acquisition, Pro Forma Revenue | 194,036,000 | |||||||||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | $ 9,886,000 | |||||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.66 | |||||||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.65 | |||||||||
Second Lien Facility | 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||
Hunt Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Application of working capital adjustments | $ 200,000 | $ 200,000 | 245,000 | |||||||
Capitalized Costs, Proved Properties | $ 82,443,000 | |||||||||
Asset Retirement Obligation | 356,000 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 96,978,000 | |||||||||
Net Cash Paid on Date of Acquisition | 82,955,000 | |||||||||
Payments to Acquire Business | 86,000,000 | |||||||||
Cash Paid on Date of Acquisition | 84,400,000 | |||||||||
Accumulated Costs, net of suspended revenues, for wells in which Hunt elected not to participate | 13,778,000 | |||||||||
Business Acquisition, Transaction Costs | 400,000 | $ 100,000 | 96,978,000 | |||||||
Capitalized Costs, Unproved Properties | $ 16,339,000 | |||||||||
Cash Received for Suspended Revenues Attributable to Acquired Properties | 1,448,000 | |||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 400,000 | |||||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 200,000 | |||||||||
Mid-Continent Divestiture [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Application of working capital adjustments | (1,300,000) | $ (1,300,000) | ||||||||
Asset Retirement Obligation | 300,000 | |||||||||
Proceeds from sales of assets, net | $ 6,200,000 | $ 6,000,000 | ||||||||
Cash Paid to Buyer in Connection with Final Settlement | $ 500,000 | |||||||||
Cash Paid for Suspended Revenues in Connection with FInal Settlement | $ 200,000 | |||||||||
Pre-Tax Operating Income Attributable to Assets Sold | $ 600,000 | $ (1,400,000) |
Accounts Receivable and Reven_3
Accounts Receivable and Revenues from Contracts with Customers - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Customers | $ 48,347 | $ 59,030 |
Joint interest partners | 3,546 | 6,404 |
Other | 629 | 640 |
Accounts Receivable, Gross, Current, Total | 52,522 | 66,074 |
Less: Allowance for doubtful accounts | (51) | (36) |
Accounts receivable, net of allowance for doubtful accounts | $ 52,471 | $ 66,038 |
Accounts Receivable and Reven_4
Accounts Receivable and Revenues from Contracts with Customers - Additional Information (Details) - Accounts Receivable $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)Customer | Jun. 30, 2018USD ($)Customer | Dec. 31, 2018USD ($) | |
Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percentage | 67.00% | 59.00% | |
Accounts receivable, major customers | $ 32.4 | $ 34.8 | |
Customer Concentration Risk [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of major customers | Customer | 3 | 3 | |
Revenues, major customers | $ 150 | $ (157.8) | |
Concentration risk, percentage | 66.00% | 84.00% | |
Customer Concentration Risk [Member] | Major Customer 1 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues, major customers | $ (85.6) | ||
Concentration risk, percentage | 38.00% | ||
Customer Concentration Risk [Member] | Major Customer 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues, major customers | $ (37.5) | ||
Concentration risk, percentage | 16.00% | ||
Customer Concentration Risk [Member] | Major Customer 3 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues, major customers | $ (26.9) | ||
Concentration risk, percentage | 12.00% |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)bblEntity$ / bbl | Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative assets | $ 16,404 | $ 991 |
Commodity contracts | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative assets | $ 6,500 | |
Number of derivative counterparties | Entity | 8 | |
Commodity contracts | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Third-party quoted forward prices | WTI | |
Commodity contracts | Louisiana Light Sweet [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Third-party quoted forward prices | LLS | |
Commodity contracts | MEH [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Third-party quoted forward prices | MEH | |
Third Quarter 2019 [Member] | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-WTI | |
Derivative, Nonmonetary Notional Amount | bbl | 7,397 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 55.70 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,677 | |
Third Quarter 2019 [Member] | Louisiana Light Sweet [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-LLS | |
Derivative, Nonmonetary Notional Amount | bbl | 5,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 59.17 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,589 | |
Third Quarter 2019 [Member] | MEH [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 1,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 64 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 15 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 | |
Fourth Quarter 2019 [Member] | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-WTI | |
Derivative, Nonmonetary Notional Amount | bbl | 7,398 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 55.70 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,222 | |
Fourth Quarter 2019 [Member] | Louisiana Light Sweet [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-LLS | |
Derivative, Nonmonetary Notional Amount | bbl | 5,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 59.17 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,059 | |
Fourth Quarter 2019 [Member] | MEH [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 1,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 64 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 46 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 | |
First Quarter 2020 [Member] | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-WTI | |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.94 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,048 | |
First Quarter 2020 [Member] | MEH [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 2,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 61.03 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 108 | |
Second Quarter 2020 [Member] | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-WTI | |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.94 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 375 | |
Second Quarter 2020 [Member] | MEH [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 2,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 61.03 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 75 | |
Third Quarter 2020 [Member] | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-WTI | |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.93 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 164 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 | |
Third Quarter 2020 [Member] | MEH [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 2,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 61.03 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 52 | |
Fourth Quarter 2020 [Member] | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Type of Instrument | Swaps-WTI | |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.93 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 569 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 | |
Fourth Quarter 2020 [Member] | MEH [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 2,000 | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 61.03 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 51 |
Commodity Derivative Positions
Commodity Derivative Positions (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($)bbl$ / bbl | |
Settlement Agreement [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 4 |
Crude Oil | Third Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-WTI |
Derivative, Nonmonetary Notional Amount | bbl | 7,397 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 55.70 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,677 |
Crude Oil | Fourth Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-WTI |
Derivative, Nonmonetary Notional Amount | bbl | 7,398 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 55.70 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,222 |
Crude Oil | First Quarter 2020 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-WTI |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.94 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,048 |
Crude Oil | Second Quarter 2020 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-WTI |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.94 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 375 |
Crude Oil | Third Quarter 2020 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-WTI |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.93 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 164 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 |
Crude Oil | Fourth Quarter 2020 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-WTI |
Derivative, Nonmonetary Notional Amount | bbl | 7,000 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 54.93 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 569 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 |
Louisiana Light Sweet [Member] | Third Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-LLS |
Derivative, Nonmonetary Notional Amount | bbl | 5,000 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 59.17 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,589 |
Louisiana Light Sweet [Member] | Fourth Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Type of Instrument | Swaps-LLS |
Derivative, Nonmonetary Notional Amount | bbl | 5,000 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 59.17 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 1,059 |
Impact of Derivative Activities
Impact of Derivative Activities on Condensed Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives | $ 13,603 | $ (52,241) | $ (54,414) | $ (71,036) |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 7,182 | $ 34,932 |
Derivative liabilities | 14,203 | 991 |
Derivative assets | 2,756 | 10,100 |
Derivative Liability, Noncurrent | 2,201 | 0 |
Derivative Liability | 16,404 | 991 |
Derivative Asset | 9,938 | 45,032 |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 6,500 | |
Commodity contracts | Current Derivative Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7,182 | 34,932 |
Derivative liabilities | 14,203 | 991 |
Commodity contracts | Noncurrent Derivative Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2,756 | 10,100 |
Derivative Liability, Noncurrent | 2,201 | 0 |
Fair Value, Measurements, Recurring | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7,182 | 34,932 |
Derivative liabilities | (14,203) | (991) |
Derivative assets | 2,756 | 10,100 |
Derivative Liability, Noncurrent | $ 2,201 | $ 0 |
Summary of Property and Equipme
Summary of Property and Equipment (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019USD ($)$ / bbl | Jun. 30, 2018USD ($)$ / bbl | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Abstract] | |||
Proved Oil and Gas Property, Full Cost Method | $ 1,224,547 | $ 1,037,993 | |
Unproved Oil and Gas Property, Full Cost Method | 66,419 | 63,484 | |
Oil and Gas Property, Full Cost Method, Gross | 1,290,966 | 1,101,477 | |
Other property and equipment | 24,588 | 20,383 | |
Total properties and equipment | 1,315,554 | 1,121,860 | |
Accumulated depreciation, depletion and amortization | (276,867) | (193,866) | |
Property and equipment, net (successful efforts method) | 1,038,687 | 927,994 | |
Unproved Oil and Gas Property excluded | 66,400 | 63,500 | |
Capitalized Exploratory Well Costs | 4,200 | $ 300 | |
Undeveloped Leasehold Costs Transferred | 100 | $ 5,600 | |
Capitalized Costs, Proved Properties | 2,200 | 1,600 | |
Interest Costs Capitalized | $ 2,200 | $ 4,700 | |
Amortization Expense Per Physical Unit of Production | $ / bbl | 17.49 | 15.36 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2017 | |
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 340,000,000 | $ 321,000,000 | ||
Second Lien Facility | 200,000,000 | 200,000,000 | $ 200,000,000 | |
Long-term Debt | 540,000,000 | 521,000,000 | ||
Debt Instrument, Unamortized Discount | (2,795,000) | (3,159,000) | (4,000,000) | |
Unamortized Debt Issuance Expense | (5,729,000) | (6,466,000) | $ (8,200,000) | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 531,476,000 | 511,375,000 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | [1],[2] | $ 8,524,000 | $ 9,625,000 | |
[1] | Issuance costs of the Credit Facility, which represent costs attributable to the access to credit over its contractual term, have been presented as a component of Other assets (see Note 10) and are being amortized over the term of the Credit Facility using the straight-line method. | |||
[2] | Discount and issuance costs of the Second Lien Facility are being amortized over the term of the underlying loan using the effective-interest method |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 1 Months Ended | 6 Months Ended | ||||
Apr. 30, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | May 03, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 29, 2017USD ($) | |
Debt Disclosure [Line Items] | ||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 2,500,000 | |||||
Current Ratio | 1 | |||||
Second Lien Facility | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||
Proceeds from Debt, Net of Issuance Costs | $ 187,800,000 | |||||
Debt Instrument, Unamortized Discount | 2,795,000 | 3,159,000 | 4,000,000 | |||
Unamortized Debt Issuance Expense | $ 5,729,000 | 6,466,000 | $ 8,200,000 | |||
Debt Instrument, Discounted Percentage | 98.00% | |||||
Year 2 [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Prepayment Premium | 102.00% | |||||
Prepayment Premium, Change in Control | 102.00% | |||||
Year 3 [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Prepayment Premium | 101.00% | |||||
Prepayment Premium, Change in Control | 101.00% | |||||
Revolving Credit Facility | ||||||
Debt Disclosure [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 450,000,000 | $ 1,000,000,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 500,000,000 | |||||
Interest Rate at Period End | 4.42% | |||||
Debt To E B I T D Ratio Maximum | 4 | |||||
Line of Credit [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Letters of Credit Outstanding, Amount | $ 400,000 | $ 400,000 | ||||
Line of Credit [Member] | Letter of Credit | ||||||
Debt Disclosure [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | |||||
Second Lien Facility [Member] | ||||||
Debt Disclosure [Line Items] | ||||||
Interest rate option one, applicable margin rate over Adjusted LIBOR | 7.00% | |||||
Interest rate option two, applicable margin rate | 6.00% | |||||
Second Lien Facility, Initial Interest Rate | 9.41% | 8.34% | ||||
Second Lien Facility, Effective Interest Rate | 9.89% | |||||
Debt Instrument, Term | 5 years | |||||
Minimum [Member] | Revolving Credit Facility | ||||||
Debt Disclosure [Line Items] | ||||||
Interest rate option one, applicable margin rate over Adjusted LIBOR | 0.50% | 2.00% | ||||
Interest rate option two, applicable margin rate | 1.50% | 3.00% | ||||
Minimum [Member] | Letter of Credit | ||||||
Debt Disclosure [Line Items] | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||
Maximum [Member] | Revolving Credit Facility | ||||||
Debt Disclosure [Line Items] | ||||||
Interest rate option one, applicable margin rate over Adjusted LIBOR | 1.50% | 3.00% | ||||
Interest rate option two, applicable margin rate | 2.50% | 4.00% | ||||
Maximum [Member] | Letter of Credit | ||||||
Debt Disclosure [Line Items] | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||
Interest Payable One [Member] | Revolving Credit Facility | ||||||
Debt Disclosure [Line Items] | ||||||
Debt Instrument, Interest Payable Period | 1 month | |||||
Interest Payable Two [Member] | Revolving Credit Facility | ||||||
Debt Disclosure [Line Items] | ||||||
Debt Instrument, Interest Payable Period | 3 months | |||||
Interest Payable Three [Member] | Revolving Credit Facility | ||||||
Debt Disclosure [Line Items] | ||||||
Debt Instrument, Interest Payable Period | 6 months |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate (as a percent) | 21.60% | ||
Deferred income taxes | $ 81,000 | $ 0 | |
Blended tax rate (as a percent) | 21.60% | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 1,200,000 | $ 200,000 | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 5.80% | 2.10% | |
Unrecognized Tax Benefits | $ 0 | ||
Income Tax Examination, Penalties and Interest Expense | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Right-of-Use Asset | $ 3,059 | $ 2,500 | $ 3,059 | $ 0 | |
Operating Lease, Payments | 221 | ||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 800 | 2,500 | 3,325 | ||
Operating Lease, Liability, Current | 874 | 874 | 0 | ||
Operating Lease, Liability, Noncurrent | 2,545 | 2,545 | $ 0 | ||
Operating Lease, Liability | $ 3,419 | $ 2,800 | $ 3,419 | ||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 7 months 6 days | 4 years 7 months 6 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.97% | 5.97% | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 437 | $ 437 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 846 | 846 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 830 | 830 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 834 | 834 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 833 | 833 | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 139 | 139 | |||
Lessee, Operating Lease, Liability, Payments, Due | 3,919 | 3,919 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (500) | (500) | |||
Operating Lease, Cost | 194 | 357 | |||
Short-term Lease, Cost | 11,484 | 23,055 | |||
Variable Lease, Cost | 5,548 | 10,643 | |||
Amounts charged as dilling costs | [1] | (10,790) | (21,641) | ||
Lease, Cost | [2] | 6,436 | 12,414 | ||
Natural Gas, Gathering, Transportation, Marketing and Processing [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease, Cost | 2,900 | 5,000 | |||
Operating Expense [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease, Cost | 3,300 | 7,100 | |||
General and Administrative Expense [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease, Cost | $ 200 | $ 400 | |||
Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 2 years | 2 years | |||
Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 5 years | 5 years | |||
[1] | 1 Represents the combined gross amounts paid and (i) capitalized as drilling costs for our working interest share and (ii) billed to joint interest partners for their working interest share for short-term leases of operated drilling rigs. | ||||
[2] | 2 Includes $ 2.9 million and $ 5.0 million recognized in Gathering, processing and transportation, $ 3.3 million and $ 7.1 million recognized in Lease operating and $ 0.2 million and $ 0.4 million recognized in G&A for the three and six months ended June 30, 2019 , respectively. |
Components of Selected Balance
Components of Selected Balance Sheet Accounts (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Other current assets: | |||
Tubular inventory and well materials | $ 3,733 | $ 4,061 | |
Prepaid expenses | 1,000 | 1,064 | |
Other Assets, Current | 4,733 | 5,125 | |
Other assets: | |||
Deferred issuance costs of the Revolver | 4,308 | 2,437 | |
Operating Lease, Right-of-Use Asset | 3,059 | $ 2,500 | 0 |
Other | 45 | 44 | |
Other assets | 7,412 | 2,481 | |
Accounts payable and accrued liabilities: | |||
Trade accounts payable | 15,712 | 16,507 | |
Drilling costs | 39,831 | 22,434 | |
Royalties and revenue – related | 43,903 | 51,212 | |
Production, ad valorem and other taxes | 5,236 | 2,418 | |
Compensation – related | 3,295 | 4,489 | |
Interest | 673 | 670 | |
Operating Lease, Liability, Current | 874 | 0 | |
Other | 2,469 | 5,970 | |
Accounts payable and accrued liabilities | 111,993 | 103,700 | |
Other liabilities: | |||
Asset retirement obligations | 4,497 | 4,314 | |
Operating Lease, Liability, Noncurrent | 2,545 | 0 | |
Defined benefit pension obligations | 802 | 857 | |
Postretirement health care benefit obligations | 392 | 362 | |
Other liabilities | $ 8,236 | $ 5,533 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 7,182 | $ 34,932 |
Derivative assets | 2,756 | 10,100 |
Liabilities: | ||
Commodity derivative liabilities – current | 14,203 | 991 |
Derivative Liability, Noncurrent | 2,201 | 0 |
Fair Value, Measurements, Recurring | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7,182 | 34,932 |
Derivative assets | 2,756 | 10,100 |
Liabilities: | ||
Commodity derivative liabilities – current | (14,203) | (991) |
Derivative Liability, Noncurrent | 2,201 | 0 |
Fair Value, Measurements, Recurring | Commodity contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative assets | 0 | 0 |
Liabilities: | ||
Commodity derivative liabilities – current | 0 | 0 |
Derivative Liability, Noncurrent | 0 | 0 |
Fair Value, Measurements, Recurring | Commodity contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7,182 | 34,932 |
Derivative assets | 2,756 | 10,100 |
Liabilities: | ||
Commodity derivative liabilities – current | (14,203) | (991) |
Derivative Liability, Noncurrent | 2,201 | 0 |
Fair Value, Measurements, Recurring | Commodity contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative assets | 0 | 0 |
Liabilities: | ||
Commodity derivative liabilities – current | 0 | 0 |
Derivative Liability, Noncurrent | $ 0 | $ 0 |
Crude Oil | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Third-party quoted forward prices | WTI | |
Louisiana Light Sweet [Member] | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Third-party quoted forward prices | LLS | |
MEH [Domain] | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Third-party quoted forward prices | MEH |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)bbl | |
Commitments and Contingencies Disclosure [Line Items] | |
Long-term Purchase Commitment, Minimum Volume Required | bbl | 8,000 |
Drilling Rigs | 2 |
Commitment length | 1 |
Termination Notice, Days | 60 |
Estimated Litigation Liability, Current | $ 0.3 |
Asset Retirement Obligation | 4.5 |
Crude Oil Gathering And Transportation Services | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual Obligation, Due in 2019 | 6.3 |
Contractual Obligation, Due 2020 through 2025 | 13 |
Contractual Obligation, Due 2026 | 7.4 |
Contractual Obligation, Due 2027 through 2030 | 3.8 |
Contractual Obligation, Due 2031 | 2.2 |
Contract Drilling [Member] | |
Commitments and Contingencies Disclosure [Line Items] | |
Contractual Obligation | $ 9.9 |
Shareholders' Equity Rollforwar
Shareholders' Equity Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
As of beginning balance | $ 408,944 | $ 447,355 | $ 230,264 | $ 221,639 | $ 447,355 | $ 221,639 | |||
Net income (loss) | 51,625 | (38,697) | (2,521) | 10,295 | 12,928 | 7,774 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (94) | [1] | (2,659) | [2] | |||||
All Other Changes | 985 | 380 | 869 | 989 | [3] | ||||
As of ending balance | 461,554 | 408,944 | 228,612 | 230,264 | 461,554 | 228,612 | |||
Share-based compensation | 1,000 | 900 | 2,055 | 2,451 | |||||
Common Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
As of beginning balance | 151 | 151 | 151 | 150 | 151 | 150 | |||
All Other Changes | 0 | 0 | 0 | 1 | |||||
As of ending balance | 151 | 151 | 151 | 151 | 151 | 151 | |||
Paid-in Capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
As of beginning balance | 198,011 | 197,630 | 195,111 | 194,123 | 197,630 | 194,123 | |||
All Other Changes | 986 | [1] | 381 | [4] | 869 | 988 | [3] | ||
As of ending balance | 198,997 | 198,011 | 195,980 | 195,111 | 198,997 | 195,980 | |||
Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
As of beginning balance | 210,701 | 249,492 | 35,002 | 27,366 | 249,492 | 27,366 | |||
Net income (loss) | 51,625 | (38,697) | (2,521) | 10,295 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (94) | [1] | (2,659) | [2] | |||||
All Other Changes | 0 | 0 | 0 | 0 | |||||
As of ending balance | 262,326 | 210,701 | 32,481 | 35,002 | 262,326 | 32,481 | |||
Accumulated Other Comprehensive Income | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
As of beginning balance | 81 | 82 | 0 | 0 | 82 | 0 | |||
All Other Changes | (1) | (1) | |||||||
As of ending balance | $ 80 | $ 81 | $ 0 | $ 0 | $ 80 | $ 0 | |||
Time Vested Restricted Stock Units [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares, Issued | 26,671 | 38,115 | 26,671 | 38,115 | |||||
Performance Restricted Stock Units [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares, Issued | 1,495 | 1,495 | 1,495 | 1,495 | |||||
[1] | Attributable to the adoption of ASC Topic 842 as of January 1, 2019 (see Note 9). | ||||||||
[2] | 1 Reflects a write-off for certain accounts receivable attributable to natural gas imbalances accounted for under the entitlements method prior to January 1, 2018, in connection with the adoption of ASC Topic 606, Revenues from Contracts with Customers . | ||||||||
[3] | Includes equity-classified share-based compensation of $2.5 million during the six months ended June 30, 2018 . During the six months ended June 30, 2018 , 38,115 and 1,495 shares of common stock were issued in connection with the vesting of certain RSUs and performance restricted stock units (“PRSUs”), net of shares withheld for income taxes, respectively. | ||||||||
[4] | Includes equity-classified share-based compensation of $2.1 million during the six months ended June 30, 2019 . During the six months ended June 30, 2019 , 26,671 shares of common stock were issued in connection with the vesting of certain time-vested restricted stock units (“RSUs”), net of shares withheld for income taxes. |
Share-Based Compensation and _2
Share-Based Compensation and Other Benefit Plans - Summary of Share-Based Compensation Expense (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2017tranche | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Dividends | $ | $ 0 | $ 0 | ||||
Share-based compensation (equity-classified) | $ | $ 1,000 | $ 900 | 2,055 | 2,451 | ||
Share-based Payment Arrangement, Accelerated Cost | $ | 600 | |||||
Separation Agreement, Consulting Fees | $ | $ 300 | |||||
Defined Contribution Plan, Cost | $ | 100 | 200 | 300 | 300 | ||
Other Pension, Postretirement and Supplemental Plans [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ | $ 0 | $ 0 | $ 0 | $ 0 | ||
Time Vested Restricted Stock Units [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 348,572 | 348,572 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 43.06 | $ 43.43 | ||||
Shares, Issued | shares | 26,671 | 38,115 | 26,671 | 38,115 | ||
Time Vested Restricted Stock Units [Member] | Minimum [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangements By Share-based Payment Award, Award Amortization Period | 4 years | |||||
Time Vested Restricted Stock Units [Member] | Maximum [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangements By Share-based Payment Award, Award Amortization Period | 5 years | |||||
Performance Restricted Stock Units [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 0 | 98,526 | 0 | 98,526 | ||
Share-based Compensation Arrangements By Share-based Payment Award, Award Amortization Period | 5 years | |||||
Shares, Issued | shares | 1,495 | 1,495 | 1,495 | 1,495 | ||
Share-based Compensation Arrangements By Share-based Payment Award, Performance Period | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 1.44% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.51% | |||||
Performance Restricted Stock Units [Member] | Minimum [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 59.63% | |||||
Share-based Compensation Arrangements By Share-based Payment Award, Number Of Award Tranches | tranche | 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares, Expected to Vest, Percentage | 0.00% | |||||
Performance Restricted Stock Units [Member] | Maximum [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 62.18% | |||||
Share-based Compensation Arrangements By Share-based Payment Award, Number Of Award Tranches | tranche | 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares, Expected to Vest, Percentage | 200.00% | |||||
Performance Restricted Stock Units [Member] | Year 1 [Member] | Minimum [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 47.70 | |||||
Performance Restricted Stock Units [Member] | Year 2 [Member] | Maximum [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 65.28 | |||||
Time Vested Restricted Stock Units - Employees [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 1,132 | 17,456 | 1,132 | 17,456 | ||
Employees and Directors [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 1,424,600 | 1,424,600 |
Interest Expense Components of
Interest Expense Components of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Banking and Thrift [Abstract] | |||||
Interest Expense, Borrowings | $ 9,304 | $ 7,730 | $ 19,015 | $ 13,778 | |
Amortization of Debt Discount (Premium) | [1] | 183 | 168 | 363 | 333 |
Amortization of Debt Issuance Costs | 644 | 680 | 1,385 | 1,311 | |
Interest Paid, Capitalized, Investing Activities | (1,075) | (2,428) | (2,229) | (4,671) | |
Interest Expense | $ 9,056 | $ 6,150 | $ 18,534 | $ 10,751 | |
[1] | Attributable to the Second Lien Facility (see Note 7). |
Components of Calculation of Ba
Components of Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Earnings Per Share [Abstract] | |||||||
Net income (loss) | $ 51,625 | $ (38,697) | $ (2,521) | $ 10,295 | $ 12,928 | $ 7,774 | |
Weighted-average shares – basic | 15,106 | 15,058 | 15,102 | 15,050 | |||
Effect of dilutive securities | 56 | 0 | [1] | 72 | 121 | ||
Weighted-average shares – diluted | 15,162 | 15,058 | 15,174 | 15,171 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100 | ||||||
[1] | For the three months ended June 30, 2018 , approximately 0.1 million potentially dilutive securities, represented by RSUs and PRSUs, had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings per share. |