Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-10447 | |
Entity Registrant Name | CABOT OIL & GAS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3072771 | |
Entity Address, Address Line One | Three Memorial City Plaza | |
Entity Address, Address Line Two | 840 Gessner Road, | |
Entity Address, Address Line Three | Suite 1400, | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77024 | |
City Area Code | 281 | |
Local Phone Number | 589-4600 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | COG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Central Index Key | 0000858470 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 398,575,510 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 202,842 | $ 200,227 |
Restricted cash | 11,595 | 13,556 |
Accounts receivable, net | 135,697 | 209,023 |
Income taxes receivable | 156,551 | 129,795 |
Inventories | 18,249 | 13,932 |
Derivative instruments | 16,085 | 31 |
Other current assets | 770 | 1,684 |
Total current assets | 541,789 | 568,248 |
Properties and equipment, net (Successful efforts method) | 3,920,497 | 3,855,706 |
Other assets | 59,889 | 63,291 |
TOTAL ASSETS | 4,522,175 | 4,487,245 |
Current liabilities | ||
Accounts payable | 183,816 | 189,811 |
Current portion of long-term debt | 175,000 | 87,000 |
Accrued liabilities | 21,409 | 31,290 |
Interest payable | 6,952 | 19,933 |
Total current liabilities | 387,177 | 328,034 |
Long-term debt, net | 1,045,260 | 1,133,025 |
Deferred income taxes | 746,108 | 702,104 |
Asset retirement obligations | 77,029 | 71,598 |
Postretirement benefits | 33,130 | 32,713 |
Other liabilities | 65,076 | 68,284 |
Total liabilities | 2,353,780 | 2,335,758 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock | 47,753 | 47,688 |
Additional paid-in capital | 1,785,313 | 1,782,427 |
Retained earnings | 2,157,306 | 2,143,213 |
Accumulated other comprehensive income | 1,224 | 1,360 |
Treasury stock | (1,823,201) | (1,823,201) |
Total stockholders' equity | 2,168,395 | 2,151,487 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,522,175 | $ 4,487,245 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized (shares) | 960,000,000 | 960,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, issued (shares) | 477,532,828 | 476,881,991 |
Treasury stock (shares) | 78,957,318 | 78,957,318 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING REVENUES | ||
Operating revenues | $ 370,395 | $ 633,424 |
Gain on derivative instruments | 16,062 | 8,257 |
TOTAL OPERATING REVENUES | 386,457 | 641,681 |
OPERATING EXPENSES | ||
Direct operations | 17,244 | 18,334 |
Transportation and gathering | 143,332 | 137,333 |
Taxes other than income | 3,738 | 5,847 |
Exploration | 2,190 | 6,044 |
Depreciation, depletion and amortization | 100,135 | 92,258 |
General and administrative | 33,429 | 31,090 |
TOTAL OPERATING EXPENSES | 300,068 | 290,906 |
Earnings (loss) on equity method investments | (59) | 3,684 |
Gain (loss) on sale of assets | 71 | (1,500) |
INCOME FROM OPERATIONS | 86,401 | 352,959 |
Interest expense, net | 14,211 | 12,181 |
Other expense | 66 | 144 |
Income before income taxes | 72,124 | 340,634 |
Income tax expense | 18,214 | 77,871 |
NET INCOME | $ 53,910 | $ 262,763 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.14 | $ 0.62 |
Diluted (in dollars per share) | $ 0.13 | $ 0.62 |
Weighted-average common shares outstanding | ||
Basic (in shares) | 398,343 | 423,116 |
Diluted (in shares) | 399,897 | 425,189 |
Natural gas | ||
OPERATING REVENUES | ||
Operating revenues | $ 370,340 | $ 633,174 |
Other | ||
OPERATING REVENUES | ||
Operating revenues | $ 55 | $ 250 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 53,910 | $ 262,763 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation, depletion and amortization | 100,135 | 92,258 |
Deferred income tax expense | 44,044 | 88,002 |
(Gain) loss on sale of assets | (71) | 1,500 |
Gain on derivative instruments | (16,062) | (8,257) |
Net cash received in settlement of derivative instruments | 0 | 52,980 |
Loss (earnings) on equity method investments | 59 | (3,684) |
Distribution of earnings from equity method investments | 0 | 4,729 |
Amortization of debt issuance costs | 750 | 1,089 |
Stock-based compensation and other | 15,765 | 14,487 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 73,327 | 141,671 |
Income taxes | (26,756) | 6,786 |
Inventories | (4,317) | (7,201) |
Other current assets | 916 | 1,119 |
Accounts payable and accrued liabilities | (23,711) | (27,934) |
Interest payable | (12,981) | (12,887) |
Other assets and liabilities | (111) | (22,134) |
Net cash provided by operating activities | 204,897 | 585,287 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (148,702) | (195,650) |
Proceeds from sale of assets | 48 | 2,346 |
Investment in equity method investments | (35) | (1,828) |
Proceeds from sale of equity method investments | (9,424) | 0 |
Net cash used in investing activities | (158,113) | (195,132) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings from debt | 0 | 95,000 |
Repayments of debt | 0 | (102,000) |
Treasury stock repurchases | 0 | (31,378) |
Dividends paid | (39,817) | (29,605) |
Tax withholdings on vesting of stock awards | (6,313) | (9,570) |
Net cash used in financing activities | (46,130) | (77,553) |
Net increase in cash, cash equivalents and restricted cash | 654 | 312,602 |
Cash, cash equivalents and restricted cash, beginning of period | 213,783 | 2,287 |
Cash, cash equivalents and restricted cash, end of period | $ 214,437 | $ 314,889 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at beginning of period at Dec. 31, 2018 | $ 2,088,159 | $ 47,610 | $ (1,334,688) | $ 1,763,142 | $ 4,437 | $ 1,607,658 |
Balance (in shares) at Dec. 31, 2018 | 476,095 | 53,410 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 262,763 | 262,763 | ||||
Stock amortization and vesting | (213) | $ 68 | (281) | |||
Stock amortization and vesting (in shares) | 682 | |||||
Purchase of treasury stock | (28) | $ (28) | ||||
Purchase of treasury stock (in shares) | 0 | |||||
Cash dividends | (29,605) | (29,605) | ||||
Other comprehensive income (loss) | (137) | (137) | ||||
Balance at end of period at Mar. 31, 2019 | 2,320,939 | $ 47,678 | $ (1,334,716) | 1,762,861 | 4,300 | 1,840,816 |
Balance (in shares) at Mar. 31, 2019 | 476,777 | 53,410 | ||||
Balance at beginning of period at Dec. 31, 2019 | 2,151,487 | $ 47,688 | $ (1,823,201) | 1,782,427 | 1,360 | 2,143,213 |
Balance (in shares) at Dec. 31, 2019 | 476,882 | 78,957 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 53,910 | 53,910 | ||||
Stock amortization and vesting | 2,951 | $ 65 | 2,886 | |||
Stock amortization and vesting (in shares) | 651 | |||||
Cash dividends | (39,817) | (39,817) | ||||
Other comprehensive income (loss) | (136) | (136) | ||||
Balance at end of period at Mar. 31, 2020 | $ 2,168,395 | $ 47,753 | $ (1,823,201) | $ 1,785,313 | $ 1,224 | $ 2,157,306 |
Balance (in shares) at Mar. 31, 2020 | 477,533 | 78,957 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends, per share (in dollars per share) | $ 0.10 | $ 0.07 |
Financial Statement Presentatio
Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation During interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2019 (Form 10-K) filed with the Securities and Exchange Commission (SEC), except for any new accounting pronouncements adopted during the period as discussed below. The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year. Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income (loss) or cash flows. Recently Adopted Accounting Pronouncements Financial Instruments: Credit Losses. In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments: Credit Losses, which replaces the incurred loss impairment methodology used for certain financial instruments with a methodology that reflects current expected credit losses (CECL). ASU No. 2016-13, along with subsequently issued codification improvements, was effective for the Company on January 1, 2020, and was applied using a modified retrospective approach. The Company's historical credit losses have not been material, and future expected credit losses under the CECL model are not expected to be material. The adoption of ASU No. 2016-13 did not have a material effect on the Company's financial position, results of operations or cash flows; however, it modified certain disclosure requirements which were not material. Fair Value Measurements. |
Properties and Equipment, Net
Properties and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment, Net | Properties and Equipment, Net Properties and equipment, net are comprised of the following: (In thousands) March 31, December 31, Proved oil and gas properties $ 6,674,182 $ 6,508,443 Unproved oil and gas properties 73,215 133,475 Land, buildings and other equipment 105,721 104,700 6,853,118 6,746,618 Accumulated depreciation, depletion and amortization (2,932,621 ) (2,890,912 ) $ 3,920,497 $ 3,855,706 At March 31, 2020 , the Company did not have any projects that had exploratory well costs capitalized for a period of greater than one year after drilling. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Activity related to the Company's equity method investments is as follows: Constitution Meade Total Three Months Ended March 31, (In thousands) 2020 2019 2020 2019 2020 2019 Balance at beginning of period $ — $ — $ — $ 163,181 $ — $ 163,181 Contributions 35 250 — 1,578 35 1,828 Distributions — — — (4,729 ) — (4,729 ) Earnings (loss) on equity method investments (35 ) (250 ) (24 ) 3,934 (59 ) 3,684 Sale of investment — — 24 — 24 — Balance at end of period $ — $ — $ — $ 163,964 $ — $ 163,964 For further information regarding the Company’s equity method investments, refer to Note 4 of the Notes to the Consolidated Financial Statements in the Form 10-K. Constitution Pipeline Company, LLC On February 10, 2020, the Company sold its 25 percent equity interest in Constitution Pipeline Company, LLC (Constitution) to Williams Partners Operating LLC (Williams). The Company did not receive any proceeds and paid Williams $9.4 million |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements The Company’s debt and credit agreements consisted of the following: (In thousands) March 31, December 31, 6.51% weighted-average senior notes (1) $ 124,000 $ 124,000 5.58% weighted-average senior notes (2) 175,000 175,000 3.65% weighted-average senior notes 925,000 925,000 Revolving credit facility — — Unamortized debt issuance costs (3,740 ) (3,975 ) $ 1,220,260 $ 1,220,025 _______________________________________________________________________________ (1) Includes $87.0 million of current portion of long-term debt at March 31, 2020 and December 31, 2019 , respectively, due in July 2020. (2) Includes $88.0 million of current portion of long-term debt at March 31, 2020 due in January 2021. At March 31, 2020 , the Company was in compliance with all restrictive financial covenants for both its revolving credit facility and senior notes. Revolving Credit Agreement The borrowing base under the terms of the Company's revolving credit facility is redetermined annually in April. In addition, either the Company or the banks may request an interim redetermination twice a year or in connection with certain acquisitions or divestitures of oil and gas properties. At March 31, 2020 , the Company had no borrowings outstanding under its revolving credit facility and had unused commitments of $1.5 billion . Effective April 23, 2020 , the borrowing base and available commitments were reaffirmed at $3.2 billion and $1.5 billion , respectively. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments As of March 31, 2020 , the Company had the following outstanding financial commodity derivatives: Collars Floor Ceiling Swaps Type of Contract Volume (Mmbtu) Contract Period Range ($/Mmbtu) Weighted-Average ($/Mmbtu) Range ($/Mmbtu) Weighted-Average ($/Mmbtu) Weighted-Average ($/Mmbtu) Natural gas (NYMEX) 21,400,000 Apr. 2020 - Oct. 2020 $ 2.27 Natural gas (NYMEX) 21,400,000 Apr. 2020 - Oct. 2020 $ — $ 2.15 $2.36 - $2.38 $ 2.38 In April 2020, the Company entered into the following financial commodity derivatives: Collars Floor Ceiling Swaps Type of Contract Volume (Mmbtu) Contract Period Range Weighted-Average Range Weighted-Average Weighted-Average ($/Mmbtu) Natural gas (NYMEX) 73,600,000 May 2020 - Oct. 2020 $1.90 - $2.15 $ 2.02 $2.10 - $2.32 $ 2.20 Natural gas (NYMEX) 18,400,000 May 2020 - Oct. 2020 $ 2.10 Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location March 31, December 31, March 31, December 31, Commodity contracts Derivative instruments (current) $ 16,085 $ 31 $ — $ 9 Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 16,085 $ 47 Gross amounts offset in the condensed consolidated balance sheet — (16 ) Net amounts of assets presented in the condensed consolidated balance sheet 16,085 31 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 16,085 $ 31 Derivative liabilities Gross amounts of recognized liabilities $ — $ 25 Gross amounts offset in the condensed consolidated balance sheet — (16 ) Net amounts of liabilities presented in the condensed consolidated balance sheet — 9 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ — $ 9 Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended (In thousands) 2020 2019 Cash received (paid) on settlement of derivative instruments Gain (loss) on derivative instruments $ — $ 52,980 Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments 16,062 (44,723 ) $ 16,062 $ 8,257 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information regarding the fair value hierarchy, refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K. Financial Assets and Liabilities The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Deferred compensation plan $ 15,784 $ — $ — $ 15,784 Derivative instruments — 8,892 7,193 16,085 $ 15,784 $ 8,892 $ 7,193 $ 31,869 Liabilities Deferred compensation plan $ 24,306 $ — $ — $ 24,306 Derivative instruments — — — — $ 24,306 $ — $ — $ 24,306 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Deferred compensation plan $ 18,381 $ — $ — $ 18,381 Derivative instruments — 44 3 47 $ 18,381 $ 44 $ 3 $ 18,428 Liabilities Deferred compensation plan $ 27,012 $ — $ — $ 27,012 Derivative instruments — — 25 25 $ 27,012 $ — $ 25 $ 27,037 The Company's investments associated with its deferred compensation plan consist of mutual funds and deferred shares of the Company's common stock that are publicly traded and for which market prices are readily available. The derivative instruments were measured based on quotes from the Company's counterparties or internal models. Such quotes and models have been derived using an income approach that considers various inputs including current market and contractual prices for the underlying instruments, quoted forward commodity prices, basis differentials, volatility factors and interest rates for a similar length of time as the derivative contract term as applicable. Estimates are derived from or verified using relevant NYMEX futures contracts and are compared to multiple quotes obtained from counterparties for reasonableness. The determination of the fair values presented above also incorporates a credit adjustment for non-performance risk. The Company measured the non-performance risk of its counterparties by reviewing credit default swap spreads for the various financial institutions with which it has derivative transactions while non-performance risk of the Company is evaluated using a market credit spread provided by the Company's bank. The Company has not incurred any losses related to non-performance risk of its counterparties and does not anticipate any material impact on its financial results due to non-performance by third parties. The most significant unobservable inputs relative to the Company's Level 3 derivative contracts are volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties' valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Three Months Ended (In thousands) 2020 2019 Balance at beginning of period $ (22 ) $ 21,976 Total gain (loss) included in earnings 7,215 4,716 Settlement (gain) loss — (22,076 ) Transfers in and/or out of Level 3 — — Balance at end of period $ 7,193 $ 4,616 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ 7,215 $ (1,067 ) Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments or acquisitions, at fair value on a nonrecurring basis. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of March 31, 2020 , additional disclosures were not required. The estimated fair value of the Company’s asset retirement obligations at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company’s credit risk, the time value of money, and the current economic state to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy. Fair Value of Other Financial Instruments The estimated fair value of other financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Condensed Consolidated Balance Sheet for cash, cash equivalents and restricted cash approximate fair value due to the short-term maturities of these instruments. Cash, cash equivalents and restricted cash are classified as Level 1 in the fair value hierarchy and the remaining financial instruments are classified as Level 2. The Company uses available market data and valuation methodologies to estimate the fair value of debt. The fair value of debt is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s senior notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The fair value of all senior notes and the revolving credit facility is based on interest rates currently available to the Company. The Company’s debt is valued using an income approach and classified as Level 3 in the fair value hierarchy. The carrying amount and fair value of debt is as follows: March 31, 2020 December 31, 2019 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 1,220,260 $ 1,091,603 $ 1,220,025 $ 1,260,259 Current maturities (175,000 ) (174,030 ) (87,000 ) (88,704 ) Long-term debt, excluding current maturities $ 1,045,260 $ 917,573 $ 1,133,025 $ 1,171,555 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Activity related to the Company’s asset retirement obligations is as follows: (In thousands) Three Months Ended Balance at beginning of period $ 72,098 Liabilities incurred 4,430 Accretion expense 1,001 Balance at end of period 77,529 Less: current asset retirement obligations (500 ) Noncurrent asset retirement obligations $ 77,029 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations The Company has various contractual obligations in the normal course of its operations. There have been no material changes to the Company’s contractual obligations described under “Transportation and Gathering Agreements” as disclosed in Note 9 of the Notes to Consolidated Financial Statements in the Form 10-K. Lease Commitments Lease cost information was as follows: Three Months Ended (In thousands) 2020 2019 Operating lease cost $ 1,285 $ 2,998 Variable lease cost $ 301 $ 1,758 Short-term lease cost $ 12,321 $ 67,123 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,262 $ 1,123 Investing cash flows from operating leases $ — $ 1,791 Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is summarized below: March 31, 2020 2019 Weighted-average remaining lease term (in years) Operating leases 11.8 11.4 Weighted-average discount rate Operating leases 5.0 % 4.9 % Legal Matters The Company is a defendant in various legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company's financial position, results of operations or cash flows. Contingency Reserves. When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters for which reserves have been established. The Company believes that any such amount above the amounts accrued would not be material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents revenues from contracts with customers disaggregated by product: Three Months Ended March 31, (In thousands) 2020 2019 OPERATING REVENUES Natural gas $ 370,340 $ 633,174 Other 55 250 Total revenue from contracts with customers $ 370,395 $ 633,424 All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and generated in the United States of America. Transaction Price Allocated to Remaining Performance Obligations A significant number of the Company’s product sales contracts are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. As of March 31, 2020 , the Company has $9.4 billion of unsatisfied performance obligations related to natural gas sales that have a fixed pricing component and a contract term greater than one year. The Company expects to recognize these obligations over periods ranging from four to 19 years . Contract Balances Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $135.9 million and $209.2 million as of March 31, 2020 and December 31, 2019 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation General The Company grants certain stock-based compensation awards, including restricted stock awards, restricted stock units and performance share awards. Stock-based compensation expense associated with these awards was $16.3 million and $15.1 million in the first quarter of 2020 and 2019 , respectively. Stock-based compensation expense is included in general and administrative expense in the Condensed Consolidated Statement of Operations. For the first quarter of 2020 , the Company recorded an increase to tax expense of $1.3 million as a result of book compensation expense exceeding federal and state tax deductions for employee stock-based compensation awards that vested during the period. For the first quarter of 2019, the Company recorded a decrease to tax expense of $1.1 million as a result of federal and state tax deductions exceeding the book compensation expense for employee stock-based compensation awards that vested during the period. Refer to Note 14 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards and the applicable award terms. Restricted Stock Units During the first three months of 2020 , 121,197 restricted stock units were granted to non-employee directors of the Company with a weighted-average grant date value of $15.65 per unit. The fair value of these units is measured based on the closing stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are issued when the director ceases to be a director of the Company. Performance Share Awards The performance period for the awards granted during the first three months of 2020 commenced on January 1, 2020 and ends on December 31, 2022 . The Company used an annual forfeiture rate assumption ranging from zero percent to five percent for purposes of recognizing stock-based compensation expense for its performance share awards. Performance Share Awards Based on Internal Performance Metrics The fair value of performance share award grants based on internal performance metrics is based on the closing stock price on the grant date. Each performance share award represents the right to receive up to 100 percent of the award in shares of common stock. Based on the Company’s probability assessment at March 31, 2020 , it is considered probable that the criteria for all performance awards based on internal metrics awards will be met. Employee Performance Share Awards. During the first three months of 2020 , 722,500 Employee Performance Share Awards were granted at a grant date value of $15.60 per share. The 2020 awards vest 100 percent on the third anniversary, provided that the Company averages $100 million or more of operating cash flow during the three -year performance period , as set by the Company’s compensation committee. If the Company does not meet the performance metric for the applicable period, then the performance shares that would have been issued on the anniversary date will be forfeited. Hybrid Performance Share Awards. During the first three months of 2020 , 506,412 Hybrid Performance Share Awards were granted at a grant date value of $15.60 per share. The 2020 awards vest 25 percent on each of the first and second anniversary dates and 50 percent on the third anniversary , provided that the Company has $100 million or more of operating cash flow for the year preceding the vesting date, as set by the Company’s compensation committee. If the Company does not meet the performance metric for the applicable period, then the portion of the performance shares that would have been issued on that anniversary date will be forfeited. Performance Share Awards Based on Market Conditions These awards have both an equity and liability component, with the right to receive up to the first 100 percent of the award in shares of common stock and the right to receive up to an additional 100 percent of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. TSR Performance Share Awards. During the first three months of 2020 , 862,180 TSR Performance Share Awards were granted and are earned, or not earned, based on the comparative performance of the Company’s common stock measured against a predetermined group of companies in the Company’s peer group over a three -year performance period. The following assumptions were used to determine the grant date fair value of the equity component (February 19, 2020 ) and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date March 31, 2020 Fair value per performance share award $ 13.79 $15.60- $17.16 Assumptions: Stock price volatility 29.5 % 35.6% - 50.9% Risk free rate of return 1.39 % 0.16% - 0.27% |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock awards were vested at the end of the applicable period. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. The following is a calculation of basic and diluted weighted-average shares outstanding: Three Months Ended (In thousands) 2020 2019 Weighted-average shares - basic 398,343 423,116 Dilution effect of stock awards at end of period 1,554 2,073 Weighted-average shares - diluted 399,897 425,189 The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Three Months Ended (In thousands) 2020 2019 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 1,068 643 |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: (In thousands) March 31, December 31, Accounts receivable, net Trade accounts $ 135,862 $ 209,200 Other accounts 881 1,007 136,743 210,207 Allowance for doubtful accounts (1,046 ) (1,184 ) $ 135,697 $ 209,023 Other assets Deferred compensation plan $ 15,784 $ 18,381 Debt issuance costs 8,422 8,938 Operating lease right-of-use assets 35,629 35,916 Other accounts 54 56 $ 59,889 $ 63,291 Accounts payable Trade accounts $ 25,520 $ 21,663 Royalty and other owners 24,393 36,191 Accrued transportation 51,848 55,586 Accrued capital costs 51,883 40,337 Taxes other than income 20,517 16,971 Other accounts 9,655 19,063 $ 183,816 $ 189,811 Accrued liabilities Employee benefits $ 13,177 $ 22,727 Taxes other than income 3,308 3,850 Operating lease liabilities 3,443 3,124 Other accounts 1,481 1,589 $ 21,409 $ 31,290 Other liabilities Deferred compensation plan $ 24,306 $ 27,012 Operating lease liabilities 32,079 32,677 Other accounts 8,691 8,595 $ 65,076 $ 68,284 |
Financial Statement Presentat_2
Financial Statement Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | During interim periods, Cabot Oil & Gas Corporation (the Company) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2019 (Form 10-K) filed with the Securities and Exchange Commission (SEC), except for any new accounting pronouncements adopted during the period as discussed below. The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year. |
Reclassifications | Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income (loss) or cash flows. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Financial Instruments: Credit Losses. In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments: Credit Losses, which replaces the incurred loss impairment methodology used for certain financial instruments with a methodology that reflects current expected credit losses (CECL). ASU No. 2016-13, along with subsequently issued codification improvements, was effective for the Company on January 1, 2020, and was applied using a modified retrospective approach. The Company's historical credit losses have not been material, and future expected credit losses under the CECL model are not expected to be material. The adoption of ASU No. 2016-13 did not have a material effect on the Company's financial position, results of operations or cash flows; however, it modified certain disclosure requirements which were not material. Fair Value Measurements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements by adding, removing and modifying certain required disclosures for fair value measurements for assets and liabilities disclosed within the fair value hierarchy. The Company adopted ASU No. 2018-13 effective January 1, 2020. The adoption of ASU No. 2018-13 did not have any effect on the Company's financial position, results of operations or cash flows; however, it modified certain disclosure requirements which were not material. |
Properties and Equipment, Net (
Properties and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of properties and equipment, net | Properties and equipment, net are comprised of the following: (In thousands) March 31, December 31, Proved oil and gas properties $ 6,674,182 $ 6,508,443 Unproved oil and gas properties 73,215 133,475 Land, buildings and other equipment 105,721 104,700 6,853,118 6,746,618 Accumulated depreciation, depletion and amortization (2,932,621 ) (2,890,912 ) $ 3,920,497 $ 3,855,706 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Information Related to the Company's Equity Method Investments | Activity related to the Company's equity method investments is as follows: Constitution Meade Total Three Months Ended March 31, (In thousands) 2020 2019 2020 2019 2020 2019 Balance at beginning of period $ — $ — $ — $ 163,181 $ — $ 163,181 Contributions 35 250 — 1,578 35 1,828 Distributions — — — (4,729 ) — (4,729 ) Earnings (loss) on equity method investments (35 ) (250 ) (24 ) 3,934 (59 ) 3,684 Sale of investment — — 24 — 24 — Balance at end of period $ — $ — $ — $ 163,964 $ — $ 163,964 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and credit agreement components | The Company’s debt and credit agreements consisted of the following: (In thousands) March 31, December 31, 6.51% weighted-average senior notes (1) $ 124,000 $ 124,000 5.58% weighted-average senior notes (2) 175,000 175,000 3.65% weighted-average senior notes 925,000 925,000 Revolving credit facility — — Unamortized debt issuance costs (3,740 ) (3,975 ) $ 1,220,260 $ 1,220,025 _______________________________________________________________________________ (1) Includes $87.0 million of current portion of long-term debt at March 31, 2020 and December 31, 2019 , respectively, due in July 2020. (2) Includes $88.0 million of current portion of long-term debt at March 31, 2020 due in January 2021. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding commodity derivatives | As of March 31, 2020 , the Company had the following outstanding financial commodity derivatives: Collars Floor Ceiling Swaps Type of Contract Volume (Mmbtu) Contract Period Range ($/Mmbtu) Weighted-Average ($/Mmbtu) Range ($/Mmbtu) Weighted-Average ($/Mmbtu) Weighted-Average ($/Mmbtu) Natural gas (NYMEX) 21,400,000 Apr. 2020 - Oct. 2020 $ 2.27 Natural gas (NYMEX) 21,400,000 Apr. 2020 - Oct. 2020 $ — $ 2.15 $2.36 - $2.38 $ 2.38 In April 2020, the Company entered into the following financial commodity derivatives: Collars Floor Ceiling Swaps Type of Contract Volume (Mmbtu) Contract Period Range Weighted-Average Range Weighted-Average Weighted-Average ($/Mmbtu) Natural gas (NYMEX) 73,600,000 May 2020 - Oct. 2020 $1.90 - $2.15 $ 2.02 $2.10 - $2.32 $ 2.20 Natural gas (NYMEX) 18,400,000 May 2020 - Oct. 2020 $ 2.10 |
Effect of derivative instruments on the condensed consolidated balance sheet | Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Derivative Assets Derivative Liabilities (In thousands) Balance Sheet Location March 31, December 31, March 31, December 31, Commodity contracts Derivative instruments (current) $ 16,085 $ 31 $ — $ 9 |
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 16,085 $ 47 Gross amounts offset in the condensed consolidated balance sheet — (16 ) Net amounts of assets presented in the condensed consolidated balance sheet 16,085 31 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 16,085 $ 31 Derivative liabilities Gross amounts of recognized liabilities $ — $ 25 Gross amounts offset in the condensed consolidated balance sheet — (16 ) Net amounts of liabilities presented in the condensed consolidated balance sheet — 9 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ — $ 9 |
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In thousands) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 16,085 $ 47 Gross amounts offset in the condensed consolidated balance sheet — (16 ) Net amounts of assets presented in the condensed consolidated balance sheet 16,085 31 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 16,085 $ 31 Derivative liabilities Gross amounts of recognized liabilities $ — $ 25 Gross amounts offset in the condensed consolidated balance sheet — (16 ) Net amounts of liabilities presented in the condensed consolidated balance sheet — 9 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ — $ 9 |
Effect of derivatives on the condensed consolidated statement of operations | Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended (In thousands) 2020 2019 Cash received (paid) on settlement of derivative instruments Gain (loss) on derivative instruments $ — $ 52,980 Non-cash gain (loss) on derivative instruments Gain (loss) on derivative instruments 16,062 (44,723 ) $ 16,062 $ 8,257 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Deferred compensation plan $ 15,784 $ — $ — $ 15,784 Derivative instruments — 8,892 7,193 16,085 $ 15,784 $ 8,892 $ 7,193 $ 31,869 Liabilities Deferred compensation plan $ 24,306 $ — $ — $ 24,306 Derivative instruments — — — — $ 24,306 $ — $ — $ 24,306 (In thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Deferred compensation plan $ 18,381 $ — $ — $ 18,381 Derivative instruments — 44 3 47 $ 18,381 $ 44 $ 3 $ 18,428 Liabilities Deferred compensation plan $ 27,012 $ — $ — $ 27,012 Derivative instruments — — 25 25 $ 27,012 $ — $ 25 $ 27,037 |
Reconciliation of changes in the fair value of financial assets and liabilities classified as level 3 | The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Three Months Ended (In thousands) 2020 2019 Balance at beginning of period $ (22 ) $ 21,976 Total gain (loss) included in earnings 7,215 4,716 Settlement (gain) loss — (22,076 ) Transfers in and/or out of Level 3 — — Balance at end of period $ 7,193 $ 4,616 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ 7,215 $ (1,067 ) |
Carrying amounts and fair values of debt | The carrying amount and fair value of debt is as follows: March 31, 2020 December 31, 2019 (In thousands) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt $ 1,220,260 $ 1,091,603 $ 1,220,025 $ 1,260,259 Current maturities (175,000 ) (174,030 ) (87,000 ) (88,704 ) Long-term debt, excluding current maturities $ 1,045,260 $ 917,573 $ 1,133,025 $ 1,171,555 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Activity Related to Asset Retirement Obligations | Activity related to the Company’s asset retirement obligations is as follows: (In thousands) Three Months Ended Balance at beginning of period $ 72,098 Liabilities incurred 4,430 Accretion expense 1,001 Balance at end of period 77,529 Less: current asset retirement obligations (500 ) Noncurrent asset retirement obligations $ 77,029 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease costs and supplemental cash flow disclosures | Lease cost information was as follows: Three Months Ended (In thousands) 2020 2019 Operating lease cost $ 1,285 $ 2,998 Variable lease cost $ 301 $ 1,758 Short-term lease cost $ 12,321 $ 67,123 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,262 $ 1,123 Investing cash flows from operating leases $ — $ 1,791 |
Weighted-average remaining lease and weighted-average discount rate for operating leases | Information regarding the weighted-average remaining lease term and the weighted-average discount rate for operating leases is summarized below: March 31, 2020 2019 Weighted-average remaining lease term (in years) Operating leases 11.8 11.4 Weighted-average discount rate Operating leases 5.0 % 4.9 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenues from contracts with customers disaggregated by product: Three Months Ended March 31, (In thousands) 2020 2019 OPERATING REVENUES Natural gas $ 370,340 $ 633,174 Other 55 250 Total revenue from contracts with customers $ 370,395 $ 633,424 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Assumptions to Determine the Grant Date Fair Value of the Equity Component and the Period-End Fair Value of the Liability | The following assumptions were used to determine the grant date fair value of the equity component (February 19, 2020 ) and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date March 31, 2020 Fair value per performance share award $ 13.79 $15.60- $17.16 Assumptions: Stock price volatility 29.5 % 35.6% - 50.9% Risk free rate of return 1.39 % 0.16% - 0.27% |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted weighted-average shares outstanding | The following is a calculation of basic and diluted weighted-average shares outstanding: Three Months Ended (In thousands) 2020 2019 Weighted-average shares - basic 398,343 423,116 Dilution effect of stock awards at end of period 1,554 2,073 Weighted-average shares - diluted 399,897 425,189 |
Calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect | The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Three Months Ended (In thousands) 2020 2019 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method 1,068 643 |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Certain balance sheet amounts are comprised of the following: (In thousands) March 31, December 31, Accounts receivable, net Trade accounts $ 135,862 $ 209,200 Other accounts 881 1,007 136,743 210,207 Allowance for doubtful accounts (1,046 ) (1,184 ) $ 135,697 $ 209,023 Other assets Deferred compensation plan $ 15,784 $ 18,381 Debt issuance costs 8,422 8,938 Operating lease right-of-use assets 35,629 35,916 Other accounts 54 56 $ 59,889 $ 63,291 Accounts payable Trade accounts $ 25,520 $ 21,663 Royalty and other owners 24,393 36,191 Accrued transportation 51,848 55,586 Accrued capital costs 51,883 40,337 Taxes other than income 20,517 16,971 Other accounts 9,655 19,063 $ 183,816 $ 189,811 Accrued liabilities Employee benefits $ 13,177 $ 22,727 Taxes other than income 3,308 3,850 Operating lease liabilities 3,443 3,124 Other accounts 1,481 1,589 $ 21,409 $ 31,290 Other liabilities Deferred compensation plan $ 24,306 $ 27,012 Operating lease liabilities 32,079 32,677 Other accounts 8,691 8,595 $ 65,076 $ 68,284 |
Properties and Equipment, Net_2
Properties and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Proved oil and gas properties | $ 6,674,182 | $ 6,508,443 |
Unproved oil and gas properties | 73,215 | 133,475 |
Land, buildings and other equipment | 105,721 | 104,700 |
Properties and equipment, gross, total | 6,853,118 | 6,746,618 |
Accumulated depreciation, depletion and amortization | (2,932,621) | (2,890,912) |
Properties and equipment, net | $ 3,920,497 | $ 3,855,706 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | Feb. 10, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Equity Method Investments | |||
Balance at beginning of period | $ 0 | $ 163,181 | |
Contributions | 35 | 1,828 | |
Distributions | 0 | (4,729) | |
Earnings (loss) on equity method investments | (59) | 3,684 | |
Sale of investment | 24 | 0 | |
Balance at end of period | 0 | 163,964 | |
Constitution | |||
Equity Method Investments | |||
Balance at beginning of period | 0 | 0 | |
Contributions | 35 | 250 | |
Distributions | 0 | 0 | |
Earnings (loss) on equity method investments | (35) | (250) | |
Sale of investment | 0 | 0 | |
Balance at end of period | 0 | 0 | |
Ownership percentage | 25.00% | ||
Reclassification adjustment for equity method investment | $ 9,400 | ||
Meade | |||
Equity Method Investments | |||
Balance at beginning of period | 0 | 163,181 | |
Contributions | 0 | 1,578 | |
Distributions | 0 | (4,729) | |
Earnings (loss) on equity method investments | (24) | 3,934 | |
Sale of investment | 24 | 0 | |
Balance at end of period | $ 0 | $ 163,964 |
Debt and Credit Agreements - Sc
Debt and Credit Agreements - Schedule of Debt (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (3,740,000) | $ (3,975,000) |
Long-term debt | 1,220,260,000 | 1,220,025,000 |
Current portion of long-term debt | 175,000,000 | 87,000,000 |
6.51% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 124,000,000 | 124,000,000 |
Weighted average interest rate | 6.51% | |
Current portion of long-term debt | $ 87,000,000 | 87,000,000 |
5.58% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 175,000,000 | 175,000,000 |
Weighted average interest rate | 5.58% | |
Current portion of long-term debt | $ 88,000,000 | |
3.65% weighted-average senior notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 925,000,000 | 925,000,000 |
Weighted average interest rate | 3.65% | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 0 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - Revolving credit facility - USD ($) | Apr. 23, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 0 | |
Remaining borrowing capacity | $ 1,500,000,000 | ||
Subsequent Event | |||
Debt Instrument [Line Items] | |||
Borrowing base | $ 3,200,000,000 | ||
Remaining borrowing capacity | $ 1,500,000,000 |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Commodity Derivatives (Details) - Natural gas (NYMEX) | 1 Months Ended | 3 Months Ended |
Apr. 30, 2020MMBTU$ / MMBTU | Mar. 31, 2020MMBTU$ / MMBTU | |
Derivative [Line Items] | ||
Volume (in Mmbtu) | MMBTU | 21,400,000 | |
Swaps Weighted-Average (in usd per Mmbtu) | 2.27 | |
Volume (in Mmbtu) | MMBTU | 21,400,000 | |
Floor, Range (in usd per Mmbtu) | 0 | |
Floor, Weighted-Average (in usd per Mmbtu) | 2.15 | |
Ceiling, Weighted-Average (in usd per Mmbtu) | 2.38 | |
Swaps Weighted-Average (in usd per Mmbtu) | ||
Minimum | ||
Derivative [Line Items] | ||
Ceiling, Range (in usd per Mmbtu) | 2.36 | |
Maximum | ||
Derivative [Line Items] | ||
Ceiling, Range (in usd per Mmbtu) | 2.38 | |
Subsequent Event | ||
Derivative [Line Items] | ||
Volume (in Mmbtu) | MMBTU | 73,600,000 | |
Floor, Weighted-Average (in usd per Mmbtu) | 2.02 | |
Ceiling, Weighted-Average (in usd per Mmbtu) | 2.20 | |
Minimum | Subsequent Event | ||
Derivative [Line Items] | ||
Floor, Range (in usd per Mmbtu) | 1.90 | |
Ceiling, Range (in usd per Mmbtu) | 2.10 | |
Maximum | Subsequent Event | ||
Derivative [Line Items] | ||
Floor, Range (in usd per Mmbtu) | 2.15 | |
Ceiling, Range (in usd per Mmbtu) | 2.32 | |
Subsequent Event | ||
Derivative [Line Items] | ||
Volume (in Mmbtu) | MMBTU | 18,400,000 | |
Swaps Weighted-Average (in usd per Mmbtu) | 2.10 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | $ 16,085 | $ 31 |
Derivative instruments (current) | Derivatives Not Designated as Hedges | Commodity contracts | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative Assets | 16,085 | 31 |
Derivative Liabilities | $ 0 | $ 9 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative assets | ||
Gross amounts of recognized assets | $ 16,085 | $ 47 |
Gross amounts offset in the condensed consolidated balance sheet | 0 | (16) |
Net amounts of assets presented in the condensed consolidated balance sheet | 16,085 | 31 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet | 0 | 0 |
Net amount | 16,085 | 31 |
Derivative liabilities | ||
Gross amounts of recognized liabilities | 0 | 25 |
Gross amounts offset in the condensed consolidated balance sheet | 0 | (16) |
Net amounts of liabilities presented in the condensed consolidated balance sheet | 0 | 9 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet | 0 | 0 |
Net amount | $ 0 | $ 9 |
Derivative Instruments - Effe_2
Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash received (paid) on settlement of derivative instruments, gain (loss) on derivative instruments | $ 0 | $ 52,980 |
Non-cash gain (loss) on derivative instruments, gain (loss) on derivative instruments | 16,062 | (44,723) |
Gain (loss) on derivative instruments | $ 16,062 | $ 8,257 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Deferred compensation plan | $ 15,784 | $ 18,381 |
Derivative instruments | 16,085 | 47 |
Liabilities | ||
Deferred compensation plan | 24,306 | 27,012 |
Recurring basis | ||
Assets | ||
Deferred compensation plan | 15,784 | 18,381 |
Derivative instruments | 16,085 | 47 |
Total assets | 31,869 | 18,428 |
Liabilities | ||
Deferred compensation plan | 24,306 | 27,012 |
Derivative instruments | 0 | 25 |
Total liabilities | 24,306 | 27,037 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 15,784 | 18,381 |
Derivative instruments | 0 | 0 |
Total assets | 15,784 | 18,381 |
Liabilities | ||
Deferred compensation plan | 24,306 | 27,012 |
Derivative instruments | 0 | 0 |
Total liabilities | 24,306 | 27,012 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 8,892 | 44 |
Total assets | 8,892 | 44 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 7,193 | 3 |
Total assets | 7,193 | 3 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 0 | 25 |
Total liabilities | $ 0 | $ 25 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy | ||
Balance at beginning of period | $ (22) | $ 21,976 |
Total gain (loss) included in earnings | 7,215 | 4,716 |
Settlement (gain) loss | 0 | (22,076) |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at end of period | 7,193 | 4,616 |
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ 7,215 | $ (1,067) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020impaired_asset_and_liability | |
Fair Value Disclosures [Abstract] | |
Number of non-financial assets and liabilities impaired | 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair value disclosures | ||
Long-term debt | $ 1,220,260 | $ 1,220,025 |
Current maturities | (175,000) | (87,000) |
Long-term debt, excluding current maturities | 1,045,260 | 1,133,025 |
Carrying Amount | ||
Fair value disclosures | ||
Long-term debt | 1,220,260 | 1,220,025 |
Current maturities | (175,000) | (87,000) |
Long-term debt, excluding current maturities | 1,045,260 | 1,133,025 |
Estimated Fair Value | ||
Fair value disclosures | ||
Long-term debt | 1,091,603 | 1,260,259 |
Current maturities | (174,030) | (88,704) |
Long-term debt, excluding current maturities | $ 917,573 | $ 1,171,555 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation | ||
Balance at beginning of period | $ 72,098 | |
Liabilities incurred | 4,430 | |
Accretion expense | 1,001 | |
Balance at end of period | 77,529 | |
Less: current asset retirement obligations | (500) | |
Noncurrent asset retirement obligations | $ 77,029 | $ 71,598 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Costs and Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 1,285 | $ 2,998 |
Variable lease cost | 301 | 1,758 |
Short-term lease cost | 12,321 | 67,123 |
Operating cash flows from operating leases | 1,262 | 1,123 |
Investing cash flows from operating leases | $ 0 | $ 1,791 |
Commitments and Contingencies_2
Commitments and Contingencies - Weighted Average Remaining Lease Term and Discount Rate (Details) | Mar. 31, 2020 | Mar. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease, weighted-average remaining lease term | 11 years 9 months 18 days | 11 years 4 months 24 days |
Operating lease, weighted-average discount rate | 5.00% | 4.90% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 370,395 | $ 633,424 |
Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 370,340 | 633,174 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 55 | $ 250 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contracts with customers | $ 135.9 | $ 209.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligations, expected period of satisfaction | 4 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Unsatisfied performance obligations | $ 9,400 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligations, expected period of satisfaction | 19 years |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | Feb. 19, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Stock-based Compensation arrangements | ||||
Stock based compensation expense | $ 16,300,000 | $ 15,100,000 | ||
Decrease to tax expense from stock-based compensation activities | $ 1,100,000 | |||
Increase to tax expense from stock-based compensation activities | $ 1,300,000 | |||
Restricted Stock Units | ||||
Stock-based Compensation arrangements | ||||
Granted (in shares) | 121,197 | |||
Granted (in dollars per share) | $ 15.65 | |||
Performance Share Awards | Minimum | ||||
Stock-based Compensation arrangements | ||||
Annual forfeiture rate assumption (as a percent) | 0.00% | |||
Performance Share Awards | Maximum | ||||
Stock-based Compensation arrangements | ||||
Annual forfeiture rate assumption (as a percent) | 5.00% | |||
Performance Share Awards Based on Internal Performance Metrics | ||||
Stock-based Compensation arrangements | ||||
Right to receive additional shares, maximum | 100.00% | |||
Employee Performance Share Awards | ||||
Stock-based Compensation arrangements | ||||
Granted (in shares) | 722,500 | |||
Granted (in dollars per share) | $ 15.60 | |||
Minimum operating cash flow for the year preceding the performance period | $ 100,000,000 | |||
Number of years over which performance criteria is to be met | 3 years | |||
Employee Performance Share Awards | Hybrid performance share awards, percentage vesting on the third anniversary | ||||
Stock-based Compensation arrangements | ||||
Award vesting rights (as a percent) | 100.00% | |||
Hybrid Performance Share Awards | ||||
Stock-based Compensation arrangements | ||||
Granted (in shares) | 506,412 | |||
Granted (in dollars per share) | $ 15.60 | |||
Minimum operating cash flow for the year preceding the performance period | $ 100,000,000 | |||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on the first anniversary | ||||
Stock-based Compensation arrangements | ||||
Award vesting rights (as a percent) | 25.00% | |||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on the second anniversary | ||||
Stock-based Compensation arrangements | ||||
Award vesting rights (as a percent) | 25.00% | |||
Hybrid Performance Share Awards | Hybrid performance share awards, percentage vesting on the third anniversary | ||||
Stock-based Compensation arrangements | ||||
Award vesting rights (as a percent) | 50.00% | |||
Performance Shares Based on Market Conditions | ||||
Stock-based Compensation arrangements | ||||
Right to receive shares | 100.00% | |||
Right to receive an additional award in cash | 100.00% | |||
TSR Performance Share Awards | ||||
Stock-based Compensation arrangements | ||||
Granted (in shares) | 862,180 | |||
Granted (in dollars per share) | $ 13.79 | |||
Performance period | 3 years | |||
TSR Performance Share Awards | Minimum | ||||
Stock-based Compensation arrangements | ||||
Granted (in dollars per share) | $ 15.60 | |||
TSR Performance Share Awards | Maximum | ||||
Stock-based Compensation arrangements | ||||
Granted (in dollars per share) | $ 17.16 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions for TSR Shares (Details) - TSR Performance Share Awards - $ / shares | Feb. 19, 2019 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 13.79 | |
Stock price volatility | 29.50% | |
Risk free rate of return | 1.39% | |
Minimum expected volatility | 35.60% | |
Maximum expected volatility | 50.90% | |
Minimum risk free interest rate | 0.16% | |
Maximum risk free interest rate | 0.27% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 15.60 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 17.16 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of EPS (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares - basic | 398,343 | 423,116 |
Dilution effect of stock awards at end of period | 1,554 | 2,073 |
Weighted-average shares - diluted | 399,897 | 425,189 |
Earnings per Common Share - Cal
Earnings per Common Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method | 1,068 | 643 |
Additional Balance Sheet Info_3
Additional Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, net | ||
Trade accounts | $ 135,862 | $ 209,200 |
Other accounts | 881 | 1,007 |
Accounts receivable, gross | 136,743 | 210,207 |
Allowance for doubtful accounts | (1,046) | (1,184) |
Accounts receivable, net | 135,697 | 209,023 |
Other assets | ||
Deferred compensation plan | 15,784 | 18,381 |
Debt issuance costs | 8,422 | 8,938 |
Operating lease right-of-use assets | 35,629 | 35,916 |
Other accounts | 54 | 56 |
Other assets | 59,889 | 63,291 |
Accounts payable | ||
Trade accounts | 25,520 | 21,663 |
Royalty and other owners | 24,393 | 36,191 |
Accrued transportation | 51,848 | 55,586 |
Accrued capital costs | 51,883 | 40,337 |
Taxes other than income | 20,517 | 16,971 |
Other accounts | 9,655 | 19,063 |
Accounts payable | 183,816 | 189,811 |
Accrued liabilities | ||
Employee benefits | 13,177 | 22,727 |
Taxes other than income | 3,308 | 3,850 |
Operating lease liabilities | 3,443 | 3,124 |
Other accounts | 1,481 | 1,589 |
Accrued liabilities | 21,409 | 31,290 |
Other liabilities | ||
Deferred compensation plan | 24,306 | 27,012 |
Operating lease liabilities | 32,079 | 32,677 |
Other accounts | 8,691 | 8,595 |
Other liabilities | $ 65,076 | $ 68,284 |