Cover page
Cover page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-31539 | |
Entity Registrant Name | SM ENERGY CO | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-0518430 | |
Entity Address, Address Line One | 1700 Lincoln Street, Suite 3200 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80203 | |
City Area Code | (303) | |
Local Phone Number | 861-8140 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | SM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 120,517,918 | |
Entity Central Index Key | 0000893538 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share data) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 477,869 | $ 444,998 |
Accounts receivable | 187,810 | 233,297 |
Derivative assets | 81,062 | 48,677 |
Prepaid expenses and other | 9,535 | 10,231 |
Total current assets | 756,276 | 737,203 |
Property and equipment (successful efforts method): | ||
Proved oil and gas properties | 10,483,159 | 10,258,368 |
Accumulated depletion, depreciation, and amortization | (6,339,303) | (6,188,147) |
Unproved oil and gas properties, net of valuation allowance of $37,904 and $38,008, respectively | 497,127 | 487,192 |
Wells in progress | 342,875 | 287,267 |
Other property and equipment, net of accumulated depreciation of $57,338 and $56,512, respectively | 45,694 | 38,099 |
Total property and equipment, net | 5,029,552 | 4,882,779 |
Noncurrent assets: | ||
Derivative assets | 15,373 | 24,465 |
Other noncurrent assets | 68,957 | 71,592 |
Total noncurrent assets | 84,330 | 96,057 |
Total assets | 5,870,158 | 5,716,039 |
Current liabilities: | ||
Accounts payable and accrued expenses | 522,279 | 532,289 |
Derivative liabilities | 30,723 | 56,181 |
Other current liabilities | 10,144 | 10,114 |
Total current liabilities | 563,146 | 598,584 |
Noncurrent liabilities: | ||
Revolving credit facility | 0 | 0 |
Senior Notes, net | 1,572,991 | 1,572,210 |
Asset retirement obligations | 110,163 | 108,233 |
Deferred income taxes | 330,782 | 280,811 |
Derivative liabilities | 3,639 | 1,142 |
Other noncurrent liabilities | 59,642 | 69,601 |
Total noncurrent liabilities | 2,077,217 | 2,031,997 |
Commitments and contingencies (note 6) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value - authorized: 200,000,000 shares; issued and outstanding: 120,517,918 and 121,931,676 shares, respectively | 1,205 | 1,219 |
Additional paid-in capital | 1,743,567 | 1,779,703 |
Retained earnings | 1,489,032 | 1,308,558 |
Accumulated other comprehensive loss | (4,009) | (4,022) |
Total stockholders’ equity | 3,229,795 | 3,085,458 |
Total liabilities and stockholders’ equity | $ 5,870,158 | $ 5,716,039 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (PARENTHETICAL) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Unproved oil and gas properties, valuation allowance | $ 37,904 | $ 38,008 |
Other property and equipment, accumulated depreciation | $ 57,338 | $ 56,512 |
Common Stock, Par Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 120,517,918 | 121,931,676 |
Common Stock, Shares Outstanding | 120,517,918 | 121,931,676 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating revenues and other income: | ||
Oil, gas, and NGL production revenue | $ 570,778 | $ 858,721 |
Other operating income | 2,727 | 1,055 |
Total operating revenues and other income | 573,505 | 859,776 |
Operating expenses: | ||
Oil, gas, and NGL production expense | 142,348 | 144,691 |
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 154,189 | 159,481 |
Exploration | 18,428 | 9,046 |
General and administrative | 27,669 | 24,996 |
Net derivative (gain) loss | (51,329) | 418,521 |
Other operating expense, net | 10,153 | 1,305 |
Total operating expenses | 301,458 | 758,040 |
Income from operations | 272,047 | 101,736 |
Interest expense | (22,459) | (39,387) |
Other non-operating income (expense), net | 4,470 | (724) |
Income before income taxes | 254,058 | 61,625 |
Income tax expense | (55,506) | (12,861) |
Net income | $ 198,552 | $ 48,764 |
Basic weighted-average common shares outstanding | 121,671 | 121,907 |
Diluted weighted-average common shares outstanding | 122,294 | 124,179 |
Basic net income per common share | $ 1.63 | $ 0.40 |
Diluted net income per common share | 1.62 | 0.39 |
Dividends per common share | $ 0.15 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in thousands) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 198,552 | $ 48,764 |
Other comprehensive income, net of tax: | ||
Pension liability adjustment | 13 | 182 |
Total other comprehensive income, net of tax | 13 | 182 |
Total comprehensive income | $ 198,565 | $ 48,946 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except share data and dividends per share) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss |
Cash dividends declared per share | $ 0.01 | ||||
Balances, Common Stock, Shares Outstanding, Beginning at Dec. 31, 2021 | 121,862,248 | ||||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2021 | $ 2,063,131 | $ 1,219 | $ 1,840,228 | $ 234,533 | $ (12,849) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 48,764 | 48,764 | |||
Other comprehensive income | 182 | 182 | |||
Cash dividends | (1,218) | (1,218) | |||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Shares) | 1,929 | ||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings (Amount) | (24) | $ 0 | (24) | ||
Stock-based compensation expense (shares) | 0 | ||||
Stock-based compensation expense | 4,274 | $ 0 | 4,274 | ||
Balances, Common Stock, Shares Outstanding, Ending at Mar. 31, 2022 | 121,864,177 | ||||
Balances, Total Stockholders' Equity, Ending at Mar. 31, 2022 | $ 2,115,109 | $ 1,219 | 1,844,478 | 282,079 | (12,667) |
Cash dividends declared per share | $ 0.15 | ||||
Balances, Common Stock, Shares Outstanding, Beginning at Dec. 31, 2022 | 121,931,676 | 121,931,676 | |||
Balances, Total Stockholders' Equity, Beginning at Dec. 31, 2022 | $ 3,085,458 | $ 1,219 | 1,779,703 | 1,308,558 | (4,022) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 198,552 | 198,552 | |||
Other comprehensive income | 13 | 13 | |||
Cash dividends | (18,078) | (18,078) | |||
Stock-based compensation expense (shares) | 0 | ||||
Stock-based compensation expense | 4,318 | $ 0 | 4,318 | ||
Stock Repurchased and Retired During Period, Value | $ (40,468) | $ (14) | (40,454) | ||
Stock Repurchased During Period, Shares | (1,413,758) | (1,413,758) | |||
Balances, Common Stock, Shares Outstanding, Ending at Mar. 31, 2023 | 120,517,918 | 120,517,918 | |||
Balances, Total Stockholders' Equity, Ending at Mar. 31, 2023 | $ 3,229,795 | $ 1,205 | $ 1,743,567 | $ 1,489,032 | $ (4,009) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 198,552 | $ 48,764 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 154,189 | 159,481 |
Stock-based compensation expense | 4,318 | 4,274 |
Net derivative (gain) loss | (51,329) | 418,521 |
Derivative settlement gain (loss) | 5,076 | (168,183) |
Amortization of debt discount and deferred financing costs | 1,371 | 4,010 |
Deferred income taxes | 49,968 | 11,948 |
Other, net | (4,295) | 1,239 |
Net change in working capital | (26,216) | (137,962) |
Net cash provided by operating activities | 331,634 | 342,092 |
Cash flows from investing activities: | ||
Capital expenditures | (240,712) | (150,127) |
Other, net | 307 | 0 |
Net cash used in investing activities | (240,405) | (150,127) |
Cash flows from financing activities: | ||
Cash paid to repurchase Senior Notes | 0 | (104,770) |
Repurchase of common stock | (40,068) | 0 |
Dividends paid | (18,290) | 0 |
Other, net | 0 | (24) |
Net cash used in financing activities | (58,358) | (104,794) |
Net change in cash, cash equivalents, and restricted cash | 32,871 | 87,171 |
Cash, cash equivalents, and restricted cash at beginning of period | 444,998 | 332,716 |
Cash, cash equivalents, and restricted cash at end of period | 477,869 | 419,887 |
Supplemental Cash Flow Information - Operating activities: | ||
Cash paid for interest, net of capitalized interest | (33,882) | (64,204) |
Supplemental Cash Flow Information - Investing activities: | ||
Increase in capital expenditure accruals and other | $ 66,873 | $ 15,627 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Description of Operations SM Energy Company, together with its consolidated subsidiaries (“SM Energy” or the “Company”), is an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas, and NGLs in the state of Texas. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Regulation S-X. These financial statements do not include all information and notes required by GAAP for annual financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the 2022 Form 10-K . In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included. Operating results for the periods presented are not necessarily indicative of expected results for the full year. In connection with the preparation of the Company’s unaudited condensed consolidated financial statements, the Company evaluated events subsequent to the balance sheet date of March 31, 2023, and through the filing of this report. Additionally, certain prior period amounts have been reclassified to conform to current period presentation in the accompanying unaudited condensed consolidated financial statements. Significant Accounting Policies The significant accounting policies followed by the Company are set forth in Note 1 - Summary of Significant Accounting Policies in the 2022 Form 10-K and are supplemented by the notes to the unaudited condensed consolidated financial statements included in this report. These unaudited condensed consolidated financial statements should be read in conjunction with the 2022 Form 10-K . Recently Issued Accounting Standards As of March 31, 2023, and through the filing of this report, no Accounting Standards Updates have been issued and not yet adopted that are applicable to the Company and that would have a material effect on the Company’s unaudited condensed consolidated financial statements and related disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 2 - Revenue from Contracts with Customers The Company recognizes its share of revenue from the sale of produced oil, gas, and NGLs from its Midland Basin and South Texas assets. Oil, gas, and NGL production revenue presented within the accompanying unaudited condensed consolidated statements of operations (“accompanying statements of operations”) is reflective of the revenue generated from contracts with customers. The table below presents oil, gas, and NGL production revenue by product type for each of the Company’s operating areas for the three months ended March 31, 2023, and 2022: Midland Basin South Texas Total Three Months Ended Three Months Ended Three Months Ended 2023 2022 2023 2022 2023 2022 (in thousands) Oil production revenue $ 320,135 $ 493,895 $ 100,703 $ 113,407 $ 420,838 $ 607,302 Gas production revenue 49,789 102,273 43,942 67,776 93,731 170,049 NGL production revenue 177 152 56,032 81,218 56,209 81,370 Total $ 370,101 $ 596,320 $ 200,677 $ 262,401 $ 570,778 $ 858,721 Relative percentage 65 % 69 % 35 % 31 % 100 % 100 % The Company recognizes oil, gas, and NGL production revenue at the point in time when custody and title (“control”) of the product transfers to the purchaser, which differs depending on the applicable contractual terms. Transfer of control drives the presentation of transportation, gathering, processing, and other post-production expenses (“fees and other deductions”) within the accompanying statements of operations. Fees and other deductions incurred by the Company prior to control transfer are recorded within the oil, gas, and NGL production expense line item on the accompanying statements of operations. When control is transferred at or near the wellhead, sales are based on a wellhead market price that is impacted by fees and other deductions incurred by the purchaser subsequent to the transfer of control. Revenue is recorded in the month when performance obligations are satisfied. However, settlement statements from the purchasers of hydrocarbons and the related cash consideration are received 30 to 90 days after production has occurred. As a result, the Company must estimate the amount of production delivered to the customer and the consideration that will ultimately be received for sale of the product. Estimated revenue due to the Company is recorded within the accounts receivable line item on the accompanying unaudited condensed consolidated balance sheets (“accompanying balance sheets”) until payment is received. The accounts receivable balances from contracts with customers within the accompanying balance sheets as of March 31, 2023, and December 31, 2022, were $146.2 million and $184.5 million, respectively. To estimate accounts receivable from contracts with customers, the Company uses knowledge of its properties, historical performance, contractual arrangements, index pricing, quality and transportation differentials, and other factors as the basis for these estimates. Differences between estimates and actual amounts received for product sales are recorded in the month that payment is received from the purchaser. The time period between production and satisfaction of performance obligations is generally less than one day, therefore there are no material unsatisfied or partially unsatisfied performance obligations at the end of the reporting period. Please refer to Note 1 - Summary of Significant Accounting Policies and Note 2 - Revenue from Contracts with Customers in the 2022 Form 10-K for more information regarding the Company’s revenue recognition policy and the application of the guidance in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, and for more information regarding the types of contracts under which oil, gas, and NGL production revenue is generated. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Note 3 - Equity Stock Repurchase Program During 2022, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $500.0 million in aggregate value of its common stock through December 31, 2024 (“Stock Repurchase Program”). The Stock Repurchase Program permits the Company to repurchase shares of its common stock from time to time in open market transactions, through privately negotiated transactions or by other means in accordance with federal securities laws and subject to certain provisions of the Credit Agreement and the indentures governing the Senior Notes, as defined in Note 5 - Long-Term Debt . Please refer to Note 3 - Equity in the 2022 Form 10-K for additional information regarding the Company’s Stock Repurchase Program. During the three months ended March 31, 2023, the Company utilized net cash provided by operating activities to repurchase and subsequently retire 1,413,758 shares of its common stock at a weighted-average share price of $28.32 for a total cost of $40.0 million, excluding taxes, commissions, and fees. As of March 31, 2023, $402.8 million remained available for repurchases of the Company’s outstanding common stock under the Stock Repurchase Program. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 - Income Taxes The provision for income taxes for the three months ended March 31, 2023, and 2022, consists of the following: For the Three Months Ended 2023 2022 (in thousands) Current portion of income tax expense: Federal $ (4,998) $ (609) State (540) (304) Deferred portion of income tax expense (49,968) (11,948) Income tax expense $ (55,506) $ (12,861) Effective tax rate 21.8 % 20.9 % Recorded income tax expense or benefit differs from the amount that would be provided by applying the statutory United States federal income tax rate to income or loss before income taxes. These differences primarily relate to the effect of state income taxes, excess tax benefits and deficiencies from stock-based compensation awards, tax deduction limitations on the compensation of covered individuals, changes in valuation allowances, the cumulative effect of other smaller permanent differences, and can also reflect the cumulative effect of an enacted tax rate change, in the period of enactment, on the Company’s net deferred tax asset and liability balances. The Company commissioned a multi-year research and development (“R&D”) credit study in 2022, which is expected to be completed in late 2023, and is expected to favorably impact the Company’s effective tax rate and future tax obligations when the results are recorded. The Company’s policy is to not record an R&D credit until it is claimed on a filed tax return, which had not occurred as of the filing of this report. For all years before 2019, the Company is generally no longer subject to United States federal or state income tax examinations by tax authorities. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5 - Long-Term Debt Credit Agreement The Company’s Credit Agreement provides for a senior secured revolving credit facility with a maximum loan amount of $3.0 billion. As of March 31, 2023, the borrowing base and aggregate lender commitments under the Credit Agreement were $2.5 billion and $1.25 billion, respectively. Subsequent to March 31, 2023, the semi-annual borrowing base redetermination was completed, which reaffirmed both the Company’s borrowing base and aggregate lender commitments at existing amounts. The next scheduled borrowing base redetermination date is October 1, 2023. The Credit Agreement is scheduled to mature on the earlier of (a) August 2, 2027 (“Stated Maturity Date”), or (b) 91 days prior to the maturity date of any of the Company’s outstanding Senior Notes, as defined below, to the extent that, on or before such date, the respective Senior Notes have not been repaid, exchanged, repurchased, refinanced, or otherwise redeemed in full, and, if refinanced or exchanged, with a scheduled maturity date that is not earlier than at least 180 days after the Stated Maturity Date. Interest and commitment fees associated with the revolving credit facility are accrued based on a borrowing base utilization grid set forth in the Credit Agreement, as presented in Note 5 - Long-Term Debt in the 2022 Form 10-K . At the Company’s election, borrowings under the Credit Agreement may be in the form of Secured Overnight Financing Rate (“SOFR”), Alternate Base Rate (“ABR”), or Swingline loans. SOFR loans accrue interest at SOFR plus the applicable margin from the utilization grid, and ABR and Swingline loans accrue interest at a market-based floating rate, plus the applicable margin from the utilization grid. Commitment fees are accrued on the unused portion of the aggregate lender commitment amount at rates from the utilization grid. The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Credit Agreement as of April 21, 2023, March 31, 2023, and December 31, 2022: As of April 21, 2023 As of March 31, 2023 As of December 31, 2022 (in thousands) Revolving credit facility (1) $ — $ — $ — Letters of credit (2) 6,000 6,000 6,000 Available borrowing capacity 1,244,000 1,244,000 1,244,000 Total aggregate lender commitment amount $ 1,250,000 $ 1,250,000 $ 1,250,000 ____________________________________________ (1) Unamortized deferred financing costs attributable to the revolving credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $10.2 million and $10.8 million as of March 31, 2023, and December 31, 2022, respectively. These costs are being amortized over the term of the revolving credit facility on a straight-line basis. (2) Letters of credit outstanding reduce the amount available under the revolving credit facility on a dollar-for-dollar basis. Senior Notes The Company’s Senior Notes, net line item on the accompanying balance sheets as of March 31, 2023, and December 31, 2022, consists of the following (collectively referred to as “Senior Notes”): As of March 31, 2023 As of December 31, 2022 Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 1,369 $ 347,749 $ 349,118 $ 1,528 $ 347,590 6.75% Senior Notes due 2026 419,235 2,394 416,841 419,235 2,569 416,666 6.625% Senior Notes due 2027 416,791 2,978 413,813 416,791 3,172 413,619 6.5% Senior Notes due 2028 400,000 5,412 394,588 400,000 5,665 394,335 Total $ 1,585,144 $ 12,153 $ 1,572,991 $ 1,585,144 $ 12,934 $ 1,572,210 The Senior Notes are unsecured senior obligations and rank equal in right of payment with all of the Company’s existing and any future unsecured senior debt and are senior in right of payment to any future subordinated debt. The Company may redeem some or all of its Senior Notes prior to their maturity at redemption prices based on a premium, plus accrued and unpaid interest as described in the indentures governing the Senior Notes. On February 14, 2022, the Company redeemed the remaining $104.8 million of aggregate principal amount outstanding of its 5.0% Senior Notes due 2024 (“2024 Senior Notes”), with cash on hand, pursuant to the terms of the indenture governing the 2024 Senior Notes which provided for a redemption price equal to 100 percent of the principal amount of the 2024 Senior Notes on the date of redemption, plus accrued and unpaid interest. The Company canceled all redeemed 2024 Senior Notes upon settlement. Please refer to Note 5 - Long-Term Debt in the 2022 Form 10-K for additional detail on the Company’s Senior Notes. Covenants The Company is subject to certain financial and non-financial covenants under the Credit Agreement and the indentures governing the Senior Notes that, among other terms, limit the Company’s ability to incur additional indebtedness, make restricted payments including dividends, sell assets, create liens that secure debt, enter into transactions with affiliates, and merge or consolidate with other entities. The Company was in compliance with all financial and non-financial covenants as of March 31, 2023, and through the filing of this report. Please refer to Note 5 - Long-Term Debt in the 2022 Form 10-K for additional detail on the Company’s covenants under the Credit Agreement and indentures governing the Senior Notes. Capitalized Interest Capitalized interest costs for the three months ended March 31, 2023, and 2022, totaled $5.5 million and $3.0 million, respectively. The amount of interest the Company capitalizes generally fluctuates based on the amount borrowed, the Company’s capital program, and the timing and amount of costs associated with capital projects that are considered in progress. Capitalized interest costs are included in total costs incurred. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 - Commitments and Contingencies Commitments Other than those items discussed below, there have been no changes in commitments through the filing of this report that differ materially from those disclosed in the 2022 Form 10-K . Please refer to Note 6 - Commitments and Contingencies in the 2022 Form 10-K for additional discussion of the Company’s commitments. Drilling Rig Service Contracts . During the three months ended March 31, 2023, and through the filing of this report, the Company amended certain of its drilling rig contracts resulting in the increase of day rates and potential early termination fees, and the extension of contract terms. As of the filing of this report, the Company’s drilling rig commitments totaled $30.3 million under contract terms extending through the second quarter of 2024. If all of these contracts were terminated as of the filing of this report, the Company would avoid a portion of the contractual service commitments; however, the Company would be required to pay $18.8 million in early termination fees. No early termination penalties or standby fees were incurred by the Company during the three months ended March 31, 2023, and the Company does not expect to incur material penalties with regard to its drilling rig contracts during the remainder of 2023. Contingencies The Company is subject to litigation and claims arising in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. In the opinion of management, the anticipated results of any pending litigation and claims are not expected to have a material effect on the results of operations, the financial position, or the cash flows of the Company. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Derivative Financial Instruments | Note 7 - Derivative Financial Instruments Summary of Oil, Gas, and NGL Derivative Contracts in Place The Company regularly enters into commodity derivative contracts to mitigate a portion of its exposure to oil, gas, and NGL price volatility and location differentials, and the associated impact on cash flows. As of March 31, 2023, and through the filing of this report, all contracts were entered into for other-than-trading purposes. The Company’s commodity derivative contracts consist of price swap and collar arrangements for oil and gas production, and price swap arrangements for NGL production. In a typical commodity swap agreement, if the agreed upon published third-party index price (“index price”) is lower than the swap price, the Company receives the difference between the index price and the agreed upon swap price. If the index price is higher than the swap price, the Company pays the difference. For collar arrangements, the Company receives the difference between an agreed upon index price and the floor price if the index price is below the floor price. The Company pays the difference between the agreed upon ceiling price and the index price if the index price is above the ceiling price. No amounts are paid or received if the index price is between the floor and ceiling prices. The Company has entered into fixed price oil and gas basis swaps in order to mitigate exposure to adverse pricing differentials between certain industry benchmark prices and the actual physical pricing points where the Company’s production is sold. As of March 31, 2023, the Company had basis swap contracts with fixed price differentials between: • NYMEX WTI and Argus WTI Midland for a portion of its Midland Basin oil production with sales contracts that settle at Argus WTI Midland prices; • NYMEX WTI and Argus WTI Houston Magellan East Houston Terminal (“MEH”) for a portion of its South Texas oil production with sales contracts that settle at Argus WTI Houston MEH (“WTI Houston MEH”) prices; • NYMEX HH and Inside FERC Houston Ship Channel (“IF HSC”) for a portion of its South Texas gas production with sales contracts that settle at IF HSC prices; and • NYMEX HH and Inside FERC West Texas (“IF Waha”) for a portion of its Midland Basin gas production with sales contracts that settle at IF Waha prices. The Company has also entered into oil swap contracts to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month (“Roll Differential”) in which the Company pays the periodic variable Roll Differential and receives a weighted-average fixed price differential. The weighted-average fixed price differential represents the amount of net addition (reduction) to delivery month prices for the notional volumes covered by the swap contracts. As of March 31, 2023, the Company had commodity derivative contracts outstanding through the fourth quarter of 2025 as summarized in the table below: Contract Period Second Quarter 2023 Third Quarter 2023 Fourth Quarter 2023 2024 2025 Oil Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps NYMEX WTI Volumes 333 607 546 — — Weighted-Average Contract Price $ 45.18 $ 59.77 $ 60.00 $ — $ — ICE Brent Volumes 910 920 920 910 — Weighted-Average Contract Price $ 86.50 $ 86.50 $ 86.50 $ 85.50 $ — Collars NYMEX WTI Volumes 464 291 — 919 — Weighted-Average Floor Price $ 67.85 $ 75.00 $ — $ 75.00 $ — Weighted-Average Ceiling Price $ 81.53 $ 93.05 $ — $ 81.47 $ — Basis Swaps WTI Midland-NYMEX WTI Volumes 1,357 1,414 1,294 2,961 — Weighted-Average Contract Price $ 0.99 $ 0.88 $ 0.88 $ 1.17 $ — WTI Houston MEH-NYMEX WTI Volumes 431 361 296 877 — Weighted-Average Contract Price $ 1.68 $ 1.59 $ 1.53 $ 1.85 $ — Roll Differential Swaps NYMEX WTI Volumes 1,243 1,304 1,201 2,188 — Weighted-Average Contract Price $ 0.62 $ 0.64 $ 0.62 $ 0.42 $ — Gas Derivatives (volumes in BBtu and prices in $ per MMBtu): Swaps NYMEX HH Volumes 1,420 1,470 — — — Weighted-Average Contract Price $ 5.05 $ 5.11 $ — $ — $ — Collars NYMEX HH Volumes 5,181 6,194 8,362 19,457 — Weighted-Average Floor Price $ 3.83 $ 3.75 $ 3.90 $ 3.71 $ — Weighted-Average Ceiling Price $ 4.68 $ 4.62 $ 5.70 $ 5.89 $ — IF HSC Volumes 1,345 1,389 1,451 — — Weighted-Average Floor Price $ 4.25 $ 4.25 $ 4.25 $ — $ — Weighted-Average Ceiling Price $ 5.00 $ 4.95 $ 5.55 $ — $ — Basis Swaps IF Waha-NYMEX HH Volumes 2,462 2,442 2,337 20,958 20,501 Weighted-Average Contract Price $ (1.93) $ (1.05) $ (1.01) $ (0.86) $ (0.66) IF HSC-NYMEX HH Volumes 1,774 1,813 2,008 10,208 — Weighted-Average Contract Price $ (0.25) $ (0.25) $ (0.25) $ (0.33) $ — NGL Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps OPIS Propane Mont Belvieu Non-TET Volumes 182 181 187 — — Weighted-Average Contract Price $ 36.66 $ 36.67 $ 36.66 $ — $ — Commodity Derivative Contracts Entered Into Subsequent to March 31, 2023 Subsequent to March 31, 2023, the Company entered into NYMEX WTI price swap contracts for the fourth quarter of 2023 for a total of 0.3 MMBbl of oil production at a contract price of $77.00 per Bbl and NYMEX HH price swap contracts for 2025 for a total of 5,891 BBtu of gas production at a weighted-average contract price of $4.20 per MMBtu. Derivative Assets and Liabilities Fair Value The Company’s commodity derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities, with the exception of derivative instruments that meet the “normal purchase normal sale” exclusion. The Company does not designate its commodity derivative contracts as hedging instruments. The fair value of the commodity derivative contracts was a net asset of $62.1 million and $15.8 million as of March 31, 2023, and December 31, 2022, respectively. The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category: As of March 31, 2023 As of December 31, 2022 (in thousands) Derivative assets: Current assets $ 81,062 $ 48,677 Noncurrent assets 15,373 24,465 Total derivative assets $ 96,435 $ 73,142 Derivative liabilities: Current liabilities $ 30,723 $ 56,181 Noncurrent liabilities 3,639 1,142 Total derivative liabilities $ 34,362 $ 57,323 Offsetting of Derivative Assets and Liabilities As of March 31, 2023, and December 31, 2022, all derivative instruments held by the Company were subject to master netting arrangements with various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between it and the counterparty, at the election of both parties, for transactions that settle on the same date and in the same currency. The Company’s agreements also provide that in the event of an early termination, the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to not offset these positions in its accompanying balance sheets. The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts: Derivative Assets as of Derivative Liabilities as of March 31, December 31, 2022 March 31, December 31, 2022 (in thousands) Gross amounts presented in the accompanying balance sheets $ 96,435 $ 73,142 $ (34,362) $ (57,323) Amounts not offset in the accompanying balance sheets (25,293) (26,136) 25,293 26,136 Net amounts $ 71,142 $ 47,006 $ (9,069) $ (31,187) The following table summarizes the commodity components of the derivative settlement (gain) loss, and the net derivative (gain) loss line items presented within the accompanying unaudited condensed consolidated statements of cash flows (“accompanying statements of cash flows”) and the accompanying statements of operations, respectively: For the Three Months Ended March 31, 2023 2022 (in thousands) Derivative settlement (gain) loss: Oil contracts $ 6,226 $ 129,168 Gas contracts (11,302) 27,051 NGL contracts — 11,964 Total derivative settlement (gain) loss $ (5,076) $ 168,183 Net derivative (gain) loss: Oil contracts $ (29,167) $ 315,050 Gas contracts (20,778) 86,175 NGL contracts (1,384) 17,296 Total net derivative (gain) loss $ (51,329) $ 418,521 Credit Related Contingent Features As of March 31, 2023, all of the Company’s derivative counterparties were members of the Credit Agreement lender group. The Company does not enter into derivative contracts with counterparties that are not part of the lender group. Under the Credit Agreement, the Company is required to provide mortgage liens on assets having a value equal to at least 85 percent of the total PV-9, as defined in the Credit Agreement, of the Company’s proved oil and gas properties evaluated in the most recent reserve report. Collateral securing indebtedness under the Credit Agreement also secures the Company’s derivative agreement obligations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Note 8 - Fair Value Measurements The Company follows fair value measurement accounting guidance for all assets and liabilities measured at fair value. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The fair value hierarchy for grouping these assets and liabilities is based on the significance level of the following inputs: • Level 1 – quoted prices in active markets for identical assets or liabilities • Level 2 – quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable • Level 3 – significant inputs to the valuation model are unobservable The following table is a listing of the Company’s assets and liabilities that are measured at fair value in the accompanying balance sheets and where they are classified within the fair value hierarchy: As of March 31, 2023 As of December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 96,435 $ — $ — $ 73,142 $ — Liabilities: Derivatives (1) $ — $ 34,362 $ — $ — $ 57,323 $ — __________________________________________ (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. Both financial and non-financial assets and liabilities are categorized within the above fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used by the Company as well as the general classification of such instruments pursuant to the above fair value hierarchy. Derivatives The Company uses Level 2 inputs to measure the fair value of oil, gas, and NGL commodity derivatives. Fair values are based upon interpolated data. The Company derives internal valuation estimates taking into consideration forward commodity price curves, counterparties’ credit ratings, the Company’s credit rating, and the time value of money. These valuations are then compared to the respective counterparties’ mark-to-market statements. The considered factors result in an estimated exit price that management believes provides a reasonable and consistent methodology for valuing derivative instruments. The commodity derivative instruments utilized by the Company are not considered by management to be complex, structured, or illiquid. The oil, gas, and NGL commodity derivative markets are highly active. Please refer to Note 7 - Derivative Financial Instruments in this report, and to Note 8 - Fair Value Measurements and Note 10 - Derivative Financial Instruments in the 2022 Form 10-K for more information regarding the Company’s derivative instruments. Long-Term Debt The following table reflects the fair value of the Company’s Senior Notes obligations measured using Level 1 inputs based on quoted secondary market trading prices. These notes were not presented at fair value on the accompanying balance sheets as of March 31, 2023, or December 31, 2022, as they were recorded at carrying value, net of any unamortized deferred financing costs. Please refer to Note 5 - Long-Term Debt above for additional information. As of March 31, 2023 As of December 31, 2022 Principal Amount Fair Value Principal Amount Fair Value (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 339,207 $ 349,118 $ 337,821 6.75% Senior Notes due 2026 $ 419,235 $ 411,898 $ 419,235 $ 409,484 6.625% Senior Notes due 2027 $ 416,791 $ 404,466 $ 416,791 $ 402,120 6.5% Senior Notes due 2028 $ 400,000 $ 386,660 $ 400,000 $ 384,520 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 - Earnings Per Share Basic net income or loss per common share is calculated by dividing net income or loss available to common stockholders by the basic weighted-average number of common shares outstanding for the respective period. Diluted net income or loss per common share is calculated by dividing net income or loss available to common stockholders by the diluted weighted-average number of common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for this calculation consist primarily of non-vested restricted stock units (“RSUs”) and contingent performance share units (“PSUs”), which were measured using the treasury stock method. Please refer to Note 7 - Compensation Plans and Note 9 - Earnings Per Share in the 2022 Form 10-K for additional detail on these potentially dilutive securities. The following table sets forth the calculations of basic and diluted net income per common share: For the Three Months Ended 2023 2022 (in thousands, except per share data) Net income $ 198,552 $ 48,764 Basic weighted-average common shares outstanding 121,671 121,907 Dilutive effect of non-vested RSUs, contingent PSUs, and other 623 2,272 Diluted weighted-average common shares outstanding 122,294 124,179 Basic net income per common share $ 1.63 $ 0.40 Diluted net income per common share $ 1.62 $ 0.39 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly Report on Form 10-Q, and Regulation S-X. These financial statements do not include all information and notes required by GAAP for annual financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the 2022 Form 10-K . In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included. Operating results for the periods presented are not necessarily indicative of expected results for the full year. In connection with the preparation of the Company’s unaudited condensed consolidated financial statements, the Company evaluated events subsequent to the balance sheet date of March 31, 2023, and through the filing of this report. Additionally, certain prior period amounts have been reclassified to conform to current period presentation in the accompanying unaudited condensed consolidated financial statements. |
Recently Issued Accounting Standards, Policy [Policy Text Block] | Recently Issued Accounting Standards As of March 31, 2023, and through the filing of this report, no Accounting Standards Updates have been issued and not yet adopted that are applicable to the Company and that would have a material effect on the Company’s unaudited condensed consolidated financial statements and related disclosures. |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | The Company’s accounting policy is to not offset |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Derivatives The Company uses Level 2 inputs to measure the fair value of oil, gas, and NGL commodity derivatives. Fair values are based upon interpolated data. The Company derives internal valuation estimates taking into consideration forward commodity price curves, counterparties’ credit ratings, the Company’s credit rating, and the time value of money. These valuations are then compared to the respective counterparties’ mark-to-market statements. The considered factors result in an estimated exit price that management believes provides a reasonable and consistent methodology for valuing derivative instruments. The commodity derivative instruments utilized by the Company are not considered by management to be complex, structured, or illiquid. The oil, gas, and NGL commodity derivative markets are highly active. Please refer to Note 7 - Derivative Financial Instruments in this report, and to Note 8 - Fair Value Measurements and Note 10 - Derivative Financial Instruments in the 2022 Form 10-K for more information regarding the Company’s derivative instruments. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | The Company’s accounting policy is to not offset |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Derivatives The Company uses Level 2 inputs to measure the fair value of oil, gas, and NGL commodity derivatives. Fair values are based upon interpolated data. The Company derives internal valuation estimates taking into consideration forward commodity price curves, counterparties’ credit ratings, the Company’s credit rating, and the time value of money. These valuations are then compared to the respective counterparties’ mark-to-market statements. The considered factors result in an estimated exit price that management believes provides a reasonable and consistent methodology for valuing derivative instruments. The commodity derivative instruments utilized by the Company are not considered by management to be complex, structured, or illiquid. The oil, gas, and NGL commodity derivative markets are highly active. Please refer to Note 7 - Derivative Financial Instruments in this report, and to Note 8 - Fair Value Measurements and Note 10 - Derivative Financial Instruments in the 2022 Form 10-K for more information regarding the Company’s derivative instruments. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of oil, gas, and NGL production revenue [Table Text Block] | The table below presents oil, gas, and NGL production revenue by product type for each of the Company’s operating areas for the three months ended March 31, 2023, and 2022: Midland Basin South Texas Total Three Months Ended Three Months Ended Three Months Ended 2023 2022 2023 2022 2023 2022 (in thousands) Oil production revenue $ 320,135 $ 493,895 $ 100,703 $ 113,407 $ 420,838 $ 607,302 Gas production revenue 49,789 102,273 43,942 67,776 93,731 170,049 NGL production revenue 177 152 56,032 81,218 56,209 81,370 Total $ 370,101 $ 596,320 $ 200,677 $ 262,401 $ 570,778 $ 858,721 Relative percentage 65 % 69 % 35 % 31 % 100 % 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes for the three months ended March 31, 2023, and 2022, consists of the following: For the Three Months Ended 2023 2022 (in thousands) Current portion of income tax expense: Federal $ (4,998) $ (609) State (540) (304) Deferred portion of income tax expense (49,968) (11,948) Income tax expense $ (55,506) $ (12,861) Effective tax rate 21.8 % 20.9 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Credit Agreement as of April 21, 2023, March 31, 2023, and December 31, 2022: As of April 21, 2023 As of March 31, 2023 As of December 31, 2022 (in thousands) Revolving credit facility (1) $ — $ — $ — Letters of credit (2) 6,000 6,000 6,000 Available borrowing capacity 1,244,000 1,244,000 1,244,000 Total aggregate lender commitment amount $ 1,250,000 $ 1,250,000 $ 1,250,000 ____________________________________________ (1) Unamortized deferred financing costs attributable to the revolving credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $10.2 million and $10.8 million as of March 31, 2023, and December 31, 2022, respectively. These costs are being amortized over the term of the revolving credit facility on a straight-line basis. (2) Letters of credit outstanding reduce the amount available under the revolving credit facility on a dollar-for-dollar basis. |
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s Senior Notes, net line item on the accompanying balance sheets as of March 31, 2023, and December 31, 2022, consists of the following (collectively referred to as “Senior Notes”): As of March 31, 2023 As of December 31, 2022 Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net Principal Amount Unamortized Deferred Financing Costs Principal Amount, Net (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 1,369 $ 347,749 $ 349,118 $ 1,528 $ 347,590 6.75% Senior Notes due 2026 419,235 2,394 416,841 419,235 2,569 416,666 6.625% Senior Notes due 2027 416,791 2,978 413,813 416,791 3,172 413,619 6.5% Senior Notes due 2028 400,000 5,412 394,588 400,000 5,665 394,335 Total $ 1,585,144 $ 12,153 $ 1,572,991 $ 1,585,144 $ 12,934 $ 1,572,210 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Schedule of notional amounts of outstanding derivative positions | As of March 31, 2023, the Company had commodity derivative contracts outstanding through the fourth quarter of 2025 as summarized in the table below: Contract Period Second Quarter 2023 Third Quarter 2023 Fourth Quarter 2023 2024 2025 Oil Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps NYMEX WTI Volumes 333 607 546 — — Weighted-Average Contract Price $ 45.18 $ 59.77 $ 60.00 $ — $ — ICE Brent Volumes 910 920 920 910 — Weighted-Average Contract Price $ 86.50 $ 86.50 $ 86.50 $ 85.50 $ — Collars NYMEX WTI Volumes 464 291 — 919 — Weighted-Average Floor Price $ 67.85 $ 75.00 $ — $ 75.00 $ — Weighted-Average Ceiling Price $ 81.53 $ 93.05 $ — $ 81.47 $ — Basis Swaps WTI Midland-NYMEX WTI Volumes 1,357 1,414 1,294 2,961 — Weighted-Average Contract Price $ 0.99 $ 0.88 $ 0.88 $ 1.17 $ — WTI Houston MEH-NYMEX WTI Volumes 431 361 296 877 — Weighted-Average Contract Price $ 1.68 $ 1.59 $ 1.53 $ 1.85 $ — Roll Differential Swaps NYMEX WTI Volumes 1,243 1,304 1,201 2,188 — Weighted-Average Contract Price $ 0.62 $ 0.64 $ 0.62 $ 0.42 $ — Gas Derivatives (volumes in BBtu and prices in $ per MMBtu): Swaps NYMEX HH Volumes 1,420 1,470 — — — Weighted-Average Contract Price $ 5.05 $ 5.11 $ — $ — $ — Collars NYMEX HH Volumes 5,181 6,194 8,362 19,457 — Weighted-Average Floor Price $ 3.83 $ 3.75 $ 3.90 $ 3.71 $ — Weighted-Average Ceiling Price $ 4.68 $ 4.62 $ 5.70 $ 5.89 $ — IF HSC Volumes 1,345 1,389 1,451 — — Weighted-Average Floor Price $ 4.25 $ 4.25 $ 4.25 $ — $ — Weighted-Average Ceiling Price $ 5.00 $ 4.95 $ 5.55 $ — $ — Basis Swaps IF Waha-NYMEX HH Volumes 2,462 2,442 2,337 20,958 20,501 Weighted-Average Contract Price $ (1.93) $ (1.05) $ (1.01) $ (0.86) $ (0.66) IF HSC-NYMEX HH Volumes 1,774 1,813 2,008 10,208 — Weighted-Average Contract Price $ (0.25) $ (0.25) $ (0.25) $ (0.33) $ — NGL Derivatives (volumes in MBbl and prices in $ per Bbl): Swaps OPIS Propane Mont Belvieu Non-TET Volumes 182 181 187 — — Weighted-Average Contract Price $ 36.66 $ 36.67 $ 36.66 $ — $ — |
Schedule of fair value of derivatives in accompanying balance sheets | The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category: As of March 31, 2023 As of December 31, 2022 (in thousands) Derivative assets: Current assets $ 81,062 $ 48,677 Noncurrent assets 15,373 24,465 Total derivative assets $ 96,435 $ 73,142 Derivative liabilities: Current liabilities $ 30,723 $ 56,181 Noncurrent liabilities 3,639 1,142 Total derivative liabilities $ 34,362 $ 57,323 |
Schedule of the potential effects of master netting arrangements | The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts: Derivative Assets as of Derivative Liabilities as of March 31, December 31, 2022 March 31, December 31, 2022 (in thousands) Gross amounts presented in the accompanying balance sheets $ 96,435 $ 73,142 $ (34,362) $ (57,323) Amounts not offset in the accompanying balance sheets (25,293) (26,136) 25,293 26,136 Net amounts $ 71,142 $ 47,006 $ (9,069) $ (31,187) |
Schedule of the components of the derivative settlement (gain) loss and the net derivative (gain) loss | The following table summarizes the commodity components of the derivative settlement (gain) loss, and the net derivative (gain) loss line items presented within the accompanying unaudited condensed consolidated statements of cash flows (“accompanying statements of cash flows”) and the accompanying statements of operations, respectively: For the Three Months Ended March 31, 2023 2022 (in thousands) Derivative settlement (gain) loss: Oil contracts $ 6,226 $ 129,168 Gas contracts (11,302) 27,051 NGL contracts — 11,964 Total derivative settlement (gain) loss $ (5,076) $ 168,183 Net derivative (gain) loss: Oil contracts $ (29,167) $ 315,050 Gas contracts (20,778) 86,175 NGL contracts (1,384) 17,296 Total net derivative (gain) loss $ (51,329) $ 418,521 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table is a listing of the Company’s assets and liabilities that are measured at fair value in the accompanying balance sheets and where they are classified within the fair value hierarchy: As of March 31, 2023 As of December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives (1) $ — $ 96,435 $ — $ — $ 73,142 $ — Liabilities: Derivatives (1) $ — $ 34,362 $ — $ — $ 57,323 $ — __________________________________________ (1) This represents a financial asset or liability that is measured at fair value on a recurring basis. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table reflects the fair value of the Company’s Senior Notes obligations measured using Level 1 inputs based on quoted secondary market trading prices. These notes were not presented at fair value on the accompanying balance sheets as of March 31, 2023, or December 31, 2022, as they were recorded at carrying value, net of any unamortized deferred financing costs. Please refer to Note 5 - Long-Term Debt above for additional information. As of March 31, 2023 As of December 31, 2022 Principal Amount Fair Value Principal Amount Fair Value (in thousands) 5.625% Senior Notes due 2025 $ 349,118 $ 339,207 $ 349,118 $ 337,821 6.75% Senior Notes due 2026 $ 419,235 $ 411,898 $ 419,235 $ 409,484 6.625% Senior Notes due 2027 $ 416,791 $ 404,466 $ 416,791 $ 402,120 6.5% Senior Notes due 2028 $ 400,000 $ 386,660 $ 400,000 $ 384,520 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted net income (loss) per common share | The following table sets forth the calculations of basic and diluted net income per common share: For the Three Months Ended 2023 2022 (in thousands, except per share data) Net income $ 198,552 $ 48,764 Basic weighted-average common shares outstanding 121,671 121,907 Dilutive effect of non-vested RSUs, contingent PSUs, and other 623 2,272 Diluted weighted-average common shares outstanding 122,294 124,179 Basic net income per common share $ 1.63 $ 0.40 Diluted net income per common share $ 1.62 $ 0.39 |
Disaggregation of oil, gas, and
Disaggregation of oil, gas, and NGL production revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 570,778 | $ 858,721 |
Revenue, Remaining Performance Obligation, Amount | 0 | |
Midland Basin | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 370,101 | 596,320 |
South Texas | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 200,677 | $ 262,401 |
Revenue Benchmark | Geographic Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Relative percentage | 100% | 100% |
Revenue Benchmark | Geographic Concentration Risk | Midland Basin | ||
Segment Reporting Information [Line Items] | ||
Relative percentage | 65% | 69% |
Revenue Benchmark | Geographic Concentration Risk | South Texas | ||
Segment Reporting Information [Line Items] | ||
Relative percentage | 35% | 31% |
Oil production revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 420,838 | $ 607,302 |
Oil production revenue | Midland Basin | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 320,135 | 493,895 |
Oil production revenue | South Texas | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 100,703 | 113,407 |
Gas production revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 93,731 | 170,049 |
Gas production revenue | Midland Basin | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 49,789 | 102,273 |
Gas production revenue | South Texas | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 43,942 | 67,776 |
NGL production revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 56,209 | 81,370 |
NGL production revenue | Midland Basin | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | 177 | 152 |
NGL production revenue | South Texas | ||
Segment Reporting Information [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 56,032 | $ 81,218 |
Accounts Receivable from Custom
Accounts Receivable from Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accrued Income Receivable | ||
Accounts Receivable [Line Items] | ||
Accounts receivable from contracts with customers | $ 146.2 | $ 184.5 |
Minimum | ||
Accounts Receivable [Line Items] | ||
Revenue receipt, days after sale | 30 | |
Maximum | ||
Accounts Receivable [Line Items] | ||
Revenue receipt, days after sale | 90 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 07, 2022 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 500 | |
Stock Repurchase Program Expiration Date | Dec. 31, 2024 | |
Stock Repurchased During Period, Shares | 1,413,758 | |
Stock Repurchase Program, Shares Repurchased, Weighted Average Price Per Share | $ 28.32 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 402.8 | |
Stock Repurchased and Retired During Period Excluding Taxes, Commission, and Fees, Value | $ 40 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Components of the provision for income taxes | ||
Federal | $ (4,998) | $ (609) |
State | (540) | (304) |
Deferred portion of income tax expense | (49,968) | (11,948) |
Income tax expense | $ (55,506) | $ (12,861) |
Effective tax rate | 21.80% | 20.90% |
Credit Agreement (Details)
Credit Agreement (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Apr. 21, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 0 | $ 0 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility, maximum loan amount | 3,000,000 | ||
Revolving credit facility, current borrowing base | 2,500,000 | ||
Revolving credit facility, aggregate lender commitments | $ 1,250,000 | 1,250,000 | |
Debt Instrument, Maturity Date | Aug. 02, 2027 | ||
Revolving credit facility | $ 0 | 0 | |
Letters of credit | 6,000 | 6,000 | |
Available borrowing capacity | 1,244,000 | 1,244,000 | |
Revolving Credit Facility, unamortized deferred financing costs | $ 10,200 | $ 10,800 | |
Revolving Credit Facility | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility, aggregate lender commitments | $ 1,250,000 | ||
Revolving credit facility | 0 | ||
Letters of credit | 6,000 | ||
Available borrowing capacity | $ 1,244,000 |
Senior Notes (Details)
Senior Notes (Details) - USD ($) $ in Thousands | Feb. 14, 2022 | Mar. 31, 2023 | Dec. 31, 2022 |
Senior Notes [Line Items] | |||
Senior Notes | $ 1,572,991 | $ 1,572,210 | |
5.0% Senior Unsecured Notes due 2024 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 5% | 5% | |
Senior Notes, exchanged or repurchased face amount | $ 104,800 | ||
Senior Notes, Redemption Price, Percentage | 100% | ||
5.625% Senior Unsecured Notes due 2025 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 5.625% | 5.625% | |
Senior Notes, Principal amount | $ 349,118 | $ 349,118 | |
Senior Notes, unamortized deferred financing costs | 1,369 | 1,528 | |
Senior Notes | $ 347,749 | $ 347,590 | |
6.75% Senior Unsecured Notes due 2026 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 6.75% | 6.75% | |
Senior Notes, Principal amount | $ 419,235 | $ 419,235 | |
Senior Notes, unamortized deferred financing costs | 2,394 | 2,569 | |
Senior Notes | $ 416,841 | $ 416,666 | |
6.625% Senior Unsecured Notes due 2027 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 6.625% | 6.625% | |
Senior Notes, Principal amount | $ 416,791 | $ 416,791 | |
Senior Notes, unamortized deferred financing costs | 2,978 | 3,172 | |
Senior Notes | $ 413,813 | $ 413,619 | |
6.5% Senior Unsecured Notes Due 2028 | |||
Senior Notes [Line Items] | |||
Senior Notes, interest rate, stated percentage | 6.50% | 6.50% | |
Senior Notes, Principal amount | $ 400,000 | $ 400,000 | |
Senior Notes, unamortized deferred financing costs | 5,412 | 5,665 | |
Senior Notes | 394,588 | 394,335 | |
Senior Notes | |||
Senior Notes [Line Items] | |||
Senior Notes, Principal amount | 1,585,144 | 1,585,144 | |
Senior Notes, unamortized deferred financing costs | $ 12,153 | $ 12,934 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 27, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Long-Term Debt [Line Items] | |||
Debt Instrument, Covenant Compliance | The Company was in compliance with all financial and non-financial covenants as of March 31, 2023, and through the filing of this report. | ||
Capitalized interest costs | $ 5.5 | $ 3 | |
Subsequent Event | |||
Long-Term Debt [Line Items] | |||
Debt Instrument, Covenant Compliance | The Company was in compliance with all financial and non-financial covenants as of March 31, 2023, and through the filing of this report. |
Commitments (Details)
Commitments (Details) - Drilling Rig Leasing Contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 27, 2023 | |
Commitments and Contingencies [Line Items] | ||
Early Termination Penalty Incurred for Rig Contract Cancellation | $ 0 | |
Subsequent Event | ||
Commitments and Contingencies [Line Items] | ||
Contractual Obligation | $ 30.3 | |
Early Termination Penalty for Rig Contract Cancellation | $ 18.8 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) BTU in Billions | 1 Months Ended | |
Mar. 31, 2023 BTU $ / Barrels $ / EnergyContent bbl | Apr. 27, 2023 BTU $ / Barrels $ / EnergyContent bbl | |
NYMEX Oil Swap Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 333,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 45.18 | |
NYMEX Oil Swap Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 607,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 59.77 | |
NYMEX Oil Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 546,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 60 | |
NYMEX Oil Swap Contract Fourth Quarter, Year 1 | Subsequent Event | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 300,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 77 | |
NYMEX Oil Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
NYMEX Oil Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
ICE Brent Oil Swap Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 910,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 86.50 | |
ICE Brent Oil Swap Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 920,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 86.50 | |
ICE Brent Oil Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 920,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 86.50 | |
ICE Brent Oil Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 910,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 85.50 | |
ICE Brent Oil Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
NYMEX Oil Collar Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 464,000 | |
Derivative, Weighted-Average Floor Price | 67.85 | |
Derivative, Weighted-Average Ceiling Price | 81.53 | |
NYMEX Oil Collar Contract, Third Quarter Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 291,000 | |
Derivative, Weighted-Average Floor Price | 75 | |
Derivative, Weighted-Average Ceiling Price | 93.05 | |
NYMEX Oil Collar Contract, Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Weighted-Average Floor Price | 0 | |
Derivative, Weighted-Average Ceiling Price | 0 | |
NYMEX Oil Collar Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 919,000 | |
Derivative, Weighted-Average Floor Price | 75 | |
Derivative, Weighted-Average Ceiling Price | 81.47 | |
NYMEX Oil Collar Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Weighted-Average Floor Price | 0 | |
Derivative, Weighted-Average Ceiling Price | 0 | |
NYMEX Oil Calendar Month Average Roll Differential Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,243,000 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0.62 | |
NYMEX Oil Calendar Month Average Roll Differential Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,304,000 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0.64 | |
NYMEX Oil Calendar Month Average Roll Differential Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,201,000 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0.62 | |
NYMEX Oil Calendar Month Average Roll Differential Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 2,188,000 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0.42 | |
NYMEX Oil Calendar Month Average Roll Differential Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Roll Differential Swap Type, Weighted-Average Contract Price | 0 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,357,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0.99 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,414,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0.88 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 1,294,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0.88 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 2,961,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.17 | |
WTI Midland NYMEX WTI | Oil Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 431,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.68 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 361,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.59 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 296,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.53 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 877,000 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 1.85 | |
WTI Houston MEH NYMEX WTI | Oil Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Oil Basis Swap Type, Weighted-Average Contract Price | 0 | |
NYMEX HH | Gas Swaps Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,420 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 5.05 | |
NYMEX HH | Gas Swaps Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,470 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 5.11 | |
NYMEX HH | Gas Swaps Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 0 | |
NYMEX HH | Gas Swaps Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 0 | |
NYMEX HH | Gas Swaps Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 0 | |
NYMEX HH | Gas Swaps Contract, Year 3 | Subsequent Event | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 5,891 | |
Derivative, Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 4.20 | |
NYMEX HH | Gas Collar Contract, Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 5,181 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 3.83 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 4.68 | |
NYMEX HH | Gas Collar Contract, Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 6,194 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 3.75 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 4.62 | |
NYMEX HH | Gas Collar Contract, Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 8,362 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 3.90 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5.70 | |
NYMEX HH | Gas Collar Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 19,457 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 3.71 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5.89 | |
NYMEX HH | Gas Collar Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 0 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 0 | |
IF HSC | Gas Collar Contract, Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,345 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 4.25 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5 | |
IF HSC | Gas Collar Contract, Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,389 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 4.25 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 4.95 | |
IF HSC | Gas Collar Contract, Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,451 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 4.25 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 5.55 | |
IF HSC | Gas Collar Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 0 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 0 | |
IF HSC | Gas Collar Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Weighted-Average Floor Price | $ / EnergyContent | 0 | |
Derivative, Weighted-Average Ceiling Price | $ / EnergyContent | 0 | |
IF WAHA NYMEX HH | Gas Basis Swap Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 2,462 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (1.93) | |
IF WAHA NYMEX HH | Gas Basis Swap Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 2,442 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (1.05) | |
IF WAHA NYMEX HH | Gas Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 2,337 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (1.01) | |
IF WAHA NYMEX HH | Gas Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 20,958 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.86) | |
IF WAHA NYMEX HH | Gas Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 20,501 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.66) | |
IF HSC NYMEX HH | Gas Basis Swap Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,774 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.25) | |
IF HSC NYMEX HH | Gas Basis Swap Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 1,813 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.25) | |
IF HSC NYMEX HH | Gas Basis Swap Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 2,008 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.25) | |
IF HSC NYMEX HH | Gas Basis Swap Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 10,208 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | (0.33) | |
IF HSC NYMEX HH | Gas Basis Swap Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | BTU | 0 | |
Derivative, Gas Basis Swap Type, Weighted-Average Contract Price | $ / EnergyContent | 0 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract Second Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 182,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 36.66 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract Third Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 181,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 36.67 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract Fourth Quarter, Year 1 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 187,000 | |
Derivative, Swap Type, Weighted-Average Contract Price | 36.66 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract, Year 2 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 | |
OPIS Propane Mont Belvieu Non-TET | NGL Swaps Contract, Year 3 | ||
Derivative Financial Instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | bbl | 0 | |
Derivative, Swap Type, Weighted-Average Contract Price | 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair value of derivative assets and liabilities | ||
Derivative, fair value, net | $ 62,100 | $ 15,800 |
Derivative assets, current | 81,062 | 48,677 |
Derivative assets, noncurrent | 15,373 | 24,465 |
Total derivative assets | 96,435 | 73,142 |
Derivative liabilities, current | 30,723 | 56,181 |
Derivatives liabilities, noncurrent | 3,639 | 1,142 |
Total derivative liabilities | (34,362) | (57,323) |
Derivative asset, amounts not offset in the accompanying balance sheets | (25,293) | (26,136) |
Derivative liabilities, amounts not offset in the accompanying balance sheets | 25,293 | 26,136 |
Derivative asset, fair value, net amounts | 71,142 | 47,006 |
Derivative liabilities, fair value, net amounts | (9,069) | (31,187) |
Not Designated as Hedging Instrument | ||
Fair value of derivative assets and liabilities | ||
Derivative assets, current | 81,062 | 48,677 |
Derivative assets, noncurrent | 15,373 | 24,465 |
Derivative liabilities, current | 30,723 | 56,181 |
Derivatives liabilities, noncurrent | 3,639 | 1,142 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Not Designated as Hedging Instrument | ||
Fair value of derivative assets and liabilities | ||
Total derivative assets | 96,435 | 73,142 |
Total derivative liabilities | $ 34,362 | $ 57,323 |
Derivative Financial Instrume_5
Derivative Financial Instruments Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||
Derivative settlement (gain) loss | $ (5,076) | $ 168,183 |
Net derivative (gain) loss | (51,329) | 418,521 |
Oil Contracts | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Derivative settlement (gain) loss | 6,226 | 129,168 |
Net derivative (gain) loss | (29,167) | 315,050 |
Gas Contracts | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Derivative settlement (gain) loss | (11,302) | 27,051 |
Net derivative (gain) loss | (20,778) | 86,175 |
NGL Contracts | ||
Derivative Instruments, (Gain) Loss [Line Items] | ||
Derivative settlement (gain) loss | 0 | 11,964 |
Net derivative (gain) loss | $ (1,384) | $ 17,296 |
Credit Facility and Derivative
Credit Facility and Derivative Counterparties (Details) | Mar. 31, 2023 |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |
Percentage of proved property secured for credit facility borrowing | 85% |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Derivative Assets, Fair Value, Gross Asset | $ 96,435 | $ 73,142 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | $ (34,362) | $ (57,323) |
5.625% Senior Unsecured Notes due 2025 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 5.625% | 5.625% |
Senior Notes, Principal amount | $ 349,118 | $ 349,118 |
Long-term Debt, Fair Value | $ 339,207 | $ 337,821 |
6.75% Senior Unsecured Notes due 2026 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 6.75% | 6.75% |
Senior Notes, Principal amount | $ 419,235 | $ 419,235 |
Long-term Debt, Fair Value | $ 411,898 | $ 409,484 |
6.625% Senior Unsecured Notes due 2027 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 6.625% | 6.625% |
Senior Notes, Principal amount | $ 416,791 | $ 416,791 |
Long-term Debt, Fair Value | $ 404,466 | $ 402,120 |
6.5% Senior Unsecured Notes Due 2028 | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Senior Notes, interest rate, stated percentage | 6.50% | 6.50% |
Senior Notes, Principal amount | $ 400,000 | $ 400,000 |
Long-term Debt, Fair Value | 386,660 | 384,520 |
Not Designated as Hedging Instrument | Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Assets | ||
Derivative Assets, Fair Value, Gross Asset | 0 | 0 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Not Designated as Hedging Instrument | Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Assets | ||
Derivative Assets, Fair Value, Gross Asset | 96,435 | 73,142 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | 34,362 | 57,323 |
Not Designated as Hedging Instrument | Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Assets | ||
Derivative Assets, Fair Value, Gross Asset | 0 | 0 |
Liabilities | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share Reconciliation [Abstract] | ||
Net income | $ 198,552 | $ 48,764 |
Basic weighted-average common shares outstanding | 121,671 | 121,907 |
Dilutive effect of non-vested RSUs, contingent PSUs, and other | 623 | 2,272 |
Diluted weighted-average common shares outstanding | 122,294 | 124,179 |
Basic net income per common share | $ 1.63 | $ 0.40 |
Diluted net income per common share | $ 1.62 | $ 0.39 |