Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-14039 | |
Entity Registrant Name | Callon Petroleum Co | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 64-0844345 | |
Entity Address, Address Line One | One Briarlake Plaza | |
Entity Address, Address Line Two | 2000 W. Sam Houston Parkway S., Suite 2000 | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77042 | |
City Area Code | (281) | |
Local Phone Number | 589-5200 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CPE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,709,682 | |
Entity Central Index Key | 0000928022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 6,100 | $ 9,882 |
Accounts receivable, net | 360,955 | 232,436 |
Fair value of derivatives | 0 | 22,381 |
Other current assets | 37,960 | 30,745 |
Total current assets | 405,015 | 295,444 |
Oil and natural gas properties, full cost accounting method: | ||
Evaluated properties, net | 3,573,282 | 3,352,821 |
Unevaluated properties | 1,876,531 | 1,812,827 |
Total oil and natural gas properties, net | 5,449,813 | 5,165,648 |
Other property and equipment, net | 26,332 | 28,128 |
Deferred financing costs | 14,961 | 18,125 |
Other assets, net | 52,209 | 40,158 |
Total assets | 5,948,330 | 5,547,503 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 606,093 | 569,991 |
Fair value of derivatives | 301,362 | 185,977 |
Other current liabilities | 134,581 | 116,523 |
Total current liabilities | 1,042,036 | 872,491 |
Long-term debt | 2,516,337 | 2,694,115 |
Asset retirement obligations | 57,427 | 54,458 |
Fair value of derivatives | 21,251 | 11,409 |
Other long-term liabilities | 51,942 | 49,262 |
Total liabilities | 3,688,993 | 3,681,735 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 617 | 614 |
Capital in excess of par value | 4,018,178 | 4,012,358 |
Accumulated deficit | (1,759,458) | (2,147,204) |
Total stockholders’ equity | 2,259,337 | 1,865,768 |
Total liabilities and stockholders’ equity | $ 5,948,330 | $ 5,547,503 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 130,000,000 | 78,750,000 |
Common stock, outstanding (in shares) | 61,715,672 | 61,370,684 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Revenues: | ||||
Total operating revenues | $ 913,620 | $ 440,399 | $ 1,690,838 | $ 800,280 |
Operating Expenses: | ||||
Lease operating | 72,940 | 46,460 | 140,268 | 86,913 |
Production and ad valorem taxes | 44,873 | 21,958 | 82,551 | 40,397 |
Gathering, transportation and processing | 23,267 | 20,031 | 44,042 | 38,012 |
Depreciation, depletion and amortization | 109,409 | 83,128 | 212,388 | 154,115 |
General and administrative | 10,909 | 11,065 | 28,030 | 27,864 |
Merger, integration and transaction | 0 | 0 | 769 | 0 |
Total operating expenses | 416,795 | 231,891 | 774,716 | 437,467 |
Income From Operations | 496,825 | 208,508 | 916,122 | 362,813 |
Other (Income) Expenses: | ||||
Interest expense, net of capitalized amounts | 20,691 | 24,634 | 42,249 | 49,050 |
Loss on derivative contracts | 81,648 | 190,463 | 439,948 | 404,986 |
Loss on extinguishment of debt | 42,417 | 0 | 42,417 | 0 |
Other (income) expense | 1,051 | 5,584 | 269 | 2,278 |
Total other expense | 145,807 | 220,681 | 524,883 | 456,314 |
Income (Loss) Before Income Taxes | 351,018 | (12,173) | 391,239 | (93,501) |
Income tax benefit (expense) | (3,009) | 478 | (3,493) | 1,399 |
Net Income (Loss) | $ 348,009 | $ (11,695) | $ 387,746 | $ (92,102) |
Net Income (Loss) Per Common Share: | ||||
Basic (in dollars per share) | $ 5.64 | $ (0.25) | $ 6.30 | $ (2.07) |
Diluted (in dollars per share) | $ 5.62 | $ (0.25) | $ 6.26 | $ (2.07) |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 61,679 | 46,267 | 61,583 | 44,439 |
Diluted (in shares) | 61,909 | 46,267 | 61,956 | 44,439 |
Oil | ||||
Operating Revenues: | ||||
Total operating revenues | $ 619,812 | $ 333,442 | $ 1,173,061 | $ 600,487 |
Natural gas | ||||
Operating Revenues: | ||||
Total operating revenues | 64,913 | 24,080 | 108,889 | 48,300 |
Natural gas liquids | ||||
Operating Revenues: | ||||
Total operating revenues | 75,530 | 36,625 | 143,148 | 65,982 |
Sales of purchased oil and gas | ||||
Operating Revenues: | ||||
Total operating revenues | 153,365 | 46,252 | 265,740 | 85,511 |
Operating Expenses: | ||||
Cost of purchased oil and gas | $ 155,397 | $ 49,249 | $ 266,668 | $ 90,166 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 39,759 | |||
Beginning balance at Dec. 31, 2020 | $ 711,002 | $ 398 | $ 3,222,959 | $ (2,512,355) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (80,407) | (80,407) | ||
Restricted stock units (in shares) | 13 | |||
Restricted stock units | 2,609 | 2,609 | ||
Warrant exercises (in shares) | 6,385 | |||
Warrant exercises | 134,818 | $ 64 | 134,754 | |
Ending balance (in shares) at Mar. 31, 2021 | 46,157 | |||
Ending balance at Mar. 31, 2021 | 768,022 | $ 462 | 3,360,322 | (2,592,762) |
Beginning balance (in shares) at Dec. 31, 2020 | 39,759 | |||
Beginning balance at Dec. 31, 2020 | 711,002 | $ 398 | 3,222,959 | (2,512,355) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (92,102) | |||
Ending balance (in shares) at Jun. 30, 2021 | 46,289 | |||
Ending balance at Jun. 30, 2021 | 757,288 | $ 463 | 3,361,282 | (2,604,457) |
Beginning balance (in shares) at Mar. 31, 2021 | 46,157 | |||
Beginning balance at Mar. 31, 2021 | 768,022 | $ 462 | 3,360,322 | (2,592,762) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (11,695) | (11,695) | ||
Restricted stock units (in shares) | 132 | |||
Restricted stock units | 961 | $ 1 | 960 | |
Ending balance (in shares) at Jun. 30, 2021 | 46,289 | |||
Ending balance at Jun. 30, 2021 | 757,288 | $ 463 | 3,361,282 | (2,604,457) |
Beginning balance (in shares) at Dec. 31, 2021 | 61,371 | |||
Beginning balance at Dec. 31, 2021 | 1,865,768 | $ 614 | 4,012,358 | (2,147,204) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 39,737 | 39,737 | ||
Restricted stock units (in shares) | 6 | |||
Restricted stock units | 2,790 | 2,790 | ||
Common stock issued for Primexx Acquisition (in shares) | 117 | |||
Common stock issued for Primexx Acquisition | 6,295 | $ 1 | 6,294 | |
Ending balance (in shares) at Mar. 31, 2022 | 61,494 | |||
Ending balance at Mar. 31, 2022 | 1,914,590 | $ 615 | 4,021,442 | (2,107,467) |
Beginning balance (in shares) at Dec. 31, 2021 | 61,371 | |||
Beginning balance at Dec. 31, 2021 | 1,865,768 | $ 614 | 4,012,358 | (2,147,204) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 387,746 | |||
Ending balance (in shares) at Jun. 30, 2022 | 61,716 | |||
Ending balance at Jun. 30, 2022 | 2,259,337 | $ 617 | 4,018,178 | (1,759,458) |
Beginning balance (in shares) at Mar. 31, 2022 | 61,494 | |||
Beginning balance at Mar. 31, 2022 | 1,914,590 | $ 615 | 4,021,442 | (2,107,467) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 348,009 | 348,009 | ||
Restricted stock units (in shares) | 244 | |||
Restricted stock units | (1,899) | $ 2 | (1,901) | |
Common stock issued for Primexx Acquisition (in shares) | (22) | |||
Common stock issued for Primexx Acquisition | (1,363) | (1,363) | ||
Ending balance (in shares) at Jun. 30, 2022 | 61,716 | |||
Ending balance at Jun. 30, 2022 | $ 2,259,337 | $ 617 | $ 4,018,178 | $ (1,759,458) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||||||
Net income (loss) | $ 348,009 | $ 39,737 | $ (11,695) | $ (80,407) | $ 387,746 | $ (92,102) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 212,388 | 154,115 | |||||
Amortization of non-cash debt related items, net | 3,201 | 4,508 | |||||
Loss on derivative contracts | 439,948 | 404,986 | |||||
Cash paid for commodity derivative settlements, net | (186,397) | (85,409) | (287,922) | (127,571) | |||
Loss on extinguishment of debt | 42,417 | 0 | |||||
Non-cash expense related to share-based awards | 956 | 12,887 | |||||
Other, net | 5,200 | 4,511 | |||||
Changes in current assets and liabilities: | |||||||
Accounts receivable | (130,394) | (67,357) | |||||
Other current assets | (7,497) | (7,423) | |||||
Accounts payable and accrued liabilities | (18,940) | 26,714 | |||||
Cash received for settlements of contingent consideration arrangements, net | 6,492 | 0 | |||||
Net cash provided by operating activities | 653,595 | 313,268 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (413,939) | (251,003) | |||||
Acquisition of oil and gas properties | (15,945) | (2,215) | |||||
Proceeds from sales of assets | 4,590 | 31,611 | |||||
Cash paid for settlement of contingent consideration arrangement | (19,171) | 0 | |||||
Other, net | 8,709 | 4,220 | |||||
Net cash used in investing activities | (435,756) | (217,387) | |||||
Cash flows from financing activities: | |||||||
Borrowings on Credit Facility | 1,724,000 | 736,500 | |||||
Payments on Credit Facility | (1,730,000) | (846,500) | |||||
Issuance of 7.50% Senior Notes due 2030 | 600,000 | 0 | |||||
Redemption of 6.125% Senior Notes due 2024 | (467,287) | 0 | |||||
Redemption of 9.00% Second Lien Senior Secured Notes due 2025 | (339,507) | 0 | |||||
Cash received for settlement of contingent consideration arrangement | 8,512 | 0 | |||||
Payment of deferred financing costs | (10,542) | 0 | |||||
Other, net | (6,797) | (2,317) | |||||
Net cash used in financing activities | (221,621) | (112,317) | |||||
Net change in cash and cash equivalents | (3,782) | (16,436) | |||||
Balance, beginning of period | $ 9,882 | $ 20,236 | 9,882 | 20,236 | $ 20,236 | ||
Balance, end of period | $ 6,100 | $ 3,800 | $ 6,100 | $ 3,800 | $ 9,882 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Jun. 30, 2022 |
7.50% senior notes due 2030 | |
Debt instrument, interest rate, stated (as a percent) | 7.50% |
6.125% Senior Notes | |
Debt instrument, interest rate, stated (as a percent) | 6.125% |
9.00% Second Lien Senior Secured Notes due 2025 | |
Debt instrument, interest rate, stated (as a percent) | 9% |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Callon Petroleum Company is an independent oil and natural gas company focused on the acquisition, exploration and development of high-quality assets in the leading oil plays of South and West Texas. As used herein, the “Company,” “Callon,” “we,” “us,” and “our” refer to Callon Petroleum Company and its predecessors and subsidiaries unless the context requires otherwise. The Company’s activities are primarily focused on horizontal development in the Midland and Delaware Basins, both of which are part of the larger Permian Basin in West Texas, as well as the Eagle Ford in South Texas. The Company’s primary operations in the Permian reflect a high-return, oil-weighted drilling inventory with multiple prospective horizontal development intervals and are complemented by a well-established and repeatable cash flow-generating business in the Eagle Ford. Basis of Presentation The accompanying unaudited interim consolidated financial statements include the accounts of the Company after elimination of intercompany transactions and balances. These financial statements have been prepared pursuant to the rules and regulations of the SEC and therefore do not include all disclosures required for financial statements prepared in conformity with GAAP. In the opinion of management, these financial statements reflect all normal, recurring adjustments and accruals considered necessary to present fairly, in all material respects, the Company’s interim financial position, results of operations and cash flows. However, the results of operations for the periods presented are not necessarily indicative of the results of operations that may be expected for the full year. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications did not have a material impact on prior period financial statements. Significant Accounting Policies The Company’s significant accounting policies are described in “Note 2 - Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its 2021 Annual Report and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this report should be read in conjunction with the Company’s 2021 Annual Report. Recently Adopted Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”). ASU 2020-06 was issued to reduce the complexity associated with accounting for certain financial instruments with characteristics of liabilities and equity. The guidance is to be applied using either a modified retrospective or a fully retrospective method. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company adopted ASU 2020-06 on January 1, 2022. The adoption of ASU 2020-06 did not have a material impact to the Company’s consolidated financial statements or disclosures. Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) followed by ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), issued in January 2021 to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. In April 2022, the FASB proposed to extend the effective date through December 31, 2024; however, a final ruling has not been issued. As of June 30, 2022, the Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01. Please refer to “Note 6 – Borrowings” for discussion of the use of the adjusted LIBO rate in connection with borrowings under the Company’s Credit Facility (as defined below). Subsequent Events The Company evaluates subsequent events through the date the financial statements are issued. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers The Company recognizes oil, natural gas, and NGL production revenue at the point in time when control of the product transfers to the purchaser, which differs depending on the applicable contractual terms. Transfer of control also drives the presentation of gathering, transportation and processing in the consolidated statements of operations. See “Note 3 - Revenue Recognition” of the Notes to Consolidated Financial Statements in the 2021 Annual Report for more information regarding the types of contracts under which oil, natural gas, and NGL production revenue is generated. Accounts Receivable from Revenues from Contracts with Customers Net accounts receivable include amounts billed and currently due from revenues from contracts with customers of our oil and natural gas production, which had a balance at June 30, 2022 and December 31, 2021 of $274.5 million and $171.8 million, respectively, and are presented in “Accounts receivable, net” in the consolidated balance sheets. Prior Period Performance Obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. |
Acquisitions_and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures 2021 Acquisitions and Divestitures Primexx Acquisition On October 1, 2021, the Company closed on the acquisition of certain producing oil and gas properties, undeveloped acreage and associated infrastructure assets in the Delaware Basin from Primexx Resource Development, LLC (“Primexx”) and BPP Acquisition, LLC (“BPP”) for an adjusted purchase price of approximately $444.8 million in cash, inclusive of the deposit paid at signing, 8.84 million shares of the Company’s common stock and approximately $25.2 million paid upon final closing for total consideration of $880.8 million (the “Primexx Acquisition”), subject to potential adjustments for applicable indemnification claims as discussed below. The Company funded the cash portion of the total consideration with borrowings under its Credit Facility. Of the 8.84 million shares of the Company’s common stock issued upon closing, 2.6 million shares were held in escrow pursuant to the purchase and sale agreements with Primexx and BPP (collectively, the “Primexx PSAs”) . Pursuant to the Primexx PSAs, 50% of the shares held in escrow were released six months after the closing date, which was on April 1, 2022, and the remaining shares will be released twelve months after the closing date, which will be on October 1, 2022, in each case subject to holdback for the satisfaction of any applicable indemnification claims that may be made under the Primexx PSAs. Also, pursuant to the Primexx PSAs, certain interest owners exercised their option to sell their interest in the properties included in the Primexx Acquisition to the Company for consideration structured similarly to the Primexx Acquisition, for an incremental purchase price totaling approximately $31.8 million, net of customary purchase price adjustments, of which $10.7 million closed during the first quarter of 2022. The Primexx Acquisition was accounted for as a business combination; therefore, the purchase price was allocated to the assets acquired and the liabilities assumed based on their estimated acquisition date fair values with information available at that time. A combination of a discounted cash flow model and market data was used by a third-party specialist in determining the fair value of the oil and gas properties. Significant inputs into the calculation included future commodity prices, estimated volumes of oil and gas reserves, expectations for timing and amount of future development and operating costs, future plugging and abandonment costs and a risk adjusted discount rate. Certain data necessary to complete the purchase price allocation is not yet available. The Company expects to complete the purchase price allocation during the 12-month period following the acquisition date. The following table sets forth the Company’s preliminary allocation of the total estimated consideration of $912.7 million to the assets acquired and liabilities assumed as of the acquisition date. Preliminary Purchase (In thousands) Assets: Other current assets $10,250 Evaluated oil and natural gas properties 685,478 Unevaluated properties 278,222 Total assets acquired $973,950 Liabilities: Suspense payable $16,447 Other current liabilities 33,482 Asset retirement obligation 1,898 Other long-term liabilities 9,425 Total liabilities assumed $61,252 Total consideration $912,698 Approximately $170.4 million and $308.5 million of revenues and $36.9 million and $65.7 million of direct operating expenses attributed to the Primexx Acquisition are included in the Company’s consolidated statements of operations for the three and six months ended June 30, 2022, respectively. Pro Forma Operating Results (Unaudited). The following unaudited pro forma combined condensed financial data for the year ended December 31, 2021 was derived from the historical financial statements of the Company giving effect to the Primexx Acquisition, as if it had occurred on January 1, 2020. The below information reflects pro forma adjustments for the issuance of the Company’s common stock and the borrowings under the Credit Facility as total consideration, as well as pro forma adjustments based on available information and certain assumptions that the Company believes provide a reasonable basis for reflecting the significant pro forma effects directly attributable to the Primexx Acquisition. The pro forma consolidated statements of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Primexx Acquisition taken place on January 1, 2020 and is not intended to be a projection of future results. For the Year Ended December 31, 2021 (In thousands) Revenues $2,294,893 Income from operations 1,151,493 Net income 482,690 Basic earnings per common share $8.37 Diluted earnings per common share $8.13 Non-Core Asset Divestitures |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net As of June 30, 2022 and December 31, 2021, total property and equipment, net consisted of the following: June 30, 2022 December 31, 2021 Oil and natural gas properties, full cost accounting method (In thousands) Evaluated properties $9,667,447 $9,238,823 Accumulated depreciation, depletion, amortization and impairments (6,094,165) (5,886,002) Evaluated properties, net 3,573,282 3,352,821 Unevaluated properties Unevaluated leasehold and seismic costs 1,570,069 1,557,453 Capitalized interest 306,462 255,374 Total unevaluated properties 1,876,531 1,812,827 Total oil and natural gas properties, net $5,449,813 $5,165,648 Other property and equipment $57,201 $58,367 Accumulated depreciation (30,869) (30,239) Other property and equipment, net $26,332 $28,128 The Company capitalized internal costs of employee compensation and benefits, including share-based compensation, directly associated with acquisition, exploration and development activities totaling $11.3 million and $12.1 million for the three months ended June 30, 2022 and 2021, respectively, and $22.9 million and $23.3 million for the six months ended June 30, 2022 and 2021, respectively. The Company capitalized interest costs to unproved properties totaling $26.3 million and $23.9 million for the three months ended June 30, 2022 and 2021, respectively, and $51.8 million and $47.9 million for the six months ended June 30, 2022 and 2021, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding for the periods presented. The calculation of diluted earnings per share includes the potential dilutive impact of non-vested restricted stock units and unexercised warrants outstanding during the periods presented, as calculated using the treasury stock method, unless their effect is anti-dilutive. For the three and six months ended June 30, 2021, the Company reported a net loss. As a result, the calculation of diluted weighted average common shares outstanding excluded all potentially dilutive common shares outstanding for those periods. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share amounts) Net Income (Loss) $348,009 ($11,695) $387,746 ($92,102) Basic weighted average common shares outstanding 61,679 46,267 61,583 44,439 Dilutive impact of restricted stock units 230 — 373 — Diluted weighted average common shares outstanding 61,909 46,267 61,956 44,439 Net Income (Loss) Per Common Share Basic $5.64 ($0.25) $6.30 ($2.07) Diluted $5.62 ($0.25) $6.26 ($2.07) Restricted stock units (1) 26 140 12 882 Warrants (1) 345 1,066 336 3,433 (1) Shares excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company’s borrowings consisted of the following: June 30, 2022 December 31, 2021 (In thousands) 6.125% Senior Notes due 2024 $— $460,241 Senior Secured Revolving Credit Facility due 2024 779,000 785,000 9.00% Second Lien Senior Secured Notes due 2025 — 319,659 8.25% Senior Notes due 2025 187,238 187,238 6.375% Senior Notes due 2026 320,783 320,783 8.00% Senior Notes due 2028 650,000 650,000 7.50% Senior Notes due 2030 600,000 — Total principal outstanding 2,537,021 2,722,921 Unamortized premium on 6.125% Senior Notes — 2,373 Unamortized discount on 9.00% Second Lien Notes — (14,852) Unamortized premium on 8.25% Senior Notes 2,096 2,477 Unamortized deferred financing costs for Second Lien Notes — (2,910) Unamortized deferred financing costs for Senior Unsecured Notes (22,780) (15,894) Total carrying value of borrowings (1) $2,516,337 $2,694,115 (1) Excludes unamortized deferred financing costs related to the Company’s senior secured revolving credit facility of $15.0 million and $18.1 million as of June 30, 2022 and December 31, 2021, respectively, which are classified in “Deferred financing costs” in the consolidated balance sheets. Senior Secured Revolving Credit Facility The Company has a senior secured revolving credit facility with a syndicate of lenders (the “Credit Facility”) that, as of June 30, 2022, had a maximum credit amount of $5.0 billion, a borrowing base and elected commitment amount of $1.6 billion, with borrowings outstanding of $779.0 million at a weighted-average interest rate of 4.16%, and letters of credit outstanding of $16.4 million. The credit agreement governing the Credit Facility provides for interest-only payments until December 20, 2024 when the credit agreement matures and any outstanding borrowings are due. The Credit Facility is secured by first preferred mortgages covering the Company’s major producing properties. The borrowing base under the credit agreement is subject to regular redeterminations in the spring and fall of each year, as well as special redeterminations described in the credit agreement, which in each case may reduce the amount of the borrowing base. On May 2, 2022, as part of the Company’s spring 2022 redetermination, the borrowing base and elected commitment amount of $1.6 billion were reaffirmed. Borrowings outstanding under the credit agreement bear interest at the Company’s option at either (i) a base rate for a base rate loan plus a margin between 1.00% to 2.00%, where the base rate is defined as the greatest of the prime rate, the federal funds rate plus 0.50% and the adjusted LIBO rate plus 1.00%, or (ii) an adjusted LIBO rate for a Eurodollar loan plus a margin between 2.00% to 3.00%. The Company also incurs commitment fees at rates ranging between 0.375% to 0.500% on the unused portion of lender commitments, which are included in “Interest expense, net of capitalized amounts” in the consolidated statements of operations. Issuance of 7.50% Senior Notes and Redemption of 6.125% Senior Notes and Second Lien Notes On June 9, 2022, the Company entered into a Purchase Agreement pursuant to which it agreed to issue and sell $600.0 million in aggregate principal amount of 7.50% senior unsecured notes due 2030 (the “7.50% Senior Notes”) in a private placement, which closed on June 24, 2022, for proceeds of approximately $588.0 million, net of underwriting discounts and commissions. The 7.50% Senior Notes mature on June 15, 2030 and interest is payable semi-annually each June 15 and December 15, commencing on December 15, 2022. At any time prior to June 15, 2025, the Company may, from time to time, redeem up to 35% of the aggregate principal amount of the 7.50% Senior Notes in an amount of cash not greater than the net cash proceeds from certain equity offerings at the redemption price of 107.50% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption, if at least 65% of the aggregate principal amount of the 7.50% Senior Notes remains outstanding after such redemption and the redemption occurs within 180 days of the closing date of such equity offering. Prior to June 15, 2025, the Company may, at its option, on any one or more occasions, redeem all or a portion of the 7.50% Senior Notes at 100.00% of the principal amount plus an applicable make-whole premium and accrued and unpaid interest. On or after June 15, 2025, the Company may redeem all or a portion of the 7.50% Senior Notes at redemption prices decreasing annually from 103.75% to 100.00% of the principal amount redeemed plus accrued and unpaid interest. Upon the occurrence of certain kinds of change of control that are accompanied by a ratings decline, each holder of the 7.50% Senior Notes may require the Company to repurchase all or a portion of such holder’s 7.50% Senior Notes for cash at a price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest. Also on June 9, 2022, the Company directed the trustee of the 6.125% Senior Notes due 2024 (the “6.125% Senior Notes”) and the 9.00% Second Lien Senior Secured Notes due 2025 (the “Second Lien Notes”) to deliver redemption notices with respect to all $460.2 million of its outstanding 6.125% Senior Notes and all $319.7 million of its outstanding Second Lien Notes. On June 24, 2022, the Company deposited with the trustee the proceeds from the offering of the 7.50% Senior Notes, along with borrowings under the Credit Facility, to redeem all of its outstanding 6.125% Senior Notes and Second Lien Notes. The Company recognized a loss on extinguishment of debt of approximately $42.4 million in its consolidated statements of operations as a result of the redemptions, which primarily related to redemption premiums and the write-off of the remaining unamortized premium associated with the 6.125% Senior Notes, partially offset by the write-offs of the remaining unamortized discount associated with the Second Lien Notes and deferred financing costs. Covenants The Company’s credit agreement governing the Credit Facility and the indentures governing the 8.25% Senior Notes, the 6.375% Senior Notes, the 8.00% Senior Notes and the 7.50% Senior Notes (collectively, the “Senior Unsecured Notes”) limit the Company and certain of its subsidiaries with respect to the amount of additional indebtedness, liens, dividends and other payments to shareholders, repurchases or redemptions of the Company’s common stock, redemptions of senior notes, investments, acquisitions, mergers, asset dispositions, transactions with affiliates, hedging transactions and other matters, along with maintenance of certain financial ratios. Under the credit agreement, the Company must maintain the following financial covenants determined as of the last day of the quarter: (1) a Leverage Ratio (as defined in the credit agreement governing the Credit Facility) of no more than 4.00 to 1.00 and (2) a Current Ratio (as defined in the credit agreement governing the Credit Facility) of not less than 1.00 to 1.00. The Company was in compliance with these covenants at June 30, 2022. The credit agreement and indentures are subject to customary events of default. If an event of default occurs and is continuing, the holders or lenders may elect to accelerate amounts due (except in the case of a bankruptcy event of default, in which case such amounts will automatically become due and payable). |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Objectives and Strategies for Using Derivative Instruments The Company is exposed to fluctuations in oil, natural gas and NGL prices received for its production. Consequently, the Company believes it is prudent to manage the variability in cash flows on a portion of its oil, natural gas and NGL production. The Company utilizes a mix of collars, swaps, and put and call options to manage fluctuations in cash flows resulting from changes in commodity prices. The Company does not use these instruments for speculative or trading purposes. Counterparty Risk and Offsetting The Company typically has numerous commodity derivative instruments outstanding with a counterparty that were executed at various dates, for various contract types, commodities and time periods. This often results in both commodity derivative asset and liability positions with that counterparty. The Company nets its commodity derivative instrument fair values executed with the same counterparty to a single asset or liability pursuant to International Swap Dealers Association Master Agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. In general, if a party to a derivative transaction incurs an event of default, as defined in the applicable agreement, the other party will have the right to demand the posting of collateral, demand a cash payment transfer or terminate the arrangement. As of June 30, 2022, the Company has outstanding commodity derivative instruments with ten counterparties to minimize its credit exposure to any individual counterparty. All of the counterparties to the Company’s commodity derivative instruments are also lenders under the Company’s credit agreement. Therefore, each of the Company’s counterparties allow the Company to satisfy any need for margin obligations associated with commodity derivative instruments where the Company is in a net liability position with the collateral securing the credit agreement, thus eliminating the need for independent collateral posting. Because each of the Company’s counterparties has an investment grade credit rating, the Company believes it does not have significant credit risk and accordingly does not currently require its counterparties to post collateral to support the net asset positions of its commodity derivative instruments. Although the Company does not currently anticipate nonperformance from its counterparties, it continually monitors the credit ratings of each counterparty. While the Company monitors counterparty creditworthiness on an ongoing basis, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its derivative instruments under lower commodity prices while continuing to be obligated under higher commodity price contracts subject to any right of offset under the agreements. Counterparty credit risk is considered when determining the fair value of a derivative instrument. See “Note 8 - Fair Value Measurements” for further discussion. Contingent Consideration Arrangements The Company met certain oil pricing thresholds for 2021 associated with certain contingent consideration arrangements described in “Note 8 - Derivative Instruments and Hedging Activities” of the Notes to Consolidated Financial Statements in its 2021 Annual Report. Cash received or paid for settlements of contingent consideration arrangements are classified as cash flows from financing activities or cash flows from investing activities, respectively, up to the divestiture or acquisition date fair value, respectively, with any excess classified as cash flows from operating activities. As a result, the Company received $20.8 million, of which $8.5 million is presented in cash flows from financing activities with the remaining $12.3 million presented in cash flows from operating activities, and paid $25.0 million, of which $19.2 million is presented in cash flows from investing activities with the remaining $5.8 million presented in cash flows from operating activities, in the first quarter of 2022. Both of these contingent consideration arrangements expired at the end of 2021. Financial Statement Presentation and Settlements The Company records its derivative instruments at fair value in the consolidated balance sheets and records changes in fair value as “(Gain) loss on derivative contracts” in the consolidated statements of operations. Settlements are also recorded as “(Gain) loss on derivative contracts” in the consolidated statements of operations. The Company presents the fair value of derivative contracts on a net basis in the consolidated balance sheets as they are subject to master netting arrangements. The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated: As of June 30, 2022 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting (In thousands) Derivative Assets Fair value of derivatives - current $28,933 ($28,933) $— Other assets, net $11,485 ($11,485) $— Derivative Liabilities Fair value of derivatives - current ($330,295) $28,933 ($301,362) Fair value of derivatives - non-current ($32,736) $11,485 ($21,251) As of December 31, 2021 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting (In thousands) Assets Commodity derivative instruments $25,469 ($23,921) $1,548 Contingent consideration arrangements 20,833 — 20,833 Fair value of derivatives - current $46,302 ($23,921) $22,381 Commodity derivative instruments $1,119 ($869) $250 Contingent consideration arrangements — — — Other assets, net $1,119 ($869) $250 Liabilities Commodity derivative instruments (1) ($184,898) $23,921 ($160,977) Contingent consideration arrangements (25,000) — (25,000) Fair value of derivatives - current ($209,898) $23,921 ($185,977) Commodity derivative instruments ($12,278) $869 ($11,409) Contingent consideration arrangements — — — Fair value of derivatives - non-current ($12,278) $869 ($11,409) (1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle. The components of “Loss on derivative contracts” are as follows for the respective periods: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) Loss on oil derivatives $75,910 $177,033 $401,258 $326,594 Loss on natural gas derivatives 5,738 12,816 33,919 15,513 Loss on NGL derivatives — 3,734 4,771 4,872 (Gain) loss on contingent consideration arrangements — (3,120) — 2,617 Loss on September 2020 Warrants liability (1) — — — 55,390 Loss on derivative contracts $81,648 $190,463 $439,948 $404,986 (1) Further details of the Company’s September 2020 Warrants and the loss on the associated September 2020 Warrants liability are described in “Note 7 - Borrowings”, “Note 8 - Derivative Instruments and Hedging Activities” and “Note 9 - Fair Value Measurements” of the Notes to Consolidated Financial Statements in its 2021 Annual Report. The components of “Cash paid for commodity derivative settlements, net” and “Cash received (paid) for settlements of contingent consideration arrangements, net” are as follows for the respective periods: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) Cash flows from operating activities Cash paid on oil derivatives ($162,334) ($82,413) ($257,687) ($122,360) Cash paid on natural gas derivatives (21,808) (1,906) (26,452) (3,275) Cash paid on NGL derivatives (2,255) (1,090) (3,783) (1,936) Cash paid for commodity derivative settlements, net ($186,397) ($85,409) ($287,922) ($127,571) Cash received for settlements of contingent consideration arrangements, net $— $— $6,492 $— Cash flows from investing activities Cash paid for settlement of contingent consideration arrangement $— $— ($19,171) $— Cash flows from financing activities Cash received for settlement of contingent consideration arrangement $— $— $8,512 $— Derivative Positions Listed in the tables below are the outstanding oil and natural gas derivative contracts as of June 30, 2022: For the Remainder For the Full Year Oil Contracts (WTI) 2022 2023 Swap Contracts Total volume (Bbls) 3,634,000 1,538,500 Weighted average price per Bbl $64.83 $81.04 Collar Contracts Total volume (Bbls) 2,392,000 2,730,000 Weighted average price per Bbl Ceiling (short call) $70.12 $87.15 Floor (long put) $60.00 $71.92 Short Call Swaption Contracts (1) Total volume (Bbls) — 1,825,000 Weighted average price per Bbl $— $72.00 Oil Contracts (Midland Basis Differential) Swap Contracts Total volume (Bbls) 1,196,000 — Weighted average price per Bbl $0.50 $— (1) The 2023 short call swaption contracts have exercise expiration dates of December 30, 2022. For the Remainder For the Full Year Natural Gas Contracts (Henry Hub) 2022 2023 Swap Contracts Total volume (MMBtu) 6,150,000 — Weighted average price per MMBtu $3.62 $— Collar Contracts Total volume (MMBtu) 5,510,000 6,640,000 Weighted average price per MMBtu Ceiling (short call) $5.96 $6.60 Floor (long put) $4.21 $4.48 Natural Gas Contracts (Waha Basis Differential) Swap Contracts Total volume (MMBtu) 1,220,000 6,080,000 Weighted average price per MMBtu ($0.75) ($0.75) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 – Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. Fair Value of Financial Instruments Cash, Cash Equivalents, and Restricted Investments. The carrying amounts for these instruments approximate fair value due to the short-term nature or maturity of the instruments. Debt. The carrying amount of borrowings outstanding under the Credit Facility approximates fair value as the borrowings bear interest at variable rates and are reflective of market rates. The following table presents the principal amounts of the Company’s Second Lien Notes and Senior Unsecured Notes with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy. See “Note 6 - Borrowings” for further discussion. June 30, 2022 December 31, 2021 Principal Amount Fair Value Principal Amount Fair Value (In thousands) 6.125% Senior Notes $— $— $460,241 $455,639 9.00% Second Lien Notes — — 319,659 343,633 8.25% Senior Notes 187,238 183,025 187,238 184,429 6.375% Senior Notes 320,783 295,409 320,783 309,556 8.00% Senior Notes 650,000 625,144 650,000 663,000 7.50% Senior Notes 600,000 554,466 — — Total $1,758,021 $1,658,044 $1,937,921 $1,956,257 Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are reported at fair value on a recurring basis in the consolidated balance sheets. The following methods and assumptions were used to estimate fair value: Commodity Derivative Instruments. The fair value of commodity derivative instruments is derived using a third-party income approach valuation model that utilizes market-corroborated inputs that are observable over the term of the commodity derivative contract. The Company’s fair value calculations also incorporate an estimate of the counterparties’ default risk for commodity derivative assets and an estimate of the Company’s default risk for commodity derivative liabilities. As the inputs in the model are substantially observable over the term of the commodity derivative contract and there is a wide availability of quoted market prices for similar commodity derivative contracts, the Company designates its commodity derivative instruments as Level 2 within the fair value hierarchy. See “Note 7 - Derivative Instruments and Hedging Activities” for further discussion. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: June 30, 2022 Level 1 Level 2 Level 3 (In thousands) Commodity derivative liabilities $— ($322,613) $— December 31, 2021 Level 1 Level 2 Level 3 (In thousands) Assets Commodity derivative instruments $— $1,798 $— Contingent consideration arrangements — 20,833 — Liabilities Commodity derivative instruments (1) — (172,386) — Contingent consideration arrangements — (25,000) — Total net assets (liabilities) $— ($174,755) $— (1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle. There were no transfers between any of the fair value levels during any period presented. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Acquisitions. The fair value of assets acquired and liabilities assumed are measured as of the acquisition date by a third-party valuation specialist using a combination of income and market approaches, which are not observable in the market and are therefore designated as Level 3 inputs. Significant inputs include expected discounted future cash flows from estimated reserve quantities, estimates for timing and costs to produce and develop reserves, oil and natural gas forward prices, and a risk-adjusted discount rate. See “Note 3 - Acquisitions and Divestitures” for additional discussion. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company provides for income taxes at the statutory rate of 21%. Reported income tax benefit (expense) differs from the amount of income tax benefit (expense) that would result from applying domestic federal statutory tax rates to pretax income (loss). These differences primarily relate to non-deductible executive compensation expenses, restricted stock unit windfalls, changes in valuation allowances, and state income taxes. For the three months ended June 30, 2022 and 2021, the Company’s effective income tax rates were 1% and 4%, respectively. For both the six months ended June 30, 2022 and 2021, the Company’s effective income tax rate was 1%. The primary differences between the effective tax rates for the three and six months ended June 30, 2022 and 2021 and the statutory rate resulted from the valuation allowance recorded against the Company’s net deferred tax assets beginning in the second quarter of 2020 and the effect of state income taxes. Deferred Tax Asset Valuation Allowance Management monitors company-specific, oil and natural gas industry and worldwide economic factors and assesses the likelihood that the Company’s net deferred tax assets will be utilized prior to their expiration. A significant item of objective negative evidence considered was the cumulative historical three-year pre-tax loss and a net deferred tax asset position at June 30, 2022, driven primarily by the impairments of evaluated oil and gas properties recognized beginning in the second quarter of 2020 and continuing through the fourth quarter of 2020. This limits the ability to consider other subjective evidence such as the Company’s potential for future growth. Since the second quarter of 2020, based on the evaluation of the evidence available, the Company concluded that it is more likely than |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation RSU Equity Awards The following table summarizes activity for restricted stock units that may be settled in common stock (“RSU Equity Awards”) for the six months ended June 30, 2022: Six Months Ended June 30, 2022 RSU Equity Awards Weighted Average Grant Date Unvested, beginning of the period 968 $34.04 Granted 355 $60.02 Vested (354) $35.28 Forfeited (42) $14.59 Unvested, end of the period 927 $22.66 Grant activity for the six months ended June 30, 2022 primarily consisted of RSU Equity Awards granted to executives and employees as part of the annual grant of long-term equity incentive awards with a weighted-average grant date fair value of $60.02 . The aggregate fair value of RSU Equity Awards that vested during the six months ended June 30, 2022 was $21.5 million. As of June 30, 2022, unrecognized compensation costs related to unvested RSU Equity Awards were $33.2 million and will be recognized over a weighted average period of 2.2 years. Cash-Settled Awards No restricted stock units that may be settled in cash (“Cash-Settled RSU Awards”) or cash-settled stock appreciation rights (“Cash SARs”) were granted to employees during the three or six months ended June 30, 2022 or 2021. The following table summarizes the Company’s liabilities for cash-settled awards and the classification in the consolidated balance sheets for the periods indicated: June 30, 2022 December 31, 2021 (In thousands) Cash SARs $6,306 $7,884 Cash-Settled RSU Awards 1,287 1,382 Other current liabilities 7,593 9,266 Cash-Settled RSU Awards 1,406 6,366 Other long-term liabilities 1,406 6,366 Total Cash-Settled RSU Awards $8,999 $15,632 Share-Based Compensation Expense (Benefit), Net Share-based compensation expense associated with the RSU Equity Awards, Cash-Settled RSU Awards, and Cash SARs, net of amounts capitalized, is included in “General and administrative” in the consolidated statements of operations. The following table presents share-based compensation expense (benefit), net for the periods indicated: Three Months Ended Six Months Ended 2022 2021 2022 2021 (In thousands) RSU Equity Awards $4,323 $3,242 $7,689 $5,850 Cash-Settled RSU Awards (3,662) 3,007 (3,425) 7,449 Cash SARs (4,018) 3,676 (1,578) 8,542 (3,357) 9,925 2,686 21,841 Less: amounts capitalized to oil and gas properties 147 (4,646) (1,730) (8,954) Total share-based compensation expense (benefit), net ($3,210) $5,279 $956 $12,887 |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Increase in Authorized Common Shares The Company filed an amendment to its certificate of incorporation, which became effective on May 25, 2022, to increase the number of authorized shares of common stock from 78,750,000 to 130,000,000, as approved by the Company’s shareholders at the 2022 Annual Meeting of Shareholders on May 25, 2022. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net June 30, 2022 December 31, 2021 (In thousands) Oil and natural gas receivables $274,476 $171,837 Joint interest receivables 15,434 13,751 Other receivables 73,273 49,053 Total 363,183 234,641 Allowance for credit losses (2,228) (2,205) Total accounts receivable, net $360,955 $232,436 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities June 30, 2022 December 31, 2021 (In thousands) Accounts payable $221,044 $151,836 Revenues and royalties payable 284,470 294,143 Accrued capital expenditures 60,492 64,412 Accrued interest 40,087 59,600 Total accounts payable and accrued liabilities $606,093 $569,991 |
Supplemental Cash Flow
Supplemental Cash Flow | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow | Supplemental Cash Flow Six Months Ended June 30, 2022 2021 (In thousands) Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $15,149 $14,576 Investing cash flows from operating leases 19,318 8,402 Non-cash investing and financing activities: Change in accrued capital expenditures $56,213 $47,247 Change in asset retirement costs 2,237 2,567 ROU assets obtained in exchange for lease liabilities: Operating leases $26,971 $9,710 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation The accompanying unaudited interim consolidated financial statements include the accounts of the Company after elimination of intercompany transactions and balances. These financial statements have been prepared pursuant to the rules and regulations of the SEC and therefore do not include all disclosures required for financial statements prepared in conformity with GAAP. In the opinion of management, these financial statements reflect all normal, recurring adjustments and accruals considered necessary to present fairly, in all material respects, the Company’s interim financial position, results of operations and cash flows. However, the results of operations for the periods presented are not necessarily indicative of the results of operations that may be expected for the full year. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications did not have a material impact on prior period financial statements. Significant Accounting Policies The Company’s significant accounting policies are described in “Note 2 - Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its 2021 Annual Report and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this report should be read in conjunction with the Company’s 2021 Annual Report. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”). ASU 2020-06 was issued to reduce the complexity associated with accounting for certain financial instruments with characteristics of liabilities and equity. The guidance is to be applied using either a modified retrospective or a fully retrospective method. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company adopted ASU 2020-06 on January 1, 2022. The adoption of ASU 2020-06 did not have a material impact to the Company’s consolidated financial statements or disclosures. Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) followed by ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), issued in January 2021 to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. In April 2022, the FASB proposed to extend the effective date through December 31, 2024; however, a final ruling has not been issued. As of June 30, 2022, the Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01. Please refer to “Note 6 – Borrowings” for discussion of the use of the adjusted LIBO rate in connection with borrowings under the Company’s Credit Facility (as defined below). |
Subsequent Events | Subsequent Events The Company evaluates subsequent events through the date the financial statements are issued. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company recognizes oil, natural gas, and NGL production revenue at the point in time when control of the product transfers to the purchaser, which differs depending on the applicable contractual terms. Transfer of control also drives the presentation of gathering, transportation and processing in the consolidated statements of operations. See “Note 3 - Revenue Recognition” of the Notes to Consolidated Financial Statements in the 2021 Annual Report for more information regarding the types of contracts under which oil, natural gas, and NGL production revenue is generated. Accounts Receivable from Revenues from Contracts with Customers |
Acquisitions_and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the Company’s preliminary allocation of the total estimated consideration of $912.7 million to the assets acquired and liabilities assumed as of the acquisition date. Preliminary Purchase (In thousands) Assets: Other current assets $10,250 Evaluated oil and natural gas properties 685,478 Unevaluated properties 278,222 Total assets acquired $973,950 Liabilities: Suspense payable $16,447 Other current liabilities 33,482 Asset retirement obligation 1,898 Other long-term liabilities 9,425 Total liabilities assumed $61,252 Total consideration $912,698 |
Unaudited Summary Pro Forma Financial Information | The pro forma consolidated statements of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Primexx Acquisition taken place on January 1, 2020 and is not intended to be a projection of future results. For the Year Ended December 31, 2021 (In thousands) Revenues $2,294,893 Income from operations 1,151,493 Net income 482,690 Basic earnings per common share $8.37 Diluted earnings per common share $8.13 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of June 30, 2022 and December 31, 2021, total property and equipment, net consisted of the following: June 30, 2022 December 31, 2021 Oil and natural gas properties, full cost accounting method (In thousands) Evaluated properties $9,667,447 $9,238,823 Accumulated depreciation, depletion, amortization and impairments (6,094,165) (5,886,002) Evaluated properties, net 3,573,282 3,352,821 Unevaluated properties Unevaluated leasehold and seismic costs 1,570,069 1,557,453 Capitalized interest 306,462 255,374 Total unevaluated properties 1,876,531 1,812,827 Total oil and natural gas properties, net $5,449,813 $5,165,648 Other property and equipment $57,201 $58,367 Accumulated depreciation (30,869) (30,239) Other property and equipment, net $26,332 $28,128 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share amounts) Net Income (Loss) $348,009 ($11,695) $387,746 ($92,102) Basic weighted average common shares outstanding 61,679 46,267 61,583 44,439 Dilutive impact of restricted stock units 230 — 373 — Diluted weighted average common shares outstanding 61,909 46,267 61,956 44,439 Net Income (Loss) Per Common Share Basic $5.64 ($0.25) $6.30 ($2.07) Diluted $5.62 ($0.25) $6.26 ($2.07) Restricted stock units (1) 26 140 12 882 Warrants (1) 345 1,066 336 3,433 (1) Shares excluded from the diluted earnings per share calculation because their effect would be anti-dilutive. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The Company’s borrowings consisted of the following: June 30, 2022 December 31, 2021 (In thousands) 6.125% Senior Notes due 2024 $— $460,241 Senior Secured Revolving Credit Facility due 2024 779,000 785,000 9.00% Second Lien Senior Secured Notes due 2025 — 319,659 8.25% Senior Notes due 2025 187,238 187,238 6.375% Senior Notes due 2026 320,783 320,783 8.00% Senior Notes due 2028 650,000 650,000 7.50% Senior Notes due 2030 600,000 — Total principal outstanding 2,537,021 2,722,921 Unamortized premium on 6.125% Senior Notes — 2,373 Unamortized discount on 9.00% Second Lien Notes — (14,852) Unamortized premium on 8.25% Senior Notes 2,096 2,477 Unamortized deferred financing costs for Second Lien Notes — (2,910) Unamortized deferred financing costs for Senior Unsecured Notes (22,780) (15,894) Total carrying value of borrowings (1) $2,516,337 $2,694,115 (1) Excludes unamortized deferred financing costs related to the Company’s senior secured revolving credit facility of $15.0 million and $18.1 million as of June 30, 2022 and December 31, 2021, respectively, which are classified in “Deferred financing costs” in the consolidated balance sheets. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Offsetting Assets | The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated: As of June 30, 2022 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting (In thousands) Derivative Assets Fair value of derivatives - current $28,933 ($28,933) $— Other assets, net $11,485 ($11,485) $— Derivative Liabilities Fair value of derivatives - current ($330,295) $28,933 ($301,362) Fair value of derivatives - non-current ($32,736) $11,485 ($21,251) As of December 31, 2021 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting (In thousands) Assets Commodity derivative instruments $25,469 ($23,921) $1,548 Contingent consideration arrangements 20,833 — 20,833 Fair value of derivatives - current $46,302 ($23,921) $22,381 Commodity derivative instruments $1,119 ($869) $250 Contingent consideration arrangements — — — Other assets, net $1,119 ($869) $250 Liabilities Commodity derivative instruments (1) ($184,898) $23,921 ($160,977) Contingent consideration arrangements (25,000) — (25,000) Fair value of derivatives - current ($209,898) $23,921 ($185,977) Commodity derivative instruments ($12,278) $869 ($11,409) Contingent consideration arrangements — — — Fair value of derivatives - non-current ($12,278) $869 ($11,409) (1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle. |
Schedule of Offsetting Liabilities | The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated: As of June 30, 2022 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting (In thousands) Derivative Assets Fair value of derivatives - current $28,933 ($28,933) $— Other assets, net $11,485 ($11,485) $— Derivative Liabilities Fair value of derivatives - current ($330,295) $28,933 ($301,362) Fair value of derivatives - non-current ($32,736) $11,485 ($21,251) As of December 31, 2021 Presented without As Presented with Effects of Netting Effects of Netting Effects of Netting (In thousands) Assets Commodity derivative instruments $25,469 ($23,921) $1,548 Contingent consideration arrangements 20,833 — 20,833 Fair value of derivatives - current $46,302 ($23,921) $22,381 Commodity derivative instruments $1,119 ($869) $250 Contingent consideration arrangements — — — Other assets, net $1,119 ($869) $250 Liabilities Commodity derivative instruments (1) ($184,898) $23,921 ($160,977) Contingent consideration arrangements (25,000) — (25,000) Fair value of derivatives - current ($209,898) $23,921 ($185,977) Commodity derivative instruments ($12,278) $869 ($11,409) Contingent consideration arrangements — — — Fair value of derivatives - non-current ($12,278) $869 ($11,409) (1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle. |
Schedule of Gain or Loss on Derivative Contracts | The components of “Loss on derivative contracts” are as follows for the respective periods: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) Loss on oil derivatives $75,910 $177,033 $401,258 $326,594 Loss on natural gas derivatives 5,738 12,816 33,919 15,513 Loss on NGL derivatives — 3,734 4,771 4,872 (Gain) loss on contingent consideration arrangements — (3,120) — 2,617 Loss on September 2020 Warrants liability (1) — — — 55,390 Loss on derivative contracts $81,648 $190,463 $439,948 $404,986 (1) Further details of the Company’s September 2020 Warrants and the loss on the associated September 2020 Warrants liability are described in “Note 7 - Borrowings”, “Note 8 - Derivative Instruments and Hedging Activities” and “Note 9 - Fair Value Measurements” of the Notes to Consolidated Financial Statements in its 2021 Annual Report. |
Schedule of Derivative Instruments | The components of “Cash paid for commodity derivative settlements, net” and “Cash received (paid) for settlements of contingent consideration arrangements, net” are as follows for the respective periods: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) Cash flows from operating activities Cash paid on oil derivatives ($162,334) ($82,413) ($257,687) ($122,360) Cash paid on natural gas derivatives (21,808) (1,906) (26,452) (3,275) Cash paid on NGL derivatives (2,255) (1,090) (3,783) (1,936) Cash paid for commodity derivative settlements, net ($186,397) ($85,409) ($287,922) ($127,571) Cash received for settlements of contingent consideration arrangements, net $— $— $6,492 $— Cash flows from investing activities Cash paid for settlement of contingent consideration arrangement $— $— ($19,171) $— Cash flows from financing activities Cash received for settlement of contingent consideration arrangement $— $— $8,512 $— |
Schedule of Outstanding Oil and Natural Gas Derivative Contracts | Listed in the tables below are the outstanding oil and natural gas derivative contracts as of June 30, 2022: For the Remainder For the Full Year Oil Contracts (WTI) 2022 2023 Swap Contracts Total volume (Bbls) 3,634,000 1,538,500 Weighted average price per Bbl $64.83 $81.04 Collar Contracts Total volume (Bbls) 2,392,000 2,730,000 Weighted average price per Bbl Ceiling (short call) $70.12 $87.15 Floor (long put) $60.00 $71.92 Short Call Swaption Contracts (1) Total volume (Bbls) — 1,825,000 Weighted average price per Bbl $— $72.00 Oil Contracts (Midland Basis Differential) Swap Contracts Total volume (Bbls) 1,196,000 — Weighted average price per Bbl $0.50 $— (1) The 2023 short call swaption contracts have exercise expiration dates of December 30, 2022. For the Remainder For the Full Year Natural Gas Contracts (Henry Hub) 2022 2023 Swap Contracts Total volume (MMBtu) 6,150,000 — Weighted average price per MMBtu $3.62 $— Collar Contracts Total volume (MMBtu) 5,510,000 6,640,000 Weighted average price per MMBtu Ceiling (short call) $5.96 $6.60 Floor (long put) $4.21 $4.48 Natural Gas Contracts (Waha Basis Differential) Swap Contracts Total volume (MMBtu) 1,220,000 6,080,000 Weighted average price per MMBtu ($0.75) ($0.75) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Instruments at Carrying and Fair Value | The carrying amount of borrowings outstanding under the Credit Facility approximates fair value as the borrowings bear interest at variable rates and are reflective of market rates. The following table presents the principal amounts of the Company’s Second Lien Notes and Senior Unsecured Notes with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy. See “Note 6 - Borrowings” for further discussion. June 30, 2022 December 31, 2021 Principal Amount Fair Value Principal Amount Fair Value (In thousands) 6.125% Senior Notes $— $— $460,241 $455,639 9.00% Second Lien Notes — — 319,659 343,633 8.25% Senior Notes 187,238 183,025 187,238 184,429 6.375% Senior Notes 320,783 295,409 320,783 309,556 8.00% Senior Notes 650,000 625,144 650,000 663,000 7.50% Senior Notes 600,000 554,466 — — Total $1,758,021 $1,658,044 $1,937,921 $1,956,257 |
Fair Value of Assets Measured on Recurring Basis | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: June 30, 2022 Level 1 Level 2 Level 3 (In thousands) Commodity derivative liabilities $— ($322,613) $— December 31, 2021 Level 1 Level 2 Level 3 (In thousands) Assets Commodity derivative instruments $— $1,798 $— Contingent consideration arrangements — 20,833 — Liabilities Commodity derivative instruments (1) — (172,386) — Contingent consideration arrangements — (25,000) — Total net assets (liabilities) $— ($174,755) $— (1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle. |
Fair Value of Liabilities Measured on Recurring Basis | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021: June 30, 2022 Level 1 Level 2 Level 3 (In thousands) Commodity derivative liabilities $— ($322,613) $— December 31, 2021 Level 1 Level 2 Level 3 (In thousands) Assets Commodity derivative instruments $— $1,798 $— Contingent consideration arrangements — 20,833 — Liabilities Commodity derivative instruments (1) — (172,386) — Contingent consideration arrangements — (25,000) — Total net assets (liabilities) $— ($174,755) $— (1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | The following table summarizes activity for restricted stock units that may be settled in common stock (“RSU Equity Awards”) for the six months ended June 30, 2022: Six Months Ended June 30, 2022 RSU Equity Awards Weighted Average Grant Date Unvested, beginning of the period 968 $34.04 Granted 355 $60.02 Vested (354) $35.28 Forfeited (42) $14.59 Unvested, end of the period 927 $22.66 |
Schedule of Cash-Settled Awards | The following table summarizes the Company’s liabilities for cash-settled awards and the classification in the consolidated balance sheets for the periods indicated: June 30, 2022 December 31, 2021 (In thousands) Cash SARs $6,306 $7,884 Cash-Settled RSU Awards 1,287 1,382 Other current liabilities 7,593 9,266 Cash-Settled RSU Awards 1,406 6,366 Other long-term liabilities 1,406 6,366 Total Cash-Settled RSU Awards $8,999 $15,632 |
Schedule of Share-based Compensation Expense | The following table presents share-based compensation expense (benefit), net for the periods indicated: Three Months Ended Six Months Ended 2022 2021 2022 2021 (In thousands) RSU Equity Awards $4,323 $3,242 $7,689 $5,850 Cash-Settled RSU Awards (3,662) 3,007 (3,425) 7,449 Cash SARs (4,018) 3,676 (1,578) 8,542 (3,357) 9,925 2,686 21,841 Less: amounts capitalized to oil and gas properties 147 (4,646) (1,730) (8,954) Total share-based compensation expense (benefit), net ($3,210) $5,279 $956 $12,887 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | June 30, 2022 December 31, 2021 (In thousands) Oil and natural gas receivables $274,476 $171,837 Joint interest receivables 15,434 13,751 Other receivables 73,273 49,053 Total 363,183 234,641 Allowance for credit losses (2,228) (2,205) Total accounts receivable, net $360,955 $232,436 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | June 30, 2022 December 31, 2021 (In thousands) Accounts payable $221,044 $151,836 Revenues and royalties payable 284,470 294,143 Accrued capital expenditures 60,492 64,412 Accrued interest 40,087 59,600 Total accounts payable and accrued liabilities $606,093 $569,991 |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Six Months Ended June 30, 2022 2021 (In thousands) Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $15,149 $14,576 Investing cash flows from operating leases 19,318 8,402 Non-cash investing and financing activities: Change in accrued capital expenditures $56,213 $47,247 Change in asset retirement costs 2,237 2,567 ROU assets obtained in exchange for lease liabilities: Operating leases $26,971 $9,710 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable | $ 363,183 | $ 234,641 |
Performance obligation, description of timing | The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. | |
Oil and Natural Gas | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable | $ 274,476 | $ 171,837 |
Acquisitions_and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Oct. 01, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||||
Revenues | $ 913,620 | $ 440,399 | $ 1,690,838 | $ 800,280 | |||
Total operating expenses | 416,795 | $ 231,891 | 774,716 | 437,467 | |||
Proceeds from sales of assets | 4,590 | $ 31,611 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Certain Non Core Assets in Delaware Basin, Midland Basin, and Eagle Ford Shale | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sales of assets | $ 179,900 | ||||||
Primexx Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, gross | $ 444,800 | ||||||
Shares of common stock issued in acquisition (in shares) | 8,840 | ||||||
Other payments to acquire businesses | 25,200 | ||||||
Total consideration | $ 880,800 | 912,698 | |||||
Number of shares, held in escrow (in shares) | 2.6 | ||||||
Shares held In escrow percentage to be release | 50% | ||||||
Timing after closing date of release of the first 50% of shares | 6 months | ||||||
Timing after closing date of release of the remaining shares | 12 months | ||||||
Proceeds from settlement of contingent consideration arrangements | $ 31,800 | $ 10,700 | |||||
Revenues | 170,400 | 308,500 | |||||
Total operating expenses | $ 36,900 | $ 65,700 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Recognized Identified Assets Acquired and Liabilities (Details) - Primexx Acquisition - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 01, 2021 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||
Other current assets | $ 10,250 | |
Total assets acquired | 973,950 | |
Suspense payable | 16,447 | |
Other current liabilities | 33,482 | |
Asset retirement obligation | 1,898 | |
Other long-term liabilities | 9,425 | |
Total liabilities assumed | 61,252 | |
Total consideration | $ 880,800 | 912,698 |
Evaluated oil and natural gas properties | ||
Business Acquisition [Line Items] | ||
Oil and natural gas properties | 685,478 | |
Unevaluated properties | ||
Business Acquisition [Line Items] | ||
Oil and natural gas properties | $ 278,222 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Unaudited Pro Forma Financial Information (Details) - Primexx Acquisition $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ 2,294,893 |
Income from operations | 1,151,493 |
Net income | $ 482,690 |
Basic earnings per common share (in dollars per share) | $ / shares | $ 8.37 |
Diluted earnings per common share (in dollars per share) | $ / shares | $ 8.13 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Oil and natural gas properties, full cost accounting method | ||
Evaluated properties | $ 9,667,447 | $ 9,238,823 |
Accumulated depreciation, depletion, amortization and impairments | (6,094,165) | (5,886,002) |
Evaluated properties, net | 3,573,282 | 3,352,821 |
Unevaluated properties | ||
Unevaluated leasehold and seismic costs | 1,570,069 | 1,557,453 |
Capitalized interest | 306,462 | 255,374 |
Total unevaluated properties | 1,876,531 | 1,812,827 |
Total oil and natural gas properties, net | 5,449,813 | 5,165,648 |
Other property and equipment | 57,201 | 58,367 |
Accumulated depreciation | (30,869) | (30,239) |
Other property and equipment, net | $ 26,332 | $ 28,128 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Internal costs capitalized | $ 11.3 | $ 12.1 | $ 22.9 | $ 23.3 |
Interest costs capitalized | $ 26.3 | $ 23.9 | $ 51.8 | $ 47.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share, Basic and Diluted [Line Items] | ||||||
Net Income (Loss) | $ 348,009 | $ 39,737 | $ (11,695) | $ (80,407) | $ 387,746 | $ (92,102) |
Basic weighted average common shares outstanding (in shares) | 61,679 | 46,267 | 61,583 | 44,439 | ||
Diluted weighted average common shares outstanding (in shares) | 61,909 | 46,267 | 61,956 | 44,439 | ||
Net Income (Loss) Per Common Share | ||||||
Basic (in dollars per share) | $ 5.64 | $ (0.25) | $ 6.30 | $ (2.07) | ||
Diluted (in dollars per share) | $ 5.62 | $ (0.25) | $ 6.26 | $ (2.07) | ||
Restricted Stock | ||||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||||
Dilutive impact of restricted stock and warrants (in shares) | 230 | 0 | 373 | 0 | ||
Net Income (Loss) Per Common Share | ||||||
Shares excluded from the diluted earnings per share (in shares) | 26 | 140 | 12 | 882 | ||
Warrants | ||||||
Net Income (Loss) Per Common Share | ||||||
Shares excluded from the diluted earnings per share (in shares) | 345 | 1,066 | 336 | 3,433 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Principal components: | ||
Total principal outstanding | $ 2,537,021 | $ 2,722,921 |
Unamortized deferred financing costs for Senior Unsecured Notes | (22,780) | (15,894) |
Long-term debt | 2,516,337 | 2,694,115 |
Deferred financing costs | 14,961 | 18,125 |
6.125% Senior Notes due 2024 | ||
Principal components: | ||
Total principal outstanding | 0 | 460,241 |
Premium on senior unsecured notes, net of accumulated amortization | $ 0 | 2,373 |
Debt instrument, interest rate, stated (as a percent) | 6.125% | |
6.125% Senior Notes due 2024 | Unsecured debt | ||
Principal components: | ||
Debt instrument, interest rate, stated (as a percent) | 6.125% | |
Senior Secured Revolving Credit Facility due 2024 | ||
Principal components: | ||
Total principal outstanding | $ 779,000 | 785,000 |
9.00% Second Lien Senior Secured Notes due 2025 | ||
Principal components: | ||
Total principal outstanding | 0 | 319,659 |
Premium on senior unsecured notes, net of accumulated amortization | $ 0 | (14,852) |
Debt instrument, interest rate, stated (as a percent) | 9% | |
9.00% Second Lien Senior Secured Notes due 2025 | Secured debt | ||
Principal components: | ||
Unamortized deferred financing costs for Senior Unsecured Notes | $ 0 | (2,910) |
8.25% Senior Notes due 2025 | ||
Principal components: | ||
Total principal outstanding | 187,238 | 187,238 |
Premium on senior unsecured notes, net of accumulated amortization | $ 2,096 | 2,477 |
Debt instrument, interest rate, stated (as a percent) | 8.25% | |
8.25% Senior Notes due 2025 | Unsecured debt | ||
Principal components: | ||
Debt instrument, interest rate, stated (as a percent) | 8.25% | |
6.375% Senior Notes due 2026 | ||
Principal components: | ||
Total principal outstanding | $ 320,783 | 320,783 |
Debt instrument, interest rate, stated (as a percent) | 6.375% | |
6.375% Senior Notes due 2026 | Unsecured debt | ||
Principal components: | ||
Debt instrument, interest rate, stated (as a percent) | 6.375% | |
8.00% Senior Notes due 2028 | ||
Principal components: | ||
Total principal outstanding | $ 650,000 | 650,000 |
8.00% Senior Notes due 2028 | Unsecured debt | ||
Principal components: | ||
Debt instrument, interest rate, stated (as a percent) | 8% | |
7.50% Senior Notes due 2030 | ||
Principal components: | ||
Total principal outstanding | $ 600,000 | $ 0 |
Debt instrument, interest rate, stated (as a percent) | 7.50% | |
7.50% Senior Notes due 2030 | Unsecured debt | ||
Principal components: | ||
Debt instrument, interest rate, stated (as a percent) | 7.50% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 09, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 02, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||||
Credit facility borrowing base | $ 1,600,000 | ||||||
Outstanding borrowings | $ 2,537,021 | $ 2,537,021 | $ 2,722,921 | ||||
Loss on extinguishment of debt | (42,417) | $ 0 | (42,417) | $ 0 | |||
New Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 5,000,000 | 5,000,000 | |||||
Credit facility borrowing base | $ 1,600,000 | $ 1,600,000 | |||||
Interest rate at period end (as a percent) | 4.16% | 4.16% | |||||
Letters of credit outstanding | $ 16,400 | $ 16,400 | |||||
New Credit Facility | Federal Funds Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread (as a percent) | 0.50% | ||||||
New Credit Facility | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread (as a percent) | 1% | ||||||
New Credit Facility | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused capacity, commitment fee (as a percent) | 0.375% | ||||||
New Credit Facility | Minimum | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread (as a percent) | 1% | ||||||
New Credit Facility | Minimum | Eurodollar | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread (as a percent) | 2% | ||||||
New Credit Facility | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused capacity, commitment fee (as a percent) | 0.50% | ||||||
New Credit Facility | Maximum | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread (as a percent) | 2% | ||||||
New Credit Facility | Maximum | Eurodollar | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, basis spread (as a percent) | 3% | ||||||
Senior Secured Revolving Credit Facility due 2024 | |||||||
Line of Credit Facility [Line Items] | |||||||
Outstanding borrowings | $ 779,000 | $ 779,000 | 785,000 | ||||
7.50% senior notes due 2030 | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, interest rate, stated (as a percent) | 7.50% | 7.50% | |||||
7.50% senior notes due 2030 | Unsecured debt | |||||||
Line of Credit Facility [Line Items] | |||||||
Net proceeds from issuance of senior unsecured notes | $ 588,000 | ||||||
Percentage of principal amount redeemed | 35% | ||||||
Debt covenant, percentage of aggregate principal outstanding | 65% | ||||||
7.50% senior notes due 2030 | Unsecured debt | Debt Instrument, Redemption, Period One | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument redemption price percent (as a percent) | 107.50% | ||||||
7.50% senior notes due 2030 | Unsecured debt | Debt Instrument, Redemption, Period Two | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument redemption price percent (as a percent) | 100% | ||||||
7.50% senior notes due 2030 | Unsecured debt | On or After October 1, 2023, but Before October 1, 2024 | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument redemption price percent (as a percent) | 101% | ||||||
7.50% senior notes due 2030 | Minimum | Unsecured debt | Debt Instrument, Redemption, Period Three | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument redemption price percent (as a percent) | 100% | ||||||
7.50% senior notes due 2030 | Maximum | Unsecured debt | Debt Instrument, Redemption, Period Three | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument redemption price percent (as a percent) | 103.75% | ||||||
6.125% Senior note due 2024 | |||||||
Line of Credit Facility [Line Items] | |||||||
Outstanding principal amount of issuance | $ 460,200 | ||||||
9.00% Second Lien Senior Secured Notes due 2025 | |||||||
Line of Credit Facility [Line Items] | |||||||
Outstanding borrowings | $ 0 | $ 0 | $ 319,659 | ||||
Debt instrument, interest rate, stated (as a percent) | 9% | 9% | |||||
Outstanding principal amount of issuance | $ 319,700 |
Borrowings - Covenants (Details
Borrowings - Covenants (Details) | Jun. 30, 2022 |
6.125% Senior Notes due 2024 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 6.125% |
6.125% Senior Notes due 2024 | Unsecured debt | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 6.125% |
8.25% Senior Notes due 2025 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 8.25% |
8.25% Senior Notes due 2025 | Unsecured debt | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 8.25% |
6.375% Senior Notes due 2026 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 6.375% |
6.375% Senior Notes due 2026 | Unsecured debt | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 6.375% |
8.00% Senior Notes due 2028 | Unsecured debt | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 8% |
7.50% Senior Notes due 2030 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 7.50% |
7.50% Senior Notes due 2030 | Unsecured debt | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated (as a percent) | 7.50% |
Minimum | New Credit Facility | |
Debt Instrument [Line Items] | |
Leverage ratio | 100% |
Maximum | New Credit Facility | |
Debt Instrument [Line Items] | |
Leverage ratio | 400% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) counterparty | Jun. 30, 2021 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Number of counterparties | counterparty | 10 | ||
Cash paid for settlement of contingent consideration arrangement | $ 19,171 | $ 0 | |
Divestiture, Ranger | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Credit risk derivative, contingent receipt received | $ 20,800 | ||
Payment to be presented in cash flows, financing activity | 8,500 | ||
Payment to be presented in cash flows, operating activities | 12,300 | ||
Primexx Acquisition | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Payment for contingent consideration | 25,000 | ||
Cash paid for settlement of contingent consideration arrangement | 19,200 | ||
Payment for contingent consideration liability | $ 5,800 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair value of derivatives - current | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | $ 28,933 | $ 46,302 |
Effects of Netting | (28,933) | (23,921) |
As Presented with Effects of Netting | 0 | 22,381 |
Fair value of derivatives - current | Contingent consideration arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 20,833 | |
Effects of Netting | 0 | |
As Presented with Effects of Netting | 20,833 | |
Fair value of derivatives - current | Commodity derivative instruments | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 25,469 | |
Effects of Netting | (23,921) | |
As Presented with Effects of Netting | 1,548 | |
Other assets, net | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 11,485 | 1,119 |
Effects of Netting | (11,485) | (869) |
As Presented with Effects of Netting | 0 | 250 |
Other assets, net | Contingent consideration arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 0 | |
Effects of Netting | 0 | |
As Presented with Effects of Netting | 0 | |
Other assets, net | Commodity derivative instruments | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 1,119 | |
Effects of Netting | (869) | |
As Presented with Effects of Netting | 250 | |
Fair value of derivatives liabilities, current | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (330,295) | (209,898) |
Effects of Netting | 28,933 | 23,921 |
As Presented with Effects of Netting | (301,362) | (185,977) |
Fair value of derivatives liabilities, current | Contingent consideration arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (25,000) | |
Effects of Netting | 0 | |
As Presented with Effects of Netting | (25,000) | |
Fair value of derivatives liabilities, current | Commodity derivative instruments | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (184,898) | |
Effects of Netting | 23,921 | |
As Presented with Effects of Netting | (160,977) | |
Financial guarantee contracts, deferred premium | 2,900 | |
Fair value of derivatives liabilities, noncurrent | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (32,736) | (12,278) |
Effects of Netting | 11,485 | 869 |
As Presented with Effects of Netting | $ (21,251) | (11,409) |
Fair value of derivatives liabilities, noncurrent | Contingent consideration arrangements | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | 0 | |
Effects of Netting | 0 | |
As Presented with Effects of Netting | 0 | |
Fair value of derivatives liabilities, noncurrent | Commodity derivative instruments | ||
Offsetting Assets and Liabilities [Line Items] | ||
Presented without Effects of Netting | (12,278) | |
Effects of Netting | 869 | |
As Presented with Effects of Netting | $ (11,409) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Gain or Loss on Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on derivative contracts | $ (81,648) | $ (190,463) | $ (439,948) | $ (404,986) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on derivative contracts | 81,648 | 190,463 | 439,948 | 404,986 |
Not Designated as Hedging Instrument | Loss on contingent consideration arrangements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on derivative contracts | 0 | (3,120) | 0 | 2,617 |
Not Designated as Hedging Instrument | Loss on September 2020 Warrants liability | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on derivative contracts | 0 | 0 | 0 | 55,390 |
Not Designated as Hedging Instrument | Commodity - Oil | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on derivative contracts | 75,910 | 177,033 | 401,258 | 326,594 |
Not Designated as Hedging Instrument | Natural gas | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on derivative contracts | 5,738 | 12,816 | 33,919 | 15,513 |
Not Designated as Hedging Instrument | Natural gas liquids | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on derivative contracts | $ 0 | $ 3,734 | $ 4,771 | $ 4,872 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Cash Paid (Received) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||||
Cash paid for commodity derivative settlements, net | $ (186,397) | $ (85,409) | $ (287,922) | $ (127,571) |
Not Designated as Hedging Instrument | Loss on contingent consideration arrangements | ||||
Cash flows from operating activities | ||||
Cash received for settlements of contingent consideration arrangements, net | 0 | 0 | 6,492 | 0 |
Cash flows from investing activities | ||||
Cash paid for settlement of contingent consideration arrangement | 0 | 0 | (19,171) | 0 |
Cash flows from financing activities | ||||
Cash received for settlement of contingent consideration arrangement | 0 | 0 | 8,512 | 0 |
Commodity - Oil | Not Designated as Hedging Instrument | ||||
Cash flows from operating activities | ||||
Cash paid for commodity derivative settlements, net | (162,334) | (82,413) | (257,687) | (122,360) |
Natural gas | Not Designated as Hedging Instrument | ||||
Cash flows from operating activities | ||||
Cash paid for commodity derivative settlements, net | (21,808) | (1,906) | (26,452) | (3,275) |
Natural gas liquids | Not Designated as Hedging Instrument | ||||
Cash flows from operating activities | ||||
Cash paid for commodity derivative settlements, net | $ (2,255) | $ (1,090) | $ (3,783) | $ (1,936) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule of Outstanding Oil and Natural Gas Derivative Contracts (Details) - Forecast - Not Designated as Hedging Instrument | 12 Months Ended | |
Dec. 31, 2023 MMBTU $ / barrel $ / MMBTU bbl | Dec. 31, 2022 MMBTU $ / barrel $ / MMBTU bbl | |
Commodity - Oil | ||
Derivative [Line Items] | ||
Total volume (MMBtu) | bbl | 1,538,500 | 3,634,000 |
Weighted average price (in dollars per share) | 81.04 | 64.83 |
Commodity - Oil | Call option | ||
Derivative [Line Items] | ||
Total volume (MMBtu) | bbl | 1,825,000 | 0 |
Weighted average price (in dollars per share) | 72 | 0 |
Commodity - Oil | Collar Contracts | ||
Derivative [Line Items] | ||
Total volume (MMBtu) | bbl | 2,730,000 | 2,392,000 |
Commodity - Oil | Collar Contracts | Call option | Short | ||
Derivative [Line Items] | ||
Weighted average price (in dollars per share) | 87.15 | 70.12 |
Commodity - Oil | Collar Contracts | Put option | Long | ||
Derivative [Line Items] | ||
Weighted average price (in dollars per share) | 71.92 | 60 |
Commodity - Oil | Oil Contracts (Midland Basis Differential) | ||
Derivative [Line Items] | ||
Total volume (MMBtu) | bbl | 0 | 1,196,000 |
Weighted average price (in dollars per share) | 0 | 0.50 |
Natural gas | ||
Derivative [Line Items] | ||
Total volume (MMBtu) | MMBTU | 0 | 6,150,000 |
Weighted average price per MMBtu (in dollars per MMBtu) | $ / MMBTU | 0 | 3.62 |
Natural gas | Collar Contracts | ||
Derivative [Line Items] | ||
Total volume (MMBtu) | MMBTU | 6,640,000 | 5,510,000 |
Natural gas | Collar Contracts | Call option | Short | ||
Derivative [Line Items] | ||
Weighted average price per MMBtu (in dollars per MMBtu) | $ / MMBTU | 6.60 | 5.96 |
Natural gas | Collar Contracts | Put option | Long | ||
Derivative [Line Items] | ||
Weighted average price per MMBtu (in dollars per MMBtu) | $ / MMBTU | 4.48 | 4.21 |
Natural gas | Natural Gas Contracts (Waha Basis Differential) | ||
Derivative [Line Items] | ||
Total volume (MMBtu) | MMBTU | 6,080,000 | 1,220,000 |
Weighted average price per MMBtu (in dollars per MMBtu) | $ / MMBTU | 0.75 | 0.75 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments at Carrying and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
6.125% Senior Notes due 2024 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 6.125% | |
9.00% Second Lien Senior Secured Notes due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 9% | |
8.25% Senior Notes due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 8.25% | |
6.375% Senior Notes due 2026 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 6.375% | |
8.00% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 8% | |
7.50% Senior Notes due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 7.50% | |
Unsecured debt | 6.125% Senior Notes due 2024 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 6.125% | |
Unsecured debt | 8.25% Senior Notes due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 8.25% | |
Unsecured debt | 6.375% Senior Notes due 2026 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 6.375% | |
Unsecured debt | 7.50% Senior Notes due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated (as a percent) | 7.50% | |
Principal Amount | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | $ 1,758,021 | $ 1,937,921 |
Principal Amount | Level 2 | Unsecured debt | 6.125% Senior Notes due 2024 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 0 | 460,241 |
Principal Amount | Level 2 | Unsecured debt | 9.00% Second Lien Senior Secured Notes due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 0 | 319,659 |
Principal Amount | Level 2 | Unsecured debt | 8.25% Senior Notes due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 187,238 | 187,238 |
Principal Amount | Level 2 | Unsecured debt | 6.375% Senior Notes due 2026 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 320,783 | 320,783 |
Principal Amount | Level 2 | Unsecured debt | 8.00% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 650,000 | 650,000 |
Principal Amount | Level 2 | Unsecured debt | 7.50% Senior Notes due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 600,000 | 0 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 1,658,044 | 1,956,257 |
Fair Value | Level 2 | Unsecured debt | 6.125% Senior Notes due 2024 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 0 | 455,639 |
Fair Value | Level 2 | Unsecured debt | 9.00% Second Lien Senior Secured Notes due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 0 | 343,633 |
Fair Value | Level 2 | Unsecured debt | 8.25% Senior Notes due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 183,025 | 184,429 |
Fair Value | Level 2 | Unsecured debt | 6.375% Senior Notes due 2026 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 295,409 | 309,556 |
Fair Value | Level 2 | Unsecured debt | 8.00% Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 625,144 | 663,000 |
Fair Value | Level 2 | Unsecured debt | 7.50% Senior Notes due 2030 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 554,466 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial guarantee contracts, deferred premium | $ 2,900 | |
Level 1 | ||
Derivative Asset [Abstract] | ||
Commodity derivative assets | 0 | |
Contingent consideration arrangements | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Commodity derivative liabilities | $ 0 | 0 |
Contingent consideration arrangements | 0 | |
Total net assets (liabilities) | 0 | |
Level 2 | ||
Derivative Asset [Abstract] | ||
Commodity derivative assets | 1,798 | |
Contingent consideration arrangements | 20,833 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Commodity derivative liabilities | (322,613) | (172,386) |
Contingent consideration arrangements | (25,000) | |
Total net assets (liabilities) | (174,755) | |
Level 3 | ||
Derivative Asset [Abstract] | ||
Commodity derivative assets | 0 | |
Contingent consideration arrangements | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Commodity derivative liabilities | $ 0 | 0 |
Contingent consideration arrangements | 0 | |
Total net assets (liabilities) | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes at statutory tax rate, percent | 21% | |||
Effective income tax rate (in percent) | (1.00%) | (4.00%) | (1.00%) | (1.00%) |
Deferred tax assets, valuation allowance | $ 0 | $ 0 |
Share-Based Compensation - RSU
Share-Based Compensation - RSU Equity Awards (Details) - RSU Equity Awards shares in Thousands | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
RSU Equity Awards | |
Unvested, beginning of the period (in shares) | shares | 968 |
Granted (in shares) | shares | 355 |
Vested (in shares) | shares | (354) |
Forfeited (in shares) | shares | (42) |
Unvested, end of the period (in shares) | shares | 927 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, beginning of the period (in dollars per share) | $ / shares | $ 34.04 |
Granted (in dollars per share) | $ / shares | 60.02 |
Vested (in dollars per share) | $ / shares | 35.28 |
Forfeited (in dollars per share) | $ / shares | 14.59 |
Unvested, end of the period (in dollars per share) | $ / shares | $ 22.66 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
RSU Equity Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 60.02 | |
Grant date fair value | $ 21,500 | |
Unrecognized compensation costs | $ 33,200 | |
Period for recognition (in years) | 2 years 2 months 12 days | |
Granted (in shares) | 355,000 | |
Cash-Settled RSU Awards | Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Liability for Cash-Settled RSU Awards (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Other current liabilities | $ 7,593 | $ 9,266 |
Other long-term liabilities | 1,406 | 6,366 |
Total Cash-Settled RSU Awards | 8,999 | 15,632 |
Cash SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Other current liabilities | 6,306 | 7,884 |
Cash-Settled RSU Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Other current liabilities | 1,287 | 1,382 |
Other long-term liabilities | $ 1,406 | $ 6,366 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ (3,357) | $ 9,925 | $ 2,686 | $ 21,841 |
Less: amounts capitalized to oil and gas properties | 147 | (4,646) | (1,730) | (8,954) |
Total share-based compensation expense (benefit), net | (3,210) | 5,279 | 956 | 12,887 |
RSU Equity Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 4,323 | 3,242 | 7,689 | 5,850 |
Cash-Settled RSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | (3,662) | 3,007 | (3,425) | 7,449 |
Cash SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ (4,018) | $ 3,676 | $ (1,578) | $ 8,542 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Common stock, authorized (in shares) | 130,000,000 | 78,750,000 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 363,183 | $ 234,641 |
Allowance for credit losses | (2,228) | (2,205) |
Total accounts receivable, net | 360,955 | 232,436 |
Joint interest receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 15,434 | 13,751 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 73,273 | 49,053 |
Oil and natural gas receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 274,476 | $ 171,837 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 221,044 | $ 151,836 |
Revenues and royalties payable | 284,470 | 294,143 |
Accrued capital expenditures | 60,492 | 64,412 |
Accrued interest | 40,087 | 59,600 |
Total accounts payable and accrued liabilities | $ 606,093 | $ 569,991 |
Supplemental Cash Flow (Details
Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 15,149 | $ 14,576 |
Investing cash flows from operating leases | 19,318 | 8,402 |
Non-cash investing and financing activities: | ||
Change in accrued capital expenditures | 56,213 | 47,247 |
Change in asset retirement costs | 2,237 | 2,567 |
ROU assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 26,971 | $ 9,710 |