ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Virginia | 23-1184320 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer | o | Accelerated filer | ý |
Non-accelerated filer | o | Smaller reporting company | o |
Part I - Financial Information | ||
Item | Page | |
1. | Financial Statements: | |
Condensed Consolidated Statements of Operations for the Periods Ended June 30, 2016 and 2015 | ||
Condensed Consolidated Statements of Comprehensive Income for the Periods Ended June 30, 2016 and 2015 | ||
Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015 | ||
Condensed Consolidated Statements of Cash Flows for the Periods Ended June 30, 2016 and 2015 | ||
Notes to Condensed Consolidated Financial Statements: | ||
1. Nature of Operations | ||
2. Basis of Presentation | ||
3. Chapter 11 Proceedings | ||
4. Acquisitions and Divestitures | ||
5. Accounts Receivable and Major Customers | ||
6. Derivative Instruments | ||
7. Property and Equipment | ||
8. Debt Obligations | ||
9. Income Taxes | ||
10. Exit Activities | ||
11. Additional Balance Sheet Detail | ||
12. Fair Value Measurements | ||
13. Commitments and Contingencies | ||
14. Shareholders’ Equity | ||
15. Share-Based Compensation and Other Benefit Plans | ||
16. Interest Expense | ||
17. Earnings per Share | ||
Forward-Looking Statements | ||
2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations: | |
Overview and Executive Summary | ||
Key Developments | ||
Financial Condition | ||
Results of Operations | ||
Critical Accounting Estimates | ||
3. | Quantitative and Qualitative Disclosures About Market Risk | |
4. | Controls and Procedures | |
Part II - Other Information | ||
1. | Legal Proceedings | |
1A. | Risk Factors | |
6. | Exhibits | |
Signatures |
Item 1. | Financial Statements |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | |||||||||||||||
Crude oil | $ | 32,019 | $ | 70,672 | $ | 57,985 | $ | 129,840 | |||||||
Natural gas liquids (NGLs) | 2,431 | 5,191 | 4,384 | 10,587 | |||||||||||
Natural gas | 1,917 | 7,260 | 4,319 | 15,831 | |||||||||||
Gain (loss) on sales of property and equipment, net | 910 | 66 | 757 | (25 | ) | ||||||||||
Other, net | (125 | ) | 427 | 204 | 1,910 | ||||||||||
Total revenues | 37,152 | 83,616 | 67,649 | 158,143 | |||||||||||
Operating expenses | |||||||||||||||
Lease operating | 5,225 | 10,907 | 11,417 | 22,476 | |||||||||||
Gathering, processing and transportation | 4,650 | 6,383 | 8,468 | 13,881 | |||||||||||
Production and ad valorem taxes | 2,163 | 4,967 | 2,916 | 9,656 | |||||||||||
General and administrative | 9,662 | 11,479 | 26,764 | 23,449 | |||||||||||
Exploration | 4,320 | 4,362 | 5,647 | 10,249 | |||||||||||
Depreciation, depletion and amortization | 11,746 | 85,416 | 25,558 | 176,206 | |||||||||||
Impairments | — | 1,084 | — | 1,084 | |||||||||||
Total operating expenses | 37,766 | 124,598 | 80,770 | 257,001 | |||||||||||
Operating loss | (614 | ) | (40,982 | ) | (13,121 | ) | (98,858 | ) | |||||||
Other income (expense) | |||||||||||||||
Interest expense | (32,221 | ) | (23,023 | ) | (56,655 | ) | (45,036 | ) | |||||||
Derivatives | (21,759 | ) | (15,495 | ) | (17,267 | ) | 7,372 | ||||||||
Other | (6 | ) | (540 | ) | (1,030 | ) | (542 | ) | |||||||
Reorganization items, net | (7,380 | ) | — | (7,380 | ) | — | |||||||||
Loss before income taxes | (61,980 | ) | (80,040 | ) | (95,453 | ) | (137,064 | ) | |||||||
Income tax expense | — | (89 | ) | — | (230 | ) | |||||||||
Net loss | (61,980 | ) | (80,129 | ) | (95,453 | ) | (137,294 | ) | |||||||
Preferred stock dividends | (2,820 | ) | (6,067 | ) | (5,972 | ) | (12,134 | ) | |||||||
Net loss attributable to common shareholders | $ | (64,800 | ) | $ | (86,196 | ) | $ | (101,425 | ) | $ | (149,428 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.73 | ) | $ | (1.19 | ) | $ | (1.16 | ) | $ | (2.07 | ) | |||
Diluted | $ | (0.73 | ) | $ | (1.19 | ) | $ | (1.16 | ) | $ | (2.07 | ) | |||
Weighted average shares outstanding – basic | 89,051 | 72,398 | 87,496 | 72,330 | |||||||||||
Weighted average shares outstanding – diluted | 89,051 | 72,398 | 87,496 | 72,330 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net loss | $ | (61,980 | ) | $ | (80,129 | ) | $ | (95,453 | ) | $ | (137,294 | ) | |||
Other comprehensive loss: | |||||||||||||||
Change in pension and postretirement obligations, net of tax of $(5) and $(11) in 2015 | (11 | ) | (10 | ) | (38 | ) | (21 | ) | |||||||
(11 | ) | (10 | ) | (38 | ) | (21 | ) | ||||||||
Comprehensive loss | $ | (61,991 | ) | $ | (80,139 | ) | $ | (95,491 | ) | $ | (137,315 | ) |
As of | |||||||
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 38,997 | $ | 11,955 | |||
Accounts receivable, net of allowance for doubtful accounts | 40,314 | 47,965 | |||||
Derivative assets | — | 97,956 | |||||
Other current assets | 4,939 | 7,104 | |||||
Total current assets | 84,250 | 164,980 | |||||
Property and equipment, net (successful efforts method) | 321,132 | 344,395 | |||||
Other assets | 6,740 | 8,350 | |||||
Total assets | $ | 412,122 | $ | 517,725 | |||
Liabilities and Shareholders’ Deficit | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | $ | 53,160 | $ | 103,525 | |||
Derivative liabilities | 4,527 | — | |||||
Debt obligations, net of unamortized issuance costs | 112,553 | 1,224,383 | |||||
Total current liabilities | 170,240 | 1,327,908 | |||||
Other liabilities | 84,346 | 104,938 | |||||
Derivative liabilities | 13,715 | — | |||||
Liabilities subject to compromise | 1,158,355 | — | |||||
Commitments and contingencies (Note 13) | |||||||
Shareholders’ deficit: | |||||||
Preferred stock of $100 par value – 100,000 shares authorized; Series A – 3,864 and 3,915 shares issued as of June 30, 2016 and December 31, 2015, respectively, and Series B – 14,933 and 27,551 issued as of June 30, 2016 and December 31, 2015, each with a redemption value of $10,000 per share | 1,880 | 3,146 | |||||
Common stock of $0.01 par value – 228,000,000 shares authorized; 88,217,880 and 81,252,676 shares issued as of June 30, 2016 and December 31, 2015, respectively | 697 | 628 | |||||
Paid-in capital | 1,208,363 | 1,211,088 | |||||
Accumulated deficit | (2,225,724 | ) | (2,130,271 | ) | |||
Deferred compensation obligation | 3,440 | 3,440 | |||||
Accumulated other comprehensive income | 384 | 422 | |||||
Treasury stock – 455,689 and 455,689 shares of common stock, at cost, as of June 30, 2016 and December 31, 2015, respectively | (3,574 | ) | (3,574 | ) | |||
Total shareholders’ deficit | (1,014,534 | ) | (915,121 | ) | |||
Total liabilities and shareholders’ deficit | $ | 412,122 | $ | 517,725 |
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (95,453 | ) | $ | (137,294 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 25,558 | 176,206 | |||||
Impairments | — | 1,084 | |||||
Accretion of firm transportation obligation | 317 | 445 | |||||
Derivative contracts: | |||||||
Net losses (gains) | 17,267 | (7,372 | ) | ||||
Cash settlements, net | 46,952 | 72,332 | |||||
Deferred income tax expense | — | 230 | |||||
(Gain) loss on sales of assets, net | (757 | ) | 25 | ||||
Non-cash exploration expense | 1,713 | 4,005 | |||||
Non-cash interest expense | 22,189 | 2,280 | |||||
Share-based compensation (equity-classified) | (3,922 | ) | 2,106 | ||||
Other, net | (13 | ) | 3 | ||||
Changes in operating assets and liabilities, net | 31,922 | (15,769 | ) | ||||
Net cash provided by operating activities | 45,773 | 98,281 | |||||
Cash flows from investing activities | |||||||
Capital expenditures – property and equipment | (14,575 | ) | (263,993 | ) | |||
Proceeds from sales of assets, net | 126 | (221 | ) | ||||
Other, net | 1,186 | — | |||||
Net cash used in investing activities | (13,263 | ) | (264,214 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from revolving credit facility borrowings | — | 197,000 | |||||
Repayment of revolving credit facility borrowings | (5,468 | ) | (20,000 | ) | |||
Debt issuance costs paid | — | (744 | ) | ||||
Dividends paid on preferred stock | — | (12,134 | ) | ||||
Net cash (used in) provided by financing activities | (5,468 | ) | 164,122 | ||||
Net increase (decrease) in cash and cash equivalents | 27,042 | (1,811 | ) | ||||
Cash and cash equivalents – beginning of period | 11,955 | 6,252 | |||||
Cash and cash equivalents – end of period | $ | 38,997 | $ | 4,441 | |||
Supplemental disclosures: | |||||||
Cash paid for: | |||||||
Interest | $ | 2,947 | $ | 46,041 | |||
Income taxes paid (refunds received) | $ | (35 | ) | $ | 7 | ||
Non-cash investing and financing activities: | |||||||
Changes in accrued liabilities related to capital expenditures | $ | (10,555 | ) | $ | (20,570 | ) | |
Derivatives settled to reduce outstanding debt | $ | 51,979 | $ | — |
1. | Nature of Operations |
2. | Basis of Presentation |
3. | Chapter 11 Proceedings |
• | the approximately $1,122 million of indebtedness, including accrued interest, attributable to our Senior Notes and certain other unsecured claims will be exchanged for approximately 43.4 percent of the New Common Stock; |
• | holders of claims arising under the debtor-in-possession (“DIP”) credit facility (the “DIP Facility”) (see “Debtor-In-Possession Financing” below) will be paid in full from cash on hand and proceeds from the Exit Facility (see “Exit Facility” below) and the Rights Offering; |
• | holders of claims arising under the RBL will be paid in full from cash on hand and proceeds from the Exit Facility and the Rights Offering; |
• | the Ad Hoc Committee will receive a backstop fee which represents approximately 3.2 percent of the New Common Stock; |
• | holders of the Senior Notes and Republic Midstream, LLC (“Republic Midstream”) will be entitled to participate in the Rights Offering; and |
• | our current preferred stock and common stock will be canceled, extinguished and discharged. |
Senior Notes | $ | 1,075,000 | ||
Interest on Senior Notes | 47,213 | |||
Firm transportation obligation | 12,719 | |||
Compensation – related | 9,733 | |||
Deferred compensation | 4,605 | |||
Defined benefit pension obligations | 1,221 | |||
Postretirement health care benefit obligations | 883 | |||
Trade accounts payable | 1,892 | |||
Litigation claims | 1,092 | |||
Other accrued liabilities | 3,997 | |||
$ | 1,158,355 |
Legal and professional fees and expenses | $ | 7,237 | ||
DIP Facility costs and commitment fees | 143 | |||
Adjustments to pre-petition liabilities | — | |||
$ | 7,380 |
4. | Acquisitions and Divestitures |
As of | |||||||
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Customers | $ | 22,573 | $ | 23,481 | |||
Joint interest partners | 12,849 | 18,381 | |||||
Other | 6,510 | 7,658 | |||||
41,932 | 49,520 | ||||||
Less: Allowance for doubtful accounts | (1,618 | ) | (1,555 | ) | |||
$ | 40,314 | $ | 47,965 |
6. | Derivative Instruments |
Average | ||||||||||||||||||
Volume Per | Weighted Average Price | Fair Value | ||||||||||||||||
Instrument | Day | Floor/Swap | Ceiling | Asset | Liability | |||||||||||||
Crude Oil: | (barrels) | ($/barrel) | ||||||||||||||||
Third quarter 2016 | Swaps | 5,940 | $ | 47.69 | $ | — | $ | 807 | ||||||||||
Fourth quarter 2016 | Swaps | 5,940 | $ | 47.69 | — | 1,628 | ||||||||||||
First quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,178 | ||||||||||||
Second quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,390 | ||||||||||||
Third quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,551 | ||||||||||||
Fourth quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,721 | ||||||||||||
First quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,252 | ||||||||||||
Second quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,329 | ||||||||||||
Third quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,410 | ||||||||||||
Fourth quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,485 | ||||||||||||
First quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,056 | ||||||||||||
Second quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,098 | ||||||||||||
Third quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,142 | ||||||||||||
Fourth quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,195 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cash settlements and gains (losses): | |||||||||||||||
Cash received for: | |||||||||||||||
Commodity contract settlements | $ | 16,393 | $ | 34,840 | $ | 46,952 | $ | 72,332 | |||||||
Losses attributable to: | |||||||||||||||
Commodity contracts | (38,152 | ) | (50,335 | ) | (64,219 | ) | (64,960 | ) | |||||||
$ | (21,759 | ) | $ | (15,495 | ) | $ | (17,267 | ) | $ | 7,372 |
Fair Values as of | |||||||||||||||||
June 30, 2016 | December 31, 2015 | ||||||||||||||||
Derivative | Derivative | Derivative | Derivative | ||||||||||||||
Type | Balance Sheet Location | Assets | Liabilities | Assets | Liabilities | ||||||||||||
Commodity contracts | Derivative assets/liabilities – current | $ | — | $ | 4,527 | $ | 97,956 | $ | — | ||||||||
Commodity contracts | Derivative assets/liabilities - noncurrent | $ | — | $ | 13,715 | $ | — | $ | — |
7. | Property and Equipment |
As of | |||||||
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Oil and gas properties: | |||||||
Proved | $ | 2,682,106 | $ | 2,678,415 | |||
Unproved | 5,185 | 6,881 | |||||
Total oil and gas properties | 2,687,291 | 2,685,296 | |||||
Other property and equipment | 31,555 | 31,365 | |||||
Total properties and equipment | 2,718,846 | 2,716,661 | |||||
Accumulated depreciation, depletion and amortization | (2,397,714 | ) | (2,372,266 | ) | |||
$ | 321,132 | $ | 344,395 |
8. | Debt Obligations |
As of | |||||||||||||||
June 30, 2016 | December 31, 2015 | ||||||||||||||
Principal | Unamortized Issuance Costs 1 | Principal | Unamortized Issuance Costs | ||||||||||||
Revolving credit facility 2 | $ | 112,553 | $ | 170,000 | |||||||||||
Senior notes due 2019 | 300,000 | $ | — | 300,000 | $ | 3,295 | |||||||||
Senior notes due 2020 | 775,000 | — | 775,000 | 17,322 | |||||||||||
Totals | 1,187,553 | $ | — | 1,245,000 | $ | 20,617 | |||||||||
Less: Unamortized issuance costs | — | (20,617 | ) | ||||||||||||
Less: Reclassified to Liabilities subject to compromise | (1,075,000 | ) | — | ||||||||||||
Debt obligations, net of unamortized issuance costs | $ | 112,553 | $ | 1,224,383 |
9. | Income Taxes |
10. | Exit Activities |
As of | |||||||
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Balance at beginning of period | $ | 13,461 | $ | 14,790 | |||
Accretion | 317 | 942 | |||||
Cash payments, net | (1,059 | ) | (2,271 | ) | |||
Balance at end of period | $ | 12,719 | $ | 13,461 |
11. | Additional Balance Sheet Detail |
As of | |||||||
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Other current assets: | |||||||
Tubular inventory and well materials | $ | 2,214 | $ | 2,878 | |||
Prepaid expenses | 2,718 | 4,184 | |||||
Other | 7 | 42 | |||||
$ | 4,939 | $ | 7,104 | ||||
Other assets: | |||||||
Assets of supplemental employee retirement plan (“SERP”) | $ | 4,220 | $ | 4,123 | |||
Deferred issuance costs of the RBL 1 | — | 1,572 | |||||
Other | 2,520 | 2,655 | |||||
$ | 6,740 | $ | 8,350 | ||||
Accounts payable and accrued liabilities: | |||||||
Trade accounts payable 2 | $ | 23,394 | $ | 11,603 | |||
Drilling costs | 2,228 | 12,074 | |||||
Royalties and revenue – related | 10,662 | 39,119 | |||||
Compensation – related 2 | 685 | 9,904 | |||||
Interest 2 | 18 | 15,531 | |||||
Other 2 | 16,173 | 15,294 | |||||
$ | 53,160 | $ | 103,525 | ||||
Other liabilities: | |||||||
Deferred gains on sales of assets | $ | 80,967 | $ | 82,943 | |||
Firm transportation obligation 2 | — | 10,705 | |||||
Asset retirement obligations (“AROs”) | 3,379 | 2,621 | |||||
Defined benefit pension obligations 2 | — | 1,129 | |||||
Postretirement health care benefit obligations 2 | — | 731 | |||||
Compensation – related 2 | — | 1,447 | |||||
Deferred compensation – SERP obligations and other 2 | — | 4,434 | |||||
Other 2 | — | 928 | |||||
$ | 84,346 | $ | 104,938 |
12. | Fair Value Measurements |
As of | |||||||||||||||
June 30, 2016 | December 31, 2015 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
Senior Notes due 2019 | $ | 22,500 | $ | 300,000 | $ | 40,830 | $ | 300,000 | |||||||
Senior Notes due 2020 | 58,125 | 775,000 | 125,473 | 775,000 | |||||||||||
$ | 80,625 | $ | 1,075,000 | $ | 166,303 | $ | 1,075,000 |
As of June 30, 2016 | ||||||||||||||||
Fair Value | Fair Value Measurement Classification | |||||||||||||||
Description | Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Assets of SERP | $ | 4,220 | $ | 4,220 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Commodity derivative liabilities – current | (4,527 | ) | — | (4,527 | ) | — | ||||||||||
Commodity derivative liabilities – noncurrent | (13,715 | ) | — | (13,715 | ) | — | ||||||||||
Deferred compensation – SERP obligations 1 | — | — | — | — |
As of December 31, 2015 | ||||||||||||||||
Fair Value | Fair Value Measurement Classification | |||||||||||||||
Description | Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Commodity derivative assets – current | $ | 97,956 | $ | — | $ | 97,956 | $ | — | ||||||||
Assets of SERP | 4,123 | 4,123 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Deferred compensation – SERP obligations | (4,125 | ) | (4,125 | ) | — | — |
• | Commodity derivatives: We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for West Texas Intermediate crude oil and NYMEX Henry Hub gas closing prices as of the end of the reporting periods. We generally use the income approach, using valuation techniques that convert future cash flows to a single discounted value. Each of these is a level 2 input. |
• | Assets of SERP: We hold various publicly traded equity securities in a Rabbi Trust as assets for funding certain deferred compensation obligations. The fair values are based on quoted market prices, which are level 1 inputs. |
• | Deferred compensation – SERP obligations: Certain of our deferred compensation obligations are ultimately to be settled in cash based on the underlying fair value of certain assets, including those held in the Rabbi Trust. The fair values are based on quoted market prices, which are level 1 inputs. |
13. | Commitments and Contingencies |
14. | Shareholders’ Equity |
As of | As of | ||||||||||||||||||
December 31, | Dividends | All Other | June 30, | ||||||||||||||||
2015 | Net Loss | Declared | Changes 1 | 2016 | |||||||||||||||
Preferred stock 2 | $ | 3,146 | $ | — | $ | — | $ | (1,266 | ) | $ | 1,880 | ||||||||
Common stock 2 | 628 | — | — | 69 | 697 | ||||||||||||||
Paid-in capital 2 | 1,211,088 | — | — | (2,725 | ) | 1,208,363 | |||||||||||||
Accumulated deficit | (2,130,271 | ) | (95,453 | ) | — | (2,225,724 | ) | ||||||||||||
Deferred compensation obligation | 3,440 | — | — | — | 3,440 | ||||||||||||||
Accumulated other comprehensive income 3 | 422 | — | — | (38 | ) | 384 | |||||||||||||
Treasury stock | (3,574 | ) | — | — | — | (3,574 | ) | ||||||||||||
$ | (915,121 | ) | $ | (95,453 | ) | $ | — | $ | (3,960 | ) | $ | (1,014,534 | ) | ||||||
As of | As of | ||||||||||||||||||
December 31, | Dividends | All Other | June 30, | ||||||||||||||||
2014 | Net Loss | Declared 4 | Changes 1 | 2015 | |||||||||||||||
Preferred stock | $ | 4,044 | $ | — | $ | — | $ | — | $ | 4,044 | |||||||||
Common stock | 529 | — | — | 1 | 530 | ||||||||||||||
Paid-in capital | 1,206,305 | — | — | 1,549 | 1,207,854 | ||||||||||||||
Accumulated deficit | (535,176 | ) | (137,294 | ) | (12,134 | ) | — | (684,604 | ) | ||||||||||
Deferred compensation obligation | 3,211 | — | — | 143 | 3,354 | ||||||||||||||
Accumulated other comprehensive income 3 | 249 | — | — | (21 | ) | 228 | |||||||||||||
Treasury stock | (3,345 | ) | — | — | (143 | ) | (3,488 | ) | |||||||||||
$ | 675,817 | $ | (137,294 | ) | $ | (12,134 | ) | $ | 1,529 | $ | 527,918 |
15. | Share-Based Compensation and Other Benefit Plans |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Equity-classified awards: | |||||||||||||||
Stock option awards | $ | 155 | $ | 387 | $ | (147 | ) | $ | 780 | ||||||
Common, deferred and restricted stock and stock unit awards | (3,476 | ) | 729 | (3,775 | ) | 1,326 | |||||||||
(3,321 | ) | 1,116 | (3,922 | ) | 2,106 | ||||||||||
Liability-classified awards | (12 | ) | (214 | ) | (19 | ) | 165 | ||||||||
$ | (3,333 | ) | $ | 902 | $ | (3,941 | ) | $ | 2,271 |
16. | Interest Expense |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest on borrowings and related fees 1 | $ | 11,344 | $ | 23,324 | $ | 34,649 | $ | 46,132 | |||||||
Amortization of debt issuance costs 2 | 20,920 | 1,176 | 22,189 | 2,280 | |||||||||||
Capitalized interest | (43 | ) | (1,477 | ) | (183 | ) | (3,376 | ) | |||||||
$ | 32,221 | $ | 23,023 | $ | 56,655 | $ | 45,036 |
17. | Earnings (Loss) per Share |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net loss | $ | (61,980 | ) | $ | (80,129 | ) | $ | (95,453 | ) | $ | (137,294 | ) | |||
Less: Preferred stock dividends 1 | (2,820 | ) | (6,067 | ) | (5,972 | ) | (12,134 | ) | |||||||
Net loss attributable to common shareholders – basic and diluted | $ | (64,800 | ) | $ | (86,196 | ) | $ | (101,425 | ) | $ | (149,428 | ) | |||
Weighted-average shares – basic | 89,051 | 72,398 | 87,496 | 72,330 | |||||||||||
Effect of dilutive securities 2 | — | — | — | — | |||||||||||
Weighted-average shares – diluted | 89,051 | 72,398 | 87,496 | 72,330 |
• | our ability to prosecute, confirm and consummate a plan of reorganization with respect to the Chapter 11 cases; |
• | the ability to maintain relationships with suppliers, customers, employees and other third parties that are critical to our operations in Chapter 11; |
• | our ability to obtain approval with respect to motions or other requests made to the Bankruptcy Court in the Chapter 11 cases; |
• | the effects of the bankruptcy petitions on us and on the interests of various constituents, including holders of our common and preferred stock; |
• | Bankruptcy Court rulings in the Chapter 11 cases; |
• | the length of time that we will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the proceedings; |
• | risks associated with third party motions in the Chapter 11 cases, which may interfere with our ability to confirm and consummate a plan of reorganization; |
• | the ability of third parties to seek and obtain Bankruptcy Court approval to convert the Chapter 11 cases to Chapter 7 cases; |
• | potential adverse effects of the Chapter 11 proceedings on our liquidity and results of operations; |
• | significantly increased advisory and other costs to execute a plan of reorganization; |
• | our ability to satisfy our short-term and long-term liquidity needs, including our inability to generate sufficient cash flows from operations or to obtain adequate financing to fund our capital expenditures and meet working capital needs, and our ability to continue as a going concern; |
• | negative events or publicity adversely affecting our ability to maintain our relationships with our suppliers, service providers, customers, employees, and other third parties; |
• | the ability of third parties to seek and obtain Bankruptcy Court approval to terminate contracts and other agreements with us; |
• | the actions and decisions of our creditors and other third parties who have interests in our Chapter 11 proceedings that may be inconsistent with our plans; |
• | our ability to obtain sufficient financing to allow us to emerge from bankruptcy and execute our business plans post-emergence; |
• | uncertainty of our ability to improve our operating structure, financial results and profitability following emergence from Chapter 11 and other risks and uncertainties related to our emergence from Chapter 11; |
• | new capital structure and the adoption of fresh start accounting, including the risk that assumptions and factors used in estimating enterprise value vary significantly from the current estimates in connection with the application of fresh start accounting; |
• | plans, objectives, expectations and intentions contained in this report that are not historical; |
• | our ability to become quoted on a listing exchange; |
• | our ability to execute our business plan in the current depressed commodity price environment; |
• | our ability to attract, motivate and retain key employees; |
• | the volatility of commodity prices for oil, natural gas liquids, or NGLs, and natural gas; |
• | our ability to develop, explore for, acquire and replace oil and natural gas reserves and sustain production; |
• | our ability to generate profits or achieve targeted reserves in our development and exploratory drilling and well operations; |
• | any impairments, write-downs or write-offs of our reserves or assets; |
• | the resumption of our drilling program; |
• | the projected demand for and supply of oil, NGLs and natural gas; |
• | our ability to contract for drilling rigs, supplies and services at reasonable costs; |
• | our ability to obtain adequate pipeline transportation capacity for our oil and gas production at reasonable cost and to sell the production at, or at reasonable discounts to, market prices; |
• | the uncertainties inherent in projecting future rates of production for our wells and the extent to which actual production differs from estimated proved oil and natural gas reserves; |
• | drilling and operating risks; |
• | our ability to compete effectively against other oil and gas companies; |
• | leasehold terms expiring before production can be established; |
• | environmental obligations, costs and liabilities that are not covered by an effective indemnity or insurance; |
• | the timing of receipt of necessary regulatory permits; |
• | the effect of commodity and financial derivative arrangements; |
• | the occurrence of unusual weather or operating conditions, including force majeure events; |
• | our ability to retain or attract senior management and key technical employees; |
• | counterparty risk related to the ability of these parties to meet their future obligations; |
• | compliance with and changes in governmental regulations or enforcement practices, especially with respect to environmental, health and safety matters; |
• | physical, electronic and cybersecurity breaches; |
• | uncertainties relating to general domestic and international economic and political conditions; and |
• | other factors set forth in our periodic filings with the Securities and Exchange Commission, including the risks set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2015 and Item 1A of Part II of this Quarterly Report on Form 10-Q. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total production (MBOE) | 1,156 | 2,140 | 2,551 | 4,365 | |||||||||||
Average daily production (BOEPD) | 12,706 | 23,519 | 14,014 | 24,116 | |||||||||||
Crude oil and NGL production (MBbl) | 978 | 1,664 | 2,164 | 3,397 | |||||||||||
Crude oil and NGL production as a percent of total | 85 | % | 78 | % | 85 | % | 78 | % | |||||||
Product revenues, as reported | $ | 36,367 | $ | 83,123 | $ | 66,688 | $ | 156,258 | |||||||
Product revenues, as adjusted for derivatives | $ | 52,760 | $ | 117,963 | $ | 113,640 | $ | 228,590 | |||||||
Crude oil and NGL revenues as a percent of total, as reported | 95 | % | 91 | % | 94 | % | 90 | % | |||||||
Realized prices: | |||||||||||||||
Crude oil ($/Bbl) | $ | 40.48 | $ | 55.22 | $ | 32.87 | $ | 49.62 | |||||||
NGL ($/Bbl) | $ | 13.01 | $ | 13.53 | $ | 10.95 | $ | 13.56 | |||||||
Natural gas ($/Mcf) | $ | 1.79 | $ | 2.54 | $ | 1.86 | $ | 2.73 | |||||||
Aggregate ($/BOE) | $ | 31.45 | $ | 38.84 | $ | 26.15 | $ | 35.80 | |||||||
Operating costs ($/BOE): | |||||||||||||||
Lease operating | $ | 4.52 | $ | 5.10 | $ | 4.48 | $ | 5.15 | |||||||
Gathering, processing and transportation | 4.02 | 2.98 | 3.32 | 3.18 | |||||||||||
Production and ad valorem taxes | 1.87 | 2.32 | 1.14 | 2.21 | |||||||||||
General and administrative 1 | 4.90 | 4.40 | 4.54 | 4.58 | |||||||||||
Total operating costs | $ | 15.31 | $ | 14.80 | $ | 13.48 | $ | 15.12 | |||||||
Depreciation, depletion and amortization ($/BOE) | $ | 10.16 | $ | 39.91 | $ | 10.02 | $ | 40.37 | |||||||
Cash provided by operating activities | $ | 17,242 | $ | 52,729 | $ | 45,773 | $ | 98,281 | |||||||
Cash paid for capital expenditures, net | $ | 570 | $ | 94,999 | $ | 14,575 | $ | 263,993 | |||||||
Cash and cash equivalents at end of period | $ | 38,997 | $ | 4,441 | |||||||||||
Credit available under debtor-in-possession credit facility 2 | $ | 25,000 | $ | — | |||||||||||
Credit available under revolving credit facility at end of period 3 | $ | — | $ | 211,196 | |||||||||||
Net development wells drilled and completed | — | 13.5 | 2.3 | 27.6 |
• | the approximately $1,122 million of indebtedness, including accrued interest, attributable to our Senior Notes and certain other unsecured claims will be exchanged for approximately 43.4 percent of the New Common Stock; |
• | holders of claims arising under the debtor-in-possession, or DIP, credit facility, or the DIP Facility (see “Debtor-In-Possession Financing” below) will be paid in full from cash on hand and proceeds from the Exit Facility (see “Exit Facility” below) and the Rights Offering; |
• | holders of claims arising under the RBL will be paid in full from cash on hand and proceeds from the Exit Facility and the Rights Offering; |
• | the Ad Hoc Committee will receive a backstop fee consisting of approximately 3.2 percent of the New Common Stock; |
• | holders of the Senior Notes and Republic Midstream, LLC, or Republic Midstream, will be entitled to participate in the Rights Offering; and |
• | our current preferred stock and common stock will be canceled, extinguished and discharged. |
Borrowings Outstanding | ||||||||||
Weighted- Average | Maximum | Weighted- Average Rate | ||||||||
Three months ended June 30, 2016 | $ | 120,135 | $ | 147,065 | 5.0902 | % | ||||
Six months ended June 30, 2016 | $ | 143,010 | $ | 170,000 | 3.9156 | % |
Six Months Ended | |||||||||||
June 30, | |||||||||||
2016 | 2015 | Variance | |||||||||
Cash flows from operating activities | |||||||||||
Operating cash flows, net | $ | 25,417 | $ | 92,105 | $ | (66,688 | ) | ||||
Working capital changes (excluding interest, income taxes and restructuring costs paid), net | (4,026 | ) | (14,661 | ) | 10,635 | ||||||
Commodity derivative settlements received, net: | |||||||||||
Crude oil | 46,952 | 71,651 | (24,699 | ) | |||||||
Natural gas | — | 681 | (681 | ) | |||||||
Interest payments, net of amounts capitalized | (2,765 | ) | (42,665 | ) | 39,900 | ||||||
Income taxes received (paid) | 35 | (7 | ) | 42 | |||||||
Drilling rig termination charges paid | — | (6,416 | ) | 6,416 | |||||||
Strategic, financial and bankruptcy-related advisory fees and costs paid | (18,067 | ) | (462 | ) | (17,605 | ) | |||||
Restructuring and exit costs paid | (1,773 | ) | (1,945 | ) | 172 | ||||||
Net cash provided by operating activities | 45,773 | 98,281 | (52,508 | ) | |||||||
Cash flows from investing activities | |||||||||||
Capital expenditures – property and equipment | (14,575 | ) | (263,993 | ) | 249,418 | ||||||
Proceeds from sales of assets, net | 126 | (221 | ) | 347 | |||||||
Other, net | 1,186 | — | 1,186 | ||||||||
Net cash used in investing activities | (13,263 | ) | (264,214 | ) | 250,951 | ||||||
Cash flows from financing activities | |||||||||||
(Repayments) proceeds from revolving credit facility borrowings, net | (5,468 | ) | 177,000 | (182,468 | ) | ||||||
Debt issuance costs paid | — | (744 | ) | 744 | |||||||
Dividends paid on preferred stock | — | (12,134 | ) | 12,134 | |||||||
Net cash (used in) provided by financing activities | (5,468 | ) | 164,122 | (169,590 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | $ | 27,042 | $ | (1,811 | ) | $ | 28,853 |
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Oil and gas: | |||||||
Drilling and completion | $ | 3,784 | $ | 222,223 | |||
Lease acquisitions and other land-related costs 1 | 54 | 14,072 | |||||
Pipeline, gathering facilities and other equipment | 363 | 3,561 | |||||
Geological, geophysical (seismic) and delay rental costs | (17 | ) | 579 | ||||
4,184 | 240,435 | ||||||
Other – Corporate | — | 438 | |||||
Total capital program costs | $ | 4,184 | $ | 240,873 |
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
Total capital program costs | $ | 4,184 | $ | 240,873 | |||
Decrease in accrued capitalized costs | 10,555 | 20,570 | |||||
Less: | |||||||
Exploration costs charged to operations: | |||||||
Geological, geophysical (seismic) and delay rental costs | 17 | (579 | ) | ||||
Transfers from tubular inventory and well materials | (528 | ) | (2,414 | ) | |||
Add: | |||||||
Tubular inventory and well materials purchased in advance of drilling | 164 | 2,167 | |||||
Capitalized interest | 183 | 3,376 | |||||
Total cash paid for capital expenditures | $ | 14,575 | $ | 263,993 |
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
Debtor-in-possession credit facility | $ | — | $ | — | |||
Revolving credit facility | 112,553 | 170,000 | |||||
Senior notes due 2019 | 300,000 | 300,000 | |||||
Senior notes due 2020 | 775,000 | 775,000 | |||||
Total debt | 1,187,553 | 1,245,000 | |||||
Shareholders’ equity 1 | (1,014,534 | ) | (915,121 | ) | |||
$ | 173,019 | $ | 329,879 | ||||
Debt as a % of total capitalization | 686 | % | 377 | % |
Total Production | Average Daily Production | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||
(Total volume) | (Volume per day) | ||||||||||||||||
Crude oil (MBbl and Bbl per day) | 791 | 1,280 | (489 | ) | 8,692 | 14,064 | (5,372 | ) | |||||||||
NGLs (MBbl and Bbl per day) | 187 | 384 | (197 | ) | 2,053 | 4,217 | (2,163 | ) | |||||||||
Natural gas (MMcf and MMcf per day) | 1,070 | 2,860 | (1,790 | ) | 12 | 31 | (20 | ) | |||||||||
Total (MBOE and BOE per day) | 1,156 | 2,141 | (984 | ) | 12,706 | 23,518 | (10,812 | ) | |||||||||
% Change | (46 | )% | |||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||
(MBOE) | (BOE per day) | ||||||||||||||||
South Texas 1 | 1,055 | 1,844 | (788 | ) | 11,595 | 20,259 | (8,664 | ) | |||||||||
Mid-Continent and other 2 | 101 | 124 | (23 | ) | 1,110 | 1,362 | (251 | ) | |||||||||
Divested properties 3 | — | 173 | (173 | ) | — | 1,898 | (1,898 | ) | |||||||||
1,156 | 2,140 | (984 | ) | 12,706 | 23,519 | (10,813 | ) | ||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||
(Total volume) | (Volume per day) | ||||||||||||||||
Crude oil (MBbl and Bbl per day) | 1,764 | 2,617 | (853 | ) | 9,692 | 14,458 | (4,766 | ) | |||||||||
NGLs (MBbl and Bbl per day) | 400 | 780 | (380 | ) | 2,200 | 4,312 | (2,112 | ) | |||||||||
Natural gas (MMcf and MMcf per day) | 2,318 | 5,806 | (3,488 | ) | 13 | 32 | (19 | ) | |||||||||
Total (MBOE and BOE per day) | 2,551 | 4,365 | (1,814 | ) | 14,014 | 24,116 | (10,102 | ) | |||||||||
% Change | (42 | )% | |||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||
(MBOE) | (BOE per day) | ||||||||||||||||
South Texas 1 | 2,346 | 3,769 | (1,422 | ) | 12,892 | 20,822 | (7,930 | ) | |||||||||
Mid-Continent and other 2 | 204 | 250 | (46 | ) | 1,123 | 1,383 | (260 | ) | |||||||||
Divested properties 3 | — | 346 | (346 | ) | — | 1,912 | (1,912 | ) | |||||||||
2,551 | 4,365 | (1,814 | ) | 14,014 | 24,116 | (10,102 | ) |
1 | The 2015 periods include total production and average daily production of approximately 28 MBOE (313 BOEPD) and 65 MBOE (361 BOEPD) attributable to non-core Eagle Ford properties that we sold in October 2015. |
2 | The 2015 periods include total production and average daily production of approximately 5 MBOE (60 BOEPD) and 14 MBOE (79 BOEPD) attributable to certain Mid-Continent properties that we sold in October 2015. Also includes total production and average daily production of approximately 4 MBOE (50 BOEPD) and 9 MBOE (51 BOEPD) and 5 MBOE (59 BOEPD) and 11 MBOE (61 BOEPD) for the three and six months ended June 30, 2016 and 2015 attributable to our three active Marcellus Shale wells. |
3 | The 2015 periods include total production and average daily production of approximately 173 MBOE (1,898 BOEPD) and 346 MBOE (1,912 BOEPD )attributable to our former East Texas assets that were sold in August 2015. |
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
($ per Unit of volume) | |||||||||||||||||||||||
Crude oil (Total revenue and $ per barrel) | $ | 32,019 | $ | 70,672 | $ | (38,653 | ) | $ | 40.48 | $ | 55.22 | $ | (14.74 | ) | |||||||||
NGLs (Total revenue and $ per barrel) | 2,431 | 5,191 | (2,760 | ) | 13.01 | 13.53 | (0.52 | ) | |||||||||||||||
Natural gas (Total revenue and $ per Mcf)) | 1,917 | 7,260 | (5,343 | ) | 1.79 | 2.54 | (0.75 | ) | |||||||||||||||
Total (Total revenue and $ per BOE) | $ | 36,367 | $ | 83,123 | $ | (46,756 | ) | $ | 31.45 | $ | 38.84 | $ | (7.39 | ) | |||||||||
% Change | (56 | )% | |||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
($ per BOE) | |||||||||||||||||||||||
South Texas 1 | $ | 34,646 | $ | 77,463 | $ | (42,817 | ) | $ | 32.83 | $ | 42.02 | $ | (9.19 | ) | |||||||||
Mid-Continent and other 2 | 1,721 | 2,641 | (920 | ) | 17.04 | 21.32 | (4.28 | ) | |||||||||||||||
Divested properties 3 | — | 3,019 | (3,019 | ) | — | 17.48 | (17.48 | ) | |||||||||||||||
$ | 36,367 | $ | 83,123 | $ | (46,756 | ) | $ | 31.45 | $ | 38.84 | $ | (7.39 | ) | ||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
($ per Unit of volume) | |||||||||||||||||||||||
Crude oil (Total revenue and $ per barrel) | $ | 57,985 | $ | 129,840 | $ | (71,855 | ) | $ | 32.87 | $ | 49.62 | $ | (16.75 | ) | |||||||||
NGLs (Total revenue and $ per barrel) | 4,384 | 10,587 | (6,203 | ) | 10.95 | 13.56 | (2.62 | ) | |||||||||||||||
Natural gas (Total revenue and $ per Mcf)) | 4,319 | 15,831 | (11,512 | ) | 1.86 | 2.73 | (0.86 | ) | |||||||||||||||
Total (Total revenue and $ per BOE) | $ | 66,688 | $ | 156,258 | $ | (89,570 | ) | $ | 26.15 | $ | 35.80 | $ | (9.65 | ) | |||||||||
% Change | (57 | )% | |||||||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
($ per BOE) | |||||||||||||||||||||||
South Texas 1 | $ | 63,401 | $ | 144,328 | $ | (80,927 | ) | $ | 27.02 | $ | 38.30 | $ | (11.28 | ) | |||||||||
Mid-Continent and other 2 | 3,287 | 5,589 | (2,302 | ) | 16.09 | 22.33 | (6.24 | ) | |||||||||||||||
Divested properties 3 | — | 6,341 | (6,341 | ) | — | 18.33 | (18.33 | ) | |||||||||||||||
$ | 66,688 | $ | 156,258 | $ | (89,570 | ) | $ | 26.15 | $ | 35.80 | $ | (9.65 | ) |
1 | The 2015 periods include revenues of $1.5 million and $3.1 million attributable to non-core Eagle Ford properties that we sold in October 2015. |
2 | The 2015 periods include revenues of $0.1 million and $0.3 million attributable to certain Mid-Continent properties that we sold in October 2015 as well as revenues of less than $0.1 million and $0.1 million and less than $0.1 million and $0.1 million attributable to the Marcellus Shale for the three and six months ended June 30, 2016 and 2015. |
3 | The 2015 periods include revenues of $3.0 million and $6.3 million attributable to our former East Texas assets that were sold in August 2015. |
Three Months Ended 2016 vs. 2015 | Six Months Ended 2016 vs. 2015 | ||||||||||||||||||||||
Revenue Variance Due to | Revenue Variance Due to | ||||||||||||||||||||||
Volume | Price | Total | Volume | Price | Total | ||||||||||||||||||
Crude oil | $ | (26,999 | ) | $ | (11,654 | ) | $ | (38,653 | ) | $ | (42,321 | ) | $ | (29,534 | ) | $ | (71,855 | ) | |||||
NGL | (2,663 | ) | (97 | ) | (2,760 | ) | (5,155 | ) | (1,048 | ) | (6,203 | ) | |||||||||||
Natural gas | (4,543 | ) | (800 | ) | (5,343 | ) | (10,046 | ) | (1,466 | ) | (11,512 | ) | |||||||||||
$ | (34,205 | ) | $ | (12,551 | ) | $ | (46,756 | ) | $ | (57,522 | ) | $ | (32,048 | ) | $ | (89,570 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Crude oil revenues as reported | $ | 32,019 | $ | 70,672 | $ | (38,653 | ) | $ | 57,985 | $ | 129,840 | $ | (71,855 | ) | |||||||||
Derivative settlements, net | 16,393 | 34,840 | (18,447 | ) | 46,952 | 71,651 | (24,699 | ) | |||||||||||||||
$ | 48,412 | $ | 105,512 | $ | (57,100 | ) | $ | 104,937 | $ | 201,491 | $ | (96,554 | ) | ||||||||||
Crude oil prices per Bbl, as reported | $ | 40.48 | $ | 55.22 | $ | (14.74 | ) | $ | 32.87 | $ | 49.62 | $ | (16.75 | ) | |||||||||
Derivative settlements per Bbl | 20.72 | 27.22 | (6.50 | ) | 26.62 | 27.38 | (0.76 | ) | |||||||||||||||
$ | 61.20 | $ | 82.44 | $ | (21.24 | ) | $ | 59.49 | $ | 77.00 | $ | (17.51 | ) | ||||||||||
Natural gas revenues as reported | $ | 1,917 | $ | 7,260 | $ | (5,343 | ) | $ | 4,319 | $ | 15,831 | $ | (11,512 | ) | |||||||||
Derivative settlements, net | — | — | — | — | 681 | (681 | ) | ||||||||||||||||
$ | 1,917 | $ | 7,260 | $ | (5,343 | ) | $ | 4,319 | $ | 16,512 | $ | (12,193 | ) | ||||||||||
Natural gas prices per Mcf, as reported | $ | 1.79 | $ | 2.54 | $ | (0.75 | ) | $ | 1.86 | $ | 2.73 | $ | (0.86 | ) | |||||||||
Derivative settlements per Mcf | — | — | — | — | 0.12 | (0.12 | ) | ||||||||||||||||
$ | 1.79 | $ | 2.54 | $ | (0.75 | ) | $ | 1.86 | $ | 2.85 | $ | (0.98 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Lease operating | $ | 5,225 | $ | 10,907 | $ | 5,682 | $ | 11,417 | $ | 22,476 | $ | 11,059 | |||||||||||
Per unit of production ($/BOE) | 4.52 | 5.10 | $ | 0.58 | 4.48 | 5.15 | $ | 0.67 | |||||||||||||||
% Change per unit of production | 11 | % | 13 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Gathering, processing and transportation | $ | 4,650 | $ | 6,383 | $ | 1,733 | $ | 8,468 | $ | 13,881 | $ | 5,413 | |||||||||||
Per unit of production ($/BOE) | $ | 4.02 | $ | 2.98 | $ | (1.04 | ) | $ | 3.32 | $ | 3.18 | $ | (0.14 | ) | |||||||||
% Change per unit of production | (35 | )% | (4 | )% |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Production and ad valorem taxes | |||||||||||||||||||||||
Production/severance taxes | $ | 1,184 | $ | 3,811 | $ | 2,627 | $ | 1,380 | $ | 7,057 | $ | 5,677 | |||||||||||
Ad valorem taxes | 979 | 1,156 | 177 | 1,536 | 2,599 | 1,063 | |||||||||||||||||
$ | 2,163 | $ | 4,967 | $ | 2,804 | $ | 2,916 | $ | 9,656 | $ | 6,740 | ||||||||||||
Per unit production ($/BOE) | $ | 1.87 | $ | 2.32 | $ | 0.45 | $ | 1.14 | $ | 2.21 | $ | 1.07 | |||||||||||
% Change per unit of production | 19 | % | 48 | % | |||||||||||||||||||
Production/severance tax rate as a percent of product revenue | 3.3 | % | 4.6 | % | 2.1 | % | 4.5 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Primary general and administrative expenses | $ | 5,669 | $ | 9,408 | $ | 3,739 | $ | 11,569 | $ | 19,973 | $ | 8,404 | |||||||||||
Share-based compensation (liability-classified) | (12 | ) | (214 | ) | (202 | ) | (19 | ) | 165 | 184 | |||||||||||||
Share-based compensation (equity-classified) | (3,320 | ) | 1,116 | 4,436 | (3,922 | ) | 2,106 | 6,028 | |||||||||||||||
Significant special charges: | |||||||||||||||||||||||
Strategic and financial advisory costs | 6,973 | 415 | (6,558 | ) | 18,036 | 462 | (17,574 | ) | |||||||||||||||
Restructuring expenses | 351 | 754 | 403 | 1,099 | 743 | (356 | ) | ||||||||||||||||
Total general and administrative expenses | $ | 9,661 | $ | 11,479 | $ | 1,818 | $ | 26,763 | $ | 23,449 | $ | (3,314 | ) | ||||||||||
Per unit of production ($/BOE) | $ | 8.36 | $ | 5.36 | $ | (3.00 | ) | $ | 10.49 | $ | 5.37 | $ | (5.12 | ) | |||||||||
% Change per unit of production | |||||||||||||||||||||||
Per unit of production excluding all share-based compensation and other significant special charges identified above ($/BOE) | $ | 4.90 | $ | 4.40 | $ | (0.50 | ) | $ | 4.54 | $ | 4.58 | $ | 0.04 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Unproved leasehold amortization | $ | 857 | $ | 2,022 | $ | 1,165 | $ | 1,713 | $ | 4,005 | $ | 2,292 | |||||||||||
Drilling rig termination charges | 936 | 2,040 | 1,104 | 1,426 | 5,665 | 4,239 | |||||||||||||||||
Drilling carry commitment | 1,964 | — | (1,964 | ) | 1,964 | — | (1,964 | ) | |||||||||||||||
Geological and geophysical (seismic) costs | — | 219 | 219 | 33 | 506 | 473 | |||||||||||||||||
Other, primarily delay rentals | 563 | 81 | (482 | ) | 511 | 73 | (438 | ) | |||||||||||||||
$ | 4,320 | $ | 4,362 | $ | 42 | $ | 5,647 | $ | 10,249 | $ | 4,602 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
DD&A expense | $ | 11,746 | $ | 85,416 | $ | 73,670 | $ | 25,558 | $ | 176,206 | $ | 150,648 | |||||||||||
DD&A rate ($/BOE) | $ | 10.16 | $ | 39.91 | $ | 29.75 | $ | 10.02 | $ | 40.37 | $ | 30.35 | |||||||||||
Production | Rates | Total | Production | Rates | Total | ||||||||||||||||||
DD&A variance due to: | $ | 39,297 | $ | 34,373 | $ | 73,670 | $ | 73,227 | $ | 77,421 | $ | 150,648 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Interest on borrowings and related fees | $ | 11,344 | $ | 23,324 | $ | 11,980 | $ | 34,649 | $ | 46,132 | $ | 11,483 | |||||||||||
Amortization of debt issuance costs | 20,920 | 1,176 | (19,744 | ) | 22,189 | 2,280 | (19,909 | ) | |||||||||||||||
Capitalized interest | (43 | ) | (1,477 | ) | (1,434 | ) | (183 | ) | (3,376 | ) | (3,193 | ) | |||||||||||
$ | 32,221 | $ | 23,023 | $ | (9,198 | ) | $ | 56,655 | $ | 45,036 | $ | (11,619 | ) | ||||||||||
Weighted-average debt outstanding | $ | 1,201,154 | $ | 1,286,304 | $ | 1,220,718 | $ | 1,238,233 | |||||||||||||||
Weighted average interest rate | 3.78 | % | 7.25 | % | 5.68 | % | 7.45 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Oil and gas derivatives settled | $ | 16,393 | $ | 34,840 | $ | (18,447 | ) | $ | 46,952 | $ | 72,332 | $ | (25,380 | ) | |||||||||
Oil and gas derivatives gain (loss) | (38,152 | ) | (50,335 | ) | 12,183 | (64,219 | ) | (64,960 | ) | 741 | |||||||||||||
$ | (21,759 | ) | $ | (15,495 | ) | $ | (6,264 | ) | $ | (17,267 | ) | $ | 7,372 | $ | (24,639 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | 2016 vs. | June 30, | 2016 vs. | ||||||||||||||||||||
2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Favorable (unfavorable) | Favorable (unfavorable) | ||||||||||||||||||||||
Income tax expense | $ | — | $ | 89 | $ | (89 | ) | $ | — | $ | 230 | $ | (230 | ) | |||||||||
Effective tax rate | — | % | 0.1 | % | — | % | 0.2 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Average | ||||||||||||||||||
Volume Per | Weighted Average Price | Fair Value | ||||||||||||||||
Instrument | Day | Floor/Swap | Ceiling | Asset | Liability | |||||||||||||
Crude Oil: | (barrels) | ($/barrel) | ||||||||||||||||
Third quarter 2016 | Swaps | 5,940 | $ | 47.69 | $ | — | $ | 807 | ||||||||||
Fourth quarter 2016 | Swaps | 5,940 | $ | 47.69 | — | 1,628 | ||||||||||||
First quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,178 | ||||||||||||
Second quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,390 | ||||||||||||
Third quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,551 | ||||||||||||
Fourth quarter 2017 | Swaps | 4,408 | $ | 48.62 | — | 1,721 | ||||||||||||
First quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,252 | ||||||||||||
Second quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,329 | ||||||||||||
Third quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,410 | ||||||||||||
Fourth quarter 2018 | Swaps | 3,476 | $ | 49.12 | — | 1,485 | ||||||||||||
First quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,056 | ||||||||||||
Second quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,098 | ||||||||||||
Third quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,142 | ||||||||||||
Fourth quarter 2019 | Swaps | 2,916 | $ | 49.90 | — | 1,195 |
Change of $10.00 per Bbl of Crude Oil or $1.00 per MMBtu of Natural Gas ($ in millions) | |||||||
Increase | Decrease | ||||||
Effect on the fair value of crude oil derivatives 1 | $ | (50.9 | ) | $ | 48.6 | ||
Effect on the remainder of 2016 operating income, excluding crude oil derivatives 2 | $ | 10.0 | $ | (10.0 | ) | ||
Effect on the remainder of 2016 operating income, excluding natural gas derivatives 2 | $ | 1.6 | $ | (1.6 | ) |
1 | Based on derivatives outstanding as of June 30, 2016. |
2 | Based on a forecast which assumes limited drilling during the remainder of 2016. These sensitivities are subject to significant change. |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
• | our ability to prosecute, confirm and consummate a plan of reorganization with respect to the Chapter 11 cases; |
• | the significantly high costs of bankruptcy proceedings and related fees; |
• | our ability to obtain sufficient financing to allow us to emerge from bankruptcy and execute our business plan post-emergence; |
• | negative events or publicity adversely affecting our ability to maintain our relationships with our suppliers, service providers, customers, employees, and other third parties; |
• | our ability to maintain contracts that are critical to our operations; |
• | our ability to execute our business plan in the current depressed commodity price environment; |
• | our ability to attract, motivate and retain key employees; |
• | the ability of third parties to seek and obtain court approval to terminate contracts and other agreements with us; |
• | the ability of third parties to seek and obtain court approval to convert the Chapter 11 cases to Chapter 7 cases; and |
• | the actions and decisions of our creditors and other third parties who have interests in our Chapter 11 cases that may be inconsistent with our plans |
Item 6. | Exhibits |
(10.1) | Restructuring Support Agreement, dated May 10, 2016 (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(10.2) | Backstop Commitment Agreement, dated May 10, 2016 (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(10.3) | Debtor-In-Possession Credit Agreement, dated May 11, 2016 (incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(10.4) | Hartman Employment Agreement, dated May 9, 2016 (incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(10.5) | Brooks Employment Agreement, dated May 9, 2016 (incorporated by reference to Exhibit 10.5 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(10.6) | Snyder Employment Agreement, dated May 9, 2016 (incorporated by reference to Exhibit 10.6 to Registrant’s Current Report on Form 8-K filed on May 13, 2016). |
(12.1) | Statement of Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends Calculation. |
(31.1) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
(31.2) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
(32.1) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
(32.2) | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
(101.INS) | XBRL Instance Document |
(101.SCH) | XBRL Taxonomy Extension Schema Document |
(101.CAL) | XBRL Taxonomy Extension Calculation Linkbase Document |
(101.DEF) | XBRL Taxonomy Extension Definition Linkbase Document |
(101.LAB) | XBRL Taxonomy Extension Label Linkbase Document |
(101.PRE) | XBRL Taxonomy Extension Presentation Linkbase Document |
PENN VIRGINIA CORPORATION | ||
By: | /s/ STEVEN A. HARTMAN | |
Steven A. Hartman | ||
Senior Vice President and Chief Financial Officer | ||
July 29, 2016 | By: | /s/ JOAN C. SONNEN |
Joan C. Sonnen | ||
Vice President, Chief Accounting Officer and Controller | ||
(Principal Accounting Officer) |
Six Months June 30, | Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Loss from continuing operations before income taxes | $ | (95,453 | ) | $ | (1,588,332 | ) | $ | (541,270 | ) | $ | (220,766 | ) | $ | (173,291 | ) | $ | (221,070 | ) | |||||
Fixed charges | 60,282 | 122,505 | 121,608 | 97,903 | 66,616 | 62,002 | |||||||||||||||||
Capitalized interest | (183 | ) | (6,288 | ) | (7,232 | ) | (5,266 | ) | (803 | ) | (1,983 | ) | |||||||||||
Preferred stock dividend requirements | (2,820 | ) | (22,866 | ) | (22,661 | ) | (10,647 | ) | (2,793 | ) | — | ||||||||||||
$ | (38,174 | ) | $ | (1,494,981 | ) | $ | (449,555 | ) | $ | (138,776 | ) | $ | (110,271 | ) | $ | (161,051 | ) | ||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense | $ | 56,655 | $ | 90,951 | $ | 88,831 | $ | 78,841 | $ | 59,339 | $ | 56,216 | |||||||||||
Capitalized interest | 183 | 6,288 | 7,232 | 5,266 | 803 | 1,983 | |||||||||||||||||
Rent factor | 624 | 2,400 | 2,884 | 3,149 | 3,681 | 3,803 | |||||||||||||||||
Preferred stock dividend requirements | 2,820 | 22,866 | 22,661 | 10,647 | 2,793 | — | |||||||||||||||||
$ | 60,282 | $ | 122,505 | $ | 121,608 | $ | 97,903 | $ | 66,616 | $ | 62,002 | ||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends 1 | — | — | — | — | — | — | |||||||||||||||||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ EDWARD B. CLOUES, II | |
Edward B. Cloues, II | |
Chairman of the Board and Chief Executive Officer |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ STEVEN A. HARTMAN | |
Steven A. Hartman | |
Senior Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ EDWARD B. CLOUES, II | |
Edward B. Cloues, II | |
Chairman of the Board and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ STEVEN A. HARTMAN | |
Steven A. Hartman | |
Senior Vice President and Chief Financial Officer |
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Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 25, 2016 |
|
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PVAHQ | |
Entity Registrant Name | PENN VIRGINIA CORP | |
Entity Central Index Key | 0000077159 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 88,217,880 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||
Revenues | ||||||
Crude oil | $ 32,019 | $ 70,672 | $ 57,985 | $ 129,840 | ||
Natural gas liquids (NGLs) | 2,431 | 5,191 | 4,384 | 10,587 | ||
Natural gas | 1,917 | 7,260 | 4,319 | 15,831 | ||
Gain (loss) on sales of property and equipment, net | 910 | 66 | 757 | (25) | ||
Other, net | (125) | 427 | 204 | 1,910 | ||
Total revenues | 37,152 | 83,616 | 67,649 | 158,143 | ||
Operating expenses | ||||||
Lease operating | 5,225 | 10,907 | 11,417 | 22,476 | ||
Gathering, processing and transportation | 4,650 | 6,383 | 8,468 | 13,881 | ||
Production and ad valorem taxes | 2,163 | 4,967 | 2,916 | 9,656 | ||
General and administrative | 9,662 | 11,479 | 26,764 | 23,449 | ||
Exploration | 4,320 | 4,362 | 5,647 | 10,249 | ||
Depreciation, depletion and amortization | 11,746 | 85,416 | 25,558 | 176,206 | ||
Asset Impairment Charges | 0 | 1,084 | 0 | 1,084 | ||
Total operating expenses | 37,766 | 124,598 | 80,770 | 257,001 | ||
Operating loss | (614) | (40,982) | (13,121) | (98,858) | ||
Other income (expense) | ||||||
Interest expense | (32,221) | (23,023) | (56,655) | (45,036) | ||
Reorganization Items | (7,380) | 0 | (7,380) | 0 | ||
Derivatives | (21,759) | (15,495) | (17,267) | 7,372 | ||
Other | (6) | (540) | (1,030) | (542) | ||
Reorganization items, net | (61,980) | (80,040) | (95,453) | (137,064) | ||
Income tax expense | 0 | (89) | 0 | (230) | ||
Net loss | (61,980) | (80,129) | (95,453) | (137,294) | ||
Preferred stock dividends | [1] | (2,820) | (6,067) | (5,972) | (12,134) | |
Net loss attributable to common shareholders | $ (64,800) | $ (86,196) | $ (101,425) | $ (149,428) | ||
Net loss per share: | ||||||
Basic (in dollars per share) | $ (0.73) | $ (1.19) | $ (1.16) | $ (2.07) | ||
Diluted (in dollars per share) | $ (0.73) | $ (1.19) | $ (1.16) | $ (2.07) | ||
Weighted average shares outstanding – basic | 89,051 | 72,398 | 87,496 | 72,330 | ||
Weighted average shares outstanding – diluted | 89,051 | 72,398 | 87,496 | 72,330 | ||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (61,980) | $ (80,129) | $ (95,453) | $ (137,294) |
Other comprehensive loss: | ||||
Change in pension and postretirement obligations, net of tax of $(5) and $(11) in 2015 | (11) | (10) | (38) | (21) |
Total Other Comprehensive Income (Loss), Net of Tax | (11) | (10) | (38) | (21) |
Comprehensive loss | $ (61,991) | $ (80,139) | $ (95,491) | $ (137,315) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Change in pension and postretirement obligations, net of tax | $ 0 | $ (5) | $ 0 | $ (11) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Stockholders' Equity [Line Items] | ||
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, redemption value per share (in dollars per share) | $ 10,000 | $ 10,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 228,000,000 | 228,000,000 |
Common stock, shares issued | 88,217,880 | 81,252,676 |
Treasury stock, shares | 455,689 | 455,689 |
Series A Preferred Stock | ||
Schedule of Stockholders' Equity [Line Items] | ||
Preferred stock, issued | 3,864 | 3,915 |
Series B Preferred Stock | ||
Schedule of Stockholders' Equity [Line Items] | ||
Preferred stock, issued | 14,933 | 27,551 |
Nature of Operations |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Penn Virginia Corporation (together with its consolidated subsidiaries, unless the context otherwise requires, “Penn Virginia,” the “Company,” “we,” “us” or “our”) is an independent oil and gas company engaged in the onshore exploration, development and production of oil, natural gas liquids (“NGLs”) and natural gas. Our current operations consist primarily of operating our producing wells in the Eagle Ford Shale (the “Eagle Ford”) in South Texas. Our operations are substantially concentrated with over 90 percent of our production, revenues and capital expenditures being attributable to this region. We also have less significant operations in Oklahoma, primarily in the Granite Wash. |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited Condensed Consolidated Financial Statements include the accounts of Penn Virginia and all of our subsidiaries. Intercompany balances and transactions have been eliminated. Our Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparation of these statements involves the use of estimates and judgments where appropriate. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of our Condensed Consolidated Financial Statements have been included. Our Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. Operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Certain amounts for the corresponding 2015 periods have been reclassified to conform to the current year presentation. These reclassifications have no impact on our previously reported results of operations, balance sheets or cash flows. Going Concern Presumption Our unaudited Condensed Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and other commitments in the normal course of business. As discussed in further detail in Note 3 below, we have been operating as a “debtor-in-possession” since May 12, 2016. There are certain inherent risks associated with our ongoing bankruptcy proceedings. Accordingly, there can be no assurance that we will emerge from bankruptcy as a “going concern.” Furthermore, the realization of our assets and satisfaction of our liabilities and other commitments, without substantial adjustments, as well as a change in ownership, are also subject to significant uncertainty. We have applied the relevant guidance provided in U.S. GAAP with respect to the accounting and financial statement disclosures for entities that have filed petitions with the bankruptcy court and expect to reorganize as going concerns in preparing our Condensed Consolidated Financial Statements and Notes. That guidance requires that, for periods subsequent to our bankruptcy filing on May 12, 2016, or post-petition periods, certain transactions and events that are directly related to our ongoing reorganization be distinguished from our normal business operations. Accordingly, certain revenues, expenses, realized gains and losses and provisions that are realized or incurred in the bankruptcy proceedings are included in “Reorganization items, net” on our Condensed Consolidated Statement of Operations for the periods ended June 30, 2016. In addition, certain liabilities and other obligations incurred prior to May 12, 2016, or pre-petition periods, have been classified in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016. These liabilities have been reported at estimated amounts that we believe will be allowed as claims by the bankruptcy court; however, they may ultimately be settled for lesser or greater amounts. Further detail for our “Reorganization items, net” and “Liabilities subject to compromise” are provided in Note 3 below. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016–13, Measurement of Credit Losses on Financial Instruments (“ASU 2016–13”), which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016–13 is required to be adopted using the modified retrospective method by January 1, 2020, with early adoption permitted. ASU 2016–13 will have applicability to our accounts receivable portfolio, particularly those receivables attributable to our joint interest partners. At this time, we do not anticipate that the adoption of ASU 2016–13 will have a significant impact on our Consolidated Financial Statements and related disclosures; however, we are currently in the early stages of evaluating the requirements and the period for which we will adopt the standard. In March 2016, the FASB issued ASU 2016–09, Improvements to Employee Share-based Payment Accounting (“ASU 2016–09”), which simplifies the accounting for share-based compensation. The areas for simplification that are applicable to publicly held companies are as follows: (i) Accounting for Income Taxes, (ii) Classification of Excess Tax Benefits on the Statement of Cash Flows, (iii) Forfeitures, (iv) Minimum Statutory Tax Withholding Requirements and (v) Classification of Employee Taxes Paid on the Statement of Cash Flows when an employer withholds shares for tax-withholding purposes. The effective date of ASU 2016–09 is January 1, 2017, with early adoption permitted. As discussed in detail in Notes 3 and 15 below, our reorganization plans anticipate that all of our existing share-based compensation plans will be canceled. Accordingly, we are currently planning to adopt ASU 2016–09 upon our emergence from bankruptcy which is anticipated in the third quarter of 2016. In February 2016, the FASB issued ASU 2016–02, Leases (“ASU 2016–02”), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with terms of more than twelve months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. ASU 2016–02 also will require disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The effective date of ASU 2016–02 is January 1, 2019, with early adoption permitted. We are continuing to evaluate the effect that ASU 2016–02 will have on our Consolidated Financial Statements and related disclosures as well as the period for which we will adopt the standard. In May 2014, the FASB issued ASU 2014–09, Revenues from Contracts with Customers (“ASU 2014–09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014–09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. While traditional commodity sales transactions, property conveyances and joint interest arrangements in the oil and gas industry are not expected to be significantly impacted by ASU 2014–09, natural gas imbalances and other non-product revenues, including our ancillary marketing, gathering and transportation and water service revenues could be affected. Accordingly, we are continuing to evaluate the effect that ASU 2014–09 will have on our Consolidated Financial Statements and related disclosures, with a more focused analysis on these other revenue sources. We have not yet selected a transition method nor have we determined the period for which we will adopt the new standard. Subsequent Events Management has evaluated all of our activities through the issuance date of our Condensed Consolidated Financial Statements and has concluded that no subsequent events have occurred that would require recognition in our Condensed Consolidated Financial Statements or disclosure in the Notes thereto. |
Chapter 11 Proceedings Chapter 11 Proceedings |
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Chapter 11 Proceedings | Chapter 11 Proceedings On May 12, 2016 (the “Petition Date”), we and eight of our subsidiaries including Penn Virginia Holding Corp.; Penn Virginia MC Corporation; Penn Virginia MC Energy L.L.C.; Penn Virginia MC Operating Company L.L.C.; Penn Virginia Oil & Gas Corporation; Penn Virginia Oil & Gas GP LLC; Penn Virginia Oil & Gas LP LLC; and Penn Virginia Oil & Gas, L.P. (collectively the “Chapter 11 Subsidiaries”) filed voluntary petitions (In re Penn Virginia Corporation, et al, Case No. 16-32395) seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”). Prior to the Petition Date we had engaged Kirkland & Ellis LLP (“K&E”), Jefferies LLC (“Jefferies”) and Alvarez and Marsal North America, LLC (“A&M”) and appointed R. Seth Bullock, Managing Director at A&M, to act as our Chief Restructuring Officer in our efforts to restructure and evaluate various strategic alternatives. In connection with our bankruptcy proceedings, we have continued our engagements with these professional service firms. Debtors-In-Possession. We and the Chapter 11 Subsidiaries are currently operating our business as debtors-in-possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has granted all “first day” motions filed by us and the Chapter 11 Subsidiaries, which were designed primarily to minimize the impact of the Chapter 11 proceedings on our normal day-to-day operations, our customers, regulatory agencies, including taxing authorities, and employees. As a result, we are not only able to conduct normal business activities and pay all associated obligations for the post-petition period, we are also authorized to pay and have paid (subject to limitations applicable to payments of certain pre-petition obligations) pre-petition employee wages and benefits, pre-petition amounts owed to certain lienholders, amounts due to taxing authorities for production and other related taxes and funds belonging to third parties, including royalty and working interest holders. During the pendency of the Chapter 11 case, all transactions outside the ordinary course of our business require the prior approval of the Bankruptcy Court. Automatic Stay. Subject to certain specific exceptions under the Bankruptcy Code, the Chapter 11 filings automatically stayed most judicial or administrative actions against us and the Chapter 11 Subsidiaries as well as efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. As a result, for example, most creditor actions to obtain possession of property from us or any of the Chapter 11 Subsidiaries, or to create, perfect or enforce any lien against our property or any of the Chapter 11 Subsidiaries, or to collect on or otherwise exercise rights or remedies with respect to a pre-petition claim are stayed. Restructuring Support Agreement. Immediately prior to the Petition Date, the holders (the “Ad Hoc Committee”) of approximately 86 percent of the $1,075 million principal amount of our 7.25% Senior Notes due 2019 (the “2019 Senior Notes”) and 8.50% Senior Notes due 2020 (the “2020 Senior Notes” and, together with the 2019 Senior Notes, the “Senior Notes”) agreed, pursuant to a restructuring support agreement (the “RSA”), to support a plan under which all of our Senior Notes are converted to equity in the reorganized company. Under the RSA, holders of the Senior Notes and certain unsecured creditors are to receive their pro rata share of 100 percent of the reorganized company’s common stock (“New Common Stock”) in exchange for their claims, subject only to dilution as a result of a proposed new management incentive program, any fees payable in New Common Stock under the terms of the Backstop Commitment Agreement (see “Backstop Commitment Agreement” below) and New Common Stock issued in the Rights Offering (see “Rights Offering” below). The RSA includes an agreed timeline for the Chapter 11 proceedings that, if met, would result in our emergence from bankruptcy during the third quarter of 2016. Creditors Committee. On May 25, 2016, the United States Trustee for the Eastern District of Virginia (the “U.S. Trustee”) appointed the Official Committee of Unsecured Claimholders (the “UCC”) pursuant to section 1102 of the Bankruptcy Code. In addition to professional fees and other costs incurred that are attributable to the services provided by K&E, Jefferies, A&M and other representatives, we are responsible for the reasonable costs, as approved by the Bankruptcy Court, incurred by the UCC, the Ad Hoc Committee and the holders (the “RBL Lenders”) of 100 percent of the claims attributable to our pre-petition revolving credit agreement (as amended, the “RBL”), during the course of the Chapter 11 proceedings. These post-petition costs, as well as administrative fees charged by the U.S. Trustee, have been reported in “Reorganization items, net” in our Condensed Consolidated Statement of Operations as described above. Similar costs that were incurred during the pre-petition periods have been reported in “General and administrative” expenses. Ad Hoc Equity Committee. In June 2016, a group of holders of approximately 3 percent of our common stock (the “Ad Hoc Equity Holders”) filed a motion with the U.S. Trustee requesting that the U.S. Trustee appoint an official committee of equity holders, which the U.S. Trustee denied. Subsequently, in July 2016, the Ad Hoc Equity Holders filed with the Bankruptcy Court, among other motions, a motion requesting that the Bankruptcy Court appoint an official committee of equity holders. A hearing on this motion is scheduled for August 4, 2016. Plan of Reorganization. On June 28, 2016, we and the Chapter 11 Subsidiaries filed with the Bankruptcy Court the First Amended Joint Chapter 11 Plan of Reorganization of Penn Virginia Corporation and its Debtor Affiliates (the “Plan”), as well as the Disclosure Statement for the First Amended Joint Chapter 11 Plan of Penn Virginia Corporation and its Debtor Affiliates (the “Disclosure Statement”). The Bankruptcy Court has authorized us to solicit acceptances for the Plan and approved the Disclosure Statement and other related solicitation materials and procedures necessary to solicit approval or objections to the Plan. We are currently in the process of soliciting votes with respect to the Plan. The Plan is supported by us, the RBL Lenders, the Ad Hoc Committee and the UCC. A hearing to consider confirmation of the Plan is scheduled to be held on August 11, 2016 in the Bankruptcy Court (the “Confirmation Hearing”). If the Plan is ultimately confirmed by the Bankruptcy Court, we and the Chapter 11 Subsidiaries would exit bankruptcy pursuant to the terms of the Plan. Under the Plan, the claims against and interests in us and the Chapter 11 Subsidiaries are grouped into classes based, in part, on their respective priority. The Plan provides that, upon emergence from bankruptcy:
The Plan also provides that the new board of directors of the reorganized company will be announced at or before the Confirmation Hearing. The Plan is subject to acceptance by certain holders of claims against us and the Chapter 11 Subsidiaries and confirmation by the Bankruptcy Court. The Plan is accepted by a class of claims entitled to vote if at least one-half in number and two-thirds in dollar amount of claims actually voting in the class have voted to accept the Plan. Under certain circumstances set forth in the Bankruptcy Code, the Bankruptcy Court may confirm a plan even if such plan has not been accepted by all impaired classes of claims and equity interests. In particular, a plan may be compelled on a rejecting class if the proponent of the plan demonstrates, among other things, that (1) no class junior to the rejecting class is receiving or retaining property under the plan and (2) no class of claims or interests senior to the rejecting class is being paid more than in full. Executory Contracts. Subject to certain exceptions, under the Bankruptcy Code, we and the Chapter 11 Subsidiaries may assume, assign, or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and fulfillment of certain other conditions. The rejection of an executory contract or unexpired lease is generally treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves us and the Chapter 11 Subsidiaries of performing their future obligations under such executory contract or unexpired lease but may give rise to a general unsecured claim against us or the applicable Chapter 11 Subsidiaries for damages caused by such rejection. The assumption of an executory contract or unexpired lease generally requires us and the Chapter 11 Subsidiaries to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Any description of the treatment of an executory contract or unexpired lease with us or any of the Chapter 11 Subsidiaries, including any description of the obligations under any such executory contract or unexpired lease, is qualified by and subject to any rights we have with respect to executory contracts and unexpired leases under the Bankruptcy Code. On July 21, 2016, we and the Chapter 11 Subsidiaries filed a motion (the “9019 Motion”) to approve a settlement with Republic Midstream and Republic Midstream Marketing, LLC (“Republic Marketing” and, together with Republic Midstream, collectively, “Republic”) pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure and to authorize the assumption of certain amended agreements with Republic pursuant to section 365 of the Bankruptcy Code. As set forth in detail in the 9019 Motion, the settlement with Republic provides for the material modification of the agreements with Republic and certain claims, guarantees, and payments in favor of Republic. The hearing to consider the 9019 Motion is scheduled for August 4, 2016. Potential Claims. We and the Chapter 11 Subsidiaries have filed with the Bankruptcy Court Schedules and Statements setting forth, among other things, our and each of the Chapter 11 Subsidiaries’ assets and liabilities. The Schedules and Statements, which are subject to the assumptions disclosed in connection therewith, may be subject to further amendment or modification. Certain holders of pre-petition claims were required to file proofs of claim by June 30, 2016 (the “Bar Date”). Certain other parties, including taxing authorities and other governmental agencies, are provided additional time beyond the Bar Date to file proofs of claim. Claims received by the Bar Date are currently in the process of being reviewed and reconciled with our and the Chapter 11 Subsidiaries’ books and records. Differences between amounts scheduled by us and the Chapter 11 Subsidiaries and claims by creditors will be investigated and resolved in connection with the claims resolution process. In light of the expected number of creditors, the claims resolution process may take considerable time to complete and may continue after our emergence from bankruptcy. Accordingly, the ultimate number and amount of allowed claims is not presently known, nor can the ultimate recovery with respect to allowed claims be presently ascertained. Chapter 11 Filing Impact on Creditors and Shareholders. Under the priority requirements established by the Bankruptcy Code, unless creditors agree otherwise, pre-petition liabilities to creditors and post-petition liabilities must be satisfied in full before the holders of our existing preferred stock and common stock are entitled to receive any distribution or retain any property under a plan of reorganization. The ultimate recovery to creditors, if any, will not be determined until confirmation and implementation of the Plan. The outcome of the Chapter 11 proceedings remains uncertain at this time and, as a result, we cannot accurately estimate the amounts or value of distributions that creditors may receive. We expect that our preferred stock and common stock will receive no distribution with respect to their interests. Debtor-In-Possession Financing. In connection with the pre-petition negotiations of the RSA, certain holders of the RBL agreed to provide a DIP Facility to us and the Chapter 11 Subsidiaries pursuant to the terms of a DIP credit agreement. The DIP Facility was approved by the Bankruptcy Court and provides for a multi-draw term loan in the aggregate amount of up to $25 million. Pursuant to the Plan, any amounts outstanding under the DIP Facility will be paid in full in cash upon emergence. As of June 30, 2016, we have not drawn any amounts from the DIP Facility, and we do not expect to do so prior to emergence. Backstop Commitment Agreement. On May 10, 2016, we entered into a backstop commitment agreement (the “Backstop Commitment Agreement”) with the parties thereto (collectively, the “Backstop Parties”), pursuant to which the Backstop Parties, which are holders of the Senior Notes, will provide a $50.0 million commitment to backstop the proposed Rights Offering to be conducted in connection with the Plan. Under the Backstop Commitment Agreement, we have agreed to pay the Backstop Parties, on the closing date of the transactions contemplated by the Backstop Commitment Agreement, a commitment premium equal to 6.0 percent of the Rights Offering Amount (as defined below) (the “Commitment Premium”). If the transactions contemplated by the Backstop Commitment Agreement are consummated, the Commitment Premium will be payable in shares of common stock of the reorganized company. We will also be required to pay, in cash, a termination fee equal to 4.0 percent of the Rights Offering Amount upon the occurrence of certain termination events as set forth in the Backstop Commitment Agreement. Pursuant to the Backstop Commitment Agreement, we will also be required to (A) reimburse the Backstop Parties (i) for reasonable and documented fees and expenses of counsel, consultants and a financial advisor, and any other advisors or consultants as may be reasonably determined by the holder of our Senior Notes who are party to the RSA (the “Consenting Noteholders”) and the Backstop Parties, and (ii) for filing fees, if any, required by antitrust laws and reasonable and documented expenses in connection with the transactions contemplated by the Backstop Commitment Agreement and (B) indemnify the Backstop Parties under certain circumstances for losses arising out of the Backstop Commitment Agreement, the Plan and the transactions contemplated thereby. Rights Offering. In accordance with the Plan, the Backstop Commitment Agreement, and the proposed procedures for the conduct of the Rights Offering (the “Rights Offering Procedures”), we will offer eligible creditors, including the Backstop Parties, shares of New Common Stock of the reorganized company upon emergence from Chapter 11 for an aggregate purchase price of $50 million (the “Rights Offering Amount”). Pursuant to the Backstop Commitment Agreement, the Backstop Parties have agreed to purchase all shares of New Common Stock that are not duly subscribed for pursuant to the Rights Offering at a per share purchase price equal to $45,100,000 divided by the total number of shares of common stock of the reorganized company outstanding as of emergence (without giving effect to the common stock issued or issuable under the Rights Offering or in respect of the Commitment Premium). The rights to purchase common stock in the Rights Offering, any shares issued upon exercise thereof, and all shares issued to the Backstop Parties pursuant to the Backstop Commitment Agreement, will be issued in reliance upon the exemption from registration under the Securities Act of 1933 (the “Securities Act”) provided by Section 4(a)(2) thereof and/or Regulation D thereunder. As a condition to the closing of the transactions contemplated by the Backstop Commitment Agreement, we will enter into a registration rights agreement with certain of the Backstop Parties entitling such Backstop Parties to request that we register their securities for sale under the Securities Act at various times. The Backstop Commitment Agreement and Rights Offering Procedures have been filed with, and are subject to the approval of, the Bankruptcy Court. The Backstop Parties’ commitments to backstop the Rights Offering, and the other transactions contemplated by the Backstop Commitment Agreement, are conditioned upon the satisfaction of all conditions to the effectiveness of the Plan, and other applicable conditions precedent set forth in the Backstop Commitment Agreement. The issuances of common stock pursuant to the Rights Offering and the Backstop Commitment Agreement are conditioned upon, among other things, confirmation of the Plan by the Bankruptcy Court, and will be effective upon our emergence from Chapter 11. Restrictions on Trading of Our Equity Securities to Protect Our Use of Net Operating Losses. The Bankruptcy Court has issued a final order pursuant to Sections 105(a), 362(a)(3) and 541 of the Bankruptcy Code enabling us and the Chapter 11 Subsidiaries to avoid limitations on the use of our tax net operating loss carryforwards and certain other tax attributes by imposing certain notice procedures and transfer restrictions on the trading of our equity securities. In general, the order applies to any person that, directly or indirectly, beneficially owns (or would beneficially own as a result of a proposed transfer) at least 4.50 percent of either our outstanding common stock or preferred stock (a “Substantial Stockholder”), and requires that each Substantial Stockholder file with the Bankruptcy Court and serve us with notice of such status. Under the order, prior to any proposed acquisition or disposition of equity securities that would result in an increase or decrease in the amount of our equity securities owned by a Substantial Stockholder, or that would result in a person or entity becoming a Substantial Stockholder, such person or entity is required to file with the Bankruptcy Court and notify us of such acquisition or disposition. We have the right to seek an injunction from the Bankruptcy Court to prevent certain acquisitions or sales of our common stock or preferred stock if the acquisition or sale would pose a material risk of adversely affecting our ability to utilize such tax attributes. Risks Associated with Chapter 11 Proceedings. For the duration of our Chapter 11 proceedings, our operations and our ability to develop and execute our business plan are subject to the risks and uncertainties associated with the Chapter 11 process as described in Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q. Because of these risks and uncertainties, the description of our operations, properties and capital plans may not accurately reflect our operations, properties and capital plans following the Chapter 11 process. Liabilities Subject to Compromise. As described above in Note 2, our Condensed Consolidated Balance Sheet as of June 30, 2016 includes “Liabilities subject to compromise,” which represent liabilities that we anticipate will be allowed as claims in our bankruptcy case. These amounts include amounts related to the anticipated rejection of various executory contracts and unexpired leases. Additional amounts may be included in “Liabilities subject to compromise” in future periods if additional executory contracts and unexpired leases are rejected. Conversely, to the extent that such executory contracts or unexpired leases are not rejected and are instead assumed, certain liabilities characterized as subject to compromise may be converted to post-petition liabilities. Because the nature of many of the potential claims has not yet been finally determined at this time, the magnitude of such claims is not reasonably estimable at this time. Such claims or changes in claims may be material. Differences between liabilities we have included in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016 and the claims filed by the Bar Date, or to be filed subsequently, will be investigated and resolved in connection with the claims resolution process. We will continue to evaluate these liabilities throughout the Chapter 11 proceedings and adjust amounts as necessary. Such adjustments may be material. The following table summarizes the components of “Liabilities subject to compromise” included on our Consolidated Balance Sheet as of June 30, 2016 (in thousands):
Reorganization Items. As described above in Note 2, our Condensed Consolidated Statements of Operations for the periods ended June 30, 2016 includes “Reorganization items, net,” which reflects costs associated with the Chapter 11 proceedings, principally professional fees, and the costs associated with the DIP Facility. In future periods and in connection with the claims resolution process, we anticipate recording adjustments to “Liabilities subject to compromise” which will be included as a component of “Reorganization items, net,” as necessary. The following table summarizes the components included in “Reorganization items, net” in our Condensed Consolidated Statements of Operations for the periods ended June 30, 2016 (in thous |
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Acquisitions and Divestitures [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Undeveloped Eagle Ford Acreage In August 2014, we acquired undeveloped acreage in the Eagle Ford in Lavaca County, Texas for a purchase price of $45.6 million, of which $34.9 million was paid at closing and the balance of $10.7 million was to be paid over three years as a drilling carry. We recorded $2.0 million under the drilling carry commitment in June 2016 as a component of exploration expense; however, the corresponding obligation has been included in “Liabilities subject to compromise” on our Consolidated Balance Sheet as of June 30, 2016. Divestitures South Texas Oil Gathering System Construction Rights and Natural Gas Gathering and Gas Lift Assets In July 2014, we sold the rights to construct a crude oil gathering and intermediate transportation system in South Texas to Republic Midstream and in January 2014, we sold our South Texas natural gas gathering and gas lift assets to American Midstream Partners, LP (“AMID”). Concurrent with these sales, we entered into long-term agreements with Republic Midstream and AMID to provide us crude oil gathering and intermediate transportation services and natural gas gathering, compression and gas lift services, respectively, for a substantial portion of our future South Texas production. We realized significant gains and recognized a substantial portion thereof upon the closing of these transactions in 2014. With respect to the Republic Midstream transaction, $75.7 million of the total gain was deferred and is being recognized over a twenty-five year period which began in March 2016. We amortized $0.9 million of the deferred gain during the six months ended June 30, 2016. As of June 30, 2016, $3.0 million of the remaining deferred gain is included as a component of “Accounts payable and accrued liabilities” and $71.8 million, representing the remaining noncurrent portion, is included as a component of “Other liabilities” on our Condensed Consolidated Balance Sheets. With respect to the AMID transaction, $10.6 million of the total gain was deferred and is being recognized over a twenty-five year period which began in January 2014. We amortized $0.2 million of the deferred gain during each of the six months ended June 30, 2016 and 2015. As of June 30, 2016, $0.4 million of the remaining deferred gain was included as a component of “Accounts payable and accrued liabilities” and $9.1 million, representing the noncurrent portion, was included as a component of “Other liabilities” on our Condensed Consolidated Balance Sheets. |
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Accounts Receivable and Major Customers | Accounts Receivable and Major Customers The following table summarizes our accounts receivable by type as of the dates presented:
For the six months ended June 30, 2016, three customers accounted for $62.2 million, or approximately 93%, of our consolidated product revenues. The revenues generated from these customers during the six months ended June 30, 2016 were $32.1 million, $16.2 million and $13.9 million or 48%, 24% and 21% of the consolidated total, respectively. As of June 30, 2016, $20.5 million, or approximately 91%, of our consolidated accounts receivable from customers was related to these customers. For the six months ended June 30, 2015, three customers accounted for $96.7 million, or approximately 62%, of our consolidated product revenues. The revenues generated from these customers during the six months ended June 30, 2015 were $41.2 million, $36.1 million, and $19.4 million, or approximately 26%, 23% and 13% of the consolidated total, respectively. As of December 31, 2015, $21.1 million, or approximately 90%, of our consolidated accounts receivable from customers was related to these customers. No significant uncertainties exist related to the collectability of amounts owed to us by any of these customers. |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We utilize derivative instruments to mitigate our financial exposure to crude oil and natural gas price volatility. Our derivative instruments are not formally designated as hedges in the context of U.S. GAAP. Commodity Derivatives We typically utilize collars and swaps, which are placed with financial institutions that we believe are acceptable credit risks, to hedge against the variability in cash flows associated with anticipated sales of our future oil and gas production. While the use of derivative instruments limits the risk of adverse price movements, such use may also limit future revenues from favorable price movements. The counterparty to a collar or swap contract is required to make a payment to us if the settlement price for any settlement period is below the floor or swap price for such contract. We are required to make a payment to the counterparty if the settlement price for any settlement period is above the ceiling or swap price for such contract. Neither party is required to make a payment to the other party if the settlement price for any settlement period is equal to or greater than the floor price and equal to or less than the ceiling price for such contract. We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for NYMEX Henry Hub gas and West Texas Intermediate crude oil closing prices as of the end of the reporting period. The discounted cash flows utilize discount rates adjusted for the credit risk of our counterparties if the derivative is in an asset position and our own credit risk if the derivative is in a liability position. We terminated all of our pre-petition derivative contracts for $22.9 million, $22.6 million and $17.5 million and reduced our amounts outstanding under the RBL by $22.9 million, $16.6 million and $12.5 million in March 2016, April 2016 and May 2016, respectively. In connection with these transactions, the counterparties to the derivative contracts, which are also affiliates of lenders under the RBL, transferred the cash proceeds that were used for RBL repayments directly to the administrative agent under the RBL. Accordingly, all of these RBL repayments have been presented as non-cash financing activities on our Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2016. On May 13, 2016, the Bankruptcy Court approved our motion to enter into new commodity derivative contracts. Accordingly, we hedged a substantial portion of our future crude oil production through the end of 2019, as required in the RSA, at a weighted-average price of approximately $48.62 per barrel. The following table sets forth our commodity derivative positions as of June 30, 2016:
Financial Statement Impact of Derivatives The impact of our derivative activities on income is included in “Derivatives” on our Condensed Consolidated Statements of Operations. The following table summarizes the effects of our derivative activities for the periods presented:
The effects of derivative gains and (losses) and cash settlements (except for those cash settlements attributable to the aforementioned termination transactions) are reported as adjustments to reconcile net income (loss) to net cash provided by operating activities. These items are recorded in “Derivative contracts” on our Condensed Consolidated Statements of Cash Flows under “Net losses (gains)” and “Cash settlements, net”. The following table summarizes the fair values of our derivative instruments, as well as the locations of these instruments on our Condensed Consolidated Balance Sheets as of the dates presented:
As of June 30, 2016, we reported a commodity derivative liability of $18.2 million. The contracts associated with this position are with three counterparties, all of which are investment grade financial institutions. This concentration may impact our overall credit risk, either positively or negatively, in that these counterparties may be similarly affected by changes in economic or other conditions. We have neither paid to, nor received from, our counterparties any cash collateral in connection with our derivative positions. No significant uncertainties exist related to the collectability of amounts that may be owed to us by these counterparties. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment The following table summarizes our property and equipment as of the dates presented:
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Debt Obligations The following table summarizes our debt obligations as of the dates presented:
____________________ 1 Issuance costs attributable to the Senior Notes were subject to an accelerated write-off in advance of our bankruptcy filing during the three months ended June 30, 2016. 2 Issuance costs attributable to the RBL, which represent costs attributable to the access to credit over the RBL’s contractual term, were presented as a component of Other assets (see Note 11) prior to the accelerated write-off in advance of our bankruptcy filing during the three months ended June 30, 2016. Revolving Credit Facility In January 2016, the RBL was amended to (i) allow us to convert to or continue LIBOR loans without having to make a solvency representation and (ii) increase our mortgage requirement from 80 percent to 100 percent (subject to certain exceptions) of our proved reserves. On March 15, 2016, we entered into the Eleventh Amendment (the “Eleventh Amendment”) to the RBL, which provided (i) for an extension before certain events of default under the RBL would occur, (ii) for an initial reduction in commitments and (iii) that the borrowing base under the RBL was not subject to scheduled redetermination until May 15, 2016. Specifically, the extension period with respect to events of default was through 12:01 am on April 12, 2016, which was further extended through 12:01 am on May 10, 2016, as certain conditions were satisfied. The key conditions to the first extension (to April 12, 2016) and entry into the Eleventh Amendment were: (i) termination of certain hedge agreements and application of the proceeds against the loans (which resulted in a further reduction in our lenders’ commitments), (ii) entry into control agreements over deposit accounts, subject to customary exceptions, (iii) payment of adviser fees and (iv) agreement to certain changes to the RBL, including increasing the interest rate by 1.00%, tightening certain restrictive covenants and agreeing that monthly hedge settlements would be applied against the loans. The key conditions to the second extension (to May 10, 2016) were: (i) termination of certain additional hedges and application of a portion of the proceeds against the loans (which resulted in a further reduction in our lenders’ commitments) and (ii) no notification by the representative of the Ad Hoc Committee that they did not support such extension. In connection with the Eleventh Amendment and second extension, we terminated certain derivative contracts representing hedges and proceeds of $22.9 million and $16.6 million were applied to reduce the amounts outstanding under the RBL in March 2016 and April 2016, respectively. We also made an optional payment on the RBL in April 2016 in the amount of $5.4 million. Finally, we terminated our remaining pre-petition derivative contracts in May 2016 immediately prior to our bankruptcy filing and proceeds of $12.5 million were applied to reduce the amounts outstanding under the RBL to the amount currently outstanding. Borrowings under the RBL bear interest at either (i) a rate derived from the London Interbank Offered Rate, as adjusted for statutory reserve requirements for Eurocurrency liabilities (“Adjusted LIBOR”), plus an applicable margin (ranging from 2.500% to 3.500%) or (ii) the greater of (a) the prime rate, (b) the federal funds effective rate plus 0.5% or (c) the one-month Adjusted LIBOR plus 1.0% (clauses (a), (b) and (c) (the “Base Rate”)), and, in each case, plus an applicable margin (ranging from 1.500% to 2.500%). The applicable margin is determined based on the ratio of our outstanding borrowings to the available RBL capacity. As of June 30, 2016, the actual interest rate on the outstanding borrowings under the RBL was 6.000% which is derived from a base rate of 3.500% plus an applicable margin of 2.500%. The RBL is guaranteed by us and all of our material subsidiaries (the “Guarantor Subsidiaries”). The obligations under the RBL are secured by a first priority lien on substantially all of our proved oil and gas reserves and a pledge of the equity interests in the Guarantor Subsidiaries. The RBL includes current ratio, leverage ratio and credit exposure financial covenants. As of June 30, 2016, and through the date upon which the Condensed Consolidated Financial Statements were issued, we were not in compliance with the current ratio covenant or the leverage ratio covenant under the RBL. The amounts outstanding under the RBL have been reclassified to current at December 31, 2015, and remain as such as of June 30, 2016. As of June 30, 2016, the commitments under the RBL were $114.4 million, which is equal to our currently outstanding loans ($112.6 million) and issued letters of credit ($1.9 million). The commencement of the Chapter 11 case on May 12, 2016 constituted an event of default that accelerated our obligations under the RBL. Additionally, other events of defaults existed as of May 12, 2016 as a result of our failure to comply with certain of our financial covenants under the RBL as discussed above. Because of these defaults and our lack of available commitment capacity, we were unable to draw on the RBL as of June 30, 2016 and currently. We continue to accrue and pay interest on the RBL during the pendency of the bankruptcy proceedings. 2019 Senior Notes Our 2019 Senior Notes, which were issued at par in April 2011, bear interest at an annual rate of 7.25% payable on April 15 and October 15 of each year. The 2019 Senior Notes are senior to our existing and future subordinated indebtedness and are effectively subordinated to our secured indebtedness, including the RBL, to the extent of the collateral securing that indebtedness. The obligations under the 2019 Senior Notes are fully and unconditionally guaranteed by the Guarantor Subsidiaries. Our bankruptcy filing represented an event of default under the indenture governing the 2019 Senior Notes. The 2019 Senior Notes and accrued interest through May 12, 2016, including amounts that we elected not to pay on April 15, 2016, have been included in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016 (see Note 3). In connection with the bankruptcy filing, we have suspended the accrual of interest on the 2019 Senior Notes during the post-petition period. 2020 Senior Notes Our 2020 Senior Notes, which were issued at par in April 2013, bear interest at an annual rate of 8.50% payable on May 1 and November 1 of each year. The 2020 Senior Notes are senior to our existing and future subordinated indebtedness and are effectively subordinated to our secured indebtedness, including the RBL, to the extent of the collateral securing that indebtedness. The obligations under the 2020 Senior Notes are fully and unconditionally guaranteed by the Guarantor Subsidiaries. Our bankruptcy filing represented an event of default under the indenture governing the 2020 Senior Notes. The 2020 Senior Notes and accrued interest through May 12, 2016, including amounts that we elected not to pay on May 1, 2016, have been included in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016 (see Note 3). In connection with the bankruptcy filing, we have suspended the accrual of interest on the 2020 Senior Notes during the post-petition period. Guarantees The guarantees under the RBL and the 2019 Senior Notes and 2020 Senior Notes are full and unconditional and joint and several. Substantially all of our consolidated assets are held by the Guarantor Subsidiaries. The parent company and its non-guarantor subsidiaries have no material independent assets or operations. |
Income Taxes |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized a federal income tax benefit for the six months ended June 30, 2016 at the statutory rate of 35%; however, the federal tax benefit was fully offset by a valuation allowance against our net deferred tax assets. We considered both the positive and negative evidence in determining that it was more likely than not that some portion or all of our deferred tax assets will not be realized, primarily as a result of recent cumulative losses. We recognized a minimal state deferred income tax expense for the six months ended June 30, 2015 at an effective rate of 0.2%. We received a state income tax refund of less than $0.1 million during the six months ended June 30, 2016. |
Exit Activities |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exit Activities | Exit Activities We have committed to a number of actions, or exit activities, consistent with our current business plans and certain legacy actions from prior periods for which we have continuing financial commitments. The most significant of these activities are attributable to an overall reduction in the scope and scale of our organization and require payments to satisfy obligations associated with the underlying commitments. The following summarizes our most significant exit activities. Reductions in Force In connection with efforts to reduce our administrative costs and to appropriately size our organization for emergence from bankruptcy, we have taken certain actions to reduce our total employee headcount. We incurred costs for severance and termination benefits in the amount of $0.8 million in February 2016 in connection with the termination of 10 employees. We reduced our total employee headcount by an additional 18 employees in June 2016 and incurred severance and termination benefits in the amount of $0.3 million. We paid a total of $0.7 million attributable to these reductions in force during the period ending June 30, 2016 leaving $0.4 million outstanding as of June 30, 2016. As this remaining amount relates entirely to a pre-petition obligation, it has been included in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016. We have committed to a further reduction in force by 26 employees to be completed upon the earlier of our emergence from bankruptcy or October 31, 2016. In connection with this action, we anticipate paying a total of $1.7 million, including $1.2 million in severance and termination benefits and $0.5 million in retention bonuses. The affected employees must continue to provide services through the aforementioned term in order to receive these benefits. Accordingly, we incurred a charge and established an accrual representing the period for which these benefits have been earned. The costs associated with these reduction-in-force and retention actions are included as a component of our “General and administrative” expenses. The related obligations, with the exception of the aforementioned $0.4 million pre-petition obligation, are included in “Accounts payable and accrued liabilities” on our Condensed Consolidated Balance Sheet. Drilling Rig Termination In connection with the suspension of our 2016 drilling program in the Eagle Ford, we terminated our one remaining drilling rig contract and incurred $1.3 million in early termination charges. This charge was recorded as a component of exploration expense for the periods ended June 30, 2016. Because this contract termination gave rise to a pre-petition commitment, which remains unpaid at June 30, 2016, the associated obligation has been included in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016. Firm Transportation Obligation We have a contractual obligation for certain firm transportation capacity in the Appalachian region that expires in 2022 and, as a result of the sale of our natural gas assets in West Virginia, Kentucky and Virginia in 2012, we no longer have production to satisfy this commitment. While we sell our unused firm transportation to the extent possible, we recognized an obligation in 2012 representing the liability for estimated discounted future net cash outflows over the remaining term of the contract. The following table reconciles the firm transportation obligation as of the dates presented:
The accretion of the obligation, net of any recoveries from periodic sales of our contractual capacity, has been charged as an offset to Other revenue. In connection with our bankruptcy filing, we have rejected the underlying contract associated with this obligation. Accordingly, we suspended the accretion effective May 12, 2016 and have included the entire obligation in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016. |
Additional Balance Sheet Detail |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Balance Sheet Detail | Additional Balance Sheet Detail The following table summarizes components of selected balance sheet accounts as of the dates presented:
_______________________ 1 These costs were charged to interest expense during the three months ended June 30, 2016 in advance of our Chapter 11 filing (see Note 8). 2 Certain amounts associated with these liabilities that were incurred in pre-petition periods have been reclassified as “Liabilities subject to compromise” as of June 30, 2016 (see Note 3). |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements We apply the authoritative accounting provisions for measuring fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. Our financial instruments that are subject to fair value disclosure consist of cash and cash equivalents, accounts receivable, accounts payable, derivatives and long-term debt. As of June 30, 2016, the carrying values of all of these financial instruments, except the portion of our debt obligations with fixed interest rates, approximated fair value. The following table summarizes the fair value of our debt obligations with fixed interest rates, which is estimated based on the published market prices for these financial liabilities, as of the dates presented:
Recurring Fair Value Measurements Certain financial assets and liabilities are measured at fair value on a recurring basis in our Condensed Consolidated Balance Sheets. The following tables summarize the valuation of those assets and liabilities as of the dates presented:
_______________________ 1 The amounts associated with these liabilities were included in “Liabilities subject to compromise” as of June 30, 2016 (see Note 3).
Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one level of the fair value hierarchy to another level. In such instances, the transfer is deemed to have occurred at the beginning of the quarterly period in which the event or change in circumstances that caused the transfer occurred. There were no transfers during the six months ended June 30, 2016 and 2015. We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below:
Non-Recurring Fair Value Measurements The most significant non-recurring fair value measurements utilized in the preparation of our Condensed Consolidated Financial Statements are those attributable to the recognition and measurement of net assets acquired, the recognition and measurement of asset impairments and the initial determination of AROs. The factors used to determine fair value for purposes of recognizing and measuring net assets acquired and asset impairments include, but are not limited to, estimates of proved and probable reserves, future commodity prices, indicative sales prices for properties, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and gas properties. Because these significant fair value inputs are typically not observable, we have categorized the amounts as level 3 inputs. The determination of the fair value of AROs is based upon regional market and facility specific information. The amount of an ARO and the costs capitalized represent the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor after discounting the future cost back to the date that the abandonment obligation was incurred using a rate commensurate with the risk, which approximates our cost of funds. Because these significant fair value inputs are typically not observable, we have categorized the initial estimates as level 3 inputs. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Firm Transportation Commitments We have a contract for firm transportation capacity rights attributable to our production in the Marcellus Shale for specified daily volumes on a pipeline system with a remaining term of 13 years. The contract requires us to pay transportation demand charges regardless of the amount of pipeline capacity we use. The minimum commitment under this agreement is $0.6 million for the remainder of 2016 and approximately $1.1 million per year through 2028. We may sell excess capacity to third parties at our discretion. We have rejected this contract in our bankruptcy proceedings. Gathering and Intermediate Transportation Commitments We have a long-term agreement for natural gas gathering, compression and gas lift services for a substantial portion of our natural gas production in the South Texas region through 2039. The agreement requires us to make certain minimum payments regardless of the volume of natural gas production until December 2016. The minimum fee requirement under this agreement is $2.5 million for the remainder of 2016. We also have long-term agreements for gathering and intermediate pipeline transportation services for a substantial portion of our crude oil and condensate production in the South Texas region through 2041. These agreements, under which we are currently operating, require us to commit certain minimum volumes of crude oil production for the first ten years of the agreements’ terms, resulting in minimum fee requirements of approximately $12.3 million on an annual basis; however, we are currently in the process of amending and assuming these agreements. Drilling Carry In connection with our August 2014 acquisition of undeveloped acreage in the Eagle Ford in Lavaca County, Texas, we committed to providing a drilling carry in the amount of $10.7 million to support development of this acreage through July 2017. If we have not incurred the full balance of the drilling carry by certain dates in 2016 and 2017, we will be required to make a cash payment to the seller to satisfy any shortfall. As we have not completed our drilling requirements for the June 2016 milestone, we recorded a charge of $2.0 million under the drilling carry commitment in the three months ended June 30, 2016 as a component of exploration expense; however, the corresponding obligation has been included in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016. Legal and Regulatory We are involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, our management believes that these claims will not have a material effect on our financial position, results of operations or cash flows. During 2010, we established a $0.9 million reserve for a litigation matter that remained outstanding as of June 30, 2016. During the three months ended June 30, 2016, we established a reserve for a dispute with certain vendors attributable to sales and use taxes in the amount of $0.2 million. We anticipate that claims will be filed by the vendors for each of these matters. As they are both attributable to pre-petition claims, the obligations have been classified as subject to compromise (see Note 3). As of June 30, 2016, we also had AROs of approximately $3.4 million attributable to the plugging of abandoned wells. |
Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity The following tables summarize the components of our shareholders’ equity (deficit) and the changes therein as of and for the six months ended June 30, 2016 and 2015:
_______________________ 1 Includes equity-classified share-based compensation of $(3,922) and $2,106 for the six months ended June 30, 2016 and 2015, respectively. 2 A total of 52 shares, or 5,159 depositary shares, of our Series A 6% Convertible Perpetual Preferred Stock (the “Series A Preferred Stock”) were converted into 85,982 shares of our common stock during the six months ended June 30, 2016. A total of 12,619 shares, or 1,261,850 depositary shares, of our Series B 6% Convertible Perpetual Preferred Stock (the “Series B Preferred Stock”) were converted into 6,879,222 shares of our common stock during the six months ended June 30, 2016. No Series A Preferred Stock or Series B Preferred Stock was converted during the six months ended June 30, 2015. 3 Accumulated other comprehensive income (“AOCI”) is entirely attributable to our defined benefit pension and postretirement health care plans. The changes in the balance of AOCI for the six months ended June 30, 2016 and 2015 represent reclassifications from AOCI to net periodic benefit expense, a component of General and administrative expenses, of $(38) and $(21), respectively, and are presented above net of taxes of $(11) in the 2015 period. 4 Includes dividends declared of $300.00 per share on the Series A Preferred Stock for the six months ended June 30, 2016 and $300.00 per share on the Series B Preferred Stock for the six months ended June 30, 2015. In September 2015, we announced a suspension of quarterly dividends on the Series A Preferred Stock and Series B Preferred Stock for the quarter ended September 30, 2015. The suspension was extended through June 30, 2016. Pursuant to the Eleventh Amendment, we are precluded from making dividend payments on our Series A and Series B Preferred Stock. Our articles of incorporation provide that any unpaid dividends will accumulate. While the accumulation does not result in presentation of a liability on the balance sheet, the accumulated dividends are deducted from our net income (or added to our net loss) in the determination of income (loss) attributable to common shareholders and, as appropriate, the corresponding computation of earnings (loss) per share. As of June 30, 2016, we had accumulated a total of $16.6 million in unpaid preferred stock dividends, including $2.8 million attributable to the Series A Preferred Stock and $13.8 million attributable to the Series B Preferred Stock. If we do not pay dividends on our Series A Preferred Stock and Series B Preferred Stock for six quarterly periods, whether consecutive or non-consecutive, the holders of the shares of both series of preferred stock, voting together as a single class, will have the right to elect two additional directors to serve on our board of directors until all accumulated and unpaid dividends are paid in full. Because it is highly likely that our preferred stock will be canceled, extinguished and discharged upon emergence from bankruptcy, we do not expect that holders of our preferred stock will be able to exercise such rights. |
Share-Based Compensation and Other Benefit Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation and Other Benefit Plans | Share-Based Compensation and Other Benefit Plans The Penn Virginia Corporation 2013 Amended and Restated Long-Term Incentive Plan (the “LTI Plan”) permits the grant of incentive and nonqualified stock options, common stock, deferred common stock units, restricted stock and restricted stock units to our employees and directors. We recognize compensation expense related to the LTI Plan as a component of “General and administrative” on our Condensed Consolidated Statements of Operations. With the exception of performance-based restricted stock units (“PBRSUs”), all of the awards issued under the LTI Plan are classified as equity instruments because they result in the issuance of common stock on the date of grant, upon exercise or are otherwise payable in common stock upon vesting, as applicable. The compensation cost attributable to these awards is measured at the grant date and recognized over the applicable vesting period as a non-cash item of expense. Because the PBRSUs are payable in cash, they are typically considered liability-classified awards and are included in “Accounts payable and accrued liabilities” (current portion) and “Other liabilities” (noncurrent portion) on our Condensed Consolidated Balance Sheets. Compensation cost associated with the PBRSUs is measured at the end of each reporting period and recognized based on the period of time that has elapsed during each of the individual performance periods. As of June 30, 2016, we had $7.1 million of vested PBRSUs; however, the corresponding obligation has been included in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016 (see Note 3). None of of our remaining unvested PBRSUs had value as of June 30, 2016. In April 2016, we canceled all of our outstanding and unvested restricted stock unit awards which resulted in a reversal of share-based compensation of approximately $3.6 million. In addition, a substantial portion of our stock option awards were forfeited in connection with our 2016 reduction in force actions as described in Note 10. Accordingly, we recorded reversals to share-based compensation expense associated with those items as well. We continue to account for all remaining stock option grants that have not been forfeited in the normal course although we anticipate that these remaining share-based compensation awards will ultimately be canceled in connection with our emergence from bankruptcy in the third quarter of 2016. The following table summarizes our share-based compensation expense recognized for the periods presented:
We maintain the Penn Virginia Corporation and Affiliated Companies Employees 401(k) Plan (the “401(k) Plan”), a defined contribution plan, which covers substantially all of our employees. We recognized $0.3 million and $0.5 million of expense attributable the 401(k) Plan for the six months ended June 30, 2016 and 2015. In accordance with motions filed with the Bankruptcy Court, we continue to provide for and remit employer matching contributions to the 401(k) Plan. We maintain unqualified legacy defined benefit pension and defined benefit postretirement plans that cover a limited population of former employees, all of whom retired prior to 2000. The combined expense recognized with respect to these plans was less than $0.1 million for each of the six months ended June 30, 2016 and 2015. In accordance with motions filed with the Bankruptcy Court, we continue to provide for and pay the benefits associated with these plans. |
Interest Expense |
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Interest Expense | Interest Expense The following table summarizes the components of interest expense for the periods presented:
_______________________ 1 Absent the bankruptcy proceedings and the corresponding suspension of the accrual of interest on unsecured debt, we would have recorded total contractual interest expense of $23.5 million and $46.9 million for the three and six months ended June 30, 2016, including $5.4 million and $10.9 million attributable to the 2019 Senior Notes and $16.5 million and $32.9 million attributable to the 2020 Senior Notes. 2 Includes $20.5 million related to the accelerated write-off of unamortized debt issuance costs associated with the RBL and Senior Notes (see Note 8). |
Earnings (Loss) per Share |
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Earnings (Loss) per Share | Earnings (Loss) per Share The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings per share for the periods presented:
_______________________ 1 Preferred stock dividends were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2016 and 2015, as the assumed conversion of the outstanding preferred stock would have been anti-dilutive. 2 For the six months ended June 30, 2016 and 2015, approximately 26.6 million and 31.3 million, respectively, of potentially dilutive securities, including the Series A Preferred Stock and Series B Preferred Stock, stock options and restricted stock units, had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings (loss) per common share. |
Basis of Presentation (Policies) |
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New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016–13, Measurement of Credit Losses on Financial Instruments (“ASU 2016–13”), which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016–13 is required to be adopted using the modified retrospective method by January 1, 2020, with early adoption permitted. ASU 2016–13 will have applicability to our accounts receivable portfolio, particularly those receivables attributable to our joint interest partners. At this time, we do not anticipate that the adoption of ASU 2016–13 will have a significant impact on our Consolidated Financial Statements and related disclosures; however, we are currently in the early stages of evaluating the requirements and the period for which we will adopt the standard. In March 2016, the FASB issued ASU 2016–09, Improvements to Employee Share-based Payment Accounting (“ASU 2016–09”), which simplifies the accounting for share-based compensation. The areas for simplification that are applicable to publicly held companies are as follows: (i) Accounting for Income Taxes, (ii) Classification of Excess Tax Benefits on the Statement of Cash Flows, (iii) Forfeitures, (iv) Minimum Statutory Tax Withholding Requirements and (v) Classification of Employee Taxes Paid on the Statement of Cash Flows when an employer withholds shares for tax-withholding purposes. The effective date of ASU 2016–09 is January 1, 2017, with early adoption permitted. As discussed in detail in Notes 3 and 15 below, our reorganization plans anticipate that all of our existing share-based compensation plans will be canceled. Accordingly, we are currently planning to adopt ASU 2016–09 upon our emergence from bankruptcy which is anticipated in the third quarter of 2016. In February 2016, the FASB issued ASU 2016–02, Leases (“ASU 2016–02”), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with terms of more than twelve months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. ASU 2016–02 also will require disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The effective date of ASU 2016–02 is January 1, 2019, with early adoption permitted. We are continuing to evaluate the effect that ASU 2016–02 will have on our Consolidated Financial Statements and related disclosures as well as the period for which we will adopt the standard. In May 2014, the FASB issued ASU 2014–09, Revenues from Contracts with Customers (“ASU 2014–09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014–09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. While traditional commodity sales transactions, property conveyances and joint interest arrangements in the oil and gas industry are not expected to be significantly impacted by ASU 2014–09, natural gas imbalances and other non-product revenues, including our ancillary marketing, gathering and transportation and water service revenues could be affected. Accordingly, we are continuing to evaluate the effect that ASU 2014–09 will have on our Consolidated Financial Statements and related disclosures, with a more focused analysis on these other revenue sources. We have not yet selected a transition method nor have we determined the period for which we will adopt the new standard. |
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Basis of Presentation | Basis of Presentation Our unaudited Condensed Consolidated Financial Statements include the accounts of Penn Virginia and all of our subsidiaries. Intercompany balances and transactions have been eliminated. Our Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparation of these statements involves the use of estimates and judgments where appropriate. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of our Condensed Consolidated Financial Statements have been included. Our Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. Operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Certain amounts for the corresponding 2015 periods have been reclassified to conform to the current year presentation. These reclassifications have no impact on our previously reported results of operations, balance sheets or cash flows. Going Concern Presumption Our unaudited Condensed Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and other commitments in the normal course of business. As discussed in further detail in Note 3 below, we have been operating as a “debtor-in-possession” since May 12, 2016. There are certain inherent risks associated with our ongoing bankruptcy proceedings. Accordingly, there can be no assurance that we will emerge from bankruptcy as a “going concern.” Furthermore, the realization of our assets and satisfaction of our liabilities and other commitments, without substantial adjustments, as well as a change in ownership, are also subject to significant uncertainty. We have applied the relevant guidance provided in U.S. GAAP with respect to the accounting and financial statement disclosures for entities that have filed petitions with the bankruptcy court and expect to reorganize as going concerns in preparing our Condensed Consolidated Financial Statements and Notes. That guidance requires that, for periods subsequent to our bankruptcy filing on May 12, 2016, or post-petition periods, certain transactions and events that are directly related to our ongoing reorganization be distinguished from our normal business operations. Accordingly, certain revenues, expenses, realized gains and losses and provisions that are realized or incurred in the bankruptcy proceedings are included in “Reorganization items, net” on our Condensed Consolidated Statement of Operations for the periods ended June 30, 2016. In addition, certain liabilities and other obligations incurred prior to May 12, 2016, or pre-petition periods, have been classified in “Liabilities subject to compromise” on our Condensed Consolidated Balance Sheet as of June 30, 2016. These liabilities have been reported at estimated amounts that we believe will be allowed as claims by the bankruptcy court; however, they may ultimately be settled for lesser or greater amounts. Further detail for our “Reorganization items, net” and “Liabilities subject to compromise” are provided in Note 3 below. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016–13, Measurement of Credit Losses on Financial Instruments (“ASU 2016–13”), which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016–13 is required to be adopted using the modified retrospective method by January 1, 2020, with early adoption permitted. ASU 2016–13 will have applicability to our accounts receivable portfolio, particularly those receivables attributable to our joint interest partners. At this time, we do not anticipate that the adoption of ASU 2016–13 will have a significant impact on our Consolidated Financial Statements and related disclosures; however, we are currently in the early stages of evaluating the requirements and the period for which we will adopt the standard. In March 2016, the FASB issued ASU 2016–09, Improvements to Employee Share-based Payment Accounting (“ASU 2016–09”), which simplifies the accounting for share-based compensation. The areas for simplification that are applicable to publicly held companies are as follows: (i) Accounting for Income Taxes, (ii) Classification of Excess Tax Benefits on the Statement of Cash Flows, (iii) Forfeitures, (iv) Minimum Statutory Tax Withholding Requirements and (v) Classification of Employee Taxes Paid on the Statement of Cash Flows when an employer withholds shares for tax-withholding purposes. The effective date of ASU 2016–09 is January 1, 2017, with early adoption permitted. As discussed in detail in Notes 3 and 15 below, our reorganization plans anticipate that all of our existing share-based compensation plans will be canceled. Accordingly, we are currently planning to adopt ASU 2016–09 upon our emergence from bankruptcy which is anticipated in the third quarter of 2016. In February 2016, the FASB issued ASU 2016–02, Leases (“ASU 2016–02”), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with terms of more than twelve months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. ASU 2016–02 also will require disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The effective date of ASU 2016–02 is January 1, 2019, with early adoption permitted. We are continuing to evaluate the effect that ASU 2016–02 will have on our Consolidated Financial Statements and related disclosures as well as the period for which we will adopt the standard. In May 2014, the FASB issued ASU 2014–09, Revenues from Contracts with Customers (“ASU 2014–09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014–09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. While traditional commodity sales transactions, property conveyances and joint interest arrangements in the oil and gas industry are not expected to be significantly impacted by ASU 2014–09, natural gas imbalances and other non-product revenues, including our ancillary marketing, gathering and transportation and water service revenues could be affected. Accordingly, we are continuing to evaluate the effect that ASU 2014–09 will have on our Consolidated Financial Statements and related disclosures, with a more focused analysis on these other revenue sources. We have not yet selected a transition method nor have we determined the period for which we will adopt the new standard. Subsequent Events Management has evaluated all of our activities through the issuance date of our Condensed Consolidated Financial Statements and has concluded that no subsequent events have occurred that would require recognition in our Condensed Consolidated Financial Statements or disclosure in the Notes thereto. |
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Fair Value Measurements | We apply the authoritative accounting provisions for measuring fair value of both our financial and nonfinancial assets and liabilities. Fair value is an exit price representing the expected amount we would receive upon the sale of an asset or that we would expect to pay to transfer a liability in an orderly transaction with market participants at the measurement date. |
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Fair Value, Measurements, Recurring | |||||||||||||
Schedule of Policies [Line Items] | |||||||||||||
Fair Value Measurements | We used the following methods and assumptions to estimate fair values for the financial assets and liabilities described below:
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Fair Value, Measurements, Nonrecurring | |||||||||||||
Schedule of Policies [Line Items] | |||||||||||||
Fair Value Measurements | Non-Recurring Fair Value Measurements The most significant non-recurring fair value measurements utilized in the preparation of our Condensed Consolidated Financial Statements are those attributable to the recognition and measurement of net assets acquired, the recognition and measurement of asset impairments and the initial determination of AROs. The factors used to determine fair value for purposes of recognizing and measuring net assets acquired and asset impairments include, but are not limited to, estimates of proved and probable reserves, future commodity prices, indicative sales prices for properties, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and gas properties. Because these significant fair value inputs are typically not observable, we have categorized the amounts as level 3 inputs. The determination of the fair value of AROs is based upon regional market and facility specific information. The amount of an ARO and the costs capitalized represent the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor after discounting the future cost back to the date that the abandonment obligation was incurred using a rate commensurate with the risk, which approximates our cost of funds. Because these significant fair value inputs are typically not observable, we have categorized the initial estimates as level 3 inputs. |
Chapter 11 Proceedings Chapter 11 Proceedings (Tables) |
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganizations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liabilities Subject to Compromise | The following table summarizes the components of “Liabilities subject to compromise” included on our Consolidated Balance Sheet as of June 30, 2016 (in thousands):
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Schedule of Reorganization Items | The following table summarizes the components included in “Reorganization items, net” in our Condensed Consolidated Statements of Operations for the periods ended June 30, 2016 (in thousands):
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Accounts Receivable and Major Customers (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounts Receivable | The following table summarizes our accounts receivable by type as of the dates presented:
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Derivative Positions | The following table sets forth our commodity derivative positions as of June 30, 2016:
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Impact of Derivative Activities on Condensed Consolidated Statements of Income | The impact of our derivative activities on income is included in “Derivatives” on our Condensed Consolidated Statements of Operations. The following table summarizes the effects of our derivative activities for the periods presented:
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Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets | The following table summarizes the fair values of our derivative instruments, as well as the locations of these instruments on our Condensed Consolidated Balance Sheets as of the dates presented:
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Property and Equipment (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property and Equipment | The following table summarizes our property and equipment as of the dates presented:
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount of Components of Long-term Debt | The following table summarizes our debt obligations as of the dates presented:
____________________ 1 Issuance costs attributable to the Senior Notes were subject to an accelerated write-off in advance of our bankruptcy filing during the three months ended June 30, 2016. 2 Issuance costs attributable to the RBL, which represent costs attributable to the access to credit over the RBL’s contractual term, were presented as a component of Other assets (see Note 11) prior to the accelerated write-off in advance of our bankruptcy filing during the three months ended June 30, 2016. |
Exit Activities (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Related Obligations | The following table reconciles the firm transportation obligation as of the dates presented:
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Additional Balance Sheet Detail (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Selected Balance Sheet Accounts | The following table summarizes components of selected balance sheet accounts as of the dates presented:
_______________________ 1 These costs were charged to interest expense during the three months ended June 30, 2016 in advance of our Chapter 11 filing (see Note 8). 2 Certain amounts associated with these liabilities that were incurred in pre-petition periods have been reclassified as “Liabilities subject to compromise” as of June 30, 2016 (see Note 3). |
Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Summary of Long-Term Debt with Fixed Interest Rates | The following table summarizes the fair value of our debt obligations with fixed interest rates, which is estimated based on the published market prices for these financial liabilities, as of the dates presented:
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Assets and Liabilities Measured at Fair Value on Recurring Basis |
The following tables summarize the valuation of those assets and liabilities as of the dates presented:
_______________________ 1 The amounts associated with these liabilities were included in “Liabilities subject to compromise” as of June 30, 2016 (see Note 3). |
Shareholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | The following tables summarize the components of our shareholders’ equity (deficit) and the changes therein as of and for the six months ended June 30, 2016 and 2015:
_______________________ 1 Includes equity-classified share-based compensation of $(3,922) and $2,106 for the six months ended June 30, 2016 and 2015, respectively. 2 A total of 52 shares, or 5,159 depositary shares, of our Series A 6% Convertible Perpetual Preferred Stock (the “Series A Preferred Stock”) were converted into 85,982 shares of our common stock during the six months ended June 30, 2016. A total of 12,619 shares, or 1,261,850 depositary shares, of our Series B 6% Convertible Perpetual Preferred Stock (the “Series B Preferred Stock”) were converted into 6,879,222 shares of our common stock during the six months ended June 30, 2016. No Series A Preferred Stock or Series B Preferred Stock was converted during the six months ended June 30, 2015. 3 Accumulated other comprehensive income (“AOCI”) is entirely attributable to our defined benefit pension and postretirement health care plans. The changes in the balance of AOCI for the six months ended June 30, 2016 and 2015 represent reclassifications from AOCI to net periodic benefit expense, a component of General and administrative expenses, of $(38) and $(21), respectively, and are presented above net of taxes of $(11) in the 2015 period. 4 Includes dividends declared of $300.00 per share on the Series A Preferred Stock for the six months ended June 30, 2016 and $300.00 per share on the Series B Preferred Stock for the six months ended June 30, 2015. |
Share-Based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-Based Compensation Expense | The following table summarizes our share-based compensation expense recognized for the periods presented:
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Interest Expense (Tables) |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense Net Disclosure | The following table summarizes the components of interest expense for the periods presented:
_______________________ 1 Absent the bankruptcy proceedings and the corresponding suspension of the accrual of interest on unsecured debt, we would have recorded total contractual interest expense of $23.5 million and $46.9 million for the three and six months ended June 30, 2016, including $5.4 million and $10.9 million attributable to the 2019 Senior Notes and $16.5 million and $32.9 million attributable to the 2020 Senior Notes. 2 Includes $20.5 million related to the accelerated write-off of unamortized debt issuance costs associated with the RBL and Senior Notes (see Note 8). |
Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Calculation of Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the components used in the calculation of basic and diluted earnings per share for the periods presented:
_______________________ 1 Preferred stock dividends were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2016 and 2015, as the assumed conversion of the outstanding preferred stock would have been anti-dilutive. 2 For the six months ended June 30, 2016 and 2015, approximately 26.6 million and 31.3 million, respectively, of potentially dilutive securities, including the Series A Preferred Stock and Series B Preferred Stock, stock options and restricted stock units, had the effect of being anti-dilutive and were excluded from the calculation of diluted earnings (loss) per common share. |
Basis of Presentation (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Accounting Policies [Abstract] | |||||||
Net loss attributable to common shareholders | $ (64,800) | $ (86,196) | $ (101,425) | $ (149,428) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Long-term Debt | $ 1,187,553 | $ 1,187,553 | $ 1,187,553 | $ 1,245,000 | |||
Restructuring and Related Cost, Number of Positions Eliminated | 18 | 10 | |||||
Severance and Termination Benefits | $ 300 | $ 800 |
Chapter 11 Proceedings Chapter 11 Proceedings (Details) - USD ($) |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2016 |
May 25, 2016 |
May 10, 2016 |
Dec. 31, 2015 |
|
Reorganizations [Abstract] | ||||
Percentage of Common Stock Holders agreed to RSA | 86.00% | |||
Liabilities Subject to Compromise, Senior Notes | $ 1,075,000,000 | |||
Debtor Reorganization Items, Legal and Advisory Professional Fees | $ 7,237,000 | |||
Plan of Reorganization, percentage of common stock lenders to receive upon cancellation of all the outstanding indebtedness under the Senior Notes | 100.00% | |||
Percentage of claims responsible for related to pre-petition revolving credit agreement | 100.00% | |||
Percent of Common Stock of Ad Hoc Equity Committee | 300.00% | |||
Liabilities Subject to Compromise, Debt and Accrued Interest | $ 1,122,000,000 | |||
Plan of Reorganization, percentage of commons stock lenders to receive net of backstop fee | 43.40% | |||
Plan of Reorganization, backstop fee | 3.20% | |||
Debtor-in-Possession Financing, Amount Arranged | $ 25,000,000 | |||
Backstop Commitment Agreement, Backstop Commitment | $ 50,000,000 | |||
Backstop Commitment Agreement, Commitment Premium percentage | 6.00% | |||
Backstop Commitment Agreement, Termination Fee Percentage of the Rights Offering Amount | 4.00% | |||
Rights Offering, Rights Offering Amount | 50,000,000 | |||
Rights Offering, Backstop Parties purchase price of shares of New Common Stock that are not duly subscribed for pursuant to the Rights Offering | $ 45,100,000 | |||
Substantial Stockholder percentage | 450.00% | |||
Liabilities Subject to Compromise, Interest on Senior Notes | $ 47,213,000 | |||
Liabilities Subject to Compromise, Restructuring Reserve | 12,719,000 | |||
Liabilities Subject to Compromise, Compensation | 9,733,000 | |||
Liabilities Subject to Compromise, Deferred Compensation | 4,605,000 | |||
Liabilities Subject to Compromise, Pension and Other Postretirement Obligations | 1,221,000 | |||
Liabilities Subject to Compromise, Postretirement health care benefit obligations | 883,000 | |||
Liabilities Subject to Compromise, Accounts Payable | 1,892,000 | |||
Liabilities Subject to Compromise, Litigation claims | 1,092,000 | |||
Liabilities Subject to Compromise, Other accrued liabilities | 3,997,000 | |||
Liabilities Subject to Compromise | 1,158,355,000 | $ 0 | ||
Debtor Reorganization Items, DIP Facility Costs and Commitment fees | 143,000 | |||
Debtor Reorganization Items, Adjustment to pre-petition liabilities | 0 | |||
Debtor Reorganization Items | $ 7,380,000 |
Acquisitions and Divestitures - Additional Information (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|
Jul. 31, 2014 |
Sep. 30, 2014 |
Mar. 31, 2014 |
Jun. 30, 2016 |
Dec. 31, 2014 |
|
Eagle Ford Shale, Lavaca County | |||||
Divestitures [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 45.6 | ||||
Payments to Acquire Oil and Gas Property | $ 34.9 | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 10.7 | ||||
Contractual Obligation | $ 2.0 | ||||
South Texas Oil Gathering Sys. Development Rights | |||||
Divestitures [Line Items] | |||||
Sale Leaseback Transaction, Deferred Gain, Gross | $ 75.7 | ||||
Period over which deferred gain is being recognized | 25 years | ||||
Balance of deferred gain recognized in period | 0.9 | ||||
Deferred gain on sale of assets, current component | 3.0 | ||||
Deferred gain on sale of assets, noncurrent component | 71.8 | ||||
South Texas Natural Gas Gathering Assets | |||||
Divestitures [Line Items] | |||||
Period over which deferred gain is being recognized | 25 years | ||||
Balance of deferred gain recognized in period | 0.2 | ||||
Deferred gain on sale of assets, current component | 0.4 | ||||
Gain on Sale of Oil and Gas Property | $ 10.6 | ||||
Deferred gain on sale of assets, noncurrent component | $ 9.1 |
Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Receivables [Abstract] | ||
Customers | $ 22,573 | $ 23,481 |
Joint interest partners | 12,849 | 18,381 |
Other | 6,510 | 7,658 |
Accounts Receivable, Gross, Current, Total | 41,932 | 49,520 |
Less: Allowance for doubtful accounts | (1,618) | (1,555) |
Accounts receivable, net of allowance for doubtful accounts | $ 40,314 | $ 47,965 |
Accounts Receivable and Major Customers - Additional Information (Detail) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2016
USD ($)
Customer
|
Jun. 30, 2015
USD ($)
Customer
|
Dec. 31, 2015
USD ($)
|
|
Sales Revenue | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of major customers | Customer | 3 | 3 | |
Revenues, major customers | $ 62.2 | $ 96.7 | |
Concentration risk, percentage | 93.00% | 62.00% | |
Sales Revenue | Customer Concentration Risk | Major Customer 1 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues, major customers | $ 32.1 | $ 41.2 | |
Concentration risk, percentage | 48.00% | 26.00% | |
Sales Revenue | Customer Concentration Risk | Major Customer 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues, major customers | $ 16.2 | $ 36.1 | |
Concentration risk, percentage | 24.00% | 23.00% | |
Sales Revenue | Customer Concentration Risk | Major Customer 3 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues, major customers | $ 13.9 | $ 19.4 | |
Concentration risk, percentage | 21.00% | 13.00% | |
Accounts Receivable | Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percentage | 91.00% | 90.00% | |
Accounts receivable, major customers | $ 20.5 | $ 21.1 |
Derivative Instruments - Additional Information (Detail) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016
USD ($)
Entity
$ / bbl
|
Jun. 30, 2015
USD ($)
|
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivatives Settled to Pay Down Revolver | $ 51,979 | $ 0 |
Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Swap Type, Average Fixed Price | $ / bbl | 48.62 | |
Commodity contracts | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative assets | $ 18,200 | |
Number of derivative counterparties | Entity | 3 | |
Commodity contracts | Natural Gas | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Third-party quoted forward prices | NYMEX Henry Hub gas | |
Commodity contracts | Crude Oil | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Third-party quoted forward prices | West Texas Intermediate crude oil | |
April 2016 [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivatives Settled | $ 22,600 | |
Derivatives Settled to Pay Down Revolver | 16,600 | |
May 2016 [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivatives Settled | 17,500 | |
Derivatives Settled to Pay Down Revolver | 12,500 | |
March 2016 [Domain] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivatives Settled | $ 22,900 |
Commodity Derivative Positions (Detail) - Crude Oil $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
bbl
$ / bbl
| |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 48.62 |
Third quarter 2016 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 5,940 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 47.69 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 807 |
Fourth quarter 2016 | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 5,940 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 47.69 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,628 |
First Quarter 2017 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 4,408 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 48.62 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,178 |
Second Quarter 2017 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 4,408 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 48.62 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,390 |
Third Quarter 2017 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 4,408 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 48.62 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,551 |
Fourth Quarter 2017 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 4,408 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 48.62 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,721 |
First Quarter 2018 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 3,476 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.12 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,252 |
Second Quarter 2018 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 3,476 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.12 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,329 |
Third Quarter 2018 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 3,476 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.12 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,410 |
Fourth Quarter 2018 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 3,476 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.12 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,485 |
First Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 2,916 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.90 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,056 |
Second Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 2,916 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.90 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,098 |
Fourth Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 2,916 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.90 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,195 |
Third Quarter 2019 [Member] | |
Derivative Instruments Related to Oil and Gas Production [Line Items] | |
Instrument | Swaps |
Notional Volume, per day | bbl | 2,916 |
Derivative, Swap Type, Average Fixed Price | $ / bbl | 49.90 |
Fair Value Asset | $ 0 |
Fair Value Liability | $ 1,142 |
Impact of Derivative Activities on Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives | $ (21,759) | $ (15,495) | $ (17,267) | $ 7,372 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Cash Received on Hedge | 16,393 | 34,840 | 46,952 | 72,332 |
Unrealized gains (losses) | $ (38,152) | $ (50,335) | $ (64,219) | $ (64,960) |
Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | $ 0 | $ 97,956 |
Derivative liabilities, current | 4,527 | |
Derivative Liability, Noncurrent | 13,715 | 0 |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 18,200 | |
Commodity contracts | Derivative assets/liabilities - current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | 0 | 97,956 |
Derivative liabilities, current | 4,527 | 0 |
Commodity contracts | Noncurrent Derivative Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Noncurrent | 0 | 0 |
Derivative Liability, Noncurrent | $ 13,715 | $ 0 |
Summary of Property and Equipment (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Oil and gas properties: | ||
Proved | $ 2,682,106 | $ 2,678,415 |
Unproved | 5,185 | 6,881 |
Total oil and gas properties | 2,687,291 | 2,685,296 |
Other property and equipment | 31,555 | 31,365 |
Total properties and equipment | 2,718,846 | 2,716,661 |
Accumulated depreciation, depletion and amortization | (2,397,714) | (2,372,266) |
Property and equipment, net (successful efforts method) | $ 321,132 | $ 344,395 |
Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 170,000 | ||||
Long-term Debt | $ 1,187,553 | 1,245,000 | |||
Unamortized issuance costs | 0 | (20,617) | |||
Preconfirmation, Liabilities Subject to Compromise | (1,075,000) | 0 | |||
Long-term Debt, Current Maturities | (112,553) | (1,224,383) | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 112,553 | 1,224,383 | |||
7.25% Senior Notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 300,000 | 300,000 | |||
Unamortized issuance costs | 0 | [1] | (3,295) | ||
8.50% Senior Notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | 775,000 | 775,000 | |||
Unamortized issuance costs | $ 0 | [1] | $ (17,322) | ||
|
Long-Term Debt - Additional Information (Detail) - USD ($) |
1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jan. 31, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
Mar. 15, 2016 |
|||
Debt Disclosure [Line Items] | |||||||
Line of Credit Facility, Asset Restrictions | 1 | 0.8 | |||||
Applicable Margin Rate Increase | 1.00% | ||||||
Derivatives Settled to Pay Down Revolver | $ 51,979,000 | $ 0 | |||||
Repayments of Lines of Credit | 5,468,000 | $ 20,000,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 112,600,000 | ||||||
March 2016 [Domain] | |||||||
Debt Disclosure [Line Items] | |||||||
Derivatives Settled to Pay Down Revolver | 22,900,000 | ||||||
May 2016 [Domain] | |||||||
Debt Disclosure [Line Items] | |||||||
Derivatives Settled to Pay Down Revolver | 12,500,000 | ||||||
April 2016 [Domain] | |||||||
Debt Disclosure [Line Items] | |||||||
Derivatives Settled to Pay Down Revolver | 16,600,000 | ||||||
Repayments of Lines of Credit | 5,400,000 | ||||||
Revolving Credit Facility | |||||||
Debt Disclosure [Line Items] | |||||||
Borrowing base and revolving commitment | $ 114,420,000 | ||||||
Debt Instrument Interest Additional Interest Above Federal Fund Rate | 0.50% | ||||||
Debt Instrument, Description of Variable Rate Basis | one-month Adjusted LIBOR | ||||||
Interest rate option two, base rate over one-month Adjusted LIBOR | 1.00% | ||||||
Interest rate option two, applicable margin rate | 2.50% | ||||||
Interest Rate at Period End | 6.00% | ||||||
Interest Rate at Period End, LIBOR component | 3.50% | ||||||
Line of Credit [Member] | Letter of Credit | |||||||
Debt Disclosure [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,900,000 | ||||||
7.25% Senior Notes due 2019 | |||||||
Debt Disclosure [Line Items] | |||||||
Senior Notes, Noncurrent | $ 300,000,000 | $ 300,000,000 | |||||
Annual interest rate | 7.25% | ||||||
8.50% Senior Notes due 2020 | |||||||
Debt Disclosure [Line Items] | |||||||
Senior Notes, Noncurrent | $ 775,000,000 | $ 775,000,000 | |||||
Annual interest rate | 8.50% | ||||||
Maximum | Revolving Credit Facility | |||||||
Debt Disclosure [Line Items] | |||||||
Interest rate option one, applicable margin rate over Adjusted LIBOR | 3.50% | ||||||
Interest rate option two, applicable margin rate | 2.50% | ||||||
Maximum | Line of Credit [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Available borrowing capacity | [1] | $ 112,553,000 | |||||
Minimum [Member] | Revolving Credit Facility | |||||||
Debt Disclosure [Line Items] | |||||||
Interest rate option one, applicable margin rate over Adjusted LIBOR | 2.50% | ||||||
Interest rate option two, applicable margin rate | 1.50% | ||||||
|
Income Taxes (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 35.00% | |
Effective Income Tax Rate Reconciliation, Percent | 0.20% | |
Income taxes paid | $ 0.1 |
Exit Activities - Additional Information (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Firm Transportation Obligation [Line Items] | ||
Balance of obligation, noncurrent | $ 0 | $ 10,705 |
Exit Activities (Detail) $ in Thousands |
1 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Restructuring and Related Activities [Abstract] | |||||
Severance and Termination Benefits | $ 300 | $ 800 | |||
Restructuring and Related Cost, Number of Positions Eliminated | 18 | 10 | |||
Firm Transportation Obligation [Roll Forward] | |||||
Balance at beginning of period | $ 13,461 | $ 14,790 | $ 14,790 | ||
Accretion | 317 | 445 | 942 | ||
Cash payments, net | (1,059) | $ (2,271) | |||
Balance at end of period | $ 12,719 | 12,719 | $ 13,461 | ||
Severance and Termination Benefits Paid | 700 | ||||
Liabilities Subject to Compromise, Severance and Termination Benefits | 400 | $ 400 | |||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 26 | ||||
Severance, Termination and Retention Benefits Expected | $ 1,700 | ||||
Severance and Termination Benefits Expected | 1,200 | ||||
Retention Bonuses Expected | 500 | ||||
Liabilities Subject to Compromise, Early Contract Termination Fees | $ 1,300 | $ 1,300 |
Components of Selected Balance Sheet Accounts (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other current assets: | ||
Tubular inventory and well materials | $ 2,214 | $ 2,878 |
Prepaid expenses | 2,718 | 4,184 |
Other Assets, Miscellaneous, Current | 7 | 42 |
Other Assets, Current | 4,939 | 7,104 |
Other assets: | ||
Assets of supplemental employee retirement plan (“SERP”) | 4,220 | 4,123 |
Deferred issuance costs of the Revolver | 0 | 1,572 |
Other | 2,520 | 2,655 |
Other assets | 6,740 | 8,350 |
Accounts payable and accrued liabilities: | ||
Trade accounts payable 2 | 23,394 | 11,603 |
Drilling costs | 2,228 | 12,074 |
Royalties and revenue – related | 10,662 | 39,119 |
Compensation – related 2 | 685 | 9,904 |
Interest 2 | 18 | 15,531 |
Other 2 | 16,173 | 15,294 |
Accounts payable and accrued liabilities | 53,160 | 103,525 |
Other liabilities: | ||
Deferred gains on sale of assets | 80,967 | 82,943 |
Firm transportation obligation 2 | 0 | 10,705 |
Asset retirement obligations (“AROs”) | 3,379 | 2,621 |
Defined benefit pension obligations 2 | 0 | 1,129 |
Postretirement health care benefit obligations 2 | 0 | 731 |
Compensation-related | 0 | 1,447 |
Deferred compensation – SERP obligations and other 2 | 0 | 4,434 |
Other 2 | 0 | 928 |
Other liabilities | $ 84,346 | $ 104,938 |
Fair Value Summary of Long-Term Debt with Fixed Interest Rates (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt with fixed interest rates | $ 80,625 | $ 166,303 |
Fair Value | 7.25% Senior Notes due 2019 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt with fixed interest rates | 22,500 | 40,830 |
Fair Value | 8.50% Senior Notes due 2020 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt with fixed interest rates | 58,125 | 125,473 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt with fixed interest rates | 1,075,000 | 1,075,000 |
Carrying Value | 7.25% Senior Notes due 2019 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt with fixed interest rates | 300,000 | 300,000 |
Carrying Value | 8.50% Senior Notes due 2020 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt with fixed interest rates | $ 775,000 | $ 775,000 |
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Assets: | |||||
Commodity derivative assets – current | $ 0 | $ 97,956 | |||
Liabilities: | |||||
Commodity derivative liabilities – current | (4,527) | ||||
Derivative Liability, Noncurrent | (13,715) | 0 | |||
Fair Value, Measurements, Recurring | |||||
Assets: | |||||
Assets of SERP 1 | 4,220 | [1] | 4,123 | ||
Liabilities: | |||||
Deferred compensation – SERP obligations 1 | 0 | (4,125) | |||
Fair Value, Measurements, Recurring | Level 1 | |||||
Assets: | |||||
Assets of SERP 1 | 4,220 | [1] | 4,123 | ||
Liabilities: | |||||
Deferred compensation – SERP obligations 1 | 0 | (4,125) | |||
Fair Value, Measurements, Recurring | Level 2 | |||||
Assets: | |||||
Assets of SERP 1 | 0 | 0 | |||
Liabilities: | |||||
Deferred compensation – SERP obligations 1 | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | |||||
Assets: | |||||
Assets of SERP 1 | 0 | 0 | |||
Liabilities: | |||||
Deferred compensation – SERP obligations 1 | 0 | 0 | |||
Fair Value, Measurements, Recurring | Commodity contracts | |||||
Assets: | |||||
Commodity derivative assets – current | 97,956 | ||||
Liabilities: | |||||
Commodity derivative liabilities – current | (4,527) | ||||
Derivative Liability, Noncurrent | (13,715) | ||||
Fair Value, Measurements, Recurring | Commodity contracts | Level 1 | |||||
Assets: | |||||
Commodity derivative assets – current | 0 | ||||
Liabilities: | |||||
Commodity derivative liabilities – current | 0 | ||||
Derivative Liability, Noncurrent | 0 | ||||
Fair Value, Measurements, Recurring | Commodity contracts | Level 2 | |||||
Assets: | |||||
Commodity derivative assets – current | 97,956 | ||||
Liabilities: | |||||
Commodity derivative liabilities – current | (4,527) | ||||
Derivative Liability, Noncurrent | (13,715) | ||||
Fair Value, Measurements, Recurring | Commodity contracts | Level 3 | |||||
Assets: | |||||
Commodity derivative assets – current | $ 0 | ||||
Liabilities: | |||||
Commodity derivative liabilities – current | 0 | ||||
Derivative Liability, Noncurrent | $ 0 | ||||
|
Commitments and Contingencies - Additional Information (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|---|
Aug. 30, 2016 |
Jun. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2010 |
|
Commitments and Contingencies Disclosure [Line Items] | ||||
Asset retirement obligations | $ 3,400,000 | $ 3,400,000 | ||
Legal Reserve | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Reserve established for contingency matters | $ 900,000 | |||
Sales and Use Tax [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Reserve established for contingency matters | 200,000 | |||
Firm Transportation | Maximum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Contract term | 13 years | |||
Coil Tubing Services [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Contractual obligation, balance of 2015 | $ 600,000 | 600,000 | ||
Contractual obligation, annual | 1,100,000 | 1,100,000 | ||
Gas Gathering And Compression Services | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Contractual obligation, balance of 2015 | 2,500,000 | 2,500,000 | ||
Crude Oil Gathering And Transportation Services | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Contractual obligation, annual | 12,300,000 | 12,300,000 | ||
Drilling Carry | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Contractual Obligation | $ 10,700,000 | $ 10,700,000 | ||
Scenario, Forecast [Member] | Drilling Carry | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Contractual Obligation Payment | $ 2.0 |
Shareholders' Equity Rollforward (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||||||
Schedule of Stockholders' Equity [Line Items] | ||||||||||||
Share-based compensation | $ (3,922) | [1] | $ 2,106 | |||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 85,982 | 6,879,222 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | $ (915,121) | $ 675,817 | ||||||||||
Net loss | $ (61,980) | $ (80,129) | (95,453) | (137,294) | ||||||||
Dividends Declared | 0 | |||||||||||
Dividends Declared | (12,134) | |||||||||||
All Other Changes | [1] | (3,960) | 1,529 | |||||||||
As of ending balance | (1,014,534) | 527,918 | (1,014,534) | 527,918 | ||||||||
Preferred stock dividends | [2] | (2,820) | (6,067) | (5,972) | (12,134) | |||||||
Preferred stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | 3,146 | 4,044 | ||||||||||
All Other Changes | [1] | (1,266) | 0 | |||||||||
As of ending balance | 1,880 | 4,044 | 1,880 | 4,044 | ||||||||
Common stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | 628 | 529 | ||||||||||
All Other Changes | [1] | 69 | 1 | |||||||||
As of ending balance | 697 | 530 | 697 | 530 | ||||||||
Paid-in capital | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | 1,211,088 | 1,206,305 | ||||||||||
All Other Changes | [1] | (2,725) | 1,549 | |||||||||
As of ending balance | 1,208,363 | 1,207,854 | 1,208,363 | 1,207,854 | ||||||||
Accumulated deficit | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | (2,130,271) | (535,176) | ||||||||||
Net loss | (95,453) | |||||||||||
All Other Changes | [1] | 0 | ||||||||||
As of ending balance | (2,225,724) | (684,604) | (2,225,724) | (684,604) | ||||||||
Preferred stock dividends | (12,134) | |||||||||||
Deferred compensation obligation | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | 3,440 | 3,211 | ||||||||||
All Other Changes | [1] | 0 | 143 | |||||||||
As of ending balance | 3,440 | 3,354 | 3,440 | 3,354 | ||||||||
Accumulated other comprehensive income | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | [3] | 422 | 249 | |||||||||
All Other Changes | [3] | (38) | (21) | |||||||||
As of ending balance | [3] | 384 | 228 | 384 | 228 | |||||||
Treasury stock | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
As of beginning balance | (3,574) | (3,345) | ||||||||||
All Other Changes | [1] | 0 | (143) | |||||||||
As of ending balance | $ (3,574) | $ (3,488) | $ (3,574) | $ (3,488) | ||||||||
Series A Preferred Stock | ||||||||||||
Schedule of Stockholders' Equity [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 300.00 | |||||||||||
Series B Preferred Stock | ||||||||||||
Schedule of Stockholders' Equity [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 300.00 | |||||||||||
Convertible Preferred Stock | ||||||||||||
Schedule of Stockholders' Equity [Line Items] | ||||||||||||
Conversion of Stock, Shares Converted | 52 | 12,619 | ||||||||||
|
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
||||
Class of Stock [Line Items] | ||||||||
Stockholders' Equity, Other | [1] | $ 3,960 | $ (1,529) | |||||
Share-based compensation (equity-classified) | $ (3,922) | [1] | $ 2,106 | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 85,982 | 6,879,222 | ||||||
Other Comprehensive loss, pension and postretirements obligations, before tax | $ (38) | $ (21) | ||||||
Change in pension and postretirement obligations, net of tax | $ 0 | $ (5) | 0 | $ (11) | ||||
Preferred Stock, Amount of Preferred Dividends in Arrears | $ 16,600 | |||||||
Common stock, shares authorized | 228,000,000 | 228,000,000 | 228,000,000 | |||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Stock, Shares Issued | 3,864 | 3,864 | 3,915 | |||||
Preferred stock dividends (in dollars per share) | $ 300.00 | |||||||
Preferred Stock, Amount of Preferred Dividends in Arrears | $ 2,800 | |||||||
Series B Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred Stock, Shares Issued | 14,933 | 14,933 | 27,551 | |||||
Preferred stock dividends (in dollars per share) | $ 300.00 | |||||||
Preferred Stock, Amount of Preferred Dividends in Arrears | $ 13,800 | |||||||
Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 52 | 12,619 | ||||||
Depositary Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 5,159 | 1,261,850 | ||||||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |||||||
|
Summary of Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Stock option awards | $ 155 | $ 387 | $ (147) | $ 780 | |||
Other Stock Based Compensation Expense | (3,476) | 729 | (3,775) | 1,326 | |||
Common, deferred, restricted and restricted unit awards | 3,600 | ||||||
Share-based compensation | (3,922) | [1] | 2,106 | ||||
Allocated Share-based Compensation Expense | (3,333) | 902 | (3,941) | 2,271 | |||
Defined Contribution Plan, Cost Recognized | 300 | 500 | |||||
Equity-classified awards: | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Share-based compensation | (3,321) | 1,116 | (3,922) | 2,106 | |||
Liability-classified awards | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Share-based compensation | (12) | $ (214) | (19) | 165 | |||
Accounts Payable and Accrued Liabilities | Performance Shares [Member] | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Deferred Compensation Share-based Arrangements, Liability, Current | $ 7,100 | 7,100 | |||||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Pension and Other Postretirement Benefit Expense | $ 100 | $ 100 | |||||
|
Components of Interest Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||||
Contractual Interest Expense [Line Items] | ||||||||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 23,500 | $ 46,900 | ||||||||
Debtor Reorganization Items, Write-off of Debt Issuance Costs and Debt Discounts | 20,500 | |||||||||
Interest on borrowings and related fees 1 | 11,344 | [1] | $ 23,324 | 34,649 | [1] | $ 46,132 | ||||
Amortization of debt issuance costs 2 | 20,920 | [2] | 1,176 | 22,189 | [2] | 2,280 | ||||
Capitalized interest | (43) | (1,477) | (183) | (3,376) | ||||||
Interest expense | 32,221 | $ 23,023 | 56,655 | $ 45,036 | ||||||
7.25% Senior Notes due 2019 | ||||||||||
Contractual Interest Expense [Line Items] | ||||||||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | 5,400 | 10,900 | ||||||||
Senior Notes Due 2020 [Member] | ||||||||||
Contractual Interest Expense [Line Items] | ||||||||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 16,500 | $ 32,900 | ||||||||
|
Components of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||
Earnings Per Share [Abstract] | |||||||||
Net loss | $ (61,980) | $ (80,129) | $ (95,453) | $ (137,294) | |||||
Less: Preferred stock dividends | [1] | (2,820) | (6,067) | (5,972) | (12,134) | ||||
Net income (loss) attributable to common shareholders, Basic | (64,800) | (86,196) | (101,425) | (149,428) | |||||
Net loss attributable to common shareholders, Diluted | $ (64,800) | $ (86,196) | $ (101,425) | $ (149,428) | |||||
Weighted-average shares – basic | 89,051 | 72,398 | 87,496 | 72,330 | |||||
Effect of dilutive securities | [2] | 0 | 0 | 0 | 0 | ||||
Weighted-average shares – diluted | 89,051 | 72,398 | 87,496 | 72,330 | |||||
Potentially dilutive securities with the effect of being anti-dilutive excluded from the calculation of diluted earnings per common share | 26,600 | 31,300 | |||||||
|
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