ý | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2017 OR |
¨ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Delaware | 73-1521290 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) | |
3001 Quail Springs Parkway Oklahoma City, Oklahoma | 73134 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, par value $0.01 per share | The NASDAQ Stock Market LLC |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
March 31, 2017 | December 31, 2016 | ||||||
(In thousands, except share data) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 102,485 | $ | 1,275,875 | |||
Restricted cash | — | 185,000 | |||||
Accounts receivable—oil and gas | 158,154 | 136,761 | |||||
Accounts receivable—related parties | 39 | 16 | |||||
Prepaid expenses and other current assets | 16,005 | 7,639 | |||||
Short-term derivative instruments | 18,925 | 3,488 | |||||
Total current assets | 295,608 | 1,608,779 | |||||
Property and equipment: | |||||||
Oil and natural gas properties, full-cost accounting, $3,073,448 and $1,580,305 excluded from amortization in 2017 and 2016, respectively | 8,146,321 | 6,071,920 | |||||
Other property and equipment | 75,107 | 68,986 | |||||
Accumulated depletion, depreciation, amortization and impairment | (3,855,629 | ) | (3,789,780 | ) | |||
Property and equipment, net | 4,365,799 | 2,351,126 | |||||
Other assets: | |||||||
Equity investments | 251,370 | 243,920 | |||||
Long-term derivative instruments | 23,515 | 5,696 | |||||
Deferred tax asset | 4,692 | 4,692 | |||||
Other assets | 12,945 | 8,932 | |||||
Total other assets | 292,522 | 263,240 | |||||
Total assets | $ | 4,953,929 | $ | 4,223,145 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 406,139 | $ | 265,124 | |||
Asset retirement obligation—current | 195 | 195 | |||||
Short-term derivative instruments | 67,179 | 119,219 | |||||
Current maturities of long-term debt | 452 | 276 | |||||
Total current liabilities | 473,965 | 384,814 | |||||
Long-term derivative instrument | 5,259 | 26,759 | |||||
Asset retirement obligation—long-term | 41,142 | 34,081 | |||||
Long-term debt, net of current maturities | 1,631,809 | 1,593,599 | |||||
Total liabilities | 2,152,175 | 2,039,253 | |||||
Commitments and contingencies (Note 9) | |||||||
Preferred stock, $.01 par value; 5,000,000 authorized, 30,000 authorized as redeemable 12% cumulative preferred stock, Series A; 0 issued and outstanding | — | — | |||||
Stockholders’ equity: | |||||||
Common stock - $.01 par value, 200,000,000 authorized, 182,835,801 issued and outstanding at March 31, 2017 and 158,829,816 at December 31, 2016 | 1,828 | 1,588 | |||||
Paid-in capital | 4,408,236 | 3,946,442 | |||||
Accumulated other comprehensive loss | (51,685 | ) | (53,058 | ) | |||
Retained deficit | (1,556,625 | ) | (1,711,080 | ) | |||
Total stockholders’ equity | 2,801,754 | 2,183,892 | |||||
Total liabilities and stockholders’ equity | $ | 4,953,929 | $ | 4,223,145 |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(In thousands, except share data) | |||||||
Revenues: | |||||||
Gas sales | $ | 177,837 | $ | 74,094 | |||
Oil and condensate sales | 24,411 | 15,839 | |||||
Natural gas liquid sales | 31,179 | 9,293 | |||||
Net gain on gas, oil, and NGL derivatives | 99,577 | 57,735 | |||||
333,004 | 156,961 | ||||||
Costs and expenses: | |||||||
Lease operating expenses | 19,303 | 16,657 | |||||
Production taxes | 3,906 | 3,111 | |||||
Midstream gathering and processing | 47,941 | 37,652 | |||||
Depreciation, depletion and amortization | 65,991 | 65,477 | |||||
Impairment of oil and gas properties | — | 218,991 | |||||
General and administrative | 12,600 | 10,620 | |||||
Accretion expense | 282 | 247 | |||||
Acquisition expense | 1,298 | — | |||||
151,321 | 352,755 | ||||||
INCOME (LOSS) FROM OPERATIONS | 181,683 | (195,794 | ) | ||||
OTHER (INCOME) EXPENSE: | |||||||
Interest expense | 23,479 | 16,023 | |||||
Interest income | (842 | ) | (94 | ) | |||
Loss from equity method investments, net | 4,907 | 30,737 | |||||
Other income | (316 | ) | (2 | ) | |||
27,228 | 46,664 | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | 154,455 | (242,458 | ) | ||||
INCOME TAX BENEFIT | — | (191 | ) | ||||
NET INCOME (LOSS) | $ | 154,455 | $ | (242,267 | ) | ||
NET INCOME (LOSS) PER COMMON SHARE: | |||||||
Basic | $ | 0.91 | $ | (2.17 | ) | ||
Diluted | $ | 0.91 | $ | (2.17 | ) | ||
Weighted average common shares outstanding—Basic | 170,272,685 | 111,509,585 | |||||
Weighted average common shares outstanding—Diluted | 170,488,519 | 111,509,585 |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Net income (loss) | $ | 154,455 | $ | (242,267 | ) | ||
Foreign currency translation adjustment | 1,373 | 9,058 | |||||
Other comprehensive income | 1,373 | 9,058 | |||||
Comprehensive income (loss) | $ | 155,828 | $ | (233,209 | ) |
Paid-in Capital | Accumulated Other Comprehensive Income (loss) | Retained Deficit | Total Stockholders’ Equity | |||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
(In thousands, except share data) | ||||||||||||||||||||||
Balance at January 1, 2017 | 158,829,816 | $ | 1,588 | $ | 3,946,442 | $ | (53,058 | ) | $ | (1,711,080 | ) | $ | 2,183,892 | |||||||||
Net income | — | — | — | — | 154,455 | 154,455 | ||||||||||||||||
Other Comprehensive Income | — | — | — | 1,373 | — | 1,373 | ||||||||||||||||
Stock Compensation | — | — | 2,553 | — | 2,553 | |||||||||||||||||
Issuance of Common Stock for the Vitruvian Acquisition, net of related expenses | 23,852,117 | 239 | 459,242 | — | — | 459,481 | ||||||||||||||||
Issuance of Restricted Stock | 153,868 | 1 | (1 | ) | — | — | — | |||||||||||||||
Balance at March 31, 2017 | 182,835,801 | $ | 1,828 | $ | 4,408,236 | $ | (51,685 | ) | $ | (1,556,625 | ) | $ | 2,801,754 | |||||||||
Balance at January 1, 2016 | 108,322,250 | $ | 1,082 | $ | 2,824,303 | $ | (55,177 | ) | $ | (731,371 | ) | $ | 2,038,837 | |||||||||
Net loss | — | — | — | — | (242,267 | ) | (242,267 | ) | ||||||||||||||
Other Comprehensive Income | — | — | — | 9,058 | — | 9,058 | ||||||||||||||||
Stock Compensation | — | — | 3,341 | — | — | 3,341 | ||||||||||||||||
Issuance of Common Stock in public offerings, net of related expenses | 16,905,000 | 169 | 411,651 | — | — | 411,820 | ||||||||||||||||
Issuance of Restricted Stock | 100,310 | 1 | (1 | ) | — | — | — | |||||||||||||||
Balance at March 31, 2016 | 125,327,560 | $ | 1,252 | $ | 3,239,294 | $ | (46,119 | ) | $ | (973,638 | ) | $ | 2,220,789 |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 154,455 | $ | (242,267 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Accretion of discount—Asset Retirement Obligation | 282 | 247 | |||||
Depletion, depreciation and amortization | 65,991 | 65,477 | |||||
Impairment of oil and gas properties | — | 218,991 | |||||
Stock-based compensation expense | 1,532 | 2,005 | |||||
Loss from equity investments | 5,150 | 30,896 | |||||
Change in fair value of derivative instruments | (106,796 | ) | 7,685 | ||||
Deferred income tax expense (benefit) | — | (191 | ) | ||||
Amortization of loan commitment fees | 1,088 | 946 | |||||
Amortization of note discount and premium | — | (563 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Increase in accounts receivable | (21,393 | ) | (6,629 | ) | |||
Increase in accounts receivable—related party | (23 | ) | (1 | ) | |||
(Increase) decrease in prepaid expenses | (8,366 | ) | 1,150 | ||||
Increase in other assets | (4,013 | ) | — | ||||
Increase in accounts payable, accrued liabilities and other | 54,738 | 6,080 | |||||
Settlement of asset retirement obligation | — | (52 | ) | ||||
Net cash provided by operating activities | 142,645 | 83,774 | |||||
Cash flows from investing activities: | |||||||
Additions to other property and equipment | (5,444 | ) | (5,183 | ) | |||
Acquisition of oil and gas properties | (1,338,964 | ) | — | ||||
Additions to oil and gas properties | (181,834 | ) | (151,293 | ) | |||
Proceeds from sale of oil and gas properties | 3,605 | 630 | |||||
Funding of restricted cash | 185,000 | — | |||||
Contributions to equity method investments | (10,673 | ) | (1,821 | ) | |||
Distributions from equity method investments | 631 | 138 | |||||
Net cash used in investing activities | (1,347,679 | ) | (157,529 | ) | |||
Cash flows from financing activities: | |||||||
Principal payments on borrowings | — | (1,685 | ) | ||||
Borrowings on line of credit | 40,000 | — | |||||
Borrowings on term loan | 2,698 | 5,041 | |||||
Debt issuance costs and loan commitment fees | (5,733 | ) | (116 | ) | |||
Proceeds from issuance of common stock, net of offering costs | (5,321 | ) | 411,918 | ||||
Net cash provided by financing activities | 31,644 | 415,158 | |||||
Net (decrease) increase in cash and cash equivalents | (1,173,390 | ) | 341,403 | ||||
Cash and cash equivalents at beginning of period | 1,275,875 | 112,974 | |||||
Cash and cash equivalents at end of period | $ | 102,485 | $ | 454,377 | |||
Supplemental disclosure of cash flow information: | |||||||
Interest payments | $ | 347 | $ | 80 | |||
Income tax payments | $ | — | $ | — | |||
Supplemental disclosure of non-cash transactions: | |||||||
Capitalized stock based compensation | $ | 1,021 | $ | 1,336 | |||
Asset retirement obligation capitalized | $ | 6,779 | $ | 1,914 | |||
Interest capitalized | $ | 3,122 | $ | 1,862 | |||
Foreign currency translation gain on equity method investments | $ | 1,373 | $ | 9,058 |
1. | ACQUISITIONS |
(In thousands) | ||||
Consideration: | ||||
Cash, net of purchase price adjustments | $ | 1,354,093 | ||
Fair value of Gulfport’s common stock issued | 464,639 | |||
Total Consideration | $ | 1,818,732 | ||
Estimated Fair value of identifiable assets acquired and liabilities assumed: | ||||
Oil and natural gas properties | ||||
Proved properties | $ | 362,264 | ||
Unproved properties | 1,462,957 | |||
Asset retirement obligations | (6,489 | ) | ||
Total fair value of net identifiable assets acquired | $ | 1,818,732 |
(In thousands) | ||||
Revenue | $ | 26,226 |
Three months ended March 31, | ||||||||
2017 | 2016 | |||||||
(In thousands, except share data) | ||||||||
Pro forma revenue | $ | 368,903 | $ | 203,712 | ||||
Pro forma net income (loss) | $ | 175,881 | $ | (274,207 | ) | |||
Pro forma earnings (loss) per share (basic) | $ | 1.03 | $ | (2.03 | ) | |||
Pro forma earnings (loss) per share (diluted) | $ | 1.03 | $ | (2.03 | ) |
2. | PROPERTY AND EQUIPMENT |
March 31, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Oil and natural gas properties | $ | 8,146,321 | $ | 6,071,920 | |||
Office furniture and fixtures | 24,649 | 21,204 | |||||
Building | 45,204 | 42,530 | |||||
Land | 5,254 | 5,252 | |||||
Total property and equipment | 8,221,428 | 6,140,906 | |||||
Accumulated depletion, depreciation, amortization and impairment | (3,855,629 | ) | (3,789,780 | ) | |||
Property and equipment, net | $ | 4,365,799 | $ | 2,351,126 |
March 31, 2017 | |||
(In thousands) | |||
Utica | $ | 1,592,683 | |
MidCon | 1,477,643 | ||
Niobrara | 2,172 | ||
Southern Louisiana | 484 | ||
Bakken | 98 | ||
Other | 368 | ||
$ | 3,073,448 |
March 31, 2017 | March 31, 2016 | ||||||
(In thousands) | |||||||
Asset retirement obligation, beginning of period | $ | 34,276 | $ | 26,437 | |||
Liabilities incurred | 6,779 | 1,914 | |||||
Liabilities settled | — | (52 | ) | ||||
Accretion expense | 282 | 247 | |||||
Asset retirement obligation as of end of period | 41,337 | 28,546 | |||||
Less current portion | 195 | 75 | |||||
Asset retirement obligation, long-term | $ | 41,142 | $ | 28,471 |
3. | EQUITY INVESTMENTS |
Carrying value | (Income) loss from equity method investments | |||||||||||||||||
Approximate ownership % | March 31, 2017 | December 31, 2016 | Three months ended March 31, | |||||||||||||||
2017 | 2016 | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Investment in Tatex Thailand II, LLC | 23.5 | % | $ | — | $ | — | $ | (243 | ) | $ | (159 | ) | ||||||
Investment in Tatex Thailand III, LLC | 17.9 | % | — | — | — | — | ||||||||||||
Investment in Grizzly Oil Sands ULC | 24.9999 | % | 46,838 | 45,213 | 365 | 23,685 | ||||||||||||
Investment in Timber Wolf Terminals LLC | 50.0 | % | 987 | 991 | 4 | 3 | ||||||||||||
Investment in Windsor Midstream LLC | 22.5 | % | 25,815 | 25,749 | (311 | ) | (167 | ) | ||||||||||
Investment in Stingray Cementing LLC | 50.0 | % | 1,768 | 1,920 | 128 | 30 | ||||||||||||
Investment in Blackhawk Midstream LLC | 48.5 | % | — | — | — | — | ||||||||||||
Investment in Stingray Energy Services LLC | 50.0 | % | 3,967 | 4,215 | 197 | 502 | ||||||||||||
Investment in Sturgeon Acquisitions LLC | 25.0 | % | 20,458 | 20,526 | 68 | 377 | ||||||||||||
Investment in Mammoth Energy Services, Inc. | 24.2 | % | 110,875 | 111,717 | 2,158 | 6,466 | ||||||||||||
Investment in Strike Force Midstream LLC | 25.0 | % | 40,662 | 33,589 | 2,541 | — | ||||||||||||
$ | 251,370 | $ | 243,920 | $ | 4,907 | $ | 30,737 |
March 31, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Current assets | $ | 151,587 | $ | 148,733 | |||
Noncurrent assets | $ | 1,342,012 | $ | 1,305,407 | |||
Current liabilities | $ | 97,329 | $ | 57,173 | |||
Noncurrent liabilities | $ | 59,721 | $ | 67,680 |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Gross revenue | $ | 94,478 | $ | 43,307 | |||
Net loss | $ | (25,339 | ) | $ | (25,308 | ) |
4. | VARIABLE INTEREST ENTITIES |
5. | LONG-TERM DEBT |
March 31, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Revolving credit agreement (1) | $ | 40,000 | $ | — | |||
7.75% senior unsecured notes due 2020 (2) | — | — | |||||
6.625% senior unsecured notes due 2023 (3) | 350,000 | 350,000 | |||||
6.000% senior unsecured notes due 2024 (4) | 650,000 | 650,000 | |||||
6.375% senior unsecured notes due 2025 (5) | 600,000 | 600,000 | |||||
Net unamortized debt issuance costs (6) | (31,486 | ) | (27,174 | ) | |||
Construction loan (7) | 23,747 | 21,049 | |||||
Less: current maturities of long term debt | (452 | ) | (276 | ) | |||
Debt reflected as long term | $ | 1,631,809 | $ | 1,593,599 |
6. | COMMON STOCK AND CHANGES IN CAPITALIZATION |
7. | STOCK-BASED COMPENSATION |
Number of Unvested Restricted Shares | Weighted Average Grant Date Fair Value | |||||
Unvested shares as of January 1, 2017 | 613,056 | $ | 32.90 | |||
Granted | 477,768 | 17.74 | ||||
Vested | (153,868 | ) | 31.98 | |||
Forfeited | (65,438 | ) | 31.23 | |||
Unvested shares as of March 31, 2017 | 871,518 | $ | 24.88 |
8. | EARNINGS PER SHARE |
Three months ended March 31, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Income | Shares | Per Share | (Loss) | Shares | Per Share | ||||||||||||||||
(In thousands, except share data) | |||||||||||||||||||||
Basic: | |||||||||||||||||||||
Net income (loss) | $ | 154,455 | 170,272,685 | $ | 0.91 | $ | (242,267 | ) | 111,509,585 | $ | (2.17 | ) | |||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Stock options and awards | — | 215,834 | — | — | |||||||||||||||||
Diluted: | — | ||||||||||||||||||||
Net income (loss) | $ | 154,455 | 170,488,519 | $ | 0.91 | $ | (242,267 | ) | 111,509,585 | $ | (2.17 | ) |
9. | COMMITMENTS AND CONTINGENCIES |
(In thousands) | ||||
Remaining 2017 | $ | 129 | ||
2018 | 54 | |||
Total | $ | 183 |
(MMBtu per day) | |||
Remaining 2017 | 725,625 | ||
2018 | 457,000 | ||
2019 | 604,750 | ||
2020 | 518,000 | ||
2021 | 371,000 | ||
Thereafter | 276,000 | ||
Total | 2,952,375 |
(In thousands) | ||||
Remaining 2017 | $ | 143,816 | ||
2018 | 241,709 | |||
2019 | 241,708 | |||
2020 | 240,746 | |||
2021 | 239,786 | |||
Thereafter | 2,705,270 | |||
Total | $ | 3,813,035 |
(In thousands) | ||||
Remaining 2017 | $ | 39,330 | ||
2018 | 39,330 | |||
Total | $ | 78,660 |
10. | DERIVATIVE INSTRUMENTS |
Location | Daily Volume (MMBtu/day) | Weighted Average Price | |||||
Remaining 2017 | NYMEX Henry Hub | 576,845 | $ | 3.18 | |||
2018 | NYMEX Henry Hub | 543,767 | $ | 3.09 | |||
2019 | NYMEX Henry Hub | 9,863 | $ | 3.27 |
Location | Daily Volume (Bbls/day) | Weighted Average Price | |||||
Remaining 2017 | ARGUS LLS | 1,665 | $ | 52.32 | |||
Remaining 2017 | NYMEX WTI | 4,113 | $ | 54.97 | |||
2018 | NYMEX WTI | 899 | $ | 55.31 |
Location | Daily Volume (Bbls/day) | Weighted Average Price | |||||
Remaining 2017 | Mont Belvieu C3 | 3,000 | $ | 26.63 | |||
Remaining 2017 | Mont Belvieu C5 | 250 | $ | 49.14 |
Location | Daily Volume (MMBtu/day) | Weighted Average Price | |||||
Remaining 2017 | NYMEX Henry Hub | 65,000 | $ | 3.11 | |||
2018 | NYMEX Henry Hub | 80,000 | $ | 3.29 | |||
2019 | NYMEX Henry Hub | 4,932 | $ | 3.16 |
Location | Daily Volume (MMBtu/day) | Hedged Differential | |||||
Remaining 2017 | NGPL Mid-Continent | 50,000 | $ | (0.26 | ) | ||
2018 | NGPL Mid-Continent | 12,329 | $ | (0.26 | ) |
March 31, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Short-term derivative instruments - asset | $ | 18,925 | $ | 3,488 | |||
Long-term derivative instruments - asset | $ | 23,515 | $ | 5,696 | |||
Short-term derivative instruments - liability | $ | 67,179 | $ | 119,219 | |||
Long-term derivative instruments - liability | $ | 5,259 | $ | 26,759 |
Net gain (loss) on derivative instruments | |||||||
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Natural gas derivatives | $ | 86,277 | $ | 57,000 | |||
Oil derivatives | 10,905 | 1,282 | |||||
Natural gas liquids derivatives | 2,395 | (547 | ) | ||||
Total | $ | 99,577 | $ | 57,735 |
As of March 31, 2017 | |||||||||||
Gross Assets (Liabilities) | Gross Amounts | ||||||||||
Presented in the | Subject to Master | Net | |||||||||
Consolidated Balance Sheets | Netting Agreements | Amount | |||||||||
(In thousands) | |||||||||||
Derivative assets | $ | 42,440 | $ | (41,180 | ) | $ | 1,260 | ||||
Derivative liabilities | $ | (72,438 | ) | $ | 41,180 | $ | (31,258 | ) |
As of December 31, 2016 | |||||||||||
Gross Assets (Liabilities) | Gross Amounts | ||||||||||
Presented in the | Subject to Master | Net | |||||||||
Consolidated Balance Sheets | Netting Agreements | Amount | |||||||||
(In thousands) | |||||||||||
Derivative assets | $ | 9,184 | $ | (9,184 | ) | $ | — | ||||
Derivative liabilities | $ | (145,978 | ) | $ | 9,184 | $ | (136,794 | ) |
11. | FAIR VALUE MEASUREMENTS |
March 31, 2017 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Derivative Instruments | $ | — | $ | 42,440 | $ | — | |||||
Liabilities: | |||||||||||
Derivative Instruments | $ | — | $ | 72,438 | $ | — |
December 31, 2016 | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Derivative Instruments | $ | — | $ | 9,184 | $ | — | |||||
Liabilities: | |||||||||||
Derivative Instruments | $ | — | $ | 145,978 | $ | — |
12. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
13. | CONDENSED CONSOLIDATING FINANCIAL INFORMATION |
March 31, 2017 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 71,934 | $ | 30,550 | $ | 1 | $ | — | $ | 102,485 | |||||||||
Accounts receivable - oil and gas | 106,008 | 52,146 | — | — | 158,154 | ||||||||||||||
Accounts receivable - related parties | 39 | — | — | — | 39 | ||||||||||||||
Accounts receivable - intercompany | 447,275 | 35,434 | — | (482,709 | ) | — | |||||||||||||
Prepaid expenses and other current assets | 12,330 | 3,675 | — | — | 16,005 | ||||||||||||||
Short-term derivative instruments | 18,925 | — | — | — | 18,925 | ||||||||||||||
Total current assets | 656,511 | 121,805 | 1 | (482,709 | ) | 295,608 | |||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties, full-cost accounting | 5,869,066 | 2,277,984 | — | (729 | ) | 8,146,321 | |||||||||||||
Other property and equipment | 75,064 | 43 | — | — | 75,107 | ||||||||||||||
Accumulated depletion, depreciation, amortization and impairment | (3,855,594 | ) | (35 | ) | — | — | (3,855,629 | ) | |||||||||||
Property and equipment, net | 2,088,536 | 2,277,992 | — | (729 | ) | 4,365,799 | |||||||||||||
Other assets: | |||||||||||||||||||
Equity investments and investments in subsidiaries | 2,120,462 | 40,661 | 46,838 | (1,956,591 | ) | 251,370 | |||||||||||||
Long-term derivative instruments | 23,515 | — | — | — | 23,515 | ||||||||||||||
Deferred tax asset | 4,692 | — | — | — | 4,692 | ||||||||||||||
Other assets | 8,765 | 4,180 | — | — | 12,945 | ||||||||||||||
Total other assets | 2,157,434 | 44,841 | 46,838 | (1,956,591 | ) | 292,522 | |||||||||||||
Total assets | $ | 4,902,481 | $ | 2,444,638 | $ | 46,839 | $ | (2,440,029 | ) | $ | 4,953,929 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 326,175 | $ | 79,964 | $ | — | $ | — | $ | 406,139 | |||||||||
Accounts payable - intercompany | 35,005 | 447,577 | 127 | (482,709 | ) | — | |||||||||||||
Asset retirement obligation | 195 | — | — | — | 195 | ||||||||||||||
Derivative instruments | 67,179 | — | — | — | 67,179 | ||||||||||||||
Current maturities of long-term debt | 452 | — | — | — | 452 | ||||||||||||||
Total current liabilities | 429,006 | 527,541 | 127 | (482,709 | ) | 473,965 | |||||||||||||
Long-term derivative instrument | 5,259 | — | — | — | 5,259 | ||||||||||||||
Asset retirement obligation | 34,653 | 6,489 | — | — | 41,142 | ||||||||||||||
Long-term debt, net of current maturities | 1,631,809 | — | — | — | 1,631,809 | ||||||||||||||
Total liabilities | 2,100,727 | 534,030 | 127 | (482,709 | ) | 2,152,175 | |||||||||||||
Stockholders’ equity: | |||||||||||||||||||
Common stock | 1,828 | — | — | — | 1,828 | ||||||||||||||
Paid-in capital | 4,408,236 | 1,872,598 | 257,700 | (2,130,298 | ) | 4,408,236 | |||||||||||||
Accumulated other comprehensive (loss) income | (51,685 | ) | — | (49,613 | ) | 49,613 | (51,685 | ) | |||||||||||
Retained (deficit) earnings | (1,556,625 | ) | 38,010 | (161,375 | ) | 123,365 | (1,556,625 | ) | |||||||||||
Total stockholders’ equity | 2,801,754 | 1,910,608 | 46,712 | (1,957,320 | ) | 2,801,754 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 4,902,481 | $ | 2,444,638 | $ | 46,839 | $ | (2,440,029 | ) | $ | 4,953,929 |
December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 1,273,882 | $ | 1,993 | $ | — | $ | — | $ | 1,275,875 | |||||||||
Restricted Cash | 185,000 | — | — | — | $ | 185,000 | |||||||||||||
Accounts receivable - oil and gas | 137,087 | 37,496 | — | (37,822 | ) | 136,761 | |||||||||||||
Accounts receivable - related parties | 16 | — | — | — | 16 | ||||||||||||||
Accounts receivable - intercompany | 449,517 | 1,151 | — | (450,668 | ) | — | |||||||||||||
Prepaid expenses and other current assets | 6,230 | 1,409 | — | — | 7,639 | ||||||||||||||
Short-term derivative instruments | 3,488 | — | — | — | 3,488 | ||||||||||||||
Total current assets | 2,055,220 | 42,049 | — | (488,490 | ) | 1,608,779 | |||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties, full-cost accounting, | 5,655,125 | 417,524 | — | (729 | ) | 6,071,920 | |||||||||||||
Other property and equipment | 68,943 | 43 | — | — | 68,986 | ||||||||||||||
Accumulated depletion, depreciation, amortization and impairment | (3,789,746 | ) | (34 | ) | — | — | (3,789,780 | ) | |||||||||||
Property and equipment, net | 1,934,322 | 417,533 | — | (729 | ) | 2,351,126 | |||||||||||||
Other assets: | |||||||||||||||||||
Equity investments and investments in subsidiaries | 236,327 | 33,590 | 45,213 | (71,210 | ) | 243,920 | |||||||||||||
Long-term derivative instruments | 5,696 | — | — | — | 5,696 | ||||||||||||||
Deferred tax asset | 4,692 | — | — | — | 4,692 | ||||||||||||||
Other assets | 8,932 | — | — | — | 8,932 | ||||||||||||||
Total other assets | 255,647 | 33,590 | 45,213 | (71,210 | ) | 263,240 | |||||||||||||
Total assets | $ | 4,245,189 | $ | 493,172 | $ | 45,213 | $ | (560,429 | ) | $ | 4,223,145 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 255,966 | $ | 9,158 | $ | — | $ | — | $ | 265,124 | |||||||||
Accounts payable - intercompany | 31,202 | 457,163 | 126 | (488,491 | ) | — | |||||||||||||
Asset retirement obligation | 195 | — | — | — | 195 | ||||||||||||||
Derivative instruments | 119,219 | — | — | — | 119,219 | ||||||||||||||
Current maturities of long-term debt | 276 | — | — | — | 276 | ||||||||||||||
Total current liabilities | 406,858 | 466,321 | 126 | (488,491 | ) | 384,814 | |||||||||||||
Long-term derivative instrument | 26,759 | — | — | — | 26,759 | ||||||||||||||
Asset retirement obligation | 34,081 | — | — | — | 34,081 | ||||||||||||||
Long-term debt, net of current maturities | 1,593,599 | — | — | — | 1,593,599 | ||||||||||||||
Total liabilities | 2,061,297 | 466,321 | 126 | (488,491 | ) | 2,039,253 | |||||||||||||
Stockholders’ equity: | |||||||||||||||||||
Common stock | 1,588 | — | — | — | 1,588 | ||||||||||||||
Paid-in capital | 3,946,442 | 33,822 | 257,026 | (290,848 | ) | 3,946,442 | |||||||||||||
Accumulated other comprehensive (loss) income | (53,058 | ) | — | (50,931 | ) | 50,931 | (53,058 | ) | |||||||||||
Retained (deficit) earnings | (1,711,080 | ) | (6,971 | ) | (161,008 | ) | 167,979 | (1,711,080 | ) | ||||||||||
Total stockholders’ equity | 2,183,892 | 26,851 | 45,087 | (71,938 | ) | 2,183,892 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 4,245,189 | $ | 493,172 | $ | 45,213 | $ | (560,429 | ) | $ | 4,223,145 |
Three months ended March 31, 2017 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Total revenues | $ | 272,441 | $ | 60,563 | $ | — | $ | — | $ | 333,004 | |||||||||
Costs and expenses: | |||||||||||||||||||
Lease operating expenses | 17,449 | 1,854 | — | — | 19,303 | ||||||||||||||
Production taxes | 3,102 | 804 | — | — | 3,906 | ||||||||||||||
Midstream gathering and processing | 37,724 | 10,217 | — | — | 47,941 | ||||||||||||||
Depreciation, depletion, and amortization | 65,990 | 1 | — | — | 65,991 | ||||||||||||||
General and administrative | 12,874 | (275 | ) | 1 | — | 12,600 | |||||||||||||
Accretion expense | 282 | — | — | — | 282 | ||||||||||||||
Acquisition expense | — | 1,298 | — | — | 1,298 | ||||||||||||||
137,421 | 13,899 | 1 | — | 151,321 | |||||||||||||||
INCOME (LOSS) FROM OPERATIONS | 135,020 | 46,664 | (1 | ) | — | 181,683 | |||||||||||||
OTHER (INCOME) EXPENSE: | |||||||||||||||||||
Interest expense | 25,048 | (1,569 | ) | — | — | 23,479 | |||||||||||||
Interest income | (842 | ) | — | — | — | (842 | ) | ||||||||||||
(Income) loss from equity method investments and investments in subsidiaries | (42,614 | ) | 2,541 | 365 | 44,615 | 4,907 | |||||||||||||
Other (income) expense | (1,027 | ) | (189 | ) | — | 900 | (316 | ) | |||||||||||
(19,435 | ) | 783 | 365 | 45,515 | 27,228 | ||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 154,455 | 45,881 | (366 | ) | (45,515 | ) | 154,455 | ||||||||||||
INCOME TAX EXPENSE | — | — | — | — | — | ||||||||||||||
NET INCOME (LOSS) | $ | 154,455 | $ | 45,881 | $ | (366 | ) | $ | (45,515 | ) | $ | 154,455 |
Three months ended March 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Total revenues | $ | 156,751 | $ | 210 | $ | — | $ | — | $ | 156,961 | |||||||||
Costs and expenses: | |||||||||||||||||||
Lease operating expenses | 16,472 | 185 | — | — | 16,657 | ||||||||||||||
Production taxes | 3,087 | 24 | — | — | 3,111 | ||||||||||||||
Midstream gathering and processing | 37,623 | 29 | — | — | 37,652 | ||||||||||||||
Depreciation, depletion, and amortization | 65,476 | 1 | — | — | 65,477 | ||||||||||||||
Impairment of oil and gas properties | 218,991 | — | — | — | 218,991 | ||||||||||||||
General and administrative | 10,612 | 6 | 2 | — | 10,620 | ||||||||||||||
Accretion expense | 247 | — | — | — | 247 | ||||||||||||||
352,508 | 245 | 2 | — | 352,755 | |||||||||||||||
LOSS FROM OPERATIONS | (195,757 | ) | (35 | ) | (2 | ) | — | (195,794 | ) | ||||||||||
OTHER (INCOME) EXPENSE: | |||||||||||||||||||
Interest expense | 16,022 | 1 | — | — | 16,023 | ||||||||||||||
Interest income | (94 | ) | — | — | — | (94 | ) | ||||||||||||
Loss (income) from equity method investments and investments in subsidiaries | 30,773 | — | 23,685 | (23,721 | ) | 30,737 | |||||||||||||
Other income | — | (2 | ) | — | — | (2 | ) | ||||||||||||
46,701 | (1 | ) | 23,685 | (23,721 | ) | 46,664 | |||||||||||||
(LOSS) INCOME BEFORE INCOME TAXES | (242,458 | ) | (34 | ) | (23,687 | ) | 23,721 | (242,458 | ) | ||||||||||
INCOME TAX BENEFIT | (191 | ) | (191 | ) | |||||||||||||||
NET (LOSS) INCOME | $ | (242,267 | ) | $ | (34 | ) | $ | (23,687 | ) | $ | 23,721 | $ | (242,267 | ) |
Three months ended March 31, 2017 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Net income (loss) | $ | 154,455 | $ | 45,881 | $ | (366 | ) | $ | (45,515 | ) | $ | 154,455 | |||||||
Foreign currency translation adjustment | 1,373 | 55 | 1,318 | (1,373 | ) | 1,373 | |||||||||||||
Other comprehensive income (loss) | 1,373 | 55 | 1,318 | (1,373 | ) | 1,373 | |||||||||||||
Comprehensive income (loss) | $ | 155,828 | $ | 45,936 | $ | 952 | $ | (46,888 | ) | $ | 155,828 |
Three months ended March 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Net (loss) income | $ | (242,267 | ) | $ | (34 | ) | $ | (23,687 | ) | $ | 23,721 | $ | (242,267 | ) | |||||
Foreign currency translation adjustment | 9,058 | — | 10,273 | (10,273 | ) | 9,058 | |||||||||||||
Other comprehensive income (loss) | 9,058 | — | 10,273 | (10,273 | ) | 9,058 | |||||||||||||
Comprehensive (loss) income | $ | (233,209 | ) | $ | (34 | ) | $ | (13,414 | ) | $ | 13,448 | $ | (233,209 | ) |
Three months ended March 31, 2017 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 139,260 | $ | 3,384 | $ | 1 | $ | — | $ | 142,645 | |||||||||
Net cash (used in) provided by investing activities | (1,372,852 | ) | (1,348,964 | ) | (673 | ) | 1,374,810 | (1,347,679 | ) | ||||||||||
Net cash provided by (used in) financing activities | 31,644 | 1,374,137 | 673 | (1,374,810 | ) | 31,644 | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (1,201,948 | ) | 28,557 | 1 | — | (1,173,390 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 1,273,882 | 1,993 | — | — | 1,275,875 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 71,934 | $ | 30,550 | $ | 1 | $ | — | $ | 102,485 |
Three months ended March 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 83,620 | $ | 155 | $ | (1 | ) | $ | — | $ | 83,774 | ||||||||
Net cash (used in) provided by investing activities | (157,529 | ) | (22,500 | ) | (1,821 | ) | 24,321 | (157,529 | ) | ||||||||||
Net cash provided by (used in) financing activities | 415,158 | 22,500 | 1,821 | (24,321 | ) | 415,158 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 341,249 | 155 | (1 | ) | — | 341,403 | |||||||||||||
Cash and cash equivalents at beginning of period | 112,494 | 479 | 1 | — | 112,974 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 453,743 | $ | 634 | $ | — | $ | — | $ | 454,377 |
14. | RECENT ACCOUNTING PRONOUNCEMENTS |
15. | SUBSEQUENT EVENTS |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Production increased 21% to 76,461 net million cubic feet of natural gas equivalent, or MMcfe, for the three months ended March 31, 2017 from 62,993 MMcfe for the three months ended March 31, 2016. Our net daily production mix for the 2017 period was comprised of approximately 87% of natural gas, 9% of natural gas liquids, or NGLs, and 4% of oil. |
• | On February 17, 2017, we, through our wholly-owned subsidiary Gulfport MidCon LLC, or Gulfport MidCon, (formerly known as SCOOP Acquisition Company, LLC), completed our acquisition, which we refer to as the Acquisition, of certain assets from Vitruvian II Woodford, LLC, an unrelated third-party seller, for a total purchase price of approximately $1.85 billion, consisting of $1.35 billion in cash, subject to certain adjustments and approximately 23.9 million shares of the Company’s common stock (of which approximately 5.2 million shares were |
• | During the three months ended March 31, 2017, we spud 26 gross (23.5 net) wells in the Utica Shale, participated in an additional six gross (2.0 net) wells that were drilled by other operators on our Utica Shale acreage and spud three gross and net wells and recompleted 39 gross and net wells on our Louisiana acreage. In addition, during the period from January 1, 2017 to March 31, 2017, five gross (4.2 net) wells were spud in the SCOOP, of which one gross well was spud by Gulfport after the closing of the acquisition on February 17, 2017. We also participated in an additional ten gross (0.5 net) wells that were drilled by other operators on our SCOOP acreage. Of the 34 new wells spud at March 31, 2017, 23 were in various stages of completion and 11 were being drilled. In addition, we turned-to-sales five gross (4.7 net) operated wells and 12 gross (0.8 net) non-operated wells during the three months ended March 31, 2017. |
• | During the three months ended March 31, 2017, we reduced our unit lease operating expense by 5% to $0.25 per Mcfe from $0.26 per Mcfe during the three months ended March 31, 2016. |
• | During the three months ended March 31, 2017, we decreased our unit general and administrative expense by 2% to $0.16 per Mcfe from $0.17 per Mcfe during the three months ended March 31, 2016. |
• | the quality and quantity of available data; |
• | the interpretation of that data; |
• | the accuracy of various mandated economic assumptions; and |
• | the judgments of the individuals preparing the estimates. |
• | A $41.8 million increase in natural gas, oil and NGL sales due to a favorable change in gains and losses from derivative instruments. Of the total change, $114.4 million was due to favorable changes in the fair value of our open derivative positions in each period, offset by $72.6 million unfavorable change in settlements related to our derivative positions. |
• | A $103.7 million increase in gas sales without the impact of derivatives due to a 93% increase in natural gas market prices and a 24% increase in gas sales volumes. |
• | An $8.6 million increase in oil and condensate sales without the impact of derivatives due to an 81% increase in oil and condensate market prices, partially offset by a 15% decrease in oil and condensate sales volumes. |
• | A $21.9 million increase in natural gas liquids sales without the impact of derivatives due to a 187% increase in natural gas liquids market prices and a 17% increase in natural gas liquids sales volumes. |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
($ In thousands) | |||||||
Gas sales | |||||||
Gas production volumes (MMcf) | 66,284 | 53,307 | |||||
Total gas sales | $ | 177,837 | $ | 74,094 | |||
Gas sales without the impact of derivatives ($/Mcf) | $ | 2.68 | $ | 1.39 | |||
Impact from settled derivatives ($/Mcf) | $ | (0.11 | ) | $ | 1.10 | ||
Average gas sales price, including settled derivatives ($/Mcf) | $ | 2.57 | $ | 2.49 | |||
Oil and condensate sales | |||||||
Oil and condensate production volumes (MBbls) | 514 | 602 | |||||
Total oil and condensate sales | $ | 24,411 | $ | 15,839 | |||
Oil and condensate sales without the impact of derivatives ($/Bbl) | $ | 47.52 | $ | 26.32 | |||
Impact from settled derivatives ($/Bbl) | $ | 0.16 | $ | 10.54 | |||
Average oil and condensate sales price, including settled derivatives ($/Bbl) | $ | 47.68 | $ | 36.86 | |||
Natural gas liquids sales | |||||||
Natural gas liquids production volumes (MGal) | 49,667 | 42,527 | |||||
Total natural gas liquids sales | $ | 31,179 | $ | 9,293 | |||
Natural gas liquids sales without the impact of derivatives ($/Gal) | $ | 0.63 | $ | 0.22 | |||
Impact from settled derivatives ($/Gal) | $ | — | $ | 0.01 | |||
Average natural gas liquids sales price, including settled derivatives ($/Gal) | $ | 0.63 | $ | 0.23 | |||
Gas, oil and condensate and natural gas liquids sales | |||||||
Gas equivalents (MMcfe) | 76,461 | 62,993 | |||||
Total gas, oil and condensate and natural gas liquids sales | $ | 233,427 | $ | 99,226 | |||
Gas, oil and condensate and natural gas liquids sales without the impact of derivatives ($/Mcfe) | $ | 3.05 | $ | 1.58 | |||
Impact from settled derivatives ($/Mcfe) | $ | (0.09 | ) | $ | 1.03 | ||
Average gas, oil and condensate and natural gas liquids sales price, including settled derivatives ($/Mcfe) | $ | 2.96 | $ | 2.61 | |||
Production Costs: | |||||||
Average production costs (per Mcfe) | $ | 0.25 | $ | 0.26 | |||
Average production taxes and midstream costs (per Mcfe) | $ | 0.68 | $ | 0.65 | |||
Total production and midstream costs and production taxes (per Mcfe) | $ | 0.93 | $ | 0.91 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Location | Daily Volume (MMBtu/day) | Weighted Average Price | |||||
Remaining 2017 | NYMEX Henry Hub | 576,845 | $ | 3.18 | |||
2018 | NYMEX Henry Hub | 543,767 | $ | 3.09 | |||
2019 | NYMEX Henry Hub | 9,863 | $ | 3.27 |
Location | Daily Volume (Bbls/day) | Weighted Average Price | |||||
Remaining 2017 | ARGUS LLS | 1,665 | $ | 52.32 | |||
Remaining 2017 | NYMEX WTI | 4,113 | $ | 54.97 | |||
2018 | NYMEX WTI | 899 | $ | 55.31 |
Location | Daily Volume (Bbls/day) | Weighted Average Price | |||||
Remaining 2017 | Mont Belvieu C3 | 3,000 | $ | 26.63 | |||
Remaining 2017 | Mont Belvieu C5 | 250 | $ | 49.14 |
Location | Daily Volume (MMBtu/day) | Weighted Average Price | |||||
Remaining 2017 | NYMEX Henry Hub | 65,000 | $ | 3.11 | |||
2018 | NYMEX Henry Hub | 80,000 | $ | 3.29 | |||
2019 | NYMEX Henry Hub | 4,932 | $ | 3.16 |
Location | Daily Volume (MMBtu/day) | Hedged Differential | |||||
Remaining 2017 | NGPL Mid-Continent | 50,000 | $ | (0.26 | ) | ||
2018 | NGPL Mid-Continent | 12,329 | $ | (0.26 | ) |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit Number | Description | |
3.1 | Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Form 8-K, File No. 000-19514, filed by the Company with the SEC on April 26, 2006). | |
3.2 | Certificate of Amendment No. 1 to Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.2 to Form 10-Q, File No. 000-19514, filed by the Company with the SEC on November 6, 2009). | |
3.3 | Certificate of Amendment No. 2 to Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Form 8-K, File No. 000-19514, filed by the Company with the SEC on July 23, 2013). | |
3.4 | Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Form 8-K, File No. 000-19514, filed by the Company with the SEC on July 12, 2006). | |
3.5 | First Amendment to the Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Form 8-K, File No. 000-19514, filed by the Company with the SEC on July 23, 2013). | |
3.6 | Second Amendment to the Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Form 8-K, File No. 000-19514, filed by the Company on May 2, 2014). | |
4.1 | Form of Common Stock certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 2 to the Registration Statement on Form SB-2, File No. 333-115396, filed by the Company with the SEC on July 22, 2004). | |
4.5 | Indenture, dated as of April 21, 2015, among the Company, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee (including the form of the Company’s 6.625% Senior Notes due 2023) (incorporated by reference to Exhibit 4.1 to the Form 8-K, File No. 000-19514, filed by the Company with the SEC on April 21, 2015). | |
4.6 | Indenture, dated as of October 14, 2016, among Gulfport Energy Corporation, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee (including the form of Gulfport Energy Corporation’s 6.000% Senior Notes due 2024) (incorporated by reference to Exhibit 4.1 to the Form 8-K, File. No. 000-19514, filed by the Company with the SEC on October 19, 2016). | |
4.7 | Registration Rights Agreement, dated as of October 14, 2016, among Gulfport Energy Corporation, the subsidiary guarantors party thereto and Credit Suisse Securities (USA) LLC and Scotia Capital (USA) Inc., as representatives of the several initial purchasers (incorporated by reference to Exhibit 4.2 to the Form 8-K, File. No. 000-19514, filed by the Company with the SEC on October 19, 2016). | |
4.8 | Indenture, dated as of December 21, 2016, among Gulfport Energy Corporation, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee (including the form of Gulfport Energy Corporation’s 6.375% Senior Notes due 2025) (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, File No. 000-19514, filed by the Company with the SEC on December 21, 2016). | |
4.9 | Registration Rights Agreement, dated as of December 21, 2016, among Gulfport Energy Corporation, the subsidiary guarantors party thereto and Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the several initial purchasers (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, File No. 000-19514, filed by the Company with the SEC on December 21, 2016). | |
4.10 | Registration Rights Agreement, dated as of February 17, 2017, by and between Gulfport Energy Corporation and Vitruvian II Woodford, LLC (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, File No. 000-19514, filed by the Company with the SEC on February 24, 2017). | |
10.1 | Eighth Amendment to Amended and Restated Credit Agreement, entered into as of March 29, 2017, among Gulfport Energy Corporation, as borrower, The Bank of Nova Scotia, as administrative agent and L/C issuer, and the lenders party thereto (incorporated by reference to Exhibit 10.1 to the Form 8-K, File No. 000-19514, filed by the Company with the SEC on April 4, 2017). | |
10.2* | Ninth Amendment to Amended and Restated Credit Agreement, entered into as of May 4, 2017, among Gulfport Energy Corporation, as borrower, The Bank of Nova Scotia, as administrative agent and L/C issuer, the existing lenders named therein and JPMorgan Chase Bank, N.A., Commonwealth Bank of Australia, ABN, AMRO Capital USA LLC, Fifth Third Bank and Canadian Imperial Bank of Commerce, New York branch, as new lenders. | |
10.3* | Employment Agreement, entered into as of April 28, 2017, effective as of January 1, 2017, by and between Gulfport Energy Corporation and Keri Crowell. | |
10.4* | Employment Agreement, entered into as of April 28, 2017, effective as of January 1, 2017, by and between Gulfport Energy Corporation and Stuart Maier. | |
10.5* | Employment Agreement, entered into as of April 28, 2017, effective as of January 1, 2917, by and between Gulfport Energy Corporation and Steve Baldwin. | |
31.1* | Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. | |
31.2* | Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. | |
32.1* | Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code. | |
32.2* | Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code. | |
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 Labels Linkbase Document. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. |
GULFPORT ENERGY CORPORATION | ||
By: | /s/ Keri Crowell | |
Keri Crowell Chief Financial Officer |
BORROWER | |||
GULFPORT ENERGY CORPORATION | |||
By: | /s/ Keri Crowell | ||
Keri Crowell | |||
Chief Financial Officer |
ADMINISTRATIVE AGENT: | |||
THE BANK OF NOVA SCOTIA, as Administrative Agent and L/C Issuer | |||
By: | /s/ Alan Dawson | ||
Alan Dawson | |||
Director | |||
LENDERS: | |||
THE BANK OF NOVA SCOTIA, as a Lender | |||
By: | /s/ Alan Dawson | ||
Alan Dawson | |||
Director |
KEYBANK NATIONAL ASSOCIATION, | |||
as a Lender | |||
By: | /s/ George E. McKean | ||
Name: | George E. McKean | ||
Title: | Senior Vice President |
CREDIT SUISSE AG, | |||
Cayman Islands Branch, | |||
as a Lender | |||
By: | /s/ Nupur Kumar | ||
Name: | Nupur Kumar | ||
Title: | Authorized Signatory | ||
By: | /s/ Warren Van Heyst | ||
Name: | Warren Van Heyst | ||
Title: | Authorized Signatory |
BARCLAYS BANK PLC, | |||
as a Lender | |||
By: | /s/ Vanessa Kurbatskiy | ||
Name: | Vanessa Kurbatskiy | ||
Title: | Vice President |
WELLS FARGO BANK, N.A., | |||
as a Lender | |||
By: | /s/ Matt Coleman | ||
Name: | Matt Coleman | ||
Title: | Director |
ZB, N.A. dba AMEGY BANK, | |||
as a Lender | |||
By: | /s/ Jill McSorley | ||
Name: | Jill McSorley | ||
Title: | Senior Vice President - Amegy Bank Division |
COMPASS BANK, | |||
as a Lender | |||
By: | /s/ Gabriela Azcarate | ||
Name: | Gabriela Azcarate | ||
Title: | Vice President |
PNC BANK, NATIONAL ASSOCIATION, | |||
as a Lender | |||
By: | /s/ Sandra Aultman | ||
Name: | Sandra Aultman | ||
Title: | Managing Director |
U.S. BANK NATIONAL ASSOCIATION, | |||
as a Lender | |||
By: | /s/ Nicholas T. Hanford | ||
Name: | Nicholas T. Hanford | ||
Title: | Vice President |
ASSOCIATED BANK, N.A., | |||
as a Lender | |||
By: | /s/ Kyle Lewis | ||
Name: | Kyle Lewis | ||
Title: | Senior Vice President |
IBERIABANK, | |||
as a Lender | |||
By: | /s/ Moni Collins | ||
Name: | Moni Collins | ||
Title: | Senior Vice President |
MORGAN STANLEY SENIOR FUNDING, INC., | |||
as a Lender | |||
By: | /s/ Michael King | ||
Name: | Michael King | ||
Title: | Vice President |
BOKF, NA DBA BANK OF OKLAHOMA, | |||
as a Lender | |||
By: | /s/ John Krenger | ||
Name: | John Krenger | ||
Title: | Vice President |
JPMORGAN CHASE BANK, N.A., | |||
as a Lender | |||
By: | /s/ Arina Mavilian | ||
Name: | Arina Mavilian | ||
Title: | Authorized Signatory |
COMMONWEALTH BANK OF AUSTRALIA, | |||
as a Lender | |||
By: | /s/ Sanjay Remond | ||
Name: | Sanjay Remond | ||
Title: | Director |
ABN AMRO CAPITAL USA LLC, | |||
as a Lender | |||
By: | /s/ R. Bisscheroux | ||
Name: | R. Bisscheroux | ||
Title: | Executive Director | ||
By: | /s/ Elizabeth Johnson | ||
Name: | Elizabeth Johnson | ||
Title: | Director |
FIFTH THIRD BANK, | |||
as a Lender | |||
By: | /s/ Thomas Kleiderer | ||
Name: | Thomas Kleiderer | ||
Title: | Director |
CANADIAN IMPERIAL BANK OF COMMERCE, | |||
NEW YORK BRANCH, | |||
as a Lender | |||
By: | /s/ Trudy Nelson | ||
Name: | Trudy Nelson | ||
Title: | Authorized Signatory | ||
By: | /s/ William M. Reid | ||
Name: | William M. Reid | ||
Title: | Authorized Signatory | ||
Name | Number of Shares or Percentage Ownership | Principal Business Activity |
Blackhawk Midstream LLC | 48.5% | Coordinates gathering, compression, processing and marketing activities for the Company in connection with the development of its Utica Shale acreage. |
Grizzly Oil Sands ULC | 24.9999% | Owns leasehold interests in the oil sands regions of Alberta, Canada and is engaged in the development and production of such leasehold interests. |
Stingray Cementing LLC | 50% | Provides well cementing services. |
Stingray Energy Services LLC | 50% | Provides rental tools for land-based oil and natural gas drilling, completion and workover activities as well as the transfer of fresh water to wellsites. |
Sturgeon Acquisitions LLC | 25% | Owns Taylor Frac, LLC and related assets comprising a frac sand business. |
Tatex Thailand II, LLC | 23.5% | Owns interests in APICO, LLC, an international oil and gas exploration company. |
Tatex Thailand III, LLC | 17.9% | Previously owned a concession in Southeast Asia. |
Timber Wolf Terminals LLC | 50% | Formed to operate a crude/condensate terminal and a sand transloading facility in Ohio. |
Windsor Midstream LLC | 22.5% | Previously owned an interest in MidMar Gas LLC, a gas processing plant in West Texas. |
Lender | Applicable Percentage | Commitment | |||||
The Bank of Nova Scotia | 10.000000000 | % | $100,000,000 | ||||
KeyBank National Association | 8.500000000 | % | $85,000,000 | ||||
PNC Bank, National Association | 8.500000000 | % | $85,000,000 | ||||
Credit Suisse AG, Cayman Islands Branch | 6.500000000 | % | $65,000,000 | ||||
Barclays Bank PLC | 6.500000000 | % | $65,000,000 | ||||
Wells Fargo Bank, N.A. | 6.500000000 | % | $65,000,000 | ||||
Compass Bank | 6.500000000 | % | $65,000,000 | ||||
U.S. Bank National Association | 6.500000000 | % | $65,000,000 | ||||
JPMorgan Chase Bank, N.A. | 6.500000000 | % | $65,000,000 | ||||
Commonwealth Bank of Australia | 5.000000000 | % | $50,000,000 | ||||
ZB, N.A. dba Amegy Bank | 5.000000000 | % | $50,000,000 | ||||
ABN AMRO Capital USA LLC | 3.500000000 | % | $35,000,000 | ||||
IberiaBank | 3.500000000 | % | $35,000,000 | ||||
Morgan Stanley Senior Funding, Inc. | 3.500000000 | % | $35,000,000 | ||||
BOKF, NA dba Bank of Oklahoma | 3.500000000 | % | $35,000,000 | ||||
Fifth Third Bank | 3.500000000 | % | $35,000,000 | ||||
Canadian Imperial Bank of Commerce, New York Branch | 3.500000000 | % | $35,000,000 | ||||
Associated Bank, N.A. | 3.000000000 | % | $30,000,000 | ||||
TOTAL: | 100.000000000 | % | $1,000,000,000 |
If to the Company: | Gulfport Energy Corporation 3001 Quail Springs Parkway Oklahoma City, Oklahoma 73134 Attention: Board of Directors |
If to Executive: | Executive’s address in the Company’s personnel records |
Date: April 28, 2017 | THE “COMPANY” GULFPORT ENERGY CORPORATION By: /s/ Michael G. Moore Name: Michael G. Moore Title: Chief Executive Officer and President |
Date: April 28, 2017 | THE “EXECUTIVE” /s/ Keri Crowell Keri Crowell, in her individual capacity |
If to the Company: | Gulfport Energy Corporation 3001 Quail Springs Parkway Oklahoma City, Oklahoma 73134 Attention: Board of Directors |
If to Executive: | Executive’s address in the Company’s personnel records |
Date: April 28, 2017 | THE “COMPANY” GULFPORT ENERGY CORPORATION By: /s/ Michael G. Moore Name: Michael G. Moore Title: Chief Executive Officer and President |
Date: April 6, 2017 | THE “EXECUTIVE” /s/ Stuart Maier Stuart Maier, in his individual capacity |
If to the Company: | Gulfport Energy Corporation 3001 Quail Springs Parkway Oklahoma City, Oklahoma 73134 Attention: Board of Directors |
If to Executive: | Executive’s address in the Company’s personnel records |
Date: April 28, 2017 | THE “COMPANY” GULFPORT ENERGY CORPORATION By: /s/ Michael G. Moore Name: Michael G. Moore Title: Chief Executive Officer and President |
Date: April 6, 2017 | THE “EXECUTIVE” /s/ Steve Baldwin Steve Baldwin, in his individual capacity |
(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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 controls 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 controls over financial reporting. |
/s/ Michael G. Moore | |
Michael G. Moore | |
Chief Executive Officer and President |
(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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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 controls 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 controls over financial reporting. |
/s/ Keri Crowell | |
Keri Crowell | |
Chief Financial Officer |
(1) | the Quarterly Report on Form10-Q of the Company for the quarterly period ended March 31, 2017 (the “Report”) fully complies with the requirements of Section 13 (a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); 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/ Michael G. Moore | |
Michael G. Moore | |
Chief Executive Officer and President |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2017 (the “Report”) fully complies with the requirements of Section 13 (a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); 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/ Keri Crowell | |
Keri Crowell | |
Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 01, 2017 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Entity Registrant Name | GULFPORT ENERGY CORP | |
Entity Central Index Key | 0000874499 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2017 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Entity Common Stock, Shares Outstanding | 182,835,801 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Financial Position [Abstract] | ||
Capitalized costs of oil and natural gas properties excluded from amortization | $ 3,073,448 | $ 1,580,305 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock dividend rate, percent | 12.00% | 12.00% |
Temporary equity, shares authorized (shares) | 30,000 | 30,000 |
Preferred stock Series A, issued (shares) | 0 | 0 |
Preferred stock Series A, outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares, issued (shares) | 182,835,801 | 158,829,816 |
Common stock, shares, outstanding (shares) | 182,835,801 | 158,829,816 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 154,455 | $ (242,267) |
Foreign currency translation adjustment | 1,373 | 9,058 |
Other comprehensive income | 1,373 | 9,058 |
Comprehensive income (loss) | $ 155,828 | $ (233,209) |
Acquisitions |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS Vitruvian Acquisition In December 2016, the Company, through its wholly-owned subsidiary Gulfport MidCon LLC (“Gulfport MidCon”) (formerly known as SCOOP Acquisition Company, LLC), entered into an agreement to acquire certain assets of Vitruvian II Woodford, LLC (“Vitruvian”), an unrelated third-party seller (the “Vitruvian Acquisition”). The assets included in the Vitruvian Acquisition include 46,400 net surface acres located in Grady, Stephens and Garvin Counties, Oklahoma. On February 17, 2017, the Company completed the Vitruvian Acquisition for a total initial purchase price of approximately $1.85 billion, consisting of $1.35 billion in cash, subject to certain adjustments, and approximately 23.9 million shares of the Company’s common stock (of which approximately 5.2 million shares were placed in an indemnity escrow). The cash portion of the purchase price was funded with the net proceeds from the December 2016 common stock and senior note offerings and cash on hand. Acquisition costs of $1.3 million were incurred during the three months ended March 31, 2017 related to the Vitruvian Acquisition. Allocation of Purchase Price The Vitruvian Acquisition qualified as a business combination for accounting purposes and, as such, the Company estimated the fair value of the acquired properties as of the February 17, 2017 acquisition date. The fair value of the assets acquired and liabilities assumed was estimated using assumptions that represent Level 3 inputs. See Note 11 for additional discussion of the measurement inputs. The Company estimated that the consideration paid in the Vitruvian Acquisition for these properties approximated the fair value that would be paid by a typical market participant. As a result, no goodwill or bargain purchase gain was recognized in conjunction with the purchase. The following table summarizes the consideration paid in the Vitruvian Acquisition to acquire the properties and the fair value amount of the assets acquired as of February 17, 2017. Both the consideration paid and the fair value assigned to the assets is preliminary and subject to adjustment.
The equity consideration included in the initial purchase price was based on an equity offering price of $20.96 on December 15, 2016. The decrease in the price of Gulfport’s common stock from $20.96 on December 15, 2016 to $19.48 on February 17, 2017 resulted in a decrease to the fair value of the total consideration paid as compared to the initial purchase price of approximately $35.3 million, which resulted in a closing date fair value lower than the initial purchase price. Post-Acquisition Operating Results For the period from the acquisition date of February 17, 2017 to March 31, 2017, the assets acquired in the Vitruvian Acquisition have contributed the following amounts of revenue to the Company’s consolidated statements of operations. The amount of net income contributed by the assets acquired is not presented below as it is impracticable to calculate due to the Company integrating the acquired assets into its overall operations using the full cost method of accounting.
Pro Forma Information (Unaudited) The following unaudited pro forma combined financial information presents the Company’s results as though the Vitruvian Acquisition had been completed at January 1, 2016. The pro forma combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Vitruvian Acquisition taken place on January 1, 2016; furthermore, the financial information is not intended to be a projection of future results.
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of March 31, 2017 and December 31, 2016 are as follows:
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the oil and gas properties. At March 31, 2017, the calculated ceiling was greater than the net book value of the Company’s oil and natural gas properties, thus no ceiling test impairment was required for the three months ended March 31, 2017. An impairment of $219.0 million was required for oil and natural gas properties for the three months ended March 31, 2016. Included in oil and natural gas properties at March 31, 2017 is the cumulative capitalization of $138.3 million in general and administrative costs incurred and capitalized to the full cost pool. General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities were charged to expense as they were incurred. Capitalized general and administrative costs were approximately $8.4 million and $7.1 million for three months ended March 31, 2017 and 2016, respectively. The following table summarizes the Company’s non-producing properties excluded from amortization by area at March 31, 2017:
At December 31, 2016, approximately $1.6 billion of non-producing leasehold costs was not subject to amortization. The Company evaluates the costs excluded from its amortization calculation at least annually. Subject to industry conditions and the level of the Company’s activities, the inclusion of most of the above referenced costs into the Company’s amortization calculation typically occurs within three to five years. However, the majority of the Company’s non-producing leases have five-year extension terms which could extend this time frame beyond five years. A reconciliation of the Company’s asset retirement obligation for the three months ended March 31, 2017 and 2016 is as follows:
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Equity Investments |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investments | EQUITY INVESTMENTS Investments accounted for by the equity method consist of the following as of March 31, 2017 and December 31, 2016:
The tables below summarize financial information for the Company’s equity investments as of March 31, 2017 and December 31, 2016. Summarized balance sheet information:
Summarized results of operations:
Tatex Thailand II, LLC The Company has an indirect ownership interest in Tatex Thailand II, LLC (“Tatex II”). Tatex II holds an 8.5% interest in APICO, LLC (“APICO”), an international oil and gas exploration company. APICO has a reserve base located in Southeast Asia through its ownership of concessions covering approximately 180,000 acres which includes the Phu Horm Field. The Company received $0.2 million and $0.2 million in distributions from Tatex II during the three months ended March 31, 2017 and 2016, respectively. Tatex Thailand III, LLC The Company has an ownership interest in Tatex Thailand III, LLC (“Tatex III”). Tatex III previously owned a concession covering approximately 245,000 acres in Southeast Asia. As of December 31, 2014, the Company reviewed its investment in Tatex III and, together with Tatex III, made the decision to allow the concession to expire in January 2015. As such, the Company fully impaired the asset as of December 31, 2014. Grizzly Oil Sands ULC The Company, through its wholly owned subsidiary Grizzly Holdings Inc. (“Grizzly Holdings”), owns an interest in Grizzly Oil Sands ULC (“Grizzly”), a Canadian unlimited liability company. The remaining interest in Grizzly is owned by Grizzly Oil Sands Inc. (“Oil Sands”). As of March 31, 2017, Grizzly had approximately 830,000 acres under lease in the Athabasca and Peace River oil sands regions of Alberta, Canada. Initiation of steam injection at its first project, Algar Lake Phase 1, commenced in January 2014 and first bitumen production was achieved during the second quarter of 2014. In April 2015, Grizzly determined to cease bitumen production at its Algar Lake facility due to the level of commodity prices. Grizzly continues to monitor market conditions as it assesses future plans for the facility. The Company reviewed its investment in Grizzly at March 31, 2016 for impairment based on FASB ASC 323 due to certain qualitative factors and as such, engaged an independent third party to assist management in determining fair value calculations of its investment. As a result of the calculated fair values and other qualitative factors, the Company concluded that an other than temporary impairment was required under FASB ASC 323, resulting in an impairment loss of $23.1 million for the three months ended March 31, 2016, which is included in loss from equity method investments, net in the consolidated statements of operations. As of and during the period ended March 31, 2017, commodity prices had increased as compared to the quarter ended March 31, 2016, and there were no impairment indicators that required further evaluation for impairment. If commodity prices decline in the future however, further impairment of the investment in Grizzly may be necessary. During the three months ended March 31, 2017, Gulfport paid $0.7 million in cash calls. Grizzly’s functional currency is the Canadian dollar. The Company’s investment in Grizzly was increased by $1.3 million and $10.3 million as a result of a foreign currency translation gain for the three months ended March 31, 2017 and 2016, respectively. Timber Wolf Terminals LLC During 2012, the Company invested in Timber Wolf Terminals LLC (“Timber Wolf”). Timber Wolf was formed to operate a crude/condensate terminal and a sand transloading facility in Ohio. Windsor Midstream LLC At March 31, 2017, the Company held a 22.5% interest in Windsor Midstream LLC (“Midstream”). Midstream holds common units of EnLink Midstream Partners, LP (“EnLink”) as a result of the sale of Coronado Midstream LLC to EnLink that occurred in March 2015. The Company received $0.2 million and $0.1 million in distributions from Midstream during the three months ended March 31, 2017 and 2016, respectively. Stingray Cementing LLC During 2012, the Company invested in Stingray Cementing LLC (“Stingray Cementing”). Stingray Cementing provides well cementing services. The (income) loss from equity method investments presented in the table above reflects any intercompany profit eliminations. See Note 15 for subsequent event information regarding Mammoth Energy Services, Inc.’s pending acquisition of Stingray Cementing. Blackhawk Midstream LLC During 2012, the Company invested in Blackhawk Midstream LLC (“Blackhawk”). Blackhawk coordinated gathering, compression, processing and marketing activities for the Company in connection with the development of its Utica Shale acreage. Blackhawk does not have any current activities. Stingray Energy Services LLC During 2013, the Company invested in Stingray Energy Services LLC (“Stingray Energy”). Stingray Energy provides rental tools for land-based oil and natural gas drilling, completion and workover activities as well as the transfer of fresh water to wellsites. The (income) loss from equity method investments presented in the table above reflects any intercompany profit eliminations. See Note 15 for subsequent event information regarding Mammoth Energy Services, Inc.’s pending acquisition of Stingray Energy. Sturgeon Acquisitions LLC During 2014, the Company invested $20.7 million and received an ownership interest of 25% in Sturgeon Acquisitions LLC (“Sturgeon”). Sturgeon owns and operates sand mines that produce hydraulic fracturing grade sand. See Note 15 for subsequent event information regarding Mammoth Energy Services, Inc.’s pending acquisition of Sturgeon. Mammoth Energy Partners LP/Mammoth Energy Services, Inc. In the fourth quarter of 2014, the Company contributed its investments in four entities to Mammoth Energy Partners LP (“Mammoth”) for a 30.5% interest in this entity. Mammoth originally intended to pursue its initial public offering in 2014 or 2015; however, due to low commodity prices, the offering was postponed. In October 2016, Mammoth converted from a limited partnership into a limited liability company named Mammoth Energy Partners LLC (“Mammoth LLC”) and the Company and the other members of Mammoth LLC contributed their interests in Mammoth LLC to Mammoth Energy Services, Inc. (“Mammoth Energy”). The Company received 9,150,000 shares of Mammoth Energy common stock in return for its contribution. Following the contribution, Mammoth Energy completed its initial public offering (the “IPO”) of 7,750,000 shares of its common stock at a public offering price of $15.00 per share, of which 7,500,000 shares were sold by Mammoth Energy, and 250,000 shares were sold by certain selling stockholders, including 76,250 shares sold by the Company for which it received net proceeds of $1.1 million. At March 31, 2017, the Company owned an approximate 24.2% interest in Mammoth Energy. The Company’s investment in Mammoth Energy was increased by a $0.1 million foreign currency gain and decreased by a $1.2 million foreign currency loss resulting from Mammoth Energy’s foreign subsidiary for the three months ended March 31, 2017 and 2016, respectively. The (income) loss from equity method investments presented in the table above reflects any intercompany profit eliminations. See Note 15 for subsequent event information regarding Mammoth Energy’s pending acquisitions of Stingray Cementing, Stingray Energy and Sturgeon. Strike Force Midstream LLC In February 2016, the Company, through its wholly owned subsidiary Gulfport Midstream Holdings, LLC (“Midstream Holdings”), entered into an agreement with Rice Midstream Holdings LLC (“Rice”), a subsidiary of Rice Energy Inc., to develop natural gas gathering assets in eastern Belmont County and Monroe County, Ohio (the “dedicated areas”). The Company contributed certain gathering assets for a 25% interest in the newly formed entity called Strike Force Midstream LLC (“Strike Force”). Rice acts as operator and owns the remaining 75% interest in Strike Force. Construction of the gathering assets, which is underway, is expected to provide gathering services for Gulfport operated wells and connectivity of existing dry gas gathering systems. During the three months ended March 31, 2017, Gulfport paid $10.0 million in cash calls to Strike Force and received distributions of $0.4 million from Strike Force. The Company accounted for its contribution to Strike Force at fair value under applicable codification guidance. The Company estimated the fair market value of its investment in Strike Force as of the contribution date using the discounted cash flow method under the income approach, based on an independently prepared valuation of the contributed assets. The fair market value was reduced by a discount factor for the lack of marketability due to the Company’s minority interest, resulting in a fair value of $22.5 million for the Company’s 25% interest. The fair value of the assets contributed was estimated using assumptions that represent Level 3 inputs. See “Note 11 - Fair Value Measurements” for additional discussion of the measurement inputs. The Company has elected to report its proportionate share of Strike Force’s earnings on a one-quarter lag as permitted under FASB ASC 323. The (income) loss from equity method investments presented in the table above reflects any intercompany profit eliminations. |
Variable Interest Entities |
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Related Party Transactions [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES As of March 31, 2017, the Company held variable interests in the following variable interest entities (“VIEs”), but was not the primary beneficiary: Stingray Energy, Stingray Cementing, Sturgeon, Midstream and Timber Wolf. These entities have governing provisions that are the functional equivalent of a limited partnership and are considered VIEs because the limited partners or non-managing members lack substantive kick-out or participating rights which causes the equity owners, as a group, to lack a controlling financial interest. The Company is a limited partner or non-managing member in each of these VIEs and is not the primary beneficiary because it does not have a controlling financial interest. The general partner or managing member has power to direct the activities that most significantly impact the VIEs’ economic performance. The Company also held a variable interest in Strike Force due to the fact that it does not have sufficient equity capital at risk. The Company is not the primary beneficiary of this entity. Prior to Mammoth Energy’s IPO, Mammoth LLC was considered a variable interest entity. As a result of the Company’s contribution of its interest in Mammoth LLC to Mammoth Energy in exchange for Mammoth Energy common stock and Mammoth Energy’s IPO, the Company determined that it no longer held an interest in a variable interest entity. The Company accounts for its investment in these VIEs following the equity method of accounting. The carrying amounts of the Company’s equity investments are classified as other non-current assets on the accompanying consolidated balance sheets. The Company’s maximum exposure to loss as a result of its involvement with these VIEs is based on the Company’s capital contributions and the economic performance of the VIEs, and is equal to the carrying value of the Company’s investments which is the maximum loss the Company could be required to record in the consolidated statements of operations. See Note 3 for further discussion of these entities, including the carrying amounts of each investment. |
Long-Term Debt |
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Long-term Debt, Unclassified [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | LONG-TERM DEBT Long-term debt consisted of the following items as of March 31, 2017 and December 31, 2016:
The Company capitalized approximately $3.1 million and $1.6 million in interest expense to undeveloped oil and natural gas properties during the three months ended March 31, 2017 and 2016, respectively. During the three months ended March 31, 2016, the Company capitalized $0.3 million in interest expense related to building construction. Construction on the building was completed in December 2016 and, as such, the Company did not capitalize any interest expense related to building construction for the three months ended March 31, 2017. (1) The Company has entered into a senior secured revolving credit facility, as amended, with The Bank of Nova Scotia, as the lead arranger and administrative agent and certain lenders from time to time party thereto. The credit agreement provides for a maximum facility amount of $1.5 billion and matures on June 6, 2018. On December 13, 2016, the Company further amended its revolving credit facility to, among other things, (a) reset the maturity date to December 31, 2021, (b) adjust lenders, (c) increase the basket for unsecured debt issuances to $1.6 billion, (d) increase the interest rates by 50 basis points, (e) increase the mortgage requirement to 85% (from 80%), and (f) add deposit account control agreement language. On March 29, 2017, the Company further amended its revolving credit facility to, among other things, amend the definition of the term EBITDAX to permit pro forma treatment of acquisitions that involve the payment of consideration by Gulfport and its subsidiaries in excess of $50.0 million and of dispositions of property or series of related dispositions of properties that yields gross proceeds to Gulfport or any of its subsidiaries in excess of $50.0 million. As of March 31, 2017, the borrowing base was set at $700.0 million and $40.0 million was outstanding under the revolving credit facility. At March 31, 2017, the total availability for future borrowings under the revolving credit facility, after giving effect to an aggregate of $238.7 million of letters of credit, was $421.3 million. The Company’s wholly-owned subsidiaries have guaranteed the obligations of the Company under the revolving credit facility. On May 4, 2017, the revolving credit facility was further amended to increase the borrowing base from $700.0 million to $1.0 billion, adjust certain of the Company's investment baskets and add five additional banks to the syndicate. Advances under the revolving credit facility may be in the form of either base rate loans or eurodollar loans. The interest rate for base rate loans is equal to (1) the applicable rate, which ranges from 1.00% to 2.00%, plus (2) the highest of: (a) the federal funds rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by agent as its “prime rate,” and (c) the eurodollar rate for an interest period of one month plus 1.00%. The interest rate for eurodollar loans is equal to (1) the applicable rate, which ranges from 2.00% to 3.00%, plus (2) the London interbank offered rate that appears on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate for deposits in U.S. dollars, or, if such rate is not available, the rate as administered by ICE Benchmark Administration (or any other person that takes over administration of such rate) per annum equal to the offered rate on such other page or service that displays on average London interbank offered rate as determined by ICE Benchmark Administration (or any other person that takes over administration of such rate) for deposits in U.S. dollars, or, if such rate is not available, the average quotations for three major New York money center banks of whom the agent shall inquire as the “London Interbank Offered Rate” for deposits in U.S. dollars. At March 31, 2107, amounts borrowed under the credit facility bore interest at the eurodollar rate (3.18%). The revolving credit facility contains customary negative covenants including, but not limited to, restrictions on the Company’s and its subsidiaries’ ability to: •incur indebtedness; •grant liens; •pay dividends and make other restricted payments; •make investments; •make fundamental changes; •enter into swap contracts and forward sales contracts; •dispose of assets; •change the nature of their business; and •enter into transactions with affiliates. The negative covenants are subject to certain exceptions as specified in the revolving credit facility. The revolving credit facility also contains certain affirmative covenants, including, but not limited to the following financial covenants: (i) the ratio of net funded debt to EBITDAX (net income, excluding (i) any non-cash revenue or expense associated with swap contracts resulting from ASC 815 and (ii) any cash or non-cash revenue or expense attributable to minority investments plus without duplication and, in the case of expenses, to the extent deducted from revenues in determining net income, the sum of (a) the aggregate amount of consolidated interest expense for such period, (b) the aggregate amount of income, franchise, capital or similar tax expense (other than ad valorem taxes) for such period, (c) all amounts attributable to depletion, depreciation, amortization and asset or goodwill impairment or writedown for such period, (d) all other non-cash charges, (e) exploration costs deducted in determining net income under successful efforts accounting, (f) actual cash distributions received from minority investments, (g) to the extent actually reimbursed by insurance, expenses with respect to liability on casualty events or business interruption, and (h) all reasonable transaction expenses related to dispositions and acquisitions of assets, investments and debt and equity offerings (provided that expenses related to any unsuccessful disposition will be limited to $3.0 million in the aggregate) for a twelve-month period may not be greater than 4.00 to 1.00; and (ii) the ratio of EBITDAX to interest expense for a twelve-month period may not be less than 3.00 to 1.00. The Company was in compliance with all covenants at March 31, 2017. (2) On October 17, 2012, the Company issued $250.0 million in aggregate principal amount of 7.75% Senior Notes due 2020 (the “October Notes”) under an indenture among the Company, its subsidiary guarantors and Wells Fargo Bank, National Association, as the trustee (the “senior note indenture”). On December 21, 2012, the Company issued an additional $50.0 million in aggregate principal amount of 7.75% Senior Notes due 2020 (the “December Notes”) as additional securities under the senior note indenture. On August 18, 2014, the Company issued an additional $300.0 million in aggregate principal amount of 7.75% Senior Notes due 2020 (the “August Notes”). The August Notes were issued as additional securities under the senior note indenture. The October Notes, December Notes and the August Notes are collectively referred to as the “2020 Notes.” In October 2016, the Company repurchased (in a cash tender offer) or redeemed all of the 2020 Notes, of which $600.0 million in aggregate principal amount was then outstanding, with the net proceeds from the issuance of its 6.000% Senior Notes due 2024 (the “2024 Notes”) discussed below and cash on hand, and the indenture governing the 2020 Notes was fully satisfied and discharged. (3) On April 21, 2015, the Company issued $350.0 million in aggregate principal amount of 6.625% Senior Notes due 2023 (the “2023 Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in accordance with Regulation S under the Securities Act (the “2023 Notes Offering”). The Company received net proceeds of approximately $343.6 million after initial purchaser discounts and commissions and estimated offering expenses. The 2023 Notes were issued under an indenture, dated as of April 21, 2015, among the Company, the subsidiary guarantors party thereto and Wells Fargo Bank, National Association, as trustee. In October 2015, the 2023 Notes were exchanged for a new issue of substantially identical debt securities registered under the Securities Act. Pursuant to the indenture relating to the 2023 Notes, interest on the 2023 Notes will accrue at a rate of 6.625% per annum on the outstanding principal amount thereof from April 21, 2015, payable semi-annually on May 1 and November 1 of each year, commencing on November 1, 2015. The 2023 Notes are not guaranteed by Grizzly Holdings, Inc. and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. (4) On October 14, 2016, the Company issued the 2024 Notes in aggregate principal amount of $650.0 million. The 2024 Notes were issued under an indenture, dated as of October 14, 2016, among the Company, the subsidiary guarantors party thereto and the senior note indenture trustee (the “2024 Indenture”), to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in accordance with Regulation S under the Securities Act (the “2024 Notes Offering”). Under the 2024 Indenture, interest on the 2024 Notes accrues at a rate of 6.000% per annum on the outstanding principal amount thereof from October 14, 2016, payable semi-annually on April 15 and October 15 of each year, commencing on April 15, 2017. The 2024 Notes will mature on October 15, 2024. The Company received approximately $638.9 million in net proceeds from the offering of the 2024 Notes, which was used, together with cash on hand, to purchase the outstanding 2020 Notes in a concurrent cash tender offer, to pay fees and expenses thereof, and to redeem any of the 2020 Notes that remained outstanding after the completion of the tender offer. (5) On December 21, 2016, the Company issued $600.0 million in aggregate principal amount of 6.375% Senior Notes due 2025 (the “2025 Notes”). The 2025 Notes were issued under an indenture, dated as of December 21, 2016, among the Company, the subsidiary guarantors party thereto and the senior note indenture trustee (the “2025 Indenture”), to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. Under the 2025 Indenture, interest on the 2025 Notes accrues at a rate of 6.375% per annum on the outstanding principal amount thereof from December 21, 2016, payable semi-annually on May 15 and November 15 of each year, commencing on May 15, 2017. The 2025 Notes will mature on May 15, 2025. The Company received approximately $584.7 million in net proceeds from the offering of the 2025 Notes, which was used, together with the net proceeds from the Company’s December 2016 common stock offering and cash on hand, to fund the cash portion of the purchase price for the Vitruvian Acquisition. See “Note 1 – Acquisitions” for additional discussion of the Vitruvian Acquisition. (6) In accordance with ASU 2015-03, loan issuance costs related to the 2023 Notes, the 2024 Notes and the 2025 Notes (collectively the “Notes”) have been presented as a reduction to the Notes. At March 31, 2017, total unamortized debt issuance costs were $5.8 million for the 2023 Notes, $10.7 million for the 2024 Notes and $14.9 million for the 2025 Notes. In addition, loan commitment fee costs for the construction loan agreement described immediately below were $0.1 million at March 31, 2017. (7) On June 4, 2015, the Company entered into a construction loan agreement (the “Construction Loan”) with InterBank for the construction of a new corporate headquarters in Oklahoma City, which was substantially completed in December 2016. The Construction Loan allows for maximum principal borrowings of $24.5 million and required the Company to fund 30% of the cost of the construction before any funds could be drawn, which occurred in January 2016. Interest accrues daily on the outstanding principal balance at a fixed rate of 4.50% per annum and is payable on the last day of the month through May 31, 2017. Monthly interest and principal payments are due beginning June 30, 2017, with the final payment due June 4, 2025. At March 31, 2017, the total borrowings under the Construction Loan were approximately $23.7 million. |
Common Stock and Changes In Capitalization |
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Equity [Abstract] | |
Common Stock and Changes in Capitalization | COMMON STOCK AND CHANGES IN CAPITALIZATION Issuance of Common Stock On March 15, 2016, the Company issued 16,905,000 shares of its common stock in an underwritten public offering (which included 2,205,000 shares sold pursuant to an option to purchase shares sold pursuant to an option to purchase additional shares of the Company’s common stock granted by the Company to, and exercised in full by, the underwriters). The net proceeds from this equity offering were approximately $411.9 million, after underwriting discounts and commissions and offering expenses. The Company used the net proceeds from this offering primarily to fund a portion of its 2017 capital development plan and for general corporate purposes. On February 17, 2017, the Company completed the Vitruvian Acquisition for a total initial purchase price of approximately $1.85 billion, consisting of $1.35 billion in cash, subject to certain adjustments, and approximately 23.9 million shares of the Company’s common stock (of which approximately 5.2 million shares are subject to the indemnity escrow). See “Note 1 - Acquisitions” for additional discussion of the Vitruvian Acquisition. |
Stock-Based Compensation |
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Stock-Based Compensation | STOCK-BASED COMPENSATION During the three months ended March 31, 2017 and 2016, the Company’s stock-based compensation cost was $2.6 million and $3.3 million, respectively, of which the Company capitalized $1.0 million and $1.3 million, respectively, relating to its exploration and development efforts. The following table summarizes restricted stock activity for the three months ended March 31, 2017:
Unrecognized compensation expense as of March 31, 2017 related to restricted shares was $18.1 million. The expense is expected to be recognized over a weighted average period of 1.66 years. |
Earnings Per Share |
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Earnings Per Share | EARNINGS PER SHARE Reconciliations of the components of basic and diluted net income (loss) per common share are presented in the tables below:
There were 650,606 shares of common stock that were considered anti-dilutive for the three months ended March 31, 2016. |
Commitments and Contingencies |
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Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Plugging and Abandonment Funds In connection with the Company’s acquisition in 1997 of the remaining 50% interest in its WCBB properties, the Company assumed the seller’s (Chevron) obligation to contribute approximately $18,000 per month through March 2004 to a plugging and abandonment trust and the obligation to plug a minimum of 20 wells per year for 20 years commencing March 11, 1997. Chevron retained a security interest in production from these properties until the Company’s abandonment obligations to Chevron have been fulfilled. Beginning in 2009, the Company could access the trust for use in plugging and abandonment charges associated with the property, although it has not yet done so. As of March 31, 2017, the plugging and abandonment trust totaled approximately $3.1 million. At March 31, 2017, the Company had plugged 513 wells at WCBB since it began its plugging program in 1997, which management believes fulfills its minimum plugging obligation. Operating Leases The Company leases office facilities under non-cancellable operating leases exceeding one year. Future minimum lease commitments under these leases at March 31, 2017 were as follows:
Firm Transportation Commitments The Company had approximately 2,952,375 MMBtu per day of firm sales contracted with third parties. The table below presents these commitments at March 31, 2017 as follows:
The Company also had approximately $3.8 billion of firm transportation contracted with third parties. The table below presents these commitments at March 31, 2017 as follows:
Other Commitments Effective October 1, 2014, the Company entered into a Sand Supply Agreement with Muskie Proppant LLC (“Muskie”), a subsidiary of Mammoth Energy, that expires on September 30, 2018. Pursuant to this agreement, as amended, the Company has agreed to purchase annual and monthly amounts of proppant sand subject to exceptions specified in the agreement at agreed pricing plus agreed costs and expenses. Failure by either Muskie or the Company to deliver or accept the minimum monthly amount results in damages calculated per ton based on the difference between the monthly obligation amount and the amount actually delivered or accepted, as applicable. The Company incurred $1.3 million related to non-utilization fees during the three months ended March 31, 2016. The Company did not incur any non-utilization fees during the three months ended March 31, 2017. Effective October 1, 2014, the Company entered into an Amended and Restated Master Services Agreement for pressure pumping services with Stingray Pressure Pumping LLC (“Stingray Pressure”), a subsidiary of Mammoth Energy, that expires on September 30, 2018. Pursuant to this agreement, as amended, Stingray Pressure has agreed to provide hydraulic fracturing, stimulation and related completion and rework services to the Company and the Company has agreed to pay Stingray Pressure a monthly service fee plus the associated costs of the services provided. Future minimum commitments under these agreements at March 31, 2017 are as follows:
Litigation In two separate complaints, one filed by the State of Louisiana and the Parish of Cameron in the 38th Judicial District Court for the Parish of Cameron on February 9, 2016 and the other filed by the State of Louisiana and the District Attorney for the 15th Judicial District of the State of Louisiana in the 15th Judicial District Court for the Parish of Vermillion on July 29, 2016, the Company was named as a defendant, among 26 oil and gas companies, in the Cameron Parish complaint and among more than 40 oil and gas companies in the Vermillion Parish complaint, or the Complaints. The Complaints were filed under the State and Local Coastal Resources Management Act of 1978, as amended, and the rules, regulations, orders and ordinances adopted thereunder, which the Company referred to collectively as the CZM Laws, and allege that certain of the defendants’ oil and gas exploration, production and transportation operations associated with the development of the East Hackberry and West Hackberry oil and gas fields, in the case of the Cameron Parish complaint, and the Tigre Lagoon oil and gas field, in the case of the Vermillion Parish complaint, were conducted in violation of the CZM Laws. The Complaints allege that such activities caused substantial damage to land and waterbodies located in the coastal zone of the relevant Parish, including due to defendants’ design, construction and use of waste pits and the alleged failure to properly close the waste pits and to clear, re-vegetate, detoxify and return the property affected to its original condition, as well as the defendants’ alleged discharge of waste into the coastal zone. The Complaints also allege that the defendants’ oil and gas activities have resulted in the dredging of numerous canals, which had a direct and significant impact on the state coastal waters within the relevant Parish and that the defendants, among other things, failed to design, construct and maintain these canals using the best practical techniques to prevent bank slumping, erosion and saltwater intrusion and to minimize the potential for inland movement of storm-generated surges, which activities allegedly have resulted in the erosion of marshes and the degradation of terrestrial and aquatic life therein. The Complaints also allege that the defendants failed to re-vegetate, refill, clean, detoxify and otherwise restore these canals to their original condition. In these two petitions, the plaintiffs seek damages and other appropriate relief under the CZM Laws, including the payment of costs necessary to clear, re-vegetate, detoxify and otherwise restore the affected coastal zone of the relevant Parish to its original condition, actual restoration of such coastal zone to its original condition, and the payment of reasonable attorney fees and legal expenses and pre-judgment and post judgment interest. The Company was served with the Cameron complaint in early May 2016 and with the Vermillion complaint in early September 2016. The Louisiana Attorney General and the Louisiana Department of Natural Resources intervened in both the Cameron Parish suit and the Vermillion Parish suit. Shortly after the Complaints were filed, certain defendants removed the cases to the lawsuit to the United States District Court for the Western District of Louisiana. In both cases, the plaintiffs have filed a motion to remand, but both Courts have stayed further proceedings on the motions to remand pending a ruling from the United States Court of Appeals, Fifth Circuit on similar jurisdictional issues in another matter. In March 2017, the United States Court of Appeals, Fifth Circuit issued its ruling. Subsequently, the Vermillion Parish case and Cameron Parish case have both had their respective stays lifted. A hearing on the remand motions has been scheduled for May 17, 2017 in the Vermillion Parish case. No hearing on the remand motions has been set for the Cameron Parish case. The plaintiffs have granted all defendants an extension of time to file responsive pleadings to the Complaints until the District Courts rule on the motions to remand. The Company has not had the opportunity to evaluate the applicability of the allegations made in such complaints to their operations. Due to the early stages of these matters, management cannot determine the amount of loss, if any, that may result. In addition, due to the nature of the Company’s business, it is, from time to time, involved in routine litigation or subject to disputes or claims related to its business activities, including workers’ compensation claims and employment related disputes. In the opinion of the Company’s management, none of the pending litigation, disputes or claims against the Company, if decided adversely, will have a material adverse effect on its financial condition, cash flows or results of operations. |
Derivative Instruments |
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General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS Natural Gas, Oil and Natural Gas Liquids Derivative Instruments The Company seeks to reduce its exposure to unfavorable changes in natural gas, oil and natural gas liquids prices, which are subject to significant and often volatile fluctuation, by entering into over-the-counter fixed price swaps, basis swaps and various types of option contracts. These contracts allow the Company to predict with greater certainty the effective natural gas, oil and natural gas liquids prices to be received for hedged production and benefit operating cash flows and earnings when market prices are less than the fixed prices provided in the contracts. However, the Company will not benefit from market prices that are higher than the fixed prices in the contracts for hedged production. Fixed price swaps are settled monthly based on differences between the fixed price specified in the contract and the referenced settlement price. When the referenced settlement price is less than the price specified in the contract, the Company receives an amount from the counterparty based on the price difference multiplied by the volume. Similarly, when the referenced settlement price exceeds the price specified in the contract, the Company pays the counterparty an amount based on the price difference multiplied by the volume. The prices contained in these fixed price swaps are based on the NYMEX Henry Hub for natural gas, Argus Louisiana Light Sweet Crude for oil, the NYMEX West Texas Intermediate for oil, and Mont Belvieu for propane and pentane. Below is a summary of the Company’s open fixed price swap positions as of March 31, 2017.
The Company sold call options and used the associated premiums to enhance the fixed price for a portion of the fixed price natural gas swaps listed above. Each short call option has an established ceiling price. When the referenced settlement price is above the price ceiling established by these short call options, the Company pays its counterparty an amount equal to the difference between the referenced settlement price and the price ceiling multiplied by the hedged contract volumes.
For a portion of the combined natural gas derivative instruments containing fixed price swaps and sold call options, the counterparty has an option to extend the original terms an additional twelve months for the period January 2018 through December 2018. The option to extend the terms expires in December 2017. If executed, the Company would have additional fixed price swaps for 30,000 MMBtu per day with the option to double at a weighted average price of $3.36 per MMBtu and additional short call options for 30,000 MMBtu per day with the option to double at a weighted average ceiling price of $3.36 per MMBtu. In addition, the Company has entered into natural gas basis swap positions, which settle on the pricing index to basis differential of NGPL Mid-Continent to NYMEX Henry Hub. As of March 31, 2017, the Company had the following natural gas basis swap positions for NGPL Mid-Continent.
Balance Sheet Presentation The Company reports the fair value of derivative instruments on the consolidated balance sheets as derivative instruments under current assets, noncurrent assets, current liabilities and noncurrent liabilities on a gross basis. The Company determines the current and noncurrent classification based on the timing of expected future cash flows of individual trades. The following table presents the fair value of the Company’s derivative instruments on a gross basis at March 31, 2017 and December 31, 2016:
Gains and Losses The following table presents the gain and loss recognized in Net gain on gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the three months ended March 31, 2017 and 2016.
Offsetting of derivative assets and liabilities As noted above, the Company records the fair value of derivative instruments on a gross basis. The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value.
Concentration of Credit Risk By using derivative instruments that are not traded on an exchange, the Company is exposed to the credit risk of its counterparties. Credit risk is the risk of loss from counterparties not performing under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty is expected to owe the Company, which creates credit risk. To minimize the credit risk in derivative instruments, it is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions deemed by management as competent and competitive market makers. The Company’s derivative contracts are with multiple counterparties to lessen its exposure to any individual counterparty. Additionally, the Company uses master netting agreements to minimize credit risk exposure. The creditworthiness of the Company’s counterparties is subject to periodic review. None of the Company’s derivative instrument contracts contain credit-risk related contingent features. Other than as provided by the Company’s revolving credit facility, the Company is not required to provide credit support or collateral to any of its counterparties under its derivative instruments, nor are the counterparties required to provide credit support to the Company. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company records certain financial and non-financial assets and liabilities on the balance sheet at fair value in accordance with FASB ASC 820, “Fair Value Measurement and Disclosures” (“FASB ASC 820”). FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The statement establishes market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The statement requires fair value measurements be classified and disclosed in one of the following categories: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Significant inputs to the valuation model are unobservable. Valuation techniques that maximize the use of observable inputs are favored. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy. Reclassifications of fair value between Level 1, Level 2 and Level 3 of the fair value hierarchy, if applicable, are made at the end of each quarter. The following tables summarize the Company’s financial and non-financial assets and liabilities by FASB ASC 820 valuation level as of March 31, 2017 and December 31, 2016:
The Company estimates the fair value of all derivative instruments industry-standard models that considered various assumptions including current market and contractual prices for the underlying instruments, implied volatility, time value, nonperformance risk, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument and can be supported by observable data. The estimated fair values of proved oil and gas properties assumed in business combinations are based on a discounted cash flow model and market assumptions as to future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk-adjusted discount rates. The estimated fair values of unevaluated oil and gas properties was based on geological studies, historical well performance, location and applicable mineral lease terms. Based on the unobservable nature of certain of the inputs, the estimated fair value of the oil and gas properties assumed is deemed to use Level 3 inputs. The asset retirement obligations assumed as part of the business combination were estimated using the same assumptions and methodology as described below. See Note 1 for further discussion of the Vitruvian Acquisition. The Company estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, Asset Retirement and Environmental Obligations (“FASB ASC 410”). The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. See Note 2 for further discussion of the Company’s asset retirement obligations. Asset retirement obligations incurred during the three months ended March 31, 2017 were approximately $6.8 million. Due to the unobservable nature of the inputs, the fair value of the Company’s investment in Grizzly was estimated using assumptions that represent Level 3 inputs. The Company estimated the fair value of the investment as of March 31, 2016 to be approximately $39.1 million. See Note 3 for further discussion of the Company’s investment in Grizzly. Due to the unobservable nature of the inputs, the fair value of the Company’s investment in Strike Force was estimated using assumptions that represent Level 3 inputs. The Company’s estimated fair value of the investment as of the February 1, 2016 contribution date was $22.5 million. See Note 3 for further discussion of the Company’s contribution to Strike Force. |
Fair Value of Financial Instruments |
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Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts on the accompanying consolidated balance sheet for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and current debt are carried at cost, which approximates market value due to their short-term nature. Long-term debt related to the Construction Loan is carried at cost, which approximates market value based on the borrowing rates currently available to the Company with similar terms and maturities. At March 31, 2017, the carrying value of the outstanding debt represented by the Notes was approximately $1.6 billion, including the unamortized debt issuance cost of approximately $5.8 million related to the 2023 Notes, approximately $10.7 million related to the 2024 Notes and approximately $14.9 million related to the 2025 Notes. Based on the quoted market price, the fair value of the Notes was determined to be approximately $1.6 billion at March 31, 2017. |
Condensed Consolidating Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION On October 17, 2012, December 21, 2012 and August 18, 2014, the Company issued the 2020 Notes in an aggregate of $600.0 million principal amount. The 2020 Notes were subsequently exchanged for substantially identical notes in the same aggregate principal amount that were registered under the Securities Act. In October 2016, the Company repurchased (in a cash tender offer) or redeemed all of the 2020 Notes, of which $600.0 million in aggregate principal amount was then outstanding, with the net proceeds from the issuance of the 2024 Notes discussed below and cash on hand. On April 21, 2015, the Company issued $350.0 million in aggregate principal amount of the 2023 Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. In connection with the 2023 Notes Offering, the Company and its subsidiary guarantors entered into a registration rights agreement, dated as of April 21, 2015, pursuant to which the Company agreed to file a registration statement with respect to an offer to exchange the 2023 Notes for a new issue of substantially identical debt securities registered under the Securities Act. The exchange offer for the 2023 Notes was completed on October 13, 2015. On October 14, 2016, the Company issued $650.0 million in aggregate principal amount of the 2024 Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The net proceeds from the issuance of the 2024 Notes, together with cash on hand, were used to repurchase or redeem all of the then-outstanding 2020 Notes in October 2016. On December 21, 2016, the Company issued $600.0 million in aggregate principal amount of the 2025 Notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Company used the net proceeds from the issuance of the 2025 Notes, together with the net proceeds from the December 2016 underwritten offering of the Company’s common stock and cash on hand, to fund the cash portion of the purchase price for the Vitruvian Acquisition. The 2020 Notes were, and the 2023 Notes, the 2024 Notes and the 2025 Notes are, guaranteed on a senior unsecured basis by all existing consolidated subsidiaries that guarantee the Company’s secured revolving credit facility or certain other debt (the “Guarantors”). The 2020 Notes were not, and the 2023 Notes, the 2024 Notes and the 2025 Notes are not, guaranteed by Grizzly Holdings, Inc. (the “Non-Guarantor”). The Guarantors are 100% owned by Gulfport (the “Parent”), and the guarantees are full, unconditional, joint and several. There are no significant restrictions on the ability of the Parent or the Guarantors to obtain funds from each other in the form of a dividend or loan. The following condensed consolidating balance sheets, statements of operations, statements of comprehensive (loss) income and statements of cash flows are provided for the Parent, the Guarantors and the Non-Guarantor and include the consolidating adjustments and eliminations necessary to arrive at the information for the Company on a condensed consolidated basis. The information has been presented using the equity method of accounting for the Parent’s ownership of the Guarantors and the Non-Guarantor. CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands)
CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands)
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands)
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands)
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Amounts in thousands)
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Amounts in thousands)
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Recent Accounting Pronouncements |
3 Months Ended |
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Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new standard is for the recognition of revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced revenue disclosures, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those years, using either a full or a modified retrospective application approach. In July 2015, the FASB decided to defer the effective date by one year (until 2018). The Company is evaluating the impact of this ASU on its consolidated financial statements, and based on the continuing evaluation of its revenue streams, this ASU is not expected to have a material impact on its net income. The Company is still in the process of determining whether or not it will use the retrospective method or the modified retrospective approach to implementation. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance requires the lessee to recognize most leases on the balance sheet thereby resulting in the recognition of lease assets and liability for those leases currently classified as operating leases. The accounting for lessors is largely unchanged. The guidance is effective for periods after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures; however, based on the Company’s current operating leases, it is not expected to have a material impact. In March 2016, the FASB issued ASU No. 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The guidance was issued to clarify that change in the counterparty to a derivative instrument that had been designated as the hedging instrument under Topic 815, does not require designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted the standard as of January 1, 2017. There was no impact on the Company’s consolidated financial statements because all current derivative instruments are not designated for hedge accounting. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This guidance was intended to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted the standard as of January 1, 2017. The Company has elected to recognize forfeitures of awards as they occur. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. This guidance rescinds SEC Staff Observer comments that are codified in Topic 606, Revenue Recognition, and Topic 932, Extractive Activities--Oil and Gas. This amendment is effective upon adoption of Topic 606. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, this ASU eliminates the probable initial recognition threshold in current GAAP and instead, requires an entity to reflect its current estimate of all expected credit losses. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposure, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company is currently evaluating the impact this standard will have on its financial statements and related disclosures and does not anticipate it to have a material affect. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance of eight specific cash flow issues. This ASU is effective for periods after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. This guidance updates narrow aspects of the guidance issued in Update 2014-09. This amendment is effective for periods after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business. Under the current business combination guidance, there are three elements of a business: inputs, processes and outputs. The revised guidance adds an initial screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If that screen is met, the set of assets is not a business. The new framework also specifies the minimum required inputs and processes necessary to be a business. This amendment is effective for periods after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its consolidated financial statements. |
Subsequent Events |
3 Months Ended |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Derivatives In April 2017, the Company entered into fixed price swaps for 2018 for approximately 65,000 MMBtu of natural gas per day at a weighted average price of $3.03 per MMBtu. For 2019, the Company entered into fixed price swaps for approximately 10,000 MMBtu of natural gas per day at a weighted average price of $3.01 per MMBtu. The Company’s fixed price swap contracts are tied to the commodity prices on NYMEX. The Company will receive the fixed price amount stated in the contract and pay to its counterparty the current market price as listed on NYMEX for natural gas. Mammoth Energy Pending Acquisitions In March 2017, Mammoth Energy entered into definitive agreements to acquire Sturgeon (which owns Taylor Frac, LLC, Taylor Real Estate Investments, LLC and South River Road, LLC), Stingray Energy and Stingray Cementing from the owners of such companies, including Gulfport, for an aggregate of 7.0 million shares of Mammoth Energy common stock. Mammoth Energy anticipates the transactions will close in the second quarter of 2017, subject to agreed closing conditions. Upon closing, the Company will receive approximately 2.0 million shares of Mammoth Energy common stock and hold approximately 25.1% of Mammoth Energy’s outstanding common stock. |
Recent Accounting Pronouncements (Policies) |
3 Months Ended |
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Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Variable Interest Entities | The Company accounts for its investment in these VIEs following the equity method of accounting. The carrying amounts of the Company’s equity investments are classified as other non-current assets on the accompanying consolidated balance sheets. The Company’s maximum exposure to loss as a result of its involvement with these VIEs is based on the Company’s capital contributions and the economic performance of the VIEs, and is equal to the carrying value of the Company’s investments which is the maximum loss the Company could be required to record in the consolidated statements of operations. See Note 3 for further discussion of these entities, including the carrying amounts of each investment. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new standard is for the recognition of revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced revenue disclosures, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those years, using either a full or a modified retrospective application approach. In July 2015, the FASB decided to defer the effective date by one year (until 2018). The Company is evaluating the impact of this ASU on its consolidated financial statements, and based on the continuing evaluation of its revenue streams, this ASU is not expected to have a material impact on its net income. The Company is still in the process of determining whether or not it will use the retrospective method or the modified retrospective approach to implementation. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance requires the lessee to recognize most leases on the balance sheet thereby resulting in the recognition of lease assets and liability for those leases currently classified as operating leases. The accounting for lessors is largely unchanged. The guidance is effective for periods after December 15, 2018, with early adoption permitted. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements and related disclosures; however, based on the Company’s current operating leases, it is not expected to have a material impact. In March 2016, the FASB issued ASU No. 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The guidance was issued to clarify that change in the counterparty to a derivative instrument that had been designated as the hedging instrument under Topic 815, does not require designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted the standard as of January 1, 2017. There was no impact on the Company’s consolidated financial statements because all current derivative instruments are not designated for hedge accounting. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This guidance was intended to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted the standard as of January 1, 2017. The Company has elected to recognize forfeitures of awards as they occur. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. This guidance rescinds SEC Staff Observer comments that are codified in Topic 606, Revenue Recognition, and Topic 932, Extractive Activities--Oil and Gas. This amendment is effective upon adoption of Topic 606. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, this ASU eliminates the probable initial recognition threshold in current GAAP and instead, requires an entity to reflect its current estimate of all expected credit losses. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposure, reinsurance receivables and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company is currently evaluating the impact this standard will have on its financial statements and related disclosures and does not anticipate it to have a material affect. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance of eight specific cash flow issues. This ASU is effective for periods after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. This guidance updates narrow aspects of the guidance issued in Update 2014-09. This amendment is effective for periods after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business. Under the current business combination guidance, there are three elements of a business: inputs, processes and outputs. The revised guidance adds an initial screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If that screen is met, the set of assets is not a business. The new framework also specifies the minimum required inputs and processes necessary to be a business. This amendment is effective for periods after December 15, 2017, with early adoption permitted. The Company is in the process of evaluating the impact of this ASU on its consolidated financial statements. |
Acquisitions (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid in the Vitruvian Acquisition to acquire the properties and the fair value amount of the assets acquired as of February 17, 2017. Both the consideration paid and the fair value assigned to the assets is preliminary and subject to adjustment.
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Schedule of Pro Forma Information | For the period from the acquisition date of February 17, 2017 to March 31, 2017, the assets acquired in the Vitruvian Acquisition have contributed the following amounts of revenue to the Company’s consolidated statements of operations. The amount of net income contributed by the assets acquired is not presented below as it is impracticable to calculate due to the Company integrating the acquired assets into its overall operations using the full cost method of accounting.
Pro Forma Information (Unaudited) The following unaudited pro forma combined financial information presents the Company’s results as though the Vitruvian Acquisition had been completed at January 1, 2016. The pro forma combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Vitruvian Acquisition taken place on January 1, 2016; furthermore, the financial information is not intended to be a projection of future results.
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of March 31, 2017 and December 31, 2016 are as follows:
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Summary of Oil and Gas Properties Not Subject to Amortization | The following table summarizes the Company’s non-producing properties excluded from amortization by area at March 31, 2017:
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Schedule of Asset Retirement Obligation | A reconciliation of the Company’s asset retirement obligation for the three months ended March 31, 2017 and 2016 is as follows:
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Equity Investments (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Accounted for by the Equity Method | Investments accounted for by the equity method consist of the following as of March 31, 2017 and December 31, 2016:
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Equity Method Investment Balance Sheet Summary | The tables below summarize financial information for the Company’s equity investments as of March 31, 2017 and December 31, 2016. Summarized balance sheet information:
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Equity Method Investment Income Statement Summary | Summarized results of operations:
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Long-Term Debt (Tables) |
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Long-term Debt, Unclassified [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Break-Down of Long-Term Debt | Long-term debt consisted of the following items as of March 31, 2017 and December 31, 2016:
The Company capitalized approximately $3.1 million and $1.6 million in interest expense to undeveloped oil and natural gas properties during the three months ended March 31, 2017 and 2016, respectively. During the three months ended March 31, 2016, the Company capitalized $0.3 million in interest expense related to building construction. Construction on the building was completed in December 2016 and, as such, the Company did not capitalize any interest expense related to building construction for the three months ended March 31, 2017. (1) The Company has entered into a senior secured revolving credit facility, as amended, with The Bank of Nova Scotia, as the lead arranger and administrative agent and certain lenders from time to time party thereto. The credit agreement provides for a maximum facility amount of $1.5 billion and matures on June 6, 2018. On December 13, 2016, the Company further amended its revolving credit facility to, among other things, (a) reset the maturity date to December 31, 2021, (b) adjust lenders, (c) increase the basket for unsecured debt issuances to $1.6 billion, (d) increase the interest rates by 50 basis points, (e) increase the mortgage requirement to 85% (from 80%), and (f) add deposit account control agreement language. On March 29, 2017, the Company further amended its revolving credit facility to, among other things, amend the definition of the term EBITDAX to permit pro forma treatment of acquisitions that involve the payment of consideration by Gulfport and its subsidiaries in excess of $50.0 million and of dispositions of property or series of related dispositions of properties that yields gross proceeds to Gulfport or any of its subsidiaries in excess of $50.0 million. As of March 31, 2017, the borrowing base was set at $700.0 million and $40.0 million was outstanding under the revolving credit facility. At March 31, 2017, the total availability for future borrowings under the revolving credit facility, after giving effect to an aggregate of $238.7 million of letters of credit, was $421.3 million. The Company’s wholly-owned subsidiaries have guaranteed the obligations of the Company under the revolving credit facility. On May 4, 2017, the revolving credit facility was further amended to increase the borrowing base from $700.0 million to $1.0 billion, adjust certain of the Company's investment baskets and add five additional banks to the syndicate. Advances under the revolving credit facility may be in the form of either base rate loans or eurodollar loans. The interest rate for base rate loans is equal to (1) the applicable rate, which ranges from 1.00% to 2.00%, plus (2) the highest of: (a) the federal funds rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by agent as its “prime rate,” and (c) the eurodollar rate for an interest period of one month plus 1.00%. The interest rate for eurodollar loans is equal to (1) the applicable rate, which ranges from 2.00% to 3.00%, plus (2) the London interbank offered rate that appears on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate for deposits in U.S. dollars, or, if such rate is not available, the rate as administered by ICE Benchmark Administration (or any other person that takes over administration of such rate) per annum equal to the offered rate on such other page or service that displays on average London interbank offered rate as determined by ICE Benchmark Administration (or any other person that takes over administration of such rate) for deposits in U.S. dollars, or, if such rate is not available, the average quotations for three major New York money center banks of whom the agent shall inquire as the “London Interbank Offered Rate” for deposits in U.S. dollars. At March 31, 2107, amounts borrowed under the credit facility bore interest at the eurodollar rate (3.18%). The revolving credit facility contains customary negative covenants including, but not limited to, restrictions on the Company’s and its subsidiaries’ ability to: •incur indebtedness; •grant liens; •pay dividends and make other restricted payments; •make investments; •make fundamental changes; •enter into swap contracts and forward sales contracts; •dispose of assets; •change the nature of their business; and •enter into transactions with affiliates. The negative covenants are subject to certain exceptions as specified in the revolving credit facility. The revolving credit facility also contains certain affirmative covenants, including, but not limited to the following financial covenants: (i) the ratio of net funded debt to EBITDAX (net income, excluding (i) any non-cash revenue or expense associated with swap contracts resulting from ASC 815 and (ii) any cash or non-cash revenue or expense attributable to minority investments plus without duplication and, in the case of expenses, to the extent deducted from revenues in determining net income, the sum of (a) the aggregate amount of consolidated interest expense for such period, (b) the aggregate amount of income, franchise, capital or similar tax expense (other than ad valorem taxes) for such period, (c) all amounts attributable to depletion, depreciation, amortization and asset or goodwill impairment or writedown for such period, (d) all other non-cash charges, (e) exploration costs deducted in determining net income under successful efforts accounting, (f) actual cash distributions received from minority investments, (g) to the extent actually reimbursed by insurance, expenses with respect to liability on casualty events or business interruption, and (h) all reasonable transaction expenses related to dispositions and acquisitions of assets, investments and debt and equity offerings (provided that expenses related to any unsuccessful disposition will be limited to $3.0 million in the aggregate) for a twelve-month period may not be greater than 4.00 to 1.00; and (ii) the ratio of EBITDAX to interest expense for a twelve-month period may not be less than 3.00 to 1.00. The Company was in compliance with all covenants at March 31, 2017. (2) On October 17, 2012, the Company issued $250.0 million in aggregate principal amount of 7.75% Senior Notes due 2020 (the “October Notes”) under an indenture among the Company, its subsidiary guarantors and Wells Fargo Bank, National Association, as the trustee (the “senior note indenture”). On December 21, 2012, the Company issued an additional $50.0 million in aggregate principal amount of 7.75% Senior Notes due 2020 (the “December Notes”) as additional securities under the senior note indenture. On August 18, 2014, the Company issued an additional $300.0 million in aggregate principal amount of 7.75% Senior Notes due 2020 (the “August Notes”). The August Notes were issued as additional securities under the senior note indenture. The October Notes, December Notes and the August Notes are collectively referred to as the “2020 Notes.” In October 2016, the Company repurchased (in a cash tender offer) or redeemed all of the 2020 Notes, of which $600.0 million in aggregate principal amount was then outstanding, with the net proceeds from the issuance of its 6.000% Senior Notes due 2024 (the “2024 Notes”) discussed below and cash on hand, and the indenture governing the 2020 Notes was fully satisfied and discharged. (3) On April 21, 2015, the Company issued $350.0 million in aggregate principal amount of 6.625% Senior Notes due 2023 (the “2023 Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in accordance with Regulation S under the Securities Act (the “2023 Notes Offering”). The Company received net proceeds of approximately $343.6 million after initial purchaser discounts and commissions and estimated offering expenses. The 2023 Notes were issued under an indenture, dated as of April 21, 2015, among the Company, the subsidiary guarantors party thereto and Wells Fargo Bank, National Association, as trustee. In October 2015, the 2023 Notes were exchanged for a new issue of substantially identical debt securities registered under the Securities Act. Pursuant to the indenture relating to the 2023 Notes, interest on the 2023 Notes will accrue at a rate of 6.625% per annum on the outstanding principal amount thereof from April 21, 2015, payable semi-annually on May 1 and November 1 of each year, commencing on November 1, 2015. The 2023 Notes are not guaranteed by Grizzly Holdings, Inc. and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. (4) On October 14, 2016, the Company issued the 2024 Notes in aggregate principal amount of $650.0 million. The 2024 Notes were issued under an indenture, dated as of October 14, 2016, among the Company, the subsidiary guarantors party thereto and the senior note indenture trustee (the “2024 Indenture”), to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in accordance with Regulation S under the Securities Act (the “2024 Notes Offering”). Under the 2024 Indenture, interest on the 2024 Notes accrues at a rate of 6.000% per annum on the outstanding principal amount thereof from October 14, 2016, payable semi-annually on April 15 and October 15 of each year, commencing on April 15, 2017. The 2024 Notes will mature on October 15, 2024. The Company received approximately $638.9 million in net proceeds from the offering of the 2024 Notes, which was used, together with cash on hand, to purchase the outstanding 2020 Notes in a concurrent cash tender offer, to pay fees and expenses thereof, and to redeem any of the 2020 Notes that remained outstanding after the completion of the tender offer. (5) On December 21, 2016, the Company issued $600.0 million in aggregate principal amount of 6.375% Senior Notes due 2025 (the “2025 Notes”). The 2025 Notes were issued under an indenture, dated as of December 21, 2016, among the Company, the subsidiary guarantors party thereto and the senior note indenture trustee (the “2025 Indenture”), to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. Under the 2025 Indenture, interest on the 2025 Notes accrues at a rate of 6.375% per annum on the outstanding principal amount thereof from December 21, 2016, payable semi-annually on May 15 and November 15 of each year, commencing on May 15, 2017. The 2025 Notes will mature on May 15, 2025. The Company received approximately $584.7 million in net proceeds from the offering of the 2025 Notes, which was used, together with the net proceeds from the Company’s December 2016 common stock offering and cash on hand, to fund the cash portion of the purchase price for the Vitruvian Acquisition. See “Note 1 – Acquisitions” for additional discussion of the Vitruvian Acquisition. (6) In accordance with ASU 2015-03, loan issuance costs related to the 2023 Notes, the 2024 Notes and the 2025 Notes (collectively the “Notes”) have been presented as a reduction to the Notes. At March 31, 2017, total unamortized debt issuance costs were $5.8 million for the 2023 Notes, $10.7 million for the 2024 Notes and $14.9 million for the 2025 Notes. In addition, loan commitment fee costs for the construction loan agreement described immediately below were $0.1 million at March 31, 2017. (7) On June 4, 2015, the Company entered into a construction loan agreement (the “Construction Loan”) with InterBank for the construction of a new corporate headquarters in Oklahoma City, which was substantially completed in December 2016. The Construction Loan allows for maximum principal borrowings of $24.5 million and required the Company to fund 30% of the cost of the construction before any funds could be drawn, which occurred in January 2016. Interest accrues daily on the outstanding principal balance at a fixed rate of 4.50% per annum and is payable on the last day of the month through May 31, 2017. Monthly interest and principal payments are due beginning June 30, 2017, with the final payment due June 4, 2025. At March 31, 2017, the total borrowings under the Construction Loan were approximately $23.7 million. |
Stock-Based Compensation (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Award and Unit Activity | The following table summarizes restricted stock activity for the three months ended March 31, 2017:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | Reconciliations of the components of basic and diluted net income (loss) per common share are presented in the tables below:
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Commitments and Contingencies (Tables) |
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Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Commitments | Future minimum lease commitments under these leases at March 31, 2017 were as follows:
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Schedule of Firm Transportation Commitments | The table below presents these commitments at March 31, 2017 as follows:
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Transportation commitment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Commitments | The table below presents these commitments at March 31, 2017 as follows:
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Purchase commitment | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Purchase Commitment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Commitments | Future minimum commitments under these agreements at March 31, 2017 are as follows:
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Derivative Instruments (Tables) |
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General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Open Fixed Price Swap Positions | Below is a summary of the Company’s open fixed price swap positions as of March 31, 2017.
The Company sold call options and used the associated premiums to enhance the fixed price for a portion of the fixed price natural gas swaps listed above. Each short call option has an established ceiling price. When the referenced settlement price is above the price ceiling established by these short call options, the Company pays its counterparty an amount equal to the difference between the referenced settlement price and the price ceiling multiplied by the hedged contract volumes.
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Schedule of Natural Gas Basis Swap Position Derivatives | As of March 31, 2017, the Company had the following natural gas basis swap positions for NGPL Mid-Continent.
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Schedule of Derivative Instruments In Statement Of Financial Position | The following table presents the fair value of the Company’s derivative instruments on a gross basis at March 31, 2017 and December 31, 2016:
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Schedule of Cash Flow Hedges | The following table presents the gain and loss recognized in Net gain on gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the three months ended March 31, 2017 and 2016.
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Recognized Derivative Assets | The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value.
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Recognized Derivative Liabilities | The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | The following tables summarize the Company’s financial and non-financial assets and liabilities by FASB ASC 820 valuation level as of March 31, 2017 and December 31, 2016:
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Condensed Consolidating Financial Information (Tables) |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands)
CONDENSED CONSOLIDATING BALANCE SHEETS (Amounts in thousands)
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Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands)
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Amounts in thousands)
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Condensed Consolidating Statements of Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Amounts in thousands)
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Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Amounts in thousands)
|
Acquisitions (Narrative) (Details) $ / shares in Units, shares in Millions |
3 Months Ended | |||
---|---|---|---|---|
Feb. 17, 2017
USD ($)
a
$ / shares
shares
|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 15, 2016
$ / shares
|
|
Business Acquisition [Line Items] | ||||
Acquisition expense | $ 1,298,000 | $ 0 | ||
Share price (in dollars per share) | $ / shares | $ 19.48 | $ 20.96 | ||
Vitruvian acquisition | ||||
Business Acquisition [Line Items] | ||||
Net surface area | a | 46,400 | |||
Total consideration | $ 1,850,000,000 | |||
Payments to acquire businesses | $ 1,354,093,000 | |||
Equity interest issued or issuable, number of shares | shares | 23.9 | |||
Acquisition expense | $ 1,300,000 | |||
Goodwill | $ 0 | |||
Bargain purchase gain | 0 | |||
Business acquisition, share price (in dollars per share) | $ / shares | $ 20.96 | |||
Decrease in fair value of shares issued for acquisition, amount | $ 35,300,000 | |||
Indemnity escrow | Vitruvian acquisition | ||||
Business Acquisition [Line Items] | ||||
Equity interest issued or issuable, number of shares | shares | 5.2 |
Acquisitions (Allocation of Purchase Price) (Details) - Vitruvian acquisition $ in Thousands |
Feb. 17, 2017
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Cash, net of purchase price adjustments | $ 1,354,093 |
Fair value of Gulfport’s common stock issued | 464,639 |
Total Consideration | 1,818,732 |
Asset retirement obligations | (6,489) |
Total fair value of net identifiable assets acquired | 1,818,732 |
Proved properties | |
Business Acquisition [Line Items] | |
Fair value of Gulfport’s common stock issued | 362,264 |
Unproved properties | |
Business Acquisition [Line Items] | |
Fair value of Gulfport’s common stock issued | $ 1,462,957 |
Acquisitions (Pro Forma) (Details) - Vitruvian acquisition - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Revenue | $ 26,226 | ||
Pro forma revenue | $ 368,903 | $ 203,712 | |
Pro forma net income (loss) | $ 175,881 | $ (274,207) | |
Pro forma earnings (loss) per share (basic) (in dollars per share) | $ 1.03 | $ (2.03) | |
Pro forma earnings (loss) per share (diluted) (in dollars per share) | $ 1.03 | $ (2.03) |
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Oil and natural gas properties | $ 8,146,321 | $ 6,071,920 |
Office furniture and fixtures | 24,649 | 21,204 |
Building | 45,204 | 42,530 |
Land | 5,254 | 5,252 |
Total property and equipment | 8,221,428 | 6,140,906 |
Accumulated depletion, depreciation, amortization and impairment | (3,855,629) | (3,789,780) |
Property and equipment, net | $ 4,365,799 | $ 2,351,126 |
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | |||
Impairment of oil and gas properties | $ 0 | $ 218,991 | |
Cumulative capitalization of general and administrative costs incurred and capitalized to the full cost pool | 138,300 | ||
Capitalized general and administrative costs | 8,400 | $ 7,100 | |
Capitalized costs of oil and natural gas properties excluded from amortization | $ 3,073,448 | $ 1,580,305 | |
Non-producing leases, extension term | 5 years | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Expected number of years amortization will commence | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Expected number of years amortization will commence | 5 years |
Property and Equipment (Schedule of Asset Retirement Obligation) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligation, beginning of period | $ 34,276 | $ 26,437 | |
Liabilities incurred | 6,779 | 1,914 | |
Liabilities settled | 0 | (52) | |
Accretion expense | 282 | 247 | |
Asset retirement obligation as of end of period | 41,337 | 28,546 | |
Less current portion | 195 | 75 | $ 195 |
Asset retirement obligation, long-term | $ 41,142 | $ 28,471 | $ 34,081 |
Equity Investments (Equity Investments Balance Sheet Disclosure) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 151,587 | $ 148,733 |
Noncurrent assets | 1,342,012 | 1,305,407 |
Current liabilities | 97,329 | 57,173 |
Noncurrent liabilities | $ 59,721 | $ 67,680 |
Equity Investments (Equity Investment Income Statement Disclosure) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||
Gross revenue | $ 94,478 | $ 43,307 |
Net loss | $ (25,339) | $ (25,308) |
Long-Term Debt (Break-Down of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 21, 2016 |
Oct. 31, 2016 |
Oct. 14, 2016 |
Apr. 21, 2015 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||||||||||
Deferred finance costs, net | $ (31,486) | $ (27,174) | |||||||||||||
Less: current maturities of long term debt | (452) | (276) | |||||||||||||
Long-term debt, net of current maturities | 1,631,809 | 1,593,599 | |||||||||||||
Revolving credit agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | [1] | 0 | |||||||||||||
Construction loans | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | [2] | $ 21,049 | |||||||||||||
Deferred finance costs, net | $ (100) | ||||||||||||||
7.75% Senior Notes due 2020 | Senior notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate, percent | 7.75% | 7.75% | |||||||||||||
Long-term debt | [3] | $ 0 | $ 0 | ||||||||||||
6.625% Senior Notes | Senior notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate, percent | 6.625% | 6.625% | 6.625% | ||||||||||||
Long-term debt | [4] | $ 350,000 | $ 350,000 | ||||||||||||
Deferred finance costs, net | $ (5,800) | ||||||||||||||
6.000% Senior Notes due 2024 | Senior notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate, percent | 6.00% | 6.00% | 6.00% | 6.00% | |||||||||||
Long-term debt | [4] | $ 650,000 | $ 650,000 | ||||||||||||
Deferred finance costs, net | $ (10,700) | ||||||||||||||
6.375% Senior Notes due 2025 | Senior notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate, percent | 6.375% | 6.375% | 6.375% | ||||||||||||
Long-term debt | [4] | $ 600,000 | $ 600,000 | ||||||||||||
Deferred finance costs, net | $ (14,900) | ||||||||||||||
|
Long-Term Debt (Narrative) (Details) |
1 Months Ended | 3 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 21, 2016
USD ($)
|
Dec. 13, 2016
USD ($)
|
Dec. 12, 2016 |
Oct. 14, 2016
USD ($)
|
Oct. 06, 2016 |
Dec. 27, 2013 |
Jan. 31, 2016 |
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
May 04, 2017
USD ($)
|
Mar. 29, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Oct. 31, 2016
USD ($)
|
Jun. 04, 2015
USD ($)
|
Apr. 21, 2015
USD ($)
|
Aug. 18, 2014
USD ($)
|
Dec. 21, 2012
USD ($)
|
Oct. 17, 2012
USD ($)
|
||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Interest cost capitalized, undeveloped properties | $ 3,100,000 | $ 1,600,000 | |||||||||||||||||||||||||
Interest capitalized | 3,122,000 | 1,862,000 | |||||||||||||||||||||||||
Deferred finance costs, net | 31,486,000 | $ 27,174,000 | |||||||||||||||||||||||||
Building loan | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Interest capitalized | $ 300,000 | ||||||||||||||||||||||||||
Revolving credit agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | [1] | 0 | |||||||||||||||||||||||||
Construction loans | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | [2] | 21,049,000 | |||||||||||||||||||||||||
Deferred finance costs, net | $ 100,000 | ||||||||||||||||||||||||||
Amended and restated credit agreement | Maximum | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Debt covenant ratio for future EBITDAX | 4.00 | ||||||||||||||||||||||||||
Amended and restated credit agreement | Revolving credit agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Borrowing capacity | $ 700,000,000 | ||||||||||||||||||||||||||
Long-term debt | [1] | 40,000,000 | |||||||||||||||||||||||||
Remaining borrowing capacity | [1] | $ 421,300,000 | |||||||||||||||||||||||||
Debt covenant ratio for EBITDAX | 3.00 | ||||||||||||||||||||||||||
6.625% Senior Notes due 2023 | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 6.625% | ||||||||||||||||||||||||||
Debt instrument, amount | $ 350,000,000.0 | ||||||||||||||||||||||||||
6.625% Senior Notes | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | [3] | $ 350,000,000 | $ 350,000,000 | ||||||||||||||||||||||||
Stated interest rate, percent | 6.625% | 6.625% | 6.625% | ||||||||||||||||||||||||
Building loan outstanding amount of building loan refinanced | $ 343,600,000 | ||||||||||||||||||||||||||
Deferred finance costs, net | $ 5,800,000 | ||||||||||||||||||||||||||
7.75% Senior Notes due 2020 | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | [4] | $ 0 | $ 0 | ||||||||||||||||||||||||
Stated interest rate, percent | 7.75% | 7.75% | |||||||||||||||||||||||||
Debt instrument, amount | $ 600,000,000.0 | ||||||||||||||||||||||||||
Amount validly tendered | $ 600,000,000.0 | ||||||||||||||||||||||||||
Note repurchase offer, conversion ratio | 1.042 | ||||||||||||||||||||||||||
6.000% Senior Notes due 2024 | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | [3] | $ 650,000,000 | $ 650,000,000 | ||||||||||||||||||||||||
Stated interest rate, percent | 6.00% | 6.00% | 6.00% | 6.00% | |||||||||||||||||||||||
Debt instrument, amount | $ 650,000,000.0 | ||||||||||||||||||||||||||
Proceeds from issuance of Senior Notes | $ 638,900,000 | ||||||||||||||||||||||||||
Deferred finance costs, net | $ 10,700,000 | ||||||||||||||||||||||||||
6.375% Senior Notes due 2025 | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Long-term debt | [3] | $ 600,000,000 | $ 600,000,000 | ||||||||||||||||||||||||
Stated interest rate, percent | 6.375% | 6.375% | 6.375% | ||||||||||||||||||||||||
Debt instrument, amount | $ 600,000,000.0 | ||||||||||||||||||||||||||
Proceeds from issuance of Senior Notes | $ 584,700,000 | ||||||||||||||||||||||||||
Deferred finance costs, net | $ 14,900,000 | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Amended and restated credit agreement | Revolving credit agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Revolving credit facility | $ 1,500,000,000.0 | ||||||||||||||||||||||||||
Required minimum down payment, percent | 85.00% | 80.00% | |||||||||||||||||||||||||
Minimum acquisition payment limit | $ 50,000,000 | ||||||||||||||||||||||||||
Minimum disposition of property limit | $ 50,000,000 | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Debt instrument, description of variable rate basis | LIBOR01 | ||||||||||||||||||||||||||
Weighted average interest rate | 3.18% | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Base rate | Minimum | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 1.00% | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Base rate | Maximum | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 2.00% | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Federal funds rate | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Basis spread, percent | 0.50% | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Eurodollar | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Basis spread, percent | 1.00% | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Eurodollar | Minimum | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 2.00% | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Revolving credit agreement | Eurodollar | Maximum | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 3.00% | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Unsecured debt | Amended and restated credit agreement | Revolving credit agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Revolving credit facility | $ 1,600,000,000.0 | ||||||||||||||||||||||||||
Basis spread on variable rate, increase (decrease) during period | 0.005 | ||||||||||||||||||||||||||
Nova Scotia, Amegy, KeyBank | Letter of credit | Amended and restated credit agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Credit facility outstanding | $ 238,700,000 | ||||||||||||||||||||||||||
Disposition costs, maximum expenses allowed | 3,000,000.0 | ||||||||||||||||||||||||||
Wells Fargo Bank | October Notes | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 7.75% | ||||||||||||||||||||||||||
Debt instrument, amount | $ 250,000,000.0 | ||||||||||||||||||||||||||
Wells Fargo Bank | December Notes | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 7.75% | ||||||||||||||||||||||||||
Debt instrument, amount | $ 50,000,000.0 | ||||||||||||||||||||||||||
Wells Fargo Bank | August Notes | Senior notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate, percent | 7.75% | ||||||||||||||||||||||||||
Debt instrument, amount | $ 300,000,000.0 | ||||||||||||||||||||||||||
InterBank | Revolving credit agreement | Construction loans | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Revolving credit facility | $ 24,500,000.0 | ||||||||||||||||||||||||||
Stated interest rate, percent | 4.50% | ||||||||||||||||||||||||||
InterBank | Letter of credit | Construction loans | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Required minimum down payment, percent | 30.00% | ||||||||||||||||||||||||||
Long-term debt | $ 23,747,000 | ||||||||||||||||||||||||||
Subsequent event | Five additional lenders | Amended and restated credit agreement | Revolving credit agreement | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Borrowing capacity | $ 1,000,000,000.0 | ||||||||||||||||||||||||||
|
Common Stock and Changes in Capitalization (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Feb. 17, 2017 |
Mar. 15, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Class of Stock [Line Items] | ||||
Proceeds from issuance of common stock, net of offering costs | $ 411,900 | $ (5,321) | $ 411,918 | |
Vitruvian acquisition | ||||
Class of Stock [Line Items] | ||||
Total consideration | $ 1,850,000 | |||
Payments to acquire businesses | $ 1,354,093 | |||
Equity interest issued or issuable, number of shares | 23,900,000 | |||
Indemnity escrow | Vitruvian acquisition | ||||
Class of Stock [Line Items] | ||||
Equity interest issued or issuable, number of shares | 5,200,000 | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of Common Stock in public offerings, net of related expenses (in shares) | 16,905,000 | 16,905,000 | ||
Over-allotment option | Common Stock | ||||
Class of Stock [Line Items] | ||||
Issuance of Common Stock in public offerings, net of related expenses (in shares) | 2,205,000 |
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation [Abstract] | ||
Stock-based compensation expense | $ 2.6 | $ 3.3 |
Capitalized stock-based compensation | 1.0 | $ 1.3 |
Unrecognized compensation expense | $ 18.1 | |
Weighted average period of expense recognition period | 1 year 7 months 28 days |
Stock-Based Compensation (Summary of Restricted Stock Award and Unit Activity) (Details) - Restricted Stock |
3 Months Ended |
---|---|
Mar. 31, 2017
$ / shares
shares
| |
Number of Unvested Restricted Shares | |
Unvested shares as of January 1, 2016 (in shares) | shares | 613,056 |
Granted (in shares) | shares | 477,768 |
Vested (in shares) | shares | (153,868) |
Forfeited (in shares) | shares | (65,438) |
Unvested shares as of March 31, 2017 (in shares) | shares | 871,518 |
Weighted Average Grant Date Fair Value | |
Unvested shares as of January 1, 2016 (in dollars per share) | $ / shares | $ 32.90 |
Granted (in dollars per share) | $ / shares | 17.74 |
Vested (in dollars per share) | $ / shares | 31.98 |
Forfeited (in dollars per share) | $ / shares | 31.23 |
Unvested shares as of March 31, 2017 (in dollars per share) | $ / shares | $ 24.88 |
Earnings Per Share (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Basic: | ||
Net loss (loss) | $ 154,455 | $ (242,267) |
Net income (loss) (in shares) | 170,272,685 | 111,509,585 |
Net income (loss) (in dollars per share) | $ 0.91 | $ (2.17) |
Effect of dilutive securities: | ||
Stock options and awards | $ 0 | $ 0 |
Stock options and awards (in shares) | 215,834 | 0 |
Diluted: | ||
Net income (loss) | $ 154,455 | $ (242,267) |
Net income (loss) (in share) | 170,488,519 | 111,509,585 |
Net income (loss) (in dollars per share) | $ 0.91 | $ (2.17) |
Common stock considered anti-dilutive (in shares) | 650,606 |
Commitments and Contingencies (Operating Leases Future Minimum Lease Commitments) (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2017 | $ 129 |
2018 | 54 |
Total | $ 183 |
Commitments and Contingencies (Firm Transportation Commitments) (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
MMBTU / d
|
---|---|
Other Commitments [Line Items] | |
Firm sale contracts (in MMBtu's) | MMBTU / d | 2,952,375 |
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |
Remaining 2017 | MMBTU / d | 725,625 |
2018 | MMBTU / d | 457,000 |
2019 | MMBTU / d | 604,750 |
2020 | MMBTU / d | 518,000 |
2021 | MMBTU / d | 371,000 |
Thereafter | MMBTU / d | 276,000 |
Total | MMBTU / d | 2,952,375 |
Purchase commitment | |
Other Commitments [Abstract] | |
2018 | $ 39,330 |
Total | 78,660 |
Transportation commitment | |
Other Commitments [Abstract] | |
Remaining 2017 | 143,816 |
2018 | 241,709 |
2019 | 241,708 |
2020 | 240,746 |
2021 | 239,786 |
Thereafter | 2,705,270 |
Total | $ 3,813,035 |
Commitments and Contingencies (Other Commitments) (Details) - Purchase commitment $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Other Commitments [Line Items] | |
Remaining 2017 | $ 39,330 |
2018 | 39,330 |
Total | $ 78,660 |
Derivative Instruments (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2017
MMBTU / d
$ / MMBTU
| |
Derivative [Line Items] | |
Derivative, extension option term | 12 months |
2018 | |
Derivative [Line Items] | |
Daily Volume | MMBTU / d | 30,000 |
Weighted average price (in usd per MMB/Bblstu) | $ / MMBTU | 3.36 |
2018 | Short | |
Derivative [Line Items] | |
Daily Volume | MMBTU / d | 30,000 |
Weighted average price (in usd per MMB/Bblstu) | $ / MMBTU | 3.36 |
Derivative Instruments (Schedule of Derivative Instruments in Statement of Financial Position) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Short-term derivative instruments - asset | $ 18,925 | $ 3,488 |
Long-term derivative instruments - asset | 23,515 | 5,696 |
Short-term derivative instruments - liability | 67,179 | 119,219 |
Long-term derivative instruments - liability | $ 5,259 | $ 26,759 |
Derivative Instruments (Net Gain (Loss) on Derivative Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Derivative [Line Items] | ||
Net gain on gas, oil, and NGL derivatives | $ 99,577 | $ 57,735 |
Natural gas derivatives | ||
Derivative [Line Items] | ||
Net gain on gas, oil, and NGL derivatives | 86,277 | 57,000 |
Oil derivatives | ||
Derivative [Line Items] | ||
Net gain on gas, oil, and NGL derivatives | 10,905 | 1,282 |
Natural gas liquids derivatives | ||
Derivative [Line Items] | ||
Net gain on gas, oil, and NGL derivatives | $ 2,395 | $ (547) |
Derivative Instruments (Schedule of Offsetting) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Assets Presented in the Consolidated Balance Sheet | $ 42,440 | $ 9,184 |
Gross Assets Subject to Mater Netting Agreement - assets | (41,180) | (9,184) |
Net Amount - assets | 1,260 | 0 |
Gross Liabilities Presented in the Consolidated Balance Sheet | (72,438) | (145,978) |
Gross Amounts Subject to Master Netting Agreement - liabilities | 41,180 | 9,184 |
Net Amount - liabilities | $ (31,258) | $ (136,794) |
Fair Value Measurements (Schedule of Derivative Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Feb. 01, 2016 |
|
Liabilities: | ||||
Asset retirement obligation capitalized | $ 6,779 | $ 1,914 | ||
Level 1 | ||||
Assets: | ||||
Derivative Instruments | 0 | $ 0 | ||
Liabilities: | ||||
Derivative Instruments | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Derivative Instruments | 42,440 | 9,184 | ||
Liabilities: | ||||
Derivative Instruments | 72,438 | 145,978 | ||
Level 3 | ||||
Assets: | ||||
Derivative Instruments | 0 | 0 | ||
Liabilities: | ||||
Derivative Instruments | 0 | $ 0 | ||
Asset retirement obligation capitalized | $ 6,800 | |||
Level 3 | Investment in Grizzly Oil Sands ULC | ||||
Liabilities: | ||||
Equity investment | $ 39,100 | |||
Level 3 | Investment in Strike Force Midstream LLC | ||||
Liabilities: | ||||
Equity investment | $ 22,500 |
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Deferred finance costs, net | $ 31,486 | $ 27,174 |
Senior notes | 6.625% Senior Notes | ||
Debt Instrument [Line Items] | ||
Deferred finance costs, net | 5,800 | |
Senior notes | 6.000% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Deferred finance costs, net | 10,700 | |
Senior notes | 6.375% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Deferred finance costs, net | 14,900 | |
Carry value | Senior notes | ||
Debt Instrument [Line Items] | ||
Fair value of notes | 1,600,000 | |
Fair value | Senior notes | ||
Debt Instrument [Line Items] | ||
Fair value of notes | $ 1,600,000 |
Condensed Consolidating Financial Information (Narrative) (Details) - Senior notes - USD ($) |
Dec. 21, 2016 |
Oct. 31, 2016 |
Oct. 14, 2016 |
Apr. 21, 2015 |
Aug. 18, 2014 |
---|---|---|---|---|---|
7.75% Senior Notes due 2020 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt instrument, amount | $ 600,000,000.0 | ||||
Amount validly tendered | $ 600,000,000.0 | ||||
6.625% Senior Notes due 2023 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt instrument, amount | $ 350,000,000.0 | ||||
6.000% Senior Notes due 2024 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt instrument, amount | $ 650,000,000.0 | ||||
6.375% Senior Notes due 2025 | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Debt instrument, amount | $ 600,000,000.0 |
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