Financial Instruments (Tables)
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6 Months Ended |
12 Months Ended |
Jun. 30, 2018 |
Dec. 31, 2017 |
| Financial Instruments [Abstract] |
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|
| Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under Derivative Contracts |
The following table reflects the contracted volumes and weighted
average prices the Company will receive under its derivative
contracts as of June 30, 2018:
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Production Period
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|
Instrument
Type |
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Average
Daily
Volumes |
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|
Weighted
Average
Swap Price |
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|
Weighted
Average
Put Price |
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|
Weighted
Average
Call Price |
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Crude Oil—WTI:
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(Bbls |
) |
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|
(per Bbl |
) |
|
|
(per Bbl |
) |
|
|
(per Bbl |
) |
|
July 2018—December 2018
|
|
|
Swap |
|
|
|
29,615 |
|
|
$ |
54.06 |
|
|
$ |
— |
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|
$ |
— |
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|
July 2018—December 2018
|
|
|
Collar |
|
|
|
1,000 |
|
|
$ |
— |
|
|
$ |
45.00 |
|
|
$ |
55.35 |
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July 2018—December 2018
|
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Put |
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2,000 |
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$ |
— |
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$ |
49.50 |
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$ |
— |
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January 2019—December 2019
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Swap |
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|
23,130 |
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$ |
54.14 |
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$ |
— |
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$ |
— |
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Natural Gas—Henry Hub NYMEX:
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(MMBtu |
) |
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(per MMBtu |
) |
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(per MMBtu |
) |
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(per MMBtu |
) |
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July 2018—December 2018
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Swap |
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|
23,747 |
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$ |
3.01 |
|
|
$ |
— |
|
|
$ |
— |
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July 2018—December 2018
|
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Collar |
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|
6,000 |
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$ |
— |
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|
$ |
2.75 |
|
|
$ |
3.24 |
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January 2019—December 2019
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Swap |
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|
10,146 |
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$ |
2.99 |
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|
$ |
— |
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|
$ |
— |
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The following table reflects the contracted volumes and weighted
average prices we will receive under our derivative contracts as of
December 31, 2017:
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Production Period
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Instrument
Type |
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Average
Daily
Volumes |
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|
Weighted
Average
Swap Price |
|
|
Crude Oil—WTI:
|
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|
|
|
|
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(Bbls |
) |
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(per Bbl |
) |
|
January 2018—December 2018
|
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Swap |
|
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|
24,804 |
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$ |
53.79 |
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January 2019—December 2019
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Swap |
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15,866 |
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$ |
53.17 |
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Natural Gas—Henry Hub NYMEX:
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(MMBtu |
) |
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(per MMBtu |
) |
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January 2018—December 2018
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Swap |
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26,346 |
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$ |
3.00 |
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January 2019—December 2019
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Swap |
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|
10,146 |
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$ |
2.99 |
|
Subsequent event. The following table reflects the
contracted volumes and weighted average prices we will receive
under our derivative contracts entered into subsequent to
December 31, 2017, which are not reflected in the table
above:
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Production Period
|
|
Instrument
Type |
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Average
Daily
Volumes |
|
|
Weighted
Average
Swap Price |
|
|
Crude Oil—WTI:
|
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|
|
|
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(Bbls |
) |
|
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(per Bbl |
) |
|
January 2019—June 2019
|
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|
Swap |
|
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|
1,008 |
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$ |
56.25 |
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| Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments |
The following table presents the carrying amounts and estimated
fair values of financial instruments (in thousands):
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June 30, 2018 |
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December 31, 2017 |
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Carrying
Amount |
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Fair
Value |
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Carrying
Amount |
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Fair
Value |
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|
11.00% Second-Priority Senior Secured Notes—due April
2022(1)
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$ |
380,042 |
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$ |
410,411 |
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$ |
— |
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|
$ |
— |
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7.50% Senior Secured Notes—due May 2022
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$ |
6,060 |
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|
$ |
5,999 |
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$ |
— |
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$ |
— |
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Bank Credit Facility—due May 2022(1)
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$ |
231,522 |
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$ |
240,000 |
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$ |
— |
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$ |
— |
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11.00% Bridge Loans—due April 2022(1)
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
169,838 |
|
|
$ |
172,023 |
|
|
9.75% Senior Notes—due July 2022(1)
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
100,681 |
|
|
$ |
102,000 |
|
|
9.75% Senior Notes—due February 2018
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
24,977 |
|
|
$ |
24,977 |
|
|
Old Bank Credit Facility—due February 2019(1)
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
402,062 |
|
|
$ |
403,000 |
|
|
Oil and Natural Gas Derivatives
|
|
$ |
(185,755 |
) |
|
$ |
(185,755 |
) |
|
$ |
(66,830 |
) |
|
$ |
(66,830 |
) |
| (1) |
The carrying amounts are net of discount and deferred
financing costs.
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The following table presents the carrying amounts and estimated
fair values of financial instruments (in thousands):
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December 31, 2017 |
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December 31, 2016 |
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| |
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Carrying
Amount |
|
|
Fair
Value |
|
|
Carrying
Amount |
|
|
Fair
Value |
|
|
11.00% Bridge Loans—due April 2022
|
|
$ |
169,838 |
|
|
$ |
172,023 |
|
|
$ |
— |
|
|
$ |
— |
|
|
9.75% Senior Notes—due July 2022
|
|
$ |
100,681 |
|
|
$ |
102,000 |
|
|
$ |
— |
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|
$ |
— |
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|
9.75% Senior Notes—due February 2018
|
|
$ |
24,977 |
|
|
$ |
24,977 |
|
|
$ |
294,964 |
|
|
$ |
137,850 |
|
|
Bank Credit Facility
|
|
$ |
402,062 |
|
|
$ |
403,000 |
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|
$ |
406,211 |
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|
$ |
408,000 |
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Derivatives
|
|
$ |
(66,830 |
) |
|
$ |
(66,830 |
) |
|
$ |
(15,433 |
) |
|
$ |
(15,433 |
) |
|
| Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations |
The following table presents the impact that derivatives not
qualifying as hedging instruments had on the Company’s
condensed consolidated statements of operations (in thousands):
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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| |
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2018 |
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2017 |
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2018 |
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2017 |
|
|
Price risk management activities income (expense)(1)
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|
$ |
(91,176 |
) |
|
$ |
38,995 |
|
|
$ |
(143,152 |
) |
|
$ |
84,888 |
|
| (2) |
The Company paid $33.6 million and received $9.2
million in net cash settlements for the three months ended
June 30, 2018 and 2017, respectively, and paid $54.1 million
and received $13.7 million in net cash settlements for the six
months ended June 30, 2018 and 2017, respectively.
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The following table presents the impact that derivatives not
qualifying as hedging instruments had on our consolidated
statements of operations (in thousands):
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Year Ended
December 31, |
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2017 |
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2016 |
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2015 |
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Price risk management activities income (expense)(1)
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|
$ |
(27,563 |
) |
|
$ |
(57,398 |
) |
|
$ |
182,196 |
|
| (1) |
The Company received net cash settlements of $23.8
million, $172.2 million and $181.9 million for the years ended
December 31, 2017, 2016 and 2015, respectively.
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| Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis |
The following tables provide additional information related to
financial instruments measured at fair value on a recurring basis
(in thousands):
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| |
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June 30, 2018 |
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|
Level 1 |
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Level 2 |
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|
Level 3 |
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Total |
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Assets:
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Oil and natural gas derivatives
|
|
$ |
— |
|
|
$ |
733 |
|
|
$ |
— |
|
|
$ |
733 |
|
|
Liabilities:
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Oil and natural gas derivatives
|
|
|
— |
|
|
|
(186,488 |
) |
|
|
— |
|
|
|
(186,488 |
) |
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|
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Total net liability
|
|
$ |
— |
|
|
$ |
(185,755 |
) |
|
$ |
— |
|
|
$ |
(185,755 |
) |
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| |
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December 31, 2017 |
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| |
|
Level 1 |
|
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Level 2 |
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|
Level 3 |
|
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Total |
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Assets:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
— |
|
|
$ |
1,908 |
|
|
$ |
— |
|
|
$ |
1,908 |
|
|
Liabilities:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
|
— |
|
|
|
(68,738 |
) |
|
|
— |
|
|
|
(68,738 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net liability
|
|
$ |
— |
|
|
$ |
(66,830 |
) |
|
$ |
— |
|
|
$ |
(66,830 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables provide additional information related to
financial instruments measured at fair value on a recurring basis
(in thousands):
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|
|
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|
| |
|
December 31, 2017 |
|
| |
|
Level 1 |
|
|
Level 2 |
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|
Level 3 |
|
|
Total |
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|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas swaps
|
|
$ |
— |
|
|
$ |
1,908 |
|
|
$ |
— |
|
|
$ |
1,908 |
|
|
Liabilities:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas swaps
|
|
|
— |
|
|
|
(68,738 |
) |
|
|
— |
|
|
|
(68,738 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net liability
|
|
$ |
— |
|
|
$ |
(66,830 |
) |
|
$ |
— |
|
|
$ |
(66,830 |
) |
|
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|
|
|
|
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|
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|
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|
|
|
|
|
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|
| |
|
December 31, 2016 |
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Assets:
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Oil and natural gas swaps and costless collars
|
|
$ |
— |
|
|
$ |
20,469 |
|
|
$ |
— |
|
|
$ |
20,469 |
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas swaps and costless collars
|
|
|
— |
|
|
|
(35,902 |
) |
|
|
— |
|
|
|
(35,902 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net liability
|
|
$ |
— |
|
|
$ |
(15,433 |
) |
|
$ |
— |
|
|
$ |
(15,433 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Fair Value of Derivative Financial Instruments |
The following table presents the fair value of derivative financial
instruments at June 30, 2018 and December 31, 2017 (in
thousands):
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| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
Assets from price risk management activities—current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
499 |
|
|
$ |
1,563 |
|
|
Assets from price risk management activities—non-current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
234 |
|
|
$ |
345 |
|
|
Liabilities from price risk management
activities—current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
154,722 |
|
|
$ |
49,957 |
|
|
Liabilities from price risk management
activities—non-current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
31,766 |
|
|
$ |
18,781 |
|
|
The following table presents the fair value of derivative financial
instruments at December 31, 2017 and 2016 (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2017 |
|
|
December 31,
2016 |
|
|
Assets from price risk management activities—current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
1,563 |
|
|
$ |
20,176 |
|
|
Assets from price risk management activities—non-current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
345 |
|
|
$ |
293 |
|
|
Liabilities from price risk management
activities—current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
49,957 |
|
|
$ |
27,147 |
|
|
Liabilities from price risk management
activities—non-current:
|
|
|
|
|
|
|
|
|
|
Oil and natural gas derivatives
|
|
$ |
18,781 |
|
|
$ |
8,755 |
|
|