Change in Accounting Principle (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of Effects of the Change to the Successful Efforts Method

The following tables present the effects of the change to the successful efforts method in the consolidated balance sheets:

	As of March 31, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Oil and natural gas properties:
Proved properties	$10,647,471	($1,107,849)	$9,539,622
Accumulated depreciation, depletion, amortization and impairments	(6,464,299)	1,924,204	(4,540,095)
Unproved properties	1,744,649	(517,074)	1,227,575
Total oil and gas properties, net	5,927,821	299,281	6,227,102
Deferred income taxes	72,323	(26,654)	45,669
Total assets	$6,379,038	$272,627	$6,651,665
Stockholders’ equity:
Accumulated deficit	(649,018)	272,627	(376,391)
Total stockholders' equity	3,377,131	272,627	3,649,758
Total liabilities and stockholders' equity	$6,379,038	$272,627	$6,651,665

	As of December 31, 2022
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Oil and natural gas properties:
Proved properties	$10,367,478	($1,099,343)	$9,268,135
Accumulated depreciation, depletion, amortization and impairments	(6,343,875)	1,927,269	(4,416,606)
Unproved properties	1,711,306	(485,538)	1,225,768
Total oil and gas properties, net	5,734,909	342,388	6,077,297
Total assets	$6,146,081	$342,388	$6,488,469
Deferred income taxes (1)	4,279	2,029	6,308
Stockholders’ equity:
Accumulated deficit	(937,388)	340,359	(597,029)
Total stockholders' equity	3,085,422	340,359	3,425,781
Total liabilities and stockholders' equity	$6,146,081	$342,388	$6,488,469

(1)    Included in “Other long-term liabilities” in the consolidated balance sheets.

The following tables present the effects of the change to the successful efforts method in the consolidated statements of operations:

	Three Months Ended March 31, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands, except per share data)
Operating Expenses:
Exploration	$—	$2,232	$2,232
Depreciation, depletion and amortization	122,900	3,065	125,965
General and administrative	17,140	10,658	27,798
Income From Operations	200,145	(15,955)	184,190
Other Expenses:
Interest expense	19,153	27,153	46,306
Income Before Income Taxes	213,050	(43,107)	169,943
Income tax benefit (expense)	75,320	(24,625)	50,695
Net Income	$288,370	($67,732)	$220,638
Net Income Per Common Share:
Basic	$4.68		$3.58
Diluted	$4.66		$3.57

	Three Months Ended March 31, 2022
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands, except per share data)
Operating Expenses:
Exploration	$—	$1,885	$1,885
Depreciation, depletion and amortization	102,979	10,664	113,643
General and administrative	17,121	9,936	27,057
Income From Operations	419,297	(22,485)	396,812
Other Expenses:
Interest expense	21,558	25,538	47,096
Income (Loss) Before Income Taxes	40,221	(48,023)	(7,802)
Income tax benefit (expense)	(484)	571	87
Net Income (Loss)	$39,737	($47,452)	($7,715)
Net Income (Loss) Per Common Share:
Basic	$0.65		($0.13)
Diluted	$0.64		($0.13)

The following tables present the effects of the change to the successful efforts method in the consolidated statements of cash flows:

	Three Months Ended March 31, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Cash flows from operating activities:
Net income	$288,370	($67,732)	$220,638
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	122,900	3,065	125,965
Amortization of non-cash debt related items, net	1,088	1,543	2,631
Deferred income tax benefit	(76,602)	24,625	(51,977)
Non-cash expense related to share-based awards	757	1,124	1,881
Net cash provided by operating activities	285,288	(37,375)	247,913
Cash flows from investing activities:
Capital expenditures	(240,043)	35,143	(204,900)
Acquisition of oil and gas properties	(8,223)	2,232	(5,991)
Net cash used in investing activities	(247,284)	37,375	(209,909)
Net change in cash and cash equivalents	(25)	—	(25)
Balance, beginning of period	3,395	—	3,395
Balance, end of period	$3,370	$—	$3,370

	Three Months Ended March 31, 2022
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$39,737	($47,452)	($7,715)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	102,979	10,664	113,643
Amortization of non-cash debt related items, net	1,716	2,033	3,749
Non-cash expense related to share-based awards	4,166	1,877	6,043
Changes in current assets and liabilities:
Accounts payable and accrued liabilities	(12,987)	(571)	(13,558)
Net cash provided by operating activities	281,270	(33,449)	247,821
Cash flows from investing activities:
Capital expenditures	(201,478)	33,208	(168,270)
Acquisition of oil and gas properties	(9,409)	241	(9,168)
Net cash used in investing activities	(221,939)	33,449	(188,490)
Net change in cash and cash equivalents	(5,732)	—	(5,732)
Balance, beginning of period	9,882	—	9,882
Balance, end of period	$4,150	$—	$4,150

The following tables present the effects of the change to the successful efforts method in the consolidated statements of stockholders’ equity:

	As of March 31, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Accumulated deficit	($649,018)	$272,627	($376,391)
Total stockholders’ equity	$3,377,131	$272,627	$3,649,758

	As of December 31, 2022
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Accumulated deficit	($937,388)	$340,359	($597,029)
Total stockholders’ equity	$3,085,422	$340,359	$3,425,781