Change in Accounting Principle (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Current assets:
Assets held for sale	$—	$606,614	$606,614
Oil and natural gas properties:
Proved properties	10,949,991	(2,442,302)	8,507,689
Accumulated depreciation, depletion, amortization and impairments	(6,597,479)	2,306,431	(4,291,048)
Unproved properties	1,784,428	(581,260)	1,203,168
Total oil and gas properties, net	6,136,940	(717,131)	5,419,809
Deferred income taxes	157,629	40,905	198,534
Total assets	$6,666,704	($101,146)	$6,565,558
Stockholders’ equity:
Accumulated deficit	(383,141)	(101,146)	(484,287)
Total stockholders' equity	3,643,818	(101,146)	3,542,672
Total liabilities and stockholders' equity	$6,666,704	($101,146)	$6,565,558

	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 June 30, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands, except per share data)
Operating Expenses:
Exploration	$—	$1,882	$1,882
Depreciation, depletion and amortization	135,135	(7,787)	127,348
Impairment of oil and gas properties	—	406,898	406,898
General and administrative	17,149	12,619	29,768
Income (Loss) From Operations	190,856	(413,612)	(222,756)
Other Expenses:
Interest expense	19,520	27,719	47,239
Income (Loss) Before Income Taxes	177,223	(441,331)	(264,108)
Income tax benefit	88,653	67,559	156,212
Net Income (Loss)	$265,876	($373,772)	($107,896)
Net Income (Loss) Per Common Share:
Basic	$4.30		($1.74)
Diluted	$4.30		($1.74)

	Three Months Ended June 30, 2022
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands, except per share data)
Operating Expenses:
Exploration	$—	$2,410	$2,410
Depreciation, depletion and amortization	109,409	6,547	115,956
General and administrative	10,909	9,266	20,175
Income From Operations	496,825	(18,223)	478,602
Other Expenses:
Interest expense	20,691	26,304	46,995
Income Before Income Taxes	351,018	(44,527)	306,491
Income tax expense	(3,009)	(231)	(3,240)
Net Income	$348,009	($44,758)	$303,251
Net Income Per Common Share:
Basic	$5.64		$4.92
Diluted	$5.62		$4.90

	Six Months Ended June 30, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands, except per share data)
Operating Expenses:
Exploration	$—	$4,114	$4,114
Depreciation, depletion and amortization	258,035	(4,722)	253,313
Impairment of oil and gas properties	—	406,898	406,898
General and administrative	34,290	23,276	57,566
Income (Loss) From Operations	391,001	(429,567)	(38,566)
Other Expenses:
Interest expense	38,673	54,872	93,545
Income (Loss) Before Income Taxes	390,273	(484,438)	(94,165)
Income tax benefit	163,973	42,934	206,907
Net Income	$554,246	($441,504)	$112,742
Net Income Per Common Share:
Basic	$8.98		$1.83
Diluted	$8.95		$1.82

	Six Months Ended June 30, 2022
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands, except per share data)
Operating Expenses:
Exploration	$—	$4,295	$4,295
Depreciation, depletion and amortization	212,388	17,211	229,599
General and administrative	28,030	19,202	47,232
Income From Operations	916,122	(40,708)	875,414
Other Expenses:
Interest expense	42,249	51,842	94,091
Income Before Income Taxes	391,239	(92,550)	298,689
Income tax expense	(3,493)	340	(3,153)
Net Income	$387,746	($92,210)	$295,536
Net Income Per Common Share:
Basic	$6.30		$4.80
Diluted	$6.26		$4.77

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

	Six Months Ended June 30, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Cash flows from operating activities:
Net income	$554,246	($441,504)	$112,742
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	258,035	(4,722)	253,313
Impairment of oil and gas properties	—	406,898	406,898
Amortization of non-cash debt related items, net	2,168	3,077	5,245
Deferred income tax benefit	(161,907)	(42,934)	(204,841)
Non-cash expense related to share-based awards	2,124	3,445	5,569
Net cash provided by operating activities	603,175	(75,740)	527,435
Cash flows from investing activities:
Capital expenditures	(570,223)	71,626	(498,597)
Acquisition of oil and gas properties	(18,564)	4,114	(14,450)
Net cash used in investing activities	(624,312)	75,740	(548,572)
Net change in cash and cash equivalents	255	—	255
Balance, beginning of period	3,395	—	3,395
Balance, end of period	$3,650	$—	$3,650

	Six Months Ended June 30, 2022
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Cash flows from operating activities:
Net income	$387,746	($92,210)	$295,536
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	212,388	17,211	229,599
Amortization of non-cash debt related items, net	3,201	3,920	7,121
Non-cash expense related to share-based awards	956	1,730	2,686
Changes in current assets and liabilities:
Accounts payable and accrued liabilities	(18,940)	(340)	(19,280)
Net cash provided by operating activities	653,595	(69,689)	583,906
Cash flows from investing activities:
Capital expenditures	(413,939)	69,058	(344,881)
Acquisition of oil and gas properties	(15,945)	631	(15,314)
Net cash used in investing activities	(435,756)	69,689	(366,067)
Net change in cash and cash equivalents	(3,782)	—	(3,782)
Balance, beginning of period	9,882	—	9,882
Balance, end of period	$6,100	$—	$6,100

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

	As of June 30, 2023
	Under Full Cost	Changes	Under Successful Efforts
	(In thousands)
Accumulated deficit	($383,141)	($101,146)	($484,287)
Total stockholders’ equity	$3,643,818	($101,146)	$3,542,672

	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