Financials

v3.10.0.1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 124,571 $ 99,557
Accounts receivable—oil and natural gas sales 157,391 146,773
Accounts receivable—joint interest and other 39,511 35,440
Accounts receivable—related parties 79 0
Prepaid expenses and other current assets 9,742 4,912
Short-term derivative instruments 19,809 78,847
Total current assets 351,103 365,529
Property and equipment:    
Oil and natural gas properties, full-cost accounting, $2,925,145 and $2,912,974 excluded from amortization in 2018 and 2017, respectively 9,936,714 9,169,156
Other property and equipment 92,388 86,754
Accumulated depletion, depreciation, amortization and impairment (4,506,306) (4,153,733)
Property and equipment, net 5,522,796 5,102,177
Other assets:    
Equity investments 232,529 302,112
Long-term derivative instruments 3,530 8,685
Deferred tax asset 0 1,208
Inventories 8,234 8,227
Other assets 17,038 19,814
Total other assets 261,331 340,046
Total assets 6,135,230 5,807,752
Current liabilities:    
Accounts payable and accrued liabilities 582,464 553,609
Asset retirement obligation—current 120 120
Short-term derivative instruments 62,601 32,534
Current maturities of long-term debt 647 622
Total current liabilities 645,832 586,885
Long-term derivative instruments 15,101 2,989
Asset retirement obligation—long-term 78,411 74,980
Deferred tax liability 3,046 0
Other non-current liabilities 0 2,963
Long-term debt, net of current maturities 2,100,825 2,038,321
Total liabilities 2,843,215 2,706,138
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 0 0
Stockholders’ equity:    
Common stock - $.01 par value, 200,000,000 authorized, 173,218,643 issued and outstanding at September 30, 2018 and 183,105,910 at December 31, 2017 1,732 1,831
Paid-in capital 4,316,006 4,416,250
Accumulated other comprehensive loss (46,354) (40,539)
Retained deficit (979,369) (1,275,928)
Total stockholders’ equity 3,292,015 3,101,614
Total liabilities and stockholders’ equity 6,135,230 5,807,752
Eliminations    
Current assets:    
Cash and cash equivalents 0 0
Accounts receivable—oil and natural gas sales 0 0
Accounts receivable—joint interest and other 0 0
Accounts receivable—related parties 0  
Prepaid expenses and other current assets 0 0
Short-term derivative instruments 0 0
Total current assets (902,692) (617,813)
Property and equipment:    
Oil and natural gas properties, full-cost accounting, $2,925,145 and $2,912,974 excluded from amortization in 2018 and 2017, respectively (729) (729)
Other property and equipment 0 0
Accumulated depletion, depreciation, amortization and impairment 0 0
Property and equipment, net (729) (729)
Other assets:    
Equity investments (2,543,991) (2,194,848)
Long-term derivative instruments 0 0
Deferred tax asset   0
Inventories 0 0
Other assets 0 0
Total other assets (2,543,991) (2,194,848)
Total assets (3,447,412) (2,813,390)
Current liabilities:    
Accounts payable and accrued liabilities 0 (1)
Asset retirement obligation—current 0 0
Short-term derivative instruments 0 0
Current maturities of long-term debt 0 0
Total current liabilities (902,692) (617,814)
Long-term derivative instruments 0 0
Asset retirement obligation—long-term 0 0
Deferred tax liability 0  
Other non-current liabilities   0
Long-term debt, net of current maturities 0 0
Total liabilities (902,692) (617,814)
Stockholders’ equity:    
Common stock - $.01 par value, 200,000,000 authorized, 173,218,643 issued and outstanding at September 30, 2018 and 183,105,910 at December 31, 2017 0 0
Paid-in capital (2,177,224) (2,174,905)
Accumulated other comprehensive loss 44,338 38,593
Retained deficit (411,834) (59,264)
Total stockholders’ equity (2,544,720) (2,195,576)
Total liabilities and stockholders’ equity (3,447,412) (2,813,390)
Guarantors | Reportable legal entities    
Current assets:    
Cash and cash equivalents 35,357 31,649
Accounts receivable—oil and natural gas sales 45,928 34,087
Accounts receivable—joint interest and other 20,445 20,005
Accounts receivable—related parties 0  
Prepaid expenses and other current assets 2,221 193
Short-term derivative instruments 0 0
Total current assets 344,324 149,308
Property and equipment:    
Oil and natural gas properties, full-cost accounting, $2,925,145 and $2,912,974 excluded from amortization in 2018 and 2017, respectively 2,934,047 2,607,738
Other property and equipment 751 43
Accumulated depletion, depreciation, amortization and impairment (39) (37)
Property and equipment, net 2,934,759 2,607,744
Other assets:    
Equity investments   77,744
Long-term derivative instruments 0 0
Deferred tax asset   0
Inventories 1,434 2,411
Other assets 4,020 7,331
Total other assets 5,454 87,486
Total assets 3,284,537 2,844,538
Current liabilities:    
Accounts payable and accrued liabilities 118,038 137,361
Asset retirement obligation—current 0 0
Short-term derivative instruments 0 0
Current maturities of long-term debt 0 0
Total current liabilities 780,292 691,674
Long-term derivative instruments 0 0
Asset retirement obligation—long-term 12,777 11,839
Deferred tax liability 0  
Other non-current liabilities   2,963
Long-term debt, net of current maturities 0 0
Total liabilities 793,069 706,476
Stockholders’ equity:    
Common stock - $.01 par value, 200,000,000 authorized, 173,218,643 issued and outstanding at September 30, 2018 and 183,105,910 at December 31, 2017 0 0
Paid-in capital 1,915,598 1,915,598
Accumulated other comprehensive loss 0 0
Retained deficit 575,870 222,464
Total stockholders’ equity 2,491,468 2,138,062
Total liabilities and stockholders’ equity 3,284,537 2,844,538
Non-Guarantor | Reportable legal entities    
Current assets:    
Cash and cash equivalents 0 0
Accounts receivable—oil and natural gas sales 0 0
Accounts receivable—joint interest and other 0 0
Accounts receivable—related parties 0  
Prepaid expenses and other current assets 0 0
Short-term derivative instruments 0 0
Total current assets 0 0
Property and equipment:    
Oil and natural gas properties, full-cost accounting, $2,925,145 and $2,912,974 excluded from amortization in 2018 and 2017, respectively 0 0
Other property and equipment 0 0
Accumulated depletion, depreciation, amortization and impairment 0 0
Property and equipment, net 0 0
Other assets:    
Equity investments 53,380 57,641
Long-term derivative instruments 0 0
Deferred tax asset   0
Inventories 0 0
Other assets 0 0
Total other assets 53,380 57,641
Total assets 53,380 57,641
Current liabilities:    
Accounts payable and accrued liabilities 0 0
Asset retirement obligation—current 0 0
Short-term derivative instruments 0 0
Current maturities of long-term debt 0 0
Total current liabilities 128 127
Long-term derivative instruments 0 0
Asset retirement obligation—long-term 0 0
Deferred tax liability 0  
Other non-current liabilities   0
Long-term debt, net of current maturities 0 0
Total liabilities 128 127
Stockholders’ equity:    
Common stock - $.01 par value, 200,000,000 authorized, 173,218,643 issued and outstanding at September 30, 2018 and 183,105,910 at December 31, 2017 0 0
Paid-in capital 261,626 259,307
Accumulated other comprehensive loss (44,338) (38,593)
Retained deficit (164,036) (163,200)
Total stockholders’ equity 53,252 57,514
Total liabilities and stockholders’ equity 53,380 57,641
Parent | Reportable legal entities    
Current assets:    
Cash and cash equivalents 89,214 67,908
Accounts receivable—oil and natural gas sales 111,463 112,686
Accounts receivable—joint interest and other 19,066 15,435
Accounts receivable—related parties 79  
Prepaid expenses and other current assets 7,521 4,719
Short-term derivative instruments 19,809 78,847
Total current assets 909,471 834,034
Property and equipment:    
Oil and natural gas properties, full-cost accounting, $2,925,145 and $2,912,974 excluded from amortization in 2018 and 2017, respectively 7,003,396 6,562,147
Other property and equipment 91,637 86,711
Accumulated depletion, depreciation, amortization and impairment (4,506,267) (4,153,696)
Property and equipment, net 2,588,766 2,495,162
Other assets:    
Equity investments 2,723,140 2,361,575
Long-term derivative instruments 3,530 8,685
Deferred tax asset   1,208
Inventories 6,800 5,816
Other assets 13,018 12,483
Total other assets 2,746,488 2,389,767
Total assets 6,244,725 5,718,963
Current liabilities:    
Accounts payable and accrued liabilities 464,426 416,249
Asset retirement obligation—current 120 120
Short-term derivative instruments 62,601 32,534
Current maturities of long-term debt 647 622
Total current liabilities 768,104 512,898
Long-term derivative instruments 15,101 2,989
Asset retirement obligation—long-term 65,634 63,141
Deferred tax liability 3,046  
Other non-current liabilities   0
Long-term debt, net of current maturities 2,100,825 2,038,321
Total liabilities 2,952,710 2,617,349
Stockholders’ equity:    
Common stock - $.01 par value, 200,000,000 authorized, 173,218,643 issued and outstanding at September 30, 2018 and 183,105,910 at December 31, 2017 1,732 1,831
Paid-in capital 4,316,006 4,416,250
Accumulated other comprehensive loss (46,354) (40,539)
Retained deficit (979,369) (1,275,928)
Total stockholders’ equity 3,292,015 3,101,614
Total liabilities and stockholders’ equity $ 6,244,725 $ 5,718,963

Source

v3.10.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Revenues:        
Net (loss) gain on natural gas, oil, and NGL derivatives $ (9,663) $ (22,860) $ (96,737) $ 141,588
Total revenues 360,962 265,498 939,094 922,455
Costs and expenses:        
Lease operating expenses 22,325 20,020 64,143 60,044
Production taxes 9,348 5,419 23,861 14,464
Midstream gathering and processing 78,913 69,372 214,546 176,258
Depreciation, depletion and amortization 119,915 106,650 352,848 254,887
General and administrative 15,848 13,065 42,955 37,922
Accretion expense 1,037 456 3,056 1,148
Acquisition expense 0 33 0 2,391
Total costs and expenses 247,386 215,015 701,409 547,114
INCOME (LOSS) FROM OPERATIONS 113,576 50,483 237,685 375,341
OTHER (INCOME) EXPENSE:        
Interest expense 33,253 27,130 100,922 74,797
Interest income (92) (37) (162) (927)
Litigation settlement 917 0 917 0
Insurance proceeds 0 0 (231) 0
Gain on sale of equity method investments (2,733) 0 (124,768) (12,523)
(Income) loss from equity method investments, net (12,858) 2,737 (35,282) 33,468
Other income (61) (345) (201) (863)
Total other (income) expense 18,426 29,485 (58,805) 93,952
INCOME (LOSS) BEFORE INCOME TAXES 95,150 20,998 296,490 281,389
INCOME TAX EXPENSE (BENEFIT) 0 2,763 (69) 2,763
NET INCOME (LOSS) $ 95,150 $ 18,235 $ 296,559 $ 278,626
NET INCOME PER COMMON SHARE:        
Basic (in usd per share) $ 0.55 $ 0.10 $ 1.69 $ 1.56
Diluted (in usd per share) $ 0.55 $ 0.10 $ 1.68 $ 1.56
Weighted average common shares outstanding - Basic (in shares) 173,057,538 182,957,416 175,776,312 178,736,569
Weighted average common shares outstanding - Diluted (in shares) 173,304,914 183,008,436 176,440,461 179,130,570
Natural gas sales        
Revenues:        
Revenue from contract with customer $ 271,167 $ 223,340 $ 753,261 $ 606,544
Oil and condensate sales        
Revenues:        
Revenue from contract with customer 45,682 31,459 140,687 85,338
Natural gas liquid sales        
Revenues:        
Revenue from contract with customer $ 53,776 $ 33,559 $ 141,883 $ 88,985

Source

v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net income $ 296,559 $ 278,626
Adjustments to reconcile net income to net cash provided by operating activities:    
Accretion expense 3,056 1,148
Depletion, depreciation and amortization 352,848 254,887
Stock-based compensation expense 5,792 4,793
(Income) loss from equity investments (35,040) 34,018
Change in fair value of derivative instruments 106,373 (129,692)
Deferred income tax benefit (69) 0
Amortization of loan commitment fees 4,554 3,548
Gain on sale of equity method investments (124,768) (12,523)
Distributions from equity method investments 1,978 0
Changes in operating assets and liabilities:    
Increase in accounts receivable—oil and natural gas sales (10,618) (20,056)
Increase in accounts receivable—joint interest and other (2,277) (23,289)
Increase in accounts receivable—related parties (79) (346)
Increase in prepaid expenses and other current assets (4,830) (2,531)
Decrease (increase) in other assets 1,228 (5,665)
Increase in accounts payable, accrued liabilities and other 14,968 111,335
Settlement of asset retirement obligation (719) (2,520)
Net cash provided by operating activities 608,956 491,733
Cash flows from investing activities:    
Additions to other property and equipment (7,134) (16,288)
Acquisition of oil and natural gas properties 0 (1,339,456)
Additions to oil and natural gas properties (755,263) (789,743)
Proceeds from sale of oil and natural gas properties 4,820 4,079
Proceeds from sale of other property and equipment 217 658
Proceeds from sale of equity method investments 226,487 0
Contributions to equity method investments (2,318) (44,844)
Distributions from equity method investments 446 4,114
Net cash used in investing activities (532,745) (2,181,480)
Cash flows from financing activities:    
Principal payments on borrowings (165,428) (183)
Borrowings on line of credit 225,000 365,000
Borrowings on term loan 0 2,951
Debt issuance costs and loan commitment fees (772) (8,261)
Payments on repurchase of stock (109,997) 0
Proceeds from issuance of common stock, net of offering costs 0 (5,364)
Net cash (used in) provided by financing activities (51,197) 354,143
Net increase (decrease) in cash, cash equivalents and restricted cash 25,014 (1,335,604)
Cash, cash equivalents and restricted cash at beginning of period 99,557 1,460,875
Cash, cash equivalents and restricted cash at end of period 124,571 125,271
Supplemental disclosure of cash flow information:    
Interest payments 75,045 50,826
Income tax payments 0 0
Supplemental disclosure of non-cash transactions:    
Capitalized stock-based compensation 3,862 3,195
Asset retirement obligation capitalized 1,094 11,557
Interest capitalized 3,956 8,753
Foreign currency translation (loss) gain on equity method investments $ (5,815) $ 12,719

Source