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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Stone Energy Corp. | NYSE:SGY | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 35.49 | 0 | 01:00:00 |
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
72-1235413
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
625 E. Kaliste Saloom Road
|
|
Lafayette, Louisiana
|
70508
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
ý
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
|
|
|
Page
|
|
||
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
||
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(Unaudited)
|
|
(Note 1)
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
169,194
|
|
|
$
|
10,759
|
|
Accounts receivable
|
38,276
|
|
|
48,031
|
|
||
Fair value of derivative contracts
|
11,887
|
|
|
38,576
|
|
||
Current income tax receivable
|
46,174
|
|
|
46,174
|
|
||
Other current assets
|
12,080
|
|
|
6,881
|
|
||
Total current assets
|
277,611
|
|
|
150,421
|
|
||
Oil and gas properties, full cost method of accounting:
|
|
|
|
||||
Proved
|
9,518,245
|
|
|
9,375,898
|
|
||
Less: accumulated depreciation, depletion and amortization
|
(8,960,440
|
)
|
|
(8,603,955
|
)
|
||
Net proved oil and gas properties
|
557,805
|
|
|
771,943
|
|
||
Unevaluated
|
425,204
|
|
|
440,043
|
|
||
Other property and equipment, net
|
27,968
|
|
|
29,289
|
|
||
Other assets, net
|
28,183
|
|
|
18,473
|
|
||
Total assets
|
$
|
1,316,771
|
|
|
$
|
1,410,169
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable to vendors
|
$
|
28,914
|
|
|
$
|
82,207
|
|
Undistributed oil and gas proceeds
|
5,071
|
|
|
5,992
|
|
||
Accrued interest
|
9,773
|
|
|
9,022
|
|
||
Fair value of derivative contracts
|
37
|
|
|
—
|
|
||
Asset retirement obligations
|
33,695
|
|
|
21,291
|
|
||
Current portion of long-term debt
|
288,336
|
|
|
—
|
|
||
Other current liabilities
|
34,793
|
|
|
40,712
|
|
||
Total current liabilities
|
400,619
|
|
|
159,224
|
|
||
Long-term debt
|
1,122,901
|
|
|
1,060,955
|
|
||
Asset retirement obligations
|
203,661
|
|
|
204,575
|
|
||
Other long-term liabilities
|
18,446
|
|
|
25,204
|
|
||
Total liabilities
|
1,745,627
|
|
|
1,449,958
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $.01 par value; authorized 30,000,000 shares; issued 5,592,641 and 5,530,232 shares, respectively
|
56
|
|
|
55
|
|
||
Treasury stock (1,658 shares, at cost)
|
(860
|
)
|
|
(860
|
)
|
||
Additional paid-in capital
|
1,654,731
|
|
|
1,648,687
|
|
||
Accumulated deficit
|
(2,090,168
|
)
|
|
(1,705,623
|
)
|
||
Accumulated other comprehensive income
|
7,385
|
|
|
17,952
|
|
||
Total stockholders’ equity
|
(428,856
|
)
|
|
(39,789
|
)
|
||
Total liabilities and stockholders’ equity
|
$
|
1,316,771
|
|
|
$
|
1,410,169
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating revenue:
|
|
|
|
|
|
|
|
||||||||
Oil production
|
$
|
72,711
|
|
|
$
|
111,585
|
|
|
$
|
132,986
|
|
|
$
|
219,092
|
|
Natural gas production
|
12,553
|
|
|
26,907
|
|
|
27,726
|
|
|
55,244
|
|
||||
Natural gas liquids production
|
3,718
|
|
|
11,033
|
|
|
8,453
|
|
|
23,399
|
|
||||
Other operational income
|
337
|
|
|
—
|
|
|
693
|
|
|
1,792
|
|
||||
Derivative income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
2,427
|
|
||||
Total operating revenue
|
89,319
|
|
|
149,525
|
|
|
169,858
|
|
|
301,954
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses
|
18,826
|
|
|
27,429
|
|
|
38,373
|
|
|
55,006
|
|
||||
Transportation, processing and gathering expenses
|
7,183
|
|
|
19,940
|
|
|
8,024
|
|
|
37,643
|
|
||||
Production taxes
|
578
|
|
|
1,827
|
|
|
1,059
|
|
|
4,342
|
|
||||
Depreciation, depletion and amortization
|
46,231
|
|
|
77,951
|
|
|
107,789
|
|
|
164,373
|
|
||||
Write-down of oil and gas properties
|
118,649
|
|
|
224,294
|
|
|
247,853
|
|
|
715,706
|
|
||||
Accretion expense
|
10,082
|
|
|
6,408
|
|
|
20,065
|
|
|
12,817
|
|
||||
Salaries, general and administrative expenses
|
20,014
|
|
|
16,418
|
|
|
32,768
|
|
|
33,425
|
|
||||
Incentive compensation expense
|
4,670
|
|
|
1,264
|
|
|
9,649
|
|
|
2,827
|
|
||||
Restructuring fees
|
9,436
|
|
|
—
|
|
|
10,389
|
|
|
—
|
|
||||
Other operational expenses
|
27,680
|
|
|
1,454
|
|
|
40,207
|
|
|
1,170
|
|
||||
Derivative expense, net
|
626
|
|
|
701
|
|
|
488
|
|
|
—
|
|
||||
Total operating expenses
|
263,975
|
|
|
377,686
|
|
|
516,664
|
|
|
1,027,309
|
|
||||
Loss from operations
|
(174,656
|
)
|
|
(228,161
|
)
|
|
(346,806
|
)
|
|
(725,355
|
)
|
||||
Other (income) expenses:
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
17,599
|
|
|
10,472
|
|
|
32,840
|
|
|
20,837
|
|
||||
Interest income
|
(302
|
)
|
|
(66
|
)
|
|
(416
|
)
|
|
(188
|
)
|
||||
Other income
|
(270
|
)
|
|
(613
|
)
|
|
(568
|
)
|
|
(756
|
)
|
||||
Other expense
|
9
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Total other expenses
|
17,036
|
|
|
9,793
|
|
|
31,867
|
|
|
19,893
|
|
||||
Loss before income taxes
|
(191,692
|
)
|
|
(237,954
|
)
|
|
(378,673
|
)
|
|
(745,248
|
)
|
||||
Provision (benefit) for income taxes:
|
|
|
|
|
|
|
|
||||||||
Current
|
(2,113
|
)
|
|
—
|
|
|
(3,187
|
)
|
|
—
|
|
||||
Deferred
|
6,182
|
|
|
(85,048
|
)
|
|
9,059
|
|
|
(264,954
|
)
|
||||
Total income taxes
|
4,069
|
|
|
(85,048
|
)
|
|
5,872
|
|
|
(264,954
|
)
|
||||
Net loss
|
$
|
(195,761
|
)
|
|
$
|
(152,906
|
)
|
|
$
|
(384,545
|
)
|
|
$
|
(480,294
|
)
|
Basic loss per share
|
$
|
(35.05
|
)
|
|
$
|
(27.68
|
)
|
|
$
|
(68.94
|
)
|
|
$
|
(86.99
|
)
|
Diluted loss per share
|
$
|
(35.05
|
)
|
|
$
|
(27.68
|
)
|
|
$
|
(68.94
|
)
|
|
$
|
(86.99
|
)
|
Average shares outstanding
|
5,585
|
|
|
5,525
|
|
|
5,578
|
|
|
5,521
|
|
||||
Average shares outstanding assuming dilution
|
5,585
|
|
|
5,525
|
|
|
5,578
|
|
|
5,521
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net loss
|
$
|
(195,761
|
)
|
|
$
|
(152,906
|
)
|
|
$
|
(384,545
|
)
|
|
$
|
(480,294
|
)
|
Other comprehensive income (loss), net of tax effect:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
(11,356
|
)
|
|
(31,480
|
)
|
|
(16,640
|
)
|
|
(40,338
|
)
|
||||
Foreign currency translation
|
—
|
|
|
1,324
|
|
|
6,073
|
|
|
(2,321
|
)
|
||||
Comprehensive loss
|
$
|
(207,117
|
)
|
|
$
|
(183,062
|
)
|
|
$
|
(395,112
|
)
|
|
$
|
(522,953
|
)
|
|
Six Months Ended
June 30, |
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net loss
|
$
|
(384,545
|
)
|
|
$
|
(480,294
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, depletion and amortization
|
107,789
|
|
|
164,373
|
|
||
Write-down of oil and gas properties
|
247,853
|
|
|
715,706
|
|
||
Accretion expense
|
20,065
|
|
|
12,817
|
|
||
Deferred income tax provision (benefit)
|
9,059
|
|
|
(264,954
|
)
|
||
Settlement of asset retirement obligations
|
(10,706
|
)
|
|
(35,923
|
)
|
||
Non-cash stock compensation expense
|
4,682
|
|
|
6,028
|
|
||
Non-cash derivative expense
|
1,025
|
|
|
7,931
|
|
||
Non-cash interest expense
|
9,403
|
|
|
8,737
|
|
||
Other non-cash expense
|
6,081
|
|
|
—
|
|
||
Change in current income taxes
|
(3,187
|
)
|
|
7,206
|
|
||
Decrease in accounts receivable
|
9,755
|
|
|
23,047
|
|
||
Increase in other current assets
|
(5,283
|
)
|
|
(1,959
|
)
|
||
Decrease in accounts payable
|
(321
|
)
|
|
(7,826
|
)
|
||
Decrease in other current liabilities
|
(5,920
|
)
|
|
(8,720
|
)
|
||
Other
|
(7,880
|
)
|
|
(504
|
)
|
||
Net cash (used in) provided by operating activities
|
(2,130
|
)
|
|
145,665
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Investment in oil and gas properties
|
(179,311
|
)
|
|
(264,355
|
)
|
||
Proceeds from sale of oil and gas properties, net of expenses
|
—
|
|
|
10,100
|
|
||
Investment in fixed and other assets
|
(898
|
)
|
|
(727
|
)
|
||
Change in restricted funds
|
1,045
|
|
|
179,475
|
|
||
Net cash used in investing activities
|
(179,164
|
)
|
|
(75,507
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from bank borrowings
|
477,000
|
|
|
5,000
|
|
||
Repayments of bank borrowings
|
(135,500
|
)
|
|
(5,000
|
)
|
||
Repayments of building loan
|
(189
|
)
|
|
—
|
|
||
Deferred financing costs
|
(900
|
)
|
|
—
|
|
||
Net payments for share-based compensation
|
(673
|
)
|
|
(3,069
|
)
|
||
Net cash provided by (used in) financing activities
|
339,738
|
|
|
(3,069
|
)
|
||
Effect of exchange rate changes on cash
|
(9
|
)
|
|
78
|
|
||
Net change in cash and cash equivalents
|
158,435
|
|
|
67,167
|
|
||
Cash and cash equivalents, beginning of period
|
10,759
|
|
|
74,488
|
|
||
Cash and cash equivalents, end of period
|
$
|
169,194
|
|
|
$
|
141,655
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
Income (numerator):
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(195,761
|
)
|
|
$
|
(152,906
|
)
|
|
$
|
(384,545
|
)
|
|
$
|
(480,294
|
)
|
Net income attributable to participating securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss attributable to common stock - basic
|
$
|
(195,761
|
)
|
|
$
|
(152,906
|
)
|
|
$
|
(384,545
|
)
|
|
$
|
(480,294
|
)
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(195,761
|
)
|
|
$
|
(152,906
|
)
|
|
$
|
(384,545
|
)
|
|
$
|
(480,294
|
)
|
Net income attributable to participating securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss attributable to common stock - diluted
|
$
|
(195,761
|
)
|
|
$
|
(152,906
|
)
|
|
$
|
(384,545
|
)
|
|
$
|
(480,294
|
)
|
Weighted average shares (denominator):
|
|
|
|
|
|
|
|
||||||||
Weighted average shares - basic
|
5,585
|
|
|
5,525
|
|
|
5,578
|
|
|
5,521
|
|
||||
Dilutive effect of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Dilutive effect of convertible notes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average shares - diluted
|
5,585
|
|
|
5,525
|
|
|
5,578
|
|
|
5,521
|
|
||||
Basic loss per share
|
$
|
(35.05
|
)
|
|
$
|
(27.68
|
)
|
|
$
|
(68.94
|
)
|
|
$
|
(86.99
|
)
|
Diluted loss per share
|
$
|
(35.05
|
)
|
|
$
|
(27.68
|
)
|
|
$
|
(68.94
|
)
|
|
$
|
(86.99
|
)
|
|
Collar (NYMEX)
|
|||||||
|
Oil
|
|||||||
|
Daily Volume
(Bbls/d)
|
|
Floor Price ($)
|
|
Ceiling Price ($)
|
|||
2016
|
1,000
|
|
|
45.00
|
|
|
54.75
|
|
Fair Value of Derivatives Qualifying as Hedging Instruments at
|
|||||||||||
June 30, 2016
|
|||||||||||
(In millions)
|
|||||||||||
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Description
|
Balance Sheet Location
|
|
Fair
Value
|
|
Balance Sheet Location
|
|
Fair
Value
|
||||
Commodity contracts
|
Current assets: Fair value of
derivative contracts
|
|
$
|
11.9
|
|
|
Current liabilities: Fair value
of derivative contracts
|
|
$
|
—
|
|
|
Long-term assets: Fair value
of derivative contracts
|
|
—
|
|
|
Long-term liabilities: Fair
value of derivative contracts
|
|
—
|
|
||
|
|
|
$
|
11.9
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||
Fair Value of Derivatives Qualifying as Hedging Instruments at
|
|||||||||||
December 31, 2015
|
|||||||||||
(In millions)
|
|||||||||||
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Description
|
Balance Sheet Location
|
|
Fair
Value
|
|
Balance Sheet Location
|
|
Fair
Value
|
||||
Commodity contracts
|
Current assets: Fair value of
derivative contracts
|
|
$
|
38.6
|
|
|
Current liabilities: Fair value
of derivative contracts
|
|
$
|
—
|
|
|
Long-term assets: Fair value
of derivative contracts
|
|
—
|
|
|
Long-term liabilities: Fair
value of derivative contracts
|
|
—
|
|
||
|
|
|
$
|
38.6
|
|
|
|
|
$
|
—
|
|
Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations
|
||||||||||||||||||||||||||||
for the Three Months Ended June 30, 2016 and 2015
|
||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
Derivatives in
Cash Flow Hedging Relationships |
|
Amount of Gain
(Loss) Recognized in Other Comprehensive Income on Derivatives |
|
Gain (Loss) Reclassified from
Accumulated Other Comprehensive Income into Income (Effective Portion) (a) |
|
Gain (Loss) Recognized in Income
on Derivatives (Ineffective Portion) |
||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Location
|
|
2016
|
|
2015
|
|
Location
|
|
2016
|
|
2015
|
||||||||||||
Commodity contracts
|
|
$
|
(8.6
|
)
|
|
$
|
(18.8
|
)
|
|
Operating revenue -
oil/natural gas production
|
|
$
|
8.9
|
|
|
$
|
30.4
|
|
|
Derivative income
(expense), net
|
|
$
|
(0.6
|
)
|
|
$
|
(0.4
|
)
|
Total
|
|
$
|
(8.6
|
)
|
|
$
|
(18.8
|
)
|
|
|
|
$
|
8.9
|
|
|
$
|
30.4
|
|
|
|
|
$
|
(0.6
|
)
|
|
$
|
(0.4
|
)
|
(a)
|
For the three months ended
June 30, 2016
, effective hedging contracts increased oil revenue by
$5.1 million
and increased natural gas revenue by
$3.8 million
. For the three months ended
June 30, 2015
, effective hedging contracts increased oil revenue by
$26.4 million
and increased natural gas revenue by
$4.0 million
.
|
Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations
|
||||||||||||||||||||||||||||
for the Six Months Ended June 30, 2016 and 2015
|
||||||||||||||||||||||||||||
(In millions)
|
||||||||||||||||||||||||||||
Derivatives in
Cash Flow Hedging Relationships |
|
Amount of Gain
(Loss) Recognized in Other Comprehensive Income on Derivatives |
|
Gain (Loss) Reclassified from
Accumulated Other Comprehensive Income into Income (Effective Portion) (a) |
|
Gain (Loss) Recognized in Income
on Derivatives (Ineffective Portion) |
||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
Location
|
|
2016
|
|
2015
|
|
Location
|
|
2016
|
|
2015
|
||||||||||||
Commodity contracts
|
|
$
|
(4.0
|
)
|
|
$
|
4.1
|
|
|
Operating revenue -
oil/natural gas production |
|
$
|
21.7
|
|
|
$
|
67.2
|
|
|
Derivative income
(expense), net |
|
$
|
(0.5
|
)
|
|
$
|
0.5
|
|
Total
|
|
$
|
(4.0
|
)
|
|
$
|
4.1
|
|
|
|
|
$
|
21.7
|
|
|
$
|
67.2
|
|
|
|
|
$
|
(0.5
|
)
|
|
$
|
0.5
|
|
(a)
|
For the
six
months ended
June 30, 2016
, effective hedging contracts increased oil revenue by
$14.4 million
and increased natural gas revenue by
$7.3 million
. For the
six
months ended
June 30, 2015
, effective hedging contracts increased oil revenue by
$60.4 million
and increased natural gas revenue by
$6.8 million
.
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In millions)
|
||||||
1
3
⁄
4
% Senior Convertible Notes due 2017
|
$
|
287.9
|
|
|
$
|
279.3
|
|
7
1
⁄
2
% Senior Notes due 2022
|
770.3
|
|
|
770.0
|
|
||
Revolving credit facility
|
341.5
|
|
|
—
|
|
||
4.20% Building Loan
|
11.5
|
|
|
11.7
|
|
||
Total debt
|
1,411.2
|
|
|
1,061.0
|
|
||
Less: current portion of long-term debt
|
(288.3
|
)
|
|
—
|
|
||
Long-term debt
|
$
|
1,122.9
|
|
|
$
|
1,061.0
|
|
|
Six Months Ended
June 30, 2016 |
||
|
(In millions)
|
||
Asset retirement obligations as of the beginning of the period, including current portion
|
$
|
225.9
|
|
Liabilities incurred
|
2.1
|
|
|
Liabilities settled
|
(10.7
|
)
|
|
Accretion expense
|
20.1
|
|
|
Asset retirement obligations as of the end of the period, including current portion
|
$
|
237.4
|
|
|
Fair Value Measurements at
|
||||||||||||||
|
June 30, 2016
|
||||||||||||||
Assets
|
Total
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
(In millions)
|
||||||||||||||
Marketable securities (Other assets)
|
$
|
8.6
|
|
|
$
|
8.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative contracts
|
11.9
|
|
|
—
|
|
|
11.9
|
|
|
—
|
|
||||
Total
|
$
|
20.5
|
|
|
$
|
8.6
|
|
|
$
|
11.9
|
|
|
$
|
—
|
|
|
Fair Value Measurements at
|
||||||||||||||
|
December 31, 2015
|
||||||||||||||
Assets
|
Total
|
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
(In millions)
|
||||||||||||||
Marketable securities (Other assets)
|
$
|
8.5
|
|
|
$
|
8.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative contracts
|
38.6
|
|
|
—
|
|
|
36.6
|
|
|
2.0
|
|
||||
Total
|
$
|
47.1
|
|
|
$
|
8.5
|
|
|
$
|
36.6
|
|
|
$
|
2.0
|
|
|
|
Hedging Contracts, net
|
||
|
|
(In millions)
|
||
Balance as of January 1, 2016
|
|
$
|
2.0
|
|
Total gains/(losses) (realized or unrealized):
|
|
|
||
Included in earnings
|
|
1.1
|
|
|
Included in other comprehensive income
|
|
(1.9
|
)
|
|
Purchases, sales, issuances and settlements
|
|
(1.2
|
)
|
|
Transfers in and out of Level 3
|
|
—
|
|
|
Balance as of June 30, 2016
|
|
$
|
—
|
|
The amount of total gains/(losses) for the period included in earnings (derivative income) attributable to the change in unrealized gain/(losses) relating to derivatives still held at June 30, 2016
|
|
$
|
—
|
|
|
Cash Flow
Hedges
|
|
Foreign
Currency
Items
|
|
Total
|
||||||
Three Months Ended June 30, 2016
|
|
|
|
|
|
||||||
Beginning balance, net of tax
|
$
|
18.7
|
|
|
$
|
—
|
|
|
$
|
18.7
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
||||||
Change in fair value of derivatives
|
(8.6
|
)
|
|
—
|
|
|
(8.6
|
)
|
|||
Income tax effect
|
3.1
|
|
|
—
|
|
|
3.1
|
|
|||
Net of tax
|
(5.5
|
)
|
|
—
|
|
|
(5.5
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
||||||
Operating revenue: oil/natural gas production
|
8.9
|
|
|
—
|
|
|
8.9
|
|
|||
Income tax effect
|
(3.1
|
)
|
|
—
|
|
|
(3.1
|
)
|
|||
Net of tax
|
5.8
|
|
|
—
|
|
|
5.8
|
|
|||
Other comprehensive loss, net of tax
|
(11.3
|
)
|
|
—
|
|
|
(11.3
|
)
|
|||
Ending balance, net of tax
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
7.4
|
|
|
Cash Flow
Hedges
|
|
Foreign
Currency
Items
|
|
Total
|
||||||
Six Months Ended June 30, 2016
|
|
|
|
|
|
||||||
Beginning balance, net of tax
|
$
|
24.0
|
|
|
$
|
(6.0
|
)
|
|
$
|
18.0
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
||||||
Change in fair value of derivatives
|
(4.0
|
)
|
|
—
|
|
|
(4.0
|
)
|
|||
Income tax effect
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|||
Net of tax
|
(2.6
|
)
|
|
—
|
|
|
(2.6
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
||||||
Operating revenue: oil/natural gas production
|
21.7
|
|
|
—
|
|
|
21.7
|
|
|||
Other operational expenses
|
—
|
|
|
(6.0
|
)
|
|
(6.0
|
)
|
|||
Income tax effect
|
(7.7
|
)
|
|
—
|
|
|
(7.7
|
)
|
|||
Net of tax
|
14.0
|
|
|
(6.0
|
)
|
|
8.0
|
|
|||
Other comprehensive income (loss), net of tax
|
(16.6
|
)
|
|
6.0
|
|
|
(10.6
|
)
|
|||
Ending balance, net of tax
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
7.4
|
|
|
Cash Flow
Hedges
|
|
Foreign
Currency
Items
|
|
Total
|
||||||
Three Months Ended June 30, 2015
|
|
|
|
|
|
||||||
Beginning balance, net of tax
|
$
|
77.9
|
|
|
$
|
(7.1
|
)
|
|
$
|
70.8
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
||||||
Change in fair value of derivatives
|
(18.8
|
)
|
|
—
|
|
|
(18.8
|
)
|
|||
Foreign currency translations
|
—
|
|
|
1.3
|
|
|
1.3
|
|
|||
Income tax effect
|
6.9
|
|
|
—
|
|
|
6.9
|
|
|||
Net of tax
|
(11.9
|
)
|
|
1.3
|
|
|
(10.6
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
||||||
Operating revenue: oil/natural gas production
|
30.4
|
|
|
—
|
|
|
30.4
|
|
|||
Income tax effect
|
(10.9
|
)
|
|
—
|
|
|
(10.9
|
)
|
|||
Net of tax
|
19.5
|
|
|
—
|
|
|
19.5
|
|
|||
Other comprehensive income (loss), net of tax
|
(31.4
|
)
|
|
1.3
|
|
|
(30.1
|
)
|
|||
Ending balance, net of tax
|
$
|
46.5
|
|
|
$
|
(5.8
|
)
|
|
$
|
40.7
|
|
|
Cash Flow
Hedges |
|
Foreign
Currency Items |
|
Total
|
||||||
Six Months Ended June 30, 2015
|
|
|
|
|
|
||||||
Beginning balance, net of tax
|
$
|
86.8
|
|
|
$
|
(3.5
|
)
|
|
$
|
83.3
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
||||||
Change in fair value of derivatives
|
4.1
|
|
|
—
|
|
|
4.1
|
|
|||
Foreign currency translations
|
—
|
|
|
(2.3
|
)
|
|
(2.3
|
)
|
|||
Income tax effect
|
(1.3
|
)
|
|
—
|
|
|
(1.3
|
)
|
|||
Net of tax
|
2.8
|
|
|
(2.3
|
)
|
|
0.5
|
|
|||
Amounts reclassified from accumulated other comprehensive income:
|
|
|
|
|
|
||||||
Operating revenue: oil/natural gas production
|
67.2
|
|
|
—
|
|
|
67.2
|
|
|||
Income tax effect
|
(24.1
|
)
|
|
—
|
|
|
(24.1
|
)
|
|||
Net of tax
|
43.1
|
|
|
—
|
|
|
43.1
|
|
|||
Other comprehensive loss, net of tax
|
(40.3
|
)
|
|
(2.3
|
)
|
|
(42.6
|
)
|
|||
Ending balance, net of tax
|
$
|
46.5
|
|
|
$
|
(5.8
|
)
|
|
$
|
40.7
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
169,193
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
169,194
|
|
Accounts receivable
|
25,410
|
|
|
31,171
|
|
|
883
|
|
|
(19,188
|
)
|
|
38,276
|
|
|||||
Fair value of derivative contracts
|
—
|
|
|
11,887
|
|
|
—
|
|
|
—
|
|
|
11,887
|
|
|||||
Current income tax receivable
|
46,174
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,174
|
|
|||||
Other current assets
|
12,080
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,080
|
|
|||||
Total current assets
|
252,857
|
|
|
43,059
|
|
|
883
|
|
|
(19,188
|
)
|
|
277,611
|
|
|||||
Oil and gas properties, full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proved
|
1,907,347
|
|
|
7,565,003
|
|
|
45,895
|
|
|
—
|
|
|
9,518,245
|
|
|||||
Less: accumulated DD&A
|
(1,907,326
|
)
|
|
(7,007,219
|
)
|
|
(45,895
|
)
|
|
—
|
|
|
(8,960,440
|
)
|
|||||
Net proved oil and gas properties
|
21
|
|
|
557,784
|
|
|
—
|
|
|
—
|
|
|
557,805
|
|
|||||
Unevaluated
|
261,971
|
|
|
163,233
|
|
|
—
|
|
|
—
|
|
|
425,204
|
|
|||||
Other property and equipment, net
|
27,968
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,968
|
|
|||||
Other assets, net
|
27,445
|
|
|
738
|
|
|
—
|
|
|
—
|
|
|
28,183
|
|
|||||
Investment in subsidiary
|
503,738
|
|
|
—
|
|
|
—
|
|
|
(503,738
|
)
|
|
—
|
|
|||||
Total assets
|
$
|
1,074,000
|
|
|
$
|
764,814
|
|
|
$
|
883
|
|
|
$
|
(522,926
|
)
|
|
$
|
1,316,771
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable to vendors
|
$
|
23,153
|
|
|
$
|
24,950
|
|
|
$
|
—
|
|
|
$
|
(19,189
|
)
|
|
$
|
28,914
|
|
Undistributed oil and gas proceeds
|
4,379
|
|
|
692
|
|
|
—
|
|
|
—
|
|
|
5,071
|
|
|||||
Accrued interest
|
9,773
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,773
|
|
|||||
Fair value of derivative contracts
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Asset retirement obligations
|
—
|
|
|
33,695
|
|
|
—
|
|
|
—
|
|
|
33,695
|
|
|||||
Current portion of long-term debt
|
288,336
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
288,336
|
|
|||||
Other current liabilities
|
34,513
|
|
|
280
|
|
|
—
|
|
|
—
|
|
|
34,793
|
|
|||||
Total current liabilities
|
360,154
|
|
|
59,654
|
|
|
—
|
|
|
(19,189
|
)
|
|
400,619
|
|
|||||
Long-term debt
|
1,122,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,122,901
|
|
|||||
Asset retirement obligations
|
1,355
|
|
|
202,306
|
|
|
—
|
|
|
—
|
|
|
203,661
|
|
|||||
Other long-term liabilities
|
18,446
|
|
|
|
|
|
—
|
|
|
—
|
|
|
18,446
|
|
|||||
Total liabilities
|
1,502,856
|
|
|
261,960
|
|
|
—
|
|
|
(19,189
|
)
|
|
1,745,627
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Treasury stock
|
(860
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(860
|
)
|
|||||
Additional paid-in capital
|
1,654,731
|
|
|
1,344,577
|
|
|
109,078
|
|
|
(1,453,655
|
)
|
|
1,654,731
|
|
|||||
Accumulated deficit
|
(2,090,168
|
)
|
|
(849,108
|
)
|
|
(108,195
|
)
|
|
957,303
|
|
|
(2,090,168
|
)
|
|||||
Accumulated other comprehensive income
|
7,385
|
|
|
7,385
|
|
|
—
|
|
|
(7,385
|
)
|
|
7,385
|
|
|||||
Total stockholders’ equity
|
(428,856
|
)
|
|
502,854
|
|
|
883
|
|
|
(503,737
|
)
|
|
(428,856
|
)
|
|||||
Total liabilities and stockholders’ equity
|
$
|
1,074,000
|
|
|
$
|
764,814
|
|
|
$
|
883
|
|
|
$
|
(522,926
|
)
|
|
$
|
1,316,771
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
9,681
|
|
|
$
|
2
|
|
|
$
|
1,076
|
|
|
$
|
—
|
|
|
$
|
10,759
|
|
Accounts receivable
|
10,597
|
|
|
39,190
|
|
|
—
|
|
|
(1,756
|
)
|
|
48,031
|
|
|||||
Fair value of derivative contracts
|
—
|
|
|
38,576
|
|
|
—
|
|
|
—
|
|
|
38,576
|
|
|||||
Current income tax receivable
|
46,174
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,174
|
|
|||||
Other current assets
|
6,848
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
6,881
|
|
|||||
Total current assets
|
73,300
|
|
|
77,768
|
|
|
1,109
|
|
|
(1,756
|
)
|
|
150,421
|
|
|||||
Oil and gas properties, full cost method:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proved
|
1,875,152
|
|
|
7,458,262
|
|
|
42,484
|
|
|
—
|
|
|
9,375,898
|
|
|||||
Less: accumulated DD&A
|
(1,874,622
|
)
|
|
(6,686,849
|
)
|
|
(42,484
|
)
|
|
—
|
|
|
(8,603,955
|
)
|
|||||
Net proved oil and gas properties
|
530
|
|
|
771,413
|
|
|
—
|
|
|
—
|
|
|
771,943
|
|
|||||
Unevaluated
|
253,308
|
|
|
186,735
|
|
|
—
|
|
|
—
|
|
|
440,043
|
|
|||||
Other property and equipment, net
|
29,289
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,289
|
|
|||||
Other assets, net
|
16,612
|
|
|
826
|
|
|
1,035
|
|
|
—
|
|
|
18,473
|
|
|||||
Investment in subsidiary
|
745,033
|
|
|
—
|
|
|
1,088
|
|
|
(746,121
|
)
|
|
—
|
|
|||||
Total assets
|
$
|
1,118,072
|
|
|
$
|
1,036,742
|
|
|
$
|
3,232
|
|
|
$
|
(747,877
|
)
|
|
$
|
1,410,169
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable to vendors
|
$
|
16,063
|
|
|
$
|
67,901
|
|
|
$
|
—
|
|
|
$
|
(1,757
|
)
|
|
$
|
82,207
|
|
Undistributed oil and gas proceeds
|
5,216
|
|
|
776
|
|
|
—
|
|
|
—
|
|
|
5,992
|
|
|||||
Accrued interest
|
9,022
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,022
|
|
|||||
Asset retirement obligations
|
—
|
|
|
20,400
|
|
|
891
|
|
|
—
|
|
|
21,291
|
|
|||||
Other current liabilities
|
40,161
|
|
|
551
|
|
|
—
|
|
|
—
|
|
|
40,712
|
|
|||||
Total current liabilities
|
70,462
|
|
|
89,628
|
|
|
891
|
|
|
(1,757
|
)
|
|
159,224
|
|
|||||
Long-term debt
|
1,060,955
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,060,955
|
|
|||||
Asset retirement obligations
|
1,240
|
|
|
203,335
|
|
|
—
|
|
|
—
|
|
|
204,575
|
|
|||||
Other long-term liabilities
|
25,204
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,204
|
|
|||||
Total liabilities
|
1,157,861
|
|
|
292,963
|
|
|
891
|
|
|
(1,757
|
)
|
|
1,449,958
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|||||
Treasury stock
|
(860
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(860
|
)
|
|||||
Additional paid-in capital
|
1,648,687
|
|
|
1,344,577
|
|
|
109,795
|
|
|
(1,454,372
|
)
|
|
1,648,687
|
|
|||||
Accumulated deficit
|
(1,705,623
|
)
|
|
(624,824
|
)
|
|
(95,306
|
)
|
|
720,130
|
|
|
(1,705,623
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
17,952
|
|
|
24,026
|
|
|
(12,148
|
)
|
|
(11,878
|
)
|
|
17,952
|
|
|||||
Total stockholders’ equity
|
(39,789
|
)
|
|
743,779
|
|
|
2,341
|
|
|
(746,120
|
)
|
|
(39,789
|
)
|
|||||
Total liabilities and stockholders’ equity
|
$
|
1,118,072
|
|
|
$
|
1,036,742
|
|
|
$
|
3,232
|
|
|
$
|
(747,877
|
)
|
|
$
|
1,410,169
|
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil production
|
$
|
1,323
|
|
|
$
|
71,388
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
72,711
|
|
Natural gas production
|
3,959
|
|
|
8,594
|
|
|
—
|
|
|
—
|
|
|
12,553
|
|
|||||
Natural gas liquids production
|
2,375
|
|
|
1,343
|
|
|
—
|
|
|
—
|
|
|
3,718
|
|
|||||
Other operational income
|
337
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
337
|
|
|||||
Total operating revenue
|
7,994
|
|
|
81,325
|
|
|
—
|
|
|
—
|
|
|
89,319
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
3,814
|
|
|
15,012
|
|
|
—
|
|
|
—
|
|
|
18,826
|
|
|||||
Transportation, processing and gathering expenses
|
6,021
|
|
|
1,162
|
|
|
—
|
|
|
—
|
|
|
7,183
|
|
|||||
Production taxes
|
383
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
578
|
|
|||||
Depreciation, depletion and amortization
|
10,470
|
|
|
35,761
|
|
|
—
|
|
|
—
|
|
|
46,231
|
|
|||||
Write-down of oil and gas properties
|
6,534
|
|
|
112,114
|
|
|
1
|
|
|
—
|
|
|
118,649
|
|
|||||
Accretion expense
|
58
|
|
|
10,024
|
|
|
—
|
|
|
—
|
|
|
10,082
|
|
|||||
Salaries, general and administrative expenses
|
20,013
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
20,014
|
|
|||||
Incentive compensation expense
|
4,670
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,670
|
|
|||||
Restructuring fees
|
9,436
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,436
|
|
|||||
Other operational expenses
|
27,736
|
|
|
(57
|
)
|
|
1
|
|
|
—
|
|
|
27,680
|
|
|||||
Derivative expense, net
|
—
|
|
|
626
|
|
|
—
|
|
|
—
|
|
|
626
|
|
|||||
Total operating expenses
|
89,135
|
|
|
174,838
|
|
|
2
|
|
|
—
|
|
|
263,975
|
|
|||||
Loss from operations
|
(81,141
|
)
|
|
(93,513
|
)
|
|
(2
|
)
|
|
—
|
|
|
(174,656
|
)
|
|||||
Other (income) expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
17,599
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,599
|
|
|||||
Interest income
|
(302
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(302
|
)
|
|||||
Other income
|
(20
|
)
|
|
(250
|
)
|
|
—
|
|
|
—
|
|
|
(270
|
)
|
|||||
Other expense
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Loss from investment in subsidiaries
|
99,447
|
|
|
—
|
|
|
1
|
|
|
(99,448
|
)
|
|
—
|
|
|||||
Total other (income) expenses
|
116,733
|
|
|
(250
|
)
|
|
1
|
|
|
(99,448
|
)
|
|
17,036
|
|
|||||
Loss before taxes
|
(197,874
|
)
|
|
(93,263
|
)
|
|
(3
|
)
|
|
99,448
|
|
|
(191,692
|
)
|
|||||
Provision (benefit) for income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current
|
(2,113
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,113
|
)
|
|||||
Deferred
|
—
|
|
|
6,182
|
|
|
—
|
|
|
—
|
|
|
6,182
|
|
|||||
Total income taxes
|
(2,113
|
)
|
|
6,182
|
|
|
—
|
|
|
—
|
|
|
4,069
|
|
|||||
Net loss
|
$
|
(195,761
|
)
|
|
$
|
(99,445
|
)
|
|
$
|
(3
|
)
|
|
$
|
99,448
|
|
|
$
|
(195,761
|
)
|
Comprehensive loss
|
$
|
(207,117
|
)
|
|
$
|
(99,445
|
)
|
|
$
|
(3
|
)
|
|
$
|
99,448
|
|
|
$
|
(207,117
|
)
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil production
|
$
|
6,504
|
|
|
$
|
105,081
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
111,585
|
|
Natural gas production
|
15,647
|
|
|
11,260
|
|
|
—
|
|
|
—
|
|
|
26,907
|
|
|||||
Natural gas liquids production
|
8,077
|
|
|
2,956
|
|
|
—
|
|
|
—
|
|
|
11,033
|
|
|||||
Total operating revenue
|
30,228
|
|
|
119,297
|
|
|
—
|
|
|
—
|
|
|
149,525
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
5,111
|
|
|
22,318
|
|
|
—
|
|
|
—
|
|
|
27,429
|
|
|||||
Transportation, processing and gathering expenses
|
17,974
|
|
|
1,966
|
|
|
—
|
|
|
—
|
|
|
19,940
|
|
|||||
Production taxes
|
1,436
|
|
|
391
|
|
|
—
|
|
|
—
|
|
|
1,827
|
|
|||||
Depreciation, depletion and amortization
|
44,052
|
|
|
33,899
|
|
|
—
|
|
|
—
|
|
|
77,951
|
|
|||||
Write-down of oil and gas properties
|
179,125
|
|
|
—
|
|
|
45,169
|
|
|
—
|
|
|
224,294
|
|
|||||
Accretion expense
|
91
|
|
|
6,317
|
|
|
—
|
|
|
—
|
|
|
6,408
|
|
|||||
Salaries, general and administrative expenses
|
16,398
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
16,418
|
|
|||||
Incentive compensation expense
|
1,264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,264
|
|
|||||
Other operational expenses
|
1,454
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,454
|
|
|||||
Derivative expense, net
|
—
|
|
|
701
|
|
|
—
|
|
|
—
|
|
|
701
|
|
|||||
Total operating expenses
|
266,905
|
|
|
65,592
|
|
|
45,189
|
|
|
—
|
|
|
377,686
|
|
|||||
Income (loss) from operations
|
(236,677
|
)
|
|
53,705
|
|
|
(45,189
|
)
|
|
—
|
|
|
(228,161
|
)
|
|||||
Other (income) expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
10,472
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,472
|
|
|||||
Interest income
|
(46
|
)
|
|
(19
|
)
|
|
(1
|
)
|
|
—
|
|
|
(66
|
)
|
|||||
Other income
|
(187
|
)
|
|
(423
|
)
|
|
(3
|
)
|
|
—
|
|
|
(613
|
)
|
|||||
(Income) loss from investment in subsidiaries
|
(16,147
|
)
|
|
—
|
|
|
28,918
|
|
|
(12,771
|
)
|
|
—
|
|
|||||
Total other (income) expenses
|
(5,908
|
)
|
|
(442
|
)
|
|
28,914
|
|
|
(12,771
|
)
|
|
9,793
|
|
|||||
Income (loss) before taxes
|
(230,769
|
)
|
|
54,147
|
|
|
(74,103
|
)
|
|
12,771
|
|
|
(237,954
|
)
|
|||||
Provision (benefit) for income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred
|
(77,863
|
)
|
|
9,082
|
|
|
(16,267
|
)
|
|
—
|
|
|
(85,048
|
)
|
|||||
Total income taxes
|
(77,863
|
)
|
|
9,082
|
|
|
(16,267
|
)
|
|
—
|
|
|
(85,048
|
)
|
|||||
Net income (loss)
|
$
|
(152,906
|
)
|
|
$
|
45,065
|
|
|
$
|
(57,836
|
)
|
|
$
|
12,771
|
|
|
$
|
(152,906
|
)
|
Comprehensive income (loss)
|
$
|
(183,062
|
)
|
|
$
|
45,065
|
|
|
$
|
(57,836
|
)
|
|
$
|
12,771
|
|
|
$
|
(183,062
|
)
|
|
Parent
|
|
Guarantor
Subsidiaries |
|
Non-
Guarantor Subsidiaries |
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil production
|
$
|
1,384
|
|
|
$
|
131,602
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
132,986
|
|
Natural gas production
|
6,426
|
|
|
21,300
|
|
|
—
|
|
|
—
|
|
|
27,726
|
|
|||||
Natural gas liquids production
|
3,509
|
|
|
4,944
|
|
|
—
|
|
|
—
|
|
|
8,453
|
|
|||||
Other operational income
|
693
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
693
|
|
|||||
Total operating revenue
|
12,012
|
|
|
157,846
|
|
|
—
|
|
|
—
|
|
|
169,858
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
6,542
|
|
|
31,818
|
|
|
13
|
|
|
—
|
|
|
38,373
|
|
|||||
Transportation, processing and gathering expenses
|
7,567
|
|
|
457
|
|
|
—
|
|
|
—
|
|
|
8,024
|
|
|||||
Production taxes
|
642
|
|
|
417
|
|
|
—
|
|
|
—
|
|
|
1,059
|
|
|||||
Depreciation, depletion and amortization
|
19,064
|
|
|
88,725
|
|
|
—
|
|
|
—
|
|
|
107,789
|
|
|||||
Write-down of oil and gas properties
|
15,858
|
|
|
231,645
|
|
|
350
|
|
|
—
|
|
|
247,853
|
|
|||||
Accretion expense
|
116
|
|
|
19,949
|
|
|
—
|
|
|
—
|
|
|
20,065
|
|
|||||
Salaries, general and administrative expenses
|
32,967
|
|
|
(199
|
)
|
|
—
|
|
|
—
|
|
|
32,768
|
|
|||||
Incentive compensation expense
|
9,649
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,649
|
|
|||||
Restructuring fees
|
10,389
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,389
|
|
|||||
Other operational expenses
|
33,845
|
|
|
280
|
|
|
6,082
|
|
|
—
|
|
|
40,207
|
|
|||||
Derivative expense, net
|
—
|
|
|
488
|
|
|
—
|
|
|
—
|
|
|
488
|
|
|||||
Total operating expenses
|
136,639
|
|
|
373,580
|
|
|
6,445
|
|
|
—
|
|
|
516,664
|
|
|||||
Loss from operations
|
(124,627
|
)
|
|
(215,734
|
)
|
|
(6,445
|
)
|
|
—
|
|
|
(346,806
|
)
|
|||||
Other (income) expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
32,840
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,840
|
|
|||||
Interest income
|
(416
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(416
|
)
|
|||||
Other income
|
(59
|
)
|
|
(509
|
)
|
|
—
|
|
|
—
|
|
|
(568
|
)
|
|||||
Other expense
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||
Loss from investment in subsidiaries
|
230,729
|
|
|
—
|
|
|
6,444
|
|
|
(237,173
|
)
|
|
—
|
|
|||||
Total other (income) expenses
|
263,105
|
|
|
(509
|
)
|
|
6,444
|
|
|
(237,173
|
)
|
|
31,867
|
|
|||||
Loss before taxes
|
(387,732
|
)
|
|
(215,225
|
)
|
|
(12,889
|
)
|
|
237,173
|
|
|
(378,673
|
)
|
|||||
Provision (benefit) for income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current
|
(3,187
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,187
|
)
|
|||||
Deferred
|
—
|
|
|
9,059
|
|
|
—
|
|
|
—
|
|
|
9,059
|
|
|||||
Total income taxes
|
(3,187
|
)
|
|
9,059
|
|
|
—
|
|
|
—
|
|
|
5,872
|
|
|||||
Net loss
|
$
|
(384,545
|
)
|
|
$
|
(224,284
|
)
|
|
$
|
(12,889
|
)
|
|
$
|
237,173
|
|
|
$
|
(384,545
|
)
|
Comprehensive loss
|
$
|
(395,112
|
)
|
|
$
|
(224,284
|
)
|
|
$
|
(12,889
|
)
|
|
$
|
237,173
|
|
|
$
|
(395,112
|
)
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil production
|
$
|
10,854
|
|
|
$
|
208,238
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
219,092
|
|
Natural gas production
|
32,264
|
|
|
22,980
|
|
|
—
|
|
|
—
|
|
|
55,244
|
|
|||||
Natural gas liquids production
|
17,956
|
|
|
5,443
|
|
|
—
|
|
|
—
|
|
|
23,399
|
|
|||||
Other operational income
|
1,792
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,792
|
|
|||||
Derivative income, net
|
—
|
|
|
2,427
|
|
|
—
|
|
|
—
|
|
|
2,427
|
|
|||||
Total operating revenue
|
62,866
|
|
|
239,088
|
|
|
—
|
|
|
—
|
|
|
301,954
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
10,087
|
|
|
44,919
|
|
|
—
|
|
|
—
|
|
|
55,006
|
|
|||||
Transportation, processing and gathering expenses
|
34,082
|
|
|
3,561
|
|
|
—
|
|
|
—
|
|
|
37,643
|
|
|||||
Production taxes
|
3,634
|
|
|
708
|
|
|
—
|
|
|
—
|
|
|
4,342
|
|
|||||
Depreciation, depletion and amortization
|
86,164
|
|
|
78,209
|
|
|
—
|
|
|
—
|
|
|
164,373
|
|
|||||
Write-down of oil and gas properties
|
670,537
|
|
|
—
|
|
|
45,169
|
|
|
—
|
|
|
715,706
|
|
|||||
Accretion expense
|
182
|
|
|
12,635
|
|
|
—
|
|
|
—
|
|
|
12,817
|
|
|||||
Salaries, general and administrative expenses
|
33,399
|
|
|
1
|
|
|
25
|
|
|
—
|
|
|
33,425
|
|
|||||
Incentive compensation expense
|
2,827
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,827
|
|
|||||
Other operational expenses
|
1,170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,170
|
|
|||||
Total operating expenses
|
842,082
|
|
|
140,033
|
|
|
45,194
|
|
|
—
|
|
|
1,027,309
|
|
|||||
Income (loss) from operations
|
(779,216
|
)
|
|
99,055
|
|
|
(45,194
|
)
|
|
—
|
|
|
(725,355
|
)
|
|||||
Other (income) expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
20,816
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
20,837
|
|
|||||
Interest income
|
(147
|
)
|
|
(35
|
)
|
|
(6
|
)
|
|
—
|
|
|
(188
|
)
|
|||||
Other income
|
(320
|
)
|
|
(433
|
)
|
|
(3
|
)
|
|
—
|
|
|
(756
|
)
|
|||||
(Income) loss from investment in subsidiaries
|
(45,174
|
)
|
|
—
|
|
|
28,918
|
|
|
16,256
|
|
|
—
|
|
|||||
Total other (income) expenses
|
(24,825
|
)
|
|
(447
|
)
|
|
28,909
|
|
|
16,256
|
|
|
19,893
|
|
|||||
Income (loss) before taxes
|
(754,391
|
)
|
|
99,502
|
|
|
(74,103
|
)
|
|
(16,256
|
)
|
|
(745,248
|
)
|
|||||
Provision (benefit) for income taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred
|
(274,097
|
)
|
|
25,410
|
|
|
(16,267
|
)
|
|
—
|
|
|
(264,954
|
)
|
|||||
Total income taxes
|
(274,097
|
)
|
|
25,410
|
|
|
(16,267
|
)
|
|
—
|
|
|
(264,954
|
)
|
|||||
Net income (loss)
|
$
|
(480,294
|
)
|
|
$
|
74,092
|
|
|
$
|
(57,836
|
)
|
|
$
|
(16,256
|
)
|
|
$
|
(480,294
|
)
|
Comprehensive income (loss)
|
$
|
(522,953
|
)
|
|
$
|
74,092
|
|
|
$
|
(57,836
|
)
|
|
$
|
(16,256
|
)
|
|
$
|
(522,953
|
)
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss
|
$
|
(384,545
|
)
|
|
$
|
(224,284
|
)
|
|
$
|
(12,889
|
)
|
|
$
|
237,173
|
|
|
$
|
(384,545
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
19,064
|
|
|
88,725
|
|
|
—
|
|
|
—
|
|
|
107,789
|
|
|||||
Write-down of oil and gas properties
|
15,858
|
|
|
231,645
|
|
|
350
|
|
|
—
|
|
|
247,853
|
|
|||||
Accretion expense
|
116
|
|
|
19,949
|
|
|
—
|
|
|
—
|
|
|
20,065
|
|
|||||
Deferred income tax provision
|
—
|
|
|
9,059
|
|
|
—
|
|
|
—
|
|
|
9,059
|
|
|||||
Settlement of asset retirement obligations
|
—
|
|
|
(9,807
|
)
|
|
(899
|
)
|
|
—
|
|
|
(10,706
|
)
|
|||||
Non-cash stock compensation expense
|
4,682
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,682
|
|
|||||
Non-cash derivative expense
|
—
|
|
|
1,025
|
|
|
—
|
|
|
—
|
|
|
1,025
|
|
|||||
Non-cash interest expense
|
9,403
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,403
|
|
|||||
Other non-cash expense
|
—
|
|
|
—
|
|
|
6,081
|
|
|
—
|
|
|
6,081
|
|
|||||
Change in current income taxes
|
(3,187
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,187
|
)
|
|||||
Non-cash loss from investment in subsidiaries
|
230,729
|
|
|
—
|
|
|
6,444
|
|
|
(237,173
|
)
|
|
—
|
|
|||||
Change in intercompany receivables/payables
|
(1,658
|
)
|
|
1,658
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
(Increase) decrease in accounts receivable
|
(8,471
|
)
|
|
19,109
|
|
|
(883
|
)
|
|
—
|
|
|
9,755
|
|
|||||
(Increase) decrease in other current assets
|
(5,316
|
)
|
|
—
|
|
|
33
|
|
|
—
|
|
|
(5,283
|
)
|
|||||
Increase (decrease) in accounts payable
|
2,226
|
|
|
(2,547
|
)
|
|
—
|
|
|
—
|
|
|
(321
|
)
|
|||||
Decrease in other current liabilities
|
(5,565
|
)
|
|
(355
|
)
|
|
—
|
|
|
—
|
|
|
(5,920
|
)
|
|||||
Other
|
(7,372
|
)
|
|
(508
|
)
|
|
—
|
|
|
—
|
|
|
(7,880
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(134,036
|
)
|
|
133,669
|
|
|
(1,763
|
)
|
|
—
|
|
|
(2,130
|
)
|
|||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment in oil and gas properties
|
(45,292
|
)
|
|
(133,670
|
)
|
|
(349
|
)
|
|
—
|
|
|
(179,311
|
)
|
|||||
Investment in fixed and other assets
|
(898
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(898
|
)
|
|||||
Change in restricted funds
|
—
|
|
|
—
|
|
|
1,045
|
|
|
—
|
|
|
1,045
|
|
|||||
Investment in subsidiaries
|
—
|
|
|
—
|
|
|
717
|
|
|
(717
|
)
|
|
—
|
|
|||||
Net cash (used in) provided by investing activities
|
(46,190
|
)
|
|
(133,670
|
)
|
|
1,413
|
|
|
(717
|
)
|
|
(179,164
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from bank borrowings
|
477,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
477,000
|
|
|||||
Repayments of bank borrowings
|
(135,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(135,500
|
)
|
|||||
Repayments of building loan
|
(189
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(189
|
)
|
|||||
Deferred financing costs
|
(900
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(900
|
)
|
|||||
Equity proceeds from parent
|
—
|
|
|
—
|
|
|
(717
|
)
|
|
717
|
|
|
—
|
|
|||||
Net payments for share-based compensation
|
(673
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(673
|
)
|
|||||
Net cash provided by (used in) financing activities
|
339,738
|
|
|
—
|
|
|
(717
|
)
|
|
717
|
|
|
339,738
|
|
|||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||||
Net change in cash and cash equivalents
|
159,512
|
|
|
(1
|
)
|
|
(1,076
|
)
|
|
—
|
|
|
158,435
|
|
|||||
Cash and cash equivalents, beginning of period
|
9,681
|
|
|
2
|
|
|
1,076
|
|
|
—
|
|
|
10,759
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
169,193
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
169,194
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
(480,294
|
)
|
|
$
|
74,092
|
|
|
$
|
(57,836
|
)
|
|
$
|
(16,256
|
)
|
|
$
|
(480,294
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, depletion and amortization
|
86,164
|
|
|
78,209
|
|
|
—
|
|
|
—
|
|
|
164,373
|
|
|||||
Write-down of oil and gas properties
|
670,537
|
|
|
—
|
|
|
45,169
|
|
|
—
|
|
|
715,706
|
|
|||||
Accretion expense
|
182
|
|
|
12,635
|
|
|
—
|
|
|
—
|
|
|
12,817
|
|
|||||
Deferred income tax (benefit) provision
|
(274,097
|
)
|
|
25,410
|
|
|
(16,267
|
)
|
|
—
|
|
|
(264,954
|
)
|
|||||
Settlement of asset retirement obligations
|
(14
|
)
|
|
(35,909
|
)
|
|
—
|
|
|
—
|
|
|
(35,923
|
)
|
|||||
Non-cash stock compensation expense
|
6,028
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,028
|
|
|||||
Non-cash derivative expense
|
—
|
|
|
7,931
|
|
|
—
|
|
|
—
|
|
|
7,931
|
|
|||||
Non-cash interest expense
|
8,737
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,737
|
|
|||||
Change in current income taxes
|
7,206
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,206
|
|
|||||
Non-cash (income) expense from investment in subsidiaries
|
(45,174
|
)
|
|
—
|
|
|
28,918
|
|
|
16,256
|
|
|
—
|
|
|||||
Change in intercompany receivables/payables
|
15,070
|
|
|
(24,802
|
)
|
|
9,732
|
|
|
—
|
|
|
—
|
|
|||||
Decrease in accounts receivable
|
16,968
|
|
|
6,079
|
|
|
—
|
|
|
—
|
|
|
23,047
|
|
|||||
Increase in other current assets
|
(1,895
|
)
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
(1,959
|
)
|
|||||
(Increase) decrease in inventory
|
(2,415
|
)
|
|
2,415
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Decrease in accounts payable
|
(500
|
)
|
|
(7,326
|
)
|
|
—
|
|
|
—
|
|
|
(7,826
|
)
|
|||||
Decrease in other current liabilities
|
(8,409
|
)
|
|
(311
|
)
|
|
—
|
|
|
—
|
|
|
(8,720
|
)
|
|||||
Other
|
(71
|
)
|
|
(433
|
)
|
|
—
|
|
|
—
|
|
|
(504
|
)
|
|||||
Net cash (used in) provided by operating activities
|
(1,977
|
)
|
|
137,990
|
|
|
9,652
|
|
|
—
|
|
|
145,665
|
|
|||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment in oil and gas properties
|
(128,333
|
)
|
|
(124,506
|
)
|
|
(11,516
|
)
|
|
—
|
|
|
(264,355
|
)
|
|||||
Proceeds from sale of oil and gas properties, net of expenses
|
—
|
|
|
10,100
|
|
|
—
|
|
|
—
|
|
|
10,100
|
|
|||||
Investment in fixed and other assets
|
(727
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(727
|
)
|
|||||
Change in restricted funds
|
177,647
|
|
|
—
|
|
|
1,828
|
|
|
—
|
|
|
179,475
|
|
|||||
Investment in subsidiaries
|
—
|
|
|
—
|
|
|
(9,684
|
)
|
|
9,684
|
|
|
—
|
|
|||||
Net cash provided by (used in) investing activities
|
48,587
|
|
|
(114,406
|
)
|
|
(19,372
|
)
|
|
9,684
|
|
|
(75,507
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from bank borrowings
|
5,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,000
|
|
|||||
Repayments of bank borrowings
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,000
|
)
|
|||||
Equity proceeds from parent
|
—
|
|
|
—
|
|
|
9,684
|
|
|
(9,684
|
)
|
|
—
|
|
|||||
Net payments for share-based compensation
|
(3,069
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,069
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(3,069
|
)
|
|
—
|
|
|
9,684
|
|
|
(9,684
|
)
|
|
(3,069
|
)
|
|||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
78
|
|
|||||
Net change in cash and cash equivalents
|
43,541
|
|
|
23,584
|
|
|
42
|
|
|
—
|
|
|
67,167
|
|
|||||
Cash and cash equivalents, beginning of period
|
72,886
|
|
|
1,450
|
|
|
152
|
|
|
—
|
|
|
74,488
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
116,427
|
|
|
$
|
25,034
|
|
|
$
|
194
|
|
|
$
|
—
|
|
|
$
|
141,655
|
|
•
|
expected results from risk-weighted drilling success;
|
•
|
estimates of our future oil and natural gas production, including estimates of any increases in oil and natural gas production;
|
•
|
planned capital expenditures and the availability of capital resources to fund capital expenditures;
|
•
|
our outlook on oil and natural gas prices;
|
•
|
estimates of our oil and natural gas reserves;
|
•
|
any estimates of future earnings growth;
|
•
|
the impact of political and regulatory developments;
|
•
|
our outlook on the resolution of pending litigation and government inquiry;
|
•
|
estimates of the impact of new accounting pronouncements on earnings in future periods;
|
•
|
our future financial condition or results of operations and our future revenues and expenses;
|
•
|
the outcome of restructuring efforts and asset sales;
|
•
|
the amount, nature and timing of any potential acquisition or divestiture transactions;
|
•
|
any expected results or benefits associated with our acquisitions;
|
•
|
our access to capital and our anticipated liquidity;
|
•
|
estimates of future income taxes; and
|
•
|
our business strategy and other plans and objectives for future operations.
|
•
|
commodity price volatility, including further or sustained declines in the prices we receive for our oil and natural gas production;
|
•
|
domestic and worldwide economic conditions, which may adversely affect the demand for and supply of oil and natural gas;
|
•
|
the availability of capital on economic terms to fund our operations, capital expenditures, acquisitions and other obligations;
|
•
|
our future level of indebtedness, liquidity, compliance with debt covenants and our ability to continue as a going concern;
|
•
|
our future financial condition, results of operations, revenues, cash flows and expenses;
|
•
|
the potential need to sell certain assets, restructure our debt, raise additional capital or seek bankruptcy protection;
|
•
|
our ability to continue to borrow under our credit facility;
|
•
|
our ability to post additional collateral for current bonds or comply with new supplemental bonding requirements imposed by BOEM;
|
•
|
declines in the value of our oil and gas properties resulting in a decrease in our borrowing base under our bank credit facility and impairments;
|
•
|
our ability to develop, explore for, acquire and replace oil and natural gas reserves and sustain production;
|
•
|
the impact of a financial crisis on our business operations, financial condition and ability to raise capital;
|
•
|
the ability of financial counterparties to perform or fulfill their obligations under existing agreements;
|
•
|
third-party interruption of sales to market;
|
•
|
inflation;
|
•
|
lack of availability and cost of goods and services;
|
•
|
market conditions relating to potential acquisition and divestiture transactions;
|
•
|
regulatory and environmental risks associated with drilling and production activities, including, for example, compliance with the Bureau of Safety and Environmental Enforcement's recently finalized well control rule;
|
•
|
our ability to establish operations or production on our acreage prior to the expiration of related leaseholds;
|
•
|
availability of drilling and production equipment, facilities, field service providers, gathering, processing and transportation;
|
•
|
competition in the oil and gas industry;
|
•
|
our inability to retain and attract key personnel;
|
•
|
drilling and other operating risks, including the consequences of a catastrophic event;
|
•
|
unsuccessful exploration and development drilling activities;
|
•
|
hurricanes and other weather conditions;
|
•
|
availability, cost and adequacy of insurance coverage;
|
•
|
adverse effects of changes in applicable tax, environmental, derivatives, permitting, bonding and other regulatory requirements and legislation, as well as agency interpretation and enforcement and judicial decisions regarding the foregoing, including changes affecting our offshore and Appalachian operations;
|
•
|
uncertainty inherent in estimating proved oil and natural gas reserves and in projecting future rates of production and timing of development expenditures; and
|
•
|
other risks described in this Form 10-Q.
|
•
|
remaining proved oil and natural gas reserve volumes and the timing of their production;
|
•
|
estimated costs to develop and produce proved oil and natural gas reserves;
|
•
|
accruals of exploration costs, development costs, operating costs and production revenue;
|
•
|
timing and future costs to abandon our oil and gas properties;
|
•
|
effectiveness and estimated fair value of derivative positions;
|
•
|
classification of unevaluated property costs;
|
•
|
capitalized general and administrative costs and interest;
|
•
|
estimates of fair value in business combinations;
|
•
|
current and deferred income taxes; and
|
•
|
contingencies.
|
|
Three Months Ended
June 30, |
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
Variance
|
|
% Change
|
|||||||
Production:
|
|
|
|
|
|
|
|
|||||||
Oil (MBbls)
|
1,548
|
|
|
1,534
|
|
|
14
|
|
|
1
|
%
|
|||
Natural gas (MMcf)
|
5,100
|
|
|
12,581
|
|
|
(7,481
|
)
|
|
(59
|
)%
|
|||
NGLs (MBbls)
|
244
|
|
|
794
|
|
|
(550
|
)
|
|
(69
|
)%
|
|||
Oil, natural gas and NGLs (MBoe)
|
2,642
|
|
|
4,425
|
|
|
(1,783
|
)
|
|
(40
|
)%
|
|||
Oil, natural gas and NGLs (MMcfe)
|
15,852
|
|
|
26,549
|
|
|
(10,697
|
)
|
|
(40
|
)%
|
|||
Revenue data (in thousands):
(1)
|
|
|
|
|
|
|
|
|||||||
Oil revenue
|
$
|
72,711
|
|
|
$
|
111,585
|
|
|
$
|
(38,874
|
)
|
|
(35
|
)%
|
Natural gas revenue
|
12,553
|
|
|
26,907
|
|
|
(14,354
|
)
|
|
(53
|
)%
|
|||
NGLs revenue
|
3,718
|
|
|
11,033
|
|
|
(7,315
|
)
|
|
(66
|
)%
|
|||
Total oil, natural gas and NGL revenue
|
$
|
88,982
|
|
|
$
|
149,525
|
|
|
$
|
(60,543
|
)
|
|
(40
|
)%
|
Average prices:
|
|
|
|
|
|
|
|
|||||||
Prior to the cash settlement of effective hedging contracts
|
|
|
|
|
|
|
|
|||||||
Oil (per Bbl)
|
$
|
43.66
|
|
|
$
|
55.55
|
|
|
$
|
(11.89
|
)
|
|
(21
|
)%
|
Natural gas (per Mcf)
|
1.72
|
|
|
1.82
|
|
|
(0.10
|
)
|
|
(5
|
)%
|
|||
NGLs (per Bbl)
|
15.24
|
|
|
13.90
|
|
|
1.34
|
|
|
10
|
%
|
|||
Oil, natural gas and NGLs (per Boe)
|
30.31
|
|
|
26.93
|
|
|
3.38
|
|
|
13
|
%
|
|||
Oil, natural gas and NGLs (per Mcfe)
|
5.05
|
|
|
4.49
|
|
|
0.56
|
|
|
12
|
%
|
|||
Including the cash settlement of effective hedging contracts
|
|
|
|
|
|
|
|
|||||||
Oil (per Bbl)
|
$
|
46.97
|
|
|
$
|
72.74
|
|
|
$
|
(25.77
|
)
|
|
(35
|
)%
|
Natural gas (per Mcf)
|
2.46
|
|
|
2.14
|
|
|
0.32
|
|
|
15
|
%
|
|||
NGLs (per Bbl)
|
15.24
|
|
|
13.90
|
|
|
1.34
|
|
|
10
|
%
|
|||
Oil, natural gas and NGLs (per Boe)
|
33.68
|
|
|
33.79
|
|
|
(0.11
|
)
|
|
—
|
%
|
|||
Oil, natural gas and NGLs (per Mcfe)
|
5.61
|
|
|
5.63
|
|
|
(0.02
|
)
|
|
—
|
%
|
|||
Expenses (per Mcfe):
|
|
|
|
|
|
|
|
|||||||
Lease operating expenses
|
$
|
1.19
|
|
|
$
|
1.03
|
|
|
$
|
0.16
|
|
|
16
|
%
|
Transportation, processing and gathering expenses
|
0.45
|
|
|
0.75
|
|
|
(0.30
|
)
|
|
(40
|
)%
|
|||
SG&A expenses (2)
|
1.26
|
|
|
0.62
|
|
|
0.64
|
|
|
103
|
%
|
|||
DD&A expense on oil and gas properties
|
2.85
|
|
|
2.89
|
|
|
(0.04
|
)
|
|
(1
|
)%
|
(1)
|
Includes the cash settlement of effective hedging contracts.
|
(2)
|
Excludes incentive compensation expense.
|
|
Six Months Ended
June 30, |
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
Variance
|
|
% Change
|
|||||||
Production:
|
|
|
|
|
|
|
|
|||||||
Oil (MBbls)
|
3,183
|
|
|
3,156
|
|
|
27
|
|
|
1
|
%
|
|||
Natural gas (MMcf)
|
11,946
|
|
|
23,738
|
|
|
(11,792
|
)
|
|
(50
|
)%
|
|||
NGLs (MBbls)
|
608
|
|
|
1,477
|
|
|
(869
|
)
|
|
(59
|
)%
|
|||
Oil, natural gas and NGLs (MBoe)
|
5,782
|
|
|
8,589
|
|
|
(2,807
|
)
|
|
(33
|
)%
|
|||
Oil, natural gas and NGLs (MMcfe)
|
34,692
|
|
|
51,536
|
|
|
(16,844
|
)
|
|
(33
|
)%
|
|||
Revenue data (in thousands):
(1)
|
|
|
|
|
|
|
|
|||||||
Oil revenue
|
$
|
132,986
|
|
|
$
|
219,092
|
|
|
$
|
(86,106
|
)
|
|
(39
|
)%
|
Natural gas revenue
|
27,726
|
|
|
55,244
|
|
|
(27,518
|
)
|
|
(50
|
)%
|
|||
NGLs revenue
|
8,453
|
|
|
23,399
|
|
|
(14,946
|
)
|
|
(64
|
)%
|
|||
Total oil, natural gas and NGL revenue
|
$
|
169,165
|
|
|
$
|
297,735
|
|
|
$
|
(128,570
|
)
|
|
(43
|
)%
|
Average prices:
|
|
|
|
|
|
|
|
|||||||
Prior to the cash settlement of effective hedging contracts
|
|
|
|
|
|
|
|
|||||||
Oil (per Bbl)
|
$
|
37.27
|
|
|
$
|
50.28
|
|
|
$
|
(13.01
|
)
|
|
(26
|
)%
|
Natural gas (per Mcf)
|
1.71
|
|
|
2.04
|
|
|
(0.33
|
)
|
|
(16
|
)%
|
|||
NGLs (per Bbl)
|
13.90
|
|
|
15.84
|
|
|
(1.94
|
)
|
|
(12
|
)%
|
|||
Oil, natural gas and NGLs (per Boe)
|
25.51
|
|
|
26.85
|
|
|
(1.34
|
)
|
|
(5
|
)%
|
|||
Oil, natural gas and NGLs (per Mcfe)
|
4.25
|
|
|
4.47
|
|
|
(0.22
|
)
|
|
(5
|
)%
|
|||
Including the cash settlement of effective hedging contracts
|
|
|
|
|
|
|
|
|||||||
Oil (per Bbl)
|
$
|
41.78
|
|
|
$
|
69.42
|
|
|
$
|
(27.64
|
)
|
|
(40
|
)%
|
Natural gas (per Mcf)
|
2.32
|
|
|
2.33
|
|
|
(0.01
|
)
|
|
—
|
%
|
|||
NGLs (per Bbl)
|
13.90
|
|
|
15.84
|
|
|
(1.94
|
)
|
|
(12
|
)%
|
|||
Oil, natural gas and NGLs (per Boe)
|
29.26
|
|
|
34.66
|
|
|
(5.40
|
)
|
|
(16
|
)%
|
|||
Oil, natural gas and NGLs (per Mcfe)
|
4.88
|
|
|
5.78
|
|
|
(0.90
|
)
|
|
(16
|
)%
|
|||
Expenses (per Mcfe):
|
|
|
|
|
|
|
|
|||||||
Lease operating expenses
|
$
|
1.11
|
|
|
$
|
1.07
|
|
|
$
|
0.04
|
|
|
4
|
%
|
Transportation, processing and gathering expenses
|
0.23
|
|
|
0.73
|
|
|
(0.50
|
)
|
|
(68
|
)%
|
|||
SG&A expenses (2)
|
0.94
|
|
|
0.65
|
|
|
0.29
|
|
|
45
|
%
|
|||
DD&A expense on oil and gas properties
|
3.04
|
|
|
3.14
|
|
|
(0.10
|
)
|
|
(3
|
)%
|
(1)
|
Includes the cash settlement of effective hedging contracts.
|
(2)
|
Excludes incentive compensation expense.
|
Period
|
Total Number
of Shares
Purchased (1)
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs (2)
|
|
Approximate Dollar Value of Shares that MayYet be
Purchased Under the
Plans or Programs
|
||||||
April 1 - April 30, 2016
|
327
|
|
|
$
|
10.64
|
|
|
—
|
|
|
|
||
May 1 - May 31, 2016
|
3,788
|
|
|
4.24
|
|
|
—
|
|
|
|
|||
June 1 - June 30, 2016
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||
|
4,115
|
|
|
$
|
5.59
|
|
|
—
|
|
|
$
|
92,928,632
|
|
(1)
|
Amount includes shares of our common stock withheld from employees and nonemployee directors upon the vesting of restricted stock in order to satisfy the required tax withholding obligations.
|
(2)
|
There were no repurchases of our common stock under our share repurchase program during the three months ended
June 30, 2016
.
|
*3.1
|
|
|
Certificate of Incorporation of the Registrant, as amended.
|
3.2
|
|
|
Amended & Restated Bylaws of Stone Energy Corporation, dated December 19, 2013 (incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2013 filed February 27, 2014 (File No. 001-12074)).
|
10.1
|
|
|
Amendment No. 3 to the Fourth Amended and Restated Credit Agreement among Stone Energy Corporation, certain of its subsidiaries, as guarantors, and the financial institutions party thereto, dated June 14, 2016 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed June 14, 2016 (File No. 001-12074)).
|
*10.2
|
|
|
Second Amendment to the Stone Energy Corporation 2009 Amended and Restated Stock Incentive Plan (As Amended and Restated December 17, 2015).
|
*31.1
|
|
|
Certification of Principal Executive Officer of Stone Energy Corporation as required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
|
*31.2
|
|
|
Certification of Principal Financial Officer of Stone Energy Corporation as required by Rule 13a-14(a) of the Securities Exchange Act of 1934.
|
*#32.1
|
|
|
Certification of Chief Executive Officer and Chief Financial Officer of Stone Energy Corporation pursuant to 18 U.S.C. § 1350.
|
*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 Label Linkbase Document
|
*101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed or furnished herewith.
|
#
|
Not considered to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.
|
|
|
STONE ENERGY CORPORATION
|
|
|
|
|
|
Date:
|
August 3, 2016
|
By:
|
/s/ Kenneth H. Beer
|
|
|
|
Kenneth H. Beer
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(On behalf of the Registrant and as
|
|
|
|
Principal Financial Officer)
|
*
|
Filed or furnished herewith.
|
#
|
Not considered to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.
|
1 Year Stone Energy Chart |
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