falsedesktopCHAP2020-06-30000134698020000082{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☐\tAccelerated filer\t☒\nNon-accelerated filer\t\t\t\t\t\t\t☐\t\t\nSmaller reporting company\t\t\t\t\t\t\t☐\t\t\nEmerging growth company\t\t\t\t\t\t\t☐\t\t\n", "q10k_tbl_1": "\tPage\nPart I. FINANCIAL INFORMATION\t\nItem 1. Financial Statements (Unaudited)\t8\nConsolidated Balance Sheets\t8\nConsolidated Statements of Operations\t9\nConsolidated Statement of Stockholders' Equity\t10\nConsolidated Statements of Cash Flows\t11\nCondensed Notes to Consolidated Financial Statements\t12\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t36\nOverview\t36\nResults of Operations\t41\nLiquidity and Capital Resources\t37\nNon-GAAP Financial Measure and Reconciliation\t50\nCritical Accounting Policies\t51\nRecent Accounting Pronouncements\t51\nItem 3. Quantitative and Qualitative Disclosures about Market Risk\t51\nItem 4. Controls and Procedures\t53\nPart II. OTHER INFORMATION\t\nItem 1. Legal Proceedings\t53\nItem 1A. Risk Factors\t53\nItem 2. Unregistered Sales of Equity Securities and Use of Proceeds\t59\nItem 5. Other Information\t59\nItem 6. Exhibits\t60\nSignatures\t63\n", "q10k_tbl_2": "Bankruptcy Code\tTitle 11 of the United States Code.\nBankruptcy Court\tUnited States Bankruptcy Court for the District of Delaware.\nBbl\tOne stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil condensate or natural gas liquids.\nBBtu\tOne billion British thermal units.\nBoe\tOne barrel of crude oil equivalent determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil.\nBoe/d\tBarrels of oil equivalent per day.\nBtu\tBritish thermal unit which is the heat required to raise the temperature of one-pound of water from 58.5 to 59.5 degrees Fahrenheit.\nChapter 11 Cases\tVoluntary petitions seeking relief under the Bankruptcy Code in the Bankruptcy Court for relief under Chapter 11 of the Bankruptcy Code filed on August 16 2020 2020 by Chaparral Energy Inc. and its subsidiaries including Chaparral Resources L.L.C. Chaparral Real Estate L.L.C. Chaparral CO2 L.L.C. CEI Pipeline L.L.C. Chaparral Energy L.L.C. CEI Acquisition L.L.C. Green Country Supply Inc. Chaparral Biofuels L.L.C. Chaparral Exploration L.L.C. Roadrunner Drilling L.L.C. Trabajo Energy L.L.C. Charles Energy L.L.C. and Chestnut Energy L.L.C.\nCompletion\tThe process of treating a drilled well followed by the installation of permanent equipment for the production of oil or natural gas or in the case of a dry well the reporting to the appropriate authority that the well has been abandoned.\nCO2\tCarbon dioxide.\nCOVID-19\tAn infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). It was first identified in late 2019 and has since spread globally resulting in a sustained pandemic.\nCredit Agreement\tTenth Restated Credit Agreement as amended by and among Chaparral Energy Inc. Royal Bank of Canada as Administrative Agent and the Lenders thereto.\nDry well or dry hole\tAn exploratory development or extension well that proves to be incapable of producing either oil or natural gas in sufficient quantities to justify completion as an oil or natural gas well.\nEnhanced oil recovery (EOR)\tThe use of any improved recovery method including injection of CO2 or polymer to remove additional oil after Secondary Recovery.\nField\tAn area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area although it may refer to both the surface and the underground productive formations.\nLimited Forbearance Agreement\tForbearance Agreement dated as of July 15 2020 by and among Chaparral Energy Inc. the subsidiary guarantors party thereto certain Lenders identified therein and Royal Bank of Canada as Administrative Agent and Issuing Bank.\nMBbls\tOne thousand barrels of crude oil condensate or natural gas liquids.\nMBoe\tOne thousand barrels of crude oil equivalent.\nMcf\tOne thousand cubic feet of natural gas.\nMMBtu\tOne million British thermal units.\nMMcf\tOne million cubic feet of natural gas.\n", "q10k_tbl_3": "Natural gas liquids (NGLs)\tThose hydrocarbons in natural gas that are separated from the gas as liquids through the process of absorption condensation or other methods in gas processing or cycling plants. Natural gas liquids primarily include propane butane isobutane pentane hexane and natural gasoline.\nNYSE\tThe New York Stock Exchange.\nPlan of Reorganization\tPlan of Reorganization contemplated by the RSA.\nPlay\tA term describing an area of land following the identification by geologists and geophysicists of reservoirs with potential oil and natural gas reserves.\nPrior Chapter 11 Cases\tVoluntary petitions seeking relief under the Bankruptcy Code in the Bankruptcy Court for relief under Chapter 11 of the Bankruptcy Code filed on May 9 2016 by Chaparral Energy Inc. and its subsidiaries including Chaparral Energy L.L.C. Chaparral Resources L.L.C. Chaparral Real Estate L.L.C. Chaparral CO2 L.L.C. CEI Pipeline L.L.C. CEI Acquisition L.L.C. Green Country Supply Inc. Chaparral Biofuels L.L.C. Chaparral Exploration L.L.C. Roadrunner Drilling L.L.C.\nPrior Effective Date\tMarch 21 2017 the date of the Company's emergence from the Prior Chapter 11 Cases.\nPrior Reorganization Plan\tFirst Amended Joint Plan of Reorganization under the Prior Chapter 11 Cases dated as of January 25 2017.\nProved developed reserves\tReserves that can be expected to be recovered (i) through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well and (ii) through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.\nProved reserves\tThe quantities of oil and natural gas which by analysis of geoscience and engineering data can be estimated with reasonable certainty to be economically producible-from a given date forward from known reservoirs and under existing economic conditions operating methods and government regulations-prior to the time at which contracts providing the right to operate expire unless evidence indicates that renewal is reasonably certain regardless of whether deterministic or probabilistic methods are used for estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. For additional information see the SEC's definition in Rule 1-10(a)(22) of Regulation S-X a link for which is available at the SEC's website.\nProved undeveloped reserves\tReserves that are expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major expenditure is required for recompletion.\nPV-10 value\tWhen used with respect to oil and natural gas reserves PV-10 value means the estimated future gross revenue to be generated from the production of proved reserves net of estimated production and future development costs excluding escalations of prices and costs based upon future conditions before income taxes and without giving effect to non-property-related expenses discounted to a present value using an annual discount rate of 10%.\nRSA\tRestructuring Support Agreement dated as of August 15 2020 by and among Chaparral Energy Inc. certain of its subsidiaries and the Consenting Creditors (as defined therein).\nSEC\tThe Securities and Exchange Commission.\nSenior Notes\tOur 8.75% senior notes due 2023.\nUnit\tThe joining of all or substantially all interests in a reservoir or field rather than a single tract to provide for development and operation without regard to separate property interests. Also the area covered by a unitization agreement.\n", "q10k_tbl_4": "(dollars in thousands except share data)\tJune 30 2020\tDecember 31 2019\nAssets\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t56137\t22595\nAccounts receivable:\t\t\nAccounts receivable gross\t43197\t50744\nAllowance for credit losses\t(4215)\t(1097)\nAccounts receivable net\t38982\t49647\nInventories net\t2456\t3730\nPrepaid expenses\t4034\t3471\nDerivative instruments\t15197\t947\nTotal current assets\t116806\t80390\nProperty and equipment net\t7948\t9217\nRight of use assets from operating leases\t1744\t2444\nOil and natural gas properties using the full cost method:\t\t\nProved\t1569627\t1276036\nUnevaluated (excluded from the amortization base)\t142295\t371229\nAccumulated depreciation depletion amortization and impairment\t(1246703)\t(754379)\nTotal oil and natural gas properties\t465219\t892886\nHeld for sale assets\t111\t2860\nDerivative instruments\t1990\t0\nOther assets\t1349\t635\nTotal assets\t595167\t988432\nLiabilities and stockholders' equity\t\t\nCurrent liabilities:\t\t\nAccounts payable and accrued liabilities\t39272\t64558\nAccrued payroll and benefits payable\t5970\t10963\nAccrued interest payable\t12309\t12227\nRevenue distribution payable\t9322\t22370\nLong-term debt and financing leases classified as current\t521292\t594\nDerivative instruments\t0\t11957\nTotal current liabilities\t588165\t122669\nLong-term debt and financing leases less current maturities\t996\t421392\nDerivative instruments\t0\t5075\nNoncurrent operating lease obligations\t234\t917\nDeferred compensation\t419\t165\nAsset retirement obligations\t21412\t21073\nCommitments and contingencies (Note 10)\t\t\nStockholders' equity:\t\t\nPreferred stock 5000000 shares authorized none issued and outstanding\t0\t0\nCommon stock $0.01 par value 192130071 shares authorized; 48297606 issued and 47790146 outstanding at June 30 2020 and 48413185 issued and 47942230 outstanding at December 31 2019\t483\t485\nAdditional paid in capital\t977957\t977174\nTreasury stock at cost 507460 and 470955 shares as of June 30 2020 and December 31 2019\t(6128)\t(6110)\nAccumulated deficit\t(988371)\t(554408)\nTotal stockholders' equity\t(16059)\t417141\nTotal liabilities and stockholders' equity\t595167\t988432\n", "q10k_tbl_5": "\tThree months ended\t\t\tSix months ended\n(in thousands except share and per share data)\tJune 30 2020\tJune 30 2019\tJune 30 2020\tJune 30 2019\nRevenues:\t\t\t\t\nNet commodity sales\t15880\t66707\t64731\t115326\nSublease revenue\t0\t1198\t0\t2396\nTotal revenues\t15880\t67905\t64731\t117722\nCosts and expenses:\t\t\t\t\nLease operating\t5971\t13371\t16059\t25665\nProduction taxes\t823\t3802\t3573\t6682\nDepreciation depletion and amortization\t14821\t30282\t37833\t53997\nImpairment of oil and gas assets\t384639\t63593\t456010\t113315\nImpairment of other assets\t310\t6407\t463\t6407\nGeneral and administrative\t9488\t7315\t17556\t15628\nLiability management\t8047\t0\t8047\t0\nLitigation loss\t4359\t0\t4359\t0\nSubleases\t0\t403\t0\t806\nTotal costs and expenses\t428458\t125173\t543900\t222500\nOperating loss\t(412578)\t(57268)\t(479169)\t(104778)\nNon-operating income (expense):\t\t\t\t\nInterest expense\t(8047)\t(5571)\t(14683)\t(10135)\nWrite-off of Senior Note issuance costs\t(4420)\t0\t(4420)\t0\nDerivative (losses) gains\t(13019)\t17734\t65361\t(33282)\n(Loss) gain on sale of assets\t(261)\t491\t(159)\t490\nOther income (expense) net\t35\t(302)\t281\t(288)\nNet non-operating income (expense)\t(25712)\t12352\t46380\t(43215)\nReorganization items net\t(436)\t(313)\t(1020)\t(776)\nLoss before income taxes\t(438726)\t(45229)\t(433809)\t(148769)\nIncome tax expense\t0\t0\t0\t0\nNet loss\t(438726)\t(45229)\t(433809)\t(148769)\nLoss per share:\t\t\t\t\nBasic\t(9.55)\t(0.99)\t(9.45)\t(3.27)\nDiluted\t(9.55)\t(0.99)\t(9.45)\t(3.27)\nWeighted average shares used to compute earnings per share:\t\t\t\t\nBasic\t45949797\t45641797\t45890041\t45549518\nDiluted\t45949797\t45641797\t45890041\t45549518\n", "q10k_tbl_6": "\tCommon stock\t\t\t\t\t\n(dollars in thousands)\tShares outstanding\tAmount\tAdditional paid in capital\tTreasury stock\tAccumulated deficit\tTotal\nAs of December 31 2018\t46390513\t467\t974616\t(4936)\t(85460)\t884687\nStock-based compensation\t94078\t1\t1423\t0\t0\t1424\nRestricted stock forfeited\t(97113)\t(1)\t0\t0\t0\t(1)\nRepurchase of common stock\t(80422)\t0\t0\t(463)\t0\t(463)\nNet loss\t0\t0\t0\t0\t(103540)\t(103540)\nBalance at March 31 2019\t46307056\t467\t976039\t(5399)\t(189000)\t782107\nStock-based compensation\t160400\t1\t1249\t0\t0\t1250\nRepurchase of common stock\t(126231)\t0\t0\t(708)\t0\t(708)\nIssuance of common stock - litigation settlement\t76217\t1\t323\t0\t0\t324\nNet loss\t0\t0\t0\t0\t(45229)\t(45229)\nBalance at June 30 2019\t46417442\t469\t977611\t(6107)\t(234229)\t737744\n", "q10k_tbl_7": "\tCommon stock\t\t\t\t\t\n(dollars in thousands)\tShares outstanding\tAmount\tAdditional paid in capital\tTreasury stock\tAccumulated deficit\tTotal\nAs of December 31 2019\t47942230\t485\t977174\t(6110)\t(554408)\t417141\nCumulative effect of accounting standard adoption\t0\t0\t0\t0\t(154)\t(154)\nStock-based compensation\t0\t0\t705\t0\t0\t705\nRestricted stock forfeited or canceled\t(22494)\t(1)\t0\t0\t0\t(1)\nRepurchase of common stock\t(3856)\t0\t0\t(6)\t0\t(6)\nNet income\t0\t0\t0\t0\t4917\t4917\nBalance at March 31 2020\t47915880\t484\t977879\t(6116)\t(549645)\t422602\nStock-based compensation\t0\t0\t78\t0\t0\t78\nRestricted stock forfeited\t(93085)\t(1)\t0\t0\t0\t(1)\nRepurchase of common stock\t(32649)\t0\t0\t(12)\t0\t(12)\nNet loss\t0\t0\t0\t0\t(438726)\t(438726)\nBalance at June 30 2020\t47790146\t483\t977957\t(6128)\t(988371)\t(16059)\n", "q10k_tbl_8": "\tSix months ended\t\n(in thousands)\tJune 30 2020\tJune 30 2019\nCash flows from operating activities\t\t\nNet loss\t(433809)\t(148769)\nAdjustments to reconcile net loss to net cash (used in) provided by operating activities\t\t\nDepreciation depletion and amortization\t37833\t53997\nDerivative (gains) losses\t(65361)\t33282\nImpairment of oil and gas assets\t456010\t113315\nImpairment of other assets\t463\t6407\nWrite-off of Senior Note issuance costs\t4420\t0\nLoss (gain) on sale of assets\t159\t(490)\nOther\t4612\t1621\nChange in assets and liabilities\t\t\nAccounts receivable\t6206\t13584\nInventories\t747\t40\nPrepaid expenses and other assets\t(1277)\t1055\nAccounts payable and accrued liabilities\t(7217)\t(18389)\nRevenue distribution payable\t(13049)\t600\nDeferred compensation\t844\t1852\nNet cash (used in) provided by operating activities\t(9419)\t58105\nCash flows from investing activities\t\t\nExpenditures for property plant and equipment and oil and natural gas properties\t(86862)\t(146434)\nProceeds from asset dispositions\t3370\t857\nProceeds from derivative instruments net\t32089\t653\nNet cash used in investing activities\t(51403)\t(144924)\nCash flows from financing activities\t\t\nProceeds from long-term debt\t120000\t85000\nRepayment of long-term debt\t(25313)\t(343)\nPrincipal payments under financing lease obligations\t(212)\t(1445)\nPayment of debt issuance costs and other financing fees\t(93)\t(20)\nTreasury stock purchased\t(18)\t(1171)\nNet cash provided by financing activities\t94364\t82021\nNet increase (decrease) in cash and cash equivalents\t33542\t(4798)\nCash and cash equivalents at beginning of period\t22595\t37446\nCash and cash equivalents at end of period\t56137\t32648\n", "q10k_tbl_9": "\tJune 30 2020\tDecember 31 2019\nJoint interests\t9992\t16664\nCommodity sales\t14416\t30819\nDerivative settlements\t15540\t717\nOther\t3249\t2544\nAllowance for credit losses\t(4215)\t(1097)\n\t38982\t49647\n", "q10k_tbl_10": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nCredit losses on receivables\t1447\t(18)\t2964\t(276)\n", "q10k_tbl_11": "Joint interest receivables gross\tJune 30 2020\nAccounts which have sufficient related revenue distributions payable to offset entire receivable balance\t258\nAccounts which have related revenue distributions payable but not sufficient to offset entire receivable balance\t3711\nAccounts without related revenue distributions payable\t6023\nTotal\t9992\n", "q10k_tbl_12": "\tSix months ended June 30 2020\t\t\t\t\n\tCommodity sales\tJoint interest\tDerivatives\tOther\tTotal\nBalance at January 1 2020\t0\t1097\t0\t0\t1097\nCumulative effect of accounting standard adoption\t154\t0\t0\t0\t154\nCredit losses\t59\t2905\t0\t0\t2964\nWrite-offs\t0\t0\t0\t0\t0\nRecoveries\t0\t0\t0\t0\t0\nBalance at June 30 2020\t213\t4002\t0\t0\t4215\n", "q10k_tbl_13": "\tJune 30 2020\tDecember 31 2019\nEquipment inventory\t2673\t3435\nCommodities\t425\t474\nInventory valuation allowance\t(642)\t(179)\n\t2456\t3730\n", "q10k_tbl_14": "\tJune 30 2020\tDecember 31 2019\nMachinery and equipment\t3229\t3543\nOffice and computer equipment\t3606\t3363\nAutomobiles and trucks\t2469\t3071\nBuilding and improvements\t664\t693\nFurniture and fixtures\t8\t8\n\t9976\t10678\nLess accumulated depreciation amortization and impairment\t3963\t3459\n\t6013\t7219\nLand\t1935\t1998\n\t7948\t9217\n", "q10k_tbl_15": "\tCarrying value at\t\n\tJune 30 2020\tDecember 31 2019\nEquipment\t0\t1572\nVehicles\t111\t488\nReal estate\t0\t800\nTotal held for sale\t111\t2860\n", "q10k_tbl_16": "\tJune 30 2020\tDecember 31 2019\nLeasehold acreage\t135059\t334083\nCapitalized interest\t6317\t16785\nWells and facilities in progress of completion\t919\t20361\nTotal unevaluated oil and natural gas properties excluded from amortization\t142295\t371229\n", "q10k_tbl_17": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nImpairment of oil and gas assets\t384639\t63593\t456010\t113315\n", "q10k_tbl_18": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nOil\t10384\t50990\t47410\t83792\nNatural gas\t5679\t10476\t14334\t21682\nNatural gas liquids\t3903\t11025\t13585\t20242\nGross commodity sales\t19966\t72491\t75329\t125716\nTransportation and processing\t(4086)\t(5784)\t(10598)\t(10390)\nNet commodity sales\t15880\t66707\t64731\t115326\n", "q10k_tbl_19": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nEffective income tax rate\t0.0%\t0.0%\t0.0%\t0.0%\n", "q10k_tbl_20": "\tThree months ended June 30\t\t\tSix months ended June 30\n(in thousands except share and per share data)\t2020\t2019\t2020\t2019\nNumerator for basic and diluted loss per share\t\t\t\t\nNet loss\t(438726)\t(45229)\t(433809)\t(148769)\nDenominator for basic loss per share\t\t\t\t\nWeighted average common shares\t45949797\t45641797\t45890041\t45549518\nDenominator for diluted loss per share\t\t\t\t\nWeighted average common shares\t45949797\t45641797\t45890041\t45549518\nLoss per share\t\t\t\t\nBasic\t(9.55)\t(0.99)\t(9.45)\t(3.27)\nDiluted\t(9.55)\t(0.99)\t(9.45)\t(3.27)\nParticipating securities excluded from loss per share calculations\t\t\t\t\nUnvested restricted stock units - stock settled\t604789\t81119\t604789\t81119\nUnvested restricted stock awards\t1839381\t706821\t1839381\t706821\n", "q10k_tbl_21": "\tSix months ended June 30\t\n\t2020\t2019\nNet cash provided by operating activities included:\t\t\nCash payments for interest\t16942\t16328\nInterest capitalized\t(3900)\t(6613)\nCash payments for reorganization items\t1189\t857\nNon-cash investing activities included:\t\t\nAsset retirement obligation additions and revisions\t133\t386\nFinancing lease right of use asset additions (see Note 5: Leases)\t0\t1387\nChange in accrued oil and gas capital expenditures\t(22418)\t7024\n", "q10k_tbl_22": "\tJune 30 2020\tDecember 31 2019\n8.75% Senior Notes due 2023\t300000\t300000\nCredit facility\t225000\t130000\nInstallment note payable\t0\t371\nFinancing lease obligations\t1442\t1653\nUnamortized debt issuance costs\t(4154)\t(10038)\nTotal debt net\t522288\t421986\nLess current portion\t521292\t594\nTotal long-term debt net\t996\t421392\n", "q10k_tbl_23": "\tAs of June 30 2020\t\n\tOperating leases\tFinancing leases\nRight of use asset:\t\t\nRight of use assets from operating leases\t1744\t0\nPlant property and equipment net\t0\t1428\nTotal lease assets\t1744\t1428\nLease liability:\t\t\nAccount payable and accrued liabilities\t1331\t0\nLong-term debt and financing leases classified as current\t0\t446\nLong-term debt and financing leases less current maturities\t0\t996\nNoncurrent operating lease obligations\t234\t0\nTotal lease liabilities\t1565\t1442\n", "q10k_tbl_24": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nLease cost\t\t\t\t\nFinance lease cost:\t\t\t\t\nAmortization of right-of-use assets\t114\t749\t231\t1442\nInterest on lease liabilities\t26\t117\t53\t230\nOperating lease cost\t389\t308\t779\t616\nShort-term lease cost\t92\t154\t310\t283\nVariable lease cost\t0\t95\t0\t190\nSublease income\t0\t(1198)\t0\t(2396)\nTotal lease cost\t621\t225\t1373\t365\nCapitalized operating lease cost (1)\t0\t3371\t0\t6706\nOther information\t\t\t\t\nCash paid for amounts included in the measurement of lease liabilities\t\t\t\t\nOperating cash flows for finance leases\t(26)\t(117)\t(53)\t(230)\nOperating cash flows for operating leases\t(344)\t(308)\t(689)\t(616)\nInvesting cash flows for operating leases\t0\t(2965)\t0\t(3988)\nFinancing cash flows for finance leases\t(107)\t(746)\t(212)\t(1445)\nRight-of-use assets obtained in exchange for new finance lease liabilities\t0\t717\t0\t1387\n", "q10k_tbl_25": "\t\tWeighted average fixed price per Bbl\nPeriod and type of contract\tVolume MBbls\tSwaps\n2020\t\t\nOil swaps\t1026\t50.56\nOil roll swaps\t180\t0.30\n2021\t\t\nOil swaps\t689\t46.24\nOil roll swaps\t150\t0.30\n", "q10k_tbl_26": "\tAs of June 30 2020\t\t\t\t\tAs of December 31 2019\n\tAssets\tLiabilities\tNet value\tAssets\tLiabilities\tNet value\nNatural gas derivative contracts\t2288\t(500)\t1788\t3552\t(1)\t3551\nCrude oil derivative contracts\t15399\t0\t15399\t391\t(22196)\t(21805)\nNGL derivative contracts\t0\t0\t0\t2868\t(699)\t2169\nTotal derivative instruments\t17687\t(500)\t17187\t6811\t(22896)\t(16085)\nLess:\t\t\t\t\t\t\nNetting adjustments (1)\t(500)\t500\t0\t(5864)\t5864\t0\nDerivative instruments - current\t15197\t0\t15197\t947\t(11957)\t(11010)\nDerivative instruments - long-term\t1990\t0\t1990\t0\t(5075)\t(5075)\n", "q10k_tbl_27": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nChange in fair value of commodity price derivatives\t(35934)\t17596\t33272\t(33935)\nNet settlements received on commodity price derivatives\t22915\t138\t32089\t653\nTotal derivative gains (losses)\t(13019)\t17734\t65361\t(33282)\n", "q10k_tbl_28": "\tAs of June 30 2020\t\t\t\t\tAs of December 31 2019\n\tDerivative assets\tDerivative liabilities\tNet assets (liabilities)\tDerivative assets\tDerivative liabilities\tNet assets (liabilities)\nSignificant other observable inputs (Level 2)\t17687\t0\t17687\t6576\t(22895)\t(16319)\nSignificant unobservable inputs (Level 3)\t0\t(500)\t(500)\t235\t(1)\t234\nNetting adjustments (1)\t(500)\t500\t0\t(5864)\t5864\t0\n\t17187\t0\t17187\t947\t(17032)\t(16085)\n", "q10k_tbl_29": "\tSix months ended June 30\t\nNet derivative assets (liabilities)\t2020\t2019\nBeginning balance\t234\t30\nRealized and unrealized gains included in derivative losses\t1033\t441\nSettlements (received) paid\t(1767)\t116\nEnding balance\t(500)\t587\n(Losses) gains relating to instruments still held at the reporting date included in derivative gains (losses) for the period\t(430)\t742\n", "q10k_tbl_30": "\tSix months ended June 30\t\n\t2020\t2019\nInflation rate\t2.21%\t2.25%\nCredit-adjusted risk-free discount rate (low)\t25.00%\t12.35%\nCredit-adjusted risk-free discount rate (high)\t25.00%\t14.60%\n", "q10k_tbl_31": "\tJune 30 2020\t\t\tDecember 31 2019\nLevel 2\tCarrying value (1)\tEstimated fair value\tCarrying value (1)\tEstimated fair value\n8.75% Senior Notes due 2023\t300000\t30000\t300000\t133050\nCredit facility\t225000\t225000\t130000\t130000\nOther secured debt (2)\t0\t0\t371\t371\n", "q10k_tbl_32": "\tOffset in the consolidated balance sheets\t\t\t\t\tGross amounts not offset in the consolidated balance sheets\n\tGross assets (liabilities)\tOffsetting assets (liabilities)\tNet assets (liabilities)\tDerivatives (1)\tAmounts outstanding under credit facilities (2)\tNet amount\nJune 30 2020\t\t\t\t\t\t\nDerivative assets\t17687\t(500)\t17187\t0\t(17187)\t0\nDerivative liabilities\t(500)\t500\t0\t0\t0\t0\n\t17187\t0\t17187\t0\t(17187)\t0\nDecember 31 2019\t\t\t\t\t\t\nDerivative assets\t6811\t(5864)\t947\t0\t(947)\t0\nDerivative liabilities\t(22896)\t5864\t(17032)\t0\t947\t(16085)\n\t(16085)\t0\t(16085)\t0\t0\t(16085)\n", "q10k_tbl_33": "Balance at January 1 2020\t23156\nLiabilities incurred in current period\t84\nLiabilities settled or disposed in current period\t(419)\nRevisions in estimated cash flows\t49\nAccretion expense\t649\nBalance at June 30 2020\t23519\nLess current portion included in accounts payable and accrued liabilities\t2107\nAsset retirement obligations long-term\t21412\n", "q10k_tbl_34": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nCash LTIP expense (net of amounts capitalized)\t187\t67\t354\t158\n", "q10k_tbl_35": "\tTime Shares\t\t\t\t\tPerformance Shares\n\tWeighted average award date fair value\tRestricted shares\tVest date fair value\tWeighted average award date fair value\tRestricted shares\n\t($ per share)\t\t\t($ per share)\t\nUnvested and outstanding at January 1 2020\t5.41\t1069505\t\t1.53\t1089343\nGranted\t0\t0\t\t0\t0\nVested\t15.71\t(203888)\t130\t0\t0\nForfeited\t8.87\t(82658)\t\t6.94\t(20833)\nCancelled\t20.05\t(12088)\t\t0\t0\nUnvested and outstanding at June 30 2020\t2.09\t770871\t\t1.33\t1068510\n", "q10k_tbl_36": "\tEquity classified RSUs\t\t\t\t\n\tService-condition RSUs\t\t\t\tMarket condition RSUs\n\tWeighted average award date fair value\tRestricted units\tVest date fair value\tWeighted average award date fair value\tRestricted units\n\t($ per share)\t\t\t($ per share)\t\nUnvested and outstanding at January 1 2020\t2.41\t638383\t\t1.36\t390000\nGranted\t1.95\t4500\t\t0\t0\nVested\t0\t0\t0\t0\t0\nForfeited\t1.56\t(228094)\t\t1.36\t(200000)\nUnvested and outstanding at June 30 2020\t2.87\t414789\t\t1.36\t190000\n", "q10k_tbl_37": "\tLiability classified RSUs\t\t\n\tWeighted average award date fair value\tRestricted units\tVest date fair value\n\t($ per share)\t\t\nUnvested and outstanding at January 1 2020\t4.57\t75779\t\nGranted\t0\t0\t\nVested\t1.33\t(60000)\t41\nForfeited\t17.66\t(1515)\t\nUnvested and outstanding at June 30 2020\t16.83\t14264\t\n", "q10k_tbl_38": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nStock-based compensation cost\t101\t1260\t771\t2720\nLess: stock-based compensation cost capitalized\t(7)\t(399)\t(281)\t(1025)\nStock-based compensation expense\t94\t861\t490\t1695\nNumber of vested shares repurchased or settled in cash\t92649\t126231\t96505\t206653\nPayments for stock-based compensation\t53\t708\t59\t1171\n", "q10k_tbl_39": "(in thousands)\tJune 30 2020\tDecember 31 2019\n8.75% Senior Notes due 2023\t300000\t300000\nCredit facility\t225000\t130000\nFinancing lease obligations\t1442\t1653\nInstallment note payable\t0\t371\nUnamortized issuance costs\t(4154)\t(10038)\nTotal debt net\t522288\t421986\n", "q10k_tbl_40": "\tSix months ended June 30\t\n(in thousands)\t2020\t2019\nCash flows (used in) provided by operating activities\t(9419)\t58105\nCash flows used in investing activities\t(51403)\t(144924)\nCash flows provided by financing activities\t94364\t82021\nNet increase (decrease) in cash during the period\t33542\t(4798)\n", "q10k_tbl_41": "(in thousands)\tSix months ended June 30 2020\nAcquisitions (1)\t11080\nDrilling (2)\t42750\nEnhancements\t4069\nOperational capital expenditures incurred\t57899\nOther (3)\t6952\nTotal capital expenditures incurred\t64851\n", "q10k_tbl_42": "\tThree months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nFocus Areas:\t\t\t\t\nKingfisher County\t462\t646\t(184)\t(28.5)%\nCanadian County\t732\t1125\t(393)\t(34.9)%\nGarfield County\t169\t343\t(174)\t(50.7)%\nOther\t18\t51\t(33)\t(64.7)%\nTotal Focus Areas\t1381\t2165\t(784)\t(36.2)%\nOther\t308\t409\t(101)\t(24.7)%\nTotal\t1689\t2574\t(885)\t(34.4)%\n", "q10k_tbl_43": "\tSix months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nFocus Areas:\t\t\t\t\t\nKingfisher County\t1212\t1251\t(39)\t(3.1)%\nCanadian County\t2114\t1601\t513\t32.0%\nGarfield County\t405\t639\t(234)\t(36.6)%\nOther\t54\t108\t(54)\t(50.0)%\nTotal Focus Areas\t3785\t3599\t186\t5.2%\nOther\t697\t849\t(152)\t(17.9)%\nTotal\t4482\t4448\t34\t0.8%\n", "q10k_tbl_44": "\tThree months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nCommodity sales (in thousands):\t\t\t\t\nOil\t10384\t50990\t(40606)\t(79.6)%\nNatural gas\t5679\t10476\t(4797)\t(45.8)%\nNatural gas liquids\t3903\t11025\t(7122)\t(64.6)%\nGross commodity sales\t19966\t72491\t(52525)\t(72.5)%\nTransportation and processing\t(4086)\t(5784)\t1698\t(29.4)%\nNet commodity sales\t15880\t66707\t(50827)\t(76.2)%\nProduction:\t\t\t\t\nOil (MBbls)\t453\t873\t(420)\t(48.1)%\nNatural gas (MMcf)\t4621\t5715\t(1094)\t(19.1)%\nNatural gas liquids (MBbls)\t466\t749\t(283)\t(37.8)%\nMBoe\t1689\t2574\t(885)\t(34.4)%\nAverage daily production (Boe/d)\t18562\t28286\t(9724)\t(34.4)%\nAverage sales prices (excluding derivative settlements):\t\t\t\t\nOil per Bbl\t22.92\t58.41\t(35.49)\t(60.8)%\nNatural gas per Mcf\t1.23\t1.83\t(0.60)\t(32.8)%\nNGLs per Bbl\t8.38\t14.72\t(6.34)\t(43.1)%\nTransportation and processing per Boe\t(2.42)\t(2.25)\t(0.17)\t7.6%\nAverage sales price per Boe\t9.40\t25.92\t(16.52)\t(0.64)\n", "q10k_tbl_45": "\tSix months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nCommodity sales (in thousands):\t\t\t\t\nOil\t47410\t83792\t(36382)\t(43.4)%\nNatural gas\t14334\t21682\t(7348)\t(33.9)%\nNatural gas liquids\t13585\t20242\t(6657)\t(32.9)%\nGross commodity sales\t75329\t125716\t(50387)\t(40.1)%\nTransportation and processing\t(10598)\t(10390)\t(208)\t2.0%\nNet commodity sales\t64731\t115326\t(50595)\t(43.9)%\nProduction:\t\t\t\t\nOil (MBbls)\t1293\t1491\t(198)\t(13.3)%\nNatural gas (MMcf)\t11071\t10189\t882\t8.7%\nNatural gas liquids (MBbls)\t1344\t1259\t85\t6.8%\nMBoe\t4482\t4448\t34\t0.8%\nAverage daily production (Boe/d)\t24627\t24576\t51\t0.2%\nAverage sales prices (excluding derivative settlements):\t\t\t\t\nOil per Bbl\t36.67\t56.20\t(19.53)\t(34.8)%\nNatural gas per Mcf\t1.29\t2.13\t(0.84)\t(39.4)%\nNGLs per Bbl\t10.11\t16.08\t(5.97)\t(37.1)%\nTransportation and processing per Boe\t(2.36)\t(2.34)\t(0.02)\t0.9%\nAverage sales price per Boe\t14.44\t25.93\t(11.49)\t(44.3)%\n", "q10k_tbl_46": "\tThree months ended June 30 2020 vs. 2019\t\t\tSix months ended June 30 2020 vs. 2019\n(in thousands)\tSales change\tPercentage change in sales\tSales change\tPercentage change in sales\nChange in oil sales due to:\t\t\t\t\nPrices\t(16074)\t(31.5)%\t(25254)\t(30.1)%\nVolume\t(24532)\t(48.0)%\t(11128)\t(13.3)%\nTotal change in oil sales\t(40606)\t(79.6)%\t(36382)\t(43.4)%\nChange in natural gas sales due to:\t\t\t\t\nPrices\t(2795)\t(26.7)%\t(9227)\t(42.6)%\nVolume\t(2002)\t(19.1)%\t1879\t8.7%\nTotal change in natural gas sales\t(4797)\t(45.8)%\t(7348)\t(33.9)%\nChange in natural gas liquids sales due to:\t\t\t\t\nPrices\t(2956)\t(26.9)%\t(8024)\t(39.6)%\nVolume\t(4166)\t(37.8)%\t1367\t6.8%\nTotal change in natural gas liquids sales\t(7122)\t(64.6)%\t(6657)\t(32.9)%\n", "q10k_tbl_47": "\tThree months ended June 30\t\t\tSix months ended June 30\n\t2020\t2019\t2020\t2019\nOil (per Bbl):\t\t\t\t\nBefore derivative settlements\t22.92\t58.41\t36.67\t56.20\nAfter derivative settlements\t63.55\t56.13\t54.12\t55.54\nPost-settlement to pre-settlement price\t277.3%\t96.1%\t147.6%\t98.8%\nNatural gas liquids (per Bbl):\t\t\t\t\nBefore derivative settlements\t8.38\t14.72\t10.11\t16.08\nAfter derivative settlements\t13.73\t16.08\t14.44\t17.33\nPost-settlement to pre-settlement price\t163.8%\t109.2%\t142.8%\t107.8%\nNatural gas (per Mcf):\t\t\t\t\nBefore derivative settlements\t1.23\t1.83\t1.29\t2.13\nAfter derivative settlements\t1.67\t2.03\t1.63\t2.13\nPost-settlement to pre-settlement price\t135.8%\t110.9%\t126.4%\t100.0%\n", "q10k_tbl_48": "(in thousands)\tJune 30 2020\tDecember 31 2019\nDerivative assets (liabilities):\t\t\nCrude oil derivatives\t15399\t(21805)\nNatural gas derivatives\t1788\t3551\nNGL derivatives\t0\t2169\nNet derivative assets (liabilities)\t17187\t(16085)\n", "q10k_tbl_49": "\tThree months ended June 30\t\t\t\n\t2020\t\t\t2019\n(in thousands)\tNon-cash fair value adjustment\tSettlements (paid) received\tNon-cash fair value adjustment\tSettlements (paid) received\nDerivative gains (losses):\t\t\t\t\nCrude oil derivatives\t(30036)\t18405\t11466\t(1991)\nNatural gas derivatives\t(2468)\t2017\t4889\t1113\nNGL derivatives\t(3430)\t2493\t1241\t1016\nDerivative gains (losses)\t(35934)\t22915\t17596\t138\n\tSix months ended June 30\t\t\t\n\t2020\t\t\t2019\n(in thousands)\tNon-cash fair value adjustment\tSettlements (paid) received\tNon-cash fair value adjustment\tSettlements (paid) received\nDerivative gains (losses):\t\t\t\t\nCrude oil derivatives\t37204\t22561\t(37203)\t(980)\nNatural gas derivatives\t(1763)\t3705\t4750\t52\nNGL derivatives\t(2169)\t5823\t(1482)\t1581\nDerivative gains (losses)\t33272\t32089\t(33935)\t653\n", "q10k_tbl_50": "\tThree months ended June 30\t\t\tIncrease/\tPercent\n(in thousands except per Boe data)\t2020\t2019\t(Decrease)\tChange\nLease operating expenses:\t\t\t\t\nFocus Areas\t3082\t8445\t(5363)\t(63.5)%\nOther\t2889\t4926\t(2037)\t(41.4)%\nTotal lease operating expenses\t5971\t13371\t(7400)\t(55.3)%\nLease operating expenses per Boe:\t\t\t\t\nFocus Areas\t2.23\t3.90\t(1.67)\t(42.8)%\nOther\t9.38\t12.04\t(2.66)\t(22.1)%\nLease operating expenses per Boe\t3.54\t5.19\t(1.65)\t(31.8)%\n", "q10k_tbl_51": "\tSix months ended June 30\t\t\tIncrease/\tPercent\n(in thousands except per Boe data)\t2020\t2019\t(Decrease)\tChange\nLease operating expenses:\t\t\t\t\nFocus Areas\t8691\t15559\t(6868)\t(44.1)%\nOther\t7368\t10106\t(2738)\t(27.1)%\nTotal lease operating expenses\t16059\t25665\t(9606)\t(37.4)%\nLease operating expenses per Boe:\t\t\t\t\nFocus Areas\t2.30\t4.32\t(2.02)\t(46.8)%\nOther\t10.57\t11.90\t(1.33)\t(11.2)%\nLease operating expenses per Boe\t3.58\t5.77\t(2.19)\t(38.0)%\n", "q10k_tbl_52": "\tThree months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nProduction taxes (in thousands)\t823\t3802\t(2979)\t(78.4)%\nProduction taxes per Boe\t0.49\t1.48\t(0.99)\t(66.9)%\nProduction taxes as % of commodity sales\t4.1%\t5.2%\t\t\n\tSix months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nProduction taxes (in thousands)\t3573\t6682\t(3109)\t(46.5)%\nProduction taxes per Boe\t0.80\t1.50\t(0.70)\t(46.7)%\nProduction taxes as % of commodity sales\t4.7%\t5.3%\t\t\n", "q10k_tbl_53": "\tThree months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nDD&A (in thousands):\t\t\t\t\nOil and natural gas properties (1)\t14388\t28488\t(14100)\t(49.5)%\nProperty and equipment\t433\t1794\t(1361)\t(75.9)%\nTotal DD&A\t14821\t30282\t(15461)\t(51.1)%\nDD&A per Boe:\t\t\t\t\nOil and natural gas properties (1)\t8.52\t11.07\t(2.55)\t(23.0)%\nOther fixed assets\t0.25\t0.69\t(0.44)\t(63.8)%\nTotal DD&A per Boe\t8.77\t11.76\t(2.99)\t(25.4)%\n", "q10k_tbl_54": "\tSix months ended June 30\t\t\tIncrease/\tPercent\n\t2020\t2019\t(Decrease)\tChange\nDD&A (in thousands):\t\t\t\t\nOil and natural gas properties (1)\t36963\t50369\t(13406)\t(26.6)%\nProperty and equipment\t870\t3628\t(2758)\t(76.0)%\nTotal DD&A\t37833\t53997\t(16164)\t(29.9)%\nDD&A per Boe:\t\t\t\t\nOil and natural gas properties (1)\t8.25\t11.32\t(3.07)\t(27.1)%\nOther fixed assets\t0.19\t0.82\t(0.63)\t(76.8)%\nTotal DD&A per Boe\t8.44\t12.14\t(3.70)\t(30.5)%\n", "q10k_tbl_55": "\tThree months ended June 30\t\t\tIncrease/\tPercent\n(in thousands)\t2020\t2019\t(Decrease)\tChange\nG&A:\t\t\t\t\nGross G&A expenses\t10187\t9836\t351\t3.6%\nCapitalized exploration and development costs\t(699)\t(2521)\t1822\t(72.3)%\nNet G&A expenses\t9488\t7315\t2173\t29.7%\nNet G&A expense per Boe\t5.62\t2.84\t2.78\t97.9%\n", "q10k_tbl_56": "\tSix months ended June 30\t\t\tIncrease/\tPercent\n(in thousands)\t2020\t2019\t(Decrease)\tChange\nG&A:\t\t\t\t\nGross G&A expenses\t20480\t20871\t(391)\t(1.9)%\nCapitalized exploration and development costs\t(2924)\t(5243)\t2319\t(44.2)%\nNet G&A expenses\t17556\t15628\t1928\t12.3%\nNet G&A expense per Boe\t3.92\t3.51\t0.41\t11.7%\n", "q10k_tbl_57": "\tThree months ended June 30\t\t\tSix months ended June 30\n(in thousands)\t2020\t2019\t2020\t2019\nEmployee severance costs\t901\t0\t1634\t1058\nStock compensation gross\t108\t1228\t768\t2647\nSales tax interest and penalties\t777\t0\t777\t0\nCredit losses on receivables\t1447\t(18)\t2964\t(276)\n\t3233\t1210\t6143\t3429\n", "q10k_tbl_58": "\tThree months ended June 30\t\t\tSix months ended June 30\n(in thousands)\t2020\t2019\t2020\t2019\nCeiling impairment\t384639\t63593\t456010\t113315\n", "q10k_tbl_59": "Benchmark prices utilized in ceiling test\tJune 30 2020\tMarch 31 2020\tDecember 31 2019\nOil (per Bbl)\t47.17\t55.77\t55.69\nNatural gas (per MMBtu)\t2.07\t2.30\t2.58\nNatural gas liquids (per Bbl)\t11.29\t14.97\t16.21\n", "q10k_tbl_60": "\tThree months ended June 30\t\t\tSix months ended June 30\n(in thousands)\t2020\t2019\t2020\t2019\nCredit facility\t2224\t838\t3613\t988\nSenior Notes\t6562\t6562\t13125\t13125\nBank fees other interest and amortization of issuance costs\t843\t1292\t1845\t2635\nInterest expense gross\t9629\t8692\t18583\t16748\nCapitalized interest\t(1582)\t(3121)\t(3900)\t(6613)\nTotal interest expense\t8047\t5571\t14683\t10135\nAverage borrowings\t539012\t391405\t492926\t362557\n", "q10k_tbl_61": "\tThree months ended June 30\t\t\tSix months ended June 30\n(in thousands)\t2020\t2019\t2020\t2019\nNet loss\t(438726)\t(45229)\t(433809)\t(148769)\nInterest expense\t8047\t5571\t14683\t10135\nDepreciation depletion and amortization\t14821\t30282\t37833\t53997\nNon-cash change in fair value of derivative instruments\t35934\t(17596)\t(33272)\t33935\nImpact of derivative repricing\t702\t0\t1404\t0\nInterest income\t0\t(2)\t0\t(2)\nStock-based compensation expense\t90\t852\t496\t1654\nLoss (gain) on sale of assets\t261\t(491)\t159\t(490)\nLoss on impairment of oil and gas assets\t384639\t63593\t456010\t113315\nLoss on impairment of other assets\t310\t6407\t463\t6407\nCredit loss on uncollectible receivables\t1447\t(18)\t2964\t(276)\nWrite-off of Senior Note issuance costs\t4420\t0\t4420\t0\nRestructuring reorganization and other\t1337\t313\t2654\t1833\nAdjusted EBITDA\t13282\t43682\t54005\t71739\n", "q10k_tbl_62": "(dollars in thousands)\tJune 30 2020\tDecember 31 2019\nCurrent assets per GAAP\t116806\t80390\nPlus-Availability under Credit Agreement\t0\t194406\nLess-Short term derivative instruments\t(15197)\t(947)\nCurrent assets as adjusted\t101609\t273849\nCurrent liabilities per GAAP\t588165\t122669\nLess-Current derivative instruments\t0\t(11957)\nLess-Current operating lease obligation\t(1331)\t(1259)\nLess-Current asset retirement obligation\t(2107)\t(2083)\nLess-Current maturities of long term debt\t(521292)\t(594)\nCurrent liabilities as adjusted\t63435\t106776\nCurrent ratio per GAAP\t0.20\t0.66\nCurrent ratio for loan compliance\t1.60\t2.56\n", "q10k_tbl_63": "Period and type of contract\tVolume MBbls\tWeighted average fixed price per Bbl\nJuly - September 2020\t\t\nOil swaps\t495\t50.63\nOil roll swaps\t90\t0.30\nOctober - December 2020\t\t\nOil swaps\t531\t50.49\nOil roll swaps\t90\t0.30\nJanuary - March 2021\t\t\nOil swaps\t170\t46.24\nOil roll swaps\t90\t0.30\nApril - June 2021\t\t\nOil swaps\t165\t45.97\nOil roll swaps\t60\t0.30\nJuly - September 2021\t\t\nOil swaps\t183\t46.64\nOctober - December 2021\t\t\nOil swaps\t171\t46.07\n", "q10k_tbl_64": "Period and type of contract\tVolume BBtu\tWeighted average fixed price per MMBtu\nJuly - September 2020\t\t\nNatural gas swaps\t1500\t2.75\nNatural gas basis swaps\t1500\t(0.46)\nOctober - December 2020\t\t\nNatural gas swaps\t1500\t2.75\nNatural gas basis swaps\t1500\t(0.46)\n", "q10k_tbl_65": "Period\tTotal number of shares purchased (1)\tAverage price paid per share\tTotal number of shares purchased as part of publicly announced plans or programs\tMaximum number of shares that may yet be purchased under the plans or programs\nApril 1 - 30 2020\t32649\t0.35\tN/A\tN/A\nMay 1 - 30 2020\t0\t0\tN/A\tN/A\nJune 1 - 30 2020\t0\t0\tN/A\tN/A\nTotal\t32649\t0.35\tN/A\tN/A\n", "q10k_tbl_66": "Exhibit No.\tDescription\n3.1*\tThird Amended and Restated Certificate of Incorporation of Chaparral Energy Inc. dated as of March 21 2017 (Incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed on March 27 2017).\n3.2*\tCertificate of Retirement of 7869929 shares of Class B Common Stock (Incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed on December 19 2018).\n3.3*\tSecond Amended and Restated Bylaws of Chaparral Energy Inc. dated as of December 20 2019 (Incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed on December 27 2019).\n4.1*\tIndenture dated June 29 2018 among the Company the Guarantors party thereto and UMB Bank N.A. as Trustee (Incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K filed on July 2 2018).\n4.2*\tForm of 8.750% Senior Note due 2023 (Incorporated by reference to Exhibit A of Exhibit 4.1 of the Company's Current Report on Form 8-K filed on July 2 2018).\n4.3*\tRegistration Rights Agreement dated as of March 21 2017 by and among Chaparral Energy Inc. and the Stockholders named therein (Incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed on March 27 2017).\n10.1*\tRestructuring Support Agreement dated as of August 15 2020 by and among Chaparral Energy Inc. certain of its subsidiaries and the Consenting Creditors (as defined therein) (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed on August 17 2020).\n10.2*\tBackstop Purchase Agreement dated as of August 15 2020 by and among Chaparral Energy Inc. certain of its subsidiaries and the Backstop Parties (as defined therein) (Incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K filed on August 17 2020).\n10.3*\tSVP Letter Agreement dated as of August 14 2020 by and among Strategic Value Partners LLC certain investment funds directly and indirectly managed by Strategic Value Partners LLC and Chaparral Energy Inc. (Incorporated by reference to Exhibit 99.7 to the Company's Current Report on Form 8-K filed on August 17 2020).\n10.4*\tForbearance Agreement dated as of July 15 2020 by and among the Company the subsidiary guarantors party thereto certain Lenders identified therein and Royal Bank of Canada as Administrative Agent and Issuing Bank (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed on July 15 2020).\n10.5*\tFirst Amendment to Forbearance Agreement dated as of July 24 2020 by and among the Company the subsidiary guarantors party thereto certain Lenders identified therein Royal Bank of Canada as Administrative Agent and Issuing Bank and the hedge counterparties party thereto (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed on July 27 2020).\n10.6*\tSecond Amendment to Forbearance Agreement dated as of July 29 2020 by and among the Chaparral Energy Inc. the subsidiary guarantors party thereto certain Lenders identified therein and Royal Bank of Canada as Administrative Agent and Issuing Bank (Incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed on July 31 2020).\n10.7*\tThird Amendment to Limited Forbearance Agreement dated as of August 14 2020 by and among the Chaparral Energy Inc. the subsidiary guarantors party thereto certain Lenders identified therein and Royal Bank of Canada as Administrative Agent and Issuing Bank (Incorporated by reference to Exhibit 99.8 to the Company's Current Report on Form 8-K filed on August 17 2020).\n", "q10k_tbl_67": "10.8 *\tForbearance and Waiver Agreement dated as of July 30 2020 by and among Chaparral Energy Inc. the subsidiary guarantors party thereto and certain noteholders identified therein (Incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K filed on July 31 2020).\n10.9 *\tAmended and Restated Forbearance and Waiver Agreement dated as of August 14 2020 by and among Chaparral Energy Inc. the subsidiary guarantors party thereto and certain noteholders identified therein (Incorporated by reference to Exhibit 99.9 to the Company's Current Report on Form 8-K filed on August 17 2020).\n10.10 †*\tChaparral Energy Inc. 2020 Key Executive Incentive Plan dated April 24 2020 (Incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q filed on May 11 2020).\n10.11 †*\tForm of Award Notice under Chaparral Energy Inc. 2020 Key Executive Incentive Plan dated April 24 2020 (Incorporated by reference to Exhibit 10.2 of the Company's Quarterly Report on Form 10-Q filed on May 11 2020).\n10.12 †*\tChaparral Energy Inc. 2020 Key Executive Retention Plan dated April 24 2020 (Incorporated by reference to Exhibit 10.3 of the Company's Quarterly Report on Form 10-Q filed on May 11 2020).\n10.13 †*\tForm of Award Notice under Chaparral Energy Inc. 2020 Key Executive Retention Plan dated April 24 2020 (Incorporated by reference to Exhibit 10.4 of the Company's Quarterly Report on Form 10-Q filed on May 11 2020).\n10.14 †*\tAmendment to the Separation and Release Agreement between the Company Chaparral Energy L.L.C. and K. Earl Reynolds dated August 13 2020 (Incorporated by reference to Exhibit 99.6 to the Company's Current Report on Form 8-K filed on August 17 2020).\n10.15 †*\tAmendment and Release Agreement between the Company Chaparral Energy L.L.C. and Scott Pittman dated August 13 2020 (Incorporated by reference to Exhibit 99.5 to the Company's Current Report on Form 8-K filed on August 17 2020).\n10.16 †*\tAmendment and Release Agreement between the Company Chaparral Energy L.L.C. and James M. Miller dated August 13 2020 (Incorporated by reference to Exhibit 99.3 to the Company's Current Report on Form 8-K filed on August 17 2020).\n10.17 †*\tAmendment and Release Agreement between the Company Chaparral Energy L.L.C. and Mark Ver Hoeve dated August 13 2020 (Incorporated by reference to Exhibit 99.4 to the Company's Current Report on Form 8-K filed on August 17 2020).\n31.1\tCertification by Principal Executive Officer required by Rule 13a-14(a) and 15d-14(a) under the Exchange Act.\n31.2\tCertification by Principal Financial Officer required by Rule 13a-14(a) and 15d-14(a) under the Exchange Act.\n32.1\tCertification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n32.2\tCertification by Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n101.INS\tXBRL Instance Document.\n"}{"bs": "q10k_tbl_4", "is": "q10k_tbl_5", "cf": "q10k_tbl_8"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-38602
Chaparral Energy, Inc.
(Exact name of registrant as specified in its charter)
Delaware
73-1590941
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
701 Cedar Lake Boulevard
Oklahoma City, Oklahoma
73114
(Address of principal executive offices)
(Zip Code)
(405) 478-8770
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of class
Trading Symbol(s)
Name of each exchange on which registered
Class A common stock, par value, $0.01 per share
CHAP
The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes ☒ No ☐
Number of shares outstanding of each of the issuer’s classes of common stock as of August 17, 2020: 47,790,146 shares of Class A Common Stock, par value $0.01 per share.
This report includes statements that constitute forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties. These statements may relate to, but are not limited to, information or assumptions about us, our capital and other expenditures, dividends, financing plans, capital structure, cash flow, pending legal and regulatory proceedings and claims, including environmental matters, future economic performance, operating income, cost savings, and management’s plans, strategies, goals and objectives for future operations and growth. These forward-looking statements generally are accompanied by words such as “intend,” “anticipate,” “believe,” “estimate,” “expect,” “should,” “seek,” “project,” “plan” or similar expressions. Any statement that is not a historical fact is a forward-looking statement. It should be understood that these forward-looking statements are necessarily estimates reflecting the best judgment of senior management, not guarantees of future performance. They are subject to a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements in this report may include, for example, statements about:
•the Chapter 11 Cases;
•the effects of the Chapter 11 Cases on our liquidity or results of operations or business prospects;
•the expected terms of a proposed plan of reorganization;
•our ability to confirm and consummate a Chapter 11 plan of reorganization;
•our ability to continue to operate in the ordinary course while the Chapter 11 Cases are pending;
•the treatment of our creditors and other stakeholders (including, without limitation, holders of our common stock) under a plan of reorganization;
•the potential impact of any epidemics or pandemics, including COVID-19;
•fluctuations in demand or the prices received for oil and natural gas;
•the amount, nature and timing of capital expenditures;
•drilling, completion and performance of wells;
•inventory of drillable locations;
•competition;
•government regulations;
•timing and amount of future production of oil and natural gas;
•costs of exploiting and developing properties and conducting other operations, in the aggregate and on a per-unit equivalent basis;
•changes in proved reserves;
•operating costs and other expenses;
•our future financial condition, results of operations, revenue, cash flows and expenses;
•estimates of proved reserves;
•exploitation of property acquisitions;
•takeaway constraints and storage capacity for oil and natural gas; and
•marketing of oil and natural gas.
These forward-looking statements represent intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In addition to the risk factors described in Part II, Item 1A. Risk Factors, of this report and Part I, Item 1A. Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2019, the risks and uncertainties include or relate to:
•risks and uncertainties regarding the Company’s ability to complete a reorganization process under Chapter 11 of the Bankruptcy Code, including consummation of the restructuring in accordance with the terms of our restructuring support agreement;
•the Company’s ability to obtain timely approval by the Bankruptcy Court regarding the motions filed in the Chapter 11 Cases;
•the time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 Cases;
•the effects of the Chapter 11 Cases on our liquidity or results of operations or business prospects;
•the effects of the Chapter 11 Cases on our business and the interests of various constituents, including our stockholders;
•employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties, including the Company’s ability to provide adequate compensation and benefits during the Chapter 11 Cases;
3
•the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities because of the Chapter 11 filing;
•the effects of the Chapter 11 Cases on the market price of the Company’s common stock and on the Company’s ability to access the capital markets;
•risks associated with third party motions in the Chapter 11 Cases, which may interfere with the Company’s ability to consummate the restructuring or an alternative restructuring;
•increased administrative and legal costs related to the Chapter 11 process;
•potential delays in the Chapter 11 process due to the effects of COVID-19;
•other litigation and inherent risks involved in a bankruptcy process;
•future capital expenditures (or funding thereof) and working capital;
•worldwide supply of and demand for oil and natural gas, including to the extent affected by the COVID-19 pandemic and the recovery therefrom;
•volatility and declines in oil and natural gas prices, including to the extent affected by the COVID-19 pandemic and the recovery therefrom;
•geopolitical events affecting oil and natural gas prices;
•the impact of COVID-19 on the health of our key personnel;
•risks related to the geographic concentration of our assets;
•our ability to develop, explore for, acquire and replace oil and natural gas reserves and sustain production;
•drilling plans (including scheduled and budgeted wells);
•the extent to which we are able to continue to reduce lease operating expense and G&A costs;
•geologic and reservoir complexity and variability;
•uncertainties in estimating our oil and gas reserves and the present values of those reserves;
•the number, timing or results of any wells;
•changes in wells operated and in reserve estimates;
•activities on properties we do not operate;
•availability and cost of drilling and production equipment, facilities, field service providers, gathering, processing and transportation;
•takeaway constraints and storage capacity for oil and natural gas;
•competition in the oil and natural gas industry;
•outcome, effects or timing of legal proceedings (including environmental litigation);
•weather, including its impact on oil and natural gas demand and weather-related delays on operations;
•the impact of natural disasters on our present and future operations;
•the operating hazards attendant to the oil and natural gas business;
•effectiveness and extent of our risk management activities;
•effectiveness of orders from the Oklahoma Corporation Commission and other regulatory bodies in mitigating the risk of lease cancellation actions associated with the voluntary shut-in of production;
•current borrowings, capital resources and liquidity;
•covenant compliance under instruments governing any of our existing or future indebtedness, including our ability to comply with financial covenants under our Credit Agreement;
•the effects of government regulation and permitting and other legal requirements;
•the impact of legislative, tax and regulatory initiatives, including in response to the COVID-19 pandemic;
•volatility in the price of our common stock;
•integration of existing and new technologies into operations;
•future exploration;
•changes in strategy and business discipline; and
•the ability to successfully complete merger, acquisition or divestiture plans, regulatory or other limitations imposed as a result of a merger, acquisition or divestiture, and the success of the business following a merger, acquisition or divestiture.
Reserve engineering is a process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions may change the schedule of any future production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.
Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements contained herein. We undertake no obligation to
4
update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.
5
GLOSSARY OF CERTAIN DEFINED TERMS
The terms defined in this section are used throughout this Form 10-Q:
Bankruptcy Code
Title 11 of the United States Code.
Bankruptcy Court
United States Bankruptcy Court for the District of Delaware.
Bbl
One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate, or natural gas liquids.
BBtu
One billion British thermal units.
Boe
One barrel of crude oil equivalent, determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil.
Boe/d
Barrels of oil equivalent per day.
Btu
British thermal unit, which is the heat required to raise the temperature of one-pound of water from 58.5 to 59.5 degrees Fahrenheit.
Chapter 11 Cases
Voluntary petitions seeking relief under the Bankruptcy Code in the Bankruptcy Court for relief under Chapter 11 of the Bankruptcy Code filed on August 16, 2020, 2020, by Chaparral Energy, Inc. and its subsidiaries, including Chaparral Resources, L.L.C., Chaparral Real Estate, L.L.C., Chaparral CO2, L.L.C., CEI Pipeline, L.L.C., Chaparral Energy, L.L.C., CEI Acquisition, L.L.C., Green Country Supply, Inc., Chaparral Biofuels, L.L.C., Chaparral Exploration, L.L.C., Roadrunner Drilling, L.L.C., Trabajo Energy, L.L.C., Charles Energy, L.L.C. and Chestnut Energy, L.L.C.
Completion
The process of treating a drilled well followed by the installation of permanent equipment for the production of oil or natural gas, or in the case of a dry well, the reporting to the appropriate authority that the well has been abandoned.
CO2
Carbon dioxide.
COVID-19
An infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). It was first identified in late 2019 and has since spread globally, resulting in a sustained pandemic.
Credit Agreement
Tenth Restated Credit Agreement, as amended, by and among Chaparral Energy, Inc., Royal Bank of Canada as Administrative Agent and the Lenders thereto.
Dry well or dry hole
An exploratory, development or extension well that proves to be incapable of producing either oil or natural gas in sufficient quantities to justify completion as an oil or natural gas well.
Enhanced oil recovery (EOR)
The use of any improved recovery method, including injection of CO2 or polymer, to remove additional oil after Secondary Recovery.
Field
An area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations.
Limited Forbearance Agreement
Forbearance Agreement dated as of July 15, 2020, by and among Chaparral Energy, Inc., the subsidiary guarantors party thereto, certain Lenders identified therein, and Royal Bank of Canada, as Administrative Agent and Issuing Bank.
MBbls
One thousand barrels of crude oil, condensate, or natural gas liquids.
MBoe
One thousand barrels of crude oil equivalent.
Mcf
One thousand cubic feet of natural gas.
MMBtu
One million British thermal units.
MMcf
One million cubic feet of natural gas.
6
Natural gas liquids (NGLs)
Those hydrocarbons in natural gas that are separated from the gas as liquids through the process of absorption, condensation, or other methods in gas processing or cycling plants. Natural gas liquids primarily include propane, butane, isobutane, pentane, hexane and natural gasoline.
NYSE
The New York Stock Exchange.
Plan of Reorganization
Plan of Reorganization contemplated by the RSA.
Play
A term describing an area of land following the identification by geologists and geophysicists of reservoirs with potential oil and natural gas reserves.
Prior Chapter 11 Cases
Voluntary petitions seeking relief under the Bankruptcy Code in the Bankruptcy Court for relief under Chapter 11 of the Bankruptcy Code filed on May 9, 2016, by Chaparral Energy, Inc. and its subsidiaries including Chaparral Energy, L.L.C., Chaparral Resources, L.L.C., Chaparral Real Estate, L.L.C., Chaparral CO2 , L.L.C., CEI Pipeline, L.L.C., CEI Acquisition, L.L.C., Green Country Supply, Inc., Chaparral Biofuels, L.L.C., Chaparral Exploration, L.L.C., Roadrunner Drilling, L.L.C.
Prior Effective Date
March 21, 2017, the date of the Company’s emergence from the Prior Chapter 11 Cases.
Prior Reorganization Plan
First Amended Joint Plan of Reorganization under the Prior Chapter 11 Cases, dated as of January 25, 2017.
Proved developed reserves
Reserves that can be expected to be recovered (i) through existing wells with existing equipment and operating methods, or in which the cost of the required equipment is relatively minor compared to the cost of a new well and (ii) through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
Proved reserves
The quantities of oil and natural gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. For additional information, see the SEC’s definition in Rule 1-10(a)(22) of Regulation S-X, a link for which is available at the SEC’s website.
Proved undeveloped reserves
Reserves that are expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major expenditure is required for recompletion.
PV-10 value
When used with respect to oil and natural gas reserves, PV-10 value means the estimated future gross revenue to be generated from the production of proved reserves, net of estimated production and future development costs, excluding escalations of prices and costs based upon future conditions, before income taxes, and without giving effect to non-property-related expenses, discounted to a present value using an annual discount rate of 10%.
RSA
Restructuring Support Agreement, dated as of August 15, 2020, by and among Chaparral Energy, Inc., certain of its subsidiaries and the Consenting Creditors (as defined therein).
SEC
The Securities and Exchange Commission.
Senior Notes
Our 8.75% senior notes due 2023.
Unit
The joining of all or substantially all interests in a reservoir or field, rather than a single tract, to provide for development and operation without regard to separate property interests. Also, the area covered by a unitization agreement.
7
Chaparral Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
PART I — FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
(dollars in thousands, except share data)
June 30, 2020
December 31, 2019
Assets
Current assets:
Cash and cash equivalents
$
56,137
$
22,595
Accounts receivable:
Accounts receivable, gross
43,197
50,744
Allowance for credit losses
(4,215)
(1,097)
Accounts receivable, net
38,982
49,647
Inventories, net
2,456
3,730
Prepaid expenses
4,034
3,471
Derivative instruments
15,197
947
Total current assets
116,806
80,390
Property and equipment, net
7,948
9,217
Right of use assets from operating leases
1,744
2,444
Oil and natural gas properties, using the full cost method:
Proved
1,569,627
1,276,036
Unevaluated (excluded from the amortization base)
142,295
371,229
Accumulated depreciation, depletion, amortization and impairment
(1,246,703)
(754,379)
Total oil and natural gas properties
465,219
892,886
Held for sale assets
111
2,860
Derivative instruments
1,990
—
Other assets
1,349
635
Total assets
$
595,167
$
988,432
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities
$
39,272
$
64,558
Accrued payroll and benefits payable
5,970
10,963
Accrued interest payable
12,309
12,227
Revenue distribution payable
9,322
22,370
Long-term debt and financing leases, classified as current
521,292
594
Derivative instruments
—
11,957
Total current liabilities
588,165
122,669
Long-term debt and financing leases, less current maturities
996
421,392
Derivative instruments
—
5,075
Noncurrent operating lease obligations
234
917
Deferred compensation
419
165
Asset retirement obligations
21,412
21,073
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized, none issued and outstanding
—
—
Common stock, $0.01 par value, 192,130,071 shares authorized; 48,297,606 issued and 47,790,146 outstanding at June 30, 2020 and 48,413,185 issued and 47,942,230 outstanding at December 31, 2019
483
485
Additional paid in capital
977,957
977,174
Treasury stock, at cost, 507,460 and 470,955 shares as of June 30, 2020, and December 31, 2019
(6,128)
(6,110)
Accumulated deficit
(988,371)
(554,408)
Total stockholders’ equity
(16,059)
417,141
Total liabilities and stockholders’ equity
$
595,167
$
988,432
The accompanying notes are an integral part of these consolidated financial statements.
8
Chaparral Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three months ended
Six months ended
(in thousands, except share and per share data)
June 30, 2020
June 30, 2019
June 30, 2020
June 30, 2019
Revenues:
Net commodity sales
$
15,880
$
66,707
$
64,731
$
115,326
Sublease revenue
—
1,198
—
2,396
Total revenues
15,880
67,905
64,731
117,722
Costs and expenses:
Lease operating
5,971
13,371
16,059
25,665
Production taxes
823
3,802
3,573
6,682
Depreciation, depletion and amortization
14,821
30,282
37,833
53,997
Impairment of oil and gas assets
384,639
63,593
456,010
113,315
Impairment of other assets
310
6,407
463
6,407
General and administrative
9,488
7,315
17,556
15,628
Liability management
8,047
—
8,047
—
Litigation loss
4,359
—
4,359
—
Subleases
—
403
—
806
Total costs and expenses
428,458
125,173
543,900
222,500
Operating loss
(412,578)
(57,268)
(479,169)
(104,778)
Non-operating income (expense):
Interest expense
(8,047)
(5,571)
(14,683)
(10,135)
Write-off of Senior Note issuance costs
(4,420)
—
(4,420)
—
Derivative (losses) gains
(13,019)
17,734
65,361
(33,282)
(Loss) gain on sale of assets
(261)
491
(159)
490
Other income (expense), net
35
(302)
281
(288)
Net non-operating income (expense)
(25,712)
12,352
46,380
(43,215)
Reorganization items, net
(436)
(313)
(1,020)
(776)
Loss before income taxes
(438,726)
(45,229)
(433,809)
(148,769)
Income tax expense
—
—
—
—
Net loss
$
(438,726)
$
(45,229)
$
(433,809)
$
(148,769)
Loss per share:
Basic
$
(9.55)
$
(0.99)
$
(9.45)
$
(3.27)
Diluted
$
(9.55)
$
(0.99)
$
(9.45)
$
(3.27)
Weighted average shares used to compute earnings per share:
Basic
45,949,797
45,641,797
45,890,041
45,549,518
Diluted
45,949,797
45,641,797
45,890,041
45,549,518
The accompanying notes are an integral part of these consolidated financial statements.
9
Chaparral Energy, Inc. and Subsidiaries
Consolidated Statement of Stockholders’ Equity
(Unaudited)
Common stock
(dollars in thousands)
Shares outstanding
Amount
Additional paid in capital
Treasury stock
Accumulated deficit
Total
As of December 31, 2018
46,390,513
$
467
$
974,616
$
(4,936)
$
(85,460)
$
884,687
Stock-based compensation
94,078
1
1,423
—
—
1,424
Restricted stock forfeited
(97,113)
(1)
—
—
—
(1)
Repurchase of common stock
(80,422)
—
—
(463)
—
(463)
Net loss
—
—
—
—
(103,540)
(103,540)
Balance at March 31, 2019
46,307,056
$
467
$
976,039
$
(5,399)
$
(189,000)
$
782,107
Stock-based compensation
160,400
1
1,249
—
—
1,250
Repurchase of common stock
(126,231)
—
—
(708)
—
(708)
Issuance of common stock - litigation settlement
76,217
1
323
—
—
324
Net loss
—
—
—
—
(45,229)
(45,229)
Balance at June 30, 2019
46,417,442
$
469
$
977,611
$
(6,107)
$
(234,229)
$
737,744
Common stock
(dollars in thousands)
Shares outstanding
Amount
Additional paid in capital
Treasury stock
Accumulated deficit
Total
As of December 31, 2019
47,942,230
$
485
$
977,174
$
(6,110)
$
(554,408)
$
417,141
Cumulative effect of accounting standard adoption
—
—
—
—
(154)
(154)
Stock-based compensation
—
—
705
—
—
705
Restricted stock forfeited or canceled
(22,494)
(1)
—
—
—
(1)
Repurchase of common stock
(3,856)
—
—
(6)
—
(6)
Net income
—
—
—
—
4,917
4,917
Balance at March 31, 2020
47,915,880
$
484
$
977,879
$
(6,116)
$
(549,645)
$
422,602
Stock-based compensation
—
—
78
—
—
78
Restricted stock forfeited
(93,085)
(1)
—
—
—
(1)
Repurchase of common stock
(32,649)
—
—
(12)
—
(12)
Net loss
—
—
—
—
(438,726)
(438,726)
Balance at June 30, 2020
47,790,146
$
483
$
977,957
$
(6,128)
$
(988,371)
$
(16,059)
The accompanying notes are an integral part of these consolidated financial statements.
10
Chaparral Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
(in thousands)
June 30, 2020
June 30, 2019
Cash flows from operating activities
Net loss
$
(433,809)
$
(148,769)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation, depletion and amortization
37,833
53,997
Derivative (gains) losses
(65,361)
33,282
Impairment of oil and gas assets
456,010
113,315
Impairment of other assets
463
6,407
Write-off of Senior Note issuance costs
4,420
—
Loss (gain) on sale of assets
159
(490)
Other
4,612
1,621
Change in assets and liabilities
Accounts receivable
6,206
13,584
Inventories
747
40
Prepaid expenses and other assets
(1,277)
1,055
Accounts payable and accrued liabilities
(7,217)
(18,389)
Revenue distribution payable
(13,049)
600
Deferred compensation
844
1,852
Net cash (used in) provided by operating activities
(9,419)
58,105
Cash flows from investing activities
Expenditures for property, plant, and equipment and oil and natural gas properties
(86,862)
(146,434)
Proceeds from asset dispositions
3,370
857
Proceeds from derivative instruments, net
32,089
653
Net cash used in investing activities
(51,403)
(144,924)
Cash flows from financing activities
Proceeds from long-term debt
120,000
85,000
Repayment of long-term debt
(25,313)
(343)
Principal payments under financing lease obligations
(212)
(1,445)
Payment of debt issuance costs and other financing fees