falsedesktopGPOR2020-09-30000162828020016083{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "\t\tPage\nPART I FINANCIAL INFORMATION\t\t\nItem 1.\tConsolidated Financial Statements (Unaudited):\t2\n\tConsolidated Balance Sheets at September 30 2020 and December 31 2019\t2\n\tConsolidated Statements of Operations for the Three and Nine Months Ended September 30 2020 and 2019\t3\n\tConsolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months Ended September 30 2020 and 2019\t4\n\tConsolidated Statements of Stockholders' Equity for the Nine Months Ended September 30 2020 and 2019\t5\n\tConsolidated Statements of Cash Flows for the Nine Months Ended September 30 2020 and 2019\t7\n\tNotes to Consolidated Financial Statements\t8\nItem 2.\tManagement's Discussion and Analysis of Financial Conditions and Results of Operations\t42\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t64\nItem 4.\tControls and Procedures\t66\nPART II OTHER INFORMATION\t\t\nItem 1.\tLegal Proceedings\t67\nItem 1A.\tRisk Factors\t69\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t72\nItem 3.\tDefaults Upon Senior Securities\t72\nItem 4.\tMine Safety Disclosures\t72\nItem 5.\tOther Information\t73\nItem 6.\tExhibits\t74\nSignatures\t\t76\n", "q10k_tbl_1": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\n\t(In thousands except share data)\t\nAssets\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t51043\t6060\nAccounts receivable-oil and natural gas sales\t92443\t121210\nAccounts receivable-joint interest and other\t15421\t47975\nPrepaid expenses and other current assets\t51187\t4431\nShort-term derivative instruments\t6245\t126201\nTotal current assets\t216339\t305877\nProperty and equipment:\t\t\nOil and natural gas properties full-cost accounting $1526941 and $1686666 excluded from amortization in 2020 and 2019 respectively\t10786305\t10595735\nOther property and equipment\t95921\t96719\nAccumulated depletion depreciation amortization and impairment\t(8779704)\t(7228660)\nProperty and equipment net\t2102522\t3463794\nOther assets:\t\t\nEquity investments\t16560\t32044\nLong-term derivative instruments\t1098\t563\nDeferred tax asset\t0\t7563\nOperating lease assets\t2012\t14168\nOperating lease assets-related parties\t0\t43270\nOther assets\t37028\t15540\nTotal other assets\t56698\t113148\nTotal assets\t2375559\t3882819\nLiabilities and Stockholders' Equity\t\t\nCurrent liabilities:\t\t\nAccounts payable and accrued liabilities\t295359\t415218\nShort-term derivative instruments\t24164\t303\nCurrent portion of operating lease liabilities\t1757\t13826\nCurrent portion of operating lease liabilities-related parties\t0\t21220\nCurrent maturities of long-term debt\t656\t631\nTotal current liabilities\t321936\t451198\nLong-term derivative instruments\t63803\t53135\nAsset retirement obligation\t62935\t60355\nUncertain tax position liability\t3371\t3127\nNon-current operating lease liabilities\t255\t342\nNon-current operating lease liabilities-related parties\t0\t22050\nLong-term debt net of current maturities\t2068036\t1978020\nTotal liabilities\t2520336\t2568227\nCommitments and contingencies (Note 9)\t\t\nPreferred stock - $0.01 par value; 5.0 million shares authorized (30 thousand authorized as redeemable 12% cumulative preferred stock Series A) and none issued and outstanding\t0\t0\nStockholders' equity:\t\t\nCommon stock - $0.01 par value 200.0 million shares authorized 160.8 million issued and outstanding at September 30 2020 and 159.7 million at December 31 2019\t1607\t1597\nPaid-in capital\t4212241\t4207554\nAccumulated other comprehensive loss\t(51330)\t(46833)\nAccumulated deficit\t(4307295)\t(2847726)\nTotal stockholders' equity\t(144777)\t1314592\nTotal liabilities and stockholders' equity\t2375559\t3882819\n", "q10k_tbl_2": "\tThree months ended September 30\t\tNine months ended September 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nREVENUES:\t\t\t\t\nNatural gas sales\t155163\t269798\t456859\t876411\nOil and condensate sales\t16012\t24550\t47553\t93942\nNatural gas liquid sales\t18824\t20324\t45989\t78136\nNet (loss) gain on natural gas oil and NGL derivatives\t(53823)\t27074\t71414\t178169\nTotal Revenues\t136176\t341746\t621815\t1226658\nOPERATING EXPENSES:\t\t\t\t\nLease operating expenses\t15274\t22473\t46946\t64668\nProduction taxes\t4028\t6565\t12432\t22584\nMidstream gathering and processing expenses\t110567\t135006\t334789\t382643\nDepreciation depletion and amortization\t51551\t163270\t194369\t406654\nImpairment of oil and natural gas properties\t270874\t571442\t1357099\t571442\nGeneral and administrative expenses\t20524\t13198\t46546\t34982\nRestructuring and liability management\t8984\t0\t9601\t0\nAccretion expense\t774\t747\t2270\t3173\nTotal Operating Expenses\t482576\t912701\t2004052\t1486146\nLOSS FROM OPERATIONS\t(346400)\t(570955)\t(1382237)\t(259488)\nOTHER EXPENSE (INCOME):\t\t\t\t\nInterest expense\t34321\t35556\t99677\t107595\nInterest income\t(52)\t(338)\t(282)\t(649)\nGain on debt extinguishment\t0\t(23600)\t(49579)\t(23600)\nLoss from equity method investments net\t153\t43082\t10987\t164391\nOther expense\t141\t3194\t9239\t3757\nTotal Other Expense\t34563\t57894\t70042\t251494\nLOSS BEFORE INCOME TAXES\t(380963)\t(628849)\t(1452279)\t(510982)\nIncome Tax (Benefit) Expense\t0\t(144047)\t7290\t(323378)\nNET LOSS\t(380963)\t(484802)\t(1459569)\t(187604)\nNET LOSS PER COMMON SHARE:\t\t\t\t\nBasic\t(2.37)\t(3.04)\t(9.12)\t(1.17)\nDiluted\t(2.37)\t(3.04)\t(9.12)\t(1.17)\nWeighted average common shares outstanding-Basic\t160683\t159548\t160053\t160554\nWeighted average common shares outstanding-Diluted\t160683\t159548\t160053\t160554\n", "q10k_tbl_3": "\tThree months ended September 30\t\tNine months ended September 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nNet loss\t(380963)\t(484802)\t(1459569)\t(187604)\nForeign currency translation adjustment\t3661\t(2064)\t(4497)\t5347\nOther comprehensive income (loss)\t3661\t(2064)\t(4497)\t5347\nComprehensive loss\t(377302)\t(486866)\t(1464066)\t(182257)\n", "q10k_tbl_4": "\t\t\tPaid-in Capital\tAccumulated Other Comprehensive (Loss) Income\tAccumulated Deficit\tTotal Stockholders' Equity\n\tCommon Stock\t\t\t\n\tShares\tAmount\t\t\n\t(In thousands)\t\t\t\t\t\nBalance at January 1 2020\t159711\t1597\t4207554\t(46833)\t(2847726)\t1314592\nNet Loss\t0\t0\t0\t0\t(517538)\t(517538)\nOther Comprehensive Loss\t0\t0\t0\t(15030)\t0\t(15030)\nStock Compensation\t0\t0\t2104\t0\t0\t2104\nShares Repurchased\t(80)\t(1)\t(78)\t0\t0\t(79)\nIssuance of Restricted Stock\t211\t2\t(2)\t0\t0\t0\nBalance at March 31 2020\t159842\t1598\t4209578\t(61863)\t(3365264)\t784049\nNet Loss\t0\t0\t0\t0\t(561068)\t(561068)\nOther Comprehensive Income\t0\t0\t0\t6872\t0\t6872\nStock Compensation\t0\t0\t1515\t0\t0\t1515\nShares Repurchased\t(27)\t0\t(28)\t0\t0\t(28)\nIssuance of Restricted Stock\t301\t3\t(3)\t0\t0\t0\nBalance at June 30 2020\t160116\t1601\t4211062\t(54991)\t(3926332)\t231340\nNet Loss\t0\t0\t0\t0\t(380963)\t(380963)\nOther Comprehensive Income\t0\t0\t0\t3661\t0\t3661\nStock Compensation\t0\t0\t1314\t0\t0\t1314\nShares Repurchased\t(136)\t(2)\t(127)\t0\t0\t(129)\nIssuance of Restricted Stock\t782\t8\t(8)\t0\t0\t0\nBalance at September 30 2020\t160762\t1607\t4212241\t(51330)\t(4307295)\t(144777)\n", "q10k_tbl_5": "\t\t\tPaid-in Capital\tAccumulated Other Comprehensive (Loss) Income\tAccumulated Deficit\tTotal Stockholders' Equity\n\tCommon Stock\t\t\t\n\tShares\tAmount\t\t\n\t(In thousands)\t\t\t\t\t\nBalance at January 1 2019\t162986\t1630\t4227532\t(56026)\t(845368)\t3327768\nNet Income\t0\t0\t0\t0\t62242\t62242\nOther Comprehensive Income\t0\t0\t0\t3801\t0\t3801\nStock Compensation\t0\t0\t2785\t0\t0\t2785\nShares Repurchased\t(3619)\t(37)\t(28293)\t0\t0\t(28330)\nIssuance of Restricted Stock\t55\t1\t(1)\t0\t0\t0\nBalance at March 31 2019\t159422\t1594\t4202023\t(52225)\t(783126)\t3368266\nNet Income\t0\t0\t0\t0\t234956\t234956\nOther Comprehensive Income\t0\t0\t0\t3610\t0\t3610\nStock Compensation\t0\t0\t2846\t0\t0\t2846\nShares Repurchased\t(297)\t(3)\t(2267)\t0\t0\t(2270)\nIssuance of Restricted Stock\t271\t3\t(3)\t0\t0\t0\nBalance at June 30 2019\t159396\t1594\t4202599\t(48615)\t(548170)\t3607408\nNet Loss\t0\t0\t0\t0\t(484802)\t(484802)\nOther Comprehensive Loss\t0\t0\t0\t(2064)\t0\t(2064)\nStock Compensation\t0\t0\t2651\t0\t0\t2651\nShares Repurchased\t(36)\t0\t(89)\t0\t0\t(89)\nIssuance of Restricted Stock\t349\t3\t(3)\t0\t0\t0\nBalance at September 30 2019\t159709\t1597\t4205158\t(50679)\t(1032972)\t3123104\n", "q10k_tbl_6": "\tNine months ended September 30\t\n\t2020\t2019\n\t(In thousands)\t\nCash flows from operating activities:\t\t\nNet loss\t(1459569)\t(187604)\nAdjustments to reconcile net loss to net cash provided by operating activities:\t\t\nDepletion depreciation and amortization\t194369\t406654\nImpairment of oil and natural gas properties\t1357099\t571442\nLoss from equity investments\t10987\t164532\nGain on debt extinguishment\t(49579)\t(23600)\nNet gain on derivative instruments\t(71414)\t(178169)\nNet cash receipts on settled derivative instruments\t225364\t80744\nDeferred income tax expense (benefit)\t7290\t(323378)\nOther net\t12753\t15242\nChanges in operating assets and liabilities:\t\t\nDecrease in accounts receivable-oil and natural gas sales\t28767\t97543\nDecrease (increase) in accounts receivable-joint interest and other\t32827\t(18830)\n(Increase) decrease in prepaid expenses and other current assets\t(45620)\t4359\n(Decrease) increase in accounts payable and accrued liabilities\t(40552)\t8567\nOther net\t(2721)\t(147)\nNet cash provided by operating activities\t200001\t617355\nCash flows from investing activities:\t\t\nAdditions to oil and natural gas properties\t(337979)\t(646535)\nProceeds from sale of oil and natural gas properties\t46932\t10864\nAdditions to other property and equipment\t(591)\t(4694)\nProceeds from sale of other property and equipment\t942\t204\nContributions to equity method investments\t0\t(432)\nDistributions from equity method investments\t0\t1945\nNet cash used in investing activities\t(290696)\t(638648)\nCash flows from financing activities:\t\t\nPrincipal payments on borrowings\t(372484)\t(550500)\nBorrowings on line of credit\t531857\t640000\nRepurchases of senior notes\t(22827)\t(79480)\nPayments for repurchases of stock under approved stock repurchase program\t0\t(30000)\nOther net\t(868)\t(900)\nNet cash provided by (used in) financing activities\t135678\t(20880)\nNet increase (decrease) in cash cash equivalents and restricted cash\t44983\t(42173)\nCash cash equivalents and restricted cash at beginning of period\t6060\t52297\nCash cash equivalents and restricted cash at end of period\t51043\t10124\nSupplemental disclosure of cash flow information:\t\t\nInterest payments\t73979\t85272\nIncome tax receipts\t0\t(1794)\nSupplemental disclosure of non-cash transactions:\t\t\nCapitalized stock-based compensation\t2189\t3313\nAsset retirement obligation capitalized\t2343\t6846\nAsset retirement obligation removed due to divestiture\t(2033)\t(30035)\nInterest capitalized\t907\t2782\nFair value of contingent consideration asset on date of divestiture\t23090\t1137\nForeign currency translation (loss) gain on equity method investments\t(4497)\t5347\n", "q10k_tbl_7": "\tThree months ended September 30 2019\t\t\n\tAs Reported\tAdjustments\tAs Revised\n\t(In thousands)\t\t\nNatural gas sales\t213227\t56571\t269798\nTotal Revenues\t285175\t56571\t341746\nMidstream gathering and processing expenses\t78435\t56571\t135006\nTotal Operating Expenses(1)\t856130\t56571\t912701\n\tNine months ended September 30 2019\t\t\n\tAs Reported\tAdjustments\tAs Revised\n\t(In thousands)\t\t\nNatural gas sales\t714500\t161911\t876411\nTotal Revenues\t1064747\t161911\t1226658\nMidstream gathering and processing expenses\t220732\t161911\t382643\nTotal Operating Expenses(1)\t1324235\t161911\t1486146\n", "q10k_tbl_8": "\tSeptember 30 2020\tDecember 31 2019\n\t(In thousands)\t\nOil and natural gas properties\t10786305\t10595735\nAccumulated DD&A and impairment\t(8735750)\t(7191957)\nOil and natural gas properties net\t2050555\t3403778\nOther depreciable property and equipment\t91101\t91198\nLand\t4820\t5521\nAccumulated DD&A\t(43954)\t(36703)\nOther property and equipment net\t51967\t60016\nProperty and equipment net\t2102522\t3463794\n", "q10k_tbl_9": "\tSeptember 30 2020\n\t(In thousands)\nUtica\t850643\nSCOOP\t674280\nOther\t2018\n\t1526941\n", "q10k_tbl_10": "\tSeptember 30 2020\tSeptember 30 2019\n\t(In thousands)\t\nAsset retirement obligation beginning of period\t60355\t79952\nLiabilities incurred\t2343\t5769\nLiabilities settled\t0\t(117)\nLiabilities removed due to divestitures\t(2033)\t(30035)\nAccretion expense\t2270\t3173\nRevisions in estimated cash flows\t0\t1077\nAsset retirement obligation as of end of period\t62935\t59819\n", "q10k_tbl_11": "\t\tCarrying value\t\t\t\t(Loss) income from equity method investments\t\t\t\t\t\n\tApproximate ownership %\tSeptember 30 2020\t\tDecember 31 2019\t\tThree months ended September 30\t\t\t\tNine months ended September 30\t\n\t\t\t2020\t\t2019\t\t2020\t\t2019\n\t\t(In thousands)\t\t\t\t\t\t\t\t\t\nInvestment in Grizzly Oil Sands ULC\t24.6%\t16521\t\t21000\t\t(153)\t\t(41)\t\t(341)\t(380)\nInvestment in Mammoth Energy Services Inc.\t21.5%\t0\t\t11005\t\t0\t\t(43041)\t\t(10646)\t(166096)\nInvestment in Windsor Midstream LLC\t22.5%\t39\t\t39\t\t0\t\t0\t\t\t0\nInvestment in Tatex Thailand II LLC\t23.5%\t0\t\t0\t\t0\t\t0\t\t0\t2085\n\t\t16560\t\t32044\t\t(153)\t\t(43082)\t\t(10987)\t(164391)\n", "q10k_tbl_12": "\tSeptember 30 2020\tDecember 31 2019\n\t(In thousands)\t\nCurrent assets\t463853\t421326\nNoncurrent assets\t1086150\t1260075\nCurrent liabilities\t115976\t132569\nNoncurrent liabilities\t161183\t163241\n", "q10k_tbl_13": "\tThree months ended September 30\t\tNine months ended September 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nGross revenue\t70534\t113417\t228026\t557375\nNet (loss) income\t2808\t(35730)\t(97145)\t(15046)\n", "q10k_tbl_14": "\tSeptember 30 2020\tDecember 31 2019\n\t(In thousands)\t\nRevolving credit agreement(1)\t279857\t120000\n6.625% senior unsecured notes due 2023\t324583\t329467\n6.000% senior unsecured notes due 2024\t579568\t603428\n6.375% senior unsecured notes due 2025\t507870\t529525\n6.375% senior unsecured notes due 2026\t374617\t397529\nNet unamortized debt issuance costs(2)\t(19772)\t(23751)\nConstruction loan\t21969\t22453\nLess: current maturities of long term debt\t(656)\t(631)\nDebt reflected as long term\t2068036\t1978020\n", "q10k_tbl_15": "\tNumber of Unvested Restricted Stock Units\tWeighted Average Grant Date Fair Value\tNumber of Unvested Performance Vesting Restricted Stock Units\tWeighted Average Grant Date Fair Value\nUnvested shares as of January 1 2020\t4098318\t4.73\t1783660\t2.96\nGranted\t3069521\t0.85\t0\t0\nVested\t(1294285)\t5.73\t0\t0\nForfeited/canceled\t(4166493)\t1.67\t(943065)\t1.98\nUnvested shares as of September 30 2020\t1707061\t4.73\t840595\t4.07\n", "q10k_tbl_16": "\tThree months ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tLoss\tShares\tPer Share\tLoss\tShares\tPer Share\n\t(In thousands except share data)\t\t\t\t\t\nBasic:\t\t\t\t\t\t\nNet loss\t(380963)\t160682629\t(2.37)\t(484802)\t159548477\t(3.04)\nEffect of dilutive securities:\t\t\t\t\t\t\nStock awards\t0\t0\t\t0\t0\t\nDiluted:\t\t\t\t\t\t\nNet loss\t(380963)\t160682629\t(2.37)\t(484802)\t159548477\t(3.04)\n", "q10k_tbl_17": "\tNine months ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tLoss\tShares\tPer Share\tLoss\tShares\tPer Share\n\t(In thousands except share data)\t\t\t\t\t\nBasic:\t\t\t\t\t\t\nNet loss\t(1459569)\t160053093\t(9.12)\t(187604)\t160553796\t(1.17)\nEffect of dilutive securities:\t\t\t\t\t\t\nStock options and awards\t0\t0\t\t0\t0\t\nDiluted:\t\t\t\t\t\t\nNet loss\t(1459569)\t160053093\t(9.12)\t(187604)\t160553796\t(1.17)\n", "q10k_tbl_18": "\t(MMBtu per day)\nRemaining 2020\t286000\n2021\t183000\n2022\t70000\n2023\t17000\nTotal\t556000\n", "q10k_tbl_19": "\tTotal MMBtu\t(In thousands)\nRemaining 2020\t126960000\t67458\n2021\t510575000\t278805\n2022\t535414000\t288135\n2023\t520114000\t284454\n2024\t493841000\t267077\nThereafter\t3791093000\t2220685\nTotal\t5977997000\t3406614\n", "q10k_tbl_20": "\t(In thousands)\nRemaining 2020\t1875\n2021\t7500\nTotal\t9375\n", "q10k_tbl_21": "\tLocation\tDaily Volume (MMBtu/day)\tWeighted Average Price\n2022\tNYMEX Henry Hub\t628000\t2.90\n2023\tNYMEX Henry Hub\t628000\t2.90\n", "q10k_tbl_22": "\tGulfport Pays\tGulfport Receives\tDaily Volume (MMBtu/day)\tWeighted Average Fixed Spread\nRemaining 2020\tTransco Zone 4\tNYMEX Plus Fixed Spread\t60000\t(0.05)\nRemaining 2020\tFixed Spread\tONEOK Minus NYMEX\t10000\t(0.54)\n", "q10k_tbl_23": "Period\tThreshold(1)\tPayment to be received(2)\nJuly 2020 - June 2021\tGreater than or equal to $60.65\t150000\n\tBetween $52.62 - $60.65\tCalculated Value(3)\n\tLess than or equal to $52.62\t0\n", "q10k_tbl_24": "(1)\tBased on the \"WTI NYMEX + Argus LLS Differential\" as published by Argus Media.\n(2)\tPayment will be assessed monthly from July 2020 through June 2021. If threshold is met payment shall be received within five business days after the end of each calendar month.\n(3)\tIf average daily price as defined in (1) is greater than $52.62 but less than $60.65 payment received will be $150000 multiplied by a fraction the numerator of which is the amount determined by subtracting $52.62 from such average daily price and the denominator of which is $8.03.\n", "q10k_tbl_25": "\tSeptember 30 2020\tDecember 31 2019\n\t(In thousands)\t\nCommodity Contracts:\t\t\nShort-term derivative asset\t6245\t125383\nLong-term derivative asset\t1098\t0\nShort-term derivative liability\t(24164)\t(303)\nLong-term derivative liability\t(63803)\t(53135)\nTotal commodity derivative position\t(80624)\t71945\nContingent consideration arrangement:\t\t\nShort-term derivative asset\t0\t818\nLong-term derivative asset\t0\t563\nTotal contingent consideration derivative position\t0\t1381\nTotal net (liability) asset derivative position\t(80624)\t73326\n", "q10k_tbl_26": "\tNet (loss) gain on derivative instruments\t\t\t\n\tThree months ended September 30\t\tNine months ended September 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nNatural gas derivatives\t(52648)\t11731\t28894\t147774\nOil derivatives\t(782)\t12736\t44155\t24153\nNGL derivatives\t(393)\t3641\t(254)\t7276\nContingent consideration arrangement\t0\t(1034)\t(1381)\t(1034)\nTotal\t(53823)\t27074\t71414\t178169\n", "q10k_tbl_27": "\tAs of September 30 2020\t\t\n\tGross Assets (Liabilities)\tGross Amounts\t\n\tPresented in the\tSubject to Master\tNet\n\tConsolidated Balance Sheets\tNetting Agreements\tAmount\n\t(In thousands)\t\t\nDerivative assets\t7343\t(6948)\t395\nDerivative liabilities\t(87967)\t6948\t(81019)\n", "q10k_tbl_28": "\tAs of December 31 2019\t\t\n\tGross Assets (Liabilities)\tGross Amounts\t\n\tPresented in the\tSubject to Master\tNet\n\tConsolidated Balance Sheets\tNetting Agreements\tAmount\n\t(In thousands)\t\t\nDerivative assets\t126764\t(53438)\t73326\nDerivative liabilities\t(53438)\t53438\t0\n", "q10k_tbl_29": "\tThree months ended September 30 2020\tNine months ended September 30 2020\n\t(in thousands)\t\nReduction in workforce\t1460\t1460\nLiability management\t7524\t8141\nTotal restructuring and liability management\t8984\t9601\n", "q10k_tbl_30": "\tDecember 31 2019\t\t\n\tLevel 1\tLevel 2\tLevel 3\n\t(In thousands)\t\t\nAssets:\t\t\t\nDerivative Instruments\t0\t126764\t0\nLiabilities:\t\t\t\nDerivative Instruments\t0\t53438\t0\n", "q10k_tbl_31": "\t(In thousands)\nRemaining 2020\t1664\n2021\t142\n2022\t115\n2023\t90\n2024\t30\nTotal lease payments\t2041\nLess: Imputed interest\t(29)\nTotal\t2012\n", "q10k_tbl_32": "\tThree months ended September 30\t\tNine months ended September 30\t\n\t2020\t2019\t2020\t2019\n\t(In thousands)\t\t\t\nOperating lease cost\t1692\t4551\t7970\t20835\nOperating lease cost-related party\t0\t5610\t0\t16830\nVariable lease cost\t245\t105\t705\t1065\nVariable lease cost-related party\t0\t5357\t0\t64968\nShort-term lease cost\t2259\t224\t7698\t407\nTotal lease cost(1)\t4196\t15847\t16373\t104105\n", "q10k_tbl_33": "\tNine months ended September 30\t\n\t2020\t2019\nCash paid for amounts included in the measurement of lease liabilities\t(In thousands)\t\nOperating cash flows from operating leases\t109\t146\nInvesting cash flow from operating leases\t9786\t18998\nInvesting cash flow from operating leases-related party\t6800\t78518\n", "q10k_tbl_34": "\tSeptember 30 2020\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantors\tEliminations\tConsolidated\nAssets\t\t\t\t\t\nCurrent assets:\t\t\t\t\t\nCash and cash equivalents\t43774\t2197\t5072\t0\t51043\nAccounts receivable - oil and natural gas sales\t861\t91582\t0\t0\t92443\nAccounts receivable - joint interest and other\t428\t14993\t0\t0\t15421\nAccounts receivable - intercompany\t332011\t73885\t0\t(405896)\t0\nPrepaid expenses and other current assets\t18192\t32919\t76\t0\t51187\nShort-term derivative instruments\t6245\t0\t0\t0\t6245\nTotal current assets\t401511\t215576\t5148\t(405896)\t216339\nProperty and equipment:\t\t\t\t\t\nOil and natural gas properties full-cost accounting\t1248836\t9531593\t6606\t(730)\t10786305\nOther property and equipment\t92551\t51\t3319\t0\t95921\nAccumulated depletion depreciation amortization and impairment\t(1425619)\t(7352069)\t(2016)\t0\t(8779704)\nProperty and equipment net\t(84232)\t2179575\t7909\t(730)\t2102522\nOther assets:\t\t\t\t\t\nEquity investments and investments in subsidiaries\t1802762\t6333\t16521\t(1809056)\t16560\nLong-term derivative instruments\t1098\t0\t0\t0\t1098\nOperating lease assets\t2012\t0\t0\t0\t2012\nOther assets\t28390\t8638\t0\t0\t37028\nTotal other assets\t1834262\t14971\t16521\t(1809056)\t56698\nTotal assets\t2151541\t2410122\t29578\t(2215682)\t2375559\nLiabilities and Stockholders' Equity\t\t\t\t\t\nCurrent liabilities:\t\t\t\t\t\nAccounts payable and accrued liabilities\t59543\t235778\t38\t0\t295359\nAccounts payable - intercompany\t74733\t321373\t9789\t(405895)\t0\nShort-term derivative instruments\t24164\t0\t0\t0\t24164\nCurrent portion of operating lease liabilities\t1757\t0\t0\t0\t1757\nCurrent maturities of long-term debt\t656\t0\t0\t0\t656\nTotal current liabilities\t160853\t557151\t9827\t(405895)\t321936\nLong-term derivative instruments\t63803\t0\t0\t0\t63803\nAsset retirement obligation - long-term\t0\t62935\t0\t0\t62935\nUncertain tax position liability\t3371\t0\t0\t0\t3371\nNon-current operating lease liabilities\t255\t0\t0\t0\t255\nLong-term debt net of current maturities\t2068036\t0\t0\t0\t2068036\nTotal liabilities\t2296318\t620086\t9827\t(405895)\t2520336\nStockholders' equity:\t\t\t\t\t\nCommon stock\t1607\t0\t0\t0\t1607\nPaid-in capital\t4212241\t4291981\t267560\t(4559541)\t4212241\nAccumulated other comprehensive loss\t(51329)\t3\t(48902)\t48898\t(51330)\nAccumulated deficit\t(4307296)\t(2501948)\t(198907)\t2700856\t(4307295)\nTotal stockholders' equity\t(144777)\t1790036\t19751\t(1809787)\t(144777)\nTotal liabilities and stockholders' equity\t2151541\t2410122\t29578\t(2215682)\t2375559\n", "q10k_tbl_35": "\tDecember 31 2019\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantor\tEliminations\tConsolidated\nAssets\t\t\t\t\t\nCurrent assets:\t\t\t\t\t\nCash and cash equivalents\t2768\t3097\t195\t0\t6060\nAccounts receivable - oil and natural gas sales\t859\t120351\t0\t0\t121210\nAccounts receivable - joint interest and other\t5279\t42696\t0\t0\t47975\nAccounts receivable - intercompany\t1065593\t843223\t0\t(1908816)\t0\nPrepaid expenses and other current assets\t4047\t308\t76\t0\t4431\nShort-term derivative instruments\t126201\t0\t0\t0\t126201\nTotal current assets\t1204747\t1009675\t271\t(1908816)\t305877\nProperty and equipment:\t\t\t\t\t\nOil and natural gas properties full-cost accounting\t1314933\t9273681\t7850\t(729)\t10595735\nOther property and equipment\t92650\t50\t4019\t0\t96719\nAccumulated depletion depreciation amortization and impairment\t(1418888)\t(5808254)\t(1518)\t0\t(7228660)\nProperty and equipment net\t(11305)\t3465477\t10351\t(729)\t3463794\nOther assets:\t\t\t\t\t\nEquity investments and investments in subsidiaries\t3064503\t6332\t21000\t(3059791)\t32044\nLong-term derivative instruments\t563\t0\t0\t0\t563\nDeferred tax asset\t7563\t0\t0\t0\t7563\nOperating lease assets\t14168\t0\t0\t0\t14168\nOperating lease assets - related parties\t43270\t0\t0\t0\t43270\nOther assets\t10026\t5514\t0\t0\t15540\nTotal other assets\t3140093\t11846\t21000\t(3059791)\t113148\nTotal assets\t4333535\t4486998\t31622\t(4969336)\t3882819\nLiabilities and Stockholders' Equity\t\t\t\t\t\nCurrent liabilities:\t\t\t\t\t\nAccounts payable and accrued liabilities\t48006\t367088\t124\t0\t415218\nAccounts payable - intercompany\t878283\t1026249\t4285\t(1908817)\t0\nShort-term derivative instruments\t303\t0\t0\t0\t303\nCurrent portion of operating lease liabilities\t13826\t0\t0\t0\t13826\nCurrent portion of operating lease liabilities - related parties\t21220\t0\t0\t0\t21220\nCurrent maturities of long-term debt\t631\t0\t0\t0\t631\nTotal current liabilities\t962269\t1393337\t4409\t(1908817)\t451198\nLong-term derivative instruments\t53135\t0\t0\t0\t53135\nAsset retirement obligation - long-term\t0\t58322\t2033\t0\t60355\nUncertain tax position liability\t3127\t0\t0\t0\t3127\nNon-current operating lease liabilities\t342\t0\t0\t0\t342\nNon-current operating lease liabilities - related parties\t22050\t0\t0\t0\t22050\nLong-term debt net of current maturities\t1978020\t0\t0\t0\t1978020\nTotal liabilities\t3018943\t1451659\t6442\t(1908817)\t2568227\nStockholders' equity:\t\t\t\t\t\nCommon stock\t1597\t0\t0\t0\t1597\nPaid-in capital\t4207554\t4171408\t267557\t(4438965)\t4207554\nAccumulated other comprehensive loss\t(46833)\t0\t(44763)\t44763\t(46833)\nAccumulated deficit\t(2847726)\t(1136069)\t(197614)\t1333683\t(2847726)\nTotal stockholders' equity\t1314592\t3035339\t25180\t(3060519)\t1314592\nTotal liabilities and stockholders' equity\t4333535\t4486998\t31622\t(4969336)\t3882819\n", "q10k_tbl_36": "\tThree months ended September 30 2020\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantors\tEliminations\tConsolidated\nTotal revenues\t(53823)\t189999\t0\t0\t136176\nCosts and expenses:\t\t\t\t\t\nLease operating expenses\t(157)\t15431\t0\t0\t15274\nProduction taxes\t0\t4028\t0\t0\t4028\nMidstream gathering and processing expenses\t0\t110567\t0\t0\t110567\nDepreciation depletion and amortization\t2265\t49120\t166\t0\t51551\nImpairment of oil and natural gas properties\t0\t270874\t0\t0\t270874\nGeneral and administrative expenses\t29454\t(9098)\t168\t0\t20524\nRestructuring and liability management\t8984\t0\t0\t0\t8984\nAccretion expense\t0\t774\t0\t0\t774\nTotal Operating Expenses\t40546\t441696\t334\t0\t482576\nLOSS FROM OPERATIONS\t(94369)\t(251697)\t(334)\t0\t(346400)\nOTHER EXPENSE (INCOME):\t\t\t\t\t\nInterest expense\t34488\t(167)\t0\t0\t34321\nInterest income\t(16)\t(36)\t0\t0\t(52)\nLoss from equity method investments and investments in subsidiaries\t251951\t0\t153\t(251951)\t153\nOther expense (income)\t172\t(31)\t0\t0\t141\nTotal Other Expense (Income)\t286595\t(234)\t153\t(251951)\t34563\nLOSS BEFORE INCOME TAXES\t(380964)\t(251463)\t(487)\t251951\t(380963)\nINCOME TAX EXPENSE\t0\t0\t0\t0\t0\nNET LOSS\t(380964)\t(251463)\t(487)\t251951\t(380963)\n", "q10k_tbl_37": "\tThree months ended September 30 2019\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantor\tEliminations\tConsolidated\nTotal revenues\t27358\t314388\t0\t0\t341746\nCosts and expenses:\t\t\t\t\t\nLease operating expenses\t(231)\t22704\t0\t0\t22473\nProduction taxes\t36\t6529\t0\t0\t6565\nMidstream gathering and processing expenses\t0\t135006\t0\t0\t135006\nDepreciation depletion and amortization\t2686\t160418\t166\t0\t163270\nImpairment of oil and natural gas properties\t0\t571442\t0\t0\t571442\nGeneral and administrative expenses\t25757\t(12675)\t116\t0\t13198\nAccretion expense\t0\t747\t0\t0\t747\nTotal Operating Expenses\t28248\t884171\t282\t0\t912701\nLOSS FROM OPERATIONS\t(890)\t(569783)\t(282)\t0\t(570955)\nOTHER EXPENSE (INCOME):\t\t\t\t\t\nInterest expense\t36566\t(1010)\t0\t0\t35556\nInterest income\t(187)\t(151)\t0\t0\t(338)\nGain on debt extinguishment\t(23600)\t0\t0\t0\t(23600)\nLoss from equity method investments and investments in subsidiaries\t616348\t0\t40\t(573306)\t43082\nOther (income) expense\t(1168)\t3362\t0\t1000\t3194\nTotal Other Expense\t627959\t2201\t40\t(572306)\t57894\nLOSS BEFORE INCOME TAXES\t(628849)\t(571984)\t(322)\t572306\t(628849)\nINCOME TAX BENEFIT\t(144047)\t0\t0\t0\t(144047)\nNET LOSS\t(484802)\t(571984)\t(322)\t572306\t(484802)\n", "q10k_tbl_38": "\tNine months ended September 30 2020\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantors\tEliminations\tConsolidated\nTotal revenues\t71415\t550400\t0\t0\t621815\nCosts and expenses:\t\t\t\t\t\nLease operating expenses\t(157)\t47103\t0\t0\t46946\nProduction taxes\t0\t12432\t0\t0\t12432\nMidstream gathering and processing expenses\t0\t334789\t0\t0\t334789\nDepreciation depletion and amortization\t7155\t186716\t498\t0\t194369\nImpairment of oil and gas properties\t0\t1357099\t0\t0\t1357099\nGeneral and administrative expenses\t75214\t(29122)\t454\t0\t46546\nRestructuring and liability management\t9601\t0\t0\t0\t9601\nAccretion expense\t0\t2270\t0\t0\t2270\nTotal Operating Expenses\t91813\t1911287\t952\t0\t2004052\nLOSS FROM OPERATIONS\t(20398)\t(1360887)\t(952)\t0\t(1382237)\nOTHER EXPENSE (INCOME):\t\t\t\t\t\nInterest expense\t100490\t(813)\t0\t0\t99677\nInterest income\t(103)\t(179)\t0\t0\t(282)\nGain on debt extinguishment\t(49579)\t0\t0\t0\t(49579)\nLoss from equity method investments and investments in subsidiaries\t1377819\t0\t341\t(1367173)\t10987\nOther expense\t3255\t5984\t0\t0\t9239\nTotal Other Expense\t1431882\t4992\t341\t(1367173)\t70042\nLOSS BEFORE INCOME TAXES\t(1452280)\t(1365879)\t(1293)\t1367173\t(1452279)\nINCOME TAX EXPENSE\t7290\t0\t0\t0\t7290\nNET LOSS\t(1459570)\t(1365879)\t(1293)\t1367173\t(1459569)\n", "q10k_tbl_39": "\tNine months ended September 30 2019\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantor\tEliminations\tConsolidated\nTotal revenues\t493895\t732763\t0\t0\t1226658\nCosts and expenses:\t\t\t\t\t\nLease operating expenses\t26918\t37750\t0\t0\t64668\nProduction taxes\t6117\t16467\t0\t0\t22584\nMidstream gathering and processing expenses\t71420\t311223\t0\t0\t382643\nDepreciation depletion and amortization\t201250\t205183\t221\t0\t406654\nImpairment of oil and natural gas properties\t0\t571442\t0\t0\t571442\nGeneral and administrative expenses\t51695\t(16933)\t220\t0\t34982\nAccretion expense\t1389\t1784\t0\t0\t3173\nTotal Operating Expenses\t358789\t1126916\t441\t0\t1486146\nINCOME (LOSS) FROM OPERATIONS\t135106\t(394153)\t(441)\t0\t(259488)\nOTHER EXPENSE (INCOME):\t\t\t\t\t\nInterest expense\t109864\t(2269)\t0\t0\t107595\nInterest income\t(454)\t(195)\t0\t0\t(649)\nGain on debt extinguishment\t(23600)\t0\t0\t0\t(23600)\nLoss from equity method investments and investments in subsidiaries\t560883\t0\t379\t(396871)\t164391\nOther (income) expense\t(605)\t3362\t0\t1000\t3757\nTotal Other Expense\t646088\t898\t379\t(395871)\t251494\nLOSS BEFORE INCOME TAXES\t(510982)\t(395051)\t(820)\t395871\t(510982)\nINCOME TAX BENEFIT\t(323378)\t0\t0\t0\t(323378)\nNET LOSS\t(187604)\t(395051)\t(820)\t395871\t(187604)\n", "q10k_tbl_40": "\tThree months ended September 30 2020\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantors\tEliminations\tConsolidated\nNet loss\t(380964)\t(251463)\t(487)\t251951\t(380963)\nForeign currency translation adjustment\t3661\t0\t3661\t(3661)\t3661\nOther comprehensive loss\t3661\t0\t3661\t(3661)\t3661\nComprehensive loss\t(377303)\t(251463)\t3174\t248290\t(377302)\n", "q10k_tbl_41": "\tThree months ended September 30 2019\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantor\tEliminations\tConsolidated\nNet loss\t(484802)\t(571984)\t(322)\t572306\t(484802)\nForeign currency translation adjustment\t(2064)\t(43)\t(2021)\t2064\t(2064)\nOther comprehensive income\t(2064)\t(43)\t(2021)\t2064\t(2064)\nComprehensive loss\t(486866)\t(572027)\t(2343)\t574370\t(486866)\n", "q10k_tbl_42": "\tNine months ended September 30 2020\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantors\tEliminations\tConsolidated\nNet loss\t(1459570)\t(1365879)\t(1293)\t1367173\t(1459569)\nForeign currency translation adjustment\t(4497)\t(360)\t(4137)\t4497\t(4497)\nOther comprehensive loss\t(4497)\t(360)\t(4137)\t4497\t(4497)\nComprehensive loss\t(1464067)\t(1366239)\t(5430)\t1371670\t(1464066)\n", "q10k_tbl_43": "\tNine months ended September 30 2019\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantor\tEliminations\tConsolidated\nNet loss\t(187604)\t(395051)\t(820)\t395871\t(187604)\nForeign currency translation adjustment\t5347\t112\t5235\t(5347)\t5347\nOther comprehensive income\t5347\t112\t5235\t(5347)\t5347\nComprehensive (loss) income\t(182257)\t(394939)\t4415\t390524\t(182257)\n", "q10k_tbl_44": "\tNine months ended September 30 2020\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantors\tEliminations\tConsolidated\nNet cash provided by (used in) operating activities\t(95023)\t290147\t4442\t435\t200001\nNet cash used in investing activities\t351\t(291047)\t0\t0\t(290696)\nNet cash (used in) provided by financing activities\t135678\t0\t435\t(435)\t135678\nNet (decrease) increase in cash cash equivalents and restricted cash\t41006\t(900)\t4877\t0\t44983\nCash cash equivalents and restricted cash at beginning of period\t2768\t3097\t195\t0\t6060\nCash cash equivalents and restricted cash at end of period\t43774\t2197\t5072\t0\t51043\n", "q10k_tbl_45": "\tNine months ended September 30 2019\t\t\t\t\n\tParent\tGuarantors\tNon-Guarantor\tEliminations\tConsolidated\nNet cash (used in) provided by operating activities\t(7604)\t621511\t3445\t3\t617355\nNet cash provided by (used in) investing activities\t9178\t(644507)\t(3751)\t432\t(638648)\nNet cash (used in) provided by financing activities\t(20880)\t0\t435\t(435)\t(20880)\nNet (decrease) increase in cash cash equivalents and restricted cash\t(19306)\t(22996)\t129\t0\t(42173)\nCash cash equivalents and restricted cash at beginning of period\t25585\t26711\t1\t0\t52297\nCash cash equivalents and restricted cash at end of period\t6279\t3715\t130\t0\t10124\n", "q10k_tbl_46": "\tThree months ended September 30\t\t\t\t\t\n\t2020\t% of Total\t2019\t% of Total\tChange\t% Change\nNatural gas (Mcf/day)\t\t\t\t\t\t\nUtica Shale\t763387\t85%\t1213424\t86%\t(450037)\t(37)%\nSCOOP\t139233\t15%\t200379\t14%\t(61146)\t(31)%\nOther\t40\t-%\t12\t-%\t28\t233%\nTotal\t902660\t\t1413815\t\t(511155)\t(36)%\nOil and condensate (Bbls/day)\t\t\t\t\t\t\nUtica Shale\t1579\t33%\t659\t13%\t920\t140%\nSCOOP\t3204\t66%\t4275\t83%\t(1071)\t(25)%\nOther\t57\t1%\t223\t4%\t(166)\t(74)%\nTotal\t4840\t\t5157\t\t(317)\t(6)%\nNGL (Gal/day)\t\t\t\t\t\t\nUtica Shale\t122521\t29%\t187232\t33%\t(64711)\t(35)%\nSCOOP\t299377\t71%\t388203\t67%\t(88826)\t(23)%\nOther\t78\t-%\t116\t-%\t(38)\t(33)%\nTotal\t421976\t\t575551\t\t(153575)\t(27)%\nCombined (Mcfe/day)\t\t\t\t\t\t\nUtica Shale\t790363\t80%\t1244124\t81%\t(453761)\t(36)%\nSCOOP\t201227\t20%\t281488\t18%\t(80261)\t(29)%\nOther\t393\t-%\t1364\t-%\t(971)\t(71)%\nTotal\t991983\t\t1526976\t\t(534993)\t(35)%\n", "q10k_tbl_47": "\tNine months ended September 30\t\t\t\t\t\n\t2020\t% of Total\t2019\t% of Total\tChange\t% Change\nNatural gas (Mcf/day)\t\t\t\t\t\t\nUtica Shale\t774705\t84%\t1060941\t84%\t(286236)\t(27)%\nSCOOP\t152595\t16%\t198109\t16%\t(45514)\t(23)%\nOther\t44\t-%\t119\t-%\t(75)\t(63)%\nTotal\t927344\t\t1259169\t\t(331825)\t(26)%\nOil and condensate (Bbls/day)\t\t\t\t\t\t\nUtica Shale\t829\t16%\t669\t11%\t160\t24%\nSCOOP\t4185\t82%\t4531\t71%\t(346)\t(8)%\nOther\t73\t2%\t1156\t18%\t(1083)\t(94)%\nTotal\t5087\t\t6356\t\t(1269)\t(20)%\nNGL (Gal/day)\t\t\t\t\t\t\nUtica Shale\t121054\t26%\t224866\t37%\t(103812)\t(46)%\nSCOOP\t343014\t74%\t382920\t63%\t(39906)\t(10)%\nOther\t49\t-%\t162\t-%\t(113)\t(70)%\nTotal\t464117\t\t607948\t\t(143831)\t(24)%\nCombined (Mcfe/day)\t\t\t\t\t\t\nUtica Shale\t796972\t78%\t1097081\t79%\t(300109)\t(27)%\nSCOOP\t226705\t22%\t280000\t20%\t(53295)\t(19)%\nOther\t488\t-%\t7078\t1%\t(6590)\t(93)%\nTotal\t1024165\t\t1384159\t\t(359994)\t(26)%\n", "q10k_tbl_48": "\tThree months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands)\t\t\nNatural gas\t155163\t269798\t(42)%\nOil and condensate\t16012\t24550\t(35)%\nNGL\t18824\t20324\t(7)%\nNatural gas oil and NGL sales\t189999\t314672\t(40)%\n", "q10k_tbl_49": "\tThree months ended September 30\t\n\t2020\t2019\n\t($ In thousands)\t\nNatural gas derivatives - fair value losses\t(84390)\t(62619)\nNatural gas derivatives - settlement gains\t31742\t74350\nTotal (losses) gains on natural gas derivatives\t(52648)\t11731\nOil and condensate derivatives - fair value gains\t723\t10527\nOil and condensate derivatives - settlement (losses) gains\t(1505)\t2209\nTotal (losses) gains on oil and condensate derivatives\t(782)\t12736\nNGL derivatives - fair value losses\t(288)\t(2039)\nNGL derivatives - settlement (losses) gains\t(105)\t5680\nTotal (losses) gains on NGL derivatives\t(393)\t3641\nContingent consideration arrangement - fair value losses\t0\t(1034)\nTotal (losses) gains on natural gas oil and NGL derivatives\t(53823)\t27074\n", "q10k_tbl_50": "\tThree months ended September 30\t\n\t2020\t2019\n\t($ In thousands)\t\nNatural gas sales\t\t\nNatural gas production volumes (MMcf)\t83045\t130071\nTotal natural gas sales\t155163\t269798\nNatural gas sales without the impact of derivatives ($/Mcf)\t1.87\t2.07\nImpact from settled derivatives ($/Mcf)\t0.38\t0.57\nAverage natural gas sales price including settled derivatives ($/Mcf)\t2.25\t2.64\nOil and condensate sales\t\t\nOil and condensate production volumes (MBbls)\t445\t474\nTotal oil and condensate sales\t16012\t24550\nOil and condensate sales without the impact of derivatives ($/Bbl)\t35.96\t51.75\nImpact from settled derivatives ($/Bbl)\t(3.38)\t4.65\nAverage oil and condensate sales price including settled derivatives ($/Bbl)\t32.58\t56.40\nNGL sales\t\t\nNGL production volumes (MGal)\t38822\t52951\nTotal NGL sales\t18824\t20324\nNGL sales without the impact of derivatives ($/Gal)\t0.48\t0.38\nImpact from settled derivatives ($/Gal)\t0\t0.11\nAverage NGL sales price including settled derivatives ($/Gal)\t0.48\t0.49\nNatural gas oil and condensate and NGL sales\t\t\nNatural gas equivalents (MMcfe)\t91262\t140482\nTotal natural gas oil and condensate and NGL sales\t189999\t314672\nNatural gas oil and condensate and NGL sales without the impact of derivatives ($/Mcfe)\t2.08\t2.24\nImpact from settled derivatives ($/Mcfe)\t0.33\t0.58\nAverage natural gas oil and condensate and NGL sales price including settled derivatives ($/Mcfe)\t2.41\t2.82\nProduction Costs:\t\t\nAverage lease operating expenses ($/Mcfe)\t0.17\t0.16\nAverage production taxes ($/Mcfe)\t0.04\t0.05\nAverage midstream gathering and processing ($/Mcfe)\t1.21\t0.96\nTotal lease operating expenses midstream costs and production taxes ($/Mcfe)\t1.42\t1.17\n", "q10k_tbl_51": "\tThree months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nLease operating expenses\t\t\t\nUtica\t12164\t16718\t(27)%\nSCOOP\t3226\t5837\t(45)%\nOther(1)\t(116)\t(82)\t41%\nTotal lease operating expenses\t15274\t22473\t(32)%\nLease operating expenses per Mcfe\t\t\t\nUtica\t0.17\t0.15\t15%\nSCOOP\t0.17\t0.23\t(23)%\nOther(1)\t(3.22)\t(0.66)\t390%\nTotal lease operating expenses per Mcfe\t0.17\t0.16\t5%\n", "q10k_tbl_52": "\tThree months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nProduction taxes\t4028\t6565\t(39)%\nProduction taxes per Mcfe\t0.04\t0.05\t(6)%\n", "q10k_tbl_53": "\tThree months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nMidstream gathering and processing expenses\t110567\t135006\t(18)%\nMidstream gathering and processing expenses per Mcfe\t1.21\t0.96\t26%\n", "q10k_tbl_54": "\tThree months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nDepreciation depletion and amortization\t51551\t163270\t(68)%\nDepreciation depletion and amortization per Mcfe\t0.56\t1.16\t(52)%\n", "q10k_tbl_55": "\tThree months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nLoss from equity method investments net\t153\t43082\t(100)%\n", "q10k_tbl_56": "\tThree months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nGeneral and administrative expenses gross\t29364\t25729\t14%\nReimbursed from third parties\t(2656)\t(2768)\t(4)%\nCapitalized general and administrative expenses\t(6184)\t(9763)\t(37)%\nGeneral and administrative expenses net\t20524\t13198\t56%\nGeneral and administrative expenses net per Mcfe\t0.22\t0.09\t144%\n", "q10k_tbl_57": "\tThree months ended September 30\t\n\t2020\t2019\n\t($ In thousands except per unit)\t\nInterest expense on senior notes\t28134\t31076\nInterest expense on revolving credit agreement\t4280\t3599\nInterest expense on construction loan and other\t459\t262\nCapitalized interest\t(196)\t(1011)\nAmortization of loan costs\t1644\t1630\nTotal interest expense\t34321\t35556\nInterest expense per Mcfe\t0.38\t0.25\nWeighted average debt outstanding under revolving credit facility\t190227\t223098\n", "q10k_tbl_58": "\tNine months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands)\t\t\nNatural gas\t456859\t876411\t(48)%\nOil and condensate\t47553\t93942\t(49)%\nNGL\t45989\t78136\t(41)%\nNatural gas oil and NGL sales\t550401\t1048489\t(48)%\n", "q10k_tbl_59": "\tNine months ended September 30\t\n\t2020\t2019\n\t($ In thousands)\t\nNatural gas derivatives - fair value (losses) gains\t(147661)\t79478\nNatural gas derivatives - settlement gains\t176555\t68296\nTotal gains on natural gas derivatives\t28894\t147774\nOil and condensate derivatives - fair value (losses) gains\t(4289)\t21555\nOil and condensate derivatives - settlement gains\t48444\t2598\nTotal gains on oil and condensate derivatives\t44155\t24153\nNGL derivatives - fair value losses\t(620)\t(2574)\nNGL derivatives - settlement gains\t366\t9850\nTotal (losses) gains on NGL derivatives\t(254)\t7276\nContingent consideration arrangement - fair value losses\t(1381)\t(1034)\nTotal gains on natural gas oil and NGL derivatives\t71414\t178169\n", "q10k_tbl_60": "\tNine months ended September 30\t\n\t2020\t2019\n\t($ In thousands)\t\nNatural gas sales\t\t\nNatural gas production volumes (MMcf)\t254092\t343753\nTotal natural gas sales\t456859\t876411\nNatural gas sales without the impact of derivatives ($/Mcf)\t1.80\t2.55\nImpact from settled derivatives ($/Mcf)\t0.69\t0.20\nAverage natural gas sales price including settled derivatives ($/Mcf)\t2.49\t2.75\nOil and condensate sales\t\t\nOil and condensate production volumes (MBbls)\t1394\t1735\nTotal oil and condensate sales\t47553\t93942\nOil and condensate sales without the impact of derivatives ($/Bbl)\t34.12\t54.13\nImpact from settled derivatives ($/Bbl)(1)\t34.76\t1.50\nAverage oil and condensate sales price including settled derivatives ($/Bbl)(1)\t68.88\t55.63\nNGL sales\t\t\nNGL production volumes (MGal)\t127168\t165970\nTotal NGL sales\t45989\t78136\nNGL sales without the impact of derivatives ($/Gal)\t0.36\t0.47\nImpact from settled derivatives ($/Gal)\t0\t0.06\nAverage NGL sales price including settled derivatives ($/Gal)\t0.36\t0.53\nNatural gas oil and condensate and NGL sales\t\t\nNatural gas equivalents (MMcfe)\t280621\t377875\nTotal natural gas oil and condensate and NGL sales\t550401\t1048489\nNatural gas oil and condensate and NGL sales without the impact of derivatives ($/Mcfe)\t1.96\t2.77\nImpact from settled derivatives ($/Mcfe)\t0.80\t0.21\nAverage natural gas oil and condensate and NGL sales price including settled derivatives ($/Mcfe)\t2.76\t2.98\nProduction Costs:\t\t\nAverage lease operating expenses ($/Mcfe)\t0.17\t0.17\nAverage production taxes ($/Mcfe)\t0.04\t0.06\nAverage midstream gathering and processing ($/Mcfe)\t1.19\t1.01\nTotal lease operating expenses midstream costs and production taxes ($/Mcfe)\t1.40\t1.24\n(1) Includes the impact of early terminated oil swaps during the second quarter of 2020 that resulted in a cash settlement to us of $40.5 million\t\t\n", "q10k_tbl_61": "\tNine months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nLease operating expenses\t\t\t\nUtica\t36344\t42191\t(14)%\nSCOOP\t10546\t13594\t(22)%\nOther(1)\t56\t8883\t(99)%\nTotal lease operating expenses\t46946\t64668\t(27)%\nLease operating expenses per Mcfe\t\t\t\nUtica\t0.17\t0.14\t18%\nSCOOP\t0.17\t0.18\t(5)%\nOther(1)\t0.41\t4.60\t(91)%\nTotal lease operating expenses per Mcfe\t0.17\t0.17\t(2)%\n", "q10k_tbl_62": "\tNine months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nProduction taxes\t12432\t22584\t(45)%\nProduction taxes per Mcfe\t0.04\t0.06\t(26)%\n", "q10k_tbl_63": "\tNine months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nMidstream gathering and processing expenses\t334789\t382643\t(13)%\nMidstream gathering and processing expenses per Mcfe\t1.19\t1.01\t18%\n", "q10k_tbl_64": "\tNine months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nDepreciation depletion and amortization\t194369\t406654\t(52)%\nDepreciation depletion and amortization per Mcfe\t0.69\t1.08\t(36)%\n", "q10k_tbl_65": "\tNine months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nLoss from equity method investments net\t10987\t164391\t(93)%\n", "q10k_tbl_66": "\tNine months ended September 30\t\t\n\t2020\t2019\tchange\n\t($ In thousands except per unit)\t\t\nGeneral and administrative expenses gross\t75053\t69717\t8%\nReimbursed from third parties\t(8731)\t(8435)\t4%\nCapitalized general and administrative expenses\t(19776)\t(26300)\t(25)%\nGeneral and administrative expenses net\t46546\t34982\t33%\nGeneral and administrative expenses net per Mcfe\t0.17\t0.09\t79%\n", "q10k_tbl_67": "\tNine months ended September 30\t\n\t2020\t2019\n\t($ In thousands except per unit)\t\nInterest expense on senior notes\t85433\t95639\nInterest expense on revolving credit agreement\t9305\t9077\nInterest expense on construction loan and other\t1110\t840\nCapitalized interest\t(907)\t(2782)\nAmortization of loan costs\t4736\t4821\nTotal interest expense\t99677\t107595\nInterest expense per Mcfe\t0.36\t0.28\nWeighted average debt outstanding under revolving credit facility\t134967\t156923\n", "q10k_tbl_68": "Natural Gas Derivatives\t\t\t\t\nYear\tType of Derivative Instrument\tIndex\tDaily Volume (MMBtu/day)\tWeighted Average Price ($)\n2020\tSwaps\tNYMEX Henry Hub\t500000\t2.69\n2020\tBasis Swaps\tVarious\t70000\t(0.12)\n2021\tCostless Collars\tNYMEX Henry Hub\t250000\t2.46/2.81\n2022\tSold Call Options\tNYMEX Henry Hub\t628000\t2.90\n2023\tSold Call Options\tNYMEX Henry Hub\t628000\t2.90\nOil Derivatives\t\t\t\t\nYear\tType of Derivative Instrument\tIndex\tDaily Volume (Bbls/day)\tWeighted Average Price ($)\n2020\tSwaps\tNYMEX WTI\t3000\t35.49\nNGL Derivatives\t\t\t\t\nYear\tType of Derivative Instrument\tIndex\tDaily Volume (Bbls/day)\tWeighted Average Price ($)\n2020\tSwaps\tMont Belvieu C3\t1500\t20.27\n", "q10k_tbl_69": "\tNine months ended September 30\t\n\t2020\t2019\n\t(In thousands)\t\nOil and Natural Gas Property Cash Expenditures:\t\t\nDrilling and completion costs\t299896\t585466\nLeasehold acquisitions\t18449\t34924\nOther\t19634\t26145\nTotal oil and natural gas property expenditures\t337979\t646535\nOther Uses of Cash and Cash Equivalents\t\t\nCash paid to repurchase senior notes\t22827\t79480\nCash paid to repurchase common stock under approved stock repurchase program\t0\t30000\nOther\t1459\t6026\nTotal other uses of cash and cash equivalents\t24286\t115506\nTotal uses of cash and cash equivalents\t362265\t762041\n", "q10k_tbl_70": "\tLocation\tDaily Volume (MMBtu/day)\tWeighted Average Price\n2022\tNYMEX Henry Hub\t628000\t2.90\n2023\tNYMEX Henry Hub\t628000\t2.90\n", "q10k_tbl_71": "\tGulfport Pays\tGulfport Receives\tDaily Volume (MMBtu/day)\tWeighted Average Fixed Spread\nRemaining 2020\tTransco Zone 4\tNYMEX Plus Fixed Spread\t60000\t(0.05)\nRemaining 2020\tFixed Spread\tONEOK Minus NYMEX\t10000\t(0.54)\n", "q10k_tbl_72": "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\tApproximate maximum dollar value of shares that may yet be purchased under the plans or programs (2)\nJuly\t0\t0\t0\t370000000\nAugust\t135645\t0.95\t0\t370000000\nSeptember\t0\t0\t0\t370000000\nTotal\t135645\t0.95\t0\t\n", "q10k_tbl_73": "(1)\tDuring the three months ended September 30 2020 we repurchased and canceled 135645 shares of our common stock at a weighted average price of $0.95 to satisfy tax withholding requirements incurred upon the vesting of restricted stock unit awards.\n(2)\tIn January 2019 our board of directors approved a new stock repurchase program to acquire up to $400.0 million of our outstanding common stock within a 24 month period. The program was suspended in the fourth quarter of 2019 and the May 1 2020 amendment to our revolving credit facility prohibits further repurchases.\n", "q10k_tbl_74": "INDEX OF EXHIBITS\t\t\t\t\t\t\n\t\tIncorporated by Reference\t\t\t\t\nExhibit Number\tDescription\tForm\tSEC File Number\tExhibit\tFiling Date\tFiled or Furnished Herewith\n3.1\tRestated Certificate of Incorporation.\t8-K\t000-19514\t3.1\t4/26/2006\t\n3.2\tCertificate of Amendment No. 1 to Restated Certificate of Incorporation.\t10-Q\t000-19514\t3.2\t11/6/2009\t\n3.3\tCertificate of Amendment No. 2 to Restated Certificate of Incorporation.\t8-K\t000-19514\t3.1\t7/23/2013\t\n3.4\tSecond Amended and Restated Bylaws of Gulfport Energy Corporation\t8-K\t000-19514\t3.1\t2/27/2020\t\n3.5\tFirst Amendment to the Second Amended and Restated Bylaws of Gulfport Energy Corporation\t8-K\t001-19514\t3.1\t5/29/2020\t\n3.6\tCertificate of Designation of Series B Junior Participating Preferred Stock of Gulfport Energy Corporation\t8-A\t001-19514\t3.1\t4/30/2020\t\n4.1\tForm of Common Stock certificate.\tSB-2\t333-115396\t4.1\t7/22/2004\t\n4.2\tIndenture dated as of April 21 2015 among the Company the subsidiary guarantors party thereto and Wells Fargo Bank N.A. as trustee (including the form of the Company's 6.625% Senior Notes due 2023).\t8-K\t000-19514\t4.1\t4/21/2015\t\n4.3\tIndenture dated as of October 14 2016 among Gulfport Energy Corporation the subsidiary guarantors party thereto and Wells Fargo Bank N.A. as trustee (including the form of Gulfport Energy Corporation's 6.000% Senior Notes due 2024).\t8-K\t000-19514\t4.1\t10/19/2016\t\n4.4\tIndenture dated as of December 21 2016 among Gulfport Energy Corporation the subsidiary guarantors party thereto and Wells Fargo Bank N.A. as trustee (including the form of Gulfport Energy Corporation's 6.375% Senior Notes due 2025).\t8-K\t000-19514\t4.1\t12/21/2016\t\n4.5\tIndenture dated as of October 11 2017 among Gulfport Energy Corporation the subsidiary guarantors party thereto and Wells Fargo Bank N.A. as trustee (including the form of Gulfport Energy Corporation's 6.375% Senior Notes due 2026).\t8-K\t000-19514\t4.1\t10/11/2017\t\n4.6\tTax Benefits Preservation Plan dated as of April 30 2020 between Gulfport Energy Corporation and Computershare Trust Company N.A. as rights agent (which includes the Form of Rights Certificate as Exhibit B thereto)\t8-A\t001-19514\t4.1\t4/30/2020\t\n", "q10k_tbl_75": "10.1\tSixteenth Amendment to the Amended and Restated Credit Agreement dated as of July 27 2020 between Gulfport Energy Corporation as Borrower the Bank of Nova Scotia as Administrative Agent and the lenders party thereto.\t8-K\t001-19514\t10.1\t7/30/2020\t\n10.2\tFirst Forbearance Agreement and Amendment to Amended and Restated Credit Agreement dated as of October 15 2020 by and among the Gulfport Energy Corporation as Borrower the Bank of Nova Scotia as Administrative Agent and the lender party thereto.\t8-K\t001-19514\t10.1\t10/16/2020\t\n10.3\tSecond Forbearance Agreement and Amendment to Amended and Restated Credit Agreement dated as of October 26 2020 by and among the Gulfport Energy Corporation as Borrower the Bank of Nova Scotia as Administrative Agent and the lender party thereto.\t8-K\t001-19514\t10.1\t10/29/2020\t\n31.1\tCertification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934 as amended.\t\t\t\t\tX\n31.2\tCertification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934 as amended.\t\t\t\t\tX\n32.1\tCertification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934 as amended and Section 1350 of Chapter 63 of Title 18 of the United States Code.\t\t\t\t\tX\n32.2\tCertification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934 as amended and Section 1350 of Chapter 63 of Title 18 of the United States Code.\t\t\t\t\tX\n101.INS\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\t\t\t\t\tX\n101.SCH\tXBRL Taxonomy Extension Schema Document.\t\t\t\t\tX\n101.CAL\tXBRL Taxonomy Extension Calculation Linkbase Document.\t\t\t\t\tX\n101.DEF\tXBRL Taxonomy Extension Definition Linkbase Document.\t\t\t\t\tX\n101.LAB\tXBRL Taxonomy Extension Labels Linkbase Document.\t\t\t\t\tX\n101.PRE\tXBRL Taxonomy Extension Presentation Linkbase Document.\t\t\t\t\tX\n104\tCover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\t\t\t\t\tX\n"}{"bs": "q10k_tbl_1", "is": "q10k_tbl_36", "cf": "q10k_tbl_6"}None
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-19514
Gulfport Energy Corporation
(Exact Name of Registrant As Specified in Its Charter)
Delaware
73-1521290
(State or Other Jurisdiction of Incorporation or Organization)
(IRS Employer Identification Number)
3001 Quail Springs Parkway
Oklahoma City,
Oklahoma
73134
(Address of Principal Executive Offices)
(Zip Code)
(405) 252-4600
(Registrant Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.01 per share
GPOR
Nasdaq Global Select Market
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. Yesý 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 (Section 232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yesý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated filer ¨Accelerated filerý
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 ý
As of November 5, 2020, 160,762,186 shares of the registrant’s common stock were outstanding.
Preferred stock - $0.01 par value; 5.0 million shares authorized (30 thousand authorized as redeemable 12% cumulative preferred stock, Series A), and none issued and outstanding
—
—
Stockholders’ equity:
Common stock - $0.01 par value, 200.0 million shares authorized, 160.8 million issued and outstanding at September 30, 2020 and 159.7 million at December 31, 2019
1,607
1,597
Paid-in capital
4,212,241
4,207,554
Accumulated other comprehensive loss
(51,330)
(46,833)
Accumulated deficit
(4,307,295)
(2,847,726)
Total stockholders’ equity
(144,777)
1,314,592
Total liabilities and stockholders’ equity
$
2,375,559
$
3,882,819
See accompanying notes to consolidated financial statements.
1.BASIS OF PRESENTATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND LIQUIDITY, MANAGEMENT'S PLANS AND GOING CONCERN
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared by Gulfport Energy Corporation (the “Company” or “Gulfport”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods reported in all material respects, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.
The consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes included in the Company’s most recent annual report on Form 10-K. Results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the full year.
Certain reclassifications have been made to prior period financial statements and related disclosures to conform to current period presentation. These reclassifications have no impact on previous reported total assets, total liabilities, net loss or total operating cash flows.
COVID-19
In March 2020, the World Health Organization classified the outbreak of COVID-19 as a pandemic and recommended containment and mitigation measures worldwide. The measures have led to worldwide shutdowns and halting of commercial and interpersonal activity, as governments around the world have imposed regulations in efforts to control the spread of COVID-19 such as shelter-in-place orders, quarantines, executive orders and similar restrictions.
Gulfport remains focused on protecting the health and well-being of its employees and the communities in which it operates while assuring the continuity of its business operations. The Company implemented preventative measures and developed corporate and field response plans to minimize unnecessary risk of exposure and prevent infection. Additionally, the Company has a crisis management team for health, safety and environmental matters and personnel issues, and has established a COVID-19 Response Team to address various impacts of the situation, as they have been developing. Gulfport has modified certain business practices (including remote working for its corporate employees and restricted employee business travel) to conform to government restrictions and best practices encouraged by the Centers for Disease Control and Prevention, the World Health Organization and other governmental and regulatory authorities. In May 2020, the Company began its phased transition back to the office for its corporate employees. As part of this transition, the Company put into place preventative measures to focus on social distancing and minimizing unnecessary risk of exposure. As of the date of this filing, Gulfport has transitioned the vast majority of its employees back to the corporate office; however, the Company continues to provide a balanced work schedule that allows for a significant portion of the work week to be performed remotely. The Company will continue to monitor trends and governmental guidelines and may adjust its return to office plans accordingly to ensure the health and safety of its employees. As a result of its business continuity measures, the Company has not experienced significant disruptions in executing its business operations in 2020.
On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act did not have a material impact on the Company’s consolidated financial statements. Gulfport is closely monitoring the impact of COVID-19 on all aspects of its business and the current commodity price environment and is unable to predict the impact it will have on its future financial position or operating results.
Industry Conditions, Liquidity, Management's Plans and Going Concern
Decreased demand for oil and natural gas as a result of the COVID-19 pandemic has put further downward pressure on commodity pricing. In the current depressed commodity price environment and period of economic uncertainty, the Company has taken the following operational and financial measures in 2020 to improve its balance sheet and preserve liquidity:
•Reduced 2020 capital spending by more than 50% as compared to 2019
•Focused on operational efficiencies to reduce operating costs; including significant improvements in development and completion costs per lateral foot
•Repurchased $73.3 million of unsecured notes at a discount
•Evaluated economics across our portfolio and shut-in certain non-economical production in the second quarter of 2020
•Reduced corporate general and administrative costs significantly through pay reductions, furloughs and reductions in force.
Although management’s actions listed above have helped to improve the Company's liquidity and leverage profile, continued macro headwinds including the depressed state of energy capital markets and the extraordinarily low commodity price environments present significant risks to the Company's ability to fund its operations going forward. Additionally, subsequent to September 30, 2020, on October 8, 2020, the Company's borrowing base under its revolving credit facility was reduced for the second time during 2020. The October redetermination reduced the Company's borrowing base from $700 million to $580 million, thereby significantly reducing available liquidity.
Considering the factors above, there is substantial doubt about the Company’s ability to maintain, repay, refinance or restructure its $2.1 billion of long-term debt. The Company elected not to make an interest payment of $17.4 million due October 15, 2020 on its 6.000% senior unsecured notes maturing 2024 (the “2024 Notes”). The Company elected not to make an interest payment of $10.8 million due November 2, 2020 on its 6.625% senior unsecured notes maturing 2023 (the "2023 Notes"). The elections to defer the interest payments do not constitute an “Event of Default” as defined under the indentures governing the 2024 Notes and 2023 Notes (the “Indentures”) if the interest payments are made within 30 days of the due date. If the Company does not make such interest payments within such 30-day period, there will be an event of default under the Indentures upon expiration of the grace period and there can be no assurance that it will have sufficient funds to pay such interest payments prior to such time.
Additionally, on October 15, 2020, the Company entered into the First Forbearance Agreement and Amendment to the Amended and Restated Credit Agreement (the "First Forbearance Agreement"). Pursuant to the First Forbearance Agreement, the lender parties have agreed to (i) temporarily waive any default in connection with the non-payment of interest on the 2024 Notes within 30 days of becoming due (the “Specified Default”) prior to its occurrence without any further action and (ii) forbear from exercising certain of their default-related rights and remedies against the Company and the other loan parties with respect to any default in connection with the Specified Default, in each case, until the earlier of October 29, 2020 or another event that would trigger the end of the forbearance period. On October 26, 2020, the Company entered into the Second Forbearance Agreement and Amendment to Amended and Restated Credit Agreement (the "Second Forbearance Agreement"), which extends the First Forbearance Agreement. Pursuant to the Second Forbearance Agreement, the lender parties have agreed to (i) temporarily waive any default in connection with the Specified Default prior to its occurrence without any further action, (ii) expand the definition of "Specified Default" to include the failure to make the interest payment on the 2023 Notes within 30 days of becoming due and (iii) extend the agreement to forbear from exercising certain of their default-related rights and remedies against the Company and the other loan parties with respect to any default in connection with the Specified Default, in each case, until the earlier of November 13, 2020 or another event that would trigger the end of the forbearance period.
Moreover, the Company's existing revolving credit facility matures in December 2021 and therefore will become a current liability at year end 2020 unless the Company is able to refinance the credit facility with a new credit facility or other financing. Considering the current state of the first lien market and the Company's elevated leverage profile, there is substantial risk that a refinancing will not be available to the Company on reasonable terms. A current liability under the revolving credit facility at year end 2020 may result in a qualified audit opinion which could result in a default under the terms of the current revolving credit facility.
Failure to meet the Company's obligations under its existing indebtedness or failure to comply with any of its covenants, if not waived, would result in an event of default under such indebtedness and result in the potential acceleration of outstanding indebtedness thereunder and, with respect to the revolving credit facility, the potential foreclosure on the collateral securing such debt, and could cause a cross-default under its other outstanding indebtedness. As a result of these uncertainties and other factors, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern over the next twelve months from the issuance of these financial statements.
The Company has engaged financial and legal advisors to assist with the evaluation of a range of liability management alternatives. Additionally, the Company maintains an active dialogue with its senior lenders and bondholders regarding liability management alternatives to improve its balance sheet. There can be no assurances that the Company will be able to successfully complete a liability management transaction that materially improves the Company’s leverage profile or liquidity position.
The consolidated financial statements (i) have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and other commitments in the normal course of business and (ii) do not include any adjustments to reflect the possible future effects of the uncertainty on the recoverability or classification of recorded asset amounts or the amounts or classifications of liabilities.
Impact on Previously Reported Results
During the third quarter of 2020, the Company identified that certain transportation activities during the three and nine months ended September 30, 2019 were misclassified between "natural gas sales" and "midstream gathering and processing expenses" on its consolidated statements of operations. The Company assessed the materiality of this presentation on prior periods’ consolidated financial statements in accordance with the SEC Staff Accounting Bulletin No. 99, “Materiality”, codified in Accounting Standards Codification (“ASC”) Topic 250, “Accounting Changes and Error Corrections.” Based on this assessment, the Company concluded that the correction is not material to any previously issued financial statements. The correction had no impact on its consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of stockholders' equity or consolidated statements of cash flows. Additionally, the error had no impact on net loss or net loss per share. The Company will conform presentation of previously reported consolidated statements of operations and condensed consolidating statements of operations in future filings. The following tables present the effect of the correction on all affected line items of our previously issued consolidated financial statements of operations for the three and nine months ended September 30, 2019.
Three months ended September 30, 2019
As Reported
Adjustments
As Revised
(In thousands)
Natural gas sales
$
213,227
$
56,571
$
269,798
Total Revenues
$
285,175
$
56,571
$
341,746
Midstream gathering and processing expenses
$
78,435
$
56,571
$
135,006
Total Operating Expenses(1)
$
856,130
$
56,571
$
912,701
Nine months ended September 30, 2019
As Reported
Adjustments
As Revised
(In thousands)
Natural gas sales
$
714,500
$
161,911
$
876,411
Total Revenues
$
1,064,747
$
161,911
$
1,226,658
Midstream gathering and processing expenses
$
220,732
$
161,911
$
382,643
Total Operating Expenses(1)
$
1,324,235
$
161,911
$
1,486,146
(1)
Reflects additional immaterial presentation change made in the fourth quarter of 2019.
On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted the new standard using the prospective transition method, and it did not have a material impact on the Company's consolidated financial statements and related disclosures.
2.PROPERTY AND EQUIPMENT
The major categories of property and equipment and related accumulated depletion, depreciation, amortization ("DD&A") and impairment as of September 30, 2020 and December 31, 2019 are as follows:
September 30, 2020
December 31, 2019
(In thousands)
Oil and natural gas properties
$
10,786,305
$
10,595,735
Accumulated DD&A and impairment
(8,735,750)
(7,191,957)
Oil and natural gas properties, net
2,050,555
3,403,778
Other depreciable property and equipment
91,101
91,198
Land
4,820
5,521
Accumulated DD&A
(43,954)
(36,703)
Other property and equipment, net
51,967
60,016
Property and equipment, net
$
2,102,522
$
3,463,794
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At September 30, 2020, the net book value of the Company's oil and gas properties was above the calculated ceiling primarily as a result of reduced commodity prices for the period leading up to September 30, 2020. As a result, the Company was required to record impairments of its oil and natural gas properties of $270.9 million and $1.4 billion for the three and nine months ended September 30, 2020, respectively. The Company was required to record impairments of its oil and natural gas properties of $571.4 million in each of the three and nine months ended September 30, 2019.
Based on prices for the last nine months and the short-term pricing outlook for the fourth quarter of 2020, recognition of an additional full cost impairment in the fourth quarter of 2020 is possible. The amount of any future impairments is difficult to predict as it depends on future commodity prices, production rates, proved reserves, evaluation of costs excluded from amortization, future development costs and production costs. Any future full cost impairments are not expected to have an impact to the Company's future cash flows or liquidity.
General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other costs associated with overseeing exploration and development activities. All general and administrative costs not directly associated with exploration and development activities are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $6.2 million and $19.8 million for the three and nine months ended September 30, 2020, respectively, and $9.8 million and $26.3 million for the three and nine months ended September 30, 2019, respectively.