falsedesktopQEP2020-09-30000110882720000080{"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☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "\t\t\tPage\nPART I. FINANCIAL INFORMATION\t\t\t2\n\tITEM 1.\tFINANCIAL STATEMENTS\t2\n\t\tUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 2020 AND 2019\t2\n\t\tUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 2020 AND 2019\t3\n\t\tUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AT SEPTEMBER 30 2020 AND DECEMBER 31 2019\t4\n\t\tUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 2020 AND 2019\t5\n\t\tUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30 2020 AND 2019\t6\n\t\tUNAUDITED NOTES ACCOMPANYING THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\t7\n\tITEM 2.\tMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS\t26\n\tITEM 3.\tQUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\t48\n\tITEM 4.\tCONTROLS AND PROCEDURES\t52\nPART II. OTHER INFORMATION\t\t\t52\n\tITEM 1.\tLEGAL PROCEEDINGS\t52\n\tITEM 1A.\tRISK FACTORS\t53\n\tITEM 2.\tUNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS\t58\n\tITEM 3.\tDEFAULTS UPON SENIOR SECURITIES\t58\n\tITEM 4.\tMINE SAFETY DISCLOSURES\t58\n\tITEM 5.\tOTHER INFORMATION\t58\n\tITEM 6.\tEXHIBITS\t59\nSIGNATURES\t\t\t60\n", "q10k_tbl_2": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nREVENUES\t(in millions except per share amounts)\t\t\t\nOil and condensate gas and NGL sales\t175.8\t305.6\t515.9\t875.8\nOther revenues\t1.4\t1.8\t1.6\t7.1\nPurchased oil and gas sales\t0.6\t0.1\t6.7\t1.4\nTotal Revenues\t177.8\t307.5\t524.2\t884.3\nOPERATING EXPENSES\t\t\t\t\nPurchased oil and gas expense\t0.8\t0.1\t8.2\t1.5\nLease operating expense\t35.5\t38.3\t104.5\t135.5\nTransportation and processing costs\t12.4\t18.0\t38.2\t38.8\nGathering and other expense\t3.4\t3.1\t8.9\t9.9\nGeneral and administrative\t20.9\t29.6\t63.1\t124.4\nProduction and property taxes\t14.0\t20.0\t42.3\t67.6\nDepreciation depletion and amortization\t133.0\t144.2\t424.6\t395.5\nImpairment\t0\t0\t0\t5.0\nTotal Operating Expenses\t220.0\t253.3\t689.8\t778.2\nNet gain (loss) from asset sales inclusive of restructuring costs\t0.1\t(2.1)\t3.8\t2.5\nOPERATING INCOME (LOSS)\t(42.1)\t52.1\t(161.8)\t108.6\nRealized and unrealized gains (losses) on derivative contracts\t(34.2)\t87.4\t317.0\t(55.8)\nInterest and other income (expense)\t7.7\t0.9\t7.7\t4.6\nGain (loss) from early extinguishment of debt\t(7.4)\t0\t18.2\t0\nInterest expense\t(28.4)\t(32.8)\t(89.8)\t(100.0)\nINCOME (LOSS) BEFORE INCOME TAXES\t(104.4)\t107.6\t91.3\t(42.6)\nIncome tax (provision) benefit\t55.2\t(26.6)\t42.5\t55.7\nNET INCOME (LOSS)\t(49.2)\t81.0\t133.8\t13.1\nEarnings (loss) per common share\t\t\t\t\nBasic\t(0.20)\t0.34\t0.55\t0.06\nDiluted\t(0.20)\t0.34\t0.55\t0.06\nWeighted-average common shares outstanding\t\t\t\t\nUsed in basic calculation\t242.3\t237.9\t241.2\t237.7\nUsed in diluted calculation\t242.3\t237.9\t241.2\t237.7\n", "q10k_tbl_3": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(in millions)\t\t\t\nNet income (loss)\t(49.2)\t81.0\t133.8\t13.1\nOther comprehensive income (loss) net of tax:\t\t\t\t\nPension and other postretirement plans adjustments:\t\t\t\t\nAmortization of prior service costs\t0\t0.1\t0\t0.2\nAmortization of actuarial losses(1)\t0.1\t0\t0.5\t0.1\nNet curtailment(2)\t0\t0\t0\t(0.3)\nOther comprehensive income (loss)\t0.1\t0.1\t0.5\t0\nComprehensive income (loss)\t(49.1)\t81.1\t134.3\t13.1\n", "q10k_tbl_4": "\tSeptember 30 2020\tDecember 31 2019\nASSETS\t(in millions)\t\nCurrent Assets\t\t\nCash and cash equivalents\t9.5\t166.3\nAccounts receivable net\t84.1\t108.4\nIncome tax receivable\t50.5\t37.4\nFair value of derivative contracts\t77.5\t1.5\nPrepaid expenses and other current assets\t8.5\t11.6\nTotal Current Assets\t230.1\t325.2\nProperty Plant and Equipment (successful efforts method for oil and gas properties)\t\t\nProved properties\t9812.9\t9574.9\nUnproved properties\t544.2\t599.1\nGathering and other\t165.5\t164.2\nMaterials and supplies\t16.9\t15.6\nTotal Property Plant and Equipment\t10539.5\t10353.8\nLess Accumulated Depreciation Depletion and Amortization\t\t\nExploration and production\t5603.6\t5250.5\nGathering and other\t68.5\t61.0\nTotal Accumulated Depreciation Depletion and Amortization\t5672.1\t5311.5\nNet Property Plant and Equipment\t4867.4\t5042.3\nFair value of derivative contracts\t0.8\t0.2\nOperating lease right-of-use assets net\t52.7\t56.8\nOther noncurrent assets\t85.7\t53.3\nTOTAL ASSETS\t5236.7\t5477.8\nLIABILITIES AND EQUITY\t\t\nCurrent Liabilities\t\t\nChecks outstanding in excess of cash balances\t0\t18.3\nAccounts payable and accrued expenses\t164.5\t227.2\nProduction and property taxes\t10.7\t18.9\nInterest payable\t29.1\t31.0\nFair value of derivative contracts\t4.7\t18.7\nCurrent operating lease liabilities\t22.6\t18.0\nAsset retirement obligations\t7.1\t6.0\nTotal Current Liabilities\t238.7\t338.1\nLong-term debt\t1590.4\t2015.6\nDeferred income taxes\t440.0\t274.5\nAsset retirement obligations\t94.8\t94.9\nFair value of derivative contracts\t6.7\t0.5\nOperating lease liabilities\t35.4\t44.8\nOther long-term liabilities\t32.1\t48.8\nCommitments and contingencies (Note 11)\t\t\nEQUITY\t\t\nCommon stock - par value $0.01 per share; 500.0 million shares authorized; 247.2 million and 242.1 million shares issued respectively\t2.5\t2.4\nTreasury stock - 5.0 million and 4.4 million shares respectively\t(56.7)\t(55.4)\nAdditional paid-in capital\t1466.2\t1456.5\nRetained earnings\t1398.6\t1269.6\nAccumulated other comprehensive income (loss)\t(12.0)\t(12.5)\nTotal Common Shareholders' Equity\t2798.6\t2660.6\nTOTAL LIABILITIES AND EQUITY\t5236.7\t5477.8\n", "q10k_tbl_5": "\tCommon Stock\t\tTreasury Stock\t\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)\tTotal\n\tShares\tAmount\tShares\tAmount\t\t\n\t(in millions)\t\t\t\t\t\t\t\nBalance at June 30 2020\t247.2\t2.5\t(4.9)\t(56.6)\t1463.3\t1447.8\t(12.1)\t2844.9\nNet income (loss)\t0\t0\t0\t0\t0\t(49.2)\t0\t(49.2)\nShare-based compensation\t0\t0\t(0.1)\t(0.1)\t2.9\t0\t0\t2.8\nChange in pension and postretirement liability net of tax\t0\t0\t0\t0\t0\t0\t0.1\t0.1\nBalance at September 30 2020\t247.2\t2.5\t(5.0)\t(56.7)\t1466.2\t1398.6\t(12.0)\t2798.6\n", "q10k_tbl_6": "Balance at December 31 2019\t242.1\t2.4\t(4.4)\t(55.4)\t1456.5\t1269.6\t(12.5)\t2660.6\nNet income (loss)\t0\t0\t0\t0\t0\t133.8\t0\t133.8\nCash dividends paid $0.02 per share\t0\t0\t0\t0\t0\t(4.8)\t0\t(4.8)\nShare-based compensation\t5.1\t0.1\t(0.6)\t(1.3)\t9.7\t0\t0\t8.5\nChange in pension and postretirement liability net of tax\t0\t0\t0\t0\t0\t0\t0.5\t0.5\nBalance at September 30 2020\t247.2\t2.5\t(5.0)\t(56.7)\t1466.2\t1398.6\t(12.0)\t2798.6\n", "q10k_tbl_7": "Balance at June 30 2019\t242.0\t2.4\t(4.1)\t(53.6)\t1446.3\t1308.6\t(14.4)\t2689.3\nNet income (loss)\t0\t0\t0\t0\t0\t81.0\t0\t81.0\nCash dividends paid $0.02 per share\t0\t0\t0\t0\t0\t(4.8)\t0\t(4.8)\nShare-based compensation\t0.1\t0\t(0.2)\t(1.2)\t5.6\t0\t0\t4.4\nChange in pension and postretirement liability net of tax\t0\t0\t0\t0\t0\t0\t0.1\t0.1\nBalance at September 30 2019\t242.1\t2.4\t(4.3)\t(54.8)\t1451.9\t1384.8\t(14.3)\t2770.0\n", "q10k_tbl_8": "Balance at December 31 2018\t239.8\t2.4\t(3.1)\t(45.6)\t1431.9\t1376.5\t(14.3)\t2750.9\nNet income (loss)\t0\t0\t0\t0\t0\t13.1\t0\t13.1\nCash dividends paid $0.02 per share\t0\t0\t0\t0\t0\t(4.8)\t0\t(4.8)\nShare-based compensation\t2.3\t0\t(1.2)\t(9.2)\t20.0\t0\t0\t10.8\nChange in pension and postretirement liability net of tax\t0\t0\t0\t0\t0\t0\t0\t0\nBalance at September 30 2019\t242.1\t2.4\t(4.3)\t(54.8)\t1451.9\t1384.8\t(14.3)\t2770.0\n", "q10k_tbl_9": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nOPERATING ACTIVITIES\t(in millions)\t\nNet income (loss)\t133.8\t13.1\nAdjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:\t\t\nDepreciation depletion and amortization\t424.6\t395.5\nDeferred income taxes (benefit)\t165.3\t(61.2)\nImpairment\t0\t5.0\nNon-cash share-based compensation\t9.3\t16.2\nNon-cash (gain) loss from warehouse inventory\t0.7\t0\nAmortization of debt issuance costs and discounts\t3.7\t4.0\nNet (gain) loss from asset sales inclusive of restructuring costs\t(3.8)\t(2.5)\nGain from early extinguishment of debt\t(18.2)\t0\nUnrealized (gains) losses on marketable securities\t(1.1)\t(2.8)\nUnrealized (gains) losses on derivative contracts\t(84.4)\t29.0\nChanges in operating assets and liabilities\t(75.9)\t(54.3)\nNet Cash Provided by (Used in) Operating Activities\t554.0\t342.0\nINVESTING ACTIVITIES\t\t\nProperty acquisitions\t(4.1)\t(3.6)\nExpenditures for property plant and equipment including exploratory well expense\t(284.5)\t(465.2)\nProceeds from disposition of assets\t13.4\t676.5\nNet Cash Provided by (Used in) Investing Activities\t(275.2)\t207.7\nFINANCING ACTIVITIES\t\t\nChecks outstanding in excess of cash balances\t(18.3)\t(13.9)\nLong-term debt issuance costs paid\t(0.5)\t0\nRepurchases and redemption of senior notes\t(410.3)\t0\nProceeds from credit facility\t21.1\t56.0\nRepayments of credit facility\t(21.1)\t(486.0)\nTreasury stock repurchases\t(0.8)\t(7.0)\nDividends paid\t(4.8)\t(4.8)\nNet Cash Provided by (Used in) Financing Activities\t(434.7)\t(455.7)\nChange in cash cash equivalents and restricted cash(1)\t(155.9)\t94.0\nBeginning cash cash equivalents and restricted cash(1)\t196.4\t28.1\nEnding cash cash equivalents and restricted cash(1)\t40.5\t122.1\nSupplemental Disclosures:\t\t\nCash paid for interest net of capitalized interest\t88.2\t94.1\nCash paid (refunds received) for income taxes net\t(164.0)\t5.0\nCash paid for amounts included in the measurement of lease liabilities\t19.0\t14.5\nOther Non-cash Activities:\t\t\nRight-of-use assets obtained in exchange for operating lease obligations\t9.3\t11.1\nNon-cash Investing Activities:\t\t\nCapital expenditure accruals as of September 30 2020 and 2019\t32.3\t55.3\n", "q10k_tbl_10": "\tSeptember 30\t\n\t2020\t2019\n\t(in millions)\t\nCash and cash equivalents\t9.5\t92.4\nRestricted cash(1)\t31.0\t29.7\nTotal cash cash equivalents and restricted cash shown in the statements of cash flows\t40.5\t122.1\n", "q10k_tbl_11": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t\t2020\t\t\t\t2019\t\t\t\t\t\t\t\t\n\t(in millions)\t\t\t\nDeferred compensation mark-to-market adjustments\t0.5\t(3.1)\t\t(2.7)\t\t\t\t0.6\t\t\t\t\t\t\t\t\nUnrealized (gain)/loss on marketable securities\t(1.1)\t(0.1)\t\t(1.1)\t\t\t\t(2.8)\t\t\t\t\t\t\t\t\n", "q10k_tbl_12": "\tOil and condensate sales\tGas sales\tNGL sales\tTransportation and processing costs included in revenue\tOil and condensate gas and NGL sales as reported\n\t(in millions)\t\t\t\t\n\tThree Months Ended September 30 2020\t\t\t\t\nNorthern Region\t\t\t\t\t\nWilliston Basin\t58.6\t3.3\t4.1\t(9.4)\t56.6\nOther Northern\t0\t0\t0\t0\t0\nSouthern Region\t\t\t\t\t\nPermian Basin\t110.7\t6.0\t9.1\t(6.6)\t119.2\nOther Southern\t0\t0\t0\t0\t0\nTotal oil and condensate gas and NGL sales\t169.3\t9.3\t13.2\t(16.0)\t175.8\n\tThree Months Ended September 30 2019\t\t\t\t\nNorthern Region\t\t\t\t\t\nWilliston Basin\t88.9\t5.5\t2.4\t(7.0)\t89.8\nOther Northern\t0\t0.1\t0.1\t0\t0.2\nSouthern Region\t\t\t\t\t\nPermian Basin\t209.9\t3.4\t9.4\t(7.2)\t215.5\nOther Southern\t0\t0.1\t0\t0\t0.1\nTotal oil and condensate gas and NGL sales\t298.8\t9.1\t11.9\t(14.2)\t305.6\n", "q10k_tbl_13": "\tOil and condensate sales\tGas sales\tNGL sales\tTransportation and processing costs included in revenue\tOil and condensate gas and NGL sales as reported\n\t(in millions)\t\t\t\t\n\tNine Months Ended September 30 2020\t\t\t\t\nNorthern Region\t\t\t\t\t\nWilliston Basin\t173.2\t10.9\t8.1\t(27.3)\t164.9\nOther Northern\t0.1\t1.2\t0\t0\t1.3\nSouthern Region\t\t\t\t\t\nPermian Basin\t334.5\t12.5\t21.0\t(18.3)\t349.7\nOther Southern\t0\t0\t0\t0\t0\nTotal oil and condensate gas and NGL sales\t507.8\t24.6\t29.1\t(45.6)\t515.9\n\tNine Months Ended September 30 2019\t\t\t\t\nNorthern Region\t\t\t\t\t\nWilliston Basin\t306.3\t25.5\t15.6\t(26.0)\t321.4\nOther Northern\t0.9\t0.4\t0.1\t0\t1.4\nSouthern Region\t\t\t\t\t\nPermian Basin\t526.7\t7.4\t27.4\t(14.7)\t546.8\nOther Southern\t0.1\t6.1\t0\t0\t6.2\nTotal oil and condensate gas and NGL sales\t834.0\t39.4\t43.1\t(40.7)\t875.8\n", "q10k_tbl_14": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\n\t(in millions)\t\t\t\nWeighted-average basic common shares outstanding\t242.3\t237.9\t241.2\t237.7\nPotential number of shares issuable upon exercise of in-the-money stock options under the Long-Term Stock Incentive Plan\t0\t0\t0\t0\nAverage diluted common shares outstanding\t242.3\t237.9\t241.2\t237.7\n", "q10k_tbl_15": "\tAsset Retirement Obligations\t\n\tSeptember 30\tDecember 31\n\t2020\t2019\nBalance Sheet line item\t(in millions)\t\nCurrent:\t\t\nAsset retirement obligations current liability\t7.1\t6.0\nLong-term:\t\t\nAsset retirement obligations\t94.8\t94.9\nTotal ARO Liability\t101.9\t100.9\n", "q10k_tbl_16": "\tAsset Retirement Obligations\n\t(in millions)\nARO liability at January 1 2020\t100.9\nAccretion\t2.9\nAdditions\t1.1\nRevisions\t(0.5)\nLiabilities related to assets sold\t(1.4)\nLiabilities settled\t(1.1)\nARO liability at September 30 2020\t101.9\n", "q10k_tbl_17": "\tFair Value Measurements\t\t\t\t\n\tGross Amounts of Assets and Liabilities\t\t\tNetting Adjustments(1)\tNet Amounts Presented on the Balance Sheets\n\tLevel 1\tLevel 2\tLevel 3\t\n\t(in millions)\t\t\t\t\nFinancial Assets\tSeptember 30 2020\t\t\t\t\nFair value of derivative contracts - short-term\t0\t89.0\t0\t(11.5)\t77.5\nFair value of derivative contracts - long-term\t0\t0.9\t0\t(0.1)\t0.8\nFair value of Rabbi Trust marketable securities\t23.6\t0\t0\t0\t23.6\nTotal financial assets\t23.6\t89.9\t0\t(11.6)\t101.9\nFinancial Liabilities\t\t\t\t\t\nFair value of derivative contracts - short-term\t0\t16.2\t0\t(11.5)\t4.7\nFair value of derivative contracts - long-term\t0\t6.8\t0\t(0.1)\t6.7\nFair value of Wrap Plan obligations\t25.0\t0\t0\t0\t25.0\nTotal financial liabilities\t25.0\t23.0\t0\t(11.6)\t36.4\n\tDecember 31 2019\t\t\t\t\nFinancial Assets\t\t\t\t\t\nFair value of derivative contracts - short-term\t0\t1.5\t0\t0\t1.5\nFair value of derivative contracts - long-term\t0\t0.2\t0\t0\t0.2\nFair value of Rabbi Trust marketable securities\t23.1\t0\t0\t0\t23.1\nTotal financial assets\t23.1\t1.7\t0\t0\t24.8\nFinancial Liabilities\t\t\t\t\t\nFair value of derivative contracts - short-term\t0\t18.7\t0\t0\t18.7\nFair value of derivative contracts - long-term\t0\t0.5\t0\t0\t0.5\nFair value of Wrap Plan obligations\t26.8\t0\t0\t0\t26.8\nTotal financial liabilities\t26.8\t19.2\t0\t0\t46.0\n", "q10k_tbl_18": "\tCarrying Amount\tLevel 1 Fair Value\tCarrying Amount\tLevel 1 Fair Value\n\tSeptember 30 2020\t\tDecember 31 2019\t\nFinancial Liabilities\t(in millions)\t\t\t\nTotal debt outstanding\t1590.4\t1128.4\t2015.6\t2029.4\n", "q10k_tbl_19": "Year\tIndex\tTotal Volumes\tAverage Swap Price per Unit\n\t\t(in millions)\t\nOil sales\t\t(bbls)\t($/bbl)\n2020\tNYMEX WTI\t3.9\t57.60\n2020\tArgus WTI Midland\t0.4\t57.30\n2021 (January - June)\tNYMEX WTI\t5.0\t44.78\n2021 (July - December)\tNYMEX WTI\t5.0\t42.22\nGas sales\t\t(MMbtu)\t($/MMbtu)\n2020\tIF Waha(1)\t3.7\t0.97\n2020\tNYMEX HH\t2.8\t2.20\n2021\tIF Waha(1)\t18.2\t1.92\n2021\tNYMEX HH\t9.1\t2.44\n", "q10k_tbl_20": "\tThree Months Ended\t\t\t\tNine Months Ended\t\t\nDerivative contracts\tSeptember 30\t\t\t\tSeptember 30\t\t\n2020\t\t2019\t\t2020\t\t2019(1)\nRealized gains (losses) on commodity derivative contracts\t(in millions)\t\t\t\t\t\t\nOil derivative contracts\t70.3\t\t(4.9)\t\t233.1\t\t(23.9)\nGas derivative contracts\t(0.7)\t\t0\t\t(0.5)\t\t(2.9)\nRealized gains (losses) on commodity derivative contracts\t69.6\t\t(4.9)\t\t232.6\t\t(26.8)\nUnrealized gains (losses) on commodity derivative contracts\t\t\t\t\t\t\t\nOil derivative contracts\t(91.7)\t\t92.3\t\t105.0\t\t(30.5)\nGas derivative contracts\t(12.1)\t\t0\t\t(20.6)\t\t(0.3)\nUnrealized gains (losses) on commodity derivative contracts\t(103.8)\t\t92.3\t\t84.4\t\t(30.8)\nTotal realized and unrealized gains (losses) on commodity derivative contracts related to production\t(34.2)\t\t87.4\t\t317.0\t\t(57.6)\nDerivatives associated with Haynesville Divestiture\t\t\t\t\t\t\t\nUnrealized gains (losses) on commodity derivative contracts\t\t\t\t\t\t\t\nGas derivative contracts\t0\t\t0\t\t0\t\t1.8\nUnrealized gains (losses) on commodity derivative contracts related to divestitures (1)\t0\t\t0\t\t0\t\t1.8\nTotal realized and unrealized gains (losses) on commodity derivative contracts\t(34.2)\t\t87.4\t\t317.0\t\t(55.8)\n", "q10k_tbl_21": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nLease Cost included in the Condensed Consolidated Balance Sheets\t(in millions)\t\t\t\nProperty Plant and Equipment acquisitions(1)\t2.1\t2.5\t9.2\t11.3\n\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nLease Cost included in the Condensed Consolidated Statement of Operations\t(in millions)\t\t\t\nLease operating expense\t3.4\t2.9\t8.8\t9.0\nGathering and other expense\t1.9\t2.0\t5.7\t5.8\nGeneral and administrative\t1.5\t1.3\t4.5\t4.5\nTotal lease cost\t8.9\t8.7\t28.2\t30.6\n", "q10k_tbl_22": "\tSeptember 30 2020\tSeptember 30 2019\nWeighted-average remaining lease term (years)\t3.5\t3.4\nWeighted-average discount rate\t7.2%\t7.7%\n", "q10k_tbl_23": "\tSeptember 30 2020\tDecember 31 2019\nYear\t(in millions)\t\n2020\t6.8\t22.3\n2021\t25.0\t20.4\n2022\t17.0\t15.9\n2023\t11.4\t10.6\n2024\t2.3\t1.4\nAfter 2024\t2.6\t2.4\nLess: Interest(1)\t(7.1)\t(10.2)\nPresent value of lease liabilities(2)\t58.0\t62.8\n", "q10k_tbl_24": "\tTotal recognized\tRecognized in \"General and administrative\"\tRecognized in \"Net (gain) loss from asset sales inclusive of restructuring costs\"\tRecognized in \"Interest and other (income) expense\"\n\t(in millions)\t\t\t\n\tNine Months Ended September 30 2020\t\t\t\nTermination benefits\t1.0\t1.0\t0\t0\nAccelerated share-based compensation\t0.5\t0.5\t0\t0\nRetention expense (including share-based compensation)\t0.4\t0.4\t0\t0\nTotal restructuring costs\t1.9\t1.9\t0\t0\n\tThree Months Ended September 30 2019\t\t\t\nTermination benefits\t4.3\t4.3\t0\t0\nAccelerated share-based compensation\t1.6\t1.6\t0\t0\nRetention expense (including share-based compensation)\t4.5\t4.5\t0\t0\nPension and Medical Plan curtailment\t0\t0\t0\t0\nTotal restructuring costs\t10.4\t10.4\t0\t0\n\tNine Months Ended September 30 2019\t\t\t\nTermination benefits\t11.0\t10.9\t0.1\t0\nOffice lease termination costs\t0.6\t0.6\t0\t0\nAccelerated share-based compensation\t11.3\t9.8\t1.5\t0\nRetention expense (including share-based compensation)\t15.4\t15.4\t0\t0\nPension and Medical Plan curtailment\t(0.4)\t0\t(0.2)\t(0.2)\nTotal restructuring costs\t37.9\t36.7\t1.4\t(0.2)\n", "q10k_tbl_25": "\tCosts recognized from inception through September 30 2020(1)\tTotal remaining costs expected to be incurred\n\t(in millions)\t\nTermination benefits\t45.6\t0\nOffice lease termination costs\t1.6\t0\nAccelerated share-based compensation\t24.1\t0\nRetention expense (including share-based compensation)\t38.7\t0\nPension and Medical Plan curtailment\t1.3\t0\nTotal restructuring costs\t111.3\t0\n", "q10k_tbl_26": "\tRestructuring liability\t\t\t\t\t\n\tTermination benefits\tOffice lease termination costs\tAccelerated share-based compensation\tRetention expense\tPension curtailment\tTotal\n\t(in millions)\t\t\t\t\t\nBalance at December 31 2019\t1.2\t0\t0\t6.5\t0\t7.7\nCosts incurred and charged to expense\t1.0\t0\t0.5\t0.4\t0\t1.9\nCosts paid or otherwise settled\t(2.2)\t0\t(0.5)\t(6.9)\t0\t(9.6)\nBalance at September 30 2020\t0\t0\t0\t0\t0\t0\n", "q10k_tbl_27": "\tSeptember 30 2020\tDecember 31 2019\n\t(in millions)\t\nRevolving Credit Facility due 2022\t0\t0\n6.875% Senior Notes due 2021\t0\t382.4\n5.375% Senior Notes due 2022\t465.1\t500.0\n5.25% Senior Notes due 2023\t636.8\t650.0\n5.625% Senior Notes due 2026\t500.0\t500.0\nLess: unamortized discount and unamortized debt issuance costs\t(11.5)\t(16.8)\nTotal long-term debt outstanding\t1590.4\t2015.6\n", "q10k_tbl_28": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020(1)\t2019(2)\t2020(1)\t2019(2)\n\t(in millions)\t\t\t\nNon-cash share-based compensation\t\t\t\t\nStock options\t0\t0\t0\t0.3\nRestricted share awards\t2.9\t5.0\t9.3\t15.9\nTotal non-cash share-based compensation\t2.9\t5.0\t9.3\t16.2\nCash share-based compensation\t\t\t\t\nRestricted cash awards\t0.5\t0\t1.2\t0\nPerformance share units\t0.5\t(0.9)\t0.5\t4.6\nRestricted share units\t0\t0\t0\t0.2\nTotal cash share-based compensation\t1.0\t(0.9)\t1.7\t4.8\nTotal share-based compensation expense\t3.9\t4.1\t11.0\t21.0\n", "q10k_tbl_29": "\tOptions Outstanding\tWeighted-Average Exercise Price\tWeighted-Average Remaining Contractual Term\tAggregate Intrinsic Value\n\t\t(per share)\t(in years)\t(in millions)\nOutstanding at December 31 2019\t1802387\t20.87\t\t\nForfeited\t(311203)\t30.08\t\t\nOutstanding at September 30 2020\t1491184\t18.94\t2.02\t0\nOptions Exercisable at September 30 2020\t1491184\t18.94\t2.02\t0\nUnvested Options at September 30 2020\t0\t0\t0\t0\n", "q10k_tbl_30": "\tRestricted Share Awards Outstanding\tWeighted-Average Grant Date Fair Value\n\t\t(per share)\nUnvested balance at December 31 2019\t2845033\t8.67\nGranted\t5080589\t2.10\nVested\t(1383618)\t9.26\nForfeited\t(97718)\t4.91\nUnvested balance at September 30 2020\t6444286\t3.42\n", "q10k_tbl_31": "\tRestricted Cash Awards Outstanding\nUnvested balance at December 31 2019\t0\nGranted\t3249925\nVested\t(7000)\nForfeited\t(64750)\nUnvested balance at September 30 2020\t3178175\n", "q10k_tbl_32": "\tPerformance Share Units Outstanding\tWeighted-Average Grant Date Fair Value\n\t\t(per share)\nUnvested balance at December 31 2019\t625922\t9.04\nGranted\t1926026\t2.17\nVested and paid\t(96734)\t13.06\nUnvested balance at September 30 2020\t2455214\t3.56\n", "q10k_tbl_33": "\tRestricted Share Units Outstanding\tWeighted-Average Grant Date Fair Value\n\t\t(per share)\nUnvested balance at December 31 2019\t34393\t8.16\nGranted\t76083\t2.08\nVested and paid\t(26770)\t8.20\nUnvested balance at September 30 2020\t83706\t2.62\n", "q10k_tbl_34": "\t\tOperated\t\t\t\tNon-operated\t\t\t\n\tDrilling\tDrilling\t\tWaiting on completion\t\tDrilling\t\tWaiting on completion\t\n\tRigs\tGross\tNet\tGross\tNet\tGross\tNet\tGross\tNet\nNorthern Region\t\t\t\t\t\t\t\t\t\nWilliston Basin\t0\t0\t0\t4\t2.9\t0\t0\t16\t2.4\nSouthern Region\t\t\t\t\t\t\t\t\t\nPermian Basin(1)\t2\t11\t9.6\t46\t41.8\t0\t0\t1\t0.1\n", "q10k_tbl_35": "\tPermian Basin\t\tWilliston Basin\t\n\tAs of September 30 2020\t\t\t\n\tGross\tNet\tGross\tNet\nWell Progress\t\t\t\t\nDrilling\t11\t9.6\t0\t0\nWaiting on completion\t46\t41.8\t4\t2.9\nPut on production\t36\t34.4\t2\t1.5\n", "q10k_tbl_36": "\tOperated Put on Production\t\t\t\tNon-operated Put on Production\t\t\t\n\tThree Months Ended\t\tNine Months Ended\t\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30 2020\t\tSeptember 30 2020\t\tSeptember 30 2020\t\tSeptember 30 2020\t\n\tGross\tNet\tGross\tNet\tGross\tNet\tGross\tNet\nNorthern Region\t\t\t\t\t\t\t\t\nWilliston Basin\t2\t1.5\t2\t1.5\t5\t1.0\t10\t1.0\nSouthern Region\t\t\t\t\t\t\t\t\nPermian Basin\t0\t0\t36\t34.4\t3\t0.3\t3\t0.3\n", "q10k_tbl_37": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\n\t(in millions)\t\t\t\nNet income (loss)\t(49.2)\t81.0\t133.8\t13.1\nInterest expense\t28.4\t32.8\t89.8\t100.0\nInterest and other (income) expense\t(7.7)\t(0.9)\t(7.7)\t(4.6)\nIncome tax provision (benefit)\t(55.2)\t26.6\t(42.5)\t(55.7)\nDepreciation depletion and amortization\t133.0\t144.2\t424.6\t395.5\nUnrealized (gains) losses on derivative contracts\t103.8\t(92.3)\t(84.4)\t29.0\n(Gain)/loss from early extinguishment of debt\t7.4\t0\t(18.2)\t0\nNet (gain) loss from asset sales inclusive of restructuring costs\t(0.1)\t2.1\t(3.8)\t(2.5)\nImpairment\t0\t0\t0\t5.0\nAdjusted EBITDA\t160.4\t193.5\t491.6\t479.8\n", "q10k_tbl_38": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\n\t(in millions)\t\nCash Flow Information:\t\t\nNet Cash Provided by (Used in) Operating Activities\t554.0\t342.0\nNet Cash Provided by (Used in) Investing Activities\t(275.2)\t207.7\nNet Cash Provided by (Used in) Financing Activities\t(434.7)\t(455.7)\nFree Cash Flow\t\t\nNet Cash Provided by (Used in) Operating Activities\t554.0\t342.0\nAmortization of debt issuance costs and discounts\t(3.7)\t(4.0)\nInterest expense\t89.8\t100.0\nUnrealized (gains) losses on marketable securities\t1.1\t2.8\nInterest and other income (expense)\t(7.7)\t(4.6)\nDeferred income taxes (benefit)\t(165.3)\t61.2\nIncome tax provision (benefit)\t(42.5)\t(55.7)\nNon-cash share-based compensation\t(9.3)\t(16.2)\nNon-cash gain (loss) from warehouse inventory\t(0.7)\t0\nChanges in operating assets and liabilities\t75.9\t54.3\nAdjusted EBITDA\t491.6\t479.8\nNon-cash share-based compensation\t9.3\t16.2\nNon-cash (gain) loss from warehouse inventory\t0.7\t0\nInterest expense excluding amortization of debt issuance costs and discounts\t(86.1)\t(96.0)\nAccrued property plant and equipment capital expenditures\t(253.5)\t(466.0)\nFree Cash Flow\t162.0\t(66.0)\n", "q10k_tbl_39": "\tThree Months Ended\t\t\tNine Months Ended\t\t\n\tSeptember 30\t\t\tSeptember 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in millions)\t\t\t\t\t\nOil and condensate gas and NGL sales as presented\t175.8\t305.6\t(129.8)\t515.9\t875.8\t(359.9)\nTransportation and processing costs included in revenue(1)\t16.0\t14.2\t1.8\t45.6\t40.7\t4.9\nOil and condensate gas and NGL sales as adjusted(2)\t191.8\t319.8\t(128.0)\t561.5\t916.5\t(355.0)\nOil and condensate sales\t169.3\t298.8\t(129.5)\t507.8\t834.0\t(326.2)\nGas sales\t9.3\t9.1\t0.2\t24.6\t39.4\t(14.8)\nNGL sales\t13.2\t11.9\t1.3\t29.1\t43.1\t(14.0)\nOil and condensate gas and NGL sales as adjusted(2)\t191.8\t319.8\t(128.0)\t561.5\t916.5\t(355.0)\n", "q10k_tbl_40": "\tOil and condensate\tGas\tNGL\tTotal\n\t(in millions)\t\t\t\nOil and condensate gas and NGL sales as adjusted\t\t\t\t\nThree months ended September 30 2019\t298.8\t9.1\t11.9\t319.8\nChanges associated with volumes(1)\t(64.4)\t(0.1)\t(0.8)\t(65.3)\nChanges associated with prices(2)\t(65.1)\t0.3\t2.1\t(62.7)\nThree months ended September 30 2020\t169.3\t9.3\t13.2\t191.8\nOil and condensate gas and NGL sales as adjusted\t\t\t\t\nNine months ended September 30 2019\t834.0\t39.4\t43.1\t916.5\nChanges associated with volumes(1)\t(40.9)\t(0.6)\t0.8\t(40.7)\nChanges associated with prices(2)\t(285.3)\t(14.2)\t(14.8)\t(314.3)\nNine months ended September 30 2020\t507.8\t24.6\t29.1\t561.5\n", "q10k_tbl_41": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\nTotal production volumes (Mboe)\t\t\t\t\t\t\nNorthern Region\t\t\t\t\t\t\nWilliston Basin\t2680.6\t2722.5\t(41.9)\t8173.7\t9061.9\t(888.2)\nOther Northern\t0.1\t19.4\t(19.3)\t7.1\t65.1\t(58.0)\nSouthern Region\t\t\t\t\t\t\nPermian Basin\t4376.2\t5658.5\t(1282.3)\t14776.1\t14293.2\t482.9\nHaynesville/Cotton Valley\t0\t(0.4)\t0.4\t0\t310.5\t(310.5)\nOther Southern\t0.1\t4.0\t(3.9)\t3.9\t14.3\t(10.4)\nTotal production\t7057.0\t8404.0\t(1347.0)\t22960.8\t23745.0\t(784.2)\nTotal equivalent prices (per Boe)\t\t\t\t\t\t\nAverage field-level equivalent price\t27.17\t38.06\t(10.89)\t24.46\t38.60\t(14.14)\nCommodity derivative impact\t9.86\t(0.59)\t10.45\t10.13\t(1.13)\t11.26\nNet realized equivalent price\t37.03\t37.47\t(0.44)\t34.59\t37.47\t(2.88)\n", "q10k_tbl_42": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\nOil and condensate production volumes (Mbbl)\t\t\t\t\t\t\nNorthern Region\t\t\t\t\t\t\nWilliston Basin\t1643.2\t1700.3\t(57.1)\t5149.5\t5719.7\t(570.2)\nOther Northern\t0.4\t12.1\t(11.7)\t(1.7)\t36.1\t(37.8)\nSouthern Region\t\t\t\t\t\t\nPermian Basin\t2803.7\t3956.5\t(1152.8)\t9976.8\t10144.9\t(168.1)\nOther Southern\t0\t1.6\t(1.6)\t0.3\t3.7\t(3.4)\nTotal production\t4447.3\t5670.5\t(1223.2)\t15124.9\t15904.4\t(779.5)\nAverage field-level oil prices (per bbl)\t\t\t\t\t\t\nNorthern Region\t35.63\t51.92\t(16.29)\t33.67\t53.38\t(19.71)\nSouthern Region\t39.49\t53.03\t(13.54)\t33.53\t51.91\t(18.38)\nAverage field-level price\t38.07\t52.70\t(14.63)\t33.58\t52.44\t(18.86)\nCommodity derivative impact\t15.82\t(0.87)\t16.69\t15.41\t(1.50)\t16.91\nNet realized price\t53.89\t51.83\t2.06\t48.99\t50.94\t(1.95)\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\nGas production volumes (Bcf)\t\t\t\t\t\t\nNorthern Region\t\t\t\t\t\t\nWilliston Basin\t2.8\t3.3\t(0.5)\t8.5\t10.6\t(2.1)\nOther Northern\t0\t0\t0\t0.1\t0.1\t0\nSouthern Region\t\t\t\t\t\t\nPermian Basin\t5.0\t4.8\t0.2\t15.4\t11.9\t3.5\nHaynesville/Cotton Valley\t0\t0\t0\t0\t1.9\t(1.9)\nOther Southern\t0\t0.1\t(0.1)\t0\t0.1\t(0.1)\nTotal production\t7.8\t8.2\t(0.4)\t24.0\t24.6\t(0.6)\nAverage field-level gas prices (per Mcf)\t\t\t\t\t\t\nNorthern Region\t1.13\t1.72\t(0.59)\t1.39\t2.41\t(1.02)\nSouthern Region\t1.19\t0.71\t0.48\t0.81\t0.98\t(0.17)\nAverage field-level price\t1.17\t1.13\t0.04\t1.02\t1.61\t(0.59)\nCommodity derivative impact\t(0.10)\t0\t(0.10)\t(0.02)\t(0.12)\t0.10\nNet realized price\t1.07\t1.13\t(0.06)\t1.00\t1.49\t(0.49)\n", "q10k_tbl_44": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\nNGL production volumes (Mbbl)\t\t\t\t\t\t\nNorthern Region\t\t\t\t\t\t\nWilliston Basin\t550.3\t472.1\t78.2\t1585.4\t1577.5\t7.9\nOther Northern\t0.1\t0.7\t(0.6)\t0.6\t1.1\t(0.5)\nSouthern Region\t\t\t\t\t\t\nPermian Basin\t736.8\t909.9\t(173.1)\t2234.5\t2168.4\t66.1\nOther Southern\t(0.1)\t0.3\t(0.4)\t0.3\t0.8\t(0.5)\nTotal production\t1287.1\t1383.0\t(95.9)\t3820.8\t3747.8\t73.0\nAverage field-level NGL prices (per bbl)\t\t\t\t\t\t\nNorthern Region\t7.51\t5.26\t2.25\t5.11\t9.92\t(4.81)\nSouthern Region\t12.26\t10.38\t1.88\t9.40\t12.65\t(3.25)\nAverage field-level price\t10.23\t8.63\t1.60\t7.62\t11.50\t(3.88)\nCommodity derivative impact\t0\t0\t0\t0\t0\t0\nNet realized price\t10.23\t8.63\t1.60\t7.62\t11.50\t(3.88)\n", "q10k_tbl_45": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in millions)\t\t\t\t\t\nLease operating expense\t35.5\t38.3\t(2.8)\t104.5\t135.5\t(31.0)\nAdjusted transportation and processing costs(1)\t28.4\t32.2\t(3.8)\t83.8\t79.5\t4.3\nProduction and property taxes\t14.0\t20.0\t(6.0)\t42.3\t67.6\t(25.3)\nTotal production costs\t77.9\t90.5\t(12.6)\t230.6\t282.6\t(52.0)\n\t(per Boe)\t\t\t\t\t\nLease operating expense\t5.03\t4.56\t0.47\t4.55\t5.71\t(1.16)\nAdjusted transportation and processing costs(1)\t4.04\t3.83\t0.21\t3.65\t3.34\t0.31\nProduction and property taxes\t1.98\t2.38\t(0.40)\t1.84\t2.85\t(1.01)\nTotal production costs\t11.05\t10.77\t0.28\t10.04\t11.90\t(1.86)\n", "q10k_tbl_46": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in millions)\t\t\t\t\t\nTransportation and processing costs as presented\t12.4\t18.0\t(5.6)\t38.2\t38.8\t(0.6)\nTransportation and processing costs deducted from oil and condensate gas and NGL sales\t16.0\t14.2\t1.8\t45.6\t40.7\t4.9\nAdjusted transportation and processing costs\t28.4\t32.2\t(3.8)\t83.8\t79.5\t4.3\n\t(per Boe)\t\t\t\t\t\nTransportation and processing costs as presented\t1.77\t2.14\t(0.37)\t1.66\t1.63\t0.03\nTransportation and processing costs deducted from oil and condensate gas and NGL sales\t2.27\t1.69\t0.58\t1.99\t1.71\t0.28\nAdjusted transportation and processing costs\t4.04\t3.83\t0.21\t3.65\t3.34\t0.31\n", "q10k_tbl_47": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\n\t(in millions)\t\t\t\t\t\nGeneral and administrative (excluding share-based and deferred compensation)\t16.5\t28.6\t(12.1)\t54.8\t102.8\t(48.0)\nGeneral and administrative (share-based and deferred compensation):\t\t\t\t\t\t\nCash share-based compensation (1)\t1.0\t(0.9)\t1.9\t1.7\t4.8\t(3.1)\nNon-cash share-based compensation (1)\t2.9\t5.0\t(2.1)\t9.3\t16.2\t(6.9)\nDeferred compensation mark-to-market adjustments (2)\t0.5\t(3.1)\t3.6\t(2.7)\t0.6\t(3.3)\nTotal General and administrative\t20.9\t29.6\t(8.7)\t63.1\t124.4\t(61.3)\n\t(per Boe)\t\t\t\t\t\nGeneral and administrative (excluding share-based and deferred compensation)\t2.34\t3.40\t(1.06)\t2.39\t4.33\t(1.94)\nGeneral and administrative (share-based and deferred compensation):\t\t\t\t\t\t\nCash share-based compensation (1)\t0.14\t(0.11)\t0.25\t0.07\t0.20\t(0.13)\nNon-cash share-based compensation (1)\t0.41\t0.59\t(0.18)\t0.41\t0.68\t(0.27)\nDeferred compensation mark-to-market adjustments (2)\t0.07\t(0.37)\t0.44\t(0.12)\t0.03\t(0.15)\nTotal General and administrative\t2.96\t3.51\t(0.55)\t2.75\t5.24\t(2.49)\n", "q10k_tbl_48": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\n\t(in millions)\t\t\nNet income (loss)\t133.8\t13.1\t120.7\nNon-cash adjustments to net income (loss)\t496.1\t383.2\t112.9\nChanges in operating assets and liabilities\t(75.9)\t(54.3)\t(21.6)\nNet cash provided by (used in) operating activities\t554.0\t342.0\t212.0\n", "q10k_tbl_49": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\n\t(in millions)\t\t\nProperty acquisitions\t4.1\t3.6\t0.5\nProperty plant and equipment capital expenditures\t253.5\t466.0\t(212.5)\nTotal accrued capital expenditures\t257.6\t469.6\t(212.0)\nChange in accruals and other non-cash adjustments\t31.0\t(0.8)\t31.8\nTotal cash capital expenditures\t288.6\t468.8\t(180.2)\n", "q10k_tbl_50": "Production Commodity Derivative Swaps\t\t\t\nYear\tIndex\tTotal Volumes\tAverage Swap Price per Unit\n\t\t(in millions)\t\nOil sales\t\t(bbls)\t($/bbl)\n2020\tNYMEX WTI\t3.9\t57.60\n2020\tArgus WTI Midland\t0.4\t57.30\n2021 (January - June)\tNYMEX WTI\t5.2\t44.70\n2021 (July - December)\tNYMEX WTI\t5.2\t42.24\nGas sales\t\t(MMbtu)\t($/MMbtu)\n2020\tIF Waha\t3.7\t0.97\n2020\tNYMEX HH\t2.8\t2.20\n2021\tIF Waha\t18.2\t1.92\n2021\tNYMEX HH\t9.1\t2.44\n", "q10k_tbl_51": "\tCommodity derivative contracts\n\t(in millions)\nNet fair value of oil and gas derivative contracts outstanding at December 31 2019\t(17.5)\nContracts settled\t(232.6)\nChange in oil and gas prices on futures markets\t342.0\nContracts added\t(25.0)\nNet fair value of oil derivative contracts outstanding at September 30 2020\t66.9\n", "q10k_tbl_52": "Exhibit No.\tDescription of Exhibit\n3.1\tAmended and Restated Certificate of Incorporation dated May 15 2018 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 17 2018).\n3.2*\tAmended and Restated Bylaws as amended and restated on October 27 2020.\n31.1*\tCertification signed by Timothy J. Cutt QEP Resources Inc.'s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n31.2*\tCertification signed by William J. Buese QEP Resources Inc.'s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n32.1**\tCertification signed by Timothy J. Cutt and William J. Buese QEP Resources Inc.'s Chief Executive Officer and Chief Financial Officer respectively pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\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.\n101.SCH*\tXBRL Schema Document.\n101.CAL*\tXBRL Calculation Linkbase Document.\n101.LAB*\tXBRL Label Linkbase Document.\n101.PRE*\tXBRL Presentation Linkbase Document.\n101.DEF*\tXBRL Definition Linkbase Document.\n"}{"bs": "q10k_tbl_4", "is": "q10k_tbl_2", "cf": "q10k_tbl_4"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
☐
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: 001-34778
QEP RESOURCES, INC.
(Exact name of registrant as specified in its charter)
Delaware
87-0287750
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
1050 17th Street, Suite 800, Denver, Colorado80265
(Address of principal executive offices)
Registrant's telephone number, including area code (303) 672-6900
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, $0.01 par value
QEP
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 (Section 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, a 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 ☒
At September 30, 2020, there were 242,221,121 shares of the registrant's common stock, $0.01 par value, outstanding.
QEP Resources, Inc.
Form 10-Q for the Quarter Ended September 30, 2020
Net gain (loss) from asset sales, inclusive of restructuring costs
0.1
(2.1)
3.8
2.5
OPERATING INCOME (LOSS)
(42.1)
52.1
(161.8)
108.6
Realized and unrealized gains (losses) on derivative contracts
(34.2)
87.4
317.0
(55.8)
Interest and other income (expense)
7.7
0.9
7.7
4.6
Gain (loss) from early extinguishment of debt
(7.4)
—
18.2
—
Interest expense
(28.4)
(32.8)
(89.8)
(100.0)
INCOME (LOSS) BEFORE INCOME TAXES
(104.4)
107.6
91.3
(42.6)
Income tax (provision) benefit
55.2
(26.6)
42.5
55.7
NET INCOME (LOSS)
$
(49.2)
$
81.0
$
133.8
$
13.1
Earnings (loss) per common share
Basic
$
(0.20)
$
0.34
$
0.55
$
0.06
Diluted
$
(0.20)
$
0.34
$
0.55
$
0.06
Weighted-average common shares outstanding
Used in basic calculation
242.3
237.9
241.2
237.7
Used in diluted calculation
242.3
237.9
241.2
237.7
Refer to Notes accompanying the Condensed Consolidated Financial Statements.
2
QEP RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
(in millions)
Net income (loss)
$
(49.2)
$
81.0
$
133.8
$
13.1
Other comprehensive income (loss), net of tax:
Pension and other postretirement plans adjustments:
Amortization of prior service costs
—
0.1
—
0.2
Amortization of actuarial losses(1)
0.1
—
0.5
0.1
Net curtailment(2)
—
—
—
(0.3)
Other comprehensive income (loss)
0.1
0.1
0.5
—
Comprehensive income (loss)
$
(49.1)
$
81.1
$
134.3
$
13.1
____________________________
(1)Presented net of income tax benefit of $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively.
(2)Presented net of income tax benefit of $0.1 million for the nine months ended September 30, 2019.
Refer to Notes accompanying the Condensed Consolidated Financial Statements.
3
QEP RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, 2020
December 31, 2019
ASSETS
(in millions)
Current Assets
Cash and cash equivalents
$
9.5
$
166.3
Accounts receivable, net
84.1
108.4
Income tax receivable
50.5
37.4
Fair value of derivative contracts
77.5
1.5
Prepaid expenses and other current assets
8.5
11.6
Total Current Assets
230.1
325.2
Property, Plant and Equipment (successful efforts method for oil and gas properties)
Proved properties
9,812.9
9,574.9
Unproved properties
544.2
599.1
Gathering and other
165.5
164.2
Materials and supplies
16.9
15.6
Total Property, Plant and Equipment
10,539.5
10,353.8
Less Accumulated Depreciation, Depletion and Amortization
Exploration and production
5,603.6
5,250.5
Gathering and other
68.5
61.0
Total Accumulated Depreciation, Depletion and Amortization
5,672.1
5,311.5
Net Property, Plant and Equipment
4,867.4
5,042.3
Fair value of derivative contracts
0.8
0.2
Operating lease right-of-use assets, net
52.7
56.8
Other noncurrent assets
85.7
53.3
TOTAL ASSETS
$
5,236.7
$
5,477.8
LIABILITIES AND EQUITY
Current Liabilities
Checks outstanding in excess of cash balances
$
—
$
18.3
Accounts payable and accrued expenses
164.5
227.2
Production and property taxes
10.7
18.9
Interest payable
29.1
31.0
Fair value of derivative contracts
4.7
18.7
Current operating lease liabilities
22.6
18.0
Asset retirement obligations
7.1
6.0
Total Current Liabilities
238.7
338.1
Long-term debt
1,590.4
2,015.6
Deferred income taxes
440.0
274.5
Asset retirement obligations
94.8
94.9
Fair value of derivative contracts
6.7
0.5
Operating lease liabilities
35.4
44.8
Other long-term liabilities
32.1
48.8
Commitments and contingencies (Note 11)
EQUITY
Common stock – par value $0.01 per share; 500.0 million shares authorized; 247.2 million and 242.1 million shares issued, respectively
2.5
2.4
Treasury stock – 5.0 million and 4.4 million shares, respectively
(56.7)
(55.4)
Additional paid-in capital
1,466.2
1,456.5
Retained earnings
1,398.6
1,269.6
Accumulated other comprehensive income (loss)
(12.0)
(12.5)
Total Common Shareholders' Equity
2,798.6
2,660.6
TOTAL LIABILITIES AND EQUITY
$
5,236.7
$
5,477.8
Refer to Notes accompanying the Condensed Consolidated Financial Statements.
4
QEP RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total
Shares
Amount
Shares
Amount
(in millions)
Balance at June 30, 2020
247.2
$
2.5
(4.9)
$
(56.6)
$
1,463.3
$
1,447.8
$
(12.1)
$
2,844.9
Net income (loss)
—
—
—
—
—
(49.2)
—
(49.2)
Share-based compensation
—
—
(0.1)
(0.1)
2.9
—
—
2.8
Change in pension and postretirement liability, net of tax
—
—
—
—
—
—
0.1
0.1
Balance at September 30, 2020
247.2
$
2.5
(5.0)
$
(56.7)
$
1,466.2
$
1,398.6
$
(12.0)
$
2,798.6
Balance at December 31, 2019
242.1
$
2.4
(4.4)
$
(55.4)
$
1,456.5
$
1,269.6
$
(12.5)
$
2,660.6
Net income (loss)
—
—
—
—
—
133.8
—
133.8
Cash dividends paid, $0.02 per share
—
—
—
—
—
(4.8)
—
(4.8)
Share-based compensation
5.1
0.1
(0.6)
(1.3)
9.7
—
—
8.5
Change in pension and postretirement liability, net of tax
—
—
—
—
—
—
0.5
0.5
Balance at September 30, 2020
247.2
$
2.5
(5.0)
$
(56.7)
$
1,466.2
$
1,398.6
$
(12.0)
$
2,798.6
Balance at June 30, 2019
242.0
$
2.4
(4.1)
$
(53.6)
$
1,446.3
$
1,308.6
$
(14.4)
$
2,689.3
Net income (loss)
—
—
—
—
—
81.0
—
81.0
Cash dividends paid, $0.02 per share
—
—
—
—
—
(4.8)
—
(4.8)
Share-based compensation
0.1
—
(0.2)
(1.2)
5.6
—
—
4.4
Change in pension and postretirement liability, net of tax
—
—
—
—
—
—
0.1
0.1
Balance at September 30, 2019
242.1
$
2.4
(4.3)
$
(54.8)
$
1,451.9
$
1,384.8
$
(14.3)
$
2,770.0
Balance at December 31, 2018
239.8
$
2.4
(3.1)
$
(45.6)
$
1,431.9
$
1,376.5
(14.3)
$
2,750.9
Net income (loss)
—
—
—
—
—
13.1
—
13.1
Cash dividends paid, $0.02 per share
—
—
—
—
—
(4.8)
—
(4.8)
Share-based compensation
2.3
—
(1.2)
(9.2)
20.0
—
—
10.8
Change in pension and postretirement liability, net of tax
—
—
—
—
—
—
—
—
Balance at September 30, 2019
242.1
$
2.4
(4.3)
$
(54.8)
$
1,451.9
$
1,384.8
$
(14.3)
$
2,770.0
Refer to Notes accompanying the Condensed Consolidated Financial Statements.
5
QEP RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
2020
2019
OPERATING ACTIVITIES
(in millions)
Net income (loss)
$
133.8
$
13.1
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization
424.6
395.5
Deferred income taxes (benefit)
165.3
(61.2)
Impairment
—
5.0
Non-cash share-based compensation
9.3
16.2
Non-cash (gain) loss from warehouse inventory
0.7
—
Amortization of debt issuance costs and discounts
3.7
4.0
Net (gain) loss from asset sales, inclusive of restructuring costs
(3.8)
(2.5)
Gain from early extinguishment of debt
(18.2)
—
Unrealized (gains) losses on marketable securities
(1.1)
(2.8)
Unrealized (gains) losses on derivative contracts
(84.4)
29.0
Changes in operating assets and liabilities
(75.9)
(54.3)
Net Cash Provided by (Used in) Operating Activities
554.0
342.0
INVESTING ACTIVITIES
Property acquisitions
(4.1)
(3.6)
Expenditures for property, plant and equipment, including exploratory well expense
(284.5)
(465.2)
Proceeds from disposition of assets
13.4
676.5
Net Cash Provided by (Used in) Investing Activities
(275.2)
207.7
FINANCING ACTIVITIES
Checks outstanding in excess of cash balances
(18.3)
(13.9)
Long-term debt issuance costs paid
(0.5)
—
Repurchases and redemption of senior notes
(410.3)
—
Proceeds from credit facility
21.1
56.0
Repayments of credit facility
(21.1)
(486.0)
Treasury stock repurchases
(0.8)
(7.0)
Dividends paid
(4.8)
(4.8)
Net Cash Provided by (Used in) Financing Activities
(434.7)
(455.7)
Change in cash, cash equivalents and restricted cash(1)
(155.9)
94.0
Beginning cash, cash equivalents and restricted cash(1)
196.4
28.1
Ending cash, cash equivalents and restricted cash(1)
$
40.5
$
122.1
Supplemental Disclosures:
Cash paid for interest, net of capitalized interest
$
88.2
$
94.1
Cash paid (refunds received) for income taxes, net
$
(164.0)
$
5.0
Cash paid for amounts included in the measurement of lease liabilities
$
19.0
$
14.5
Other Non-cash Activities:
Right-of-use assets obtained in exchange for operating lease obligations
$
9.3
$
11.1
Non-cash Investing Activities:
Capital expenditure accruals as of September 30, 2020 and 2019
$
32.3
$
55.3
____________________________
(1)Refer to Cash, Cash Equivalents and Restricted Cash in Note 1 – Basis of Presentation.
Refer to Notes accompanying the Condensed Consolidated Financial Statements.
6
QEP RESOURCES, INC.
NOTES ACCOMPANYING THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 – Basis of Presentation
Nature of Business
QEP Resources, Inc. (QEP or the Company) is an independent crude oil and natural gas exploration and production company with operations in two regions of the United States: the Southern Region (primarily in Texas) and the Northern Region (primarily in North Dakota). Unless otherwise specified or the context otherwise requires, all references to "QEP" or the "Company" are to QEP Resources, Inc. and its subsidiaries on a consolidated basis. QEP's corporate headquarters are located in Denver, Colorado and shares of QEP's common stock trade on the New York Stock Exchange (NYSE) under the ticker symbol "QEP".
Basis of Presentation
The interim Condensed Consolidated Financial Statements (financial statements) contain the accounts of QEP and its majority-owned or controlled subsidiaries. The financial statements were prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States and with the instructions for Quarterly Reports on Form 10-Q and Regulation S-X. All intercompany accounts and transactions have been eliminated in consolidation.
The financial statements reflect all normal recurring adjustments and accruals that are, in the opinion of management, necessary for a fair statement of financial position and results of operations for the interim periods presented. Interim financial statements do not include all of the information and notes required by GAAP for annual consolidated financial statements. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.
The preparation of the financial statements and Notes in conformity with GAAP requires that management make estimates and assumptions that affect revenues, expenses, assets and liabilities, and disclosure of contingent assets and liabilities. Actual results could differ from estimates. Further, these estimates and other factors, including those outside the Company's control, such as the impact of sustained lower commodity prices, could have a significant adverse impact to the Company's financial condition, results of operations and cash flows. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020.
Certain prior period balances on the Condensed Consolidated Balance Sheets (balance sheets) and Condensed Consolidated Statements of Cash Flows (statements of cash flows) have been reclassified to conform to the current year presentation. Such reclassifications had no effect on the Company's net income (loss), earnings (loss) per share or retained earnings previously reported.
Cash, Cash Equivalents and Restricted Cash
Cash equivalents primarily consist of highly liquid investments in securities with original maturities of three months or less made through commercial bank accounts that result in available funds the next business day. Restricted cash are funds that are legally or contractually reserved for a specific purpose and therefore not available for immediate or general business use.
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The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets to the amounts shown in the statements of cash flows:
September 30,
2020
2019
(in millions)
Cash and cash equivalents
$
9.5
$
92.4
Restricted cash(1)
31.0
29.7
Total cash, cash equivalents and restricted cash shown in the statements of cash flows
$
40.5
$
122.1
_______________________
(1) As of September 30, 2020 and 2019, the restricted cash balance is cash held in an escrow account related to a title dispute between outside parties in the Williston Basin. The restricted cash balance is recorded within "Other noncurrent assets" on the balance sheets.
Income Tax
The tax legislation enacted in December 2017 reduced our federal corporate tax rate from 35% to 21% and eliminated the corporate Alternative Minimum Tax (AMT), allowing the Company to claim AMT refunds for AMT credits carried forward from prior tax years. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) enacted in March 2020 permitted the Company to carry back its net operating loss (NOL) generated in 2018 and 2019, creating additional AMT credits, and accelerate all of its AMT refunds. The Company received $170.7 million of AMT credit refunds, inclusive of $5.6 million in interest income, during the three months ended September 30, 2020 and $73.9 million of AMT credit refunds in 2019. As of September 30, 2020, the Company expects to receive an additional $81.0 million in AMT credit refunds due to additional NOL carrybacks relating to the 2018 and 2019 tax years. The NOLs that were generated are primarily due to the issuance of final regulations by the U.S Department of Treasury in July 2020 that relate to the deductibility of interest expense. Of the $81.0 million in AMT credit refunds to be received, $50.1 million is included in "Income taxes receivable" and $30.9 million is included in "Other noncurrent assets" on the balance sheets as of September 30, 2020.
QEP’s effective federal and state income tax rate was 52.9% during the third quarter of 2020 compared to a rate of 24.7% during the third quarter of 2019. The increase in the federal and state income tax rate was primarily driven by the impact of discrete items (unusual or infrequent items impacting the tax provision) and permanent differences recognized during the third quarter of 2020 and 2019. During the third quarter 2020 the effective rate was above the statutory rate due to discrete items recognized in the third quarter of 2020, including the remeasurement of deferred taxes due to NOL carrybacks under the CARES Act to a year with a higher federal tax rate, partially offset by a state tax payment. During the third quarter 2019 the rate was driven higher than the statutory rate by the recognition of a discrete item related to share-based compensation and a permanent difference related to the change in the estimated amount of non-deductible executive compensation.
QEP’s effective federal and state income tax rate was negative 46.5% during the nine months ended September 30, 2020 compared to a rate of 130.8% during the nine months ended September 30, 2019. The decrease in the federal and state income tax rate was primarily driven by the impact of discrete items and permanent differences recognized during the nine months ended September 30, 2020 and 2019. During the first three quarters of 2020 the primary discrete item lowering the effective tax rate was the remeasurement of deferred taxes due to NOL carrybacks under the CARES Act to a year with a higher federal tax rate. The primary discrete items recognized during the nine months ended September 30, 2019 related to the remeasurement of deferred taxes associated with the sale of QEP's Haynesville/Cotton Valley assets in January 2019, share-based compensation adjustments and a permanent difference related to the estimated amount of non-deductible executive compensation.
Impairment of Long-Lived Assets
During the nine months ended September 30, 2020, there were no impairment charges. During the nine months ended September 30, 2019, QEP recorded impairment charges of $5.0 million related to an office building lease.
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Employee Benefits
QEP provides pension and other postretirement benefits to certain employees through three retiree benefit plans: the QEP Resources, Inc. Retirement Plan (the Pension Plan), the Supplemental Executive Retirement Plan (the SERP), and a postretirement medical plan (the Medical Plan). The Pension Plan is a closed, qualified, defined-benefit pension plan that is funded and provides pension benefits to certain QEP employees. The Pension Plan was amended in June 2015 and was frozen, such that active participants do not earn any additional accrued benefits on or after January 1, 2016. The SERP is a nonqualified retirement plan that is unfunded and provides postretirement benefits to certain QEP employees. The Medical Plan is a self-insured plan. It is unfunded and provides other postretirement benefits including certain health care and life insurance benefits for certain retired QEP employees.
During the nine months ended September 30, 2020, the Company made contributions of $11.5 million to its retiree benefit plans (including $4.0 million to the Pension Plan and $7.5 million to the SERP) and expects to contribute an additional $2.3 million during the remainder of 2020 (including $2.2 million to the SERP and $0.1 million to the Medical Plan). Contributions to the Pension Plan increase plan assets whereas contributions to the SERP and Medical Plan are used to fund current benefit payments.
The Company recognizes service costs related to SERP and Medical Plan benefits on the Condensed Consolidated Statements of Operations (statements of operations) within "General and administrative" expense. All other expenses related to the Pension Plan, SERP and Medical Plan are recognized on the statements of operations within "Interest and other income (expense)".
QEP also offers a nonqualified, unfunded deferred compensation wrap plan (Wrap Plan) to certain individuals. The Wrap Plan provides participants with certain tax planning benefits as well as supplemental funds for retirement and allows participants to defer the receipt of various types of compensation. Participants are able to select from a variety of investment options, including mutual funds and phantom QEP shares. As of September 30, 2020 and December 31, 2019, the Wrap Plan obligations for participants' future benefits were $25.0 million and $26.8 million, respectively, and are included in "Other long-term liabilities" on the balance sheets. The Company established a trust (Rabbi Trust) to hold the investments associated with the Wrap Plan (other than phantom QEP shares) and to pay Wrap Plan obligations as they arise. As of September 30, 2020 and December 31, 2019, the marketable securities held in the Rabbi Trust were $23.6 million and $23.1 million, respectively, and are included in "Other noncurrent assets" on the balance sheets.
Changes in the fair value of Wrap Plan obligations and marketable securities are recorded as "Deferred compensation mark-to-market adjustments" and "Unrealized gain/loss on marketable securities" within "General and administrative" and "Interest and other income (expense)", respectively, on the statements of operations. "Deferred compensation mark-to-market adjustments" and "Unrealized gain/loss on marketable securities" for the three and nine months ended September 30, 2020 and 2019, respectively, are summarized in the table below:
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
(in millions)
Deferred compensation mark-to-market adjustments
$
0.5
$
(3.1)
$
(2.7)
$
0.6
Unrealized (gain)/loss on marketable securities
(1.1)
(0.1)
(1.1)
(2.8)
Refer to Note 6 – Fair Value Measurements for information on the fair value measurement of the marketable securities held in the Rabbi Trust and the Wrap Plan obligations.
Recent Accounting Developments
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of credit losses on financial instruments, which requires a company immediately recognize management's current estimated credit losses ("CECL") for all financial instruments that are not accounted for at fair value through net income. Previously, credit losses on financial assets were only required to be recognized when they were incurred. The Company adopted ASU 2016-13 on January 1, 2020. The guidance did not have a significant impact on the financial statements or notes accompanying the financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair value measurement (Topic 820) - Disclosure framework - Changes to the disclosure requirements for fair value measurement, which modifies the disclosure requirements on fair value
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measurements in Topic 820. The Company adopted ASU 2018-13 on January 1, 2020. The guidance did not have a significantimpact on the financial statements or notes accompanying the financial statements.
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform, which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (LIBOR). The amendment provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This amendment is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company's financial statements.
Note 2 – Revenue
Revenue Recognition
QEP recognizes revenue from the sale of oil and condensate, gas and NGL in the period that the performance obligations are satisfied. QEP's performance obligations are satisfied when the customer obtains control of product, when QEP has no further obligations to perform related to the sale, when the transaction price has been determined and when collectability is probable. The sale of oil and condensate, gas and NGL are made under contracts with customers, which typically include consideration that is based on pricing tied to local indices and volumes delivered in the current month. Reported revenues include estimates for the two most recent months using published commodity price indices and volumes supplied by field operators. Performance obligations under our contracts with customers are typically satisfied at a point in time through monthly delivery of oil and condensate, gas and/or NGL. Our contracts with customers typically require payment for oil and condensate, gas and NGL sales within 30 days following the calendar month of delivery.
QEP's oil and condensate is typically sold at specific delivery points under contract terms that are common in the industry. QEP's gas and NGL are also sold under contract types that are common in the industry; however, under these contracts, the gas and its components, including NGL, may be sold to a single purchaser or the residue gas and NGL may be sold to separate purchasers. Regardless of the contract type, the terms of these contracts compensate QEP for the value of the residue gas and NGL constituent components at market prices for each product. QEP also purchases and resells oil and gas primarily to fulfill volume commitments when production does not fulfill contractual commitments and to capture additional margin from subsequent sales of third party purchases. QEP recognizes revenue from these resale activities in the period that the performance obligations are satisfied.
The following tables present QEP's revenues that are disaggregated by revenue source and by geographic area. Transportation and processing costs in the following table are not all of the transportation and processing costs that QEP incurs, only the costs that are netted against revenues pursuant to ASC Topic 606, Revenue Recognition.
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Oil and condensate sales
Gas sales
NGL sales
Transportation and processing costs included in revenue
Oil and condensate, gas and NGL sales, as reported