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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Income from Discontinued Operations

Income from discontinued operations is comprised of the following:

	Year Ended December 31,
	2012			2013
Revenues:		(In thousands)
Oil and gas sales	$	47,109		$	25,125
Costs and expenses:
Production taxes		2,294			1,120
Gathering and transportation		1,047			501
Lease operating		9,372			9,853
Depletion, depreciation and amortization		21,428			8,649
Interest expense⁽¹⁾		6,669			6,346
Total costs and expenses		40,810			26,469
Gain on sale		—			230,008
Income from discontinued operations before income taxes		6,299			228,664

Income tax expense:
Current		—			(2,218	)
Deferred		(3,280	)		(78,694	)
Total income tax expense		(3,280	)		(80,912	)
Net income from discontinued operations	$	3,019		$	147,752

____________

(1)

Interest expense was allocated to discontinued operations based on the ratio of the net assets of discontinued operations to our consolidated net assets plus long-term debt. Interest expense is net of capitalized interest of $9,582 and $2,010 for the years ended December 31, 2012 and 2013, respectively.

Summary of Other Current Assets

Other current assets at December 31, 2013 and 2014 consist of the following:


	As of December 31,
	2013		2014
		(In thousands)
Derivative settlements receivable	$	139	$	7,890
Pipe and oil field equipment inventory		1,388		1,379
Derivative financial instruments		970		—
Drilling advances		—		311
Prepaid expenses		350		487
Other		58		38
	$	2,905	$	10,105

Carrying Amounts and Estimated Fair Value of Long-term Debt

The following table presents the carrying amounts and estimated fair value of the Company's long-term debt as of December 31, 2013 and 2014:

	2013				2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
Fixed rate debt	$	588,700	$	650,250	$	695,445	$	453,000
Floating rate debt	$	210,000	$	210,000	$	375,000	$	375,000

Summary of Accrued Expenses

Accrued expenses at December 31, 2013 and 2014 consist of the following:

	As of December 31,
	2013		2014
	(In thousands)
Accrued oil and gas property acquisition costs	$	40,128	$	—
Accrued drilling costs		34,914		26,269
Accrued interest payable		7,051		9,011
Accrued rig termination fees		—		2,600
Other		9,204		6,962
	$	91,297	$	44,842

Summary of Changes in Reserve for Future Abandonment Costs

The following table summarizes the changes in the Company's total estimated liability:

	2013			2014
	(In thousands)
Reserve for Future Abandonment Costs at beginning of the year	$	16,387		$	14,534
New wells placed on production		1,083			1,480
Changes in estimates		(3,324	)		(1,796	)
Liabilities settled and assets disposed of		(558	)		(153	)
Accretion expense		946			835
Reserve for Future Abandonment Costs at end of the year	$	14,534		$	14,900

Basic and Diluted Earnings Per Share

Basic and diluted earnings per share for 2012, 2013 and 2014 were determined as follows:

	2012								2013								2014
	Income (Loss)			Shares		Per Share			Income (Loss)			Shares		Per Share			Loss			Shares		Per Share
	(In thousands except per share data)

Net Loss From Continuing Operations	$	(103,079	)						$	(106,723	)						$	(57,111	)
Loss (Income) Allocable to Unvested Stock Grants		—								3,424								(595	)
Basic Net Loss From Continuing Operations Attributable to Common Stock	$	(103,079	)		46,422	$	(2.22	)	$	(103,299	)		46,553	$	(2.22	)	$	(57,706	)		46,547	$	(1.24	)
Diluted Net Loss From Continuing Operations Attributable to Common Stock	$	(103,079	)		46,422	$	(2.22	)	$	(103,299	)		46,553	$	(2.22	)	$	(57,706	)		46,547	$	(1.24	)
Net Income From Discontinued Operations	$	3,019							$	147,752
Income Allocable to Unvested Stock Grants		—								(4,742	)
Basic Net Income From Discontinued Operations Attributable to Common Stock	$	3,019			46,422	$	0.06		$	143,010			46,553	$	3.07
Diluted Net Income From Discontinued Operations Attributable to Common Stock	$	3,019			46,422	$	0.06		$	143,010			46,553	$	3.07

Weighted Average Shares of Unvested Restricted Stock

At December 31, 2012, 2013 and 2014, 1,960,835, 1,515,889 and 1,207,527 shares of unvested restricted stock, respectively, are included in common stock outstanding as such shares have a nonforfeitable right to participate in any dividends that might be declared and have the right to vote. Weighted average shares of unvested restricted stock included in common stock outstanding were as follows:

2012

2013

2014

(In thousands)

Unvested restricted stock

1,737

1,544

1,190

Common Stock Stock Options Excluded as Anti-Dilutive from Determination of Diluted Earnings Per Share

Options to purchase common stock and PSUs that were outstanding and that were excluded as anti-dilutive from determination of diluted earnings per share were as follows:

	2012		2013		2014
	(In thousands except per share data)
Weighted average anti-dilutive stock options		168		130		115
Weighted average exercise price	$	37.81	$	32.90	$	32.90
Weighted average performance share units		—		75		323
Weighted average grant date fair value per unit	$	—	$	20.92	$	19.88

Cash Payments Made for Interest and Income Taxes

Cash payments made for interest and income taxes for the years ended December 31, 2012, 2013 and 2014, respectively, were as follows:

	2012			2013		2014
	(In thousands)
Cash Payments:
Interest payments	$	79,001		$	83,560	$	62,812
Income tax payments (refunds)	$	(58	)	$	769	$	682

Comprehensive Income (Loss)

Comprehensive income (loss) consists of the following:

	For the Year Ended December 31,
	2012			2013			2014
	(In thousands)
Net income (loss)	$	(100,060	)	$	41,029		$	(57,111	)
Other comprehensive income (loss):
Realized gains on marketable securities reclassified to gain on sale of marketable securities, net of a benefit from income taxes of $9,318 and $2,757 in 2012 and 2013, respectively		(17,303	)		(5,120	)		—
Unrealized hedging gains, net of a benefit from income taxes of $161 in 2012		(298	)		—			—
Unrealized gains on marketable securities, net of a provision for income taxes of $831 and $377 in 2012 and 2013, respectively		1,543			702			—
Total comprehensive income (loss)	$	(116,118	)	$	36,611		$	(57,111	)

Accumulated Other Comprehensive Income, Net of Income Taxes

The following table provides a summary of the amounts included in accumulated other comprehensive income, net of income taxes, for the years ended December 31, 2012 and 2013:

	Oil Price Swap Agreements			Marketable Securities			Total Accumulated Comprehensive Income
	(In thousands)
Balance as of December 31, 2011	$	298		$	20,178		$	20,476
Reclassification to earnings		(298	)		(17,303	)		(17,601	)
Changes in value		—			1,543			1,543
Balance as of December 31, 2012		—			4,418			4,418
Reclassification to earnings		—			(5,120	)		(5,120	)
Changes in value		—			702			702
Balance as of December 31, 2013	$	—		$	—		$	—