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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2020
Accounting Policies [Abstract] |
Summary of Preliminary Purchase Price Allocation of the Assets Acquired and Liabilities Assumed Based on their Fair Values | The following table summarizes the original and final purchase price allocations of the assets acquired and liabilities assumed based on their fair values as of the acquisition date:
|  | Original Allocation |  | Measurement Period Adjustments |  | Final Allocation
|  | (In thousands)
Consideration: |  |  |  |  |  |
Cash Paid |  | $ | 700,000 |  |  | $ | — |  |  | $ | 700,000 |
Fair Value of Common Stock Issued |  | 167,808 |  |  | — |  |  | 167,808 |
Fair Value of Series A Preferred Stock Issued |  | 200,000 |  |  | — |  |  | 200,000 |
Total Consideration |  | 1,067,808 |  |  | — |  |  | 1,067,808 |
Liabilities Assumed: |  |  |  |  |  |
Accounts Payable and Accrued Liabilities |  | 129,622 |  |  | — |  |  | 129,622 |
Derivative Financial Instruments |  | 388 |  |  | — |  |  | 388 |
Other Current Liabilities |  | 9,930 |  |  | 706 |  |  | 10,636 |
Long Term Debt |  | 826,625 |  |  | — |  |  | 826,625 |
Covey Park Preferred Equity |  | 153,390 |  |  | — |  |  | 153,390 |
Non-current Derivative Financial Instruments |  | 186 |  |  | — |  |  | 186 |
Asset Retirement Obligations |  | 5,374 |  |  | — |  |  | 5,374 |
Deferred Income Taxes |  | 23,466 |  |  | (1,780) |  |  | 21,686 |
Other Non-current Liabilities |  | 9,893 |  |  | — |  |  | 9,893 |
Liabilities Assumed |  | 1,158,874 |  |  | (1,074) |  |  | 1,157,800 |
Total Consideration and Liabilities Assumed |  | $ | 2,226,682 |  |  | $ | (1,074) |  |  | $ | 2,225,608 |
Assets Acquired: |  |  |  |  |  |
Cash and Cash Equivalents |  | $ | 6,131 |  |  | $ | — |  |  | $ | 6,131 |
Accounts Receivable |  | 86,285 |  |  | — |  |  | 86,285 |
Current Derivative Financial Instruments |  | 51,004 |  |  | — |  |  | 51,004 |
Other Current Assets |  | 5,511 |  |  | (554) |  |  | 4,957 |
Proved Oil and Natural Gas Properties |  | 1,818,413 |  |  | (520) |  |  | 1,817,893 |
Unproved Oil and Natural Gas Properties |  | 237,210 |  |  | — |  |  | 237,210 |
Other Property, Plant and Equipment |  | 2,262 |  |  | — |  |  | 2,262 |
Non-current Derivative Financial Instruments |  | 19,866 |  |  | — |  |  | 19,866 |
Total Assets Acquired |  | $ | 2,226,682 |  |  | $ | (1,074) |  |  | $ | 2,225,608 |
Summary of Unaudited Pro Forma Financial Information | The unaudited pro forma results do not reflect any cost savings or other synergies that may arise in the future.
| Pro Forma Year Ended December 31,
| 2018 |  | 2019
| (In thousands, except per share amounts)
Revenues: | $ | 1,168,585 |  |  | $ | 1,147,290 |
Net Income | $ | 180,303 |  |  | $ | 261,406 |
Net income per share: |  |  |
Basic | $ | 0.77 |  |  | $ | 1.00 |
Diluted | $ | 0.64 |  |  | $ | 0.82 |
Summary of Other Current Assets | Other current assets at December 31, 2019 and 2020 consist of the following:
| As of December 31,
| 2019 |  | 2020
| (In thousands)
Prepaid expenses | $ | 2,005 |  |  | $ | 1,829 |
Advance payments for drilling costs | — |  |  | 1,795 |
Production tax refunds receivable | 3,661 |  |  | 7,915 |
Pipe and oil field equipment inventory | 4,503 |  |  | 3,080 |
Other | 230 |  |  | 220 |
| $ | 10,399 |  |  | $ | 14,839 |
Reconciliation of Beginning and Ending Balances for Derivative Instruments | The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy:
| For the Years Ended December 31,
| 2019 |  | 2020
| (In thousands)
Balance at beginning of year | $ | — |  |  | $ | 4,351 |
Total gains (losses) included in earnings | 4,351 |  |  | 15,943 |
Settlements, net | — |  |  | (31,252) |
Transfers out of Level 3 | — |  |  | (11,630) |
Balance at end of year | $ | 4,351 |  |  | $ | (22,588) |
Summary of Carrying Amounts and Fair Values of Financial Instruments | The following presents the carrying amounts and the fair values of the Company's financial instruments as of December 31, 2019 and December 31, 2020:
| For the Years Ended December 31,
| 2019 |  | 2020
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Assets: | (In thousands)
Commodity-based derivatives (1) | $ | 89,192 |  |  | $ | 89,192 |  |  | $ | 9,574 |  |  | $ | 9,574 |
Liabilities: |  |  |  |  |  |  |
Commodity-based derivatives (1) | 4,442 |  |  | 4,442 |  |  | 49,369 |  |  | 49,369 |
Bank credit facility (2) | 1,250,000 |  |  | 1,250,000 |  |  | 500,000 |  |  | 500,000 |
7½% senior notes due 2025 (3) | 455,768 |  |  | 534,375 |  |  | 473,728 |  |  | 628,691 |
9¾% senior notes due 2026 (3) | 820,057 |  |  | 765,000 |  |  | 1,577,824 |  |  | 1,769,625 |
_______________ (1)The Company's natural gas price swaps and basis swap agreements, its interest rate swap agreements and its crude oil and natural gas price collars are classified as Level 2 and measured at fair value using a market approach using third party pricing services and other active markets or broker quotes that are readily available in the public markets. The Company's natural gas swaption contracts provide the counterparty the right, but not the obligation, to extend terms of an existing swap on a predetermined dates. Due to the subjectivity of the inputs used to value the counterparty rights in the contracts, these contracts are classified as Level 3 in the fair value hierarchy. (2)The carrying value of our floating rate debt outstanding approximates fair value. (3)The fair value of the Company's fixed rate debt was based on quoted prices as of December 31, 2019 and 2020, respectively, a Level 1 measurement.
Summary of Lease Cost Recognized | Lease costs recognized during the twelve months ended December 31, 2020 were as follows:
| Year Ended December 31,
| 2019 |  | 2020
| (In thousands)
Operating lease cost included in general and administrative expense | $ | 1,646 |  |  | $ | 1,665 |
Operating lease cost included in lease operating expense | 396 |  |  | 815 |
Short-term lease cost (drilling rig costs included in proved oil and gas properties) | 20,527 |  |  | 33,334 |
| $ | 22,569 |  |  | $ | 35,814 |
Summary of Liabilities Under Contract Contain Operating Leases | The maturities of Comstock's operating lease obligations are as follows:
| (In thousands)
2021 | $ | 2,366 |
2022 | 562 |
2023 | 196 |
Total lease payments | 3,124 |
Imputed interest | (99) |
Total lease liability | $ | 3,025 |
Summary of Accrued Expenses | Accrued expenses at December 31, 2019 and 2020 consist of the following:
| As of December 31,
| 2019 |  | 2020
| (In thousands)
Accrued interest payable | $ | 39,501 |  |  | $ | 67,265 |
Accrued drilling costs | 42,193 |  |  | 24,959 |
Accrued transportation costs | 26,907 |  |  | 25,353 |
Accrued transaction costs | 10,830 |  |  | 462 |
Accrued employee compensation | 8,653 |  |  | 7,519 |
Accrued lease operating expenses | 4,990 |  |  | 3,466 |
Other | 4,092 |  |  | 3,995 |
| $ | 137,166 |  |  | $ | 133,019 |
Summary of Changes in Reserve for Future Abandonment Costs | The following table summarizes the changes in the Company's total estimated liability:
|  | Year Ended December 31,
|  | 2019 |  | 2020
|  | (In thousands)
Reserve for future abandonment costs at beginning of the year |  | $ | 5,136 |  |  | $ | 18,151 |
Wells acquired |  | 5,700 |  |  | — |
New wells placed on production |  | 516 |  |  | 733 |
Changes in estimates and timing |  | 6,333 |  |  | (699) |
Liabilities settled |  | (57) |  |  | (80) |
Asset divestitures |  | (45) |  |  | — |
Accretion expense |  | 568 |  |  | 1,185 |
Reserve for future abandonment costs at end of the year |  | $ | 18,151 |  |  | $ | 19,290 |
Schedule of Unvested Restricted Stock | Weighted average shares of unvested restricted stock included in common stock outstanding were as follows:
| Predecessor |  |  | Successor
| For the Period from January 1, 2018 through August 13, 2018 |  |  | For the Period from August 14, 2018 through December 31, 2018 |  | Year Ended December 31, 2019 |  | Year Ended December 31, 2020
Unvested restricted stock (in thousands) | 839 |  |  | 410 |  | 685 |  | 1,149
Common Stock and Convertible Stock Dilutive in Computation of Earning Per Share | A ll stock options, unvested PSUs, warrants exercisable into common stock and contingently issuable shares related to the convertible debt that were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share were as follows:
| Predecessor |  |  | Successor
| For the Period from January 1, 2018 through August 13, 2018 |  |  | For the Period from August 14, 2018 through December 31, 2018 |  | Year Ended December 31, 2019 |  | Year Ended December 31, 2020
| (In thousands)
Weighted average PSUs | 476 |  |  |  | 328 |  |  | — |  |  | 632 |
Weighted average grant date fair value per unit | $ | 13.83 |  |  |  | $ | 12.93 |  |  | $ | — |  |  | $ | 9.33 |
Weighted average convertible preferred stock | — |  |  |  | — |  |  | — |  |  | 63,832 |
Weighted average warrants for common stock | 142 |  |  |  | — |  |  | — |  |  | — |
Weighted average exercise price per share | $ | 0.01 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Weighted average contingently convertible shares | 39,819 |  |  |  | — |  |  | — |  |  | — |
Weighted average conversion price per share | $ | 12.32 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were determined as follows:
| Predecessor |  |  | Successor
| For the Period January 1, 2018 through August 13, 2018 |  |  | For the Period from August 14, 2018 through December 31, 2018 |  | Year Ended December 31, 2019 |  | Year Ended December 31, 2020
| (In thousands, except per share amounts)
Net income (loss) attributable to common stockholders | $ | (92,754) |  |  |  | $ | 64,122 |  |  | $ | 74,474 |  |  | $ | (83,413) |
Income allocable to unvested restricted shares | — |  |  |  | (248) |  |  | (356) |  |  | — |
Basic net income (loss) attributable to common stockholders | $ | (92,754) |  |  |  | $ | 63,874 |  |  | $ | 74,118 |  |  | $ | (83,413) |
Income allocable to convertible preferred stock | — |  |  |  | — |  |  | 22,415 |  |  | — |
Diluted net income (loss) attributable to common stockholders | $ | (92,754) |  |  |  | $ | 63,874 |  |  | $ | 96,533 |  |  | $ | (83,413) |
Basic weighted average shares outstanding | 15,262 |  |  |  | 105,453 |  |  | 142,750 |  |  | 215,194 |
Effect of dilutive securities: |  |  |  |  |  |  |  |
Performance stock units | — |  |  |  | — |  |  | 63 |  |  | — |
Convertible preferred stock | — |  |  |  | — |  |  | 44,565 |  |  | — |
Stock warrants | — |  |  |  | 6 |  |  | — |  |  | — |
Diluted weighted average shares outstanding | 15,262 |  |  |  | 105,459 |  |  | 187,378 |  |  | 215,194 |
Basic income (loss) per share | $ | (6.08) |  |  |  | $ | 0.61 |  |  | $ | 0.52 |  |  | $ | (0.39) |
Diluted income (loss) per share | $ | (6.08) |  |  |  | $ | 0.61 |  |  | $ | 0.52 |  |  | $ | (0.39) |
Cash Payments Made for Interest and Income Taxes | Cash payments made for interest and income taxes and other non-cash investing and financing activities were as follows:
| Predecessor |  |  | Successor
| For the Period from January 1, 2018 through August 13, 2018 |  |  | For the Period from August 14, 2018 through December 31, 2018 |  | Year Ended December 31, 2019 |  | Year Ended December 31, 2020
| (In thousands)
Cash payments for: |  |  |  |  |  |  |  |
Interest payments | $ | 36,187 |  |  |  | $ | 8,042 |  |  | $ | 149,039 |  |  | $ | 228,555 |
Income tax (payments) refunds | $ | (2) |  |  |  | $ | — |  |  | $ | (2) |  |  | $ | 10,218 |
Non-cash investing activities include: |  |  |  |  |  |  |  |
Increase (decrease) in accrued capital expenditures | $ | (3,255) |  |  |  | $ | 15,301 |  |  | $ | 24,273 |  |  | $ | (17,234) |
Liabilities assumed in exchange for right-of-use lease assets | $ | — |  |  |  | $ | — |  |  | $ | 5,372 |  |  | $ | 1,761 |
Non-cash investing and financing activities related to acquisitions |  |  |  |  |  |  |  |
Issuance of common stock | $ | — |  |  |  | $ | 760,829 |  |  | $ | 198,633 |  |  | $ | — |
Issuance of Series A Convertible Preferred Stock | $ | — |  |  |  | $ | — |  |  | $ | 200,000 |  |  | $ | — |
Assumed 7½% senior notes | $ | — |  |  |  | $ | — |  |  | $ | 446,625 |  |  | $ | — |
Acquired working capital | $ | — |  |  |  | $ | 36,351 |  |  | $ | 41,365 |  |  | $ | 520 |
Non-cash financing activities include: |  |  |  |  |  |  |  |
Retirement of debt in exchange for common stock | $ | — |  |  |  | $ | — |  |  | $ | — |  |  | $ | (4,151) |
Issuance of common stock in exchange for debt | $ | — |  |  |  | $ | — |  |  | $ | — |  |  | $ | 5,012 |

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