XML 44 R23.htm IDEA: XBRL DOCUMENT v3.22.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Other Current Assets
Other current assets at December 31, 2022 and 2021 consist of the following:
As of December 31,
20222021
(In thousands)
Pipe and well equipment inventory$34,819 $5,015 
Production tax refunds receivable11,156 7,879 
Prepaid drilling costs4,265 — 
Accrued proceeds from sale of oil and gas properties3,118 — 
Prepaid expenses2,455 2,183 
Other511 — 
$56,324 $15,077 
Reconciliation of Beginning and Ending Balances for Derivative Instruments
The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy:
Year Ended December 31,
2021
(In thousands)
Balance at beginning of year$(22,588)
Total gains (losses) included in earnings(162,421)
Settlements, net58,448 
Transfers out of Level 3126,561 
Balance at end of year$— 
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, 2022 and 2021:
As of December 31,
20222021
Carrying ValueFair ValueCarrying ValueFair Value
Assets:(In thousands)
Commodity-based derivatives (1)
$23,884 $23,884 $5,258 $5,258 
Liabilities:
Commodity-based derivatives (1)
4,420 4,420 185,987 185,987 
Bank credit facility (2)
— — 235,000 235,000 
7.50% senior notes due 2025 (3)
— — 196,998 248,066 
6.75% senior notes due 2029 (3)
1,229,836 1,129,029 1,256,874 1,337,500 
5.875% senior notes due 2030 (3)
965,000 846,788 965,000 989,125 
_______________
(1)The Company's commodity-based derivatives 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. 
(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, 2022 and 2021, respectively, a Level 1 measurement.
Capitalized Exploratory Well Costs The changes in capitalized exploratory well costs are as follows:
Year Ended December 31,
20222021
(in thousands)
Beginning capitalized exploratory project costs$6,966 $— 
Additions to exploratory well costs pending the determination of proved reserves63,520 6,966 
Determined to have found proved reserves(69,619)— 
Ending capitalized exploratory well costs$867 $6,966 
Summary of Lease Cost Recognized
Lease costs recognized during the years ended December 31, 2022, 2021 and 2020 were as follows:
Year Ended December 31,
202220212020
(In thousands)
Operating lease cost included in general and administrative expense$1,749 $1,732 $1,665 
Operating lease cost included in lease operating expense1,383 879 815 
Operating lease cost included in proved oil and gas properties25,200 — — 
Variable lease cost (completion costs included in proved oil and gas properties)25,095 — — 
Short-term lease cost (drilling rig costs included in proved oil and gas properties)62,077 32,735 33,334 
$115,504 $35,346 $35,814 
Summary of Liabilities Under Contract Contain Operating Leases
(In thousands)
2023$41,007 
202440,609 
202513,004 
202688 
202717 
Total lease payments94,725 
Imputed interest(3,929)
Total lease liability$90,796 
Summary of Accrued Expenses
Accrued expenses at December 31, 2022 and 2021 consist of the following:
As of December 31,
20222021
(In thousands)
Accrued interest payable$54,867 $60,305 
Accrued drilling costs54,438 19,995 
Accrued income and other taxes31,256 15,655 
Accrued transportation costs28,357 22,859 
Accrued employee compensation11,308 12,320 
Accrued lease operating expenses2,412 2,036 
Other473 1,856 
$183,111 $135,026 
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,
20222021
(In thousands)
Reserve for future abandonment costs at beginning of the year$25,673 $19,290 
New wells placed on production1,537 1,994 
Acquisitions1,211 637 
Changes in estimates and timing182 3,008 
Liabilities settled(80)(31)
Divestitures(944)(466)
Accretion expense1,535 1,241 
Reserve for future abandonment costs at end of the year$29,114 $25,673 
Schedule of Unvested Restricted Stock
Weighted average shares of unvested restricted stock outstanding were as follows:
Year Ended December 31,
202220212020
(in thousands)
Unvested restricted stock926 1,057 1,149 
Antidilutive Securities In Computation of Earnings per Share The treasury stock method is used to measure the dilutive effect of PSUs.
Year Ended December 31,
202220212020
(In thousands, except per unit amounts)
Weighted average PSUs925 1,146 1,044 
Weighted average grant date fair value per unit$15.11 $8.11 $9.33 
Year Ended December 31,
202220212020
(In thousands)
Weighted average convertible preferred stock40,034 43,750 63,832 
Basic and Diluted Earnings Per Share
Basic and diluted income (loss) per share were determined as follows:
Year Ended December 31,
202220212020
(In thousands, except per share amounts)
Net income (loss) available to common stockholders$1,124,868 $(259,225)$(83,413)
Income allocable to unvested restricted stock(4,278)— — 
Basic net income (loss) available to common stockholders$1,120,590 $(259,225)$(83,413)
Income allocable to convertible preferred stock16,014 — — 
Income allocable to unvested restricted stock4,278 — — 
Diluted net income (loss) available to common stockholders$1,140,882 $(259,225)$(83,413)
Basic weighted average shares outstanding236,045 231,633 215,194 
Effect of dilutive securities:
PSUs911 — — 
Restricted stock475 — — 
Convertible preferred stock40,034 — — 
Diluted weighted average shares outstanding277,465 231,633 215,194 
Basic income (loss) per share$4.75 $(1.12)$(0.39)
Diluted income (loss) per share$4.11 $(1.12)$(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:
Year Ended December 31,
202220212020
(In thousands)
Cash payments for:
Interest$166,275 $203,742 $228,555 
Income tax payments (refunds)$16,524 $149 $(10,218)
Non-cash investing activities include:
Increase (decrease) in accrued capital expenditures$34,443 $(4,964)$(17,234)
Liabilities assumed in exchange for right-of-use lease assets$110,090 $5,847 $1,761 
Non-cash investing and financing activities related to acquisitions:
Acquired working capital$— $— $520 
Non-cash financing activities include:
Conversion of preferred stock into common stock$175,000 $— $— 
Retirement of debt in exchange for common stock$— $— $(4,151)
Issuance of common stock in exchange for debt$— $— $5,012