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Long-Term Debt | 6 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
Long-term debt | Note 5 - Long-Term Debt Revolving Credit Facility On April 8, 2016, the Company entered into a Sixth Amendment to the Fifth Amended and Restated Credit Agreement (the “Credit Agreement” and as amended, the “Amended Credit Agreement”) with its lenders. The Company incurred approximately $3.1 million in deferred financing costs associated with the amendment of this credit facility. The Amended Credit Agreement provides for a maximum loan amount of $2.5 billion and has a maturity date of December 10, 2019. Pursuant to the amendment, and as part of the regular, semi-annual borrowing base redetermination process, the Company’s borrowing base was reduced to $1.25 billion. This expected reduction was primarily due to the decline in commodity prices, which had resulted in a decrease in the Company’s proved reserves as of December 31, 2015. The next scheduled redetermination date is October 1, 2016. The borrowing base redetermination process considers the value of both the Company’s (a) proved oil and gas properties reflected in the Company’s most recent reserve report and (b) commodity derivative contracts, each as determined by the Company’s lender group. The amendment also reduced the aggregate lender commitments to $1.25 billion, and changed the required percentage of oil and gas properties subject to a mortgage to at least 90 percent of the total PV-9 of the Company’s proved oil and gas properties evaluated in the most recent reserve report. Further, the amendment revised certain of the Company’s covenants under the Credit Agreement and modified the borrowing base utilization grid, as discussed below. The Company must comply with certain financial and non-financial covenants under the terms of the Amended Credit Agreement, including covenants limiting dividend payments and requiring the Company to maintain certain financial ratios, as defined by the Amended Credit Agreement. Financial covenants under the Amended Credit Agreement require, as of the last day of each of the Company’s fiscal quarters, the Company’s (a) ratio of senior secured debt to 12-month trailing adjusted EBITDAX to be not more than 2.75 to 1.0; (b) adjusted current ratio to be not less than 1.0 to 1.0; and (c) ratio of 12-month trailing adjusted EBITDAX to interest expense to be not less than 2.0 to 1.0. The Company was in compliance with all financial and non-financial covenants under the Amended Credit Agreement as of June 30, 2016, and through the filing date of this report. Interest and commitment fees are accrued based on a borrowing base utilization grid set forth in the Amended Credit Agreement. Eurodollar loans accrue interest at the London Interbank Offered Rate plus the applicable margin from the utilization table below, and Alternate Base Rate (“ABR”) and swingline loans accrue interest at prime plus the applicable margin from the utilization table below. Commitment fees are accrued on the unused portion of the aggregate commitment amount and are included in interest expense in the accompanying statements of operations. Effective as of April 8, 2016, the revised borrowing base utilization grid under the Amended Credit Agreement is as follows: Borrowing Base Utilization Grid
Borrowing Base Utilization Percentage |  | <25% |  | ≥25% <50% |  | ≥50% <75% |  | ≥75% <90% |  | ≥90%
Eurodollar Loans |  | 1.750 | % |  | 2.000 | % |  | 2.250 | % |  | 2.500 | % |  | 2.750 | %
ABR Loans or Swingline Loans |  | 0.750 | % |  | 1.000 | % |  | 1.250 | % |  | 1.500 | % |  | 1.750 | %
Commitment Fee Rate |  | 0.300 | % |  | 0.300 | % |  | 0.350 | % |  | 0.375 | % |  | 0.375 | %
The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Amended Credit Agreement as of July 27, 2016, and June 30, 2016, and under the Credit Agreement as of December 31, 2015:
| As of July 27, 2016 |  | As of June 30, 2016 |  | As of December 31, 2015
| (in thousands)
Credit facility balance (1) | $ | 330,000 |  |  | $ | 330,500 |  |  | $ | 202,000 |
Letters of credit (2) | $ | 200 |  |  | $ | 200 |  |  | $ | 200 |
Available borrowing capacity | $ | 919,800 |  |  | $ | 919,300 |  |  | $ | 1,297,800 |
____________________________________________ (1) Deferred financing costs attributable to the credit facility are presented as a component of other noncurrent assets on the accompanying balance sheets and thus are not deducted from the credit facility balance. (2) Letters of credit outstanding reduce the amount available under the credit facility on a dollar-for-dollar basis. Senior Notes The Company’s Senior Notes consist of 6.50% Senior Notes due 2021, 6.125% Senior Notes due 2022, 6.50% Senior Notes due 2023, 5.0% Senior Notes due 2024, and 5.625% Senior Notes due 2025 (collectively referred to as “Senior Notes”). The Senior Notes, net of unamortized deferred financing costs line on the accompanying balance sheets as of June 30, 2016, and December 31, 2015, consisted of the following:
| As of June 30, 2016 |  | As of December 31, 2015
| Senior Notes |  | Unamortized Deferred Financing Costs |  | Senior Notes, Net of Unamortized Deferred Financing Costs |  | Senior Notes |  | Unamortized Deferred Financing Costs |  | Senior Notes, Net of Unamortized Deferred Financing Costs
| (in thousands)
6.50% Senior Notes due 2021 | $ | 346,955 |  |  | $ | 3,721 |  |  | $ | 343,234 |  |  | $ | 350,000 |  |  | $ | 4,106 |  |  | $ | 345,894 |
6.125% Senior Notes due 2022 | 561,796 |  |  | 7,569 |  |  | 554,227 |  |  | 600,000 |  |  | 8,714 |  |  | 591,286 |
6.50% Senior Notes due 2023 | 394,985 |  |  | 4,801 |  |  | 390,184 |  |  | 400,000 |  |  | 5,231 |  |  | 394,769 |
5.0% Senior Notes due 2024 | 500,000 |  |  | 6,994 |  |  | 493,006 |  |  | 500,000 |  |  | 7,455 |  |  | 492,545 |
5.625% Senior Notes due 2025 | 500,000 |  |  | 8,071 |  |  | 491,929 |  |  | 500,000 |  |  | 8,524 |  |  | 491,476 |
Total | $ | 2,303,736 |  |  | $ | 31,156 |  |  | $ | 2,272,580 |  |  | $ | 2,350,000 |  |  | $ | 34,030 |  |  | $ | 2,315,970 |
The Senior Notes are unsecured senior obligations and rank equal in right of payment with all of the Company’s existing and any future unsecured senior debt, and are senior in right of payment to any future subordinated debt. There are no subsidiary guarantors of the Senior Notes. The Company is subject to certain covenants under the indentures governing the Senior Notes that limit the Company’s ability to incur additional indebtedness, issue preferred stock, and make restricted payments, including dividends; however, the first $6.5 million of dividends paid each year are not restricted by the restricted payment covenant. The Company was in compliance with all covenants under its Senior Notes as of June 30, 2016, and through the filing date of this report. The Company may redeem some or all of its Senior Notes prior to their maturity at redemption prices based on a premium plus accrued and unpaid interest as described in the indentures governing the Senior Notes. During the first quarter of 2016, the Company repurchased in open market transactions a total of $46.3 million in aggregate principal amount of its 6.50% Senior Notes due 2021, 6.125% Senior Notes due 2022, and 6.50% Senior Notes due 2023 for a settlement amount of $29.9 million, excluding interest. Of the $29.9 million settlement amount, $10.0 million related to purchases during the first quarter of 2016, in which the related cash settlement occurred during the three months ended June 30, 2016. The Company recorded a net gain on extinguishment of debt of approximately $15.7 million for the six months ended June 30, 2016. This amount includes a gain of $16.4 million associated with the discount realized upon repurchase, which was partially offset by approximately $700,000 related to the acceleration of unamortized deferred financing costs. The Company accounted for the repurchases under the extinguishment method of accounting. The Company canceled all repurchased notes upon cash settlement.

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