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Long-Term Debt | 12 Months Ended
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Dec. 31, 2021
Debt Disclosure [Abstract] |
Long-Term Debt | Note 5 – Long-Term Debt The following table summarizes the Company’s total outstanding balance on its revolving credit facility, Senior Secured Notes net of unamortized discount and deferred financing costs, and Senior Unsecured Notes net of unamortized deferred financing costs, as of December 31, 2021, and 2020:
| As of December 31, 2021 |  | As of December 31, 2020
| (in thousands)
Revolving credit facility | $ | — |  |  | $ | 93,000 |
Senior Secured Notes (1) | 407,712 |  |  | 460,656 |
Senior Unsecured Notes (1) | 1,673,452 |  |  | 1,660,663 |
Total | $ | 2,081,164 |  |  | $ | 2,214,319 |
____________________________________________ (1) Senior Secured Notes and Senior Unsecured Notes are defined below. Credit Agreement The Company’s Credit Agreement, which is scheduled to mature on September 28, 2023, provides for a senior secured revolving credit facility with a maximum loan amount of $2.5 billion. As of December 31, 2021, the borrowing base and aggregate lender commitments under the Credit Agreement were $1.1 billion. The next borrowing base redetermination date is scheduled for April 1, 2022. On June 8, 2021, the Company entered into a sixth amendment to the Credit Agreement which amended certain definitions and covenants relating to the Company's ability to issue permitted refinancing debt and to repurchase or redeem outstanding indebtedness to facilitate the Tender Offer and the 2022 Senior Notes Redemption, each as defined below. Interest and commitment fees associated with the revolving credit facility are accrued based on a borrowing base utilization grid set forth in the Credit Agreement, as presented in the table below. At the Company’s election, borrowings under the Credit Agreement may be in the form of Eurodollar, Alternate Base Rate (“ABR”), or Swingline loans. Eurodollar loans accrue interest at LIBOR, plus the applicable margin from the utilization grid, and ABR and Swingline loans accrue interest at a market-based floating rate, plus the applicable margin from the utilization grid. Commitment fees are accrued on the unused portion of the aggregate lender commitment amount at rates from the utilization grid and are included in the interest expense line item on the accompanying statements of operations.
Borrowing Base Utilization Percentage |  | <25% |  | ≥25% <50% |  | ≥50% <75% |  | ≥75% <90% |  | ≥90%
Eurodollar Loans (1) |  | 1.750 | % |  | 2.000 | % |  | 2.500 | % |  | 2.750 | % |  | 3.000 | %
ABR Loans or Swingline Loans |  | 0.750 | % |  | 1.000 | % |  | 1.500 | % |  | 1.750 | % |  | 2.000 | %
Commitment Fee Rate |  | 0.375 | % |  | 0.375 | % |  | 0.500 | % |  | 0.500 | % |  | 0.500 | %
____________________________________________ (1) LIBOR was discontinued as a global reference rate for new loans and contracts after December 31, 2021. The Credit Agreement specifies that if LIBOR is no longer a widely used benchmark rate, or if it is no longer used for determining interest rates for loans in the United States, a replacement interest rate that fairly reflects the cost to the lenders of funding loans shall be established by the Administrative Agent, as defined in the Credit Agreement, in consultation with the Company. During 2022, in advance of the maturity date of the Company’s existing Credit Agreement, the Company expects to enter into a new credit agreement that will, in addition to other negotiated terms, conditions, agreements, and other provisions, specify a new interest rate for Eurodollar loans. The Company does not expect to incur borrowings in the form of Eurodollar loans prior to that time. Please refer to Note 1 – Summary of Significant Accounting Policies for discussion of FASB ASU 2020-04 and ASU 2021-01, which provide guidance related to reference rate reform. The following table presents the outstanding balance, total amount of letters of credit outstanding, and available borrowing capacity under the Credit Agreement as of February 10, 2022, December 31, 2021, and December 31, 2020:
| As of February 10, 2022 |  | As of December 31, 2021 |  | As of December 31, 2020
| (in thousands)
Revolving credit facility (1) | $ | — |  |  | $ | — |  |  | $ | 93,000 |
Letters of credit (2) | 2,500 |  |  | 2,500 |  |  | 42,000 |
Available borrowing capacity | 1,097,500 |  |  | 1,097,500 |  |  | 965,000 |
Total aggregate lender commitment amount | $ | 1,100,000 |  |  | $ | 1,100,000 |  |  | $ | 1,100,000 |
____________________________________________ (1) Unamortized deferred financing costs attributable to the revolving credit facility are presented as a component of the other noncurrent assets line item on the accompanying balance sheets and totaled $2.7 million and $4.3 million as of December 31, 2021, and 2020, respectively. These costs are being amortized over the term of the revolving credit facility on a straight-line basis. (2) Letters of credit outstanding reduce the amount available under the revolving credit facility on a dollar-for-dollar basis. Senior Secured Notes Senior Secured Notes, net of unamortized discount and deferred financing costs, included within the Senior Notes, net line item on the accompanying balance sheets as of December 31, 2021, and December 31, 2020, consisted of the following (collectively referred to as “Senior Secured Notes”):
| As of December 31, 2021
| Principal Amount |  | Unamortized Debt Discount |  | Unamortized Deferred Financing Costs |  | Net
| (in thousands)
10.0% Senior Secured Notes due 2025 | $ | 446,675 |  |  | $ | 30,236 |  |  | $ | 8,727 |  |  | $ | 407,712 |
| As of December 31, 2020
| Principal Amount |  | Unamortized Debt Discount |  | Unamortized Deferred Financing Costs |  | Net
| (in thousands)
1.50% Senior Secured Convertible Notes due 2021 | $ | 65,485 |  |  | $ | 1,828 |  |  | $ | 175 |  |  | $ | 63,482 |
10.0% Senior Secured Notes due 2025 | 446,675 |  |  | 37,943 |  |  | 11,558 |  |  | 397,174 |
Total | $ | 512,160 |  |  | $ | 39,771 |  |  | $ | 11,733 |  |  | $ | 460,656 |
The Senior Secured Notes listed above are senior obligations of the Company, secured on a second-priority basis, ranking junior to the Company’s obligations under the Credit Agreement. The Senior Secured Notes rank senior in right of payment with all of the Company’s existing and any future unsecured senior or subordinated debt. 2021 Senior Secured Convertible Notes. On August 12, 2016, the Company issued $172.5 million in aggregate principal amount of 1.50% Senior Convertible Notes with a maturity date of July 1, 2021 (“2021 Senior Convertible Notes”). Upon issuance of the 2021 Senior Convertible Notes, the Company received net proceeds of $166.6 million after deducting fees of $5.9 million, of which a portion was amortized over the life of the 2021 Senior Convertible Notes. The Company recorded $132.3 million as the initial carrying amount of the debt component, which approximated its fair value at issuance, and was estimated by using an interest rate for nonconvertible debt with terms similar to the Senior Convertible Notes. The effective interest rate used was 7.25%. The $40.2 million excess of the principal amount of the 2021 Senior Convertible Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The Company incurred fees of $5.9 million relating to the issuance of the 2021 Senior Convertible Notes, which were allocated between the debt and equity components in proportion to their determined fair value amounts. In connection with the issuance of the 2021 Senior Convertible Notes, the Company entered into capped call transactions with affiliates of the underwriters of such issuance. The aggregate cost of the capped call transactions was approximately $24.2 million. The Company classified the costs associated with the capped call transactions as equity instruments with no recurring fair value measurement recorded. The capped call transactions expired upon the maturity of the 2021 Senior Convertible Notes on July 1, 2021. During the second quarter of 2020, the Company agreed to satisfy any conversion obligation solely in cash, resulting in the reclassification of the fair value of the equity components related to the debt discount and the capped call transactions out of additional paid-in capital. The debt discount and debt-related issuance costs were amortized to the principal value of the 2021 Senior Secured Convertible Notes as interest expense through the maturity date. Interest expense recognized on the 2021 Senior Secured Convertible Notes related to the stated interest rate and amortization of the debt discount and totaled $2.3 million, $7.7 million, and $11.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. Upon the closing of the Exchange Offers on June 17, 2020, the Company retired $107.0 million in aggregate principal amount of its 2021 Senior Convertible Notes and at that time, the remaining outstanding 2021 Senior Convertible Notes became secured and are subsequently referred to as “2021 Senior Secured Convertible Notes”. The Company canceled all 2021 Senior Convertible Notes that were retired upon closing of the Exchange Offers. See below for additional discussion and definition of Exchange Offers. On July 1, 2021, the Company used borrowings under its revolving credit facility to retire, at par, the remaining outstanding principal amount of $65.5 million. 2025 Senior Secured Notes. On June 17, 2020, the Company issued $446.7 million in aggregate principal amount of 10.0% Senior Secured Notes (“2025 Senior Secured Notes”), at par, which mature on January 15, 2025. The Company incurred fees of $13.1 million, which are being amortized as deferred financing costs over the life of the 2025 Senior Secured Notes. Upon the issuance of the 2025 Senior Secured Notes, the Company recorded $405.0 million as the initial carrying amount, which approximated their fair value at issuance. The excess of the principal amount of the 2025 Senior Secured Notes over its fair value was recorded as a debt discount. The debt discount and deferred financing costs are being amortized to interest expense through the maturity date. The Company may redeem some or all of its 2025 Senior Secured Notes prior to their maturity at redemption prices based on a premium, plus accrued and unpaid interest, as described in the indenture governing the 2025 Senior Secured Notes. Senior Unsecured Notes Senior Unsecured Notes, net of unamortized deferred financing costs, included within the Senior Notes, net line item on the accompanying balance sheets as of December 31, 2021, and 2020, consisted of the following:
| As of December 31, 2021 |  | As of December 31, 2020
| Principal Amount |  | Unamortized Deferred Financing Costs |  | Principal Amount, Net |  | Principal Amount |  | Unamortized Deferred Financing Costs |  | Principal Amount, Net
| (in thousands)
6.125% Senior Notes due 2022 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 212,403 |  |  | $ | 855 |  |  | $ | 211,548 |
5.0% Senior Notes due 2024 | 104,769 |  |  | 403 |  |  | 104,366 |  |  | 277,034 |  |  | 1,576 |  |  | 275,458 |
5.625% Senior Notes due 2025 | 349,118 |  |  | 2,160 |  |  | 346,958 |  |  | 349,118 |  |  | 2,792 |  |  | 346,326 |
6.75% Senior Notes due 2026 | 419,235 |  |  | 3,270 |  |  | 415,965 |  |  | 419,235 |  |  | 3,970 |  |  | 415,265 |
6.625% Senior Notes due 2027 | 416,791 |  |  | 3,949 |  |  | 412,842 |  |  | 416,791 |  |  | 4,725 |  |  | 412,066 |
6.5% Senior Notes due 2028 | 400,000 |  |  | 6,679 |  |  | 393,321 |  |  | — |  |  | — |  |  | — |
Total | $ | 1,689,913 |  |  | $ | 16,461 |  |  | $ | 1,673,452 |  |  | $ | 1,674,581 |  |  | $ | 13,918 |  |  | $ | 1,660,663 |
The senior unsecured notes listed above (collectively referred to as “Senior Unsecured Notes,” and together with the Senior Secured Notes, “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. The Company may redeem some or all of its Senior Unsecured 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 Unsecured Notes. Fees incurred upon issuance of each series of Senior Unsecured Notes are being amortized as deferred financing costs over the life of the respective notes, unless earlier redeemed or retired, in which case amortization has been proportionately accelerated. 2022 Senior Notes. On November 17, 2014, the Company issued $600.0 million in aggregate principal amount of 6.125% Senior Notes due 2022, at par, which mature on November 15, 2022 (“2022 Senior Notes”). The Company received net proceeds of $590.0 million after deducting fees of $10.0 million. 2024 Senior Notes. On May 20, 2013, the Company issued $500.0 million in aggregate principal amount of 5.0% Senior Notes due 2024, at par, which mature on January 15, 2024 (“2024 Senior Notes”). The Company received net proceeds of $490.2 million after deducting fees of $9.8 million. 2025 Senior Notes. On May 21, 2015, the Company issued $500.0 million in aggregate principal amount of 5.625% Senior Notes due 2025, at par, which mature on June 1, 2025. The Company received net proceeds of $491.0 million after deducting fees of $9.0 million. 2026 Senior Notes. On September 12, 2016, the Company issued $500.0 million in aggregate principal amount of 6.75% Senior Notes due 2026, at par, which mature on September 15, 2026. The Company received net proceeds of $491.6 million after deducting fees of $8.4 million. 2027 Senior Notes. On August 20, 2018, the Company issued $500.0 million in aggregate principal amount of 6.625% Senior Notes due 2027, at par, which mature on January 15, 2027. The Company received net proceeds of $492.1 million after deducting fees of $7.9 million. 2028 Senior Notes. On June 23, 2021, the Company issued $400.0 million in aggregate principal amount of 6.5% Senior Notes due 2028, at par, which mature on July 15, 2028 (“2028 Senior Notes”). The Company received net proceeds of $392.8 million after deducting fees of $7.2 million. Senior Notes Activity 2022 Senior Notes Transactions. On February 14, 2022, the Company redeemed the remaining $104.8 million of aggregate principal amount outstanding of its 2024 Senior Notes, with cash on hand, pursuant to the terms of the indenture governing the 2024 Senior Notes which provided for a redemption price equal to 100 percent of the principal amount of the 2024 Senior Notes on the date of redemption, plus accrued and unpaid interest. Upon redemption, the Company accelerated the amortization of all remaining previously unamortized deferred financing costs. 2021 Senior Notes Transactions. On June 23, 2021, the Company issued $400.0 million in aggregate principal amount of its 2028 Senior Notes, as described above. The net proceeds of $392.8 million were used to repurchase $193.1 million and $172.3 million of outstanding principal amount of the Company’s 2022 Senior Notes and 2024 Senior Notes, respectively, through a cash tender offer (“Tender Offer”), and to redeem the remaining $19.3 million of 2022 Senior Notes not repurchased as part of the Tender Offer (“2022 Senior Notes Redemption”). The Company paid total consideration, excluding accrued interest, of $385.3 million, and recorded a net loss on extinguishment of debt of $2.1 million for the year ended December 31, 2021, which included the accelerated amortization of $1.5 million of previously unamortized deferred financing costs and $0.6 million of net premiums. The Company canceled all repurchased and redeemed 2022 Senior Notes and 2024 Senior Notes upon settlement. 2020 Senior Notes Transactions. During the second quarter of 2020, the Company initiated an offer to exchange certain of its then outstanding Senior Unsecured Notes, other than its 2021 Senior Convertible Notes, (and together with the Senior Unsecured Notes, “Old Notes”), and entered into a private exchange of certain of its then outstanding 2021 Senior Convertible Notes and portions of its then outstanding Senior Unsecured Notes (“Private Exchange”), in each case, for newly issued 2025 Senior Secured Notes, referred to together as “Exchange Offers.” On June 17, 2020, the Company exchanged $611.9 million in aggregate principal amount of Senior Unsecured Notes and $107.0 million in aggregate principal amount of 2021 Senior Convertible Notes for $446.7 million in aggregate principal amount of 2025 Senior Secured Notes. Further, in connection with the Private Exchange, the Company tendered $53.5 million in cash to certain holders of the 2021 Senior Convertible Notes and issued the Warrants. Please refer to Note 3 - Equity for more information regarding the Warrants. Upon the closing of the Exchange Offers, the Company recorded a net gain on extinguishment of debt of $227.3 million which included the accelerated amortization of $6.1 million and $5.6 million of previously unamortized debt discount and deferred financing costs, respectively. Upon the closing of the Exchange Offers, the Company retired $611.9 million in aggregate principal amount of its Senior Unsecured Notes. Portions of the then-outstanding principal amount of each series of our Senior Unsecured Notes listed below were tendered and retired in connection with the Exchange Offers. The following table summarizes the principal amounts of the Senior Unsecured Notes tendered as of the Settlement Date:
Title of Senior Unsecured Notes Tendered |  | Principal Amount of Senior Unsecured Notes Tendered
|  | (in thousands)
6.125% Senior Notes due 2022 |  | $ | 141,701 |
5.0% Senior Notes due 2024 |  | 155,339 |
5.625% Senior Notes due 2025 |  | 150,882 |
6.75% Senior Notes due 2026 |  | 80,765 |
6.625% Senior Notes due 2027 |  | 83,209 |
Total |  | $ | 611,896 |
The Company canceled all Senior Unsecured Notes that were retired upon closing of the Exchange Offers. Additionally, during 2020, in open market transactions, the Company repurchased a total of $122.7 million and $67.6 million in aggregate principal amount of its 2022 Senior Notes and 2024 Senior Notes, respectively, for a total settlement amount, excluding accrued interest, of $136.5 million. In connection with the repurchases, the Company recorded a net gain on extinguishment of debt of $52.8 million for the year ended December 31, 2020. This amount included discounts realized upon repurchase of $53.8 million partially offset by approximately $1.0 million related to the accelerated amortization of previously unamortized deferred financing costs. The Company canceled all repurchased 2022 Senior Notes and 2024 Senior Notes upon settlement. Covenants The Company is subject to certain financial and non-financial covenants under the Credit Agreement and the indentures governing the Senior Notes that, among other terms, limit the Company’s ability to incur additional indebtedness, make restricted payments including dividends, sell assets, create liens that secure debt, enter into transactions with affiliates, merge or consolidate with another company, and with respect to the Company’s restricted subsidiaries, permit the consensual restriction on the ability of such restricted subsidiaries to pay dividends or indebtedness owing to the Company or to any other restricted subsidiaries. The financial covenants under the Credit Agreement require that the Company’s (a) total funded debt, as defined in the Credit Agreement, to 12-month trailing adjusted EBITDAX ratio cannot be greater than 4.00 to 1.00 on the last day of each fiscal quarter; and (b) adjusted current ratio, as defined in the Credit Agreement, cannot be less than 1.00 to 1.00 as of the last day of any fiscal quarter. The Company was in compliance with all covenants under the Credit Agreement and the indentures governing the Senior Notes as of December 31, 2021, and through the filing of this report. Capitalized Interest Capitalized interest costs for the years ended December 31, 2021, 2020, and 2019, totaled $15.0 million, $15.8 million, and $18.5 million, respectively. The amount of interest the Company capitalizes generally fluctuates based on the amount borrowed, the Company’s capital program, and the timing and amount of costs associated with capital projects that are considered in progress. Capitalized interest costs are included in total costs incurred. Please refer to Costs Incurred in Overview of the Company in Part II, Item 7, and Supplemental Oil and Gas Information (unaudited) in Part II, Item 8 of this report.

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