Quarterly report pursuant to Section 13 or 15(d)

Change in Accounting Principle (Tables)

v3.23.3
Change in Accounting Principle (Tables)
 9 Months Ended
Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]  
Schedule of Effects of the Change to the Successful Efforts Method
The following tables present the effects of the change to the successful efforts method in the consolidated balance sheets:
As of September 30, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Oil and natural gas properties:
Proved properties $11,191,350  ($1,947,545) $9,243,805 
Accumulated depreciation, depletion, amortization and impairments (6,734,174) 2,306,145  (4,428,029)
Unproved properties 1,807,300  (520,281) 1,287,019 
Total oil and gas properties, net 6,264,476  (161,681) 6,102,795 
Deferred income taxes 170,001  29,733  199,734 
Total assets $6,860,471  ($131,948) $6,728,523 
Stockholders’ equity:
Accumulated deficit (232,855) (131,948) (364,803)
Total stockholders' equity 3,993,006  (131,948) 3,861,058 
Total liabilities and stockholders' equity $6,860,471  ($131,948) $6,728,523 
As of December 31, 2022
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Oil and natural gas properties:
Proved properties $10,367,478  ($1,099,343) $9,268,135 
Accumulated depreciation, depletion, amortization and impairments (6,343,875) 1,927,269  (4,416,606)
Unproved properties 1,711,306  (485,538) 1,225,768 
Total oil and gas properties, net 5,734,909  342,388  6,077,297 
Total assets $6,146,081  $342,388  $6,488,469 
Deferred income taxes (1)
4,279  2,029  6,308 
Stockholders’ equity:
Accumulated deficit (937,388) 340,359  (597,029)
Total stockholders' equity 3,085,422  340,359  3,425,781 
Total liabilities and stockholders' equity $6,146,081  $342,388  $6,488,469 
(1)    Included in “Other long-term liabilities” in the consolidated balance sheets.
The following tables present the effects of the change to the successful efforts method in the consolidated statements of operations:
Three Months Ended September 30, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands, except per share amounts)
Operating Expenses:
Exploration $—  $3,588  $3,588 
Depreciation, depletion and amortization 138,313  285  138,598 
Gain on sale of oil and gas properties
 —  (20,570) (20,570)
General and administrative 22,016  7,323  29,339 
Income From Operations
 211,554  9,374  220,928 
Other Expenses:
Interest expense 14,145  29,004  43,149 
Income Before Income Taxes 139,623  (19,630) 119,993 
Income tax benefit (expense)
 10,663  (11,172) (509)
Net Income $150,286  ($30,802) $119,484 
Net Income Per Common Share:
Basic $2.21  $1.76 
Diluted $2.21  $1.75 
Three Months Ended September 30, 2022
Under
Full Cost		 Changes Under Successful Efforts
(In thousands, except per share amounts)
Operating Expenses:
Exploration $—  $2,942  $2,942 
Depreciation, depletion and amortization 122,833  7,062  129,895 
General and administrative 14,022  10,231  24,253 
Income From Operations 440,597  (20,235) 420,362 
Other Expenses:
Interest expense 19,468  27,461  46,929 
Income Before Income Taxes 553,118  (47,696) 505,422 
Income tax expense (3,515) 132  (3,383)
Net Income $549,603  ($47,564) $502,039 
Net Income Per Common Share:
Basic $8.91  $8.14 
Diluted $8.88  $8.11 
Nine Months Ended September 30, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands, except per share amounts)
Operating Expenses:
Exploration $—  $7,702  $7,702 
Depreciation, depletion and amortization 396,348  (4,437) 391,911 
Impairment of oil and gas properties —  406,898  406,898 
Gain on sale of oil and gas properties
 —  (20,570) (20,570)
General and administrative 56,305  30,600  86,905 
Income From Operations
 602,555  (420,193) 182,362 
Other Expenses:
Interest expense 52,818  83,876  136,694 
Income Before Income Taxes 529,897  (504,069) 25,828 
Income tax benefit 174,636  31,762  206,398 
Net Income $704,533  ($472,307) $232,226 
Net Income Per Common Share:
Basic $11.04  $3.64 
Diluted $11.01  $3.63 
Nine Months Ended September 30, 2022
Under
Full Cost		 Changes Under Successful Efforts
(In thousands, except per share amounts)
Operating Expenses:
Exploration $—  $7,237  $7,237 
Depreciation, depletion and amortization 335,221  24,273  359,494 
General and administrative 42,052  29,433  71,485 
Income From Operations 1,356,719  (60,943) 1,295,776 
Other Expenses:
Interest expense 61,717  79,303  141,020 
Income Before Income Taxes 944,357  (140,246) 804,111 
Income tax expense (7,008) 472  (6,536)
Net Income $937,349  ($139,774) $797,575 
Net Income Per Common Share:
Basic $15.21  $12.94 
Diluted $15.14  $12.88 
The following tables present the effects of the change to the successful efforts method in the consolidated statements of cash flows:

 Nine Months Ended September 30, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Cash flows from operating activities:
Net income $704,533  ($472,307) $232,226 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 396,348  (4,437) 391,911 
Impairment of oil and gas properties —  406,898  406,898 
Amortization of non-cash debt related items, net 3,064  4,915  7,979 
Deferred income tax benefit (174,279) (31,762) (206,041)
Gain on sale of oil and gas properties
 —  (20,570) (20,570)
Non-cash expense related to share-based awards 3,848  5,676  9,524 
Net cash provided by operating activities 905,850  (111,587) 794,263 
Cash flows from investing activities:
Capital expenditures (854,889) 103,885  (751,004)
Acquisition of oil and gas properties (286,136) 7,702  (278,434)
Net cash used in investing activities (592,429) 111,587  (480,842)
Net change in cash and cash equivalents 61  —  61 
Balance, beginning of period 3,395  —  3,395 
Balance, end of period $3,456  $—  $3,456 
Nine Months Ended September 30, 2022
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Cash flows from operating activities:
Net income $937,349  ($139,774) $797,575 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 335,221  24,273  359,494 
Amortization of non-cash debt related items, net 4,263  5,417  9,680 
Deferred income tax expense
 1,626  (516) 1,110 
Non-cash expense related to share-based awards 1,055  3,372  4,427 
Changes in current assets and liabilities:
Accounts payable and accrued liabilities (8,693) 44  (8,649)
Net cash provided by operating activities 1,128,870  (107,184) 1,021,686 
Cash flows from investing activities:
Capital expenditures (754,225) 106,076  (648,149)
Acquisition of oil and gas properties (18,114) 1,108  (17,006)
Net cash used in investing activities (768,700) 107,184  (661,516)
Net change in cash and cash equivalents (5,532) —  (5,532)
Balance, beginning of period 9,882  —  9,882 
Balance, end of period $4,350  $—  $4,350 
The following tables present the effects of the change to the successful efforts method in the consolidated statements of stockholders’ equity:
As of September 30, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Accumulated deficit ($232,855) ($131,948) ($364,803)
Total stockholders’ equity $3,993,006  ($131,948) $3,861,058 
As of December 31, 2022
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Accumulated deficit ($937,388) $340,359  ($597,029)
Total stockholders’ equity $3,085,422  $340,359  $3,425,781