Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.20.2
Subsequent Events
6 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Hedging
Subsequent to June 30, 2020, the Company entered into the following derivative contracts:
For the Remainder For the Full Year
Oil contracts (WTI) of 2020 of 2021
   Swap contracts
   Total volume (Bbls) —    1,377,000   
   Weighted average price per Bbl $—    $42.00   
   Collar contracts
   Total volume (Bbls) —    3,741,250   
   Weighted average price per Bbl
         Ceiling (short call) $—    $45.02   
         Floor (long put) $—    $40.00   
   Short call swaption contracts
   Total volume (Bbls) —    730,000   
(1)
   Weighted average price per Bbl $—    $47.00   
Oil contracts (Midland basis differential)
   Long swap contracts
   Total volume (Bbls) 1,514,500    —   
   Weighted average price per Bbl $0.60    $—   
Natural gas contracts (Henry Hub)
   Swap contracts
      Total volume (MMBtu) 3,036,000    —   
      Weighted average price per MMBtu $1.80    $—   
   Long call contracts
   Total volume (MMBtu) 3,036,000    —   
   Weighted average price per MMBtu $3.50    $—   
Natural gas contracts (Waha basis differential)
   Swap contracts
      Total volume (MMBtu) —    6,387,500   
      Weighted average price per MMBtu $—    ($0.58)  

(1) The short call swaption contract has an exercise expiration date of October 30, 2020.
Reverse Stock Split
On August 4, 2020, the Company announced that its Board of Directors approved a reverse stock split of Company’s outstanding shares of common stock at a ratio of 1-for-10 and a proportionate reduction of the total number of authorized shares of the Company’s common stock pursuant to an amendment to the Company’s Certificate of Incorporation, which was approved by the Company’s shareholders at the Company’s annual meeting of shareholders on June 8, 2020. The reverse stock split will become effective as of the close of business on August 7, 2020 and the Company’s common stock will begin trading on a split-adjusted basis on the NYSE at market open on August 10, 2020. The par value of the common stock will not be adjusted in connection with the reverse stock split.
The reverse stock split is intended to, among other things, increase the per share trading price of the Company’s common shares to maintain compliance with the $1.00 minimum closing price requirement for continued listing on the NYSE and improve the opportunity for institutional ownership. Upon completion of the reverse stock split, each 10 pre-split shares of common stock outstanding will be automatically combined into one issued and outstanding share of common stock. The fractional shares that resulted from the reverse stock split were canceled, and shareholders who would otherwise hold fractional shares as a result of the reverse stock split will be entitled to receive cash (without interest and subject to applicable withholding taxes) in lieu of such fractional shares. The number of outstanding shares of common stock will be reduced from approximately 397,476,674 as of July 31, 2020 to approximately 39,747,667 shares (without giving effect to the liquidation of fractional shares). The total number of shares of common stock that the Company is authorized to issue will be reduced from 525,000,000 to 52,500,000 shares.