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:
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As of June 30, 2023 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands) |
Current assets: |
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Assets held for sale |
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$— |
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$606,614 |
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$606,614 |
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Oil and natural gas properties: |
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Proved properties |
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10,949,991 |
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(2,442,302) |
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8,507,689 |
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Accumulated depreciation, depletion, amortization and impairments |
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(6,597,479) |
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2,306,431 |
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(4,291,048) |
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Unproved properties |
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1,784,428 |
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(581,260) |
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1,203,168 |
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Total oil and gas properties, net |
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6,136,940 |
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(717,131) |
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5,419,809 |
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Deferred income taxes |
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157,629 |
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40,905 |
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198,534 |
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Total assets |
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$6,666,704
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($101,146) |
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$6,565,558
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Stockholders’ equity: |
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Accumulated deficit |
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(383,141) |
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(101,146) |
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(484,287) |
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Total stockholders' equity |
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3,643,818
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(101,146) |
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3,542,672
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Total liabilities and stockholders' equity |
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$6,666,704
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($101,146) |
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$6,565,558
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As of December 31, 2022 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands) |
Oil and natural gas properties: |
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Proved properties |
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$10,367,478 |
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($1,099,343) |
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$9,268,135 |
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Accumulated depreciation, depletion, amortization and impairments |
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(6,343,875) |
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1,927,269 |
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(4,416,606) |
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Unproved properties |
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1,711,306 |
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(485,538) |
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1,225,768 |
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Total oil and gas properties, net |
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5,734,909 |
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342,388 |
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6,077,297 |
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Total assets |
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$6,146,081
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$342,388
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$6,488,469
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Deferred income taxes (1)
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4,279 |
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2,029 |
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6,308 |
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Stockholders’ equity: |
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Accumulated deficit |
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(937,388) |
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340,359 |
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(597,029) |
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Total stockholders' equity |
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3,085,422
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340,359
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3,425,781
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Total liabilities and stockholders' equity |
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$6,146,081
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$342,388
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$6,488,469
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(1) Included in “Other long-term liabilities” in the consolidated balance sheets.
The following tables present the effects of the change to the successful efforts method in the consolidated statements of operations:
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Three Months Ended June 30, 2023 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands, except per share data) |
Operating Expenses: |
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Exploration |
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$— |
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$1,882 |
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$1,882 |
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Depreciation, depletion and amortization |
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135,135 |
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(7,787) |
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127,348 |
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Impairment of oil and gas properties |
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— |
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406,898 |
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406,898 |
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General and administrative |
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17,149 |
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12,619 |
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29,768 |
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Income (Loss) From Operations |
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190,856
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(413,612) |
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(222,756) |
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Other Expenses: |
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Interest expense |
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19,520 |
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27,719 |
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47,239 |
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Income (Loss) Before Income Taxes |
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177,223
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(441,331) |
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(264,108) |
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Income tax benefit |
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88,653 |
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67,559 |
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156,212 |
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Net Income (Loss) |
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$265,876
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($373,772) |
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($107,896) |
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Net Income (Loss) Per Common Share: |
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Basic |
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$4.30 |
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($1.74) |
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Diluted |
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$4.30 |
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($1.74) |
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Three Months Ended June 30, 2022 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands, except per share data) |
Operating Expenses: |
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Exploration |
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$— |
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$2,410 |
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$2,410 |
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Depreciation, depletion and amortization |
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109,409 |
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6,547 |
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115,956 |
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General and administrative |
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10,909 |
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9,266 |
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20,175 |
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Income From Operations |
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496,825
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(18,223) |
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478,602
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Other Expenses: |
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Interest expense |
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20,691 |
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26,304 |
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46,995 |
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Income Before Income Taxes |
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351,018
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(44,527) |
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306,491
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Income tax expense |
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(3,009) |
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(231) |
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(3,240) |
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Net Income |
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$348,009
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($44,758) |
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$303,251
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Net Income Per Common Share: |
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Basic |
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$5.64 |
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$4.92 |
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Diluted |
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$5.62 |
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$4.90 |
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Six Months Ended June 30, 2023 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands, except per share data) |
Operating Expenses: |
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Exploration |
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$— |
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$4,114 |
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$4,114 |
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Depreciation, depletion and amortization |
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258,035 |
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(4,722) |
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253,313 |
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Impairment of oil and gas properties |
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— |
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406,898 |
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406,898 |
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General and administrative |
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34,290 |
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23,276 |
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57,566 |
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Income (Loss) From Operations |
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391,001
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(429,567) |
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(38,566) |
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Other Expenses: |
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Interest expense |
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38,673 |
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54,872 |
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93,545 |
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Income (Loss) Before Income Taxes |
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390,273
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(484,438) |
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(94,165) |
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Income tax benefit |
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163,973 |
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42,934 |
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206,907 |
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Net Income |
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$554,246
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($441,504) |
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$112,742
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Net Income Per Common Share: |
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Basic |
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$8.98 |
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$1.83 |
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Diluted |
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$8.95 |
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$1.82 |
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Six Months Ended June 30, 2022 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands, except per share data) |
Operating Expenses: |
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Exploration |
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$— |
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$4,295 |
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$4,295 |
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Depreciation, depletion and amortization |
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212,388 |
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17,211 |
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229,599 |
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General and administrative |
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28,030 |
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19,202 |
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47,232 |
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Income From Operations |
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916,122
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(40,708) |
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875,414
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Other Expenses: |
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Interest expense |
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42,249 |
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51,842 |
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94,091 |
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Income Before Income Taxes |
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391,239
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(92,550) |
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298,689
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Income tax expense |
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(3,493) |
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340 |
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(3,153) |
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Net Income |
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$387,746
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($92,210) |
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$295,536
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Net Income Per Common Share: |
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Basic |
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$6.30 |
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$4.80 |
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Diluted |
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$6.26 |
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$4.77 |
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The following tables present the effects of the change to the successful efforts method in the consolidated statements of cash flows:
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Six Months Ended June 30, 2023 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands) |
Cash flows from operating activities: |
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Net income |
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$554,246 |
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($441,504) |
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$112,742 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation, depletion and amortization |
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258,035 |
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(4,722) |
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253,313 |
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Impairment of oil and gas properties |
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— |
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406,898 |
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406,898 |
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Amortization of non-cash debt related items, net |
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2,168 |
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3,077 |
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5,245 |
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Deferred income tax benefit |
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(161,907) |
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(42,934) |
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(204,841) |
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Non-cash expense related to share-based awards |
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2,124 |
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3,445 |
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5,569 |
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Net cash provided by operating activities |
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603,175
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(75,740) |
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527,435
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Cash flows from investing activities: |
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Capital expenditures |
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(570,223) |
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71,626 |
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(498,597) |
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Acquisition of oil and gas properties |
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(18,564) |
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4,114 |
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(14,450) |
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Net cash used in investing activities |
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(624,312) |
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|
75,740
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(548,572) |
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Net change in cash and cash equivalents |
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255 |
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— |
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255 |
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Balance, beginning of period |
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3,395 |
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— |
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3,395 |
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Balance, end of period |
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$3,650
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$—
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$3,650
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Six Months Ended June 30, 2022 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands) |
Cash flows from operating activities: |
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Net income |
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$387,746 |
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($92,210) |
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$295,536 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation, depletion and amortization |
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212,388 |
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17,211 |
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229,599 |
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Amortization of non-cash debt related items, net |
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3,201 |
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|
3,920 |
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|
7,121 |
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Non-cash expense related to share-based awards |
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956 |
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|
1,730 |
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|
2,686 |
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Changes in current assets and liabilities: |
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Accounts payable and accrued liabilities |
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(18,940) |
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(340) |
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(19,280) |
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Net cash provided by operating activities |
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653,595
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(69,689) |
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|
583,906
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Cash flows from investing activities: |
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Capital expenditures |
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(413,939) |
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|
69,058 |
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(344,881) |
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Acquisition of oil and gas properties |
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(15,945) |
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|
631 |
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(15,314) |
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Net cash used in investing activities |
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(435,756) |
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|
69,689
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(366,067) |
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Net change in cash and cash equivalents |
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(3,782) |
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|
— |
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(3,782) |
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Balance, beginning of period |
|
9,882 |
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|
— |
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|
9,882 |
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Balance, end of period |
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$6,100
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|
$—
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|
$6,100
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The following tables present the effects of the change to the successful efforts method in the consolidated statements of stockholders’ equity:
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As of June 30, 2023 |
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Under Full Cost |
|
Changes |
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Under Successful Efforts |
|
|
(In thousands) |
Accumulated deficit |
|
($383,141) |
|
|
($101,146) |
|
|
($484,287) |
|
Total stockholders’ equity |
|
$3,643,818 |
|
|
($101,146) |
|
|
$3,542,672 |
|
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|
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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 |
|
|