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 |
|
|