Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.20.2
Subsequent Events
9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Hedging
Subsequent to September 30, 2020, the Company entered into the following derivative contracts:
For the Full Year
Oil contracts (WTI) of 2021
   Collar contracts
   Total volume (Bbls) 4,769,525 
   Weighted average price per Bbl
   Ceiling (short call) $48.22 
   Floor (long put) $38.44 
For the Full Year
Natural gas contracts (Waha basis differential) of 2021
   Swap contracts
      Total volume (MMBtu) 3,650,000 
      Weighted average price per MMBtu ($0.25)
Additionally, subsequent to September 30, 2020, the Company terminated 1,908,675 Bbls of Argus WTI-Houston fixed price oil swaps at a weighted average price of $39.78 per Bbl, certain of which were terminated contemporaneously with entering into the WTI collars above. The Company also terminated 424,150 Bbls of ICE Brent fixed price oil swaps at a weighted average price of $40.00 per Bbl, resulting in neither cash receipts or payments.
Non-operated sale
On November 2, 2020, the Company closed the sale of substantially all of its non-operated assets. See “Note 3 - Acquisitions and Divestitures” for additional details.
Senior Note Exchange
On November 2, 2020, the Company entered into an Exchange Agreement (the “Exchange Agreement”) with certain holders (the “Holders”) of the Company’s 6.25% Senior Notes, 6.125% Senior Notes, 8.25% Senior Notes due 2025 (the “8.25% Senior Notes”), and 6.375% Senior Notes due 2026 (the “6.375% Senior Notes”, and together with the 6.25% Senior Notes, 6.125% Senior Notes, and 8.25% Senior Notes, the “Senior Unsecured Notes”). Pursuant to the Exchange Agreement, the Company has agreed to exchange $286.0 million of aggregate principal amount of Senior Unsecured Notes held by the Holders for $158.5 million aggregate principal amount of newly issued 9.00% Second Lien Senior Secured Notes due 2025 (the “New Notes”) at exchange ratios of $650, $575, $480 and $460 per $1,000 principal amount of 6.25% Senior Notes, 6.125% Senior Notes, 8.25% Senior Notes, and 6.375% Senior Notes, respectively, tendered (the “Exchange Ratios”).
Pursuant to the Exchange Agreement, the Company has also agreed to issue to the Holders approximately 1.16 million warrants exercisable for shares of common stock, with a term of 5 years and an exercise price of $5.60 per share, exercisable only on a net share settlement basis. The Holders and their affiliates may elect to include in the exchange up to an additional $104.0 million of Senior Unsecured Notes for New Notes at the Exchange Ratios set forth above. In the event the aggregate principal amount of Senior Unsecured Notes exchanged for New Notes at closing is greater than $286.0 million, the Company will increase proportionally the number of warrants to be issued to the Holders up to a warrant eligibility cap of $375.3 million. The maximum number of warrants issuable to the Holders is approximately 1.76 million.