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 March 31, 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) |
Oil and natural gas properties: |
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Proved properties |
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$10,647,471 |
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($1,107,849) |
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$9,539,622 |
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Accumulated depreciation, depletion, amortization and impairments |
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(6,464,299) |
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1,924,204 |
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(4,540,095) |
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Unproved properties |
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1,744,649 |
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(517,074) |
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1,227,575 |
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Total oil and gas properties, net |
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5,927,821 |
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299,281 |
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6,227,102 |
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Deferred income taxes |
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72,323 |
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(26,654) |
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45,669 |
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Total assets |
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$6,379,038
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$272,627
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$6,651,665
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Stockholders’ equity: |
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Accumulated deficit |
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(649,018) |
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272,627 |
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(376,391) |
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Total stockholders' equity |
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3,377,131
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272,627
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3,649,758
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Total liabilities and stockholders' equity |
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$6,379,038
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$272,627
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$6,651,665
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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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$6,488,469
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(1) Included in “Other long-term liabilities” in the consolidated balance sheets.
The following tables present the effects of the change to the successful efforts method in the consolidated statements of operations:
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Three Months Ended March 31, 2023 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands, except per share data) |
Operating Expenses: |
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Exploration |
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$— |
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$2,232 |
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$2,232 |
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Depreciation, depletion and amortization |
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122,900 |
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3,065 |
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125,965 |
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General and administrative |
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17,140 |
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10,658 |
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27,798 |
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Income From Operations |
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200,145
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(15,955) |
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184,190
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Other Expenses: |
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Interest expense |
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19,153 |
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27,153 |
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46,306 |
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Income Before Income Taxes |
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213,050
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(43,107) |
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169,943
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Income tax benefit (expense) |
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75,320 |
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(24,625) |
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50,695 |
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Net Income |
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$288,370
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($67,732) |
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$220,638
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Net Income Per Common Share: |
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Basic |
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$4.68 |
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$3.58 |
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Diluted |
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$4.66 |
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$3.57 |
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Three Months Ended March 31, 2022 |
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Under Full Cost |
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Changes |
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Under Successful Efforts |
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(In thousands, except per share data) |
Operating Expenses: |
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Exploration |
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$— |
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$1,885 |
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$1,885 |
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Depreciation, depletion and amortization |
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102,979 |
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10,664 |
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113,643 |
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General and administrative |
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17,121 |
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9,936 |
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27,057 |
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Income From Operations |
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419,297
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(22,485) |
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396,812
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Other Expenses: |
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Interest expense |
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21,558 |
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25,538 |
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47,096 |
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Income (Loss) Before Income Taxes |
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40,221
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(48,023) |
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(7,802) |
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Income tax benefit (expense) |
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(484) |
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571 |
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87 |
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Net Income (Loss) |
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$39,737
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($47,452) |
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($7,715) |
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Net Income (Loss) Per Common Share: |
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Basic |
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$0.65 |
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($0.13) |
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Diluted |
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$0.64 |
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($0.13) |
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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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Three Months Ended March 31, 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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$288,370 |
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($67,732) |
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$220,638 |
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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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122,900 |
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3,065 |
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125,965 |
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Amortization of non-cash debt related items, net |
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1,088 |
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1,543 |
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2,631 |
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Deferred income tax benefit |
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(76,602) |
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24,625 |
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(51,977) |
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Non-cash expense related to share-based awards |
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757 |
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1,124 |
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1,881 |
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Net cash provided by operating activities |
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285,288
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(37,375) |
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247,913
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Cash flows from investing activities: |
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Capital expenditures |
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(240,043) |
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35,143 |
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(204,900) |
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Acquisition of oil and gas properties |
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(8,223) |
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2,232 |
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(5,991) |
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Net cash used in investing activities |
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(247,284) |
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37,375
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(209,909) |
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Net change in cash and cash equivalents |
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(25) |
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— |
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(25) |
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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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$3,370
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$—
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$3,370
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Three Months Ended March 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) |
Cash flows from operating activities: |
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Net income (loss) |
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$39,737 |
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($47,452) |
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($7,715) |
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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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102,979 |
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10,664 |
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113,643 |
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Amortization of non-cash debt related items, net |
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1,716 |
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2,033 |
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3,749 |
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Non-cash expense related to share-based awards |
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4,166 |
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1,877 |
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6,043 |
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Changes in current assets and liabilities: |
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Accounts payable and accrued liabilities |
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(12,987) |
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(571) |
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(13,558) |
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Net cash provided by operating activities |
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281,270
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(33,449) |
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247,821
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Cash flows from investing activities: |
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Capital expenditures |
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(201,478) |
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33,208 |
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(168,270) |
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Acquisition of oil and gas properties |
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(9,409) |
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241 |
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(9,168) |
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Net cash used in investing activities |
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(221,939) |
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33,449
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(188,490) |
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Net change in cash and cash equivalents |
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(5,732) |
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— |
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(5,732) |
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Balance, beginning of period |
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9,882 |
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— |
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9,882 |
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Balance, end of period |
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$4,150
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$—
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$4,150
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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 March 31, 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) |
Accumulated deficit |
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($649,018) |
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$272,627 |
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($376,391) |
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Total stockholders’ equity |
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$3,377,131 |
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$272,627 |
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$3,649,758 |
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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) |
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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