Annual report pursuant to Section 13 and 15(d)

Change in Accounting Principle (Tables)

v3.24.0.1
Change in Accounting Principle (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Changes and Error Corrections [Abstract]  
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 December 31, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Oil and natural gas properties:
Proved properties $11,661,279  ($2,004,174) $9,657,105 
Accumulated depreciation, depletion, amortization and impairments (6,881,323) 2,311,191  (4,570,132)
Unproved properties 1,559,952  (496,919) 1,063,033 
Total oil and gas properties, net 6,339,908  (189,902) 6,150,006 
Deferred income taxes 136,144  44,819  180,963 
Total assets $6,856,559  ($145,083) $6,711,476 
Stockholders’ equity:
Accumulated deficit (50,745) (145,083) (195,828)
Total stockholders' equity 4,136,444  (145,083) 3,991,361 
Total liabilities and stockholders' equity $6,856,559  ($145,083) $6,711,476 
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:
Year Ended December 31, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands, except per share amounts)
Operating Expenses:
Exploration $—  $9,143  $9,143 
Depreciation, depletion and amortization 545,144  (9,483) 535,661 
Impairment of oil and gas properties —  406,898  406,898 
Gain on sale of oil and gas properties —  (23,476) (23,476)
General and administrative 77,464  37,880  115,344 
Income From Operations 784,840  (420,962) 363,878 
Other Expenses:
Interest expense 67,977  111,328  179,305 
Income Before Income Taxes 743,683  (532,290) 211,393 
Income tax benefit 142,960  46,848  189,808 
Net Income $886,643  ($485,442) $401,201 
Net Income Per Common Share:
Basic $13.71  $6.20 
Diluted $13.67  $6.19 
Year Ended December 31, 2022
Under
Full Cost		 Changes Under Successful Efforts
(In thousands, except per share amounts)
Operating Expenses:
Exploration $—  $9,703  $9,703 
Depreciation, depletion and amortization 466,517  27,712  494,229 
Impairment of oil and gas properties —  2,201  2,201 
General and administrative 57,393  40,603  97,996 
Income From Operations 1,680,532  (80,219) 1,600,313 
Other Expenses:
Interest expense 79,667  108,125  187,792 
Income Before Income Taxes 1,221,609  (188,344) 1,033,265 
Income tax expense (11,793) (2,029) (13,822)
Net Income $1,209,816  ($190,373) $1,019,443 
Net Income Per Common Share:
Basic $19.63  $16.54 
Diluted $19.54  $16.47 
Year Ended December 31, 2021
Under
Full Cost		 Changes Under Successful Efforts
(In thousands, except per share amounts)
Operating Expenses:
Exploration $—  $6,470  $6,470 
Depreciation, depletion and amortization 356,556  32,056  388,612 
Impairment of oil and gas properties —  52,295  52,295 
General and administrative 50,483  41,122  91,605 
Income From Operations 1,038,343  (131,943) 906,400 
Other Expenses:
Interest expense 102,012  99,647  201,659 
Income Before Income Taxes 365,331  (231,590) 133,741 
Income tax expense (180) —  (180)
Net Income $365,151  ($231,590) $133,561 
Net Income Per Common Share:
Basic $7.51  $2.75 
Diluted $7.26  $2.65 
The following tables present the effects of the change to the successful efforts method in the consolidated statements of cash flows:

 Year Ended December 31, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Cash flows from operating activities:
Net income $886,643  ($485,442) $401,201 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 545,144  (9,483) 535,661 
Impairment of oil and gas properties —  406,898  406,898 
Amortization of non-cash debt related items, net 4,064  6,726  10,790 
Deferred income tax benefit (140,422) (46,848) (187,270)
Gain on sale of oil and gas properties —  (23,476) (23,476)
Non-cash expense related to share-based awards 4,019  7,394  11,413 
Net cash provided by operating activities 1,236,760  (144,231) 1,092,529 
Cash flows from investing activities:
Capital expenditures (1,104,070) 135,088  (968,982)
Acquisition of oil and gas properties (297,082) 9,143  (287,939)
Net cash used in investing activities (851,542) 144,231  (707,311)
Net change in cash and cash equivalents (70) —  (70)
Balance, beginning of period 3,395  —  3,395 
Balance, end of period $3,325  $—  $3,325 
Year Ended December 31, 2022
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Cash flows from operating activities:
Net income $1,209,816  ($190,373) $1,019,443 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 466,517  27,712  494,229 
Impairment of oil and gas properties
 —  2,201  2,201 
Amortization of non-cash debt related items, net 5,280  7,052  12,332 
Deferred income tax expense 4,279  2,029  6,308 
Non-cash expense related to share-based awards 2,507  5,535  8,042 
Net cash provided by operating activities 1,501,517  (145,844) 1,355,673 
Cash flows from investing activities:
Capital expenditures (992,985) 144,297  (848,688)
Acquisition of oil and gas properties (28,253) 1,547  (26,706)
Net cash used in investing activities (999,027) 145,844  (853,183)
Net change in cash and cash equivalents (6,487) —  (6,487)
Balance, beginning of period 9,882  —  9,882 
Balance, end of period $3,395  $—  $3,395 
Year Ended December 31, 2021
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Cash flows from operating activities:
Net income $365,151  ($231,590) $133,561 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 356,556  32,056  388,612 
Impairment of oil and gas properties
 —  52,295  52,295 
Amortization of non-cash debt related items, net 10,124  9,909  20,033 
Deferred income tax expense —  —  — 
Non-cash expense related to share-based awards 12,923  12,934  25,857 
Net cash provided by operating activities 974,143  (124,396) 849,747 
Cash flows from investing activities:
Capital expenditures (578,487) 124,126  (454,361)
Acquisition of oil and gas properties (493,732) 270  (493,462)
Net cash used in investing activities (876,400) 124,396  (752,004)
Net change in cash and cash equivalents (10,354) —  (10,354)
Balance, beginning of period 20,236  —  20,236 
Balance, end of period $9,882  $—  $9,882 

The following tables present the effects of the change to the successful efforts method in the consolidated statements of stockholders’ equity:
As of December 31, 2023
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Accumulated deficit ($50,745) ($145,083) ($195,828)
Total stockholders’ equity $4,136,444  ($145,083) $3,991,361 
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 
As of December 31, 2021
Under
Full Cost		 Changes Under Successful Efforts
(In thousands)
Accumulated deficit ($2,147,204) $530,732  ($1,616,472)
Total stockholders’ equity $1,865,768  $530,732  $2,396,500