|
Delaware
|
|
47-5381253
|
|||
(State of Incorporation)
|
|
(I.R.S. Employer Identification Number)
|
|||
|
|
|
|
|
|
1001 Seventeenth Street,
|
Suite 1800,
|
Denver,
|
Colorado
|
|
80202
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Class A Common Stock, par value $0.0001 per share
|
|
CDEV
|
|
The NASDAQ Stock Market LLC
|
Large accelerated filer
|
|
Accelerated filer
|
|
Non-accelerated filer
|
|
Smaller reporting company
|
|
Emerging growth company
|
☒
|
|
☐
|
|
☐
|
|
☐
|
|
☐
|
|
|
|
|
Page
|
|
|
||
|
|
||
|
|
||
|
|
|
|
|
|||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
•
|
our business strategy and future drilling plans;
|
•
|
our reserves and our ability to replace the reserves we produce through drilling and property acquisitions;
|
•
|
our drilling prospects, inventories, projects and programs;
|
•
|
our financial strategy, liquidity and capital required for our development program;
|
•
|
our realized oil, natural gas and NGL prices;
|
•
|
the timing and amount of our future production of oil, natural gas and NGLs;
|
•
|
our hedging strategy and results;
|
•
|
our competition and government regulations;
|
•
|
our ability to obtain permits and governmental approvals;
|
•
|
our pending legal or environmental matters;
|
•
|
the marketing and transportation of our oil, natural gas and NGLs;
|
•
|
our leasehold or business acquisitions;
|
•
|
cost of developing our properties;
|
•
|
our anticipated rate of return;
|
•
|
general economic conditions;
|
•
|
credit markets;
|
•
|
uncertainty regarding our future operating results; and
|
•
|
our plans, objectives, expectations and intentions contained in this Quarterly Report that are not historical.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
28,444
|
|
|
$
|
18,157
|
|
Accounts receivable, net
|
121,546
|
|
|
100,623
|
|
||
Derivative instruments
|
174
|
|
|
1,632
|
|
||
Prepaid and other current assets
|
9,848
|
|
|
9,777
|
|
||
Total current assets
|
160,012
|
|
|
130,189
|
|
||
Property and Equipment
|
|
|
|
||||
Oil and natural gas properties, successful efforts method
|
|
|
|
||||
Unproved properties
|
1,574,668
|
|
|
1,680,065
|
|
||
Proved properties
|
3,435,804
|
|
|
2,895,280
|
|
||
Accumulated depreciation, depletion and amortization
|
(698,526
|
)
|
|
(496,900)
|
|
||
Total oil and natural gas properties, net
|
4,311,946
|
|
|
4,078,445
|
|
||
Other property and equipment, net
|
11,580
|
|
|
8,837
|
|
||
Total property and equipment, net
|
4,323,526
|
|
|
4,087,282
|
|
||
Noncurrent assets
|
|
|
|
||||
Operating lease right-of-use assets
|
23,161
|
|
|
—
|
|
||
Other noncurrent assets
|
28,628
|
|
|
42,550
|
|
||
TOTAL ASSETS
|
$
|
4,535,327
|
|
|
$
|
4,260,021
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
267,437
|
|
|
$
|
240,575
|
|
Derivative instruments
|
14,347
|
|
|
6,051
|
|
||
Operating lease liabilities
|
18,875
|
|
|
—
|
|
||
Other current liabilities
|
924
|
|
|
1,090
|
|
||
Total current liabilities
|
301,583
|
|
|
247,716
|
|
||
Noncurrent liabilities
|
|
|
|
||||
Long-term debt, net
|
881,353
|
|
|
691,630
|
|
||
Asset retirement obligations
|
14,113
|
|
|
13,895
|
|
||
Deferred income taxes
|
65,832
|
|
|
62,167
|
|
||
Operating lease liabilities
|
5,203
|
|
|
—
|
|
||
Other long-term liabilities
|
—
|
|
|
744
|
|
||
Total liabilities
|
1,268,084
|
|
|
1,016,152
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
|
|
||
Shareholders’ equity
|
|
|
|
||||
Preferred stock, $0.0001 par value, 1,000,000 shares authorized:
|
|
|
|
||||
Series A: 1 share issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.0001 par value, 620,000,000 shares authorized:
|
|
|
|
||||
Class A: 266,254,971 shares issued and 264,431,567 shares outstanding at June 30, 2019 and 265,859,273 shares issued and 264,323,328 shares outstanding at December 31, 2018
|
27
|
|
|
27
|
|
||
Class C (Convertible): 12,003,183 shares issued and outstanding at June 30, 2019 and December 31, 2018
|
1
|
|
|
1
|
|
||
Additional paid-in capital
|
2,846,520
|
|
|
2,833,611
|
|
||
Retained earnings
|
276,303
|
|
|
266,538
|
|
||
Total shareholders’ equity
|
3,122,851
|
|
|
3,100,177
|
|
||
Noncontrolling interest
|
144,392
|
|
|
143,692
|
|
||
Total equity
|
3,267,243
|
|
|
3,243,869
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
4,535,327
|
|
|
$
|
4,260,021
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil and gas sales
|
$
|
244,239
|
|
|
$
|
217,763
|
|
|
$
|
458,808
|
|
|
$
|
433,661
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lease operating expenses
|
34,885
|
|
|
19,182
|
|
|
64,747
|
|
|
35,458
|
|
||||
Severance and ad valorem taxes
|
17,186
|
|
|
14,208
|
|
|
33,306
|
|
|
28,381
|
|
||||
Gathering, processing and transportation expenses
|
16,243
|
|
|
15,296
|
|
|
31,267
|
|
|
29,124
|
|
||||
Depreciation, depletion and amortization
|
112,114
|
|
|
74,946
|
|
|
208,672
|
|
|
140,956
|
|
||||
Impairment and abandonment expense
|
4,418
|
|
|
1,784
|
|
|
35,682
|
|
|
1,784
|
|
||||
Exploration expense
|
3,861
|
|
|
1,867
|
|
|
6,377
|
|
|
5,314
|
|
||||
General and administrative expenses
|
18,435
|
|
|
13,809
|
|
|
36,553
|
|
|
28,106
|
|
||||
Total operating expenses
|
207,142
|
|
|
141,092
|
|
|
416,604
|
|
|
269,123
|
|
||||
Net gain (loss) on sale of long-lived assets
|
9
|
|
|
(141
|
)
|
|
7
|
|
|
(126
|
)
|
||||
Income from operations
|
37,106
|
|
|
76,530
|
|
|
42,211
|
|
|
164,412
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
(14,437
|
)
|
|
(5,791
|
)
|
|
(24,597
|
)
|
|
(11,604
|
)
|
||||
Net gain (loss) on derivative instruments
|
2,128
|
|
|
16,697
|
|
|
(3,743
|
)
|
|
24,540
|
|
||||
Other income (expense)
|
133
|
|
|
(14
|
)
|
|
259
|
|
|
(17
|
)
|
||||
Total other income (expense)
|
(12,176
|
)
|
|
10,892
|
|
|
(28,081
|
)
|
|
12,919
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes
|
24,930
|
|
|
87,422
|
|
|
14,130
|
|
|
177,331
|
|
||||
Income tax expense
|
(5,928
|
)
|
|
(19,940
|
)
|
|
(3,665
|
)
|
|
(39,077
|
)
|
||||
Net income
|
19,002
|
|
|
67,482
|
|
|
10,465
|
|
|
138,254
|
|
||||
Less: Net income attributable to noncontrolling interest
|
1,125
|
|
|
3,941
|
|
|
700
|
|
|
8,623
|
|
||||
Net income attributable to Class A Common Stock
|
$
|
17,877
|
|
|
$
|
63,541
|
|
|
$
|
9,765
|
|
|
$
|
129,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income per share of Class A Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.07
|
|
|
$
|
0.24
|
|
|
$
|
0.04
|
|
|
$
|
0.49
|
|
Diluted
|
$
|
0.07
|
|
|
$
|
0.24
|
|
|
$
|
0.04
|
|
|
$
|
0.49
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
10,465
|
|
|
$
|
138,254
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, depletion and amortization
|
208,672
|
|
|
140,956
|
|
||
Stock-based compensation expense
|
13,241
|
|
|
8,988
|
|
||
Impairment and abandonment expense
|
35,682
|
|
|
1,784
|
|
||
Exploratory dry hole costs
|
—
|
|
|
395
|
|
||
Deferred tax expense
|
3,665
|
|
|
39,077
|
|
||
Net (gain) loss on sale of long-lived assets
|
(7
|
)
|
|
126
|
|
||
Non-cash portion of derivative (gain) loss
|
9,754
|
|
|
(19,016
|
)
|
||
Amortization of debt issuance costs and discount
|
1,287
|
|
|
806
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
(Increase) decrease in accounts receivable
|
(22,751
|
)
|
|
(16,687
|
)
|
||
(Increase) decrease in prepaid and other assets
|
(154
|
)
|
|
294
|
|
||
Increase (decrease) in accounts payable and other liabilities
|
20,340
|
|
|
28,925
|
|
||
Net cash provided by operating activities
|
280,194
|
|
|
323,902
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Acquisition of oil and natural gas properties
|
(42,264
|
)
|
|
(107,193
|
)
|
||
Drilling and development capital expenditures
|
(437,912
|
)
|
|
(469,004
|
)
|
||
Purchases of other property and equipment
|
(4,263
|
)
|
|
(3,264
|
)
|
||
Proceeds from sales of oil and natural gas properties
|
25,919
|
|
|
146,090
|
|
||
Net cash used in investing activities
|
(458,520
|
)
|
|
(433,371
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from borrowings under revolving credit facility
|
155,000
|
|
|
115,000
|
|
||
Repayment of borrowings under revolving credit facility
|
(455,000
|
)
|
|
(85,000
|
)
|
||
Proceeds from issuance of 2027 Senior Notes
|
496,175
|
|
|
—
|
|
||
Debt issuance costs
|
(7,200
|
)
|
|
(4,044
|
)
|
||
Proceeds from stock options exercised
|
—
|
|
|
575
|
|
||
Restricted stock used for tax withholdings
|
(332
|
)
|
|
(257
|
)
|
||
Net cash provided by financing activities
|
188,643
|
|
|
26,274
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
10,317
|
|
|
(83,195
|
)
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
21,422
|
|
|
125,915
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
31,739
|
|
|
$
|
42,720
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Supplemental cash flow information
|
|
|
|
||||
Cash paid for interest
|
$
|
15,799
|
|
|
$
|
1,157
|
|
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from operating leases
|
11,487
|
|
|
—
|
|
||
Investing cash flows from operating leases
|
9,906
|
|
|
—
|
|
||
Supplemental non-cash activity
|
|
|
|
||||
Accrued capital expenditures included in accounts payable and accrued expenses
|
$
|
128,807
|
|
|
$
|
97,711
|
|
Asset retirement obligations incurred, including revisions to estimates
|
714
|
|
|
659
|
|
||
Right-of-use assets obtained in exchange for operating lease liabilities
|
35,267
|
|
|
—
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash and cash equivalents
|
$
|
28,444
|
|
|
$
|
42,720
|
|
Restricted cash(1)
|
3,295
|
|
|
—
|
|
||
Total cash, cash equivalents and restricted cash
|
$
|
31,739
|
|
|
$
|
42,720
|
|
|
(1)
|
Included in Prepaid and other current assets line item on the Consolidated Balance Sheets
|
|
Common Stock
|
|
Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Class A
|
|
Class C
|
|
Series A
|
|
Additional Paid-In Capital
|
|
Retained Earnings
|
|
Total Shareholder's Equity
|
|
Non-controlling Interest
|
|
Total Equity
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||||||||
Balance at December 31, 2018
|
265,859
|
|
|
$
|
27
|
|
|
12,003
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,833,611
|
|
|
$
|
266,538
|
|
|
$
|
3,100,177
|
|
|
$
|
143,692
|
|
|
$
|
3,243,869
|
|
Restricted stock issued
|
436
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock used for tax withholding
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(291
|
)
|
|
—
|
|
|
(291
|
)
|
|
—
|
|
|
(291
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,483
|
|
|
—
|
|
|
6,483
|
|
|
—
|
|
|
6,483
|
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,112
|
)
|
|
(8,112
|
)
|
|
(425
|
)
|
|
(8,537
|
)
|
||||||||
Balance at March 31, 2019
|
266,271
|
|
|
$
|
27
|
|
|
12,003
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,839,803
|
|
|
$
|
258,426
|
|
|
$
|
3,098,257
|
|
|
$
|
143,267
|
|
|
$
|
3,241,524
|
|
Restricted stock issued
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock forfeited
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock used for tax withholding
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(41
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,758
|
|
|
—
|
|
|
6,758
|
|
|
—
|
|
|
6,758
|
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,877
|
|
|
17,877
|
|
|
1,125
|
|
|
19,002
|
|
||||||||
Balance at June 30, 2019
|
266,255
|
|
|
$
|
27
|
|
|
12,003
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,846,520
|
|
|
$
|
276,303
|
|
|
$
|
3,122,851
|
|
|
$
|
144,392
|
|
|
$
|
3,267,243
|
|
|
Common Stock
|
|
Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Class A
|
|
Class C
|
|
Series A
|
|
Additional Paid-In Capital
|
|
Retained Earnings
|
|
Total Shareholder's Equity
|
|
Non-controlling Interest
|
|
Total Equity
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||||||||
Balance at December 31, 2017
|
261,338
|
|
|
$
|
26
|
|
|
15,661
|
|
|
$
|
2
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,767,558
|
|
|
$
|
66,639
|
|
|
$
|
2,834,225
|
|
|
$
|
169,747
|
|
|
$
|
3,003,972
|
|
Restricted stock issued
|
199
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock forfeited
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock used for tax withholding
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(192
|
)
|
|
—
|
|
|
(192
|
)
|
|
—
|
|
|
(192
|
)
|
||||||||
Option exercises
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,333
|
|
|
—
|
|
|
4,333
|
|
|
—
|
|
|
4,333
|
|
||||||||
Conversion of common shares from Class C to Class A, net of tax
|
3,347
|
|
|
1
|
|
|
(3,347
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
42,188
|
|
|
—
|
|
|
42,188
|
|
|
(35,519
|
)
|
|
6,669
|
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,090
|
|
|
66,090
|
|
|
4,682
|
|
|
70,772
|
|
||||||||
Balance at March 31, 2018
|
264,858
|
|
|
$
|
27
|
|
|
12,314
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,814,051
|
|
|
$
|
132,729
|
|
|
$
|
2,946,808
|
|
|
$
|
138,910
|
|
|
$
|
3,085,718
|
|
Restricted stock issued
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock forfeited
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock used for tax withholding
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
||||||||
Option exercises
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|
—
|
|
|
411
|
|
|
—
|
|
|
411
|
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,655
|
|
|
—
|
|
|
4,655
|
|
|
—
|
|
|
4,655
|
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,541
|
|
|
63,541
|
|
|
3,941
|
|
|
67,482
|
|
||||||||
Balance at June 30, 2018
|
264,888
|
|
|
$
|
27
|
|
|
12,314
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
2,819,052
|
|
|
$
|
196,270
|
|
|
$
|
3,015,350
|
|
|
$
|
142,851
|
|
|
$
|
3,158,201
|
|
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Accrued oil and gas sales receivable, net
|
$
|
68,737
|
|
|
$
|
66,997
|
|
Joint interest billings, net
|
52,686
|
|
|
31,658
|
|
||
Other
|
123
|
|
|
1,968
|
|
||
Accounts receivable, net
|
$
|
121,546
|
|
|
$
|
100,623
|
|
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Accounts payable
|
$
|
54,656
|
|
|
$
|
55,984
|
|
Accrued capital expenditures
|
90,917
|
|
|
75,791
|
|
||
Revenues payable
|
80,671
|
|
|
63,399
|
|
||
Accrued interest
|
20,813
|
|
|
11,129
|
|
||
Accrued employee compensation and benefits
|
6,840
|
|
|
9,757
|
|
||
Accrued expenses and other
|
13,540
|
|
|
24,515
|
|
||
Accounts payable and accrued expenses
|
$
|
267,437
|
|
|
$
|
240,575
|
|
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Credit Facility due 2023
|
$
|
—
|
|
|
$
|
300,000
|
|
|
|
|
|
||||
5.375% Senior Notes due 2026
|
400,000
|
|
|
400,000
|
|
||
6.875% Senior Notes due 2027
|
500,000
|
|
|
—
|
|
||
Unamortized debt discount
|
(3,735
|
)
|
|
—
|
|
||
Unamortized debt issuance costs on Senior Notes
|
(14,912
|
)
|
|
(8,370
|
)
|
||
Senior Notes, net
|
881,353
|
|
|
391,630
|
|
||
|
|
|
|
||||
Total long-term debt, net
|
$
|
881,353
|
|
|
$
|
691,630
|
|
(in thousands)
|
|
||
Asset retirement obligations as of January 1, 2019
|
$
|
13,895
|
|
Liabilities acquired
|
80
|
|
|
Liabilities incurred
|
714
|
|
|
Liabilities divested and settled
|
(1,014
|
)
|
|
Accretion expense
|
438
|
|
|
Asset retirement obligations as of June 30, 2019
|
$
|
14,113
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Restricted stock awards
|
$
|
3,408
|
|
|
$
|
1,989
|
|
|
$
|
6,590
|
|
|
$
|
3,764
|
|
Stock option awards
|
2,625
|
|
|
2,310
|
|
|
5,209
|
|
|
4,516
|
|
||||
Performance stock units
|
725
|
|
|
356
|
|
|
1,442
|
|
|
708
|
|
||||
Total stock-based compensation expense
|
$
|
6,758
|
|
|
$
|
4,655
|
|
|
$
|
13,241
|
|
|
$
|
8,988
|
|
|
Awards
|
|
Weighted Average Grant Date Fair Value
|
|||
Unvested balance as of December 31, 2018
|
1,535,945
|
|
|
$
|
17.88
|
|
Granted
|
440,143
|
|
|
12.48
|
|
|
Vested
|
(137,031
|
)
|
|
18.57
|
|
|
Forfeited
|
(15,652
|
)
|
|
16.97
|
|
|
Unvested balance as of June 30, 2019
|
1,823,405
|
|
|
16.53
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Weighted average grant-date fair value per share
|
$
|
4.77
|
|
|
$
|
7.82
|
|
Expected term (in years)
|
6
|
|
|
6
|
|
||
Expected stock volatility
|
46
|
%
|
|
41
|
%
|
||
Dividend yield
|
—
|
%
|
|
—
|
%
|
||
Risk-free interest rate
|
2.4
|
%
|
|
2.5
|
%
|
|
Options
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Term
(in years)
|
|
Aggregate Intrinsic Value
(in thousands)
|
|||||
Outstanding as of December 31, 2018
|
4,559,334
|
|
|
$
|
16.55
|
|
|
|
|
|
||
Granted
|
244,000
|
|
|
10.23
|
|
|
|
|
|
|||
Exercised
|
—
|
|
|
—
|
|
|
|
|
|
|||
Forfeited
|
(33,835
|
)
|
|
15.79
|
|
|
|
|
|
|||
Expired
|
(3,666
|
)
|
|
18.23
|
|
|
|
|
|
|||
Outstanding as of June 30, 2019
|
4,765,833
|
|
|
16.23
|
|
|
7.8
|
|
$
|
—
|
|
|
Exercisable as of June 30, 2019
|
2,625,457
|
|
|
16.13
|
|
|
7.5
|
|
$
|
—
|
|
|
Period
|
|
Volume (Bbls)
|
|
Volume (Bbls/d)
|
|
Weighted Average Differential ($/Bbl)(1)
|
||||
Crude oil basis swaps
|
July 2019 - September 2019
|
|
1,380,000
|
|
|
15,000
|
|
|
$
|
(9.03
|
)
|
|
October 2019 - December 2019
|
|
920,000
|
|
|
10,000
|
|
|
(4.24
|
)
|
|
(1)
|
These oil basis swap transactions are settled based on the difference between the arithmetic average of ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during each applicable settlement period.
|
|
Period
|
|
Volume (MMBtu)
|
|
Volume (MMBtu/d)
|
|
Weighted Average Fixed Price ($/MMBtu)(1)
|
||||
Natural Gas Swaps - Henry Hub
|
July 2019 - December 2019
|
|
5,520,000
|
|
|
30,000
|
|
|
$
|
2.78
|
|
Natural Gas Swaps - West Texas WAHA
|
July 2019 - December 2019
|
|
2,760,000
|
|
|
15,000
|
|
|
1.61
|
|
|
|
|
|
|
|
|
|
|
||||
|
Period
|
|
Volume (MMBtu)
|
|
Volume (MMBtu/d)
|
|
Weighted Average Differential ($/MMBtu)(2)
|
||||
Natural gas basis swaps
|
July 2019 - December 2019
|
|
6,440,000
|
|
|
35,000
|
|
|
$
|
(1.31
|
)
|
|
(1)
|
These natural gas swap contracts are settled based on either i) the NYMEX Henry Hub price or ii) the Inside FERC West Texas WAHA price of natural gas, as applicable, as of the specified settlement date.
|
(2)
|
These natural gas basis swap contracts are settled based on the difference between the Inside FERC’s West Texas WAHA price and the NYMEX price of natural gas during each applicable settlement period.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net gain (loss) on derivative instruments
|
$
|
2,128
|
|
|
$
|
16,697
|
|
|
$
|
(3,743
|
)
|
|
$
|
24,540
|
|
|
Balance Sheet Classification
|
|
Gross Fair Value Asset/Liability Amounts
|
|
Gross Amounts Offset(1)
|
|
Net Recognized Fair Value Assets/Liabilities
|
||||||
(in thousands)
|
|
|
June 30, 2019
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
Current assets - Derivative instruments
|
|
$
|
5,146
|
|
|
$
|
(4,972
|
)
|
|
$
|
174
|
|
Derivative Liabilities
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
Current liabilities - Derivative instruments
|
|
19,319
|
|
|
(4,972
|
)
|
|
14,347
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
|
|
December 31, 2018
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
Current assets - Derivative instruments
|
|
$
|
7,708
|
|
|
$
|
(6,076
|
)
|
|
$
|
1,632
|
|
Derivative Liabilities
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
Current liabilities - Derivative instruments
|
|
12,127
|
|
|
(6,076
|
)
|
|
6,051
|
|
|
(1)
|
The Company has agreements in place with all of its counterparties that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements or contract termination.
|
•
|
Level 1: Quoted Prices in Active Markets for Identical Assets – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2: Significant Other Observable Inputs – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3: Significant Unobservable Inputs – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
(in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
June 30, 2019
|
|
|
|
|
|
||||||
Total assets
|
$
|
—
|
|
|
$
|
174
|
|
|
$
|
—
|
|
Total liabilities
|
—
|
|
|
14,347
|
|
|
—
|
|
|||
December 31, 2018
|
|
|
|
|
|
||||||
Total assets
|
$
|
—
|
|
|
$
|
1,632
|
|
|
$
|
—
|
|
Total liabilities
|
—
|
|
|
6,051
|
|
|
—
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair value
|
||||||||
Credit facility due 2023(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300,000
|
|
|
$
|
300,000
|
|
5.375% Senior Notes due 2026(2)
|
|
392,119
|
|
|
382,000
|
|
|
391,630
|
|
|
372,000
|
|
||||
6.875% Senior Notes due 2027(2)
|
|
489,234
|
|
|
505,000
|
|
|
—
|
|
|
—
|
|
|
(1)
|
The carrying values of the amounts outstanding under CRP’s credit agreement approximate fair value because its variable interest rates are tied to current market rates and the applicable credit spreads represent current market rates for the credit risk profile of the Company.
|
(2)
|
The Senior Notes’ carrying values include associated unamortized debt issuance costs and any discounts. The Senior Notes’ fair values were determined using quoted market prices for these debt securities, a Level 1 classification in the fair value hierarchy.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income attributable to Class A Common Stock
|
$
|
17,877
|
|
|
$
|
63,541
|
|
|
$
|
9,765
|
|
|
$
|
129,631
|
|
Add: Income from conversion of Class C Common Stock
|
735
|
|
|
—
|
|
|
442
|
|
|
—
|
|
||||
Adjusted net income attributable to Class A Common Stock
|
$
|
18,612
|
|
|
$
|
63,541
|
|
|
$
|
10,207
|
|
|
$
|
129,631
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net earnings per share of Class A Common Stock
|
$
|
0.07
|
|
|
$
|
0.24
|
|
|
$
|
0.04
|
|
|
$
|
0.49
|
|
Diluted net earnings per share of Class A Common Stock
|
$
|
0.07
|
|
|
$
|
0.24
|
|
|
$
|
0.04
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares of Class A Common Stock outstanding
|
264,378
|
|
|
263,757
|
|
|
264,397
|
|
|
262,547
|
|
||||
Add: Dilutive effect of potential common shares
|
14
|
|
|
3,249
|
|
|
15
|
|
|
3,554
|
|
||||
Add: Dilutive effects of conversion of Class C Common Stock
|
12,003
|
|
|
—
|
|
|
12,003
|
|
|
—
|
|
||||
Diluted weighted average shares of Class A Common Stock outstanding
|
276,395
|
|
|
267,006
|
|
|
276,415
|
|
|
266,101
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Out-of-the-money stock options
|
4,667
|
|
|
643
|
|
|
4,612
|
|
|
407
|
|
Warrants
|
8,000
|
|
|
—
|
|
|
8,000
|
|
|
—
|
|
Restricted stock
|
1,758
|
|
|
—
|
|
|
1,629
|
|
|
—
|
|
Weighted average shares of Class C Common Stock
|
—
|
|
|
12,314
|
|
|
—
|
|
|
13,497
|
|
Performance stock units
|
—
|
|
|
155
|
|
|
—
|
|
|
77
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating revenues (in thousands):
|
|
|
|
|
|
|
|
||||||||
Oil sales
|
$
|
214,305
|
|
|
$
|
174,156
|
|
|
$
|
389,859
|
|
|
$
|
348,997
|
|
Natural gas sales
|
8,088
|
|
|
13,721
|
|
|
20,585
|
|
|
32,301
|
|
||||
NGL sales
|
21,846
|
|
|
29,886
|
|
|
48,364
|
|
|
52,363
|
|
||||
Oil and gas sales
|
$
|
244,239
|
|
|
$
|
217,763
|
|
|
$
|
458,808
|
|
|
$
|
433,661
|
|
|
|
As of June 30, 2019
|
|
Weighted-average discount rate
|
|
4.45
|
%
|
Weighted-average remaining lease term (years)
|
|
1.26
|
|
(in thousands)
|
|
For the Three Months Ended June 30, 2019
|
|
For the Six Months Ended June 30, 2019
|
||||
Lease costs(1)
|
|
|
|
|
||||
Operating lease cost
|
|
$
|
10,806
|
|
|
$
|
21,393
|
|
Variable lease cost
|
|
703
|
|
|
1,504
|
|
||
Short-term lease cost
|
|
16,684
|
|
|
28,908
|
|
||
Total Lease Cost
|
|
$
|
28,193
|
|
|
$
|
51,805
|
|
|
(1)
|
The majority of the Company’s operating leases relate to the operations or completion of the Company’s wells. Therefore, the lease costs presented in the above table represent the total gross costs the Company incurs, which are not comparable to the Company’s net costs recorded to the Consolidated Statements of Operations, Consolidated Statements of Cash Flows or capitalized in the Consolidated Balance Sheets, as amounts therein are reflected net of amounts billed to working interest partners.
|
(in thousands)
|
Total
|
||
2019(1)(2)
|
$
|
12,948
|
|
2020
|
8,713
|
|
|
2021
|
2,855
|
|
|
2022
|
425
|
|
|
Total lease payments
|
24,941
|
|
|
Less: imputed interest
|
(863
|
)
|
|
Present value of lease liabilities (3)
|
$
|
24,078
|
|
|
(1)
|
Excludes payments made during the six months ended June 30, 2019.
|
(2)
|
Includes drilling rigs as of June 30, 2019 with an initial term greater than one year.
|
(3)
|
Of the total present value of lease liabilities, $18.9 million was recorded to current Operating lease liabilities and $5.2 million was recorded in noncurrent Operating lease liabilities in the Consolidated Balance Sheets as of June 30, 2019.
|
(in thousands)
|
Drilling Rigs
|
|
Office Leases
|
||||
2019
|
$
|
43,036
|
|
|
$
|
3,057
|
|
2020
|
4,124
|
|
|
2,830
|
|
||
2021
|
—
|
|
|
2,761
|
|
||
2022
|
—
|
|
|
404
|
|
||
Total lease payments
|
$
|
47,160
|
|
|
$
|
9,052
|
|
|
2017
|
|
2018
|
|
2019
|
||||||||||||||||||||||||||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
||||||||||||||||||||
Crude oil (per Bbl)
|
$
|
51.82
|
|
|
$
|
48.32
|
|
|
$
|
48.17
|
|
|
$
|
55.31
|
|
|
$
|
62.91
|
|
|
$
|
68.07
|
|
|
$
|
69.50
|
|
|
$
|
58.81
|
|
|
$
|
54.90
|
|
|
$
|
59.81
|
|
Natural gas (per MMBtu)
|
$
|
3.06
|
|
|
$
|
3.14
|
|
|
$
|
2.95
|
|
|
$
|
2.91
|
|
|
$
|
3.08
|
|
|
$
|
2.85
|
|
|
$
|
2.93
|
|
|
$
|
3.77
|
|
|
$
|
2.88
|
|
|
$
|
2.51
|
|
|
For the Three Months Ended June 30,
|
|
Increase/(Decrease)
|
|||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net revenues (in thousands):
|
|
|
|
|
|
|
|
|||||||
Oil sales
|
$
|
214,305
|
|
|
$
|
174,156
|
|
|
$
|
40,149
|
|
|
23
|
%
|
Natural gas sales
|
8,088
|
|
|
13,721
|
|
|
(5,633
|
)
|
|
(41
|
)%
|
|||
NGL sales
|
21,846
|
|
|
29,886
|
|
|
(8,040
|
)
|
|
(27
|
)%
|
|||
Oil and gas sales
|
$
|
244,239
|
|
|
$
|
217,763
|
|
|
$
|
26,476
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|||||||
Average sales prices:
|
|
|
|
|
|
|
|
|||||||
Oil (per Bbl)
|
$
|
54.63
|
|
|
$
|
61.21
|
|
|
$
|
(6.58
|
)
|
|
(11
|
)%
|
Effect of derivative settlements on average price (per Bbl)
|
(0.18
|
)
|
|
1.69
|
|
|
(1.87
|
)
|
|
(111
|
)%
|
|||
Oil net of hedging (per Bbl)
|
$
|
54.45
|
|
|
$
|
62.90
|
|
|
$
|
(8.45
|
)
|
|
(13
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Average NYMEX price for oil (per Bbl)
|
$
|
59.81
|
|
|
$
|
68.07
|
|
|
$
|
(8.26
|
)
|
|
(12
|
)%
|
Oil differential from NYMEX
|
(5.18
|
)
|
|
(6.86
|
)
|
|
1.68
|
|
|
24
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Natural gas (per Mcf)
|
$
|
0.81
|
|
|
$
|
1.81
|
|
|
$
|
(1.00
|
)
|
|
(55
|
)%
|
Effect of derivative settlements on average price (per Mcf)
|
0.71
|
|
|
0.05
|
|
|
0.66
|
|
|
1,320
|
%
|
|||
Natural gas net of hedging (per Mcf)
|
$
|
1.52
|
|
|
$
|
1.86
|
|
|
$
|
(0.34
|
)
|
|
(18
|
)%
|
|
|
|
|
|
|
|
|
|
|
|||||
Average NYMEX price for natural gas (per Mcf)
|
$
|
2.51
|
|
|
$
|
2.85
|
|
|
$
|
(0.34
|
)
|
|
(12
|
)%
|
Natural gas differential from NYMEX
|
(1.70
|
)
|
|
(1.04
|
)
|
|
(0.66
|
)
|
|
(63
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
NGL (per Bbl)
|
$
|
16.24
|
|
|
$
|
26.52
|
|
|
$
|
(10.28
|
)
|
|
(39
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Net production:
|
|
|
|
|
|
|
|
|||||||
Oil (MBbls)
|
3,922
|
|
|
2,845
|
|
|
1,077
|
|
|
38
|
%
|
|||
Natural gas (MMcf)
|
9,954
|
|
|
7,572
|
|
|
2,382
|
|
|
31
|
%
|
|||
NGL (MBbls)
|
1,346
|
|
|
1,127
|
|
|
219
|
|
|
19
|
%
|
|||
Total (MBoe)(1)
|
6,927
|
|
|
5,235
|
|
|
1,692
|
|
|
32
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average daily net production volume:
|
|
|
|
|
|
|
|
|||||||
Oil (Bbls/d)
|
43,105
|
|
|
31,271
|
|
|
11,834
|
|
|
38
|
%
|
|||
Natural gas (Mcf/d)
|
109,392
|
|
|
83,205
|
|
|
26,187
|
|
|
31
|
%
|
|||
NGL (Bbls/d)
|
14,785
|
|
|
12,389
|
|
|
2,396
|
|
|
19
|
%
|
|||
Total (Boe/d)(1)
|
76,122
|
|
|
57,528
|
|
|
18,594
|
|
|
32
|
%
|
|
(1)
|
Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Bbl of oil.
|
|
For the Three Months Ended June 30,
|
|
Increase/(Decrease)
|
|||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Operating costs (in thousands):
|
|
|
|
|
|
|
|
|||||||
Lease operating expenses
|
$
|
34,885
|
|
|
$
|
19,182
|
|
|
$
|
15,703
|
|
|
82
|
%
|
Severance and ad valorem taxes
|
17,186
|
|
|
14,208
|
|
|
2,978
|
|
|
21
|
%
|
|||
Gathering, processing and transportation expenses
|
16,243
|
|
|
15,296
|
|
|
947
|
|
|
6
|
%
|
|||
Operating costs per Boe:
|
|
|
|
|
|
|
|
|
|
|||||
Lease operating expenses
|
$
|
5.04
|
|
|
$
|
3.66
|
|
|
$
|
1.38
|
|
|
38
|
%
|
Severance and ad valorem taxes
|
2.48
|
|
|
2.71
|
|
|
(0.23
|
)
|
|
(8
|
)%
|
|||
Gathering, processing and transportation expenses
|
2.34
|
|
|
2.92
|
|
|
(0.58
|
)
|
|
(20
|
)%
|
|
For the Three Months Ended June 30,
|
||||||
(in thousands, except per Boe data)
|
2019
|
|
2018
|
||||
Depreciation, depletion and amortization
|
$
|
112,114
|
|
|
$
|
74,946
|
|
Depreciation, depletion and amortization per Boe
|
$
|
16.18
|
|
|
$
|
14.32
|
|
|
For the Three Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Geological and geophysical costs
|
$
|
3,179
|
|
|
$
|
1,204
|
|
Stock-based compensation
|
682
|
|
|
489
|
|
||
Exploratory dry hole costs
|
—
|
|
|
174
|
|
||
Exploration expense
|
$
|
3,861
|
|
|
$
|
1,867
|
|
|
For the Three Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Cash general and administrative expenses
|
$
|
12,359
|
|
|
$
|
9,643
|
|
Stock-based compensation
|
6,076
|
|
|
4,166
|
|
||
General and administrative expenses
|
$
|
18,435
|
|
|
$
|
13,809
|
|
|
For the Three Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Credit facility
|
$
|
879
|
|
|
$
|
687
|
|
5.375% Senior Notes due 2026
|
5,375
|
|
|
5,375
|
|
||
6.875% Senior Notes due 2027
|
8,594
|
|
|
—
|
|
||
Amortization of debt issuance costs and debt discount
|
775
|
|
|
427
|
|
||
Interest capitalized
|
(1,186
|
)
|
|
(698
|
)
|
||
Total
|
$
|
14,437
|
|
|
$
|
5,791
|
|
|
For the Three Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Cash settlement gains (losses)
|
$
|
6,388
|
|
|
$
|
5,163
|
|
Non-cash mark-to-market derivative gain (loss)
|
(4,260
|
)
|
|
11,534
|
|
||
Total
|
$
|
2,128
|
|
|
$
|
16,697
|
|
|
For the Six Months Ended June 30,
|
|
Increase/(Decrease)
|
|||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net revenues (in thousands):
|
|
|
|
|
|
|
|
|||||||
Oil sales
|
$
|
389,859
|
|
|
$
|
348,997
|
|
|
$
|
40,862
|
|
|
12
|
%
|
Natural gas sales
|
20,585
|
|
|
32,301
|
|
|
(11,716
|
)
|
|
(36
|
)%
|
|||
NGL sales
|
48,364
|
|
|
52,363
|
|
|
(3,999
|
)
|
|
(8
|
)%
|
|||
Oil and gas sales
|
$
|
458,808
|
|
|
$
|
433,661
|
|
|
$
|
25,147
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|||||||
Average sales prices:
|
|
|
|
|
|
|
|
|||||||
Oil (per Bbl)
|
$
|
51.51
|
|
|
$
|
61.37
|
|
|
$
|
(9.86
|
)
|
|
(16
|
)%
|
Effect of derivative settlements on average price (per Bbl)
|
(0.20
|
)
|
|
0.89
|
|
|
(1.09
|
)
|
|
(122
|
)%
|
|||
Oil net of hedging (per Bbl)
|
$
|
51.31
|
|
|
$
|
62.26
|
|
|
$
|
(10.95
|
)
|
|
(18
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Average NYMEX price for oil (per Bbl)
|
$
|
57.36
|
|
|
$
|
65.55
|
|
|
$
|
(8.19
|
)
|
|
(12
|
)%
|
Oil differential from NYMEX
|
(5.85
|
)
|
|
(4.18
|
)
|
|
(1.67
|
)
|
|
(40
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Natural gas (per Mcf)
|
$
|
1.09
|
|
|
$
|
2.12
|
|
|
$
|
(1.03
|
)
|
|
(49
|
)%
|
Effect of derivative settlements on average price (per Mcf)
|
0.40
|
|
|
0.03
|
|
|
0.37
|
|
|
1,233
|
%
|
|||
Natural gas net of hedging (per Mcf)
|
$
|
1.49
|
|
|
$
|
2.15
|
|
|
$
|
(0.66
|
)
|
|
(31
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Average NYMEX price for natural gas (per Mcf)
|
$
|
2.69
|
|
|
$
|
2.96
|
|
|
$
|
(0.27
|
)
|
|
(9
|
)%
|
Natural gas differential from NYMEX
|
(1.60
|
)
|
|
(0.84
|
)
|
|
(0.76
|
)
|
|
(90
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
NGL (per Bbl)
|
$
|
17.99
|
|
|
$
|
27.99
|
|
|
$
|
(10.00
|
)
|
|
(36
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Net production:
|
|
|
|
|
|
|
|
|||||||
Oil (MBbls)
|
7,568
|
|
|
5,687
|
|
|
1,881
|
|
|
33
|
%
|
|||
Natural gas (MMcf)
|
18,918
|
|
|
15,255
|
|
|
3,663
|
|
|
24
|
%
|
|||
NGLs (MBbls)
|
2,689
|
|
|
1,871
|
|
|
818
|
|
|
44
|
%
|
|||
Total (MBoe)(1)
|
13,410
|
|
|
10,101
|
|
|
3,309
|
|
|
33
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average daily net production volume:
|
|
|
|
|
|
|
|
|||||||
Oil (Bbls/d)
|
41,814
|
|
|
31,421
|
|
|
10,393
|
|
|
33
|
%
|
|||
Natural gas (Mcf/d)
|
104,521
|
|
|
84,283
|
|
|
20,238
|
|
|
24
|
%
|
|||
NGLs (Bbls/d)
|
14,856
|
|
|
10,340
|
|
|
4,516
|
|
|
44
|
%
|
|||
Total (Boe/d)(1)
|
74,089
|
|
|
55,808
|
|
|
18,281
|
|
|
33
|
%
|
|
(1)
|
Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Bbl of oil.
|
|
For the Six Months Ended June 30,
|
|
Increase/(Decrease)
|
|||||||||||
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Operating costs (in thousands):
|
|
|
|
|
|
|
|
|||||||
Lease operating expenses
|
$
|
64,747
|
|
|
$
|
35,458
|
|
|
$
|
29,289
|
|
|
83
|
%
|
Severance and ad valorem taxes
|
33,306
|
|
|
28,381
|
|
|
4,925
|
|
|
17
|
%
|
|||
Gathering, processing and transportation expenses
|
31,267
|
|
|
29,124
|
|
|
2,143
|
|
|
7
|
%
|
|||
Operating costs per Boe:
|
|
|
|
|
|
|
|
|
|
|||||
Lease operating expenses
|
$
|
4.83
|
|
|
$
|
3.51
|
|
|
$
|
1.32
|
|
|
38
|
%
|
Severance and ad valorem taxes
|
2.48
|
|
|
2.81
|
|
|
(0.33
|
)
|
|
(12
|
)%
|
|||
Gathering, processing and transportation expenses
|
2.33
|
|
|
2.88
|
|
|
(0.55
|
)
|
|
(19
|
)%
|
|
For the Six Months Ended June 30,
|
||||||
(in thousands, except per Boe data)
|
2019
|
|
2018
|
||||
Depreciation, depletion and amortization
|
$
|
208,672
|
|
|
$
|
140,956
|
|
Depreciation, depletion and amortization per Boe
|
$
|
15.56
|
|
|
$
|
13.95
|
|
|
For the Six Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Geological and geophysical costs
|
$
|
5,095
|
|
|
$
|
4,049
|
|
Stock-based compensation
|
1,282
|
|
|
870
|
|
||
Exploratory dry hole costs
|
—
|
|
|
395
|
|
||
Exploration expense
|
$
|
6,377
|
|
|
$
|
5,314
|
|
|
For the Six Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Cash general and administrative expenses
|
$
|
24,594
|
|
|
$
|
19,988
|
|
Stock-based compensation
|
11,959
|
|
|
8,118
|
|
||
General and administrative expenses
|
$
|
36,553
|
|
|
$
|
28,106
|
|
|
For the Six Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Credit facility
|
$
|
4,611
|
|
|
$
|
1,470
|
|
5.375% Senior Notes due 2026
|
10,750
|
|
|
10,750
|
|
||
6.875% Senior Notes due 2027
|
10,122
|
|
|
—
|
|
||
Amortization of debt issuance costs and debt discount
|
1,287
|
|
|
806
|
|
||
Interest capitalized
|
(2,173
|
)
|
|
(1,422
|
)
|
||
Total
|
$
|
24,597
|
|
|
$
|
11,604
|
|
|
For the Six Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Cash settlement gains (losses)
|
$
|
6,011
|
|
|
$
|
5,524
|
|
Non-cash mark-to-market derivative gain (loss)
|
(9,754
|
)
|
|
19,016
|
|
||
Total
|
$
|
(3,743
|
)
|
|
$
|
24,540
|
|
(in millions)
|
For the Six Months Ended June 30, 2019
|
||
Drilling and completion capital expenditures
|
$
|
368.2
|
|
Facilities, infrastructure and other
|
90.2
|
|
|
Land
|
24.2
|
|
|
Total capital expenditures
|
$
|
482.6
|
|
|
For the Six Months Ended June 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Net cash provided by operating activities
|
$
|
280,194
|
|
|
$
|
323,902
|
|
Net cash used in investing activities
|
(458,520
|
)
|
|
(433,371
|
)
|
||
Net cash provided by financing activities
|
188,643
|
|
|
26,274
|
|
|
Period
|
|
Volume (Bbls)
|
|
Volume (Bbls/d)
|
|
Weighted Average Differential ($/Bbl)(1)
|
||||
Crude oil basis swaps
|
July 2019 - September 2019
|
|
1,380,000
|
|
|
15,000
|
|
|
$
|
(9.03
|
)
|
|
October 2019 - December 2019
|
|
920,000
|
|
|
10,000
|
|
|
(4.24
|
)
|
|
(1)
|
These oil basis swap transactions are settled based on the difference between the arithmetic average of the ARGUS MIDLAND WTI and ARGUS WTI CUSHING indices, during each applicable settlement period.
|
|
Period
|
|
Volume (MMBtu)
|
|
Volume (MMBtu/d)
|
|
Weighted Average Fixed Price
($/MMBtu)(1)
|
||||
Natural Gas Swaps - Henry Hub
|
July 2019 - December 2019
|
|
5,520,000
|
|
|
30,000
|
|
|
$
|
2.78
|
|
Natural Gas Swaps - West Texas WAHA
|
July 2019 - December 2019
|
|
2,760,000
|
|
|
15,000
|
|
|
1.61
|
|
|
|
|
|
|
|
|
|
|
||||
|
Period
|
|
Volume (MMBtu)
|
|
Volume (MMBtu/d)
|
|
Weighted Average Differential
($/MMBtu)(2)
|
||||
Natural gas basis swaps
|
July 2019 - December 2019
|
|
6,440,000
|
|
|
35,000
|
|
|
$
|
(1.31
|
)
|
|
(1)
|
These natural gas swap contracts are settled based on either i) the NYMEX Henry Hub price or ii) the Inside FERC West Texas WAHA price of natural gas, as applicable, as of the specified settlement date.
|
(2)
|
These natural gas basis swap contracts are settled based on the difference between the Inside FERC’s West Texas WAHA price and the NYMEX price of natural gas during each applicable settlement period.
|
(in thousands)
|
|
Commodity derivative asset (liability)
|
||
Net fair value of oil and gas derivative contracts outstanding as of December 31, 2018
|
|
$
|
(4,419
|
)
|
Contracts settled
|
|
(6,011
|
)
|
|
Change in the futures curve of forecasted commodity prices(1)
|
|
(3,743
|
)
|
|
Net fair value of oil and gas derivative contracts outstanding as of June 30, 2019
|
|
$
|
(14,173
|
)
|
|
(1)
|
At inception, new derivative contracts entered into by us have no intrinsic value.
|
Exhibit
Number |
|
Description of Exhibit
|
3.1
|
|
|
3.2
|
|
|
3.3
|
|
|
3.4
|
|
|
3.5
|
|
|
3.6
|
|
|
4.1
|
|
|
10.1#
|
|
|
10.2*#
|
|
|
10.3*#
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1*
|
|
|
32.2*
|
|
|
101.INS*
|
|
Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH*
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL*
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF*
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB*
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE*
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
CENTENNIAL RESOURCE DEVELOPMENT, INC.
|
|
|
|
|
|
By:
|
/s/ GEORGE S. GLYPHIS
|
|
|
George S. Glyphis
Vice President, Chief Financial Officer and Assistant Secretary
|
|
|
|
|
Date:
|
August 5, 2019
|
I.
|
CASH COMPENSATION
|
II.
|
EQUITY COMPENSATION
|
III.
|
COMPENSATION LIMITS
|
CENTENNIAL RESOURCE DEVELOPMENT, INC.
2016 LONG TERM INCENTIVE PLAN |
Participant:
|
[__________]
|
Grant Date:
|
July 30, 2019
|
Performance Period:
|
July 1, 2019 through June 30, 2022
|
Target Number of PSUs:
|
[__________]
|
Callon Petroleum Company
|
Oasis Petroleum Inc.
|
Cimarex Energy Co.
|
Parsley Energy, Inc.
|
Jagged Peak Energy Inc.
|
PDC Energy, Inc.
|
Laredo Petroleum, Inc.
|
SM Energy Company
|
Matador Resources Company
|
WPX Energy, Inc.
|
Relative TSR Performance Plan
|
||
Performance
Rank
|
TSR Percentile
Ranking
|
Payout as % of
Target Number of PSUs
|
1
|
100%
|
200%
|
2
|
90%
|
180%
|
3
|
80%
|
160%
|
4
|
70%
|
140%
|
5
|
60%
|
120%
|
6
|
50%
|
100%
|
7
|
40%
|
75%
|
8
|
30%
|
50%
|
9
|
20%
|
0%
|
10
|
10%
|
0%
|
11
|
0%
|
0%
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q (this “report”) of Centennial Resource Development, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
CENTENNIAL RESOURCE DEVELOPMENT, INC.
|
|
|
|
|
|
By:
|
/s/ MARK G. PAPA
|
|
|
Mark G. Papa
Chief Executive Officer (Principal Executive Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q (this “report”) of Centennial Resource Development, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
CENTENNIAL RESOURCE DEVELOPMENT, INC.
|
|
|
|
|
|
By:
|
/s/ GEORGE S. GLYPHIS
|
|
|
George S. Glyphis
Vice President, Chief Financial Officer and Assistant Secretary (Principal Financial Officer)
|
|
CENTENNIAL RESOURCE DEVELOPMENT, INC.
|
|
|
|
|
|
By:
|
/s/ MARK G. PAPA
|
|
|
Mark G. Papa
Chief Executive Officer (Principal Executive Officer)
|
|
CENTENNIAL RESOURCE DEVELOPMENT, INC.
|
|
|
|
|
|
By:
|
/s/ GEORGE S. GLYPHIS
|
|
|
George S. Glyphis
Vice President, Chief Financial Officer and Assistant Secretary (Principal Financial Officer)
|