Delaware | 81-5365682 | ||||||||||
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
||||||||||
Nine Greenway Plaza, Suite 1300
|
77046 | ||||||||||
Houston,
|
Texas
|
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(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock, par value $0.0001 | MGY | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer |
☐
|
|||||||||||||||||
Non-accelerated filer |
☐
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Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||||||||
PART I. | ||||||||||||||
Items 1 and 2. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 1B. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
PART II. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
Item 7. | ||||||||||||||
Item 7A. | ||||||||||||||
Item 8. | ||||||||||||||
Item 9. | ||||||||||||||
Item 9A. | ||||||||||||||
Item 9B. | ||||||||||||||
PART III. | ||||||||||||||
Item 10. | ||||||||||||||
Item 11. | ||||||||||||||
Item 12. | ||||||||||||||
Item 13. | ||||||||||||||
Item 14. | ||||||||||||||
PART IV. | ||||||||||||||
Item 15. | ||||||||||||||
Item 16. | ||||||||||||||
December 31, 2020
|
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Oil (MMBbls)
|
Natural Gas (Bcf)
|
NGLs (MMBbls)
|
Total (MMboe)
|
|||||||||||||||||||||||
Proved reserves | ||||||||||||||||||||||||||
Total proved developed | 38.1 | 165.5 | 20.2 | 85.8 | ||||||||||||||||||||||
Total proved undeveloped | 11.2 | 42.1 | 8.3 | 26.5 | ||||||||||||||||||||||
Total proved reserves | 49.3 | 207.6 | 28.5 | 112.3 |
Total (MMboe)
|
||||||||
Proved undeveloped reserves at January 1, 2020 | 22.5 | |||||||
Conversions into proved developed reserves | (13.0) | |||||||
Extensions | 17.7 | |||||||
Acquisitions | 0.2 | |||||||
Revisions of previous estimates | (0.9) | |||||||
Proved undeveloped reserves at December 31, 2020
|
26.5 |
Successor | Predecessor and Giddings Assets | ||||||||||||||||||||||||||||
Year Ended
December 31, 2020 |
Year Ended
December 31, 2019 |
July 31, 2018
Through December 31, 2018 |
January 1, 2018 Through
July 30, 2018 |
||||||||||||||||||||||||||
Net exploratory wells | |||||||||||||||||||||||||||||
Productive | — | — | — | — | |||||||||||||||||||||||||
Dry | — | — | — | — | |||||||||||||||||||||||||
— | — | — | — | ||||||||||||||||||||||||||
Net development wells | |||||||||||||||||||||||||||||
Productive | 44 | 76 | 25 | 42 | |||||||||||||||||||||||||
Dry | — | — | — | — | |||||||||||||||||||||||||
44 | 76 | 25 | 42 | ||||||||||||||||||||||||||
Net total wells | |||||||||||||||||||||||||||||
Productive | 44 | 76 | 25 | 42 | |||||||||||||||||||||||||
Dry | — | — | — | — | |||||||||||||||||||||||||
Total | 44 | 76 | 25 | 42 |
Oil | Natural Gas | Total | |||||||||||||||
Gross | 1,371 | 425 | 1,796 | ||||||||||||||
Net | 794 | 366 | 1,160 |
Successor | Predecessor and Giddings Assets | ||||||||||||||||||||||||||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 |
July 31, 2018 Through
December 31, 2018 |
January 1, 2018
Through July 30, 2018 |
||||||||||||||||||||||||||
Production | |||||||||||||||||||||||||||||
Crude oil (MMBbls) | 11.6 | 12.9 | 5.1 | 6.4 | |||||||||||||||||||||||||
Natural gas (Bcf) | 39.4 | 41.3 | 14.1 | 13.5 | |||||||||||||||||||||||||
Natural gas liquids (MMBbls) | 4.4 | 4.6 | 1.9 | 1.7 | |||||||||||||||||||||||||
Average lease operating cost per boe | $ | 4.77 | $ | 5.28 | $ | 4.83 | $ | 5.42 | |||||||||||||||||||||
Average sale price | |||||||||||||||||||||||||||||
Crude oil (per barrel) | $ | 35.99 | $ | 60.00 | $ | 67.37 | $ | 69.14 | |||||||||||||||||||||
Natural gas (per Mcf) | 1.71 | 2.27 | 3.04 | 2.82 | |||||||||||||||||||||||||
Natural gas liquids (per barrel) | 11.10 | 15.17 | 25.93 | 25.99 |
Acreage | |||||||||||||||||
Undeveloped | Developed | Total | |||||||||||||||
Gross | 55,916 | 621,917 | 677,833 | ||||||||||||||
Net | 41,779 | 418,619 | 460,398 |
Name | Age | Position | ||||||
Stephen I. Chazen | 74 | Chairman, President and Chief Executive Officer | ||||||
Christopher G. Stavros | 57 | Executive Vice President and Chief Financial Officer | ||||||
Timothy D. Yang | 49 | Executive Vice President, General Counsel, and Corporate Secretary | ||||||
Steve F. Millican | 45 | Senior Vice President, Operations | ||||||
Arcilia C. Acosta | 55 | Director | ||||||
Angela M. Busch | 54 | Director | ||||||
Edward P. Djerejian | 81 | Director | ||||||
James R. Larson | 71 | Director | ||||||
Dan F. Smith | 74 | Director | ||||||
John B. Walker | 75 | Director |
Period | Number of Shares of Class A Common Stock Purchased | Average Price Paid per Share |
Total Number of Common Shares Purchased as Part of Publicly Announced Program (1)
|
Maximum Number of Common Shares that May Yet be Purchased Under the Program | |||||||||||||||||||
January 1, 2020 - September 30, 2020 | 2,100,000 | $ | 6.17 | 2,100,000 | 6,900,000 | ||||||||||||||||||
October 1, 2020 - October 31, 2020 | 98,956 | 5.34 | 98,956 | 6,801,044 | |||||||||||||||||||
November 1, 2020 - November 30, 2020 | 925,000 | 5.82 | 925,000 | 5,876,044 | |||||||||||||||||||
December 1, 2020 - December 31, 2020 | 1,351,044 | 7.26 | 1,351,044 | 4,525,000 | |||||||||||||||||||
Total | 4,475,000 | $ | 6.41 | 4,475,000 | 4,525,000 |
Years Ended | ||||||||||||||
(In thousands, except per unit data) |
December 31, 2020
|
December 31, 2019
|
||||||||||||
Production: | ||||||||||||||
Oil (MBbls) | 11,610 | 12,867 | ||||||||||||
Natural gas (MMcf) | 39,429 | 41,272 | ||||||||||||
NGLs (MBbls) | 4,449 | 4,643 | ||||||||||||
Total (Mboe) | 22,631 | 24,389 | ||||||||||||
Average daily production: | ||||||||||||||
Oil (Bbls/d) | 31,722 | 35,252 | ||||||||||||
Natural gas (Mcf/d) | 107,728 | 113,074 | ||||||||||||
NGLs (Bbls/d) | 12,156 | 12,721 | ||||||||||||
Total (boe/d) | 61,833 | 66,819 | ||||||||||||
Revenues: | ||||||||||||||
Oil revenues | $ | 417,891 | $ | 771,981 | ||||||||||
Natural gas revenues | 67,248 | 93,745 | ||||||||||||
Natural gas liquids revenues | 49,367 | 70,416 | ||||||||||||
Total revenues | $ | 534,506 | $ | 936,142 | ||||||||||
Average Price: | ||||||||||||||
Oil (per barrel) | $ | 35.99 | $ | 60.00 | ||||||||||
Natural gas (per Mcf) | 1.71 | 2.27 | ||||||||||||
NGLs (per barrel) | 11.10 | 15.17 |
Years Ended | ||||||||||||||
(In thousands, except per unit data) |
December 31, 2020
|
December 31, 2019
|
||||||||||||
Operating Expenses: | ||||||||||||||
Lease operating expenses | $ | 79,192 | $ | 93,788 | ||||||||||
Gathering, transportation, and processing | 28,645 | 34,924 | ||||||||||||
Taxes other than income | 31,250 | 53,728 | ||||||||||||
Exploration expenses | 567,333 | 12,741 | ||||||||||||
Impairment of oil and natural gas properties | 1,381,258 | — | ||||||||||||
Asset retirement obligations accretion | 5,718 | 5,512 | ||||||||||||
Depreciation, depletion and amortization | 283,353 | 523,572 | ||||||||||||
Amortization of intangible assets | 14,505 | 14,505 | ||||||||||||
General and administrative expenses | 68,918 | 69,432 | ||||||||||||
Transaction related costs | — | 438 | ||||||||||||
Total operating costs and expenses | $ | 2,460,172 | $ | 808,640 | ||||||||||
Other Income (Expense): | ||||||||||||||
Income from equity method investee | $ | 2,113 | $ | 857 | ||||||||||
Interest expense, net | (28,698) | (28,356) | ||||||||||||
Gain on derivatives, net | 565 | — | ||||||||||||
Other income (expense), net | 3,363 | (238) | ||||||||||||
Total other expense | $ | (22,657) | $ | (27,737) | ||||||||||
Average Operating Costs per boe: | ||||||||||||||
Lease operating expenses | $ | 3.50 | $ | 3.85 | ||||||||||
Gathering, transportation, and processing | 1.27 | 1.43 | ||||||||||||
Taxes other than income | 1.38 | 2.20 | ||||||||||||
Exploration costs | 25.07 | 0.52 | ||||||||||||
Impairment of oil and natural gas properties | 61.03 | — | ||||||||||||
Asset retirement obligation accretion | 0.25 | 0.23 | ||||||||||||
Depreciation, depletion and amortization | 12.52 | 21.47 | ||||||||||||
Amortization of intangible assets | 0.64 | 0.59 | ||||||||||||
General and administrative expenses | 3.05 | 2.85 | ||||||||||||
Transaction related costs | — | 0.02 |
Years Ended | ||||||||||||||
(In thousands) |
December 31, 2020
|
December 31, 2019 | ||||||||||||
Sources of cash and cash equivalents | ||||||||||||||
Net cash provided by operating activities | $ | 310,121 | $ | 647,619 | ||||||||||
Proceeds from sale of equity method investment | 27,074 | — | ||||||||||||
Other | — | 11,551 | ||||||||||||
$ | 337,195 | $ | 659,170 | |||||||||||
Uses of cash and cash equivalents: | ||||||||||||||
Acquisitions, other | $ | (73,702) | $ | (93,221) | ||||||||||
Additions to oil and natural gas properties | (197,858) | (425,124) | ||||||||||||
Changes in working capital associated with additions to oil and natural gas properties | (24,354) | (9,911) | ||||||||||||
Class A Common Stock repurchase | (28,681) | (10,277) | ||||||||||||
Class B Common Stock repurchase | — | (69,093) | ||||||||||||
Other | (2,672) | (4,669) | ||||||||||||
(327,267) | (612,295) | |||||||||||||
Increase in cash and cash equivalents | $ | 9,928 | $ | 46,875 |
Years Ended | ||||||||||||||
(In thousands) |
December 31, 2020
|
December 31, 2019 | ||||||||||||
Drilling and completion | $ | 194,891 | $ | 416,353 | ||||||||||
Leasehold acquisition costs | 2,966 | 10,003 | ||||||||||||
Total capital expenditures | $ | 197,857 | $ | 426,356 |
Successor
|
||||||||||||||
December 31, 2020 | December 31, 2019 | |||||||||||||
ASSETS | ||||||||||||||
CURRENT ASSETS | ||||||||||||||
Cash and cash equivalents
|
$ | 192,561 | $ | 182,633 | ||||||||||
Accounts receivable
|
81,559 | 105,775 | ||||||||||||
Drilling advances
|
3,805 | 299 | ||||||||||||
Other current assets
|
3,601 | 4,511 | ||||||||||||
Total current assets | 281,526 | 293,218 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||
Oil and natural gas properties | 2,130,125 | 3,815,221 | ||||||||||||
Other | 4,412 | 3,087 | ||||||||||||
Accumulated depreciation, depletion and amortization | (985,010) | (701,551) | ||||||||||||
Total property, plant and equipment, net | 1,149,527 | 3,116,757 | ||||||||||||
OTHER ASSETS | ||||||||||||||
Deferred financing costs, net | 6,042 | 8,390 | ||||||||||||
Equity method investment | — | 19,730 | ||||||||||||
Intangible assets, net | 9,346 | 23,851 | ||||||||||||
Other long-term assets | 6,979 | 4,460 | ||||||||||||
Total other assets | 22,367 | 56,431 | ||||||||||||
TOTAL ASSETS | $ | 1,453,420 | $ | 3,466,406 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
CURRENT LIABILITIES | ||||||||||||||
Accounts payable | $ | 62,626 | $ | 79,428 | ||||||||||
Other current liabilities (Note 7) | 66,323 | 95,780 | ||||||||||||
Total current liabilities | 128,949 | 175,208 | ||||||||||||
LONG-TERM LIABILITIES | ||||||||||||||
Long-term debt, net | 391,115 | 389,835 | ||||||||||||
Asset retirement obligations, net of current | 88,232 | 93,524 | ||||||||||||
Deferred taxes, net | — | 77,834 | ||||||||||||
Other long-term liabilities | 5,702 | 1,476 | ||||||||||||
Total long-term liabilities | 485,049 | 562,669 | ||||||||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||||||||
EQUITY | ||||||||||||||
Class A Common Stock, $0.0001 par value, 1,300,000 shares authorized, 168,755 shares issued and 163,280 shares outstanding in 2020 and 168,318 shares issued and 167,318 shares outstanding in 2019
|
17 | 17 | ||||||||||||
Class B Common Stock, $0.0001 par value, 225,000 shares authorized, 85,790 shares issued and outstanding in 2020 and 2019
|
9 | 9 | ||||||||||||
Additional paid-in capital | 1,712,544 | 1,703,362 | ||||||||||||
Treasury Stock, at cost, 5,475 shares and 1,000 shares in 2020 and 2019, respectively
|
(38,958) | (10,277) | ||||||||||||
Retained earnings (Accumulated deficit) | (1,125,450) | 82,940 | ||||||||||||
Noncontrolling interest | 291,260 | 952,478 | ||||||||||||
Total equity | 839,422 | 2,728,529 | ||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,453,420 | $ | 3,466,406 |
Successor | Predecessor | ||||||||||||||||||||||||||||
Year Ended
December 31, 2020
|
Year Ended
December 31, 2019 |
July 31, 2018 Through
December 31, 2018 |
January 1, 2018 Through
July 30, 2018 |
||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
Oil revenues | $ | 417,891 | $ | 771,981 | $ | 342,093 | $ | 399,124 | |||||||||||||||||||||
Natural gas revenues | 67,248 | 93,745 | 42,979 | 22,135 | |||||||||||||||||||||||||
Natural gas liquids revenues | 49,367 | 70,416 | 48,146 | 27,927 | |||||||||||||||||||||||||
Total revenues | 534,506 | 936,142 | 433,218 | 449,186 | |||||||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||||||||
Lease operating expenses | 79,192 | 93,788 | 30,753 | 23,513 | |||||||||||||||||||||||||
Gathering, transportation, and processing | 28,645 | 34,924 | 14,445 | 12,929 | |||||||||||||||||||||||||
Taxes other than income | 31,250 | 53,728 | 23,170 | 23,763 | |||||||||||||||||||||||||
Exploration expense | 567,333 | 12,741 | 11,882 | 492 | |||||||||||||||||||||||||
Impairment of oil and natural gas properties | 1,381,258 | — | — | — | |||||||||||||||||||||||||
Asset retirement obligation accretion | 5,718 | 5,512 | 1,668 | 104 | |||||||||||||||||||||||||
Depreciation, depletion and amortization | 283,353 | 523,572 | 177,890 | 137,871 | |||||||||||||||||||||||||
Amortization of intangible assets | 14,505 | 14,505 | 6,044 | — | |||||||||||||||||||||||||
General and administrative expenses | 68,918 | 69,432 | 28,801 | 12,710 | |||||||||||||||||||||||||
Transaction related costs | — | 438 | 24,607 | — | |||||||||||||||||||||||||
Total operating costs and expenses | 2,460,172 | 808,640 | 319,260 | 211,382 | |||||||||||||||||||||||||
OPERATING INCOME (LOSS) | (1,925,666) | 127,502 | 113,958 | 237,804 | |||||||||||||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||||||||||
Income from equity method investee | 2,113 | 857 | 773 | 711 | |||||||||||||||||||||||||
Interest expense, net | (28,698) | (28,356) | (12,454) | — | |||||||||||||||||||||||||
Gain (loss) on derivatives, net | 565 | — | — | (18,127) | |||||||||||||||||||||||||
Other income (expense), net | 3,363 | (238) | (8,374) | (50) | |||||||||||||||||||||||||
Total other expense, net | (22,657) | (27,737) | (20,055) | (17,466) | |||||||||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (1,948,323) | 99,765 | 93,903 | 220,338 | |||||||||||||||||||||||||
Income tax expense (benefit) | (79,340) | 14,760 | 11,455 | 1,785 | |||||||||||||||||||||||||
NET INCOME (LOSS) | (1,868,983) | 85,005 | 82,448 | $ | 218,553 | ||||||||||||||||||||||||
LESS: Net income (loss) attributable to noncontrolling interest | (660,593) | 34,809 | 43,353 | ||||||||||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO MAGNOLIA | (1,208,390) | 50,196 | 39,095 | ||||||||||||||||||||||||||
LESS: Non-cash deemed dividend related to warrant exchange | — | 2,763 | — | ||||||||||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CLASS A COMMON STOCK | $ | (1,208,390) | $ | 47,433 | $ | 39,095 | |||||||||||||||||||||||
NET INCOME (LOSS) PER SHARE OF CLASS A COMMON STOCK | |||||||||||||||||||||||||||||
Basic | $ | (7.27) | $ | 0.29 | $ | 0.25 | |||||||||||||||||||||||
Diluted | $ | (7.27) | $ | 0.28 | $ | 0.25 | |||||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | |||||||||||||||||||||||||||||
Basic | 166,270 | 161,886 | 154,527 | ||||||||||||||||||||||||||
Diluted | 166,270 | 167,047 | 158,232 |
Predecessor | |||||
Balance – January 1, 2018 | $ | 1,597,838 | |||
Parents’ contribution, net | 62,641 | ||||
Net income | 218,553 | ||||
Balance – July 30, 2018 | $ | 1,879,032 |
Successor | |||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Class F Common Stock | Additional Paid In Capital | Retained Earnings | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | ||||||||||||||||||||||||||||||
Balance, July 30, 2018 | 3,052 | $ | — | — | $ | — | 16,250 | $ | 2 | $ | 8,370 | $ | (3,588) | $ | 4,784 | $ | — | $ | 4,784 | ||||||||||||||||
Class A Common Stock released from possible redemption | 61,948 | 6 | — | — | — | — | 619,473 | — | 619,479 | — | 619,479 | ||||||||||||||||||||||||
Class A Common Stock redeemed | (1) | — | — | — | — | — | (9) | — | (9) | — | (9) | ||||||||||||||||||||||||
Conversion of Common Stock from Class F to Class A at closing of Business Combination | 16,250 | 2 | — | — | (16,250) | (2) | — | — | — | — | — | ||||||||||||||||||||||||
Common stock issued as part of the Business Combination | 31,791 | 3 | 83,939 | 9 | — | — | 391,017 | — | 391,029 | 1,032,455 | 1,423,484 | ||||||||||||||||||||||||
Common stock issued in private placement | 35,500 | 4 | — | — | — | — | 354,996 | — | 355,000 | — | 355,000 | ||||||||||||||||||||||||
Earnout consideration issued as part for the Business Combination | — | — | — | — | — | — | 41,371 | — | 41,371 | 108,329 | 149,700 | ||||||||||||||||||||||||
Non-compete consideration | — | — | — | — | — | — | 44,400 | — | 44,400 | — | 44,400 | ||||||||||||||||||||||||
Changes in ownership interest adjustment | — | — | — | — | — | — | 206,966 | — | 206,966 | (206,966) | — | ||||||||||||||||||||||||
Changes in deferred tax liability | — | — | — | — | — | — | (52,787) | — | (52,787) | — | (52,787) | ||||||||||||||||||||||||
Balance, July 31, 2018 | 148,540 | $ | 15 | 83,939 | $ | 9 | — | $ | — | $ | 1,613,797 | $ | (3,588) | $ | 1,610,233 | $ | 933,818 | $ | 2,544,051 | ||||||||||||||||
Issuance of earnout share consideration Tranche I | 1,244 | — | 3,256 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Issuance of earnout share consideration Tranche II | 1,244 | — | 3,256 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Issuance of earnout share consideration Tranche III | 1,105 | — | 2,895 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Common stock issued in connection with Harvest Acquisition | 4,200 | 1 | — | — | — | — | 58,211 | — | 58,212 | — | 58,212 | ||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | — | 1,851 | — | 1,851 | — | 1,851 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 39,095 | 39,095 | 43,353 | 82,448 | ||||||||||||||||||||||||
Changes in ownership interest adjustment | — | — | — | — | — | — | (54,015) | — | (54,015) | 54,015 | — | ||||||||||||||||||||||||
Changes in deferred tax liability | — | — | — | — | — | — | 21,393 | — | 21,393 | — | 21,393 | ||||||||||||||||||||||||
Balance, December 31, 2018 | 156,333 | $ | 16 | 93,346 | $ | 9 | — | $ | — | $ | 1,641,237 | $ | 35,507 | $ | 1,676,769 | $ | 1,031,186 | $ | 2,707,955 |
Successor | |||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid In Capital | Treasury Stock | Retained Earnings/ Accumulated Deficit | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | ||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 156,333 | $ | 16 | 93,346 | $ | 9 | $ | 1,641,237 | — | $ | — | $ | 35,507 | $ | 1,676,769 | $ | 1,031,186 | $ | 2,707,955 | ||||||||||||||||
Stock based compensation expense, net of forfeitures | — | — | — | — | 11,089 | — | — | — | 11,089 | — | 11,089 | ||||||||||||||||||||||||
Changes in ownership interest adjustment and in deferred tax liability | — | — | — | — | 23,679 | — | — | — | 23,679 | (32,659) | (8,980) | ||||||||||||||||||||||||
Common stock issued in connection with acquisition | 3,055 | — | — | — | 33,693 | — | — | — | 33,693 | — | 33,693 | ||||||||||||||||||||||||
Final settlement adjustment related to Business Combination | (496) | — | (1,556) | — | (6,095) | — | — | — | (6,095) | (19,150) | (25,245) | ||||||||||||||||||||||||
Common stock issued in connection with warrants exchange | 9,179 | 1 | — | — | 530 | — | — | (2,763) | (2,232) | — | (2,232) | ||||||||||||||||||||||||
Common stock issued related to stock based compensation and other, net | 248 | — | — | — | (771) | — | — | — | (771) | — | (771) | ||||||||||||||||||||||||
Class A Common Stock repurchases | — | — | — | — | — | 1,000 | (10,277) | — | (10,277) | — | (10,277) | ||||||||||||||||||||||||
Class B Common Stock repurchase | — | — | (6,000) | — | — | — | — | — | — | (69,093) | (69,093) | ||||||||||||||||||||||||
Contributions from noncontrolling interest owners | — | — | — | — | — | — | — | — | — | 8,809 | 8,809 | ||||||||||||||||||||||||
Distributions to noncontrolling interest owners | — | — | — | — | — | — | — | — | — | (1,424) | (1,424) | ||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 50,196 | 50,196 | 34,809 | 85,005 | ||||||||||||||||||||||||
Balance, December 31, 2019 | 168,319 | $ | 17 | 85,790 | $ | 9 | $ | 1,703,362 | 1,000 | $ | (10,277) | $ | 82,940 | $ | 1,776,051 | $ | 952,478 | $ | 2,728,529 | ||||||||||||||||
Stock based compensation expense, net of forfeitures | — | — | — | — | 10,029 | — | — | — | 10,029 | — | 10,029 | ||||||||||||||||||||||||
Changes in ownership interest adjustment | — | — | — | — | (55) | — | — | — | (55) | 55 | — | ||||||||||||||||||||||||
Common stock issued related to stock based compensation and other, net | 436 | — | — | — | (792) | — | — | — | (792) | — | (792) | ||||||||||||||||||||||||
Class A Common Stock repurchases | — | — | — | — | — | 4,475 | (28,681) | — | (28,681) | — | (28,681) | ||||||||||||||||||||||||
Distributions to noncontrolling interest owners | — | — | — | — | — | — | — | — | — | (680) | (680) | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (1,208,390) | (1,208,390) | (660,593) | (1,868,983) | ||||||||||||||||||||||||
Balance, December 31, 2020 | 168,755 | $ | 17 | 85,790 | $ | 9 | $ | 1,712,544 | 5,475 | $ | (38,958) | $ | (1,125,450) | $ | 548,162 | $ | 291,260 | $ | 839,422 |
Successor |
Predecessor
|
|||||||||||||||||||||||||
Year Ended
December 31, 2020 |
Year Ended
December 31, 2019 |
July 31, 2018 Through
December 31, 2018 |
January 1, 2018 Through
July 30, 2018 |
|||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||||||||
NET INCOME (LOSS) | $ | (1,868,983) | $ | 85,005 | $ | 82,448 | $ | 218,553 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
Depreciation, depletion and amortization | 283,353 | 523,572 | 177,890 | 137,871 | ||||||||||||||||||||||
Amortization of intangible assets | 14,505 | 14,505 | 6,044 | — | ||||||||||||||||||||||
Exploration expense, non-cash | 563,999 | 1,154 | 567 | — | ||||||||||||||||||||||
Impairment of oil and natural gas properties | 1,381,258 | — | — | — | ||||||||||||||||||||||
Asset retirement obligation accretion | 5,718 | 5,512 | 1,668 | 104 | ||||||||||||||||||||||
Amortization of deferred financing costs | 3,628 | 3,541 | 1,461 | — | ||||||||||||||||||||||
Unrealized (gain) on derivatives, net | (277) | — | — | (9,490) | ||||||||||||||||||||||
(Gain) on sale of equity method investment | (5,071) | — | — | — | ||||||||||||||||||||||
Deferred taxes | (77,834) | 14,261 | 12,128 | 324 | ||||||||||||||||||||||
Contingent consideration change in fair value | — | — | 6,700 | — | ||||||||||||||||||||||
Stock based compensation | 10,029 | 11,089 | 1,851 | — | ||||||||||||||||||||||
Other | (728) | (668) | (773) | (796) | ||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
Accounts receivable | 24,216 | 7,952 | (50,610) | (61,405) | ||||||||||||||||||||||
Accounts payable | (16,961) | (6,834) | 25,041 | (4,522) | ||||||||||||||||||||||
Accrued liabilities | (2,457) | (19,181) | 53,973 | 4,558 | ||||||||||||||||||||||
Drilling advances | (3,506) | 11,960 | (9,559) | — | ||||||||||||||||||||||
Other assets and liabilities, net | (768) | (4,249) | (3,359) | (385) | ||||||||||||||||||||||
Net cash provided by operating activities | 310,121 | 647,619 | 305,470 | 284,812 | ||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||||||||
Proceeds withdrawn from Trust Account | — | — | 656,078 | — | ||||||||||||||||||||||
Acquisition of EnerVest properties | — | 4,250 | (1,219,217) | — | ||||||||||||||||||||||
Acquisitions, other | (73,702) | (93,221) | (146,532) | (150,139) | ||||||||||||||||||||||
Proceeds from sale of equity method investment | 27,074 | — | — | — | ||||||||||||||||||||||
Additions to oil and natural gas properties | (197,858) | (425,124) | (192,252) | (182,068) | ||||||||||||||||||||||
Changes in working capital associated with additions to oil and natural gas properties | (24,354) | (9,911) | 50,633 | (15,246) | ||||||||||||||||||||||
Payment of Contingent Consideration | — | — | (26,000) | — | ||||||||||||||||||||||
Other investing | (1,148) | (242) | (350) | — | ||||||||||||||||||||||
Net cash used in investing activities | (269,988) | (524,248) | (877,640) | (347,453) | ||||||||||||||||||||||
CASH FLOW FROM FINANCING ACTIVITIES | ||||||||||||||||||||||||||
Parents’ contribution, net | — | — | — | 62,641 | ||||||||||||||||||||||
Contributions from noncontrolling interest owners | — | 7,301 | — | — | ||||||||||||||||||||||
Distributions to noncontrolling interest owners | (680) | (1,424) | — | — | ||||||||||||||||||||||
Issuance of common stock | — | — | 355,000 | — | ||||||||||||||||||||||
Proceeds from issuance of long term debt | — | — | 400,000 | — | ||||||||||||||||||||||
Repayments of deferred underwriting compensation | — | — | (22,750) | — | ||||||||||||||||||||||
Cash paid for debt issuance costs | — | — | (23,336) | — | ||||||||||||||||||||||
Class A Common Stock repurchase | (28,681) | (10,277) | — | — | ||||||||||||||||||||||
Class B Common Stock repurchase | — | (69,093) | — | — | ||||||||||||||||||||||
Other financing activities | (844) | (3,003) | (1,009) | — | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | (30,205) | (76,496) | 707,905 | 62,641 | ||||||||||||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 9,928 | 46,875 | 135,735 | — | ||||||||||||||||||||||
Cash and cash equivalents – Beginning of period | 182,633 | 135,758 | 23 | — | ||||||||||||||||||||||
Cash and cash equivalents – End of period | $ | 192,561 | $ | 182,633 | $ | 135,758 | $ | — |
(In thousands) | ||||||||
Fair value of assets acquired | ||||||||
Other current assets | $ | 1,290 | ||||||
Oil and natural gas properties (1)
|
201,337 | |||||||
Total fair value of assets acquired | 202,627 | |||||||
Fair value of liabilities assumed | ||||||||
Asset retirement obligations and other current liabilities | (9,666) | |||||||
Fair value of net assets acquired | $ | 192,961 |
(In thousands) | ||||||||
Purchase Consideration: | ||||||||
Cash consideration | $ | 1,214,966 | ||||||
Stock consideration (1)
|
1,398,238 | |||||||
Fair value of contingent earnout purchase consideration (2)
|
169,000 | |||||||
Total purchase price consideration | $ | 2,782,204 |
(In thousands) | ||||||||
Fair value of assets acquired | ||||||||
Accounts receivable | $ | 61,790 | ||||||
Other current assets | 2,853 | |||||||
Oil and natural gas properties (1)
|
2,813,140 | |||||||
Ironwood equity investment | 18,100 | |||||||
Total fair value of assets acquired | 2,895,883 | |||||||
Fair value of liabilities assumed | ||||||||
Accounts payable and other current liabilities | (65,908) | |||||||
Asset retirement obligations | (34,132) | |||||||
Deferred tax liability | (13,639) | |||||||
Fair value of net assets acquired | $ | 2,782,204 |
(Unaudited Pro Forma) | ||||||||
(In thousands, except per share data) |
Year Ended
December 31, 2018 |
|||||||
Total revenues | $ | 978,431 | ||||||
Net income attributable to Class A Common Stock | 188,934 | |||||||
Net income per share - basic | 1.22 | |||||||
Net income per share - diluted | 1.19 |
(In thousands) | ||||||||
Purchase price allocation: | ||||||||
Accounts receivable | $ | 10,501 | ||||||
Proved oil and natural gas properties | 118,572 | |||||||
Unproved oil and natural gas properties | 22,802 | |||||||
Accounts payable and accrued liabilities | (1,679) | |||||||
Asset retirement obligations | (57) | |||||||
$ | 150,139 |
Successor | Predecessor | ||||||||||||||||||||||||||||
(In thousands) |
Year Ended
December 31, 2020 |
Year Ended
December 31, 2019 |
July 31, 2018 Through
December 31, 2018 |
January 1, 2018 Through
July 30, 2018 |
|||||||||||||||||||||||||
Derivative settlements, realized gain (loss) | $ | 288 | $ | — | $ | — | $ | (27,617) | |||||||||||||||||||||
Unrealized gain on derivatives | 277 | — | — | 9,490 | |||||||||||||||||||||||||
Gain (loss) on derivatives, net | $ | 565 | $ | — | $ | — | $ | (18,127) |
2021 | ||||||||
Natural gas costless collars: | ||||||||
Notional volume (MMBtu) | 12,150,000 | |||||||
Weighted average floor price ($/MMBtu) | $ | 2.31 | ||||||
Weighted average ceiling price ($/MMBtu) | $ | 3.00 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
Long-term debt | $ | 391,115 | $ | 407,500 | $ | 389,835 | $ | 412,000 |
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | Netting | Carrying Amount | ||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||||||||
Natural gas derivative instruments | $ | — | $ | 1,375 | $ | — | $ | 1,375 | $ | (1,098) | $ | 277 | ||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||||||||
Natural gas derivative instruments | $ | — | $ | 1,098 | $ | — | $ | 1,098 | $ | (1,098) | $ | — |
(In thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||
Non-compete intangible assets | $ | 44,400 | $ | 44,400 | ||||||||||
Accumulated amortization | (35,054) | (20,549) | ||||||||||||
Intangible assets, net | $ | 9,346 | $ | 23,851 | ||||||||||
Weighted average amortization period (in years) | 3.25 | 3.25 |
(In thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||
Accrued capital expenditures | $ | 16,368 | $ | 40,722 | ||||||||||
Accrued general and administrative expenditures | 11,243 | 9,753 | ||||||||||||
Accrued interest | 10,000 | 10,000 | ||||||||||||
Accrued ad valorem taxes | 8,145 | 8,741 | ||||||||||||
Other | 20,567 | 26,564 | ||||||||||||
Total other current liabilities | $ | 66,323 | $ | 95,780 |
Successor | Predecessor | ||||||||||||||||||||||||||||
(In thousands) |
Year Ended
December 31, 2020
|
Year Ended
December 31, 2019 |
July 31, 2018 Through
December 31, 2018 |
January 1, 2018 Through
July 30, 2018 |
|||||||||||||||||||||||||
Asset retirement obligations, beginning of period | $ | 95,542 | $ | 85,983 | $ | — | $ | 3,929 | |||||||||||||||||||||
Revisions to estimates | (14,883) | 69 | 39,584 | — | |||||||||||||||||||||||||
Liabilities incurred and assumed | 3,484 | 7,082 | 44,897 | 553 | |||||||||||||||||||||||||
Liabilities settled | (1,457) | (3,104) | (166) | (85) | |||||||||||||||||||||||||
Accretion expense | 5,718 | 5,512 | 1,668 | 104 | |||||||||||||||||||||||||
Asset retirement obligations, end of period | $ | 88,404 | $ | 95,542 | $ | 85,983 | $ | 4,501 |
(In thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||
RBL Facility | $ | — | $ | — | ||||||||||
2026 Senior Notes
|
400,000 | 400,000 | ||||||||||||
Total long-term debt | 400,000 | 400,000 | ||||||||||||
Less: Unamortized deferred financing cost | (8,885) | (10,165) | ||||||||||||
Total debt, net | $ | 391,115 | $ | 389,835 |
(In thousands) | December 31, 2020 | December 31, 2019 | |||||||||
Operating Leases | |||||||||||
Operating lease assets | $ | 6,470 | $ | 4,035 | |||||||
Operating lease liabilities - current | $ | 1,801 | $ | 2,550 | |||||||
Operating lease liabilities - long-term | 5,703 | 1,476 | |||||||||
Total operating lease liabilities | $ | 7,504 | $ | 4,026 | |||||||
Weighted average remaining lease term (in years) | 4.2 | 1.9 | |||||||||
Weighted average discount rate | 4.0 | % | 3.8 | % |
(In thousands) | |||||
Maturity of Lease Liabilities | Operating Leases | ||||
2021 | $ | 2,054 | |||
2022 | 1,843 | ||||
2023 | 1,391 | ||||
2024 | 1,139 | ||||
2025 | 1,135 | ||||
After 2025 | 600 | ||||
Total lease payments | $ | 8,162 | |||
Less: Interest | (658) | ||||
Present value of lease liabilities | $ | 7,504 |
Net Minimum Commitments
(In thousands)
|
Total | 2021 | 2022-2023 | 2024-2025 | 2026 & Beyond | ||||||||||||
Purchase obligations (1)
|
$ | 2,198 | $ | 674 | $ | 1,140 | $ | 384 | $ | — | |||||||
Operating lease obligations (2)
|
8,162 | 2,054 | 3,234 | 2,274 | 600 | ||||||||||||
Total net minimum commitments | $ | 10,360 | $ | 2,728 | $ | 4,374 | $ | 2,658 | $ | 600 |
Successor | Predecessor | ||||||||||||||||||||||||||||
(In thousands) |
Year Ended
December 31, 2020 |
Year Ended
December 31, 2019 |
July 31, 2018
Through December 31, 2018 |
January 1, 2018 Through
July 30, 2018 |
|||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||||||
Federal | $ | (1,167) | $ | — | $ | (1,054) | $ | — | |||||||||||||||||||||
State | (339) | 499 | 381 | 1,461 | |||||||||||||||||||||||||
Total current | (1,506) | 499 | (673) | 1,461 | |||||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||||||
Federal | (71,792) | 13,817 | 11,431 | — | |||||||||||||||||||||||||
State | (6,042) | 444 | 697 | 324 | |||||||||||||||||||||||||
Total deferred | (77,834) | 14,261 | 12,128 | 324 | |||||||||||||||||||||||||
Income tax expense (benefit) | $ | (79,340) | $ | 14,760 | $ | 11,455 | $ | 1,785 |
Successor | Predecessor | ||||||||||||||||||||||||||||
(In thousands) | Year Ended December 31, 2020 | Year Ended December 31, 2019 |
July 31, 2018 Through
December 31, 2018 |
January 1, 2018
Through July 30, 2018 |
|||||||||||||||||||||||||
Income tax expense at the federal statutory rate | $ | (409,148) | $ | 20,966 | $ | 19,706 | $ | — | |||||||||||||||||||||
State income tax expense, net of federal income tax benefits | (12,759) | 847 | 1,028 | 1,785 | |||||||||||||||||||||||||
Noncontrolling interest in partnerships | 141,027 | (7,309) | (9,103) | — | |||||||||||||||||||||||||
Valuation allowances | 201,786 | — | — | — | |||||||||||||||||||||||||
Other | (246) | 256 | (176) | — | |||||||||||||||||||||||||
Income tax expense (benefit) | $ | (79,340) | $ | 14,760 | $ | 11,455 | $ | 1,785 |
Successor | ||||||||||||||
(In thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Investment in partnership | $ | 162,437 | $ | — | ||||||||||
Net operating loss carryforwards | 28,461 | 1,274 | ||||||||||||
Capital loss carryforward | 1,727 | — | ||||||||||||
Oil and natural gas properties | 6,224 | — | ||||||||||||
Capitalized transaction costs | 2,937 | 3,185 | ||||||||||||
Total deferred tax assets | 201,786 | 4,459 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Investment in partnership | — | (76,260) | ||||||||||||
Oil and natural gas properties | — | (6,033) | ||||||||||||
Total deferred tax liabilities | — | (82,293) | ||||||||||||
Net deferred tax assets (liabilities) | 201,786 | (77,834) | ||||||||||||
Valuation allowances | (201,786) | — | ||||||||||||
Net deferred tax assets (liabilities), net of valuation allowances | $ | — | $ | (77,834) |
Restricted Stock Units | Weighted Average Grant Date Fair Value | ||||||||||
Unvested RSUs, beginning of period | 1,099,901 | $ | 12.97 | ||||||||
Granted | 1,219,288 | 6.53 | |||||||||
Vested | (505,124) | 13.03 | |||||||||
Forfeited | (127,428) | 10.20 | |||||||||
Unvested RSUs, end of period | 1,686,637 | $ | 8.51 |
Performance Stock Units | Weighted Average Grant Date Fair Value | ||||||||||
Unvested PSUs, beginning of period | 701,128 | $ | 14.31 | ||||||||
Granted | 401,958 | 6.14 | |||||||||
Vested | (50,261) | 14.58 | |||||||||
Forfeited | (211,400) | 12.07 | |||||||||
Unvested PSUs, end of period | 841,425 | $ | 10.95 |
Years Ended | |||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||
Expected term (in years)
|
2.85
|
2.67 - 2.85
|
|||||||||
Expected volatility |
33.50%
|
31.58% - 33.61%
|
|||||||||
Risk-free interest rate |
1.16%
|
2.29% - 2.48%
|
(In thousands, except per share data) |
Year Ended
December 31, 2020 |
Year Ended
December 31, 2019 |
July 31, 2018
Through
December 31, 2018
|
||||||||||||||
Basic: | |||||||||||||||||
Net income (loss) attributable to Class A Common Stock | $ | (1,208,390) | $ | 47,433 | $ | 39,095 | |||||||||||
Weighted average number of common shares outstanding during the period - basic | 166,270 | 161,886 | 154,527 | ||||||||||||||
Net income (loss) per share of Class A Common Stock - basic
|
$ | (7.27) | $ | 0.29 | $ | 0.25 | |||||||||||
Diluted: | |||||||||||||||||
Net income (loss) attributable to Class A Common Stock | $ | (1,208,390) | $ | 47,433 | $ | 39,095 | |||||||||||
Weighted average number of common shares outstanding during the period - basic | 166,270 | 161,886 | 154,527 | ||||||||||||||
Add: Dilutive effect warrants, stock based compensation, and other | — | 5,161 | 3,705 | ||||||||||||||
Weighted average number of common shares outstanding during the period - diluted | 166,270 | 167,047 | 158,232 | ||||||||||||||
Net income (loss) per share of Class A Common Stock - diluted
|
$ | (7.27) | $ | 0.28 | $ | 0.25 |
Successor | Predecessor | |||||||||||||||||||||||||
(In thousands) |
Year Ended
December 31, 2020 |
Year Ended
December 31, 2019 |
July 31, 2018
Through December 31, 2018 |
January 1, 2018 Through
July 30, 2018 |
||||||||||||||||||||||
Supplemental non-cash operating activity: | ||||||||||||||||||||||||||
Cash paid (received) for income taxes | $ | (724) | $ | 390 | $ | — | $ | 336 | ||||||||||||||||||
Cash paid for interest | 25,895 | 26,226 | 889 | — | ||||||||||||||||||||||
Supplemental non-cash investing and financing activity: | ||||||||||||||||||||||||||
Accruals or liabilities for capital expenditures | $ | 16,368 | $ | 40,722 | $ | 50,633 | $ | 38,028 | ||||||||||||||||||
Contingent Consideration issued in Business Combination | — | — | 149,700 | — | ||||||||||||||||||||||
Non-Compete agreement entered into in Business Combination | — | — | 44,400 | — | ||||||||||||||||||||||
Equity issuances in connection with acquisitions | — | 33,693 | 1,481,692 | — | ||||||||||||||||||||||
Non-cash deemed dividend related to warrant exchange | — | 2,763 | — | — | ||||||||||||||||||||||
Supplemental non-cash lease operating activity: | ||||||||||||||||||||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 5,923 | $ | 6,720 | $ | — | $ | — |
Successor | |||||||||||
(In thousands) | December 31, 2020 | December 31, 2019 | |||||||||
Proved properties | $ | 1,790,492 | $ | 2,863,666 | |||||||
Unproved properties | 339,633 | 951,555 | |||||||||
Total proved and unproved properties | 2,130,125 | 3,815,221 | |||||||||
Accumulated depreciation, depletion and amortization | (983,647) | (701,155) | |||||||||
Net capitalized costs | $ | 1,146,478 | $ | 3,114,066 |
Successor | Predecessor | |||||||||||||||||||||||||
(In thousands) | Year Ended December 31, 2020 | Year Ended December 31, 2019 |
July 31, 2018
Through December 31, 2018 |
January 1, 2018
Through July 30, 2018 |
||||||||||||||||||||||
Acquisition costs: | ||||||||||||||||||||||||||
Proved properties | $ | 49,246 | $ | 106,489 | $ | 1,617,131 | $ | 118,572 | ||||||||||||||||||
Unproved properties | 25,966 | 29,208 | 1,400,302 | 22,802 | ||||||||||||||||||||||
Exploration and development costs | 188,352 | 441,482 | 245,017 | 183,130 | ||||||||||||||||||||||
Total | $ | 263,564 | $ | 577,179 | $ | 3,262,450 | $ | 324,504 |
Successor | Predecessor | |||||||||||||||||||||||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 |
July 31, 2018
Through December 31, 2018 |
January 1, 2018
Through July 30, 2018 |
|||||||||||||||||||||||
Oil (per Bbl) | $ | 38.55 | $ | 59.99 | $ | 67.61 | $ | 63.37 | ||||||||||||||||||
Natural gas (per Mcf) | 1.64 | 2.25 | 2.78 | 2.84 | ||||||||||||||||||||||
NGLs (per Bbl) | 11.62 | 15.73 | 26.25 | 23.74 |
Successor | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Crude Oil (MMBbls) |
Natural Gas
(Bcf) |
Natural Gas Liquids (MMBbls) | Total (MMboe) | Crude Oil (MMBbls) |
Natural Gas
(Bcf) |
Natural Gas Liquids (MMBbls) | Total (MMboe) | ||||||||||||||||||||||||||||||||||||||||
Total proved reserves: | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 52.6 | 197.2 | 23.9 | 109.3 | 50.6 | 176.1 | 20.6 | 100.5 | |||||||||||||||||||||||||||||||||||||||
Extensions | 10.7 | 39.6 | 8.8 | 26.1 | 12.6 | 40.4 | 6.9 | 26.3 | |||||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | (3.8) | 7.8 | (0.2) | (2.7) | (1.9) | (0.3) | 0.3 | (1.7) | |||||||||||||||||||||||||||||||||||||||
Purchases of reserves in place | 1.4 | 2.4 | 0.4 | 2.2 | 4.2 | 22.3 | 0.7 | 8.6 | |||||||||||||||||||||||||||||||||||||||
Production | (11.6) | (39.4) | (4.4) | (22.6) | (12.9) | (41.3) | (4.6) | (24.4) | |||||||||||||||||||||||||||||||||||||||
End of period | 49.3 | 207.6 | 28.5 | 112.3 | 52.6 | 197.2 | 23.9 | 109.3 | |||||||||||||||||||||||||||||||||||||||
Proved developed reserves: | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 40.3 | 165.8 | 18.9 | 86.8 | 35.2 | 149.0 | 16.5 | 76.5 | |||||||||||||||||||||||||||||||||||||||
End of period | 38.1 | 165.5 | 20.2 | 85.8 | 40.3 | 165.8 | 18.9 | 86.8 | |||||||||||||||||||||||||||||||||||||||
Proved undeveloped reserves: | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 12.3 | 31.4 | 5.0 | 22.5 | 15.4 | 27.1 | 4.1 | 24.0 | |||||||||||||||||||||||||||||||||||||||
End of period | 11.2 | 42.1 | 8.3 | 26.5 | 12.3 | 31.4 | 5.0 | 22.5 | |||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||||||||||||||||||||||||||
July 31, 2018 Through December 31, 2018 | January 1, 2018 Through July 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Crude Oil (MMBbls) |
Natural Gas
(Bcf) |
Natural Gas Liquids (MMBbls) | Total (MMboe) | Crude Oil (MMBbls) |
Natural Gas
(Bcf) |
Natural Gas Liquids (MMBbls) | Total (MMboe) | ||||||||||||||||||||||||||||||||||||||||
Total proved reserves: | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 44.2 | 136.8 | 17.4 | 84.3 | 91.7 | 148.2 | 21.4 | 137.8 | |||||||||||||||||||||||||||||||||||||||
Extensions | 12.9 | 25.6 | 3.8 | 21.0 | 3.9 | 8.7 | 1.3 | 6.7 | |||||||||||||||||||||||||||||||||||||||
Revisions of previous estimates | (4.9) | 2.6 | (1.4) | (5.9) | (14.5) | (22.2) | (2.7) | (20.9) | |||||||||||||||||||||||||||||||||||||||
Purchases of reserves in place | 3.5 | 25.2 | 2.7 | 10.4 | 6.1 | 7.9 | 1.2 | 8.6 | |||||||||||||||||||||||||||||||||||||||
Production | (5.1) | (14.1) | (1.9) | (9.3) | (5.8) | (7.6) | (1.1) | (8.2) | |||||||||||||||||||||||||||||||||||||||
End of period | 50.6 | 176.1 | 20.6 | 100.5 | 81.4 | 135.0 | 20.1 | 124.0 | |||||||||||||||||||||||||||||||||||||||
Proved developed reserves: | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 34.3 | 117.8 | 14.4 | 68.3 | 28.0 | 52.3 | 7.5 | 44.2 | |||||||||||||||||||||||||||||||||||||||
End of period | 35.2 | 149.0 | 16.5 | 76.5 | 29.5 | 57.1 | 8.5 | 47.5 | |||||||||||||||||||||||||||||||||||||||
Proved undeveloped reserves: | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 9.9 | 19.0 | 3.0 | 16.1 | 63.7 | 95.9 | 13.9 | 93.6 | |||||||||||||||||||||||||||||||||||||||
End of period | 15.4 | 27.1 | 4.1 | 24.0 | 51.9 | 77.9 | 11.6 | 76.5 |
Successor | Predecessor | |||||||||||||||||||||||||
(In thousands)
|
December 31, 2020 | December 31, 2019 | December 31, 2018 | July 30, 2018 | ||||||||||||||||||||||
Future cash inflows | $ | 2,576,789 | $ | 3,983,118 | $ | 4,451,628 | $ | 6,020,768 | ||||||||||||||||||
Future production costs | (961,116) | (1,365,745) | (1,463,023) | (1,773,608) | ||||||||||||||||||||||
Future development costs | (148,740) | (254,211) | (260,057) | (835,632) | ||||||||||||||||||||||
Future income tax expenses | (31,310) | (88,566) | (96,311) | (31,609) | ||||||||||||||||||||||
Future net cash flows | 1,435,623 | 2,274,596 | 2,632,237 | 3,379,919 | ||||||||||||||||||||||
10% discount to reflect timing of cash flows | (430,671) | (649,128) | (754,709) | (1,122,055) | ||||||||||||||||||||||
Standardized measure of discounted future net cash flows | $ | 1,004,952 | $ | 1,625,468 | $ | 1,877,528 | $ | 2,257,864 |
Successor | Predecessor | |||||||||||||||||||||||||
(In thousands) | Year Ended December 31, 2020 | Year Ended December 31, 2019 |
July 31, 2018
Through December 31, 2018 |
January 1, 2018
Through July 30, 2018 |
||||||||||||||||||||||
Standardized measure of discounted future net cash flows, beginning of period | $ | 1,625,468 | $ | 1,877,528 | $ | 1,457,656 | $ | 1,764,162 | ||||||||||||||||||
Sales of oil, natural gas, and NGLs produced during the period, net of production costs | (395,416) | (753,740) | (364,850) | (388,982) | ||||||||||||||||||||||
Purchases of minerals in place | 26,110 | 145,076 | 141,585 | 150,622 | ||||||||||||||||||||||
Extensions | 285,591 | 463,101 | 429,295 | 125,067 | ||||||||||||||||||||||
Changes in estimated future development costs | 22,838 | 14,749 | 1,372 | (39,154) | ||||||||||||||||||||||
Net change in prices and production costs | (727,125) | (356,055) | 223,177 | 552,761 | ||||||||||||||||||||||
Previously estimated development costs incurred during the period | 92,913 | 162,350 | 98,407 | 144,273 | ||||||||||||||||||||||
Revisions in quantity estimates | (66,059) | (21,157) | (87,852) | (201,417) | ||||||||||||||||||||||
Accretion of discount | 169,659 | 195,457 | 61,237 | 103,931 | ||||||||||||||||||||||
Net change in income taxes | 48,837 | 21,547 | (65,004) | (2,817) | ||||||||||||||||||||||
Net change in timing of production and other | (77,864) | (123,388) | (17,495) | 49,418 | ||||||||||||||||||||||
Standardized measure of discounted future net cash flows, end of period | $ | 1,004,952 | $ | 1,625,468 | $ | 1,877,528 | $ | 2,257,864 |
(a)(1) The following financial statements are included in Part II, Item 8 of this Annual Report on Form 10-K:
|
Page | |||||||
Consolidated Balance Sheets as of December 31, 2020 and 2019
|
||||||||
Consolidated and Combined Statements of Operations for the year ended December 31, 2020, the year ended December 31, 2019, and the periods July 31, 2018 through December 31, 2018 and January 1, 2018 through July 30, 2018.
|
||||||||
Combined Statement of Changes in Parents’ Net Investment for the period January 1, 2018 through July 30, 2018.
|
||||||||
Consolidated Statements of Changes in Stockholders’ Equity for the period July 30, 2018 through December 31, 2018, the year ended December 31, 2019, and the year ended December 31, 2020.
|
||||||||
Consolidated and Combined Statements of Cash Flows for the year ended December 31, 2020, the year ended December 31, 2019, and the periods July 31, 2018 through December 31, 2018 and January 1, 2018 through July 30, 2018.
|
||||||||
Notes to Consolidated and Combined Financial Statements for the year ended December 31, 2020, the year ended December 31, 2019, and the periods July 31, 2018 through December 31, 2018 and January 1, 2018 through July 30, 2018.
|
||||||||
(2) Financial Statement Schedules
|
||||||||
Financial statement schedules have been omitted because they either are not required, not applicable, or the information required to be presented is including in the Company’s financial statements and related notes.
|
||||||||
(3) Exhibits
|
Exhibit
Number |
Description | |||||||
10.10*††
|
||||||||
10.11*††
|
||||||||
10.12*††
|
||||||||
10.13*††
|
||||||||
10.14*††
|
||||||||
10.15*††
|
||||||||
10.16*††
|
||||||||
10.17*†† | ||||||||
10.18*†† | ||||||||
10.19*†† | ||||||||
10.20*†† | ||||||||
10.21*†† |
Form of 2020 Restricted Stock Unit Grant Notice and attached Restricted Stock Unit Agreement under the Magnolia Oil & Gas Corporation Long Term Incentive Plan (incorporated herein by reference to Exhibit 10.17 filed with the Annual Report on Form 10-K, filed on February 26, 2020 (File No. 001-38083)).
|
|||||||
10.22*†† |
Form of 2020 Performance Share Unit Grant Notice and attached Performance Share Unit Agreement under Magnolia Oil & Gas Corporation Long Term Incentive Plan (incorporated herein by reference to Exhibit 10.18 filed with the Annual Report on Form 10-K, filed on February 26, 2020 (File No. 001-38083)).
|
|||||||
10.23*†† | ||||||||
10.24*†† | ||||||||
10.25**†† | ||||||||
10.26**†† | ||||||||
10.27**†† | ||||||||
10.28**†† | ||||||||
21.1** | ||||||||
23.1** | ||||||||
Exhibit
Number |
Description | |||||||
23.2** | ||||||||
23.3** | ||||||||
24.1** | ||||||||
31.1** | ||||||||
31.2** | ||||||||
32.1*** | ||||||||
99.1** | ||||||||
101.INS** | XBRL Instance Document. | |||||||
101.SCH** | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB** | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104** | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
MAGNOLIA OIL & GAS CORPORATION | |||||||||||
Date: February 23, 2021
|
By: | /s/ Stephen Chazen | |||||||||
Stephen Chazen | |||||||||||
Chief Executive Officer (Principal Executive Officer) |
Name | Title | Date | ||||||||||||||||||
/s/ Stephen Chazen
Stephen Chazen
|
President, Chief Executive Officer
and Chairman (Principal Executive Officer) |
February 23, 2021
|
||||||||||||||||||
/s/ Christopher Stavros
Christopher Stavros
|
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
February 23, 2021
|
||||||||||||||||||
/s/ Arcilia C. Acosta*
Arcilia C. Acosta
|
Director |
February 23, 2021
|
||||||||||||||||||
/s/ Angela M. Busch*
Angela M. Busch
|
Director |
February 23, 2021
|
||||||||||||||||||
/s/ Edward P. Djerejian*
Edward P. Djerejian
|
Director |
February 23, 2021
|
||||||||||||||||||
/s/ James R. Larson*
James R. Larson
|
Director |
February 23, 2021
|
||||||||||||||||||
/s/ Dan F. Smith*
Dan F. Smith
|
Director |
February 23, 2021
|
||||||||||||||||||
/s/ John B. Walker*
John B. Walker
|
Director |
February 23, 2021
|
||||||||||||||||||
By* /s/ Valerie Chase
Valerie Chase
as Attorney-in-fact
|
Participant: |
[_________]
|
||||
Date of Grant:
|
[_________] | ||||
Total Number of Restricted Stock Units: |
[_________] (“Grant Date Number of RSUs”)
|
||||
Vesting Commencement Date:
|
[_________] (“Vesting Commencement Date”)
|
||||
Vesting Schedule:
|
Subject to the terms and conditions of this Grant Notice, the Agreement, and the Plan, the RSUs shall vest according to the following schedule:
1/3rd of the Grant Date Number of RSUs on the first anniversary of the Vesting Commencement Date;
1/3rd of the Grant Date Number of RSUs on the second anniversary of the Vesting Commencement Date; and
1/3rd of the Grant Date Number of RSUs on the third anniversary of the Vesting Commencement Date;
except as provided below, so long as you remain continuously employed or engaged by the Company or an Affiliate, as applicable, from the Date of Grant through each such vesting date.
|
Impact of Change in Control and Certain Qualifying Terminations
of Employment: |
In the event of the termination of your employment or service by the Company or an Affiliate without Cause or your resignation for Good Reason, in each case, within 12 months following a Change in Control, the RSUs will vest in full as of such termination. In the event of a Change in Control pursuant to which the successor company or a parent or subsidiary thereof does not assume the RSUs, then so long as you have remained continuously employed by or have continued to provide services to the Company or an Affiliate, as applicable, from the Date of Grant through the date of such Change in Control, the RSUs will vest in full upon such Change in Control.
In the event of termination of your employment or service (i) by the Company or an Affiliate without Cause, (ii) due to your resignation for Good Reason, (iii) due to your death, or (iv) due to your Disability, in each case, before the third anniversary of the Vesting Commencement Date and unless the immediately preceding paragraph is applicable, then a number of RSUs will vest on the termination date equal to the product of (a) the number of RSUs scheduled to vest on the anniversary of the Vesting Commencement Date immediately following the termination date, times (b) a fraction, the numerator of which is the number of full months (counting the month in which your termination of employment occurs as a full month), beginning with the Vesting Commencement Date or anniversary thereof immediately preceding the termination date, during which you were employed or engaged by the Company or an Affiliate, and the denominator of which is 12. The portion, if any, of your RSUs that have not vested as of the termination date after applying the provisions of this paragraph shall become null and void as of the termination date.
|
Participant: |
[_________]
|
|||||||
Date of Grant:
|
[_________] | |||||||
Total Number of Performance Restricted Stock Units:
|
[_________] (“Target Number of PRSUs”)
|
|||||||
Vesting Commencement Date:
|
[_________] (“Vesting Commencement Date”)
|
|||||||
General Requirements: |
Subject to the terms and conditions of this Grant Notice, the Agreement and the Plan, a number of PRSUs up to the Target Number of PRSUs are eligible to become earned and vest, and Stock may become issuable with respect to such PRSUs, based on (i) achievement of the performance criteria set forth herein, and (ii) your satisfaction of the service-based vesting conditions.
|
|||||||
Performance Criteria: |
The PRSUs are subject to the Committee’s certification of the achievement of the following performance criteria:
|
|||||||
Performance Criteria |
Percentage of Target
Number of PRSUs Earned |
|||||||
The average closing price of the Stock for any 20 consecutive trading days during the Performance Period is at least 15% greater than the average closing price of the Stock for the 20 consecutive trading days ending on and including [________, 202_] (for the avoidance of doubt, the average closing price that must be achieved is $[___]) (“Target Level”).
|
100% | |||||||
The average closing price of the Stock for any 20 consecutive trading days during the Performance Period does not reach the Target Level.
|
0% | |||||||
The period over which the Company’s performance will be measured for purposes of applying the performance criteria set forth above shall be from [________, 202_] to [________, 202_] (the “Performance Period”).
If and when the Target Level is achieved and certified, the Target Number of PRSUs shall become “Earned PRSUs” and the date the Committee certifies such achievement (which shall occur as soon as reasonably practicable following the last day of the applicable 20 consecutive trading day period) shall be the “Performance Achievement Date.” If the Target Level is not achieved during the Performance Period, then all PRSUs (whether or not they have become Vested PRSUs (as defined below) and including all rights arising from such PRSUs and from being a holder thereof) will terminate automatically on the last day of the Performance Period, without any further action by the Company, and will be forfeited by the Participant without consideration or notice.
|
||||||||
Service-Based Vesting Conditions:
|
Subject to the terms and conditions of this Grant Notice, the Agreement, and the Plan, PRSUs shall vest according to the following schedule:
1/3rd of the Target Number of PRSUs on the first anniversary of the Vesting Commencement Date;
1/3rd of the Target Number of PRSUs on the second anniversary of the Vesting Commencement Date; and
1/3rd of the Target Number of PRSUs on the third anniversary of the Vesting Commencement Date;
provided that, except as provided below, you must remain continuously employed or engaged by the Company or an Affiliate, as applicable, from the Date of Grant through each such vesting date (each such date, a “Vesting Date”).
If and when you satisfy the service-based vesting conditions above for a given Vesting Date, the applicable amount of the Target Number of PRSUs shall become “Vested PRSUs.” In the event of the termination of your employment or service with the Company or an Affiliate other than as described below, at any time prior to the time all PRSUs become Vested PRSUs, all unvested PRSUs (whether or not they have become Earned PRSUs and including all rights arising from such PRSUs and from being a holder thereof) will terminate automatically without any further action by the Company and will be forfeited without consideration or notice.
|
Settlement of Vested and Earned PRSUs: |
Except as otherwise provided below, no payment shall be made with respect to any PRSUs subject to this Award until such PRSUs have become both Earned PRSUs and Vested PRSUs in accordance with the provisions above. If the Performance Achievement Date occurs (1) prior to an applicable Vesting Date for PRSUs, then such PRSUs that are scheduled to vest on that Vesting Date will become payable as of such Vesting Date provided such PRSUs become Vested PRSUs in accordance with the “Service-Based Vesting Conditions” section above; or (2) after an applicable Vesting Date for PRSUs, then such PRSUs that became Vested PRSUs as of that Vesting Date will become payable as of the Performance Achievement Date once such PRSUs become Earned PRSUs in accordance with the “Performance Criteria” section above. In all cases, settlement will occur in accordance with Section 4 of the Agreement.
|
|||||||
Treatment upon a Change in Control: |
If a Change in Control occurs:
(i) prior to the Performance Achievement Date, then all PRSUs that remain outstanding under this Award (i.e., that have not been previously forfeited) will cease to be subject to the performance criteria above as of the date of such Change in Control and will be deemed Earned PRSUs for purposes of this Grant Notice and the Agreement (for the avoidance of doubt, (a) if such a Change in Control occurs, then the date of the Change in Control shall be deemed to be the Performance Achievement Date for purposes of this Grant Notice and the Agreement, and (b) if such a Change in Control occurs following any Vesting Date on which PRSUs have previously become Vested PRSUs, then such Vested PRSUs shall become payable immediately upon the date of the Change in Control); and/or
(ii) prior to the satisfaction of all service-based vesting conditions described above, then Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) shall remain subject to your continued employment or service through the applicable Vesting Date(s), except as provided below in the “Impact of Certain Qualifying Terminations of Employment following a Change in Control” section of this Grant Notice.
Notwithstanding the foregoing, in the event of a Change in Control pursuant to which the successor company or a parent or subsidiary thereof does not assume the PRSUs (a “Change in Control Vesting Event”), then so long as you have remained continuously employed by or have continued to provide services to the Company or an Affiliate, as applicable, from the Date of Grant through the date of such Change in Control, any unvested Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) will become Vested PRSUs upon such Change in Control and will be settled in accordance with Section 4 of the Agreement.
|
Impact of Certain Qualifying Terminations of Employment following a Change in Control: |
In the event of the termination of your employment or service by the Company or an Affiliate without Cause or upon your resignation for Good Reason, in each case, within 12 months following a Change in Control (a “CIC Termination Vesting Event”), any unvested Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) will become Vested PRSUs as of the date of such CIC Termination Vesting Event and will be settled in accordance with Section 4 of the Agreement.
|
|||||||
Impact of Certain Other Qualifying Terminations of Employment:
|
If termination of your employment or service (A) by the Company or an Affiliate without Cause, (B) due to your resignation for Good Reason, (C) due to your death, or (D) due to your Disability, in each case (a “Pro-Rata Vesting Event”), occurs:
(i) prior to the Performance Achievement Date, then the PRSUs will cease to be subject to the performance criteria above as of the date of such Pro-Rata Vesting Event and a number of PRSUs equal to the Target Number of PRSUs will remaining outstanding and will be deemed Earned PRSUs for purposes of this Grant Notice and the Agreement (for the avoidance of doubt, (a) if such a Pro-Rata Vesting Event occurs, then the date of such Pro-Rata Vesting Event shall be deemed to be the Performance Achievement Date for purposes of this Grant Notice and the Agreement, and (b) if such Pro-Rata Vesting Event occurs following any Vesting Date on which PRSUs have previously become Vested PRSUs, then such Vested PRSUs shall become payable immediately upon the date of the Pro-Rata Vesting Event); and/or
(ii) prior to the satisfaction of all service-based vesting conditions described above, unless the “Impact of Certain Qualifying Terminations of Employment following a Change in Control” section of this Grant Notice is applicable, then a number of Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) will become Vested PRSUs as of the date of such Pro-Rata Vesting Event, equal to (a) the product of (1) the Target Number of PRSUs, times (2) a fraction, the numerator of which is the number of full months (counting the month in which your termination of employment occurs as a full month), beginning with the Vesting Commencement Date, during which you were employed or engaged by the Company or an Affiliate (which numerator may not exceed [__]), and the denominator of which is [__]; minus (b) the cumulative number of PRSUs, if any, that have previously become Vested PRSUs in accordance with the terms of this Grant Notice. The portion, if any, of the Earned PRSUs that have not become Vested PRSUs as of the date of the Pro-Rata Vesting Event after applying the provisions of this paragraph shall become null and void and shall be forfeited as of such date.
|
Participant:
|
[_________]
|
|||||||
Date of Grant: | [_________] | |||||||
Total Number of Performance Restricted Stock Units:
|
[_________] (“Target Number of PRSUs”)
|
|||||||
Vesting Commencement Date:
|
[_________] (“Vesting Commencement Date”)
|
|||||||
General Requirements: |
Subject to the terms and conditions of this Grant Notice, the Agreement and the Plan, a number of PRSUs up to the Target Number of PRSUs are eligible to become earned and vest, and Stock may become issuable with respect to such PRSUs, based on (i) achievement of the performance criteria set forth herein, and (ii) your satisfaction of the service-based vesting conditions.
|
|||||||
Performance Criteria: |
The PRSUs are subject to the Committee’s certification of the achievement of the following performance criteria:
|
|||||||
Performance Criteria |
Percentage of Target
Number of PRSUs Earned |
|||||||
The average closing price of the Stock for any 20 consecutive trading days during the Performance Period is at least 15% greater than the average closing price of the Stock for the 20 consecutive trading days ending on and including [________, 202_] (for the avoidance of doubt, the average closing price that must be achieved is $[___]) (“Target Level”).
|
100% | |||||||
The average closing price of the Stock for any 20 consecutive trading days during the Performance Period does not reach the Target Level.
|
0% | |||||||
The period over which the Company’s performance will be measured for purposes of applying the performance criteria set forth above shall be from [________, 202_] to [________, 202_] (the “Performance Period”).
If and when the Target Level is achieved and certified, the Target Number of PRSUs shall become “Earned PRSUs” and the date the Committee certifies such achievement (which shall occur as soon as reasonably practicable following the last day of the applicable 20 consecutive trading day period) shall be the “Performance Achievement Date.” If the Target Level is not achieved during the Performance Period, then all PRSUs (whether or not they have become Vested PRSUs (as defined below) and including all rights arising from such PRSUs and from being a holder thereof) will terminate automatically on the last day of the Performance Period, without any further action by the Company, and will be forfeited by the Participant without consideration or notice.
|
||||||||
Service-Based Vesting Conditions:
|
Subject to the terms and conditions of this Grant Notice, the Agreement, and the Plan, PRSUs shall vest according to the following schedule:
100% of the Target Number of PRSUs on the third anniversary of the Vesting Commencement Date;
provided that, except as provided below, you must remain continuously employed or engaged by the Company or an Affiliate, as applicable, from the Date of Grant through such vesting date (such date, the “Vesting Date”).
If and when you satisfy the service-based vesting conditions above for the Vesting Date, the Target Number of PRSUs shall become “Vested PRSUs.” In the event of the termination of your employment or service with the Company or an Affiliate other than as described below, at any time prior to the time the PRSUs become Vested PRSUs, all unvested PRSUs (whether or not they have become Earned PRSUs and including all rights arising from such PRSUs and from being a holder thereof) will terminate automatically without any further action by the Company and will be forfeited without consideration or notice.
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Settlement of Vested and Earned PRSUs: |
Except as otherwise provided below, no payment shall be made with respect to any PRSUs subject to this Award until such PRSUs have become both Earned PRSUs and Vested PRSUs in accordance with the provisions above. If the Performance Achievement Date occurs (1) prior to the Vesting Date for PRSUs, then such PRSUs will become payable as of the Vesting Date provided such PRSUs become Vested PRSUs in accordance with the “Service-Based Vesting Conditions” section above; or (2) after the Vesting Date for PRSUs, then such PRSUs that became Vested PRSUs as of the Vesting Date will become payable as of the Performance Achievement Date once such PRSUs become Earned PRSUs in accordance with the “Performance Criteria” section above. In all cases, settlement will occur in accordance with Section 4 of the Agreement.
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Treatment upon a Change in Control: |
If a Change in Control occurs:
(i) prior to the Performance Achievement Date, then all PRSUs that remain outstanding under this Award (i.e., that have not been previously forfeited) will cease to be subject to the performance criteria above as of the date of such Change in Control and will be deemed Earned PRSUs for purposes of this Grant Notice and the Agreement (for the avoidance of doubt, (a) if such a Change in Control occurs, then the date of the Change in Control shall be deemed to be the Performance Achievement Date for purposes of this Grant Notice and the Agreement, and (b) if such a Change in Control occurs following the Vesting Date such that PRSUs have previously become Vested PRSUs, then such Vested PRSUs shall become payable immediately upon the date of the Change in Control); and/or
(ii) prior to the satisfaction of the service-based vesting conditions described above, then Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) shall remain subject to your continued employment or service through the Vesting Date, except as provided below in the “Impact of Certain Qualifying Terminations of Employment following a Change in Control” section of this Grant Notice.
Notwithstanding the foregoing, in the event of a Change in Control pursuant to which the successor company or a parent or subsidiary thereof does not assume the PRSUs (a “Change in Control Vesting Event”), then so long as you have remained continuously employed by or have continued to provide services to the Company or an Affiliate, as applicable, from the Date of Grant through the date of such Change in Control, any unvested Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) will become Vested PRSUs upon such Change in Control and will be settled in accordance with Section 4 of the Agreement.
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Impact of Certain Qualifying Terminations of Employment following a Change in Control: |
In the event of the termination of your employment or service by the Company or an Affiliate without Cause or upon your resignation for Good Reason, in each case, within 12 months following a Change in Control (a “CIC Termination Vesting Event”), any unvested Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) will become Vested PRSUs as of the date of such CIC Termination Vesting Event and will be settled in accordance with Section 4 of the Agreement.
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Impact of Certain Other Qualifying Terminations of Employment:
|
If termination of your employment or service (A) by the Company or an Affiliate without Cause, (B) due to your resignation for Good Reason, (C) due to your death, or (D) due to your Disability, in each case (a “Pro-Rata Vesting Event”), occurs:
(i) prior to the Performance Achievement Date, then the PRSUs will cease to be subject to the performance criteria above as of the date of such Pro-Rata Vesting Event and a number of PRSUs equal to the Target Number of PRSUs will remaining outstanding and will be deemed Earned PRSUs for purposes of this Grant Notice and the Agreement (for the avoidance of doubt, (a) if such a Pro-Rata Vesting Event occurs, then the date of such Pro-Rata Vesting Event shall be deemed to be the Performance Achievement Date for purposes of this Grant Notice and the Agreement, and (b) if such Pro-Rata Vesting Event occurs following the Vesting Date such that PRSUs have previously become Vested PRSUs, then such Vested PRSUs shall become payable immediately upon the date of the Pro-Rata Vesting Event); and/or
(ii) prior to the satisfaction of the service-based vesting conditions described above, unless the “Impact of Certain Qualifying Terminations of Employment following a Change in Control” section of this Grant Notice is applicable, then a number of Earned PRSUs (including Earned PRSUs described in clause (i) immediately above) will become Vested PRSUs as of the date of such Pro-Rata Vesting Event, equal to the product of (a) the Target Number of PRSUs, times (b) a fraction, the numerator of which is the number of full months (counting the month in which your termination of employment occurs as a full month), beginning with the Vesting Commencement Date, during which you were employed or engaged by the Company or an Affiliate (which numerator may not exceed [__]), and the denominator of which is [__]. The portion, if any, of the Earned PRSUs that have not become Vested PRSUs as of the date of the Pro-Rata Vesting Event after applying the provisions of this paragraph shall become null and void and shall be forfeited as of such date.
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Company
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Jurisdiction of Organization
|
|||||||
Magnolia Oil & Gas Parent LLC | Delaware | |||||||
Magnolia Oil & Gas Intermediate LLC | Delaware | |||||||
Magnolia Oil & Gas Operating LLC | Delaware | |||||||
Magnolia Oil & Gas Finance Corp. |
Delaware
|
|||||||
MGY Louisiana LLC | Delaware | |||||||
Highlander Oil & Gas LLC | Delaware | |||||||
Highlander Oil & Gas Asset LLC | Delaware | |||||||
Name | Title | |||||||
/s/ Stephen Chazen
Stephen Chazen
|
Chairman, President and Chief Executive Officer
(Principal Executive Officer)
|
|||||||
/s/ Christopher Stavros
Christopher Stavros
|
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||
/s/ Arcilia C. Acosta
Arcilia C. Acosta
|
Director | |||||||
/s/ Angela M. Busch
Angela M. Busch
|
Director | |||||||
/s/ Edward P. Djerejian
Edward P. Djerejian
|
Director | |||||||
/s/ James R. Larson
James R. Larson
|
Director | |||||||
/s/ Dan F. Smith
Dan F. Smith
|
Director | |||||||
/s/ John B. Walker
John B. Walker
|
Director | |||||||
Date: February 23, 2021 | By: | /s/ Stephen Chazen | ||||||||||||
Stephen Chazen | ||||||||||||||
Chief Executive Officer
(Principal Executive Officer) |
Date: February 23, 2021 | By: | /s/ Christopher Stavros | ||||||||||||
Christopher Stavros | ||||||||||||||
Chief Financial Officer
(Principal Financial Officer) |
Date: February 23, 2021 | By: | /s/ Stephen Chazen | ||||||||||||
Stephen Chazen | ||||||||||||||
Chief Executive Officer
(Principal Executive Officer) |
Date: February 23, 2021 | By: | /s/ Christopher Stavros | ||||||||||||
Christopher Stavros | ||||||||||||||
Chief Financial Officer
(Principal Financial Officer) |