|12 Months Ended|
Dec. 31, 2019
|Subsequent Events [Abstract]|
Sale of Water Infrastructure Assets
In December 2019, the Company entered into an agreement to divest its water infrastructure assets across its SCOOP position to a third-party water service provider. This transaction closed on January 2, 2020. The Company received $50.0 million in cash upon closing and has an opportunity to earn potential additional incentive payments over the next 15 years, subject to the Company’s ability to meet certain thresholds which will be driven by, among other things, the Company’s future development program and future water production levels. The agreement contains no minimum volume commitments. The assets related to this transaction are included in the amortization base of the full cost pool and the Company does not expect to recognize a gain or loss in the statement of operations.
In January and February 2020, the Company early terminated some of its fixed price swaps for natural gas scheduled to settle in August through November of 2020 covering an average of approximately 294,000 MMBtu of natural gas per day over this four month period. The value of these early terminations was used to enhance the fixed price for new natural gas swaps for April and May of 2020 covering an average of approximately 472,000 MMBtu of natural gas per day over this two month period at a weighted average price of $2.85 per MMBtu.
Debt RepurchasesIn January 2020, the Company used borrowings under its revolving credit facility to repurchase in the open market approximately $10.2 million aggregate principal amount of its 2024 Notes, 2025 Notes, and 2026 Notes for $6.9 million.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef