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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2013	Oct. 28, 2013
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Entity Registrant Name	Diamondback Energy, Inc.
Entity Central Index Key	0001539838
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		47,067,116

Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 53,100	$ 26,358
Accounts receivable:
Joint interest and other	9,020	5,959
Oil and natural gas sales	21,141	8,081
Related party	1,121	772
Inventories	6,228	6,195
Deferred income taxes	423	1,857
Derivative instruments	223	0
Prepaid expenses and other	659	1,053
Total current assets	91,915	50,275
Property and equipment
Oil and natural gas properties, based on the full cost method of accounting ($424,556,000 and $121,245,000 excluded from amortization at September 30, 2013 and December 31, 2012, respectively)	1,540,598	697,742
Other property and equipment	9,168	2,337
Accumulated depletion, depreciation, amortization and impairment	(188,645)	(145,837)
Property and equipment, net of accumulated depreciation, depletion, amortization and impairment	1,361,121	554,242
Derivative instruments-long term	527	0
Other assets	12,333	2,184
Total assets	1,465,896	606,701
Current liabilities:
Accounts payable trade	24,012	12,141
Accounts payable-related party	271	18,813
Accrued capital expenditures	55,190	29,397
Other accrued liabilities	21,040	10,649
Revenues and royalties payable	6,860	3,270
Derivative instruments	1,933	4,817
Note payable-short term	145	145
Total current liabilities	109,451	79,232
Long-term debt	450,085	193
Derivative instruments-long term	0	388
Asset retirement obligations-long term	2,878	2,125
Deferred income taxes-noncurrent	80,544	62,695
Total liabilities	642,958	144,633
Contingencies (Note 13)
Stockholders’ equity:
Common stock, $0.01 par value, 100,000,000 shares authorized, 47,021,035 issued and outstanding at September 30, 2013; 36,986,532 issued and outstanding at December 31, 2012	470	370
Additional paid-in capital	840,079	513,772
Accumulated deficit	(17,611)	(52,074)
Total stockholders’ equity	822,938	462,068
Total liabilities and stockholders’ equity	$ 1,465,896	$ 606,701

Consolidated Balance Sheet (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Oil and natural gas properties, amortization excluded	$ 424,556	$ 121,245
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	47,021,035	36,986,532
Common Stock, Shares, Outstanding	47,021,035	36,986,532

Combined Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:
Oil sales	$ 53,086	$ 14,530	$ 119,373	$ 43,542
Natural gas sales	859	208	2,586	605
Natural gas sales - related party	704	370	1,796	631
Natural gas liquid sales	1,970	671	5,441	2,246
Natural gas liquid sales - related party	1,172	1,035	2,898	2,171
Total revenues	57,791	16,814	132,094	49,195
Costs and expenses:
Lease operating expenses	4,718	3,242	14,527	8,667
Lease operating expenses - related party	246	267	840	841
Production and ad valorem taxes	3,420	1,194	7,970	2,992
Production and ad valorem taxes - related party	133	99	325	199
Gathering and transportation	69	9	175	61
Gathering and transportation - related party	192	109	466	203
Depreciation, depletion and amortization	17,423	6,136	42,976	16,552
General and administrative expenses	1,810	1,323	6,350	2,803
General and administrative expenses - related party	311	327	863	1,684
Asset retirement obligation accretion expense	46	22	134	63
Total costs and expenses	28,368	12,728	74,626	34,065
Income from operations	29,423	4,086	57,468	15,130
Other income (expense)
Interest income	1	1	1	3
Interest expense	(1,089)	(1,130)	(2,109)	(3,184)
Other income - related party	270	643	1,047	1,654
Gain (loss) on derivative instruments, net	(4,910)	(3,148)	(1,881)	2,017
Loss from equity investment	0	0	0	(67)
Total other income (expense), net	(5,728)	(3,634)	(2,942)	423
Income before income taxes	23,695	452	54,526	15,553
Provision for income taxes
Deferred income tax provision	9,099	0	20,063	0
Net income	$ 14,596	452	$ 34,463	15,553
Earnings per common share
Basic (in dollars per share)	$ 0.33		$ 0.85
Diluted (in dollars per share)	$ 0.33		$ 0.85
Weighted average common shares outstanding
Basic (in shares)	44,385,107		40,308,989
Diluted (in shares)	44,697,609		40,523,764
Pro forma information
Income before income taxes, as reported	$ 23,695	452	$ 54,526	15,553
Pro forma provision for income taxes		161		5,545
Pro forma net income		$ 291		$ 10,008
Pro forma earnings per common share - basic and diluted		$ 0.02		$ 0.68
Pro forma weighted average common shares outstanding - basic and diluted		14,697,496		14,697,496

Combined Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2013 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital	Accumulated Deficit
Balance at beginning of period at Dec. 31, 2012	$ 462,068	$ 370	$ 513,772	$ (52,074)
Balance at beginning of period, shares at Dec. 31, 2012	36,986,532	36,986,532
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	$ 1,845		1,845
Common shares issued in public offering, net of offering costs	321,946	$ 98	321,848
Common shares issued in public offering, net of offering costs, shares		9,775,000
Exercise of stock options and vesting of restricted stock units	2,616	$ 2	2,614
Exercise of stock options and awards of restricted stock, shares		259,503
Net income	34,463			34,463
Balance at end of period at Sep. 30, 2013	$ 822,938	$ 470	$ 840,079	$ (17,611)
Balance at end of period, shares at Sep. 30, 2013	47,021,035	47,021,035

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Topic 260
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 944
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Combined Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 34,463	$ 15,553
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for deferred income taxes	20,063	0
Asset retirement obligation accretion expense	134	63
Depreciation, depletion, and amortization	42,976	16,552
Amortization of debt issuance costs	526	347
Change in fair value of derivative instruments	(3,733)	(2,017)
Loss from equity investment	0	67
Equity based compensation expense	1,426	873
Gain on sale of assets	(31)	(26)
Changes in operating assets and liabilities:
Accounts receivable	(13,262)	(4,256)
Accounts receivable-related party	(350)	5,061
Inventories	309	(44)
Prepaid expenses and other	(1,376)	1
Accounts payable and accrued liabilities	7,324	2,145
Accounts payable and accrued liabilities-related party	(82)	2,289
Revenues and royalties payable	3,260	(740)
Revenues and royalties payable-related party	0	(2,404)
Net cash provided by operating activities	91,647	33,464
Cash flows from investing activities:
Additions to oil and natural gas properties-related party	(188,201)	(73,237)
Additions to oil and natural gas properties-related party	(11,594)	(8,264)
Acquisition of Gulfport properties	(18,550)	0
Acquisition of mineral interests	(440,000)	0
Acquisition of leasehold interests	(166,635)	0
Purchase of other property and equipment	(4,965)	(778)
Proceeds from sale of property and equipment	62	26
Settlement of non-hedge derivative instruments	(289)	(7,025)
Receipt on derivative margins	0	2,325
Net cash used in investing activities	(830,172)	(86,953)
Cash flows from financing activities:
Proceeds from borrowings on credit facility	49,000	15,000
Repayment on credit facility	(49,000)	0
Proceeds from senior notes	450,000	0
Proceeds from note payable - related party	0	30,045
Debt issuance costs	(9,524)	(72)
Public offering costs	(505)	(1,009)
Proceeds from public offering	322,680	0
Exercise of stock options	2,616	0
Contributions by members	0	4,008
Net cash provided by financing activities	765,267	47,972
Net increase (decrease) in cash and cash equivalents	26,742	(5,517)
Cash and cash equivalents at beginning of period	26,358	6,959
Cash and cash equivalents at end of period	53,100	1,442
Supplemental disclosure of cash flow information:
Interest paid, net of capitalized interest	383	2,778
Supplemental disclosure of non-cash transactions:
Asset retirement obligation incurred	162	145
Asset retirement obligation acquired	471	0
Distribution of equity method investments	0	10,504
Note payable exchanged for equipment	$ 0	$ 411

Description of the Business and Basis of Presentation	9 Months Ended
Description of the Business and Basis of Presentation	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business and Basis of Presentation	DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Organization and Description of the Business Diamondback Energy, Inc. (“Diamondback” or the “Company”) together with its subsidiaries, is an independent oil and gas company currently focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback was incorporated in Delaware on December 30, 2011, and did not conduct any material business operations until October 11, 2012 when Diamondback merged with its parent entity, Diamondback Energy LLC, with Diamondback continuing as the surviving entity (the “Merger”). Prior to the Merger, Diamondback Energy LLC was a holding company and did not conduct any material business operations other than its ownership of Diamondback’s common stock and the membership interests in Diamondback O&G LLC (formerly known as Windsor Permian LLC, or “Windsor Permian”). As a result of the Merger, Windsor Permian became a wholly-owned subsidiary of Diamondback. Also on October 11, 2012, Wexford Capital LP (“Wexford”), our equity sponsor, caused all of the outstanding equity interests in Windsor UT LLC (“Windsor UT”) to be contributed to Windsor Permian prior to the Merger in a transaction referred to as the “Windsor UT Contribution”. The Windsor UT Contribution was treated as a combination of entities under common control with assets and liabilities transferred at their carrying amounts in a manner similar to a pooling of interests. We refer to the historical results of Windsor Permian and Windsor UT prior to October 11, 2012 as our “Predecessors”. Immediately after the Merger on October 11, 2012, Diamondback acquired from Gulfport Energy Corporation (“Gulfport”) all of its oil and natural gas interests in the Permian Basin (the “Gulfport properties”) in exchange for shares of Diamondback common stock and a promissory note in a transaction referred to as the “Gulfport transaction”. The Gulfport transaction was treated as a business combination accounted for under the acquisition method of accounting with the identifiable assets and liabilities recognized at fair value on the date of transfer. See Note 3—Acquisitions for information regarding the acquisition. On October 17, 2012, the Company completed its initial public offering (“IPO”) of 14,375,000 shares of common stock, which included 1,875,000 shares of common stock issued pursuant to an option to purchase additional shares granted to the underwriters. The stock was sold to the public at $17.50 per share and the Company received net proceeds of approximately $234.1 million from the sale of these shares of common stock, net of offering expenses and underwriting discounts and commissions. In the first quarter of 2013, Windsor UT merged with and into Windsor Permian and Windsor Permian, the surviving entity in the merger, was renamed Diamondback O&G LLC (“Diamondback O&G”). On May 21, 2013, the Company completed an underwritten primary public offering of 5,175,000 shares of common stock, which included 675,000 shares of common stock issued pursuant to an option to purchase additional shares granted to the underwriters. The stock was sold to the public at $29.25 per share and the Company received net proceeds of approximately $144.4 million from the sale of these shares of common stock, net of offering expenses and underwriting discounts and commissions. On June 24, 2013, Gulfport and certain entities controlled by Wexford completed an underwritten secondary public offering of 6,000,000 shares of the Company’s common stock and, on July 5, 2013, the underwriters purchased an additional 869,222 shares of the Company’s common stock from these selling stockholders pursuant to an option to purchase such additional shares granted to the underwriters. The shares were sold to the public at $34.75 per share and the selling stockholders received all proceeds from this offering. In August 2013, the Company completed an underwritten public offering of 4,600,000 shares of common stock, which included 600,000 shares of common stock issued pursuant to an option to purchase additional shares granted to the underwriters. The stock was sold the public at $40.25 per share and the Company received net proceeds of approximately $177.5 million from the sale of these shares of common stock, net of offering expenses and underwriting discounts and commissions. In September 2013, we completed an offering of $450.0 million principal amount of our 7.625% Senior Notes due 2021. See Note 7 below. Basis of Presentation These financial statements have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Company’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2012, which contains a summary of the Company’s significant accounting policies and other disclosures. Transfers of a business between entities under common control are accounted for as if the transfer occurred at the beginning of the period, and prior years are retrospectively adjusted to furnish comparative information. As discussed above, the Windsor UT Contribution was accounted for as a transaction between entities under common control. Thus, the accompanying combined consolidated financial statements and related notes of the Company have been retrospectively adjusted to include the historical results of Windsor UT at historical carrying values and its operations prior to October 11, 2012, the effective date of the Windsor UT Contribution. The accompanying financial statements and related notes presented herein represent the combined results of operations and cash flows of our Predecessors through October 11, 2012, and the Company and its wholly-owned subsidiaries consolidated financial position, results of operations, cash flows and equity subsequent to October 11, 2012. All intercompany balances and transactions are eliminated in consolidation.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2013
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates Certain amounts included in or affecting the Company’s combined consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the combined consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the combined consolidated financial statements. Actual results could differ from those estimates. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities, stock-based compensation, fair value estimates of commodity derivatives and estimates of income taxes. Reclassifications The Company has reclassified certain prior year amounts to conform with the current year’s presentation. The Company has reclassified ad valorem taxes from lease operating expenses to production and ad valorem taxes. Unaudited Pro Forma Income Taxes Diamondback was formed as a holding company on December 30, 2011, and did not conduct any material business operations prior to the Merger. Diamondback is a C-Corporation under the Internal Revenue Code and is subject to income taxes. The Company computed a pro forma income tax provision as if the Company and our Predecessors were subject to income taxes since December 31, 2011. The pro forma tax provision has been calculated at a rate based upon a federal corporate level tax rate and a state tax rate, net of federal benefit, incorporating permanent differences. Unaudited Pro Forma Earnings per Share The Company’s pro forma basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period, as if the common shares issued upon the Merger were outstanding for the entire year. Diluted earnings per share reflects the potential dilution, using the treasury stock method, which assumes that options were exercised and restricted stock awards and units were fully vested. During periods in which the Company realizes a net loss, options and restricted stock awards would not be dilutive to net loss per share and conversion into common stock is assumed not to occur. Debt Issuance Costs Costs incurred of $10.3 million upon the issuance of the 7.625% Senior Notes due 2021 were capitalized and are being amortized over the term of the Senior Notes using the effective interest method. The Company includes unamortized costs in other assets in its consolidated balance sheets.

Acquisitions

9 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

2013 Activity

In September 2013, the Company completed two separate acquisitions of additional leasehold interests in the Permian Basin from unrelated third party sellers for an aggregate purchase price of $165.0 million, subject to certain adjustments. The first of these acquisitions closed on September 4, 2013 when the Company acquired certain assets located in northwestern Martin County, Texas, consisting of a 100% working interest (80% net revenue interest) in 4,506 gross and net acres, with 18 gross and net producing vertical wells and one well waiting on completion, an estimated 1,199 MBOE of proved developed reserves (including 88 MBOE attributable to one PDNP well) as of September 1, 2013 and 457 gross (365 net) BOE per day of production during July 2013. The second of these acquisitions closed on September 26, 2013, when the Company acquired certain assets located primarily in southwestern Dawson County, Texas, consisting of a 70% working interest (54% net revenue interest) in 9,390 gross (6,638 net) acres, with 32 gross (23 net) producing vertical wells, an estimated 907 MBOE of proved developed reserves (including 45 MBOE attributable to one PDNP well) as of September 1, 2013 and 777 gross (417 net) BOE per day of production during June 2013. These acquisitions were funded with a portion of the net proceeds from the August 2013 equity offering discussed in Note 1 above.

On September 19, 2013, the Company completed the acquisition of the mineral interests underlying approximately 15,000 gross (12,500 net) acres in Midland County, Texas in the Permian Basin. The mineral interests entitle the Company to receive an average 19.5% royalty interest on all production from this acreage with no additional future capital or operating expense required. The $440.0 million purchase price was funded with the net proceeds of the Company’s offering of Senior Notes discussed in Note 7 below.

2012 Activity

On October 11, 2012, the Company completed the acquisition of Gulfport’s oil and natural gas interests in the Permian Basin. The following unaudited summary pro forma combined consolidated statement of operations data of Diamondback for the three months and nine months ended September 30, 2012 has been prepared to give effect to the acquisition as if it had occurred on January 1, 2011. The pro forma data are not necessarily indicative of financial results that would have been attained had the acquisition occurred on January 1, 2011. The pro forma data also necessarily exclude various operation expenses related to the Gulfport properties and the financial statements should not be viewed as indicative of operations in future periods.



	Three Months Ended			Nine Months Ended
	September 30, 2012			September 30, 2012
	(Pro Forma)			(Pro Forma)
Pro forma total revenues	$	23,839,000		$	70,411,000
Pro forma income from operations	5,564,000			21,255,000
Pro forma net income	1,930,000		⁽¹⁾	21,678,000		⁽¹⁾

(1) This amount does not include a pro forma income tax provision relating to becoming subject to income taxes as a result of the Merger.

Property and Equipment

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

Property and equipment includes the following:



	September 30,			December 31,
	2013			2012
Oil and natural gas properties:
Subject to depletion	$	1,116,042,000		$	576,497,000
Not subject to depletion-acquisition costs
Incurred in 2013	315,331,000			—
Incurred in 2012	106,269,000			117,395,000
Incurred in 2011	1,598,000			1,670,000
Incurred in 2010	1,358,000			1,647,000
Incurred in 2009	—			533,000
Total not subject to depletion	424,556,000			121,245,000

Gross oil and natural gas properties	1,540,598,000			697,742,000
Less accumulated depreciation, depletion, amortization and impairment	(187,427,000		)	(145,102,000		)
Oil and natural gas properties, net	1,353,171,000			552,640,000

Other property and equipment	9,168,000			2,337,000
Less accumulated depreciation	(1,218,000		)	(735,000		)
Other property and equipment, net	7,950,000			1,602,000

Property and equipment, net of accumulated depreciation, depletion, amortization and impairment	$	1,361,121,000		$	554,242,000

The average depletion rate per barrel equivalent unit of production was $25.24 and $24.76 for the three months and nine months ended September 30, 2013, respectively, and $24.43 and $23.96 for the three months and nine months ended September 30, 2012, respectively. Internal costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All internal costs not directly associated with exploration and development activities were charged to expense as they were incurred. Capitalized internal costs were approximately $1,038,000 and $2,678,000 for the three months and nine months ended September 30, 2013, respectively, and $1,068,000 and $2,843,000 for the three months and nine months ended September 30, 2012, respectively. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The inclusion of the Company’s unevaluated costs into the amortization base is expected to be completed within three to five years.

Asset Retirement Obligation

9 Months Ended

Sep. 30, 2013

Asset Retirement Obligation [Abstract]

Asset Retirement Obligation

ASSET RETIREMENT OBLIGATIONS

The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:



	Nine Months Ended
	September 30,
	2013			2012
Asset retirement obligation, beginning of period	$	2,145,000		$	1,104,000
Additional liability incurred	162,000			145,000
Liabilities acquired	471,000			—
Liabilities settled	(14,000		)	—
Accretion expense	134,000			63,000
Asset retirement obligation, end of period	2,898,000			1,312,000
Less current portion	20,000			19,000
Asset retirement obligations - long-term	$	2,878,000		$	1,293,000

The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. The Company estimates the future plugging and abandonment costs of wells, the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the oil and natural gas property balance.

Equity Method Investments	9 Months Ended
Equity Method Investments	Sep. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	EQUITY METHOD INVESTMENTS Bison Drilling and Field Services LLC On November 15, 2010, the Company formed a wholly owned subsidiary, Bison Drilling and Field Services LLC (“Bison”), formerly known as Windsor Drilling LLC. In addition, on March 2, 2010, the Company formed a wholly owned subsidiary, West Texas Field Services LLC, which, on January 1, 2011, contributed all of its assets and liabilities to Bison and West Texas Field Services LLC was subsequently dissolved on June 12, 2012. Bison owns and operates drilling rigs and various oil and natural gas well servicing equipment. Beginning on March 31, 2011, various related party investors contributed capital to Bison diluting the Company’s ownership interest. As of June 15, 2012, the Company distributed its remaining 22% interest in Bison to an entity which is controlled and managed by Wexford. As the transaction was between entities under common control, the Company recognized the distribution of $6,437,000 as an equity transaction. Bison continues to be a related party with the Company. Muskie Holdings LLC During 2011, the Company paid approximately $4,200,000 for land and various other capital items related to the land. On October 7, 2011, the Company contributed these assets to a newly formed entity, Muskie Holdings LLC (“Muskie”), a Delaware limited liability company now known as Muskie Proppant LLC, for a 48.6% equity interest. Through additional contributions to Muskie from a related party and various Wexford portfolio companies, the Company’s interest in Muskie decreased to 33% as of June 15, 2012. Muskie generated a loss during the period from January 1, 2012 through June 15, 2012 and the Company recorded its share of this loss. As of June 15, 2012, the Company distributed its remaining interest in Muskie to an entity which is controlled and managed by Wexford. As the transaction was between entities under common control, the Company recognized the distribution of $4,067,000 as an equity transaction. Muskie continues to be a related party with the Company.

Debt

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Debt

DEBT

Senior Notes

On September 18, 2013, the Company completed an offering of $450.0 million in aggregate principal amount of 7.625% senior unsecured notes due 2021 (the “Senior Notes”). The Senior Notes bear interest at the rate of 7.625% per annum, payable semi-annually, in arrears on April 1 and October 1 of each year, commencing on April 1, 2014 and will mature on October 1, 2021. The Senior Notes are fully and unconditionally guaranteed by the Company’s subsidiaries. The net proceeds from the Senior Notes were used to fund the acquisition of mineral interests underlying approximately 15,000 gross (12,500 net) acres in Midland County, Texas in the Permian Basin.

The Senior Notes were issued under, and are governed by, an indenture among the Company, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as the trustee (the “Indenture”). The Indenture contains certain covenants that, subject to certain exceptions and qualifications, among other things, limit the Company’s ability and the ability of the restricted subsidiaries to incur or guarantee additional indebtedness, make certain investments, declare or pay dividends or make other distributions on, or redeem or repurchase, capital stock, prepay subordinated indebtedness, sell assets including capital stock of subsidiaries, agree to payment restrictions affecting the Company’s restricted subsidiaries, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter into transactions with affiliates, incur liens, engage in business other than the oil and gas business and designate certain of the Company’s subsidiaries as unrestricted subsidiaries. If the Company experiences certain kinds of changes of control or if it sells certain of its assets, holders of the Senior Notes may have the right to require the Company to repurchase their Senior Notes.

The Company will have the option to redeem the Senior Notes, in whole or in part, at any time on or after October 1, 2016 at the redemption prices (expressed as percentages of principal amount) of 105.719% for the 12-month period beginning on October 1, 2016, 103.813% for the 12-month period beginning on October 1, 2017, 101.906% for the 12-month period beginning on October 1, 2018 and 100.000% beginning on October 1, 2019 and at any time thereafter with any accrued and unpaid interest to, but not including, the date of redemption. In addition, prior to October 1, 2016, the Company may redeem all or a part of the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, plus a “make-whole” premium at the redemption date. Furthermore, before October 1, 2016, the Company may, at any time or from time to time, redeem up to 35% of the aggregate principal amount of the Senior Notes with the net cash proceeds of certain equity offerings at a redemption price of 107.625% of the principal amount of the Senior Notes being redeemed plus any accrued and unpaid interest to the date of redemption, if at least 65% of the aggregate principal amount of the Senior Notes originally issued under the Indenture remains outstanding immediately after such redemption and the redemption occurs within 120 days of the closing date of such equity offering.

In connection with the issuance of the Senior Notes, the Company and the subsidiary guarantors entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the initial purchasers on September 18, 2013, pursuant to which the Company and the subsidiary guarantors have agreed to file a registration statement with respect to an offer to exchange the Senior Notes for a new issue of substantially identical debt securities registered under the Securities Act. Under the Registration Rights Agreement, the Company also agreed to use its commercially reasonable efforts to cause the exchange offer registration statement to become effective within 360 days after the issue date of the Senior Notes and to consummate the exchange offer 30 days after effectiveness. The Company may be required to file a shelf registration statement to cover resales of the Senior Notes under certain circumstances. If the Company fails to satisfy certain of its obligations under the Registration Rights Agreement, the Company agreed to pay additional interest to the holders of the Senior Notes as specified in the Registration Rights Agreement.

Credit Facility-Wells Fargo Bank

On October 15, 2010, the Company entered into a secured revolving credit agreement with BNP Paribas, or BNP, as the administrative agent, sole book runner and lead arranger. On May 10, 2012, the revolving credit agreement was amended to provide for the resignation of BNP, and the appointment of Wells Fargo Bank, National Association, as administrative agent for the lenders. The credit agreement was amended and restated as of July 24, 2012 and again as of November 1, 2013. The credit agreement, as so amended and restated, provides for a revolving credit facility in the maximum amount of $600 million, subject to scheduled semi-annual and other elective collateral borrowing base redeterminations based on the Company’s oil and natural gas reserves and other factors (the “borrowing base”). The borrowing base is scheduled to be re-determined semi-annually with effective dates of April 1st and October 1st. In addition, the Company may request up to three additional redeterminations of the borrowing base during any 12-month period. As of November 1, 2013, the borrowing base was set at $225.0 million.

The outstanding borrowings under the credit agreement bear interest at a rate elected by the Company that is based on the prime rate or LIBOR plus margins ranging from 0.50% for prime-based loans and 1.50% for LIBOR loans to 1.50% for prime-based loans and 2.50% for LIBOR loans, in each case depending on the amount of the loan outstanding in relation to the borrowing base. The Company is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the borrowing base, which fee is also dependent on the amount of the loan outstanding in relation to the borrowing base. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be paid (a) if the loan amount exceeds the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period) and (b) at the maturity date of November 1, 2018. The loan is secured by substantially all of the assets of the Company and its subsidiaries.

The credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below.



Financial Covenant			Required Ratio
Ratio of total debt to EBITDAX			Not greater than 4.0 to 1.0
Ratio of current assets to liabilities, as defined in the credit agreement			Not less than 1.0 to 1.0
EBITDAX will be annualized beginning with the quarter ended September 30, 2013 and ending with the quarter ending March 31, 2014.

The covenant prohibiting additional indebtedness allows for the issuance of unsecured debt of up to $750 million in the form of senior or senior subordinated notes and, in connection with any such issuance, the reduction of the borrowing base by 25% of the stated principal amount of each such issuance. A borrowing base reduction in connection with such issuance may require a portion of the outstanding principal of the loan to be repaid. As of November 1, 2013, the Company had $450 million of senior unsecured notes outstanding.

As of September 30, 2013, the Company was in compliance with all financial covenants under its revolving credit facility, as then in effect. The lenders may accelerate all of the indebtedness under the Company’s revolving credit facility upon the occurrence and during the continuance of any event of default. The credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods.

Note Payable

The Company entered into an installment payment contract with EMC Corporation for the purchase of computer equipment. The contract is payable in equal installments over a period of 36 months. As of September 30, 2013 and December 31, 2012, the Company had amounts outstanding under this note of $230,000 and $338,000, respectively.

Subordinated Note

Effective May 14, 2012, the Company issued a subordinated note to an affiliate of Wexford pursuant to which, as amended, the Wexford affiliate could, from time to time, advance up to an aggregate of $45.0 million. These advances were solely at the lender’s discretion and neither Wexford nor any of its affiliates had any commitment or obligation to provide further capital support to the Company. The note bore interest at a rate equal to LIBOR plus 0.28% or 8% per annum, whichever was lower. Interest was due quarterly in arrears beginning on July 1, 2012. Interest payments were payable in kind by adding such amounts to the principal balance of the note. The unpaid principal balance and all accrued interest on the note was due and payable in full on January 31, 2015 or the earlier completion of an initial public offering. Any indebtedness evidenced by this note was subordinate in the right of payment to any indebtedness outstanding under the Company’s revolving credit facility. Prior to the completion of the IPO, there was $30.1 million in aggregate principal and interest outstanding under this note. In connection with the IPO, the Company repaid all outstanding borrowings under the subordinated note and the subordinated note was canceled.

Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE & PRO FORMA EARNINGS PER SHARE

Earnings Per Share

The Company’s basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. A reconciliation of the components of basic and diluted earnings per common share is presented in the table below:



	Three Months Ended September 30, 2013
				Per
	Income		Shares	Share
Basic:
Net income attributable to common stock	$	14,596,000	44,385,107	$	0.33
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	312,502
Diluted:
Net income attributable to common stock	$	14,596,000	44,697,609	$	0.33



	Nine Months Ended September 30, 2013
				Per
	Income		Shares	Share
Basic:
Net income attributable to common stock	$	34,463,000	40,308,989	$	0.85
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	214,775
Diluted:
Net income attributable to common stock	$	34,463,000	40,523,764	$	0.85

Pro Forma Earnings Per Share

The Company’s pro forma basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period, as if the common shares issued upon the Merger were outstanding for the entire year. A reconciliation of the components of pro forma basic and diluted earnings per common share is presented in the table below:



	Three Months Ended September 30, 2012
				Per
	Income		Shares	Share
Basic:
Pro forma net income attributable to common stock	$	291,000	14,697,496	$	0.02
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	—
Diluted:
Pro forma net income attributable to common stock	$	291,000	14,697,496	$	0.02



	Nine Months Ended September 30, 2012
				Per
	Income		Shares	Share
Basic:
Pro forma net income attributable to common stock	$	10,008,000	14,697,496	$	0.68
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	—
Diluted:
Pro forma net income attributable to common stock	$	10,008,000	14,697,496	$	0.68

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Stock and Equity Based Compensation

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock and Equity Based Compensation

STOCK AND EQUITY BASED COMPENSATION

For the three months and nine months ended September 30, 2013, the Company incurred $749,000 and $2,105,000, respectively, of stock based compensation, of which the Company capitalized $259,000 and $679,000, respectively, pursuant to the full cost method of accounting for oil and natural gas properties. For the three months and nine months ended September 30, 2012, the Company incurred $291,000 and $873,000, respectively, of equity based compensation, of which the Company capitalized $115,000 and $338,000, respectively, pursuant to the full cost method of accounting for oil and natural gas properties.

The following table presents the Company’s stock option activity under the 2012 Plan for the nine months ended September 30, 2013.



			Weighted Average
			Exercise		Remaining	Intrinsic
	Options		Price		Term	Value
					(In years)
Outstanding at December 31, 2012	850,000		$	17.50
Granted	63,000		$	22.72
Exercised	(149,500	)	$	17.50
Expired/Forfeited	—		$	—
Outstanding at September 30, 2013	763,500		$	17.93	3.03	$	18,865,000

Vested and Expected to vest at September 30, 2013	763,500		$	17.93	3.03	$	18,865,000
Exercisable at September 30, 2013	263,000		$	17.50	2.71	$	6,612,000

As of September 30, 2013, the unrecognized compensation cost related to unvested stock options was $2,079,000. Such cost is expected to be recognized over a weighted-average period of 2.0 years.

The following table presents the Company’s restricted stock awards and units activity under the 2012 Plan for the nine months ended September 30, 2013.



			Weighted Average
	Restricted Stock		Grant-Date
	Awards & Units		Fair Value
Unvested at December 31, 2012	206,507		$	17.50
Granted	11,099		$	41.66
Vested	(58,923	)	$	18.23
Forfeited	(4,444	)	$	17.50
Unvested at September 30, 2013	154,239		$	18.96

As of September 30, 2013, the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $2,578,000. Such cost is expected to be recognized over a weighted-average period of 1.7 years.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2013
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Administrative Services An entity under common management provided technical, administrative and payroll services to the Company under a shared services agreement which began March 1, 2008. Through December 31, 2011, amounts charged to the Company included those costs directly attributable to the Company as well as indirect costs allocated to the Company. The reimbursement amount for indirect costs is determined by the affiliate’s management based on estimates of time devoted to the Company. The initial term of this shared service agreement was two years. Since the expiration of such two-year period on March 1, 2010, the agreement by its terms, continued on a month-to-month basis. For the three months and nine months ended September 30, 2013, the Company incurred total costs of $70,000 and $179,000, respectively. For the three months and nine months ended September 30, 2012, the Company incurred total costs of $235,000 and $4,357,000, respectively. Costs incurred unrelated to drilling activities are expensed and costs incurred in the acquisition, exploration and development of proved oil and natural gas properties have been capitalized. The expensed costs were partially offset in general and administrative expenses by overhead reimbursements of $620,000 and $1,772,000 for the three months and nine months ended September 30, 2012, respectively. As of September 30, 2013 and December 31, 2012, the Company owed the administrative services affiliate $1,000 and $13,000, respectively. These amounts are included in accounts payable-related party in the accompanying consolidated balance sheets. Effective January 1, 2012, the Company entered into an additional shared services agreement with this entity. Under this agreement, the Company provides this entity and, at its request, certain affiliates, with consulting, technical and administrative services. The initial term of the additional shared services agreement is two years. Upon expiration of the initial term the agreement will continue on a month-to-month basis until canceled by either party upon thirty days prior written notice. Costs that are attributable to and billed to other affiliates are reported as other income-related party. For the three months and nine months ended September 30, 2013, the affiliate reimbursed the Company $270,000 and $1,047,000, respectively, and for the three months and nine months ended September 30, 2012, the affiliate reimbursed the Company $643,000 and $1,654,000, respectively for services under the shared services agreement. As of September 30, 2013 and December 31, 2012, the affiliate owed the Company no amounts and $1,000, respectively. These amounts are included in accounts receivable-related party in the accompanying consolidated balance sheets. Operating Services The Company is the operator of substantially all of its properties. As operator of these properties, the Company is responsible for the daily operations, monthly operation billings and monthly revenue disbursements for the properties. As of September 30, 2013 and December 31, 2012, amounts due from an affiliate (a greater than 10% stockholder) related to joint interest billings and included in accounts receivable-related party in the accompanying consolidated balance sheets were $134,000 and $742,000, respectively. Drilling Services Bison has performed drilling and field services for the Company under master drilling and field service agreements. Under the Company’s most recent master drilling agreement with Bison, effective as of January 1, 2013, Bison committed to accept orders from the Company for the use of at least two of its rigs. At September 30, 2013, Bison was providing drilling services to the Company using one of its rigs. This master drilling agreement is terminable by either party on 30 days prior written notice, although neither party will be relieved of its respective obligations arising from a drilling contract being performed prior to the termination of the master drilling agreement. The Company owed Bison $270,000 as of September 30, 2013 and $120,000 as of December 31, 2012. Effective September 9, 2013, the Company entered into a master service agreement with Panther Drilling Systems LLC (“Panther Drilling”), an entity controlled by Wexford, Panther Drilling provides directional drilling and other services. This master service agreement is terminable by either party on 30 days prior written notice, although neither party will be relieved of its respective obligations arising from work performed prior to the termination of the master service agreement. In the third quarter 2013, the Company began using Panther Drilling’s directional drilling services. The amount incurred in the third quarter for services performed by Panther Drilling was not material. Coronado Midstream The Company is party to a gas purchase agreement, dated May 1, 2009, as amended, with Coronado Midstream LLC (“Coronado Midstream”), formerly known as MidMar Gas LLC, an entity affiliated with Wexford that owns a gas gathering system and processing plant in the Permian Basin. Under this agreement, Coronado Midstream is obligated to purchase from the Company, and the Company is obligated to sell to Coronado Midstream, all of the gas conforming to certain quality specifications produced from certain of the Company’s Permian Basin acreage. Following the expiration of the initial ten year term, the agreement will continue on a year-to-year basis until terminated by either party on 30 days’ written notice. Under the gas purchase agreement, Coronado Midstream is obligated to pay the Company 87% of the net revenue received by Coronado Midstream for all components of the Company’s dedicated gas, including the liquid hydrocarbons, and the sale of residue gas, in each case extracted, recovered or otherwise processed at Coronado Midstream’s gas processing plant, and 94.56% of the net revenue received by Coronado Midstream from the sale of such gas components and residue gas, extracted, recovered or otherwise processed at Chevron’s Headlee plant. The Company recognized revenues from Coronado Midstream of $1,877,000 and $4,694,000 for the three months and nine months ended September 30, 2013, respectively, and $1,404,000 and $2,801,000 for the three months and nine months ended September 30, 2012, respectively. As of September 30, 2013 and December 31, 2012, Coronado Midstream owed the Company $987,000 and $6,000, respectively, for the Company’s portion of the net proceeds from the sale of gas, gas products and residue gas. Sand Supply Muskie, an entity affiliated with Wexford, holds certain rights in a lease covering land in Wisconsin for mining oil and natural gas fracture grade sand. The Company began purchasing sand from Muskie in March 2013. The Company incurred costs of zero and $234,000 for the three months and nine months ended September 30, 2013. As of September 30, 2013, the Company did not owe Muskie any amounts. Midland Lease Effective May 15, 2011, the Company occupied corporate office space in Midland, Texas under a lease with a five-year term. The office space is owned by an entity controlled by an affiliate of Wexford. The Company paid $49,000 and $131,000 for the three months and nine months ended September 30, 2013, respectively, and $46,000 and $117,000, for the three months and nine months ended September 30, 2012, respectively, under this lease. In the second and third quarters of 2013, the Company amended this agreement to increase the size of the leased premises. The monthly rent under the lease increased from $13,000 to $15,000 beginning on August 1, 2013 and will increase to $25,000 beginning on October 1, 2013. The monthly rent will increase approximately 4% annually on June 1 of each year during the remainder of the lease term. Oklahoma City Lease Effective January 1, 2012, the Company occupied corporate office space in Oklahoma City, Oklahoma under a lease with a 67 month term. The office space is owned by an entity controlled by an affiliate of Wexford. The Company paid $67,000 and $178,000 for the three months and nine months ended September 30, 2013, respectively, and $60,000 and $267,000 for the three months and nine months ended September 30, 2012, respectively, under this lease. Effective April 1, 2013, we amended this lease to increase the size of the leased premises, at which time our monthly base rent increased to $19,000 for the remainder of the lease term. The Company is also responsible for paying a portion of specified costs, fees and expenses associated with the operation of the premises. Advisory Services Agreement & Professional Services from Wexford The Company entered into an advisory services agreement (the “Advisory Services Agreement”) with Wexford, dated as of October 11, 2012, under which Wexford provides the Company with general financial and strategic advisory services related to the business in return for an annual fee of $500,000, plus reasonable out-of-pocket expenses. The Advisory Services Agreement has a term of two years commencing on October 18, 2012, and will continue for additional one-year periods unless terminated in writing by either party at least ten days prior to the expiration of the then current term. It may be terminated at any time by either party upon 30 days prior written notice. In the event the Company terminates such agreement, it is obligated to pay all amounts due through the remaining term. In addition, the Company agreed to pay Wexford to-be-negotiated market-based fees approved by the Company’s independent directors for such services as may be provided by Wexford at the Company’s request in connection with future acquisitions and divestitures, financings or other transactions in which the Company may be involved. The services provided by Wexford under the Advisory Services Agreement do not extend to the Company’s day-to-day business or operations. The Company has agreed to indemnify Wexford and its affiliates from any and all losses arising out of or in connection with the Advisory Services Agreement except for losses resulting from Wexford’s or its affiliates’ gross negligence or willful misconduct. The Company incurred total costs of $125,000 and $375,000 for the three months and nine months ended September 30, 2013, respectively, under the Advisory Services Agreement. Wexford provides certain professional services to the Company, for which the Company incurred total costs of $25,000 and $119,000 for the three months and nine months ended September 30, 2012, respectively. As of September 30, 2013 and December 31, 2012, the Company owed Wexford no amounts and $113,000, respectively. These amounts are included in accounts payable-related party in the accompanying consolidated balance sheets. Secondary Offering Costs On June 24, 2013, Gulfport and certain entities controlled by Wexford completed an underwritten secondary public offering of 6,000,000 shares of the Company’s common stock and, on July 5, 2013, the underwriters purchased an additional 869,222 shares of the Company’s common stock from these selling stockholders pursuant to an option to purchase such additional shares granted to the underwriters. The shares were sold to the public at $34.75 per share and the selling stockholders received all proceeds from this offering. The Company incurred costs of approximately $185,000 related to the secondary public offering.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Derivatives

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

DERIVATIVES

All derivative financial instruments are recorded at fair value. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the realized and unrealized changes in fair value in the combined consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.”

The Company has used price swap contracts to reduce price volatility associated with certain of its oil sales. With respect to the Company’s fixed price swap contracts, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the swap price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the swap price. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing, Argus Louisiana light sweet pricing or Inter–Continental Exchange (“ICE”) pricing for Brent crude oil. The counterparties to the Company’s derivative contracts are BNP Paribas and Wells Fargo Bank, N.A., who the Company believes are acceptable credit risks.

As of September 30, 2013, the Company had open crude oil derivative positions with respect to future production as set forth in the tables below. When aggregating multiple contracts, the weighted average contract price is disclosed.



Crude Oil—NYMEX West Texas Intermediate Fixed Price Swap

Production Period	Volume (Bbls)	Fixed Swap Price
October–December 2013	92,000	$	80.55

Crude Oil—Argus Louisiana Light Sweet Fixed Price Swap

Production Period	Volume (Bbls)	Fixed Swap Price
October - December 2013	92,000	$	100.20
January - December 2014	515,000	100.76
January 2015	31,000	101.00

Crude Oil—ICE Brent Fixed Price Swap

Production Period	Volume (Bbls)	Fixed Swap Price
October–December 2013	92,000	$	109.70
January–April 2014	120,000	109.70

Balance sheet offsetting of derivative assets and liabilities

The fair value of swaps is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. These fair values are recorded by netting asset and liability positions that are with the same counterparty and are subject to contractual terms which provide for net settlement.

The following tables present the gross amounts of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties and the resulting net amounts presented in the Company’s consolidated balance sheets as of September 30, 2013 and December 31, 2012.



	September 30, 2013
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts of Assets Presented in the Consolidated Balance Sheet
Derivative assets	$	1,513,000	$	(763,000	)	$	750,000

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
Derivative liabilities	$	1,933,000	$	—		$	1,933,000


	December 31, 2012
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
Derivative liabilities	$	5,205,000	$	—		$	5,205,000

The net amounts are classified as current or noncurrent based on their anticipated settlement dates. The net fair value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:



	September 30,		December 31,
	2013		2012
Current Assets: Derivative instruments	$	223,000	$	—
Noncurrent Assets: Derivative instruments	527,000		—
Total Assets	$	750,000	$	—

Current Liabilities: Derivative instruments	$	1,933,000	$	4,817,000
Noncurrent Liabilities: Derivative instruments	—		388,000
Total Liabilities	$	1,933,000	$	5,205,000

None of the Company’s derivatives have been designated as hedges. As such, all changes in fair value are immediately recognized in earnings. The following table summarizes the gains and losses on derivative instruments included in the combined consolidated statements of operations:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Non-cash gain (loss) on open non-hedge derivative instruments	$	(1,695,000	)	$	(2,252,000	)	$	3,733,000		$	6,386,000
Loss on settlement of non-hedge derivative instruments	(3,215,000		)	(896,000		)	(5,614,000		)	(4,369,000		)
Gain (loss) on derivative instruments	$	(4,910,000	)	$	(3,148,000	)	$	(1,881,000	)	$	2,017,000

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities.

Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date.

Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value.

Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Certain assets and liabilities are reported at fair value on a recurring basis, including the Company’s derivative instruments. The fair values of the Company’s fixed price crude oil swaps are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 inputs.

The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012.



	Fair value measurements at September 30, 2013 using:
	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
Assets:
Fixed price swaps	$	—	$	750,000	$	—	$	750,000
Liabilities:
Fixed price swaps	—		1,933,000		—		1,933,000

	Fair value measurements at December 31, 2012 using:
	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
Liabilities:
Fixed price swaps	$	—	$	5,205,000	$	—	$	5,205,000

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table provides the fair value of financial instruments that are not recorded at fair value in the combined consolidated financial statements.



	September 30, 2013				December 31, 2012
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Debt:
7.625% Senior Notes due 2021	$	450,000,000	$	460,406,000	$	—	$	—
Note payable	230,000		219,000		338,000		305,000

The fair value of the Senior Notes was determined using the September 30, 2013 quoted market price, a Level 1 classification in the fair value hierarchy. The fair value of the note payable is determined using internal discounted cash flow calculations based on the interest rate and payment terms of the note payable. The fair value of the note payable is classified as Level 3 in the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Contingencies	9 Months Ended
Contingencies	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Contingencies	CONTINGENCIES In September 2010, Windsor Permian (now known as Diamondback O&G LLC) purchased certain property in Goodhue County, Minnesota, that was prospective for hydraulic fracturing grade sand. Prior to the purchase, the prior owners of the property had entered into a Mineral Development Agreement with the plaintiff and the Company purchased the property subject to that agreement. Windsor Permian subsequently contributed the property to Muskie. In an amended complaint filed in November 2012 by the plaintiff against the prior owners of the property, Windsor Permian and certain affiliates of Windsor Permian in the first judicial district court in Goodhue County, Minnesota, the plaintiff seeks damages from the Company and the other defendants alleging, among other things, interference with contractual relationship, interference with prospective advantage and unjust enrichment. In an order filed on May 24, 2013, the judge denied certain motions made by the defendants and set a trial date to determine liability, with a damage phase of the matter to commence on a later date if there is a determination of liability. Following a trial on the liability phase on June 21, 2013, the jury determined that the defendants intentionally interfered with plaintiff’s contract but that the interference did not cause the plaintiff to be unable to acquire mining permits prior to the enactment of the moratorium by Goodhue County. The damage phase is expected to be set for trial in 2014 following additional discovery and the filing of motions. The Company believes these claims are without merit and will continue to vigorously defend this action. While management has determined that the possibility of loss is remote, litigation is inherently uncertain and management cannot determine the amount of loss, if any, that may result. The Company could be subject to various possible loss contingencies which arise primarily from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. Such contingencies include differing interpretations as to the prices at which natural gas and crude oil sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Management believes it has complied with the various laws and regulations, administrative rulings and interpretations.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2013
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On November 1, 2013, the Company entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent for the lenders, and certain lenders party hereto. For a description of this amended and restated credit facility, see Note 7 — “Debt – Credit Facility – Wells Fargo Bank.”

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2013
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These financial statements have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Company’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2012, which contains a summary of the Company’s significant accounting policies and other disclosures. Transfers of a business between entities under common control are accounted for as if the transfer occurred at the beginning of the period, and prior years are retrospectively adjusted to furnish comparative information. As discussed above, the Windsor UT Contribution was accounted for as a transaction between entities under common control. Thus, the accompanying combined consolidated financial statements and related notes of the Company have been retrospectively adjusted to include the historical results of Windsor UT at historical carrying values and its operations prior to October 11, 2012, the effective date of the Windsor UT Contribution. The accompanying financial statements and related notes presented herein represent the combined results of operations and cash flows of our Predecessors through October 11, 2012, and the Company and its wholly-owned subsidiaries consolidated financial position, results of operations, cash flows and equity subsequent to October 11, 2012. All intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	Use of Estimates Certain amounts included in or affecting the Company’s combined consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the combined consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the combined consolidated financial statements. Actual results could differ from those estimates. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities, stock-based compensation, fair value estimates of commodity derivatives and estimates of income taxes.
Fair Value Measurements	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement.
Debt issue costs	Debt Issuance Costs Costs incurred of $10.3 million upon the issuance of the 7.625% Senior Notes due 2021 were capitalized and are being amortized over the term of the Senior Notes using the effective interest method. The Company includes unamortized costs in other assets in its consolidated balance sheets.

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References + Details

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Schedule of business acquisition pro forma

The following unaudited summary pro forma combined consolidated statement of operations data of Diamondback for the three months and nine months ended September 30, 2012 has been prepared to give effect to the acquisition as if it had occurred on January 1, 2011. The pro forma data are not necessarily indicative of financial results that would have been attained had the acquisition occurred on January 1, 2011. The pro forma data also necessarily exclude various operation expenses related to the Gulfport properties and the financial statements should not be viewed as indicative of operations in future periods.



	Three Months Ended			Nine Months Ended
	September 30, 2012			September 30, 2012
	(Pro Forma)			(Pro Forma)
Pro forma total revenues	$	23,839,000		$	70,411,000
Pro forma income from operations	5,564,000			21,255,000
Pro forma net income	1,930,000		⁽¹⁾	21,678,000		⁽¹⁾

(1) This amount does not include a pro forma income tax provision relating to becoming subject to income taxes as a result of the Merger.

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment includes the following:



	September 30,			December 31,
	2013			2012
Oil and natural gas properties:
Subject to depletion	$	1,116,042,000		$	576,497,000
Not subject to depletion-acquisition costs
Incurred in 2013	315,331,000			—
Incurred in 2012	106,269,000			117,395,000
Incurred in 2011	1,598,000			1,670,000
Incurred in 2010	1,358,000			1,647,000
Incurred in 2009	—			533,000
Total not subject to depletion	424,556,000			121,245,000

Gross oil and natural gas properties	1,540,598,000			697,742,000
Less accumulated depreciation, depletion, amortization and impairment	(187,427,000		)	(145,102,000		)
Oil and natural gas properties, net	1,353,171,000			552,640,000

Other property and equipment	9,168,000			2,337,000
Less accumulated depreciation	(1,218,000		)	(735,000		)
Other property and equipment, net	7,950,000			1,602,000

Property and equipment, net of accumulated depreciation, depletion, amortization and impairment	$	1,361,121,000		$	554,242,000

Asset Retirement Obligation (Tables)

9 Months Ended

Sep. 30, 2013

Asset Retirement Obligation [Abstract]

Asset Retirement Obligation

The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:



	Nine Months Ended
	September 30,
	2013			2012
Asset retirement obligation, beginning of period	$	2,145,000		$	1,104,000
Additional liability incurred	162,000			145,000
Liabilities acquired	471,000			—
Liabilities settled	(14,000		)	—
Accretion expense	134,000			63,000
Asset retirement obligation, end of period	2,898,000			1,312,000
Less current portion	20,000			19,000
Asset retirement obligations - long-term	$	2,878,000		$	1,293,000

Debt (Tables)

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Financial Covenants



Financial Covenant			Required Ratio
Ratio of total debt to EBITDAX			Not greater than 4.0 to 1.0
Ratio of current assets to liabilities, as defined in the credit agreement			Not less than 1.0 to 1.0
EBITDAX will be annualized beginning with the quarter ended September 30, 2013 and ending with the quarter ending March 31, 2014.

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Schedule of reconciliation of basic and diluted net income per share

A reconciliation of the components of pro forma basic and diluted earnings per common share is presented in the table below:



	Three Months Ended September 30, 2012
				Per
	Income		Shares	Share
Basic:
Pro forma net income attributable to common stock	$	291,000	14,697,496	$	0.02
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	—
Diluted:
Pro forma net income attributable to common stock	$	291,000	14,697,496	$	0.02



	Nine Months Ended September 30, 2012
				Per
	Income		Shares	Share
Basic:
Pro forma net income attributable to common stock	$	10,008,000	14,697,496	$	0.68
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	—
Diluted:
Pro forma net income attributable to common stock	$	10,008,000	14,697,496	$	0.68

A reconciliation of the components of basic and diluted earnings per common share is presented in the table below:



	Three Months Ended September 30, 2013
				Per
	Income		Shares	Share
Basic:
Net income attributable to common stock	$	14,596,000	44,385,107	$	0.33
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	312,502
Diluted:
Net income attributable to common stock	$	14,596,000	44,697,609	$	0.33



	Nine Months Ended September 30, 2013
				Per
	Income		Shares	Share
Basic:
Net income attributable to common stock	$	34,463,000	40,308,989	$	0.85
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$	—	214,775
Diluted:
Net income attributable to common stock	$	34,463,000	40,523,764	$	0.85

Stock and Equity Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock option activity

The following table presents the Company’s stock option activity under the 2012 Plan for the nine months ended September 30, 2013.



			Weighted Average
			Exercise		Remaining	Intrinsic
	Options		Price		Term	Value
					(In years)
Outstanding at December 31, 2012	850,000		$	17.50
Granted	63,000		$	22.72
Exercised	(149,500	)	$	17.50
Expired/Forfeited	—		$	—
Outstanding at September 30, 2013	763,500		$	17.93	3.03	$	18,865,000

Vested and Expected to vest at September 30, 2013	763,500		$	17.93	3.03	$	18,865,000
Exercisable at September 30, 2013	263,000		$	17.50	2.71	$	6,612,000

Summary of restricted stock awards and units

The following table presents the Company’s restricted stock awards and units activity under the 2012 Plan for the nine months ended September 30, 2013.



			Weighted Average
	Restricted Stock		Grant-Date
	Awards & Units		Fair Value
Unvested at December 31, 2012	206,507		$	17.50
Granted	11,099		$	41.66
Vested	(58,923	)	$	18.23
Forfeited	(4,444	)	$	17.50
Unvested at September 30, 2013	154,239		$	18.96

Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments



Crude Oil—NYMEX West Texas Intermediate Fixed Price Swap

Production Period	Volume (Bbls)	Fixed Swap Price
October–December 2013	92,000	$	80.55

Crude Oil—Argus Louisiana Light Sweet Fixed Price Swap

Production Period	Volume (Bbls)	Fixed Swap Price
October - December 2013	92,000	$	100.20
January - December 2014	515,000	100.76
January 2015	31,000	101.00

Crude Oil—ICE Brent Fixed Price Swap

Production Period	Volume (Bbls)	Fixed Swap Price
October–December 2013	92,000	$	109.70
January–April 2014	120,000	109.70

Schedule of netting offsets of derivative assets and liabilities



	September 30, 2013
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts of Assets Presented in the Consolidated Balance Sheet
Derivative assets	$	1,513,000	$	(763,000	)	$	750,000

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
Derivative liabilities	$	1,933,000	$	—		$	1,933,000


	December 31, 2012
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
Derivative liabilities	$	5,205,000	$	—		$	5,205,000

Schedule of derivative instruments included in the consolidated balance sheet

The net fair value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:



	September 30,		December 31,
	2013		2012
Current Assets: Derivative instruments	$	223,000	$	—
Noncurrent Assets: Derivative instruments	527,000		—
Total Assets	$	750,000	$	—

Current Liabilities: Derivative instruments	$	1,933,000	$	4,817,000
Noncurrent Liabilities: Derivative instruments	—		388,000
Total Liabilities	$	1,933,000	$	5,205,000

Summary of derivative contract gains and losses included in the consolidated statements of operations

The following table summarizes the gains and losses on derivative instruments included in the combined consolidated statements of operations:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Non-cash gain (loss) on open non-hedge derivative instruments	$	(1,695,000	)	$	(2,252,000	)	$	3,733,000		$	6,386,000
Loss on settlement of non-hedge derivative instruments	(3,215,000		)	(896,000		)	(5,614,000		)	(4,369,000		)
Gain (loss) on derivative instruments	$	(4,910,000	)	$	(3,148,000	)	$	(1,881,000	)	$	2,017,000

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair value measurement information for financial instruments measured on a recurring basis

The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012.



	Fair value measurements at September 30, 2013 using:
	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
Assets:
Fixed price swaps	$	—	$	750,000	$	—	$	750,000
Liabilities:
Fixed price swaps	—		1,933,000		—		1,933,000

	Fair value measurements at December 31, 2012 using:
	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
Liabilities:
Fixed price swaps	$	—	$	5,205,000	$	—	$	5,205,000

Fair value measurement information for financial instruments measured on a nonrecurring basis

The following table provides the fair value of financial instruments that are not recorded at fair value in the combined consolidated financial statements.



	September 30, 2013				December 31, 2012
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Debt:
7.625% Senior Notes due 2021	$	450,000,000	$	460,406,000	$	—	$	—
Note payable	230,000		219,000		338,000		305,000

Description of the Business and Basis of Presentation (Details) - USD ($)						1 Months Ended
	Jul. 05, 2013	Jul. 05, 2013	Jun. 24, 2013	May 22, 2013	Oct. 17, 2012	Aug. 31, 2013	Sep. 30, 2013	Sep. 18, 2013
Common Stock [Member]
Initial Public Offering [Line Items]
Shares issued upon public offering				5,175,000	14,375,000	4,600,000
Common stock issued pursuant to underwriters over allotment option				675,000	1,875,000	600,000
Stock price per share at public offering				$ 29.25	$ 17.50	$ 40.25
Net proceeds received from public offerring				$ 144,400,000	$ 234,100,000	$ 177,500,000
Shares sold in secondary public offering			6,000,000
Shares sold by existing stockholders	869,222
Stock price per share, selling stockholders		$ 34.75
Senior Unsecured Notes due 2021 [Member] \| Senior Notes [Member]
Initial Public Offering [Line Items]
Aggregate principal amount								$ 450,000,000
Stated interest rate							7.625%	7.625%

Summary of Significant Accounting Policies (Details) - Senior Unsecured Notes due 2021 [Member] - Senior Notes [Member] - USD ($) $ in Millions	Sep. 30, 2013	Sep. 18, 2013
Debt Instrument [Line Items]
Capitalized financing costs	$ 10.3
Stated interest rate	7.625%	7.625%

Acquisitions (Details) $ in Thousands				1 Months Ended			9 Months Ended
Acquisitions (Details) $ in Thousands	Sep. 26, 2013 a well	Sep. 19, 2013 USD ($) a	Sep. 04, 2013 a well	Sep. 30, 2013 USD ($) leasehold_interest	Jul. 31, 2013 Boe	Jun. 30, 2013 Boe	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 18, 2013 a	Sep. 02, 2013 MBoe well
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Payments to acquire leasehold interests \| $							$ 166,635	$ 0
Acres of oil and gas property, gross									15,000
Acres of oil and gas property, net									12,500
Payments to acquire mineral interests \| $							$ 440,000	$ 0
Permian Basin [Member]
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Number of leasehold interest acquisitions \| leasehold_interest				2
Payments to acquire leasehold interests \| $				$ 165,000
Martin County, Texas [Member]
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Percent of working interest			100.00%
Percent of net revenue interest			80.00%
Acres of oil and gas property, gross			4,506
Acres of oil and gas property, net			4,506
Vertical wells, gross \| well			18
Vertical wells, net \| well			18
Proved developed reserves (energy) \| MBoe										1,199
Proved developed non-producing reserves (energy) \| MBoe										88
Vertical PDNP wells \| well										1
BOE per day of prodction, gross \| Boe					457
BOE per day of production, net \| Boe					365
Dawson County, Texas [Member]
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Percent of working interest	70.00%
Percent of net revenue interest	54.00%
Acres of oil and gas property, gross	9,390
Acres of oil and gas property, net	6,638
Vertical wells, gross \| well	32
Vertical wells, net \| well	23
Proved developed reserves (energy) \| MBoe										907
Proved developed non-producing reserves (energy) \| MBoe										45
Vertical PDNP wells \| well										1
BOE per day of prodction, gross \| Boe						777
BOE per day of production, net \| Boe						417
Midland County, Texas [Member]
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Acres of oil and gas property, gross		15,000
Acres of oil and gas property, net		12,500
Percent of royalty interest		20.00%
Payments to acquire mineral interests \| $		$ 440,000

Acquisitions - Summary Pro Forma Combined Statement of Operations (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2012

Business Combinations [Abstract]

Pro forma total revenues

$ 23,839

$ 70,411

Pro forma income from operations

5,564

21,255

Pro forma net income

^[1]

$ 1,930

$ 21,678

[1]	This amount does not include a pro forma income tax provision relating to becoming subject to income taxes as a result of the Merger.

Property and Equipment (Details) $ in Thousands	3 Months Ended		9 Months Ended
Property and Equipment (Details) $ in Thousands	Sep. 30, 2013 USD ($) $ / Boe	Sep. 30, 2012 USD ($) $ / Boe	Sep. 30, 2013 USD ($) $ / Boe	Sep. 30, 2012 USD ($) $ / Boe	Dec. 31, 2012 USD ($)
Property, Plant and Equipment
Subject to depletion	$ 1,116,042		$ 1,116,042		$ 576,497
Oil and Natural Gas Properties:
Not subject to depletion-acquisition costs	424,556		424,556		121,245
Gross oil and natural gas properties	1,540,598		1,540,598		697,742
Less accumulated depreciation, depletion, amortization and impairment	(187,427)		(187,427)		(145,102)
Net oil and natural gas properties capitalized	1,353,171		1,353,171		552,640
Other property and equipment	9,168		9,168		2,337
Less accumulated depreciation	(188,645)		(188,645)		(145,837)
Other property and equipment, net	7,950		7,950		1,602
Property and equipment, net of accumulated depreciation, depletion, amortization and impairment	$ 1,361,121		$ 1,361,121		554,242
Average depletetion rate per barrel equivalent unit of production \| $ / Boe	25.24	24.43	24.76	23.96
Capitalized general and administrative costs	$ 1,038	$ 1,068	$ 2,678	$ 2,843
Other property and equipment
Oil and Natural Gas Properties:
Less accumulated depreciation	(1,218)		(1,218)		(735)
Incurred in 2013
Oil and Natural Gas Properties:
Not subject to depletion-acquisition costs	315,331		315,331		0
Incurred in 2012
Oil and Natural Gas Properties:
Not subject to depletion-acquisition costs	106,269		106,269		117,395
Incurred in 2011
Oil and Natural Gas Properties:
Not subject to depletion-acquisition costs	1,598		1,598		1,670
Incurred in 2010
Oil and Natural Gas Properties:
Not subject to depletion-acquisition costs	1,358		1,358		1,647
Incurred in 2009
Oil and Natural Gas Properties:
Not subject to depletion-acquisition costs	$ 0		$ 0		$ 533
Minimum
Oil and Natural Gas Properties:
Number of years until unevaluated propertes are included in full cost pool			3 years
Maximum
Oil and Natural Gas Properties:
Number of years until unevaluated propertes are included in full cost pool			5 years

Asset Retirement Obligation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Changes in ARO liability
Asset retirement obligation, beginning of period			$ 2,145	$ 1,104
Additional liability incurred			162	145
Liabilities acquired			471	0
Liabilities settled			(14)	0
Accretion expense	$ 46	$ 22	134	63
Asset retirement obligation, end of period	2,898	1,312	2,898	1,312
Less current portion	20	19	20	19
Asset retirement obligations - long-term	$ 2,878	$ 1,293	$ 2,878	$ 1,293	$ 2,125

Equity Method Investments (Details) - USD ($) $ in Thousands	Jun. 15, 2012	Oct. 07, 2011
Bison Drilling
Schedule of Equity Method Investments
Ownership interest	22.00%
Distribution of equity method investment between entities under common control	$ 6,437
Muskie Holdings
Schedule of Equity Method Investments
Ownership interest	33.00%	48.60%
Distribution of equity method investment between entities under common control	$ 4,067
Amount paid for land and the value of property contributed		$ 4,200

Debt - Senior Notes (Details)	9 Months Ended
Debt - Senior Notes (Details)	Sep. 30, 2013	Sep. 18, 2013 USD ($) a
Debt Instrument [Line Items]
Acres of oil and gas property, gross		15,000
Acres of oil and gas property, net		12,500
Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount \| $		$ 450,000,000
Stated interest rate	7.625%	7.625%
Number of days registration statement becomes effective after issue date of Senior Notes	360 days
Number of days to consummate the exchange after effectiveness	30 days
Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member] \| 12-month period beginning October 1, 2016
Debt Instrument [Line Items]
Redemption price, expressed as percentage of principal amount	105.719%
Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member] \| 12-month period beginning October 1, 2017
Debt Instrument [Line Items]
Redemption price, expressed as percentage of principal amount	103.813%
Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member] \| 12-month period beginning October 1, 2018
Debt Instrument [Line Items]
Redemption price, expressed as percentage of principal amount	101.906%
Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member] \| 12-month period beginning October 1, 2019 and thereafter
Debt Instrument [Line Items]
Redemption price, expressed as percentage of principal amount	100.00%
Make-whole premium option [Member] \| Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member] \| Period prior to October 1, 2016
Debt Instrument [Line Items]
Redemption price, expressed as percentage of principal amount	100.00%
Net cash proceeds of certain equity offerings [Member] \| Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member] \| Period prior to October 1, 2016
Debt Instrument [Line Items]
Redemption price, expressed as percentage of principal amount	107.625%
Maximum percent of aggregrate principal amount redeemable	35.00%
Minimum required prinicpal amount to remain outstanding subsequent to redemption	65.00%
Number of days within closing date redemption can occur	120 days

Debt - Line of Credit Facility (Details)		9 Months Ended
Debt - Line of Credit Facility (Details)	Nov. 02, 2013 USD ($)	Sep. 30, 2013 redetermindation
Line of Credit Facility [Line Items]
The Company may request additional redeterminations \| redetermindation		3
Period of Redeterminations		12 months
Subsequent Event [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 600,000,000
Current borrowing base	225,000,000
Maximum amount of unsecured debt	$ 750,000,000
Reduction of borrowing base	25.00%
Subsequent Event [Member] \| Minimum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused porttion of borrowing base	0.375%
Subsequent Event [Member] \| Maximum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused porttion of borrowing base	0.50%
Subsequent Event [Member] \| Line of Credit
Line of Credit Facility [Line Items]
Description of variable rate basis		prime rate or LIBOR
Subsequent Event [Member] \| Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt outstanding	$ 450,000,000
Prime rate [Member] \| Subsequent Event [Member] \| Line of Credit \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Prime rate [Member] \| Subsequent Event [Member] \| Line of Credit \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
LIBOR [Member] \| Subsequent Event [Member] \| Line of Credit \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
LIBOR [Member] \| Subsequent Event [Member] \| Line of Credit \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%

Debt - Financial Covenant Table (Details)	Sep. 30, 2013
Maximum
Line of Credit Facility [Line Items]
Ratio of total debt to EBITDAX	4.0
Minimum
Line of Credit Facility [Line Items]
Ratio of current assets to liabilities, as defined in the credit agreement	1.0

Debt - Note Payable (Details) - USD ($) $ in Thousands	9 Months Ended
Debt - Note Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Note payable outstanding	$ 230	$ 338
Note Payable
Debt Instrument [Line Items]
Installment payment contract period	36 months

Debt - Subordinated Note (Details) - Affiliated Entity - Subordinated Debt - USD ($) $ in Millions	May 14, 2012	Sep. 30, 2012
Debt Instrument [Line Items]
Maximum principal amount of debt	$ 45.0
Description of variable rate basis	LIBOR
Basis spread on variable rate	0.28%
Stated interest rate	8.00%
Aggregate principal amount outstanding		$ 30.1

Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic:
Net income attributable to common stock, basic	$ 14,596		$ 34,463
Net income attributable to common stock, basic (in shares)	44,385,107		40,308,989
Net income attributable to common stock, basic, (in dollars per share)	$ 0.33		$ 0.85
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$ 0	$ 0	$ 0	$ 0
Dilutive effect of potential common shares issuable (in shares)	312,502	0	214,775	0
Diluted:
Net income attributable to common stock, diluted	$ 14,596		$ 34,463
Net income attributable to common stock, diluted (in shares)	44,697,609		40,523,764
Net income attributable to common stock, diluted (in dollars per share)	$ 0.33		$ 0.85

Earnings Per Share - Pro Forma Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic:
Pro forma net income attributable to common stock, basic		$ 291		$ 10,008
Pro forma net income attributable to common stock (in shares)		14,697,496		14,697,496
Pro forma net income attributable to common stock (in dollars per share)		$ 0.02		$ 0.68
Effect of Dilutive Securities:
Dilutive effect of potential common shares issuable	$ 0	$ 0	$ 0	$ 0
Dilutive effect of potential common shares issuable (in shares)	312,502	0	214,775	0
Diluted:
Pro forma net income attributable to common stock, diluted		$ 291		$ 10,008
Pro forma net income attributable to common stock, diluted (in shares)		14,697,496		14,697,496
Pro forma net income attributable to common stock, diluted (in dollars per share)		$ 0.02		$ 0.68

Stock and Equity Based Compensation - Stock and Equity Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock and equity based compensation	$ 749	$ 291	$ 2,105	$ 873
Capitalized stock and equity based compensation	$ 259	$ 115	$ 679	$ 338

Stock and Equity Based Compensation - Summary of Company's Outstanding Stock Options (Details) - Stock Options $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2013 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Outstanding at beginning of period \| shares	850,000
Options granted \| shares	63,000
Option exercised \| shares	(149,500)
Options expired/forfeited \| shares	0
Options, Outstanding at end of period \| shares	763,500
Number of Options, Vested and Expected to Vest, Outstanding at period end \| shares	763,500
Options Exercisable at end of period \| shares	263,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding Options at beginning of period, weighted average exercise price \| $ / shares	$ 17.50
Options Granted, Weighted Average Exercise Price \| $ / shares	22.72
Options Exercised, Weighted Average Exercise Price \| $ / shares	17.50
Options Expired/Forfeited, Weighted Average Exercise Price \| $ / shares	0.00
Outstanding Options at end of period, weighted average exercise price \| $ / shares	17.93
Weighted average exercise price of Options, Vested and Expected to Vest, Outstanding at period end \| $ / shares	17.93
Options exercisable at end of period, Weighted Average Exercise Price \| $ / shares	$ 17.50
Options outstanding, weighted average remaining contractual term at end of period	3 years 10 days
Remaining Term of Options Outstanding, Vested and Expected to Vest at period end	3 years 10 days
Stock options are excericasble from the date of grant	2 years 8 months 15 days
Options outstanding at the end of period, Intrinsic Value \| $	$ 18,865
Intrinsic Value of Options Outstanding at end of period, Vested and Expected to Vest \| $	18,865
Options Exercisable at end of period, Intrinsic Value \| $	6,612
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized [Abstract]
Unrecognized compensation cost related to unvested stock options \| $	$ 2,079
Unrecognized compensation cost, period of recognition	2 years 5 days

Stock and Equity Based Compensation - Restricted Stock Awards and Units (Details) - 2012 Plan - Restricted Stock Units (RSUs) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2013 USD ($) $ / shares shares
Restricted Stock Awards & Units
Unvested at Beginning of period \| shares	206,507
Granted \| shares	11,099
Vested \| shares	(58,923)
Forfeited \| shares	(4,444)
Unvested at end of period \| shares	154,239
Weighted Average Grant-Date Fair Value
Unvested at beginning of period \| $ / shares	$ 17.50
Granted \| $ / shares	41.66
Vested \| $ / shares	18.23
Forfeited \| $ / shares	17.50
Unvested at end of period \| $ / shares	$ 18.96
Unrecognized compensation cost related to unvested restricted stock awards and units \| $	$ 2,578
Unrecognized compensation cost, period of recognition	1 year 8 months 1 day

Related Party Transactions - Administrative Services (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 02, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Related Party Transaction
Accounts payable-related party		$ 271		$ 271		$ 18,813
Subsidiary of Common Parent
Related Party Transaction
Initial term of the additional shared services agreement				2 years
Related party incurred costs		70	$ 235	$ 179	$ 4,357
Expense costs partially offset in general administraticve expenses by overhead reimbursements			620		1,772
Accounts payable-related party		1		1		13
Affiliated Entity
Related Party Transaction
Initial term of the additional shared services agreement	2 years
Agreement termination, written notice period	30 days
Reimbursement from affiliate		270	$ 643	1,047	$ 1,654
Amount owed by affiliate		$ 0		$ 0		$ 1

Related Party Transactions - Operating Services (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Affiliated Entity
Related Party Transaction
Amounts due from affiliates related to joint interest billings and included in accounts receivable-related party	$ 134	$ 742

Related Party Transactions - Drilling Services (Details) $ in Thousands		9 Months Ended
	Jan. 02, 2012	Sep. 30, 2013 USD ($) drilling_rig	Dec. 31, 2012 USD ($)
Affiliated Entity
Related Party Transaction
Number of drilling rigs committed to use during the period		2
Agreement termination, written notice period	30 days
Affiliated Entity, Bison
Related Party Transaction
Number of drilling rigs		1
Agreement termination, written notice period		30 days
Amount owed to related party \| $		$ 270	$ 120

Related Party Transactions - Coronado Midstream (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	May 01, 2009	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Related Party Transaction
Natural gas revenue from related party		$ 1,172	$ 1,035	$ 2,898	$ 2,171
Affiliated Entity, Coronado Midstream
Related Party Transaction
Initial term of the additional shared services agreement	10 years
Agreement termination, written notice period	30 days
Natural gas revenue from related party		1,877	$ 1,404	4,694	$ 2,801
Amount owed from related party from the sale of gas, gas products and residue gas		$ 987		$ 987		$ 6
Affiliated Entity, Coronado Midstream \| Coronado Midstream Plant
Related Party Transaction
Percent of natural gas revenue from related party		87.00%		87.00%
Affiliated Entity, Coronado Midstream \| Chevron Headlee Plant
Related Party Transaction
Percent of natural gas revenue from related party		94.56%		94.56%

Related Party Transactions - Sand Supply (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Muskie [Member]
Related Party Transaction
Related party incurred costs	$ 0	$ 234

Related Party Transactions - Midland Lease (Details) - Affiliated Entity, Midland Lease - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	May 15, 2011	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Related Party Transaction
Term of lease from related party	5 years
Office rent to affiliate		$ 49	$ 46	$ 131	$ 117
Monthly rent				$ 13
Annual monthly rent increase		4.00%		4.00%
August [Member]
Related Party Transaction
Monthly rent				$ 15
October [Member]
Related Party Transaction
Monthly rent				$ 25

Related Party Transactions - Oklahoma City Lease (Details) - Affiliated Entity, Oklahoma City Lease - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 02, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Related Party Transaction
Term of lease from related party	67 months
Office rent to affiliate		$ 67	$ 60	$ 178	$ 267
Monthly base rent		$ 19		$ 19

Related Party Transactions - Advisory Services Agreement & Professional Services from Wexford (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Oct. 11, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Related Party Transaction
Advisory Services Agreement, Annual Fee	$ 500
Term of advisory services agreement	2 years
Affiliated Entity, Wexford
Related Party Transaction
Agreement termination, written notice period	30 days
Controlling Entity
Related Party Transaction
Related party incurred costs		$ 125	$ 25	$ 375	$ 119
Amount owed to related party		$ 0		$ 0		$ 113

Related Party Transactions - Secondary Offering Costs (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 05, 2013	Jul. 05, 2013	Jun. 24, 2013
Wexford and Gulfport Affiliates [Member]
Related Party Transaction
Related party incurred costs		$ 185
Common Stock [Member]
Related Party Transaction
Shares sold in secondary public offering			6,000,000
Shares sold by existing stockholders	869,222
Stock price per share, selling stockholders		$ 34.75

Derivatives - Open Derivative Positions (Details) - Crude Oil [Member] - Swap [Member] bbl in Thousands	Sep. 30, 2013 bbl $ / bbl
NYMEX West Texas Intermediate [Member] \| October–December 2013
Derivative [Line Items]
Volume (Bbls) \| bbl	92
Fixed Swap Price \| $ / bbl	80.55
Argus Louisiana Light Sweet [Member] \| October–December 2013
Derivative [Line Items]
Volume (Bbls) \| bbl	92
Fixed Swap Price \| $ / bbl	100.20
Argus Louisiana Light Sweet [Member] \| January - December 2014
Derivative [Line Items]
Volume (Bbls) \| bbl	515
Fixed Swap Price \| $ / bbl	100.76
Argus Louisiana Light Sweet [Member] \| January 2015 [Member]
Derivative [Line Items]
Volume (Bbls) \| bbl	31
Fixed Swap Price \| $ / bbl	101.00
ICE Brent [Member] \| October–December 2013
Derivative [Line Items]
Volume (Bbls) \| bbl	92
Fixed Swap Price \| $ / bbl	109.70
ICE Brent [Member] \| January–April 2014
Derivative [Line Items]
Volume (Bbls) \| bbl	120
Fixed Swap Price \| $ / bbl	109.70

Derivatives - Offsetting Derivative Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Assets	$ 1,513
Gross Amounts Offset in the Consolidated Balance Sheet	(763)
Net Amounts of Assets Presented in the Consolidated Balance Sheet	750
Gross Amounts of Recognized Liabilities	1,933	$ 5,205
Gross Amounts Offset in the Consolidated Balance Sheet	0	0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet	$ 1,933	$ 5,205

Derivatives - Balance Sheet Location (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Current Assets: Derivative instruments	$ 223	$ 0
Noncurrent Assets: Derivative instruments	527	0
Total Assets	750	0
Current Liabilities: Derivative instruments	1,933	4,817
Noncurrent Liabilities: Derivative instruments	0	388
Total Liabilities	$ 1,933	$ 5,205

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References + Details

Derivatives - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Unrealized gain (loss) on open non-hedge derivative instruments	$ (1,695)	$ (2,252)	$ 3,733	$ 6,386
Loss on settlement of non-hedge derivative instruments	(3,215)	(896)	(5,614)	(4,369)
Gain (loss) on derivative instruments	$ (4,910)	$ (3,148)	$ (1,881)	$ 2,017

Fair Value Measurements - Recurring Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Assets:
Derivative Assets	$ 750	$ 0
Liabilities:
Derivative liabilities	1,933	5,205
Recurring [Member] \| Quoted Prices in Active Markets Level 1
Assets:
Derivative Assets	0
Liabilities:
Derivative liabilities	0	0
Recurring [Member] \| Significant Other Observable Inputs Level 2
Assets:
Derivative Assets	750
Liabilities:
Derivative liabilities	1,933	5,205
Recurring [Member] \| Significant Unobservable Inputs Level 3
Assets:
Derivative Assets	0
Liabilities:
Derivative liabilities	0	0
Recurring [Member] \| Total
Assets:
Derivative Assets	750
Liabilities:
Derivative liabilities	$ 1,933	$ 5,205

Fair Value Measurements - Nonrecurring Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Sep. 18, 2013	Dec. 31, 2012
Carrying Amount \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
7.625% Senior Notes due 2021	$ 450,000		$ 0
Note payable	230		338
Fair Value \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
7.625% Senior Notes due 2021	460,406		0
Note payable	$ 219		$ 305
Senior Notes [Member] \| Senior Unsecured Notes due 2021 [Member]
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Stated interest rate	7.625%	7.625%