View Filing Data

$ 125,554

$ 182,872

$ 243,672

$ 356,086

1,726

172

3,035

268

55,051

86,318

Production and ad valorem taxes

182,331

183,044

333,025

356,354

Costs and expenses:

Lease operating expenses

29,206

20,179

61,586

41,964

9,500

13,160

18,586

25,610

Midstream service expenses

1,597

1,526

3,171

2,371

Minimum volume commitments

3,579

588

5,235

1,104

54,417

85,617

Accretion of asset retirement obligations

23,208

^[1]

29,552

^[1]

45,063

^[2]

57,206

^[2]

Restructuring expenses

6,042

593

422

1,172

837

72,112

^[3]

53,056

^[3]

144,054

^[4]

102,663

^[4]

Impairment expense

489,599

490,477

Total costs and expenses

683,811

118,483

861,003

231,755

(501,480)

64,561

(527,978)

124,599

Non-operating income (expense):

Loss on derivatives, net

(63,899)

(63,125)

(744)

(94,237)

2,914

(41)

2,481

(25)

Interest and other income

(23,970)

^[5]

(30,657)

^[5]

(56,384)

^[6]

(59,643)

^[6]

173

194

296

277

Write-off of debt issuance costs

(31,537)

^[5]

(31,537)

^[6]

(124)

Loss on disposal of assets, net

(1,081)

(205)

(1,843)

(226)

Non-operating expense, net

(117,400)

(93,834)

(87,731)

(153,978)

Income (loss) before income tax

(618,880)

(29,273)

(615,709)

(29,379)

Income tax benefit:

Deferred

221,846

10,374

218,203

10,267

Total income tax benefit

221,846

10,374

218,203

10,267

Net loss

$ (397,034)

$ (18,899)

$ (397,506)

$ (19,112)

Net income (loss), basic (in dollars per share)

$ (1.88)

$ (0.13)

$ (2.13)

$ (0.14)

Net income (loss), diluted (in dollars per share)

$ (1.88)

$ (0.13)

$ (2.13)

$ (0.14)

Weighted-average common shares outstanding:

Weighted average shares-basic (in shares)

^[7]

211,078

141,298

186,886

141,183

Weighted average shares-diluted (in shares)

^[7]

211,078

141,298

186,886

141,183

[1]	General and administrative costs were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014. However, payroll, deferred compensation, vehicle costs and the capitalization of payroll and deferred compensation associated with land and geology are based on actual costs for each segment for the three months ended June 30, 2015 and 2014.
[2]	General and administrative costs were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014. However, payroll, deferred compensation, vehicle costs and the capitalization of payroll and deferred compensation associated with land and geology are based on actual costs for each segment for the six months ended June 30, 2015 and 2014.
[3]	Depletion, depreciation and amortization is based on actual costs for each segment with the exception of the allocation of other fixed assets, which is based on the number of employees in the respective segment as of June 30, 2015 and 2014.
[4]	Depletion, depreciation and amortization is based on actual costs for each segment with the exception of the allocation of other fixed assets, which is based on the number of employees in the respective segment as of June 30, 2015 and 2014.
[5]	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.
[6]	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.
[7]	For the three and six months ended June 30, 2015, weighted-average common shares outstanding used in the computation of basic and diluted net loss per share attributable to stockholders has been computed taking into account the March 2015 Equity Offering.

Consolidated statement of stockholders' equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Treasury Stock (at cost)	Retained earnings (accumulated deficit)
Increase (Decrease) in Stockholders' Equity
Balance, end of period (in shares)		143,686		0
Balance, beginning of period at Dec. 31, 2014	$ 1,563,201	$ 1,437	$ 1,309,171	$ 0	$ 252,593
Balance, beginning of period (in shares) at Dec. 31, 2014		143,686		0
Increase (Decrease) in Stockholders' Equity
Restricted stock awards		$ 19	(19)
Restricted stock awards (in shares)		1,873
Restricted stock forfeitures		$ (5)	5
Restricted stock forfeitures (in shares)		(443)
Vested restricted stock exchanged for tax withholding	(2,591)			$ (2,591)
Vested restricted stock exchanged for tax withholding (in shares)				205
Retirement of treasury stock		$ (2)	(2,589)	$ 2,591
Retirement of treasury stock (in shares)		(205)		(205)
Equity issuance, net of offering costs	754,163	$ 690	753,473
Equity issuance, net of offering costs (in shares)		69,000
Stock-based compensation	11,680		11,680
Net loss	(397,506)				(397,506)
Balance, end of period at Jun. 30, 2015	$ 1,928,947	$ 2,139	$ 2,071,721	$ 0	$ (144,913)
Increase (Decrease) in Stockholders' Equity
Balance, end of period (in shares)		143,686		0
Balance, end of period (in shares)		213,911		0

Consolidated statements of cash flows - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Cash flows from operating activities:

Net income (loss)

$ (397,506)

$ (19,112)

Adjustments to reconcile net loss to net cash provided by operating activities:

Deferred income tax benefit

(218,203)

(10,267)

^[1]

144,054

102,663

Impairment expense

490,477

Non-cash stock-based compensation, net of amounts capitalized

31,537

^[2]

11,056

10,725

Accretion of asset retirement obligations

1,172

837

Loss on derivatives, net

744

94,237

Cash settlements received (paid) for matured derivatives, net

109,737

(5,851)

Cash settlements received for early terminations of derivatives, net

76,660

Change in net present value of deferred premiums paid for derivatives

120

Cash premiums paid for derivatives

(2,670)

(3,779)

Amortization of debt issuance costs

2,501

2,512

Cash settlement of performance unit awards

(2,738)

Other

(641)

269

Decrease (increase) in accounts receivable

16,586

(18,402)

Increase in other assets

(9,097)

(7,749)

(Decrease) increase in accounts payable

(15,744)

2,385

(Decrease) increase in undistributed revenues and royalties

(20,699)

8,998

(Decrease) increase in other accrued liabilities

(28,341)

3,058

Increase in other noncurrent liabilities

318

1,644

Increase in fair value of performance unit awards

1,674

1,151

Net cash provided by operating activities

114,305

240,099

Capital expenditures:

Acquisition of oil and natural gas properties

(6,493)

Acquisition of mineral interests

(7,305)

Oil and natural gas properties

(374,508)

(412,211)

Midstream service assets

(34,137)

(25,909)

Other fixed assets

(6,541)

(8,436)

Investment in equity method investee

(14,495)

(19,471)

Proceeds from dispositions of capital assets, net of costs

597

Net cash used in investing activities

(429,646)

(479,228)

Cash flows from financing activities:

Borrowings on Senior Secured Credit Facility

300,000

Payments on Senior Secured Credit Facility

(475,000)

Redemption of January 2019 Notes

(576,200)

Proceeds from issuance of common stock, net of offering costs

754,163

Purchase of treasury stock

(2,591)

(3,556)

Proceeds from exercise of employee stock options

1,829

Payments for debt issuance costs

(6,759)

(7,791)

Net cash provided by financing activities

343,613

440,482

Net increase in cash and cash equivalents

28,272

201,353

Cash and cash equivalents at beginning of period

29,321

198,153

Cash and cash equivalents at end of period

57,593

399,506

March 2023 Notes

Cash flows from financing activities:

Issuance of Notes

350,000

January 2022 Notes

Cash flows from financing activities:

Issuance of Notes

$ 0

$ 450,000

[1]	Depletion, depreciation and amortization is based on actual costs for each segment with the exception of the allocation of other fixed assets, which is based on the number of employees in the respective segment as of June 30, 2015 and 2014.
[2]	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.

Organization	6 Months Ended
Organization	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Laredo Petroleum, Inc. ("Laredo"), together with its subsidiaries, Laredo Midstream Services, LLC ("LMS") and Garden City Minerals, LLC ("GCM"), is an independent energy company focused on the acquisition, exploration and development of oil and natural gas properties primarily in the Permian Basin in West Texas. LMS and GCM (together, the "Guarantors") guarantee all of Laredo's debt instruments. In these notes, the "Company," (i) when used in the present tense, prospectively or from October 24, 2014 refers to Laredo, LMS and GCM collectively, unless the context indicates otherwise or (ii) when used for historical periods from December 31, 2013 to October 23, 2014, refers to Laredo and LMS collectively, unless the context indicates otherwise. All amounts, dollars and percentages presented in these unaudited consolidated financial statements and the related notes are rounded and therefore approximate. The Company operates in two business segments, which are (i) exploration and production and (ii) midstream and marketing. The exploration and production segment is engaged in the acquisition, exploration and development of oil and natural gas properties primarily in the Permian Basin in West Texas. The midstream and marketing segment provides the exploration and production segment and certain third parties with (i) any products and services that need to be delivered by midstream infrastructure, including oil and natural gas gathering services as well as rig fuel, natural gas lift and water in the primary drilling corridors and (ii) takeaway optionality in the field and firm service commitments to maximize oil, NGL and natural gas revenues.

Basis of presentation and significant accounting policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Basis of presentation and significant accounting policies

a. Basis of presentation

The accompanying unaudited consolidated financial statements were derived from the historical accounting records of the Company and reflect the historical financial position, results of operations and cash flows for the periods described herein. The Company uses the equity method of accounting to record its net interests when the Company holds 20% to 50% of the voting rights and/or has the ability to exercise significant influence but does not control the entity. Under the equity method, the Company's proportionate share of the investee's net income (loss) is included in the unaudited consolidated statements of operations. See Note 14 for additional discussion of the Company's equity method investment. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All material intercompany transactions and account balances have been eliminated in the consolidation of accounts.

The accompanying consolidated financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet as of December 31, 2014 is derived from audited consolidated financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all necessary adjustments to present fairly the Company's financial position as of June 30, 2015, results of operations for the three and six months ended June 30, 2015 and 2014 and cash flows for the six months ended June 30, 2015 and 2014.

Certain disclosures have been condensed or omitted from these unaudited consolidated financial statements. Accordingly, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2014 Annual Report.

b. Use of estimates in the preparation of interim unaudited consolidated financial statements

The preparation of the accompanying unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates are reasonable, actual results could differ. The interim results reflected in the unaudited consolidated financial statements are not necessarily indicative of the results that may be expected for other interim periods or for the full year.

Significant estimates include, but are not limited to, (i) estimates of the Company's reserves of oil, NGL and natural gas, (ii) future cash flows from oil and natural gas properties, (iii) depletion, depreciation and amortization, (iv) asset retirement obligations, (v) stock-based compensation, (vi) deferred income taxes, (vii) fair value of assets acquired and liabilities assumed in an acquisition and (viii) fair values of commodity derivatives, commodity deferred premiums and performance unit awards. As fair value is a market-based measurement, it is determined based on the assumptions that market participants would use. These estimates and assumptions are based on management's best judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Such estimates and assumptions are adjusted when facts and circumstances dictate. Illiquid credit markets and volatile equity and energy markets have combined to increase the uncertainty inherent in such estimates and assumptions. Management believes its estimates and assumptions to be reasonable under the circumstances. As future events and their effects cannot be determined with precision, actual values and results could differ from these estimates. Any changes in estimates resulting from future changes in the economic environment will be reflected in the financial statements in future periods.

c. Reclassifications

Certain amounts in the accompanying unaudited consolidated financial statements have been reclassified to conform to the 2015 presentation. These reclassifications had no impact to previously reported total assets, total liabilities, net income or loss, stockholders' equity or cash flows.

d. Treasury stock

Laredo's employees may elect to have the Company withhold shares of stock to satisfy their tax withholding obligations that arise upon the lapse of restrictions on their stock awards. Such treasury stock is recorded at cost and retired upon acquisition.

e. Accounts receivable

The Company sells oil, NGL and natural gas to various customers and participates with other parties in the development and operation of oil and natural gas properties. The Company's accounts receivable are generally unsecured. Accounts receivable for joint interest billings are recorded as amounts billed to customers less an allowance for doubtful accounts.

Amounts are considered past due after 30 days. The Company determines joint interest operations accounts receivable allowances based on management's assessment of the creditworthiness of the joint interest owners. Additionally, as the operator of the majority of its wells, the Company has the ability to realize the receivables through netting of anticipated future production revenues. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses, current receivables aging and existing industry and economic data. The Company reviews its allowance for doubtful accounts quarterly. Past due amounts greater than 90 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is remote.

Accounts receivable consist of the following components for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Oil, NGL and natural gas sales	$	46,953	$	57,070
Joint operations, net⁽¹⁾	31,454		33,808
Purchased oil and other product sales	18,614		18,917
Matured derivatives	12,961		16,098
Other	361		1,036
Total	$	110,343	$	126,929

______________________________________________________________________________


(1)	Accounts receivable for joint operations are presented net of an allowance for doubtful accounts of $0.1 million and $0.8 million as of June 30, 2015 and December 31, 2014, respectively.

f. Derivatives

The Company uses derivatives to reduce exposure to fluctuations in the prices of oil and natural gas. By removing a significant portion of the price volatility associated with future production, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations due to fluctuations in commodity prices. These transactions are primarily in the form of collars, swaps, puts and basis swaps.

Derivatives are recorded at fair value and are presented net on the unaudited consolidated balance sheets as assets or liabilities. The Company nets the fair value of derivatives by counterparty where the right of offset exists. The Company determines the fair value of its derivatives by utilizing pricing models for substantially similar instruments. Inputs to the pricing models include publicly available prices and forward price curves generated from a compilation of data gathered from third parties (see Notes 8 and 9).

The Company's derivatives were not designated as hedges for accounting purposes for any of the periods presented. Accordingly, the changes in fair value are recognized in the unaudited consolidated statements of operations in the period of change. Gains and losses on derivatives are included in cash flows from operating activities (see Note 8).

g. Property and equipment

The following table sets forth the Company's property and equipment for the periods presented:



(in thousands)	June 30, 2015			December 31, 2014
Evaluated oil and natural gas properties	$	4,824,127		$	4,446,781
Less accumulated depletion and impairment	(2,211,310		)	(1,586,237		)
Evaluated oil and natural gas properties, net	2,612,817			2,860,544

Unevaluated properties not being amortized	290,929			342,731

Midstream service assets	148,977			117,052
Less accumulated depreciation	(12,115		)	(8,590		)
Midstream service assets, net	136,862			108,462

Depreciable other fixed assets	46,793			42,933
Less accumulated depreciation and amortization	(15,734		)	(13,820		)
Depreciable other fixed assets, net	31,059			29,113

Land	13,613			13,232

Total property and equipment, net	$	3,085,280		$	3,354,082

For the three months ended June 30, 2015 and 2014, depletion expense was $16.19 per barrel of oil equivalent ("BOE") sold and $19.55 per BOE sold, respectively. For the six months ended June 30, 2015 and 2014, depletion expense was $16.13 per BOE sold and $19.58 per BOE sold, respectively.

The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain related employee costs, incurred for the purpose of finding oil and natural gas are capitalized and amortized on a composite unit of production method based on proved oil, NGL and natural gas reserves. Such amounts include the cost of drilling and equipping productive wells, dry hole costs, lease acquisition costs, delay rentals and other costs related to such activities. Costs, including related employee costs, associated with production and general corporate activities are expensed in the period incurred. Sales of oil and natural gas properties, whether or not being amortized currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, NGL and natural gas.

The Company excludes the costs directly associated with acquisition and evaluation of unevaluated properties from the depletion calculation until it is determined whether or not proved reserves can be assigned to the properties. The Company capitalizes a portion of its interest costs on its unevaluated properties. Capitalized interest becomes a part of the cost of the unevaluated properties and is subject to depletion when proved reserves can be assigned to the associated properties. All items classified as unevaluated property are assessed on a quarterly basis for possible impairment or reduction in value. The assessment includes consideration of the following factors, among others: intent to drill, remaining lease term, geological and geophysical evaluations, drilling results and activity, the assignment of evaluated reserves and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion.

The full cost ceiling is based principally on the estimated future net cash flows from proved oil and natural gas properties discounted at 10%. Full cost companies are required to use the unweighted arithmetic average first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unless prices were defined by contractual arrangements ("SEC Prices"), to calculate the discounted future revenues. In the event the unamortized cost of evaluated oil and natural gas properties being amortized exceeds the full cost ceiling, as defined by the SEC, the excess is charged to expense in the period such excess occurs. Once incurred, a write-down of oil and natural gas properties is not reversible.

As of June 30, 2015, the full cost ceiling value of the Company's reserves was calculated based on SEC Prices as of June 30, 2015, which do not include derivative transactions, of (i) $68.17 per barrel for oil, (ii) $26.73 per barrel for NGL and (iii) $3.22 per MMBtu for natural gas, adjusted by area for energy content, transportation fees, and regional price differentials. Using these SEC Prices, the Company's net book value of evaluated oil and natural gas properties exceeded the full cost ceiling amount as of June 30, 2015. As a result, the Company recorded a non-cash full cost ceiling impairment of $488.0 million before consideration for deferred income tax benefit and $314.1 million after consideration for deferred income tax benefit. The adjustment is included in "Impairment expense" in the unaudited consolidated statements of operations and in "Other operating costs and expenses" for the Company's exploration and production segment presented in Note 16.

h. Debt issuance costs

Debt issuance fees, which are stated at cost, net of amortization, are amortized over the life of the respective debt agreements utilizing the effective interest and straight-line methods. The Company capitalized $6.8 million of debt issuance costs during the six months ended June 30, 2015 mainly as a result of the issuance of the March 2023 Notes (as defined below). The Company capitalized $7.8 million of debt issuance costs during the six months ended June 30, 2014 mainly as a result of the issuance of the January 2022 Notes (as defined below). The Company had total debt issuance costs of $26.2 million and $28.5 million, net of accumulated amortization of $14.8 million and $19.4 million, as of June 30, 2015 and December 31, 2014, respectively.

The Company wrote-off approximately $6.6 million of debt issuance costs during the six months ended June 30, 2015 as a result of the redemption of the January 2019 Notes (as defined below), which are included in the unaudited consolidated statements of operations in the "Loss on early redemption of debt" line item. During the six months ended June 30, 2014 the Company wrote-off approximately $0.1 million of debt issuance costs as a result of changes in the borrowing base of the Senior Secured Credit Facility (as defined below) due to the issuance of the January 2022 Notes, which are included in the unaudited consolidated statements of operations in the "Write-off of debt issuance costs" line item. See Notes 5.a, 5.b, 5.d and 5.e for definition of and information regarding the March 2023 Notes, January 2022 Notes, January 2019 Notes and the Senior Secured Credit Facility, respectively.

Future amortization expense of debt issuance costs as of June 30, 2015 is as follows:



(in thousands)
Remaining 2015	$	2,227
2016	4,503
2017	4,575
2018	4,349
2019	2,915
Thereafter	7,589
Total	$	26,158

i. Other current assets and liabilities

Other current assets consist of the following components for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Prepaid expenses	$	16,451	$	6,451
Materials and supplies inventory and other	6,535		7,951
Total other current assets	$	22,986	$	14,402

Other current liabilities consist of the following components for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Accrued interest payable	$	24,088	$	37,689
Lease operating expense payable	17,170		11,963
Capital contribution payable to equity method investee	27,917		—
Other accrued liabilities	32,775		51,380
Total other current liabilities	$	101,950	$	101,032

j. Asset retirement obligations

Asset retirement obligations associated with the retirement of tangible long-lived assets are recognized as a liability in the period in which they are incurred and become determinable. The associated asset retirement costs are part of the carrying amount of the long-lived asset. Subsequently, the asset retirement cost included in the carrying amount of the related long-lived asset is charged to expense through depletion, or for midstream asset retirement cost through depreciation, of the associated asset. Changes in the liability due to the passage of time are recognized as an increase in the carrying amount of the liability and as corresponding accretion expense.

The fair value of additions to the asset retirement obligation liability is measured using valuation techniques consistent with the income approach, which converts future cash flows into a single discounted amount. Significant inputs to the valuation include: (i) estimated plug and abandonment cost per well based on Company experience, (ii) estimated remaining life per well based on the reserve life per well, (iii) estimated removal and/or remediation costs for midstream assets, (iv) estimated remaining life of midstream assets, (v) future inflation factors and (vi) the Company's average credit adjusted risk-free rate. Inherent in the fair value calculation of asset retirement obligations are numerous assumptions and judgments including, in addition to those noted above, the ultimate settlement of these amounts, the ultimate timing of such settlement and changes in legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing asset retirement obligation liability, a corresponding adjustment will be made to the asset balance.

The Company is obligated by contractual and regulatory requirements to remove certain pipeline and gas gathering assets and perform other remediation of the sites where such pipeline and gas gathering assets are located upon the retirement of those assets. However, the fair value of the asset retirement obligation cannot currently be reasonably estimated because the settlement dates are indeterminate. The Company will record an asset retirement obligation for pipeline and gas gathering assets in the periods in which settlement dates become reasonably determinable.

The following reconciles the Company's asset retirement obligation liability for the periods presented:



(in thousands)	Six months ended June 30, 2015			Year ended December 31, 2014
Liability at beginning of period	$	32,198		$	21,743
Liabilities added due to acquisitions, drilling, midstream service asset construction and other	1,402			6,370
Accretion expense	1,172			1,787
Liabilities settled upon plugging and abandonment	(178		)	(450		)
Revision of estimates	—			2,748
Liability at end of period	$	34,594		$	32,198

k. Fair value measurements

The carrying amounts reported in the unaudited consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable, undistributed revenue and royalties and other accrued assets and liabilities approximate their fair values. See Note 5.f for fair value disclosures related to the Company's debt obligations. The Company carries its derivatives at fair value. See Notes 8 and 9 for details regarding the fair value of the Company's derivatives.

l. Compensation awards

Stock-based compensation expense, net of amounts capitalized, is included in "General and administrative" in the unaudited consolidated statements of operations over the awards' vesting periods and is based on the awards' grant date fair value. The Company utilizes the closing stock price on the grant date, less an expected forfeiture rate, to determine the fair value of service vesting restricted stock awards and a Black-Scholes pricing model to determine the fair values of service vesting restricted stock option awards. The Company utilizes a Monte Carlo simulation prepared by an independent third party to determine the fair values of the performance share awards and performance unit awards. The Company capitalizes a portion of stock-based compensation for employees who are directly involved in the acquisition, exploration and development of its oil and gas properties into the full cost pool. Capitalized stock-based compensation is included as an addition to "Oil and natural gas properties" in the unaudited consolidated balance sheets. See Note 6 for further discussion regarding the restricted stock awards, restricted stock option awards, performance share awards and performance unit awards.

m. Environmental

The Company is subject to extensive federal, state and local environmental laws and regulations. These laws, among other things, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed in the period incurred. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment or remediation is probable and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments is fixed and readily determinable. Management believes no materially significant liabilities of this nature existed as of June 30, 2015 or December 31, 2014.

n. Long-lived assets, materials and supplies and line-fill

Impairment losses are recorded on property and equipment used in operations and other long-lived assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. Impairment is measured based on the excess of the carrying amount over the fair value of the asset.

Materials and supplies are used in developing oil and natural gas properties and are included in "Other current assets" and "Other assets, net" on the unaudited consolidated balance sheets. They are carried at the lower of cost or market ("LCM"). The market price for materials and supplies is determined utilizing the Company's recent prices paid to acquire materials. During the three and six months ended June 30, 2015, the Company reduced materials and supplies by $1.5 million and $2.3 million, respectively, in order to reflect the balance at LCM. The adjustment is included in "Impairment expense" in the unaudited consolidated statements of operations and in "Other operating costs and expenses" for the Company's exploration and production segment presented in Note 16. The Company determined an LCM adjustment was not necessary for materials and supplies during the three and six months ended June 30, 2014.

Minimum volumes of product in a pipeline system that enables the system to operate is known as line-fill, and is generally not available to be withdrawn from the pipeline system until the expiration of the transportation contract. Beginning in the fourth quarter of 2014, the Company owns oil line-fill in third-party pipelines, which is accounted for at LCM with cost determined using the weighted-average cost method, and is included in "Other assets, net" on the unaudited consolidated balance sheets. The LCM adjustment is determined utilizing a quoted market price adjusted for regional price differentials (Level 2). For the six months ended June 30, 2015, the Company recorded an LCM adjustment of $0.1 million related to its line-fill, which is included in "Impairment expense" in the unaudited consolidated statements of operations and as "Other operating costs and expenses" for the Company's midstream and marketing segment presented in Note 16. The Company determined an LCM adjustment was not necessary for line-fill for the three months ended June 30, 2015.

o. Non-cash investing and supplemental cash flow information

The following presents the non-cash investing and supplemental cash flow information for the periods presented:



	Six months ended June 30,
(in thousands)	2015			2014
Non-cash investing information:
Change in accrued capital expenditures	$	(53,209	)	$	13,346
Change in accrued capital contribution to equity method investee	$	27,917		$	15,512
Capitalized asset retirement cost	$	1,402		$	1,591
Supplemental cash flow information:
Capitalized interest	$	178		$	—

Equity Offering	6 Months Ended
Equity Offering	Jun. 30, 2015
Equity [Abstract]
Equity Offering	Equity offering On March 5, 2015, the Company completed the sale of 69,000,000 shares of Laredo's common stock at a price to the public of $11.05 per share (the "March 2015 Equity Offering"). The Company received net proceeds of $754.2 million, after underwriting discounts, commissions and offering expenses. Entities affiliated with Warburg Pincus LLC ("Warburg Pincus") purchased 29,800,000 shares in the March 2015 Equity Offering, following which Warburg Pincus owned 41.0% of Laredo's common stock. There were no comparative offerings of the Company's stock during the three or six months ended June 30, 2014.

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Acquisitions (Notes)	6 Months Ended
Acquisitions (Notes)	Jun. 30, 2015
Acquisition and Divestitures [Abstract]
Acquisitions	Acquisitions a. 2014 acquisition of leasehold interests On August 28, 2014, the Company completed a material acquisition of leasehold interests totaling 8,156 net acres in the Midland Basin, primarily within the Company's core development area, for $192.5 million. The acquisition was accounted for as an acquisition of assets. b. 2014 acquisition of mineral interests On February 25, 2014, the Company completed the acquisition of the mineral interests underlying 278 net acres in Glasscock County, Texas in the Permian Basin for $7.3 million. These mineral interests entitle the Company to receive royalty payments on all production from this acreage with no additional future capital or operating expenses required. As such, the purchase was accounted for as an acquisition of assets. c. 2014 acquisitions of evaluated and unevaluated oil and natural gas properties The Company accounts for acquisitions of evaluated and unevaluated oil and natural gas properties under the acquisition method of accounting. Accordingly, the Company conducts assessments of net assets acquired and recognizes amounts for identifiable assets acquired and liabilities assumed at the estimated acquisition date fair values, while transaction and integration costs associated with the acquisitions are expensed as incurred. The Company makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. The most significant assumptions relate to the estimated fair values of evaluated and unevaluated oil and natural gas properties. The fair values of these properties are measured using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation include estimates of: (i) reserves, (ii) future operating and development costs, (iii) future commodity prices and (iv) a market-based weighted-average cost of capital rate. The market-based weighted-average cost of capital rate is subject to additional project-specific risk factors. To compensate for the inherent risk of estimating the value of the unevaluated properties, the discounted future net revenues of probable and possible reserves are reduced by additional risk-weighting factors. On June 11, 2014, the Company completed the acquisition of evaluated and unevaluated oil and natural gas properties, totaling 460 net acres, located in Reagan County, Texas for $4.7 million, net of closing adjustments. On June 23, 2014, the Company completed the acquisition of evaluated and unevaluated oil and natural gas properties, totaling 24 net acres, located in Glasscock County, Texas for $1.8 million. The results of operations prior to June 2014 do not include results from these acquisitions.

Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

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

a. March 2023 Notes

On March 18, 2015, the Company completed an offering of $350.0 million in aggregate principal amount of 6 1/4% senior unsecured notes due 2023 (the "March 2023 Notes"), and entered into an Indenture (the "Base Indenture"), as supplemented by the Supplemental Indenture (the "Supplemental Indenture" and, together with the Base Indenture, the "Indenture"), among Laredo, LMS and GCM, as guarantors, and Wells Fargo Bank, National Association, as trustee. The March 2023 Notes will mature on March 15, 2023 with interest accruing at a rate of 6 1/4% per annum and payable semi-annually in cash in arrears on March 15 and September 15 of each year, commencing September 15, 2015. The March 2023 Notes are fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain automatic customary releases, including the sale, disposition, or transfer of all of the capital stock or of all or substantially all of the assets of a subsidiary guarantor to one or more persons that are not the Company or a restricted subsidiary, exercise of legal defeasance or covenant defeasance options or satisfaction and discharge of the Indenture, designation of a subsidiary guarantor as a non-guarantor restricted subsidiary or as an unrestricted subsidiary in accordance with the Indenture, release from guarantee under the Senior Secured Credit Facility (as defined below), or liquidation or dissolution (collectively, the "Releases").

The March 2023 Notes were offered and sold pursuant to a prospectus supplement dated March 4, 2015 and the base prospectus dated March 22, 2013, relating to the Company's effective shelf registration statement on Form S-3 (File No. 333-187479). The Company received net proceeds of $343.6 million from the offering, after deducting the underwriters' discount and the estimated outstanding offering expenses. In April 2015, the Company used the proceeds of the offering to fund a portion of the Company's redemption of the January 2019 Notes (defined below). See Note 5.d for additional discussion of this early redemption.

The Company may redeem, at its option, all or part of the March 2023 Notes at any time on or after March 15, 2018, at the applicable redemption price plus accrued and unpaid interest to, but not including, the date of redemption. Further, before March 15, 2018, the Company may on one or more occasions redeem up to 35% of the aggregate principal amount of the March 2023 Notes in an amount not exceeding the net proceeds from one or more private or public equity offerings at a redemption price of 106.25% of the principal amount of the March 2023 Notes, plus accrued and unpaid interest to the date of redemption, if at least 65% of the aggregate principal amount of the March 2023 Notes remains outstanding immediately after such redemption and the redemption occurs within 180 days of the closing date of each such equity offering. If a change of control occurs prior to March 15, 2016, the Company may redeem all, but not less than all, of the March 2023 Notes at a redemption price equal to 110% of the principal amount of the March 2023 Notes plus any accrued and unpaid interest to, but not including, the date of redemption.

b. January 2022 Notes

On January 23, 2014, the Company completed an offering of $450.0 million in aggregate principal amount of 5 5/8% senior unsecured notes due 2022 (the "January 2022 Notes"). The January 2022 Notes will mature on January 15, 2022 and bear an interest rate of 5 5/8% per annum, payable semi-annually, in cash in arrears on January 15 and July 15 of each year, commencing July 15, 2014. The January 2022 Notes are fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain Releases.

c. May 2022 Notes

On April 27, 2012, the Company completed an offering of $500.0 million in aggregate principal amount of 7 3/8% senior unsecured notes due 2022 (the "May 2022 Notes"). The May 2022 Notes will mature on May 1, 2022 and bear an interest rate of 7 3/8% per annum, payable semi-annually, in cash in arrears on May 1 and November 1 of each year, commencing November 1, 2012. The May 2022 Notes are fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain Releases.

d. January 2019 Notes

On January 20, 2011, the Company completed an offering of $350.0 million 9 1/2% senior unsecured notes due 2019 (the "January Notes") and on October 19, 2011, the Company completed an offering of an additional $200.0 million 9 1/2% senior unsecured notes due 2019 (the "October Notes" and together with the January Notes, the "January 2019 Notes"). The January 2019 Notes were due to mature on February 15, 2019 and bore an interest rate of 9 1/2% per annum, payable semi-annually, in cash in arrears on February 15 and August 15 of each year. The January 2019 Notes were fully and unconditionally guaranteed on a senior unsecured basis by LMS, GCM and certain of the Company's future restricted subsidiaries, subject to certain Releases.

On April 6, 2015 (the "Redemption Date"), the entire $550.0 million outstanding principal amount of the January 2019 Notes was redeemed at a redemption price of 104.750% of the principal amount of the January 2019 Notes, plus accrued and unpaid interest up to the Redemption Date. The Company recognized a loss on extinguishment of $31.5 million related to the difference between the redemption price and the net carrying amount of the extinguished January 2019 Notes.

. Senior Secured Credit Facility

As of June 30, 2015, the Fourth Amended and Restated Credit Agreement (as amended, the "Senior Secured Credit Facility"), which matures on November 4, 2018, had a maximum credit amount of $2.0 billion, a borrowing base of $1.25 billion and an aggregate elected commitment of $1.0 billion with $125.0 million outstanding and was subject to an interest rate of 1.6875%. It contains both financial and non-financial covenants, all of which the Company was in compliance with as of June 30, 2015. Laredo is required to pay an annual commitment fee on the unused portion of the financial institutions' commitment of 0.375% to 0.5%, based on the ratio of outstanding revolving credit to the total commitment under the Senior Secured Credit Facility. Additionally, the Senior Secured Credit Facility provides for the issuance of letters of credit, limited to the lesser of total capacity or $20.0 million. No letters of credit were outstanding as of June 30, 2015 or 2014.

Subsequent to June 30, 2015, the Company made additional borrowings on the Senior Secured Credit Facility. See Note 19.a for additional information.

f. Fair value of debt

The Company has not elected to account for its debt instruments at fair value. The following table presents the carrying amount and fair values of the Company's debt for the periods presented:



	June 30, 2015				December 31, 2014
(in thousands)	Carrying value		Fair value		Carrying value		Fair value
January 2019 Notes⁽¹⁾	$	—	$	—	$	551,295	$	550,000
January 2022 Notes	450,000		445,499		450,000		396,014
May 2022 Notes	500,000		528,750		500,000		467,529
March 2023 Notes	350,000		362,237		—		—
Senior Secured Credit Facility	125,000		125,009		300,000		300,279
Total value of debt	$	1,425,000	$	1,461,495	$	1,801,295	$	1,713,822

______________________________________________________________________________


(1)	The carrying value of the January 2019 Notes includes the October Notes unamortized bond premium of $1.3 million as of December 31, 2014.

The fair values of the debt outstanding on the January 2019 Notes, January 2022 Notes, May 2022 Notes and the March 2023 Notes were determined using the June 30, 2015 and December 31, 2014 quoted market price (Level 1) for each respective instrument. The fair values of the outstanding debt on the Senior Secured Credit Facility as of June 30, 2015 and December 31, 2014 were estimated utilizing pricing models for similar instruments (Level 2). See Note 9 for information about fair value hierarchy levels.

Employee compensation

6 Months Ended

Jun. 30, 2015

Employee Compensation

Employee compensation

The Company has a Long-Term Incentive Plan (the "LTIP"), which provides for the granting of incentive awards in the form of restricted stock awards, restricted stock option awards, performance share awards, performance unit awards and other awards. The LTIP provides for the issuance of 10.0 million shares.

The Company recognizes the fair value of stock-based compensation awards expected to vest over the requisite service period as a charge against earnings, net of amounts capitalized. The Company's stock-based compensation awards are accounted for as equity instruments and its performance unit awards are accounted for as liability awards. Stock-based compensation is included in "General and administrative" in the unaudited consolidated statements of operations. The Company capitalizes a portion of stock-based compensation for employees who are directly involved in the acquisition, exploration and development of oil and natural gas properties into the full cost pool. Capitalized stock-based compensation is included as an addition to "Oil and natural gas properties" in the unaudited consolidated balance sheets.

a. Restricted stock awards

All restricted stock awards are treated as issued and outstanding in the accompanying unaudited consolidated financial statements. Per the award agreement terms, if an employee terminates employment prior to the restriction lapse date, for reasons other than death or disability, the awarded shares are forfeited and canceled and are no longer considered issued and outstanding. If the employee's termination of employment is by reason of death or disability, all of the holder's restricted stock will automatically vest. Restricted stock awards granted to officers and employees vest in a variety of vesting schedules including (i) 20% at the grant date and then 20% annually thereafter, (ii) 33%, 33% and 34% per year beginning on the first anniversary date of the grant, (iii) 50% in year two and 50% in year three, (iv) fully on the first anniversary of the grant date and (v) fully on the third anniversary of the grant date. Restricted stock awards granted to non-employee directors vest fully on the first anniversary of the grant date.

The following table reflects the outstanding restricted stock awards for the six months ended June 30, 2015:



(in thousands, except for weighted-average grant date fair values)	Restricted stock awards		Weighted-average grant date fair value (per award)
Outstanding as of December 31, 2014	2,205		$	22.63
Granted	1,873		$	12.01
Forfeited	(443	)	$	21.76
Vested⁽¹⁾	(855	)	$	22.31
Outstanding as of June 30, 2015	2,780		$	15.73

______________________________________________________________________________


(1)	The vesting of certain restricted stock awards could result in federal and state income tax expense or benefit related to the difference between the market price of the common stock at the date of vesting and the date of grant. See Note 7 for additional discussion regarding the tax impact of vested restricted stock awards.

The Company utilizes the closing stock price on the grant date to determine the fair value of service vesting restricted stock awards. As of June 30, 2015, unrecognized stock-based compensation related to the restricted stock awards expected to vest was $32.1 million. Such cost is expected to be recognized over a weighted-average period of 2.07 years.

b. Restricted stock option awards

Restricted stock option awards granted under the LTIP vest and are exercisable in four equal installments on each of the four anniversaries of the grant date. The following table reflects the stock option award activity for the six months ended June 30, 2015:



(in thousands, except for weighted-average exercise price and contractual term)	Restricted stock option awards		Weighted-average exercise price (per option)		Weighted-average remaining contractual term (years)
Outstanding as of December 31, 2014	1,367		$	20.76	8.17
Granted	632		$	11.93
Exercised⁽¹⁾	—		$	—
Expired or canceled	(47	)	$	19.48
Forfeited	(119	)	$	18.03
Outstanding as of June 30, 2015	1,833		$	17.93	8.35
Vested and exercisable at end of period⁽²⁾	580		$	20.76	7.34
Expected to vest at end of period⁽³⁾	1,229		$	16.51	8.83

_____________________________________________________________________________


(1)	The exercise of stock option awards could result in federal and state income tax expense or benefit related to the difference between the fair value of the stock option award at the date of grant and the intrinsic value of the stock option award when exercised. See Note 7 for additional discussion regarding the tax impact of exercised stock option awards.


(2)	The vested and exercisable options as of June 30, 2015 had no aggregate intrinsic value.


(3)	The aggregate intrinsic value of options expected to vest as of June 30, 2015 was $0.4 million.

The Company utilizes the Black-Scholes option pricing model to determine the fair value of restricted stock option awards and is recognizing the associated expense on a straight-line basis over the four-year requisite service period of the awards. Determining the fair value of equity-based awards requires judgment, including estimating the expected term that stock option awards will be outstanding prior to exercise and the associated volatility. As of June 30, 2015, unrecognized stock-based compensation related to the restricted stock option awards expected to vest was $9.2 million. Such cost is expected to be recognized over a weighted-average period of 2.68 years.

The assumptions used to estimate the fair value of restricted stock options granted on February 27, 2015 are as follows:



Risk-free interest rate⁽¹⁾	1.70		%
Expected option life⁽²⁾	6.25 years
Expected volatility⁽³⁾	52.59		%
Fair value per stock option	$	6.15

______________________________________________________________________________


(1)	U.S. Treasury yields as of the grant date were utilized for the risk-free interest rate assumption, correlating the treasury yield terms to the expected life of the option.


(2)	As the Company had limited exercise history at the time of valuation relating to terminations and modifications, expected option life assumptions were developed using the simplified method in accordance with GAAP.


(3)	The Company utilized its own volatility in order to develop the expected volatility.

In accordance with the LTIP and stock option agreement, the options granted will become exercisable in accordance with the following schedule based upon the number of full years of the optionee's continuous employment or service with the Company, following the date of grant:



Full years of continuous employment	Incremental percentage of option exercisable		Cumulative percentage of option exercisable
Less than one	—	%	—	%
One	25	%	25	%
Two	25	%	50	%
Three	25	%	75	%
Four	25	%	100	%

No shares of common stock may be purchased unless the optionee has remained in continuous employment with the Company for one year from the grant date. Unless terminated sooner, the option will expire if and to the extent it is not exercised within 10 years from the grant date. The unvested portion of a stock option award shall expire upon termination of employment, and the vested portion of a stock option award shall remain exercisable for (i) one year following termination of employment by reason of the holder's death or disability, but not later than the expiration of the option period, or (ii) 90 days following termination of employment for any reason other than the holder's death or disability, and other than the holder's termination of employment for cause. Both the unvested and the vested but unexercised portion of a stock option award shall expire upon the termination of the option holder's employment or service by the Company for cause.

c. Performance share awards

The performance share awards granted to management on February 27, 2015 (the "2015 Performance Share Awards") and on February 27, 2014 (the "2014 Performance Share Awards") are subject to a combination of market and service vesting criteria. A Monte Carlo simulation prepared by an independent third party was utilized to determine the grant date fair value of these awards. The Company has determined these awards are equity awards and recognizes the associated expense on a straight-line basis over the three-year requisite service period of the awards. These awards will be settled, if at all, in stock at the end of the requisite service period based on the achievement of certain performance criteria.

The 2015 Performance Share Awards have a performance period of January 1, 2015 to December 31, 2017 and any shares earned under such awards are expected to be issued in the first quarter of 2018 if the performance criteria are met. During the six months ended June 30, 2015, 602,501 2015 Performance Share Awards were granted and all remain outstanding as of June 30, 2015. The 271,667 outstanding 2014 Performance Share Awards have a performance period of January 1, 2014 to December 31, 2016 and any shares earned under such awards are expected to be issued in the first quarter of 2017 if the performance criteria are met.

As of June 30, 2015, unrecognized stock-based compensation related to the 2015 Performance Share Awards and the 2014 Performance Share Awards was $12.8 million. Such cost is expected to be recognized over a weighted-average period of 2.33 years.

The assumptions used to estimate the fair value of the 2015 Performance Share Awards granted on February 27, 2015 are as follows:



Risk-free rate⁽¹⁾	0.95		%
Dividend yield	—		%
Expected volatility⁽²⁾	53.78		%
Laredo stock closing price as of February 27, 2015	$	11.93
Fair value per performance share	$	16.23

______________________________________________________________________________


(1)	The risk-free rate was derived using a zero-coupon yield derived from the Treasury Constant Maturities yield curve on the grant date.


(2)	The Company utilized a peer historical look-back, weighted with the Company's own volatility, to develop the expected volatility.

d. Stock-based compensation award expense

The following has been recorded to stock-based compensation expense for the periods presented:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Restricted stock award compensation, net of amounts capitalized	$	3,856	$	4,951	$	7,136	$	8,437
Restricted stock option award compensation, net of amounts capitalized	1,142		835		1,815		1,463
Restricted performance share award compensation, net of amounts capitalized	1,270		610		2,105		825
Total stock-based compensation, net of amounts capitalized	$	6,268	$	6,396	$	11,056	$	10,725

e. Performance unit awards

The performance unit awards issued to management on February 15, 2013 (the "2013 Performance Unit Awards") and on February 3, 2012 (the "2012 Performance Unit Awards") are subject to a combination of market and service vesting criteria. These awards are accounted for as liability awards as they will be settled in cash at the end of the requisite service period based on the achievement of certain performance criteria. A Monte Carlo simulation prepared by an independent third party is utilized to determine the fair values of these awards at the grant date and to re-measure the fair values at the end of each reporting period until settlement in accordance with GAAP. The volatility criteria utilized in the Monte Carlo simulation is based on the volatility of the Company's stock price and the stock price volatilities of a group of peer companies defined in each respective award agreement. The liability and related compensation expense of these awards for each period is recognized by dividing the fair value of the total liability by the requisite service period and recording the pro rata share for the period for which service has already been provided. As there are inherent uncertainties related to these factors and the Company's judgment in applying them to the fair value determinations, there is risk that the recorded performance unit compensation may not accurately reflect the amount ultimately earned by the members of management.

The 44,481 outstanding 2013 Performance Unit Awards have a performance period of January 1, 2013 to December 31, 2015 and are expected to be paid in the first quarter of 2016 if the performance criteria are met. The 27,381 settled 2012 Performance Unit Awards had a performance period of January 1, 2012 to December 31, 2014 and, as their performance criteria were satisfied, they were paid at $100 per unit during the first quarter of 2015.

Compensation expense for the 2013 Performance Unit Awards is included in "General and administrative" in the Company's unaudited consolidated statements of operations, and the corresponding liability is included in "Other current liabilities" on the unaudited consolidated balance sheets. Due to the quarterly re-measurement of the fair value of the 2013 Performance Unit Awards as of June 30, 2015, compensation expense for the three and six months ended June 30, 2015 was $0.7 million and $1.7 million, respectively. Compensation expense related to the 2012 Performance Unit Awards and the 2013 Performance Unit Awards amounted to $1.1 million and $1.2 million for the three and six months ended June 30, 2014, respectively.

Income taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses and tax credit carry-forwards. Under this method, deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income (loss) in the period that includes the enactment date. A valuation allowance is established to reduce deferred tax assets if it is determined that it is more likely than not that the related tax benefit will not be realized. On a quarterly basis, management evaluates the need for and adequacy of valuation allowances based on the expected realizability of the deferred tax assets and adjusts the amount of such allowances, if necessary.

The Company evaluates uncertain tax positions for recognition and measurement in the unaudited consolidated financial statements. To recognize a tax position, the Company determines whether it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. A tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to be recognized in the unaudited consolidated financial statements. The amount of tax benefit recognized with respect to any tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. The Company had no unrecognized tax benefits related to uncertain tax positions in the unaudited consolidated financial statements as of June 30, 2015 or December 31, 2014.

The Company is subject to corporate income taxes and the Texas franchise tax. Income tax benefit for the periods presented consisted of the following:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Current taxes	$	—	$	—	$	—	$	—
Deferred taxes	221,846		10,374		218,203		10,267
Income tax benefit	$	221,846	$	10,374	$	218,203	$	10,267

Income tax benefit differed from amounts computed by applying the applicable federal income tax rate of 35% to pre-tax earnings as a result of the following:



	Three months ended June 30,						Six months ended June 30,
(in thousands)	2015			2014			2015			2014
Income tax benefit computed by applying the statutory rate	$	216,608		$	10,246		$	215,498		$	10,283
State income tax, net of federal tax benefit and increase in valuation allowance	5,776			347			5,867			1,634
Non-deductible stock-based compensation	(15		)	(123		)	(106		)	(239		)
Stock-based compensation tax deficiency	(381		)	(15		)	(2,838		)	(156		)
Change in deferred tax valuation allowance	(11		)	(34		)	(16		)	(1,112		)
Other items	(131		)	(47		)	(202		)	(143		)
Income tax benefit	$	221,846		$	10,374		$	218,203		$	10,267

The effective tax rate on loss before income taxes was 36% and 35% for the three months ended June 30, 2015 and 2014, respectively, and 35% for both the six months ended June 30, 2015 and 2014. The Company's effective tax rate is affected by recurring permanent differences and by discrete items that may occur in any given year, but are not consistent from year to year.

The impact of significant discrete items is separately recognized in the quarter in which they occur. The vesting of certain restricted stock awards could result in federal and state income tax expense or benefits related to the difference between the market price of the common stock at the date of vesting and the date of grant. The exercise of stock option awards could result in federal and state income tax expense or benefits related to the difference between the fair value of the stock option on the grant date and the intrinsic value of the stock option when exercised. The tax impact resulting from vestings of restricted stock awards and exercise of option awards are discrete items. During the three and six months ended June 30, 2015 and 2014, certain shares related to restricted stock awards vested at times when the Company's stock price was lower than the fair value of those shares on the grant date. As a result, the income tax deduction related to such shares is less than the expense previously recognized for book purposes. During the three and six months ended June 30, 2014, certain restricted stock options were exercised, for which the related income tax deduction was less than the expense previously recognized for book purposes. There were no stock options exercised during the three and six months ended June 30, 2015. In accordance with GAAP, such shortfalls reduce additional paid-in capital to the extent windfall tax benefits have been previously recognized. However, the Company has not previously recognized any windfall tax benefits; therefore, such shortfalls are included in income tax expense.

The following table presents the tax impact of these shortfalls for the periods presented:



	Three months ended June 30,						Six months ended June 30,
(in thousands)	2015			2014			2015			2014
Vesting of restricted stock	$	(388	)	$	—		$	(2,889	)	$	(1	)
Exercise of restricted stock options	—			(16		)	—			(158		)
Tax expense due to shortfalls	$	(388	)	$	(16	)	$	(2,889	)	$	(159	)

Significant components of the Company's net deferred tax asset (liability) for the periods presented are as follows:



(in thousands)	June 30, 2015			December 31, 2014
Oil and natural gas properties, midstream service assets and other fixed assets	$	(322,485	)	$	(424,712	)
Net operating loss carry-forward	433,335			353,724
Derivatives	(77,365		)	(121,365		)
Stock-based compensation	8,645			10,718
Equity method investee	(6,617		)	—
Accrued bonus	2,238			3,256
Capitalized interest	3,014			3,049
Other	1,808			(316		)
Gross deferred tax asset (liability)	42,573			(175,646		)
Valuation allowance	(1,315		)	(1,299		)
Net deferred tax asset (liability)	$	41,258		$	(176,945	)

Deferred tax assets and liabilities were classified in the unaudited consolidated balance sheets as follows for the periods presented:



(in thousands)	June 30, 2015			December 31, 2014
Deferred tax asset	$	86,347		$	—
Deferred tax liability	(45,089		)	(176,945		)
Deferred tax asset (liability)	$	41,258		$	(176,945	)

The Company had federal net operating loss carry-forwards totaling $1.2 billion and state of Oklahoma net operating loss carry-forwards totaling $71.9 million as of June 30, 2015. These carry-forwards begin expiring in 2026. As of June 30, 2015, the Company believes the federal and the state of Oklahoma net operating loss carry-forwards are fully realizable. The Company considered all available evidence, both positive and negative, in determining whether, based on the weight of that evidence, a valuation allowance was needed on either the federal or the Oklahoma net operating loss carry-forwards. Such consideration included estimated future projected earnings based on existing reserves and projected future cash flows from its oil and natural gas reserves (including the timing of those cash flows), the reversal of deferred tax liabilities recorded as of June 30, 2015, the Company's ability to capitalize intangible drilling costs, rather than expensing these costs in order to prevent an operating loss carry-forward from expiring unused, and future projections of Oklahoma sourced income.

The Company's federal and state operating loss carry-forwards include windfall tax deductions from vestings of certain restricted stock awards and stock option exercises that were not recorded in the Company's income tax provision. The amount of windfall tax benefit recognized in additional paid-in capital is limited to the amount of benefit realized currently in income taxes payable. As of June 30, 2015, the Company had suspended additional paid-in capital credits of $4.5 million related to windfall tax deductions. Upon realization of the net operating loss carry-forwards from such windfall tax deductions, the Company would record a benefit of up to $4.5 million in additional paid-in capital.

The Company maintains a valuation allowance to reduce certain deferred tax assets to amounts that are more likely than not to be realized. As of June 30, 2015, a full valuation allowance of $1.3 million was recorded against the deferred tax asset related to the Company's charitable contribution carry-forward of $3.7 million.

The Company's income tax returns for the years 2012 through 2014 remain open and subject to examination by federal tax authorities and/or the tax authorities in Oklahoma and Texas, which are the jurisdictions where the Company has operations. Additionally, the statute of limitations for examination of federal net operating loss carry-forwards typically does not begin to run until the year the attribute is utilized in a tax return.

Derivatives

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

a. Commodity derivatives

The Company engages in derivative transactions such as collars, swaps, puts and basis swaps to hedge price risks due to unfavorable changes in oil and natural gas prices related to its production. As of June 30, 2015, the Company had 36 open derivative contracts with financial institutions that extend from July 2015 to December 2017. None of these contracts were designated as hedges for accounting purposes. The contracts are recorded at fair value on the balance sheet and gains and losses are recognized in current period earnings. Gains and losses on derivatives are reported on the unaudited consolidated statements of operations in the "Loss on derivatives, net" line item.

Each collar transaction has an established price floor and ceiling. When the settlement price is below the price floor established by these collars, the Company receives an amount from its counterparty equal to the difference between the settlement price and the price floor multiplied by the hedged contract volume. When the settlement price is above the price ceiling established by these collars, the Company pays its counterparty an amount equal to the difference between the settlement price and the price ceiling multiplied by the hedged contract volume.

Each swap transaction has an established fixed price. When the settlement price is below the fixed price, the counterparty pays the Company an amount equal to the difference between the settlement price and the fixed price multiplied by the hedged contract volume. When the settlement price is above the fixed price, the Company pays its counterparty an amount equal to the difference between the settlement price and the fixed price multiplied by the hedged contract volume.

Each put transaction has an established floor price. The Company pays its counterparty a premium, which can be deferred until settlement, to enter into the put transaction. When the settlement price is below the floor price, the counterparty pays the Company an amount equal to the difference between the settlement price and the fixed price multiplied by the hedged contract volume. When the settlement price is above the floor price, the put option expires.

The oil basis swap transactions have an established fixed basis differential. The Company's oil basis swaps' differential is between the West Texas Intermediate-Argus Americas Crude (Midland) ("WTI Midland") index crude oil price and the WTI NYMEX (defined below) index crude oil price. When the WTI NYMEX price less the fixed basis differential is greater than the actual WTI Midland price, the difference multiplied by the hedged contract volume is paid to the Company by the counterparty. When the WTI NYMEX price less the fixed basis differential is less than the actual WTI Midland price, the difference multiplied by the hedged contract volume is paid by the Company to the counterparty.

During the first quarter of 2014, the Company unwound a physical commodity contract and the associated oil basis swap financial derivative contract that hedged the differential between the Light Louisiana Sweet Argus and the Brent International Petroleum Exchange index oil prices. Prior to its unwind, the physical commodity contract qualified to be scoped out of mark-to-market accounting in accordance with the normal purchase and normal sale scope exemption. Once modified to settle financially in the unwind agreement, the contract ceased to qualify for the normal purchase and normal sale scope exemption, therefore requiring it to be marked-to-market. The Company received net proceeds of $76.7 million from the early termination of these contracts. The Company agreed to settle the contracts early due to the counterparty's decision to exit the physical commodity trading business.

The following represents cash settlements received (paid) for derivatives for the periods presented:



	Three months ended June 30,					Six months ended June 30,
(in thousands)	2015		2014			2015		2014
Cash settlements received (paid) for matured commodity derivatives	$	46,596	$	(4,420	)	$	109,737	$	(5,851	)
Early terminations of commodity derivatives received	—		—			—		76,660
Cash settlements received (paid) for derivatives, net	$	46,596	$	(4,420	)	$	109,737	$	70,809

The following table summarizes open positions as of June 30, 2015, and represents, as of such date, derivatives in place through December 2017 on annual production volumes:



	Remaining Year 2015			Year 2016		Year 2017
Oil positions:⁽¹⁾
Puts:
Hedged volume (Bbl)	228,000			—		—
Weighted-average price ($/Bbl)	$	75.00		$	—	$	—
Swaps:
Hedged volume (Bbl)	336,000			1,573,800		—
Weighted-average price ($/Bbl)	$	96.56		$	84.82	$	—
Collars:
Hedged volume (Bbl)	3,283,760			3,654,000		2,628,000
Weighted-average floor price ($/Bbl)	$	79.81		$	73.99	$	77.22
Weighted-average ceiling price ($/Bbl)	$	95.41		$	89.63	$	97.22
Totals:
Total volume hedged with ceiling price (Bbl)	3,619,760			5,227,800		2,628,000
Weighted-average ceiling price ($/Bbl)	$	95.51		$	88.18	$	97.22
Total volume hedged with floor price (Bbl)	3,847,760			5,227,800		2,628,000
Weighted-average floor price ($/Bbl)	$	80.99		$	77.25	$	77.22
Basis swaps:⁽²⁾
Hedged volume (Bbl)	1,840,000			—		—
Weighted-average price ($/Bbl)	$	(1.95	)	$	—	$	—
Natural gas positions:⁽³⁾
Collars:
Hedged volume (MMBtu)	14,384,000			18,666,000		—
Weighted-average floor price ($/MMBtu)	$	3.00		$	3.00	$	—
Weighted-average ceiling price ($/MMBtu)	$	5.96		$	5.60	$	—

_______________________________________________________________________________


(1)	Oil derivatives are settled based on the average of the daily settlement prices for the First Nearby Month of the West Texas Intermediate NYMEX Light Sweet Crude Oil Futures Contract for each NYMEX Trading Day during each month ("WTI NYMEX").


(2)	The associated oil basis swaps are settled on the differential between the WTI Midland and the WTI NYMEX index oil prices.


(3)	Natural gas derivatives are settled based on the Inside FERC index price for West Texas Waha for the calculation period.

b. Balance sheet presentation

In accordance with the Company's standard practice, its commodity derivatives are subject to counterparty netting under agreements governing such derivatives. The Company's oil and natural gas commodity derivatives are presented on a net basis as "Derivatives" on the unaudited consolidated balance sheets. See Note 9.a for a summary of the fair value of derivatives on a gross basis.

By using derivatives to hedge exposures to changes in commodity prices, the Company exposes itself to credit risk and market risk. For the Company, market risk is the exposure to changes in the market price of oil and natural gas, which are subject to fluctuations from a variety of factors, including changes in supply and demand. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, thereby creating credit risk. The Company's counterparties are participants in the Senior Secured Credit Facility, which is secured by the Company's oil and natural gas reserves; therefore, the Company is not required to post any collateral. The Company does not require collateral from its derivative counterparties. The Company minimizes the credit risk in derivatives by: (i) limiting its exposure to any single counterparty, (ii) entering into derivatives only with counterparties that meet the Company's minimum credit quality standard or have a guarantee from an affiliate that meets the Company's minimum credit quality standard and (iii) monitoring the creditworthiness of the Company's counterparties on an ongoing basis.

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.

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Fair value measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair value measurements

The Company accounts for its oil and natural gas commodity derivatives at fair value. The fair value of derivatives is determined utilizing pricing models for similar instruments. The models use a variety of techniques to arrive at fair value, including quotes and pricing analysis. Inputs to the pricing models include publicly available prices and forward curves generated from a compilation of data gathered from third parties.

The Company has categorized its assets and liabilities measured at fair value, based on the priority of inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

Assets and liabilities recorded at fair value on the unaudited consolidated balance sheets are categorized based on inputs to the valuation techniques as follows:



Level 1—	Assets and liabilities recorded at fair value for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access. Active markets are considered to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—	Assets and liabilities recorded at fair value for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the assets or liabilities. Substantially all of these inputs are observable in the marketplace throughout the full term of the price risk management instrument and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace.

Level 3—	Assets and liabilities recorded at fair value for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs are not corroborated by market data. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability.

When the inputs used to measure fair value fall within different levels of the hierarchy in a liquid environment, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company conducts a review of fair value hierarchy classifications on an annual basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Transfers between fair value hierarchy levels are recognized and reported in the period in which the transfer occurred. No transfers between fair value hierarchy levels occurred during the three or six months ended June 30, 2015 or 2014.

a. Fair value measurement on a recurring basis

The following tables summarize the Company's fair value hierarchy by commodity on a gross basis and the net presentation on the unaudited consolidated balance sheets for derivative assets and liabilities measured at fair value on a recurring basis for the periods presented:



(in thousands)	Level 1		Level 2			Level 3			Total gross fair value			Amounts offset			Net fair value presented on the consolidated balance sheets
As of June 30, 2015:
Assets
Current:
Oil derivatives	$	—	$	124,414		$	—		$	124,414		$	(3,100	)	$	121,314
Natural gas derivatives	—		7,554			—			7,554			—			7,554
Oil deferred premiums	—		—			—			—			(4,695		)	(4,695		)
Natural gas deferred premiums	—		—			—			—			(350		)	(350		)
Noncurrent:
Oil derivatives	$	—	$	85,079		$	—		$	85,079		$	—		$	85,079
Natural gas derivatives	—		2,514			—			2,514			—			2,514
Oil deferred premiums	—		—			—			—			(7,042		)	(7,042		)
Natural gas deferred premiums	—		—			—			—			—			—
Liabilities
Current:
Oil derivatives	$	—	$	(3,100	)	$	—		$	(3,100	)	$	3,100		$	—
Natural gas derivatives	—		—			—			—			—			—
Oil deferred premiums	—		—			(4,695		)	(4,695		)	4,695			—
Natural gas deferred premiums	—		—			(350		)	(350		)	350			—
Noncurrent:
Oil derivatives	$	—	$	—		$	—		$	—		$	—		$	—
Natural gas derivatives	—		—			—			—			—			—
Oil deferred premiums	—		—			(7,042		)	(7,042		)	7,042			—
Natural gas deferred premiums	—		—			—			—			—			—
Net derivative position	$	—	$	216,461		$	(12,087	)	$	204,374		$	—		$	204,374



(in thousands)	Level 1		Level 2		Level 3			Total gross fair value			Amounts offset			Net fair value presented on the consolidated balance sheets
As of December 31, 2014:
Assets
Current:
Oil derivatives	$	—	$	190,303	$	—		$	190,303		$	—		$	190,303
Natural gas derivatives	—		9,647		—			9,647			—			9,647
Oil deferred premiums	—		—		—			—			(4,653		)	(4,653		)
Natural gas deferred premiums	—		—		—			—			(696		)	(696		)
Noncurrent:
Oil derivatives	$	—	$	117,963	$	—		$	117,963		$	—		$	117,963
Natural gas derivatives	—		3,646		—			3,646			—			3,646
Oil deferred premiums	—		—		—			—			(3,821		)	(3,821		)
Natural gas deferred premiums	—		—		—			—			—			—
Liabilities
Current:
Oil derivatives	$	—	$	—	$	—		$	—		$	—		$	—
Natural gas derivatives	—		—		—			—			—			—
Oil deferred premiums	—		—		(4,768		)	(4,768		)	4,653			(115		)
Natural gas deferred premiums	—		—		(696		)	(696		)	696			—
Noncurrent:
Oil derivatives	$	—	$	—	$	—		$	—		$	—		$	—
Natural gas derivatives	—		—		—			—			—			—
Oil deferred premiums	—		—		(3,821		)	(3,821		)	3,821			—
Natural gas deferred premiums	—		—		—			—			—			—
Net derivative position	$	—	$	321,559	$	(9,285	)	$	312,274		$	—		$	312,274

These items are included as "Derivatives" on the unaudited consolidated balance sheets. Significant Level 2 assumptions associated with the calculation of discounted cash flows used in the mark-to-market analysis of commodity derivatives include each derivative contract's corresponding commodity index price, appropriate risk-adjusted discount rates and other relevant data.

The Company's deferred premiums associated with its commodity derivative contracts are categorized as Level 3, as the Company utilizes a net present value calculation to determine the valuation. They are considered to be measured on a recurring basis as the derivative contracts they derive from are measured on a recurring basis. As commodity derivative contracts containing deferred premiums are entered into, the Company discounts the associated deferred premium to its net present value at the contract trade date, using the Senior Secured Credit Facility rate at the trade date (historical input rates range from 1.69% to 3.56%), and then records the change in net present value to interest expense over the period from trade until the final settlement date at the end of the contract. After this initial valuation, the net present value of each deferred premium is not adjusted; therefore, significant increases (decreases) in the Senior Secured Credit Facility rate would result in a significantly lower (higher) fair value measurement for each new contract entered into that contained a deferred premium; however, the valuation for the deferred premiums already recorded would remain unaffected. While the Company believes the sources utilized to arrive at the fair value estimates are reliable, different sources or methods could have yielded different fair value estimates; therefore, on a quarterly basis, the valuation is compared to counterparty valuations and a third-party valuation of the deferred premiums for reasonableness.

The following table presents actual cash payments required for deferred premiums as of June 30, 2015, and for the calendar years following:



(in thousands)
Remaining 2015	$	2,497
2016	4,471
2017	4,967
2018	426
Total	$	12,361

A summary of the changes in assets classified as Level 3 measurements for the periods presented are as follows:



	Three months ended June 30,						Six months ended June 30,
(in thousands)	2015			2014			2015			2014
Balance of Level 3 at beginning of period	$	(8,882	)	$	(10,790	)	$	(9,285	)	$	(12,684	)
Change in net present value of deferred premiums for derivatives	(45		)	(55		)	(88		)	(120		)
Total purchases and settlements:
Purchases	(4,409		)	—			(5,384		)	—
Settlements	1,249			1,820			2,670			3,779
Balance of Level 3 at end of period	$	(12,087	)	$	(9,025	)	$	(12,087	)	$	(9,025	)

b. Fair value measurement on a nonrecurring basis

The Company accounts for the impairment of long-lived assets, if any, at fair value on a nonrecurring basis. For purposes of fair value measurement, it was determined that the impairment of long-lived assets is classified as Level 3, based on the use of internally developed cash flow models. See Note 2.n for discussion regarding the Company's impairments of materials and supplies and line-fill during the three and six months ended June 30, 2015.

The accounting policies for impairment of oil and natural gas properties are discussed in Note 2.g. Significant inputs included in the calculation of discounted cash flows used in the impairment analysis include the Company's estimate of operating and development costs, anticipated production of evaluated reserves and other relevant data. See Note 2.g for discussion regarding the Company's second-quarter full cost ceiling impairment.

Net income (loss) per share

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

Credit risk	6 Months Ended
Credit risk	Jun. 30, 2015
Risks and Uncertainties [Abstract]
Credit risk	Credit risk The Company's oil, NGL and natural gas sales are made to a variety of purchasers, including intrastate and interstate pipelines or their marketing affiliates and independent marketing companies. The Company's joint operations accounts receivable are from a number of oil and natural gas companies, partnerships, individuals and others who own interests in the oil and natural gas properties operated by the Company. Management believes that any credit risk imposed by a concentration in the oil and natural gas industry is offset by the creditworthiness of the Company's customer base and industry partners. The Company routinely assesses the recoverability of all material trade and other receivables to determine collectability. The Company uses derivatives to hedge its exposure to oil and natural gas price volatility. These transactions expose the Company to potential credit risk from its counterparties. In accordance with the Company's standard practice, its derivatives are subject to counterparty netting under agreements governing such derivatives; therefore, the credit risk associated with its derivative counterparties is somewhat mitigated. See Notes 2.f, 8 and 9 for additional information regarding the Company's derivatives.

Commitments and contingencies	6 Months Ended
Commitments and contingencies	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies a. Litigation From time to time the Company is involved in legal proceedings and/or may be subject to industry rulings that could bring rise to claims in the ordinary course of business. The Company has concluded that the likelihood is remote that the ultimate resolution of any pending litigation or pending claims will be material or have a material adverse effect on the Company's business, financial position, results of operations or liquidity. b. Drilling contracts The Company has committed to drilling contracts with various third parties to complete its various drilling projects. The contracts contain early termination clauses that require the Company to potentially pay penalties to the third parties should the Company cease drilling efforts. These penalties would negatively impact the Company's financial statements upon early contract termination, especially if a significant number of such contracts were terminated early in their respective terms. In the fourth quarter of 2014, the Company announced a reduced 2015 capital expenditure budget compared to 2014. As a result, the Company began releasing rigs as drilling contracts came close to expiration and incurred charges of $0.5 million in the fourth quarter of 2014. No comparable amounts were recorded in the three and six months ended June 30, 2015 or 2014. Future commitments of $27.0 million as of June 30, 2015 are not recorded in the accompanying unaudited consolidated balance sheets. Management does not currently anticipate the early termination of any existing contracts in 2015 that would result in a substantial penalty. c. Federal and state regulations Oil and natural gas exploration, production and related operations are subject to extensive federal and state laws, rules and regulations. Failure to comply with these laws, rules and regulations can result in substantial penalties. The regulatory burden on the oil and natural gas industry increases the cost of doing business and affects profitability. The Company believes that it is in compliance with currently applicable federal and state regulations related to oil and natural gas exploration and production, and that compliance with the current regulations will not have a material adverse impact on the financial position or results of operations of the Company. These rules and regulations are frequently amended or reinterpreted; therefore, the Company is unable to predict the future cost or impact of complying with these regulations. d. Other commitments See Notes 15.a and 19.b for discussion regarding the commitments to the Company's non-consolidated variable interest entity ("VIE").

Restructuring	6 Months Ended
Restructuring	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring Following the fourth-quarter 2014 drop in oil prices, in an effort to reduce costs and to better position the Company for ongoing efficient growth, on January 20, 2015, the Company executed a company-wide restructuring and reduction in force (the "RIF") that included (i) the relocation of certain employees in the Company's Dallas, Texas area office to the Company's other existing offices in Tulsa, Oklahoma and Midland, Texas; (ii) closing the Company's Dallas, Texas area office; (iii) a workforce reduction of approximately 75 employees and (iv) the release of 24 contract personnel. The RIF was communicated to employees on January 20, 2015 and was generally effective immediately. The Company's compensation committee approved the RIF and the related severance package. The Company incurred $6.0 million in expenses during the six months ended June 30, 2015 related to the RIF.

Net income (loss) per share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Net loss per share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share reflects the potential dilution of non-vested restricted stock awards, performance share awards and outstanding restricted stock options. For the three and six months ended June 30, 2015 and 2014, all of these potentially dilutive items were anti-dilutive due to the Company's net loss and, therefore, were excluded from the calculation of diluted net loss per share.

The following is the calculation of basic and diluted weighted-average common shares outstanding and net loss per share for the periods presented:



	Three months ended June 30,						Six months ended June 30,
(in thousands, except for per share data)	2015			2014			2015			2014
Net loss (numerator):
Net loss—basic and diluted	$	(397,034	)	$	(18,899	)	$	(397,506	)	$	(19,112	)
Weighted-average common shares outstanding (denominator)⁽¹⁾:
Basic	211,078			141,298			186,886			141,183
Diluted	211,078			141,298			186,886			141,183
Net loss per share:
Basic	$	(1.88	)	$	(0.13	)	$	(2.13	)	$	(0.14	)
Diluted	$	(1.88	)	$	(0.13	)	$	(2.13	)	$	(0.14	)

______________________________________________________________________________


(1)	For the three and six months ended June 30, 2015, weighted-average common shares outstanding used in the computation of basic and diluted net loss per share attributable to stockholders has been computed taking into account the March 2015 Equity Offering.

Variable interest entity	6 Months Ended
Variable interest entity	Jun. 30, 2015
Variable Interest Entity [Abstract]
Variable Interest Entity	Variable interest entity An entity is referred to as a VIE pursuant to accounting guidance for consolidation if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity's residual economics, or (v) the entity was established with non-substantive voting interests. In order to determine if a VIE should be consolidated, an entity must determine if it is the primary beneficiary of the VIE. The primary beneficiary of a VIE is that variable interest holder possessing a controlling financial interest through: (i) its power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) its obligation to absorb losses or its right to receive benefits from the VIE that could potentially be significant to the VIE. In order to determine whether the Company owns a variable interest in a VIE, a qualitative analysis is performed of the entity's design, organizational structure, primary decision makers and relevant agreements. The Company continually monitors its VIE exposure to determine if any events have occurred that could cause the primary beneficiary to change. LMS contributed $14.5 million during the six months ended June 30, 2015 and $8.2 million and $19.5 million during the three and six months ended June 30, 2014, respectively, to Medallion Gathering & Processing, LLC, a Texas limited liability company formed on October 12, 2012, and its wholly-owned subsidiaries (together "Medallion"). No contributions were made to Medallion during the three months ended June 30, 2015. See Note 19.b for discussion on a contribution made to Medallion subsequent to June 30, 2015. LMS holds 49% of Medallion ownership units. Medallion was established for the purpose of developing midstream solutions and providing midstream infrastructure to bring oil, NGL and natural gas to market. LMS and the other 51% interest-holder have agreed that the voting rights of Medallion, the profit and loss sharing, and the additional capital contribution requirements shall be equal to the ownership unit percentage held. Additionally, Medallion requires a super-majority vote of 75% for all key operating and business decisions. The Company has determined that Medallion is a VIE. However, LMS is not considered to be the primary beneficiary of the VIE because LMS does not have the power to direct the activities that most significantly affect Medallion's economic performance. As such, Medallion is accounted for under the equity method of accounting with the Company's proportionate share of Medallion's net income (loss) reflected in the unaudited consolidated statements of operations as "Income (loss) from equity method investee" and the carrying amount reflected in the unaudited consolidated balance sheets as "Investment in equity method investee." During the six months ended June 30, 2015, Medallion continued expansion activities on existing portions of its pipeline infrastructure in order to gather additional third-party oil production. During the three months ended June 30, 2015, Medallion began recognizing revenue due to its main pipeline becoming fully operational. See Note 15.a for discussion of items included in the unaudited consolidated financial statements related to Medallion. During the three months ended June 30, 2015, the Company negotiated a buyout of a minimum volume commitment to Medallion, which was related to natural gas gathering infrastructure Medallion constructed on acreage that the Company does not plan to develop. The portion of the buyout that was related to the Company's minimum volume commitment for future periods was $3.0 million and is included in the unaudited consolidated statements of operations in the line item "Minimum volume commitments" for the period in which the buyout was settled.

Related Parties

6 Months Ended

Jun. 30, 2015

Related Parties

a. Medallion

The following table summarizes items included in the unaudited consolidated statements of operations related to Medallion for the periods presented:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Midstream service revenues	$	390	$	—	$	487	$	—
Minimum volume commitments	3,579		588		5,235		1,104
Interest and other income	—		—		108		—

The following table summarizes items included in the unaudited consolidated balance sheets related to Medallion for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Other assets, net	$	1,229	$	1,110
Other current liabilities	27,917		3,443

Amounts included in "Other assets, net" above represent LMS owned line-fill in Medallion's pipeline and amounts included in "Other current liabilities" above represent LMS's capital contribution paid to Medallion subsequent to June 30, 2015. See Note 14 for additional discussion of Medallion and Note 19.b for additional discussion of the subsequent payment to Medallion.

b. Targa Resources Corp.

The Company has a gathering and processing arrangement with affiliates of Targa Resources Corp. ("Targa"). One of Laredo's directors is on the board of directors of Targa.

The following table summarizes the net oil, NGL and natural gas sales (oil, NGL and natural gas sales less production taxes) received from Targa and included in the unaudited consolidated statements of operations for the periods presented:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Oil, NGL and natural gas sales	$	34,012	$	23,997	$	53,643	$	46,476

The following table summarizes the amounts included in oil, NGL and natural gas sales receivable from Targa in the unaudited consolidated balance sheets for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Accounts receivable, net	$	9,333	$	12,869

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

Segments

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segments

Since the beginning of 2015, the Company has presented financial results by segment to highlight the growing value of its midstream and marketing segment and its interest in Medallion, as Medallion's third-party revenues increase.

The Company operates in two business segments, which are (i) exploration and production and (ii) midstream and marketing. The exploration and production segment is engaged in the acquisition, exploration and development of oil and natural gas properties. The midstream and marketing segment provides the exploration and production segment and certain third parties with (i) any products and services that need to be delivered by midstream infrastructure, including oil and natural gas gathering services as well as rig fuel, natural gas lift and water in the primary drilling corridors and (ii) takeaway optionality in the field and firm service commitments to maximize oil, NGL and natural gas revenues.

The following tables present selected financial information regarding the Company's operating segments for the periods presented:



(in thousands)	Exploration and production			Midstream and marketing			Intercompany eliminations			Consolidated company
Three months ended June 30, 2015:
Oil, NGL and natural gas sales	$	125,679		$	221		$	(346	)	$	125,554
Midstream service revenues	—			4,362			(2,636		)	1,726
Sales of purchased oil	—			55,051			—			55,051
Total revenues	125,679			59,634			(2,982		)	182,331
Lease operating expenses, including production tax	41,423			—			(2,717		)	38,706
Midstream service expenses, including minimum volume commitments	4,399			998			(221		)	5,176
Costs of purchased oil	—			54,417			—			54,417
General and administrative⁽¹⁾	21,347			1,861			—			23,208
Depletion, depreciation and amortization⁽²⁾	69,987			2,125			—			72,112
Other operating costs and expenses⁽³⁾	490,147			45			—			490,192
Operating income (loss)	$	(501,624	)	$	188		$	(44	)	$	(501,480	)
Other financial information:
Income from equity method investee	$	—		$	2,914		$	—		$	2,914
Interest expense⁽⁴⁾	$	(22,845	)	$	(1,125	)	$	—		$	(23,970	)
Loss on early redemption of debt⁽⁴⁾	$	(30,056	)	$	(1,481	)	$	—		$	(31,537	)
Capital expenditures⁽⁵⁾	$	(133,259	)	$	(13,841	)	$	—		$	(147,100	)
Gross property and equipment⁽⁶⁾	$	5,170,912		$	257,073		$	(365	)	$	5,427,620
Three months ended June 30, 2014:
Oil, NGL and natural gas sales	$	182,872		$	—		$	—		$	182,872
Midstream service revenues	—			1,542			(1,370		)	172
Total revenues	182,872			1,542			(1,370		)	183,044
Lease operating expenses, including production tax	34,709			—			(1,370		)	33,339
Midstream service expenses, including minimum volume commitments	—			2,114			—			2,114
General and administrative⁽¹⁾	27,742			1,810			—			29,552
Depletion, depreciation and amortization⁽²⁾	52,261			795			—			53,056
Other operating costs and expenses⁽³⁾	422			—			—			422
Operating income (loss)	$	67,738		$	(3,177	)	$	—		$	64,561
Other financial information:
Loss from equity method investee	$	—		$	(41	)	$	—		$	(41	)
Interest expense⁽⁴⁾	$	(29,729	)	$	(928	)	$	—		$	(30,657	)
Capital expenditures⁽⁵⁾	$	(229,922	)	$	(15,705	)	$	—		$	(245,627	)
Gross property and equipment⁽⁶⁾	$	3,962,611		$	123,648		$	—		$	4,086,259

_______________________________________________________________________________


(1)	General and administrative costs were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014. However, payroll, deferred compensation, vehicle costs and the capitalization of payroll and deferred compensation associated with land and geology are based on actual costs for each segment for the three months ended June 30, 2015 and 2014.


(2)	Depletion, depreciation and amortization is based on actual costs for each segment with the exception of the allocation of other fixed assets, which is based on the number of employees in the respective segment as of June 30, 2015 and 2014.


(3)	Includes accretion of asset retirement obligations and impairments for the three months ended June 30, 2015 and 2014. These expenses are based on actual costs and are not allocated. See Notes 2.g and 2.n for discussion of the Company's impairments.


(4)	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.


(5)	Capital expenditures excludes acquisition of oil and natural gas properties for the three months ended June 30, 2014.


(6)	Gross property and equipment includes investment in equity method investee totaling $103.2 million and $40.9 million as of June 30, 2015 and 2014, respectively. Other fixed assets were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014.



(in thousands)	Exploration and production				Midstream and marketing				Intercompany eliminations			Consolidated company
Six months ended June 30, 2015:
Oil, NGL and natural gas sales	$	243,890		—	$	333		—	$	(551	)	$	243,672
Midstream service revenues	—			—	8,045			—	(5,010		)	3,035
Sales of purchased oil	—			—	86,318			—	—			86,318
Total revenues	243,890				94,696				(5,561		)	333,025
Lease operating expenses, including production tax	85,268			—	—			—	(5,096		)	80,172
Midstream service expenses, including minimum volume commitments	4,399			—	4,340			—	(333		)	8,406
Costs of purchased oil	—			—	85,617			—	—			85,617
General and administrative⁽¹⁾	41,125			—	3,938			—	—			45,063
Depletion, depreciation and amortization⁽²⁾	140,244			—	3,810			—	—			144,054
Other operating costs and expenses⁽³⁾	497,338			—	353			—	—			497,691
Operating loss	$	(524,484	)		$	(3,362	)		$	(132	)	$	(527,978	)
Other financial information:
Income from equity method investee	$	—		—	$	2,481		—	$	—		$	2,481
Interest expense⁽⁴⁾	$	(53,932	)	—	$	(2,452	)	—	$	—		$	(56,384	)
Loss on early redemption of debt⁽⁴⁾	$	(30,056	)		$	(1,481	)		$	—		$	(31,537	)
Capital expenditures⁽⁵⁾	$	(380,872	)	—	$	(34,314	)	—	$	—		$	(415,186	)
Gross property and equipment⁽⁶⁾	$	5,170,912			$	257,073			$	(365	)	$	5,427,620
Six months ended June 30, 2014:
Oil, NGL and natural gas sales	$	356,086			$	—			$	—		$	356,086
Midstream service revenues	—				2,572				(2,304		)	268
Sales of purchased oil	—				—				—			—
Total revenues	356,086				2,572				(2,304		)	356,354
Lease operating expenses, including production tax	69,878				—				(2,304		)	67,574
Midstream service expenses, including minimum volume commitments	—				3,475				—			3,475
General and administrative⁽¹⁾	54,058				3,148				—			57,206
Depletion, depreciation and amortization⁽²⁾	101,229				1,434				—			102,663
Other operating costs and expenses⁽³⁾	837				—				—			837
Operating income (loss)	$	130,084			$	(5,485	)		$	—		$	124,599
Other financial information:
Loss from equity method investee	$	—			$	(25	)		$	—		$	(25	)
Interest expense⁽⁴⁾	$	(58,103	)		$	(1,540	)		$	—		$	(59,643	)
Capital expenditures⁽⁵⁾	$	(420,331	)		$	(26,225	)		$	—		$	(446,556	)
Gross property and equipment⁽⁶⁾	$	3,962,611			$	123,648			$	—		$	4,086,259

_______________________________________________________________________________


(1)	General and administrative costs were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014. However, payroll, deferred compensation, vehicle costs and the capitalization of payroll and deferred compensation associated with land and geology are based on actual costs for each segment for the six months ended June 30, 2015 and 2014.


(2)	Depletion, depreciation and amortization is based on actual costs for each segment with the exception of the allocation of other fixed assets, which is based on the number of employees in the respective segment as of June 30, 2015 and 2014.


(3)	Includes the following expenses: restructuring expense, accretion of asset retirement obligations and impairments for the six months ended June 30, 2015 and 2014. These expenses are based on actual costs and are not allocated. See Notes 2.g and 2.n for discussion of the Company's impairments.


(4)	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.


(5)	Capital expenditures excludes acquisition of mineral interests and acquisition of oil and natural gas properties for the six months ended June 30, 2014.


(6)	Gross property and equipment includes investment in equity method investee totaling $103.2 million and $40.9 million as of June 30, 2015 and 2014, respectively. Other fixed assets were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Subsidiary guarantees

6 Months Ended

Jun. 30, 2015

Subsidiary guarantees

Laredo and the Guarantors have fully and unconditionally guaranteed the January 2022 Notes, the May 2022 Notes, the March 2023 Notes and the Senior Secured Credit Facility, subject to the Releases. In accordance with practices accepted by the SEC, Laredo has prepared condensed consolidating financial statements to quantify the assets, results of operations and cash flows of such subsidiaries as subsidiary guarantors. The following unaudited condensed consolidating balance sheets as of June 30, 2015 and December 31, 2014, unaudited condensed consolidating statements of operations for the three and six months ended June 30, 2015 and 2014 and unaudited condensed consolidating statements of cash flows for the six months ended June 30, 2015 and 2014 present financial information for Laredo on a stand-alone basis (carrying any investment in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis (carrying any investment in subsidiaries under the equity method), and the consolidation and elimination entries necessary to arrive at the information for the Company on a condensed consolidated basis. Deferred income taxes for LMS and for GCM are recorded on Laredo's statements of financial position, statements of operations and statements of cash flows as they are disregarded entities for income tax purposes. Laredo and the Guarantors are not restricted from making intercompany distributions to each other.

Condensed consolidating balance sheet

June 30, 2015

(Unaudited)



(in thousands)	Laredo		Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Accounts receivable, net	$	91,619	$	18,724	$	—		$	110,343
Other current assets	194,806		9,596		—			204,402
Total oil and natural gas properties, net	2,896,862		7,249		(365		)	2,903,746
Total midstream service assets, net	—		136,862		—			136,862
Total other fixed assets, net	44,273		399		—			44,672
Investment in subsidiaries and equity method investee	233,920		103,181		(233,920		)	103,181
Total other long-term assets	194,659		4,164		—			198,823
Total assets	$	3,656,139	$	280,175	$	(234,285	)	$	3,702,029

Accounts payable	$	21,591	$	1,673	$	—		$	23,264
Other current liabilities	244,892		41,918		—			286,810
Long-term debt	1,425,000		—		—			1,425,000
Other long-term liabilities	35,344		2,664		—			38,008
Stockholders' equity	1,929,312		233,920		(234,285		)	1,928,947
Total liabilities and stockholders' equity	$	3,656,139	$	280,175	$	(234,285	)	$	3,702,029

Condensed consolidating balance sheet

December 31, 2014

(Unaudited)



(in thousands)	Laredo		Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Accounts receivable, net	$	107,860	$	19,069	$	—		$	126,929
Other current assets	238,300		24		—			238,324
Total oil and natural gas properties, net	3,196,231		7,277		(233		)	3,203,275
Total midstream service assets, net	—		108,462		—			108,462
Total other fixed assets, net	42,046		299		—			42,345
Investment in subsidiaries and equity method investee	163,349		58,288		(163,349		)	58,288
Total other long-term assets	150,430		4,496		—			154,926
Total assets	$	3,898,216	$	197,915	$	(163,582	)	$	3,932,549

Accounts payable	$	38,453	$	555	$	—		$	39,008
Other current liabilities	354,217		31,800		—			386,017
Long-term debt	1,801,295		—		—			1,801,295
Other long-term liabilities	140,817		2,211		—			143,028
Stockholders' equity	1,563,434		163,349		(163,582		)	1,563,201
Total liabilities and stockholders' equity	$	3,898,216	$	197,915	$	(163,582	)	$	3,932,549

Condensed consolidating statement of operations

For the three months ended June 30, 2015

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Total operating revenues	$	125,687		$	59,626	$	(2,982	)	$	182,331
Total operating costs and expenses	629,359			57,390		(2,938		)	683,811
Operating income (loss)	(503,672		)	2,236		(44		)	(501,480		)
Interest expense and other, net	(23,797		)	—		—			(23,797		)
Other non-operating income (expense)	(91,367		)	2,914		(5,150		)	(93,603		)
Income (loss) before income tax	(618,836		)	5,150		(5,194		)	(618,880		)
Deferred income tax benefit	221,846			—		—			221,846
Net income (loss)	$	(396,990	)	$	5,150	$	(5,194	)	$	(397,034	)

Condensed consolidating statement of operations

For the six months ended June 30, 2015

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Total operating revenues	$	243,833		$	94,753	$	(5,561	)	$	333,025
Total operating costs and expenses	772,667			93,765		(5,429		)	861,003
Operating income (loss)	(528,834		)	988		(132		)	(527,978		)
Interest expense and other, net	(56,088		)	—		—			(56,088		)
Other non-operating income (expense)	(30,655		)	2,481		(3,469		)	(31,643		)
Income (loss) before income tax	(615,577		)	3,469		(3,601		)	(615,709		)
Deferred income tax benefit	218,203			—		—			218,203
Net income (loss)	$	(397,374	)	$	3,469	$	(3,601	)	$	(397,506	)

Condensed consolidating statement of operations

For the three months ended June 30, 2014

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Total operating revenues	$	182,872		$	1,542		$	(1,370	)	$	183,044
Total operating costs and expenses	116,596			3,257			(1,370		)	118,483
Operating income (loss)	66,276			(1,715		)	—			64,561
Interest expense and other, net	(30,463		)	—			—			(30,463		)
Other non-operating expense	(65,086		)	(44		)	1,759			(63,371		)
Loss before income tax	(29,273		)	(1,759		)	1,759			(29,273		)
Deferred income tax benefit	10,374			—			—			10,374
Net loss	$	(18,899	)	$	(1,759	)	$	1,759		$	(18,899	)

Condensed consolidating statement of operations

For the six months ended June 30, 2014

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Total operating revenues	$	356,086		$	2,572		$	(2,304	)	$	356,354
Total operating costs and expenses	229,106			4,953			(2,304		)	231,755
Operating income (loss)	126,980			(2,381		)	—			124,599
Interest expense and other, net	(59,366		)	—			—			(59,366		)
Other non-operating expense	(96,993		)	(77		)	2,458			(94,612		)
Loss before income tax	(29,379		)	(2,458		)	2,458			(29,379		)
Deferred income tax benefit	10,267			—			—			10,267
Net loss	$	(19,112	)	$	(2,458	)	$	2,458		$	(19,112	)

Condensed consolidating statement of cash flows

For the six months ended June 30, 2015

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Net cash flows provided by (used in) operating activities	$	136,092		$	(18,318	)	$	(3,469	)	$	114,305
Change in investments between affiliates	(70,472		)	67,003			3,469			—
Capital expenditures and other	(380,961		)	(48,685		)	—			(429,646		)
Net cash flows provided by financing activities	343,613			—			—			343,613
Net increase in cash and cash equivalents	28,272			—			—			28,272
Cash and cash equivalents at beginning of period	29,320			1			—			29,321
Cash and cash equivalents at end of period	$	57,592		$	1		$	—		$	57,593

Condensed consolidating statement of cash flows

For the six months ended June 30, 2014

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Net cash flows provided by (used in) operating activities	$	240,880		$	(3,239	)	$	2,458		$	240,099
Change in investments between affiliates	(44,202		)	46,660			(2,458		)	—
Capital expenditures and other	(435,807		)	(43,421		)	—			(479,228		)
Net cash flows provided by financing activities	440,482			—			—			440,482
Net increase in cash and cash equivalents	201,353			—			—			201,353
Cash and cash equivalents at beginning of period	198,153			—			—			198,153
Cash and cash equivalents at end of period	$	399,506		$	—		$	—		$	399,506

Recently issued accounting standards	6 Months Ended
Recently issued accounting standards	Jun. 30, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently issued accounting standards	Recent accounting pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued new guidance in Topic 330, Inventory, which seeks to simplify the measurement of inventory. The amendments in this update apply to inventory that is measured using all methods excluding last-in, first-out and the retail inventory method. The main substantive provision of this guidance is for an entity to change the subsequent measurement of inventory, within the scope of this guidance, from LCM to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within those fiscal years and should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard. In April 2015, the FASB issued new guidance in Subtopic 835-30, Interest-Imputation of Interest, which seeks to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in an entity's balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this guidance. Entities should apply the amendments on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard. In May 2014, the FASB issued a comprehensive new revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and industry-specific guidance in Subtopic 932-605, Extractive Activities—Oil and Gas—Revenue Recognition. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring those goods or services. The new standard also requires significantly expanded disclosure regarding the qualitative and quantitative information of an entity's nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. The standard allows for several transition methods: (a) a full retrospective adoption in which the standard is applied to all of the periods presented, or (b) a modified retrospective adoption in which the standard is applied only to the most current period presented in the financial statements, including additional disclosures of the standard's application impact to individual financial statement line items. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard.

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

Oil and Gas Exploration and Production Industries Disclosures [Abstract]

Subsequent events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent events

a. Senior Secured Credit Facility

On July 15, 2015, the Company borrowed an additional $10.0 million on the Senior Secured Credit Facility. The outstanding balance under the Senior Secured Credit Facility was $135.0 million at August 5, 2015.

b. Medallion capital call

On July 1, 2015, the Company contributed $27.9 million to fund continued expansion activities on existing portions of Medallion's pipeline infrastructure in order to gather additional third-party production. As of June 30, 2015, the Company had recorded a capital contribution payable in the amount of this capital call.

c. New commodity derivative contract

Subsequent to June 30, 2015, the Company entered into the following new commodity derivative contract:



	Aggregate volumes	Floor Price		Ceiling Price		Contract period
Natural gas (volumes in MMBtu):
Price collar⁽¹⁾	5,475,000	$	3.00	$	4.00	January 2017 - December 2017

_____________________________________________________________


(1)	The associated commodity derivative will be settled based on the Inside FERC index price for West Texas Waha. A $0.5 million deferred premium is associated with this contract.

d. Divestiture of non-strategic assets

On August 3, 2015, the Company entered into an agreement to sell non-strategic, and primarily non-operated properties and the associated production for $64.8 million, subject to closing adjustments. This divestiture is comprised of 5,882 net acres and 119 producing properties, is effective July 1, 2015 and is expected to close on or before September 15, 2015.

Supplementary information

6 Months Ended

Jun. 30, 2015

Supplementary information

Costs incurred in oil and natural gas property acquisition, exploration and development activities

Costs incurred in the acquisition, exploration and development of oil and natural gas assets are presented below for the periods presented:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Property acquisition costs:							—
Evaluated	$	—	$	3,848	$	—	$	3,873
Unevaluated	—		2,645		—		9,925
Exploration	3,841		8,143		8,354		16,642
Development costs⁽¹⁾	110,518		220,240		317,190		408,553
Total costs incurred	$	114,359	$	234,876	$	325,544	$	438,993

____________________________________________________________________________


(1)	The costs incurred for oil and natural gas development activities include $0.5 million and $0.9 million in asset retirement obligations for the three months ended June 30, 2015 and 2014, respectively, and $1.0 million and $1.5 million for the six months ended June 30, 2015 and 2014, respectively.

Basis of presentation and significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Basis of presentation

Use of estimates in the preparation of interim consolidated financial statements

Use of estimates in the preparation of interim unaudited consolidated financial statements

Debt issuance fees, which are stated at cost, net of amortization, are amortized over the life of the respective debt agreements utilizing the effective interest and straight-line methods.

Asset retirement obligations

Fair value measurements

Assets and liabilities recorded at fair value on the unaudited consolidated balance sheets are categorized based on inputs to the valuation techniques as follows:



Level 1—	Assets and liabilities recorded at fair value for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access. Active markets are considered to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—	Assets and liabilities recorded at fair value for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the assets or liabilities. Substantially all of these inputs are observable in the marketplace throughout the full term of the price risk management instrument and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace.

Level 3—	Assets and liabilities recorded at fair value for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs are not corroborated by market data. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability.

Compensation awards

Environmental

Long-lived assets, materials and supplies and line-fill

Employee compensation

Income Taxes

Credit risk

The Company's oil, NGL and natural gas sales are made to a variety of purchasers, including intrastate and interstate pipelines or their marketing affiliates and independent marketing companies. The Company's joint operations accounts receivable are from a number of oil and natural gas companies, partnerships, individuals and others who own interests in the oil and natural gas properties operated by the Company. Management believes that any credit risk imposed by a concentration in the oil and natural gas industry is offset by the creditworthiness of the Company's customer base and industry partners. The Company routinely assesses the recoverability of all material trade and other receivables to determine collectability.

The Company uses derivatives to hedge its exposure to oil and natural gas price volatility. These transactions expose the Company to potential credit risk from its counterparties. In accordance with the Company's standard practice, its derivatives are subject to counterparty netting under agreements governing such derivatives; therefore, the credit risk associated with its derivative counterparties is somewhat mitigated.

Earnings Per Share

Net loss per share

Variable Interest Entity

Variable interest entity

An entity is referred to as a VIE pursuant to accounting guidance for consolidation if it possesses one of the following criteria: (i) it is thinly capitalized, (ii) the residual equity holders do not control the entity, (iii) the equity holders are shielded from the economic losses, (iv) the equity holders do not participate fully in the entity's residual economics, or (v) the entity was established with non-substantive voting interests. In order to determine if a VIE should be consolidated, an entity must determine if it is the primary beneficiary of the VIE. The primary beneficiary of a VIE is that variable interest holder possessing a controlling financial interest through: (i) its power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) its obligation to absorb losses or its right to receive benefits from the VIE that could potentially be significant to the VIE. In order to determine whether the Company owns a variable interest in a VIE, a qualitative analysis is performed of the entity's design, organizational structure, primary decision makers and relevant agreements. The Company continually monitors its VIE exposure to determine if any events have occurred that could cause the primary beneficiary to change.

Basis of presentation and significant accounting policies (Tables)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Schedule of components of accounts receivable

Accounts receivable consist of the following components for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Oil, NGL and natural gas sales	$	46,953	$	57,070
Joint operations, net⁽¹⁾	31,454		33,808
Purchased oil and other product sales	18,614		18,917
Matured derivatives	12,961		16,098
Other	361		1,036
Total	$	110,343	$	126,929

______________________________________________________________________________


(1)	Accounts receivable for joint operations are presented net of an allowance for doubtful accounts of $0.1 million and $0.8 million as of June 30, 2015 and December 31, 2014, respectively.

Schedule of property and equipment

The following table sets forth the Company's property and equipment for the periods presented:



(in thousands)	June 30, 2015			December 31, 2014
Evaluated oil and natural gas properties	$	4,824,127		$	4,446,781
Less accumulated depletion and impairment	(2,211,310		)	(1,586,237		)
Evaluated oil and natural gas properties, net	2,612,817			2,860,544

Unevaluated properties not being amortized	290,929			342,731

Midstream service assets	148,977			117,052
Less accumulated depreciation	(12,115		)	(8,590		)
Midstream service assets, net	136,862			108,462

Depreciable other fixed assets	46,793			42,933
Less accumulated depreciation and amortization	(15,734		)	(13,820		)
Depreciable other fixed assets, net	31,059			29,113

Land	13,613			13,232

Total property and equipment, net	$	3,085,280		$	3,354,082

Schedule of future amortization expense of deferred loan costs

Future amortization expense of debt issuance costs as of June 30, 2015 is as follows:



(in thousands)
Remaining 2015	$	2,227
2016	4,503
2017	4,575
2018	4,349
2019	2,915
Thereafter	7,589
Total	$	26,158

Schedule of other current assets

Other current assets consist of the following components for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Prepaid expenses	$	16,451	$	6,451
Materials and supplies inventory and other	6,535		7,951
Total other current assets	$	22,986	$	14,402

Other Current Liabilities

Other current liabilities consist of the following components for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Accrued interest payable	$	24,088	$	37,689
Lease operating expense payable	17,170		11,963
Capital contribution payable to equity method investee	27,917		—
Other accrued liabilities	32,775		51,380
Total other current liabilities	$	101,950	$	101,032

Schedule of reconciliation of asset retirement obligations liability

The following reconciles the Company's asset retirement obligation liability for the periods presented:



(in thousands)	Six months ended June 30, 2015			Year ended December 31, 2014
Liability at beginning of period	$	32,198		$	21,743
Liabilities added due to acquisitions, drilling, midstream service asset construction and other	1,402			6,370
Accretion expense	1,172			1,787
Liabilities settled upon plugging and abandonment	(178		)	(450		)
Revision of estimates	—			2,748
Liability at end of period	$	34,594		$	32,198

Supplemental cash flow disclosure information and non-cash investing and financing information

The following presents the non-cash investing and supplemental cash flow information for the periods presented:



	Six months ended June 30,
(in thousands)	2015			2014
Non-cash investing information:
Change in accrued capital expenditures	$	(53,209	)	$	13,346
Change in accrued capital contribution to equity method investee	$	27,917		$	15,512
Capitalized asset retirement cost	$	1,402		$	1,591
Supplemental cash flow information:
Capitalized interest	$	178		$	—

Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of carrying amount and fair value of debt instruments

The following table presents the carrying amount and fair values of the Company's debt for the periods presented:



	June 30, 2015				December 31, 2014
(in thousands)	Carrying value		Fair value		Carrying value		Fair value
January 2019 Notes⁽¹⁾	$	—	$	—	$	551,295	$	550,000
January 2022 Notes	450,000		445,499		450,000		396,014
May 2022 Notes	500,000		528,750		500,000		467,529
March 2023 Notes	350,000		362,237		—		—
Senior Secured Credit Facility	125,000		125,009		300,000		300,279
Total value of debt	$	1,425,000	$	1,461,495	$	1,801,295	$	1,713,822

______________________________________________________________________________


(1)	The carrying value of the January 2019 Notes includes the October Notes unamortized bond premium of $1.3 million as of December 31, 2014.

Employee compensation (Tables)

6 Months Ended

Jun. 30, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of outstanding restricted stock awards

The following table reflects the outstanding restricted stock awards for the six months ended June 30, 2015:



(in thousands, except for weighted-average grant date fair values)	Restricted stock awards		Weighted-average grant date fair value (per award)
Outstanding as of December 31, 2014	2,205		$	22.63
Granted	1,873		$	12.01
Forfeited	(443	)	$	21.76
Vested⁽¹⁾	(855	)	$	22.31
Outstanding as of June 30, 2015	2,780		$	15.73

______________________________________________________________________________


(1)	The vesting of certain restricted stock awards could result in federal and state income tax expense or benefit related to the difference between the market price of the common stock at the date of vesting and the date of grant. See Note 7 for additional discussion regarding the tax impact of vested restricted stock awards.

Schedule of stock option award activity

The following table reflects the stock option award activity for the six months ended June 30, 2015:



(in thousands, except for weighted-average exercise price and contractual term)	Restricted stock option awards		Weighted-average exercise price (per option)		Weighted-average remaining contractual term (years)
Outstanding as of December 31, 2014	1,367		$	20.76	8.17
Granted	632		$	11.93
Exercised⁽¹⁾	—		$	—
Expired or canceled	(47	)	$	19.48
Forfeited	(119	)	$	18.03
Outstanding as of June 30, 2015	1,833		$	17.93	8.35
Vested and exercisable at end of period⁽²⁾	580		$	20.76	7.34
Expected to vest at end of period⁽³⁾	1,229		$	16.51	8.83

_____________________________________________________________________________


(1)	The exercise of stock option awards could result in federal and state income tax expense or benefit related to the difference between the fair value of the stock option award at the date of grant and the intrinsic value of the stock option award when exercised. See Note 7 for additional discussion regarding the tax impact of exercised stock option awards.


(2)	The vested and exercisable options as of June 30, 2015 had no aggregate intrinsic value.


(3)	The aggregate intrinsic value of options expected to vest as of June 30, 2015 was $0.4 million.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The assumptions used to estimate the fair value of restricted stock options granted on February 27, 2015 are as follows:



Risk-free interest rate⁽¹⁾	1.70		%
Expected option life⁽²⁾	6.25 years
Expected volatility⁽³⁾	52.59		%
Fair value per stock option	$	6.15

______________________________________________________________________________


(1)	U.S. Treasury yields as of the grant date were utilized for the risk-free interest rate assumption, correlating the treasury yield terms to the expected life of the option.


(2)	As the Company had limited exercise history at the time of valuation relating to terminations and modifications, expected option life assumptions were developed using the simplified method in accordance with GAAP.


(3)	The Company utilized its own volatility in order to develop the expected volatility.

Share Based Compensation Schedule Of Vesting Rights Options



Full years of continuous employment	Incremental percentage of option exercisable		Cumulative percentage of option exercisable
Less than one	—	%	—	%
One	25	%	25	%
Two	25	%	50	%
Three	25	%	75	%
Four	25	%	100	%

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

The following has been recorded to stock-based compensation expense for the periods presented:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Restricted stock award compensation, net of amounts capitalized	$	3,856	$	4,951	$	7,136	$	8,437
Restricted stock option award compensation, net of amounts capitalized	1,142		835		1,815		1,463
Restricted performance share award compensation, net of amounts capitalized	1,270		610		2,105		825
Total stock-based compensation, net of amounts capitalized	$	6,268	$	6,396	$	11,056	$	10,725

Performance Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of assumptions used to estimate the fair value of options granted

The assumptions used to estimate the fair value of the 2015 Performance Share Awards granted on February 27, 2015 are as follows:



Risk-free rate⁽¹⁾	0.95		%
Dividend yield	—		%
Expected volatility⁽²⁾	53.78		%
Laredo stock closing price as of February 27, 2015	$	11.93
Fair value per performance share	$	16.23

______________________________________________________________________________


(1)	The risk-free rate was derived using a zero-coupon yield derived from the Treasury Constant Maturities yield curve on the grant date.


(2)	The Company utilized a peer historical look-back, weighted with the Company's own volatility, to develop the expected volatility.

Income taxes (Tables)

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Schedule of income tax (benefit) expense

The Company is subject to corporate income taxes and the Texas franchise tax. Income tax benefit for the periods presented consisted of the following:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Current taxes	$	—	$	—	$	—	$	—
Deferred taxes	221,846		10,374		218,203		10,267
Income tax benefit	$	221,846	$	10,374	$	218,203	$	10,267

Schedule of reconciliation of income tax expense computed by applying the federal income tax rate of 35% to pre-tax income from operations

Income tax benefit differed from amounts computed by applying the applicable federal income tax rate of 35% to pre-tax earnings as a result of the following:



	Three months ended June 30,						Six months ended June 30,
(in thousands)	2015			2014			2015			2014
Income tax benefit computed by applying the statutory rate	$	216,608		$	10,246		$	215,498		$	10,283
State income tax, net of federal tax benefit and increase in valuation allowance	5,776			347			5,867			1,634
Non-deductible stock-based compensation	(15		)	(123		)	(106		)	(239		)
Stock-based compensation tax deficiency	(381		)	(15		)	(2,838		)	(156		)
Change in deferred tax valuation allowance	(11		)	(34		)	(16		)	(1,112		)
Other items	(131		)	(47		)	(202		)	(143		)
Income tax benefit	$	221,846		$	10,374		$	218,203		$	10,267

Schedule of Income Tax Deficiency from Share-based Compensation

The following table presents the tax impact of these shortfalls for the periods presented:



	Three months ended June 30,						Six months ended June 30,
(in thousands)	2015			2014			2015			2014
Vesting of restricted stock	$	(388	)	$	—		$	(2,889	)	$	(1	)
Exercise of restricted stock options	—			(16		)	—			(158		)
Tax expense due to shortfalls	$	(388	)	$	(16	)	$	(2,889	)	$	(159	)

Schedule of significant components of deferred tax assets and liabilities

Significant components of the Company's net deferred tax asset (liability) for the periods presented are as follows:



(in thousands)	June 30, 2015			December 31, 2014
Oil and natural gas properties, midstream service assets and other fixed assets	$	(322,485	)	$	(424,712	)
Net operating loss carry-forward	433,335			353,724
Derivatives	(77,365		)	(121,365		)
Stock-based compensation	8,645			10,718
Equity method investee	(6,617		)	—
Accrued bonus	2,238			3,256
Capitalized interest	3,014			3,049
Other	1,808			(316		)
Gross deferred tax asset (liability)	42,573			(175,646		)
Valuation allowance	(1,315		)	(1,299		)
Net deferred tax asset (liability)	$	41,258		$	(176,945	)

Schedule of net deferred tax assets and liabilities as classified in the consolidated balance sheets

Deferred tax assets and liabilities were classified in the unaudited consolidated balance sheets as follows for the periods presented:



(in thousands)	June 30, 2015			December 31, 2014
Deferred tax asset	$	86,347		$	—
Deferred tax liability	(45,089		)	(176,945		)
Deferred tax asset (liability)	$	41,258		$	(176,945	)

Derivatives (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of gains and losses on derivative instruments

The following represents cash settlements received (paid) for derivatives for the periods presented:



	Three months ended June 30,					Six months ended June 30,
(in thousands)	2015		2014			2015		2014
Cash settlements received (paid) for matured commodity derivatives	$	46,596	$	(4,420	)	$	109,737	$	(5,851	)
Early terminations of commodity derivatives received	—		—			—		76,660
Cash settlements received (paid) for derivatives, net	$	46,596	$	(4,420	)	$	109,737	$	70,809

Summary of open positions and derivatives in place

The following table summarizes open positions as of June 30, 2015, and represents, as of such date, derivatives in place through December 2017 on annual production volumes:



	Remaining Year 2015			Year 2016		Year 2017
Oil positions:⁽¹⁾
Puts:
Hedged volume (Bbl)	228,000			—		—
Weighted-average price ($/Bbl)	$	75.00		$	—	$	—
Swaps:
Hedged volume (Bbl)	336,000			1,573,800		—
Weighted-average price ($/Bbl)	$	96.56		$	84.82	$	—
Collars:
Hedged volume (Bbl)	3,283,760			3,654,000		2,628,000
Weighted-average floor price ($/Bbl)	$	79.81		$	73.99	$	77.22
Weighted-average ceiling price ($/Bbl)	$	95.41		$	89.63	$	97.22
Totals:
Total volume hedged with ceiling price (Bbl)	3,619,760			5,227,800		2,628,000
Weighted-average ceiling price ($/Bbl)	$	95.51		$	88.18	$	97.22
Total volume hedged with floor price (Bbl)	3,847,760			5,227,800		2,628,000
Weighted-average floor price ($/Bbl)	$	80.99		$	77.25	$	77.22
Basis swaps:⁽²⁾
Hedged volume (Bbl)	1,840,000			—		—
Weighted-average price ($/Bbl)	$	(1.95	)	$	—	$	—
Natural gas positions:⁽³⁾
Collars:
Hedged volume (MMBtu)	14,384,000			18,666,000		—
Weighted-average floor price ($/MMBtu)	$	3.00		$	3.00	$	—
Weighted-average ceiling price ($/MMBtu)	$	5.96		$	5.60	$	—

_______________________________________________________________________________


(1)	Oil derivatives are settled based on the average of the daily settlement prices for the First Nearby Month of the West Texas Intermediate NYMEX Light Sweet Crude Oil Futures Contract for each NYMEX Trading Day during each month ("WTI NYMEX").


(2)	The associated oil basis swaps are settled on the differential between the WTI Midland and the WTI NYMEX index oil prices.


(3)	Natural gas derivatives are settled based on the Inside FERC index price for West Texas Waha for the calculation period.

Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis



(in thousands)	Level 1		Level 2			Level 3			Total gross fair value			Amounts offset			Net fair value presented on the consolidated balance sheets
As of June 30, 2015:
Assets
Current:
Oil derivatives	$	—	$	124,414		$	—		$	124,414		$	(3,100	)	$	121,314
Natural gas derivatives	—		7,554			—			7,554			—			7,554
Oil deferred premiums	—		—			—			—			(4,695		)	(4,695		)
Natural gas deferred premiums	—		—			—			—			(350		)	(350		)
Noncurrent:
Oil derivatives	$	—	$	85,079		$	—		$	85,079		$	—		$	85,079
Natural gas derivatives	—		2,514			—			2,514			—			2,514
Oil deferred premiums	—		—			—			—			(7,042		)	(7,042		)
Natural gas deferred premiums	—		—			—			—			—			—
Liabilities
Current:
Oil derivatives	$	—	$	(3,100	)	$	—		$	(3,100	)	$	3,100		$	—
Natural gas derivatives	—		—			—			—			—			—
Oil deferred premiums	—		—			(4,695		)	(4,695		)	4,695			—
Natural gas deferred premiums	—		—			(350		)	(350		)	350			—
Noncurrent:
Oil derivatives	$	—	$	—		$	—		$	—		$	—		$	—
Natural gas derivatives	—		—			—			—			—			—
Oil deferred premiums	—		—			(7,042		)	(7,042		)	7,042			—
Natural gas deferred premiums	—		—			—			—			—			—
Net derivative position	$	—	$	216,461		$	(12,087	)	$	204,374		$	—		$	204,374



(in thousands)	Level 1		Level 2		Level 3			Total gross fair value			Amounts offset			Net fair value presented on the consolidated balance sheets
As of December 31, 2014:
Assets
Current:
Oil derivatives	$	—	$	190,303	$	—		$	190,303		$	—		$	190,303
Natural gas derivatives	—		9,647		—			9,647			—			9,647
Oil deferred premiums	—		—		—			—			(4,653		)	(4,653		)
Natural gas deferred premiums	—		—		—			—			(696		)	(696		)
Noncurrent:
Oil derivatives	$	—	$	117,963	$	—		$	117,963		$	—		$	117,963
Natural gas derivatives	—		3,646		—			3,646			—			3,646
Oil deferred premiums	—		—		—			—			(3,821		)	(3,821		)
Natural gas deferred premiums	—		—		—			—			—			—
Liabilities
Current:
Oil derivatives	$	—	$	—	$	—		$	—		$	—		$	—
Natural gas derivatives	—		—		—			—			—			—
Oil deferred premiums	—		—		(4,768		)	(4,768		)	4,653			(115		)
Natural gas deferred premiums	—		—		(696		)	(696		)	696			—
Noncurrent:
Oil derivatives	$	—	$	—	$	—		$	—		$	—		$	—
Natural gas derivatives	—		—		—			—			—			—
Oil deferred premiums	—		—		(3,821		)	(3,821		)	3,821			—
Natural gas deferred premiums	—		—		—			—			—			—
Net derivative position	$	—	$	321,559	$	(9,285	)	$	312,274		$	—		$	312,274

Actual cash payments required for deferred premium contracts

The following table presents actual cash payments required for deferred premiums as of June 30, 2015, and for the calendar years following:



(in thousands)
Remaining 2015	$	2,497
2016	4,471
2017	4,967
2018	426
Total	$	12,361

Summary of changes in assets (liability) classified as Level 3 measurements

A summary of the changes in assets classified as Level 3 measurements for the periods presented are as follows:



	Three months ended June 30,						Six months ended June 30,
(in thousands)	2015			2014			2015			2014
Balance of Level 3 at beginning of period	$	(8,882	)	$	(10,790	)	$	(9,285	)	$	(12,684	)
Change in net present value of deferred premiums for derivatives	(45		)	(55		)	(88		)	(120		)
Total purchases and settlements:
Purchases	(4,409		)	—			(5,384		)	—
Settlements	1,249			1,820			2,670			3,779
Balance of Level 3 at end of period	$	(12,087	)	$	(9,025	)	$	(12,087	)	$	(9,025	)

Net income (loss) per share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of calculation of basic and diluted weighted average shares outstanding and net income per share

The following is the calculation of basic and diluted weighted-average common shares outstanding and net loss per share for the periods presented:



	Three months ended June 30,						Six months ended June 30,
(in thousands, except for per share data)	2015			2014			2015			2014
Net loss (numerator):
Net loss—basic and diluted	$	(397,034	)	$	(18,899	)	$	(397,506	)	$	(19,112	)
Weighted-average common shares outstanding (denominator)⁽¹⁾:
Basic	211,078			141,298			186,886			141,183
Diluted	211,078			141,298			186,886			141,183
Net loss per share:
Basic	$	(1.88	)	$	(0.13	)	$	(2.13	)	$	(0.14	)
Diluted	$	(1.88	)	$	(0.13	)	$	(2.13	)	$	(0.14	)

______________________________________________________________________________


(1)	For the three and six months ended June 30, 2015, weighted-average common shares outstanding used in the computation of basic and diluted net loss per share attributable to stockholders has been computed taking into account the March 2015 Equity Offering.

Related Parties (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Related Party Transactions

The following table summarizes items included in the unaudited consolidated statements of operations related to Medallion for the periods presented:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Midstream service revenues	$	390	$	—	$	487	$	—
Minimum volume commitments	3,579		588		5,235		1,104
Interest and other income	—		—		108		—

The following table summarizes items included in the unaudited consolidated balance sheets related to Medallion for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Other assets, net	$	1,229	$	1,110
Other current liabilities	27,917		3,443



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Oil, NGL and natural gas sales	$	34,012	$	23,997	$	53,643	$	46,476

The following table summarizes the amounts included in oil, NGL and natural gas sales receivable from Targa in the unaudited consolidated balance sheets for the periods presented:



(in thousands)	June 30, 2015		December 31, 2014
Accounts receivable, net	$	9,333	$	12,869

Segments (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present selected financial information regarding the Company's operating segments for the periods presented:



(in thousands)	Exploration and production			Midstream and marketing			Intercompany eliminations			Consolidated company
Three months ended June 30, 2015:
Oil, NGL and natural gas sales	$	125,679		$	221		$	(346	)	$	125,554
Midstream service revenues	—			4,362			(2,636		)	1,726
Sales of purchased oil	—			55,051			—			55,051
Total revenues	125,679			59,634			(2,982		)	182,331
Lease operating expenses, including production tax	41,423			—			(2,717		)	38,706
Midstream service expenses, including minimum volume commitments	4,399			998			(221		)	5,176
Costs of purchased oil	—			54,417			—			54,417
General and administrative⁽¹⁾	21,347			1,861			—			23,208
Depletion, depreciation and amortization⁽²⁾	69,987			2,125			—			72,112
Other operating costs and expenses⁽³⁾	490,147			45			—			490,192
Operating income (loss)	$	(501,624	)	$	188		$	(44	)	$	(501,480	)
Other financial information:
Income from equity method investee	$	—		$	2,914		$	—		$	2,914
Interest expense⁽⁴⁾	$	(22,845	)	$	(1,125	)	$	—		$	(23,970	)
Loss on early redemption of debt⁽⁴⁾	$	(30,056	)	$	(1,481	)	$	—		$	(31,537	)
Capital expenditures⁽⁵⁾	$	(133,259	)	$	(13,841	)	$	—		$	(147,100	)
Gross property and equipment⁽⁶⁾	$	5,170,912		$	257,073		$	(365	)	$	5,427,620
Three months ended June 30, 2014:
Oil, NGL and natural gas sales	$	182,872		$	—		$	—		$	182,872
Midstream service revenues	—			1,542			(1,370		)	172
Total revenues	182,872			1,542			(1,370		)	183,044
Lease operating expenses, including production tax	34,709			—			(1,370		)	33,339
Midstream service expenses, including minimum volume commitments	—			2,114			—			2,114
General and administrative⁽¹⁾	27,742			1,810			—			29,552
Depletion, depreciation and amortization⁽²⁾	52,261			795			—			53,056
Other operating costs and expenses⁽³⁾	422			—			—			422
Operating income (loss)	$	67,738		$	(3,177	)	$	—		$	64,561
Other financial information:
Loss from equity method investee	$	—		$	(41	)	$	—		$	(41	)
Interest expense⁽⁴⁾	$	(29,729	)	$	(928	)	$	—		$	(30,657	)
Capital expenditures⁽⁵⁾	$	(229,922	)	$	(15,705	)	$	—		$	(245,627	)
Gross property and equipment⁽⁶⁾	$	3,962,611		$	123,648		$	—		$	4,086,259

_______________________________________________________________________________


(1)	General and administrative costs were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014. However, payroll, deferred compensation, vehicle costs and the capitalization of payroll and deferred compensation associated with land and geology are based on actual costs for each segment for the three months ended June 30, 2015 and 2014.


(2)	Depletion, depreciation and amortization is based on actual costs for each segment with the exception of the allocation of other fixed assets, which is based on the number of employees in the respective segment as of June 30, 2015 and 2014.


(3)	Includes accretion of asset retirement obligations and impairments for the three months ended June 30, 2015 and 2014. These expenses are based on actual costs and are not allocated. See Notes 2.g and 2.n for discussion of the Company's impairments.


(4)	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.


(5)	Capital expenditures excludes acquisition of oil and natural gas properties for the three months ended June 30, 2014.


(6)	Gross property and equipment includes investment in equity method investee totaling $103.2 million and $40.9 million as of June 30, 2015 and 2014, respectively. Other fixed assets were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014.



(in thousands)	Exploration and production				Midstream and marketing				Intercompany eliminations			Consolidated company
Six months ended June 30, 2015:
Oil, NGL and natural gas sales	$	243,890		—	$	333		—	$	(551	)	$	243,672
Midstream service revenues	—			—	8,045			—	(5,010		)	3,035
Sales of purchased oil	—			—	86,318			—	—			86,318
Total revenues	243,890				94,696				(5,561		)	333,025
Lease operating expenses, including production tax	85,268			—	—			—	(5,096		)	80,172
Midstream service expenses, including minimum volume commitments	4,399			—	4,340			—	(333		)	8,406
Costs of purchased oil	—			—	85,617			—	—			85,617
General and administrative⁽¹⁾	41,125			—	3,938			—	—			45,063
Depletion, depreciation and amortization⁽²⁾	140,244			—	3,810			—	—			144,054
Other operating costs and expenses⁽³⁾	497,338			—	353			—	—			497,691
Operating loss	$	(524,484	)		$	(3,362	)		$	(132	)	$	(527,978	)
Other financial information:
Income from equity method investee	$	—		—	$	2,481		—	$	—		$	2,481
Interest expense⁽⁴⁾	$	(53,932	)	—	$	(2,452	)	—	$	—		$	(56,384	)
Loss on early redemption of debt⁽⁴⁾	$	(30,056	)		$	(1,481	)		$	—		$	(31,537	)
Capital expenditures⁽⁵⁾	$	(380,872	)	—	$	(34,314	)	—	$	—		$	(415,186	)
Gross property and equipment⁽⁶⁾	$	5,170,912			$	257,073			$	(365	)	$	5,427,620
Six months ended June 30, 2014:
Oil, NGL and natural gas sales	$	356,086			$	—			$	—		$	356,086
Midstream service revenues	—				2,572				(2,304		)	268
Sales of purchased oil	—				—				—			—
Total revenues	356,086				2,572				(2,304		)	356,354
Lease operating expenses, including production tax	69,878				—				(2,304		)	67,574
Midstream service expenses, including minimum volume commitments	—				3,475				—			3,475
General and administrative⁽¹⁾	54,058				3,148				—			57,206
Depletion, depreciation and amortization⁽²⁾	101,229				1,434				—			102,663
Other operating costs and expenses⁽³⁾	837				—				—			837
Operating income (loss)	$	130,084			$	(5,485	)		$	—		$	124,599
Other financial information:
Loss from equity method investee	$	—			$	(25	)		$	—		$	(25	)
Interest expense⁽⁴⁾	$	(58,103	)		$	(1,540	)		$	—		$	(59,643	)
Capital expenditures⁽⁵⁾	$	(420,331	)		$	(26,225	)		$	—		$	(446,556	)
Gross property and equipment⁽⁶⁾	$	3,962,611			$	123,648			$	—		$	4,086,259

_______________________________________________________________________________


(1)	General and administrative costs were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014. However, payroll, deferred compensation, vehicle costs and the capitalization of payroll and deferred compensation associated with land and geology are based on actual costs for each segment for the six months ended June 30, 2015 and 2014.


(2)	Depletion, depreciation and amortization is based on actual costs for each segment with the exception of the allocation of other fixed assets, which is based on the number of employees in the respective segment as of June 30, 2015 and 2014.


(3)	Includes the following expenses: restructuring expense, accretion of asset retirement obligations and impairments for the six months ended June 30, 2015 and 2014. These expenses are based on actual costs and are not allocated. See Notes 2.g and 2.n for discussion of the Company's impairments.


(4)	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.


(5)	Capital expenditures excludes acquisition of mineral interests and acquisition of oil and natural gas properties for the six months ended June 30, 2014.


(6)	Gross property and equipment includes investment in equity method investee totaling $103.2 million and $40.9 million as of June 30, 2015 and 2014, respectively. Other fixed assets were allocated based on the number of employees in the respective segment as of June 30, 2015 and 2014

Subsidiary guarantees (Tables)

6 Months Ended

Jun. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

Condensed consolidating balance sheet

June 30, 2015

(Unaudited)



(in thousands)	Laredo		Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Accounts receivable, net	$	91,619	$	18,724	$	—		$	110,343
Other current assets	194,806		9,596		—			204,402
Total oil and natural gas properties, net	2,896,862		7,249		(365		)	2,903,746
Total midstream service assets, net	—		136,862		—			136,862
Total other fixed assets, net	44,273		399		—			44,672
Investment in subsidiaries and equity method investee	233,920		103,181		(233,920		)	103,181
Total other long-term assets	194,659		4,164		—			198,823
Total assets	$	3,656,139	$	280,175	$	(234,285	)	$	3,702,029

Accounts payable	$	21,591	$	1,673	$	—		$	23,264
Other current liabilities	244,892		41,918		—			286,810
Long-term debt	1,425,000		—		—			1,425,000
Other long-term liabilities	35,344		2,664		—			38,008
Stockholders' equity	1,929,312		233,920		(234,285		)	1,928,947
Total liabilities and stockholders' equity	$	3,656,139	$	280,175	$	(234,285	)	$	3,702,029

Condensed consolidating balance sheet

December 31, 2014

(Unaudited)



(in thousands)	Laredo		Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Accounts receivable, net	$	107,860	$	19,069	$	—		$	126,929
Other current assets	238,300		24		—			238,324
Total oil and natural gas properties, net	3,196,231		7,277		(233		)	3,203,275
Total midstream service assets, net	—		108,462		—			108,462
Total other fixed assets, net	42,046		299		—			42,345
Investment in subsidiaries and equity method investee	163,349		58,288		(163,349		)	58,288
Total other long-term assets	150,430		4,496		—			154,926
Total assets	$	3,898,216	$	197,915	$	(163,582	)	$	3,932,549

Accounts payable	$	38,453	$	555	$	—		$	39,008
Other current liabilities	354,217		31,800		—			386,017
Long-term debt	1,801,295		—		—			1,801,295
Other long-term liabilities	140,817		2,211		—			143,028
Stockholders' equity	1,563,434		163,349		(163,582		)	1,563,201
Total liabilities and stockholders' equity	$	3,898,216	$	197,915	$	(163,582	)	$	3,932,549

Schedule of condensed consolidating statement of operations

Condensed consolidating statement of operations

For the three months ended June 30, 2015

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Total operating revenues	$	125,687		$	59,626	$	(2,982	)	$	182,331
Total operating costs and expenses	629,359			57,390		(2,938		)	683,811
Operating income (loss)	(503,672		)	2,236		(44		)	(501,480		)
Interest expense and other, net	(23,797		)	—		—			(23,797		)
Other non-operating income (expense)	(91,367		)	2,914		(5,150		)	(93,603		)
Income (loss) before income tax	(618,836		)	5,150		(5,194		)	(618,880		)
Deferred income tax benefit	221,846			—		—			221,846
Net income (loss)	$	(396,990	)	$	5,150	$	(5,194	)	$	(397,034	)

Condensed consolidating statement of operations

For the six months ended June 30, 2015

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors		Intercompany eliminations			Consolidated company
Total operating revenues	$	243,833		$	94,753	$	(5,561	)	$	333,025
Total operating costs and expenses	772,667			93,765		(5,429		)	861,003
Operating income (loss)	(528,834		)	988		(132		)	(527,978		)
Interest expense and other, net	(56,088		)	—		—			(56,088		)
Other non-operating income (expense)	(30,655		)	2,481		(3,469		)	(31,643		)
Income (loss) before income tax	(615,577		)	3,469		(3,601		)	(615,709		)
Deferred income tax benefit	218,203			—		—			218,203
Net income (loss)	$	(397,374	)	$	3,469	$	(3,601	)	$	(397,506	)

Condensed consolidating statement of operations

For the three months ended June 30, 2014

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Total operating revenues	$	182,872		$	1,542		$	(1,370	)	$	183,044
Total operating costs and expenses	116,596			3,257			(1,370		)	118,483
Operating income (loss)	66,276			(1,715		)	—			64,561
Interest expense and other, net	(30,463		)	—			—			(30,463		)
Other non-operating expense	(65,086		)	(44		)	1,759			(63,371		)
Loss before income tax	(29,273		)	(1,759		)	1,759			(29,273		)
Deferred income tax benefit	10,374			—			—			10,374
Net loss	$	(18,899	)	$	(1,759	)	$	1,759		$	(18,899	)

Condensed consolidating statement of operations

For the six months ended June 30, 2014

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Total operating revenues	$	356,086		$	2,572		$	(2,304	)	$	356,354
Total operating costs and expenses	229,106			4,953			(2,304		)	231,755
Operating income (loss)	126,980			(2,381		)	—			124,599
Interest expense and other, net	(59,366		)	—			—			(59,366		)
Other non-operating expense	(96,993		)	(77		)	2,458			(94,612		)
Loss before income tax	(29,379		)	(2,458		)	2,458			(29,379		)
Deferred income tax benefit	10,267			—			—			10,267
Net loss	$	(19,112	)	$	(2,458	)	$	2,458		$	(19,112	)

Schedule of condensed consolidating statement of cash flows

Condensed consolidating statement of cash flows

For the six months ended June 30, 2015

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Net cash flows provided by (used in) operating activities	$	136,092		$	(18,318	)	$	(3,469	)	$	114,305
Change in investments between affiliates	(70,472		)	67,003			3,469			—
Capital expenditures and other	(380,961		)	(48,685		)	—			(429,646		)
Net cash flows provided by financing activities	343,613			—			—			343,613
Net increase in cash and cash equivalents	28,272			—			—			28,272
Cash and cash equivalents at beginning of period	29,320			1			—			29,321
Cash and cash equivalents at end of period	$	57,592		$	1		$	—		$	57,593

Condensed consolidating statement of cash flows

For the six months ended June 30, 2014

(Unaudited)



(in thousands)	Laredo			Subsidiary Guarantors			Intercompany eliminations			Consolidated company
Net cash flows provided by (used in) operating activities	$	240,880		$	(3,239	)	$	2,458		$	240,099
Change in investments between affiliates	(44,202		)	46,660			(2,458		)	—
Capital expenditures and other	(435,807		)	(43,421		)	—			(479,228		)
Net cash flows provided by financing activities	440,482			—			—			440,482
Net increase in cash and cash equivalents	201,353			—			—			201,353
Cash and cash equivalents at beginning of period	198,153			—			—			198,153
Cash and cash equivalents at end of period	$	399,506		$	—		$	—		$	399,506

Subsequent Event (Tables)

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Schedule of Derivative Instruments

Subsequent to June 30, 2015, the Company entered into the following new commodity derivative contract:



	Aggregate volumes	Floor Price		Ceiling Price		Contract period
Natural gas (volumes in MMBtu):
Price collar⁽¹⁾	5,475,000	$	3.00	$	4.00	January 2017 - December 2017

_____________________________________________________________


(1)	The associated commodity derivative will be settled based on the Inside FERC index price for West Texas Waha. A $0.5 million deferred premium is associated with this contract.

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.

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=35706170&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=35706170&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=35706170&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=35706170&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35706170&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=35706170&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
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35706170&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
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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

Oil and Gas Exploration and Production Industries Disclosures [Abstract]

Supplementary information (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of costs incurred in the development of oil and natural gas properties

Costs incurred in the acquisition, exploration and development of oil and natural gas assets are presented below for the periods presented:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2015		2014		2015		2014
Property acquisition costs:							—
Evaluated	$	—	$	3,848	$	—	$	3,873
Unevaluated	—		2,645		—		9,925
Exploration	3,841		8,143		8,354		16,642
Development costs⁽¹⁾	110,518		220,240		317,190		408,553
Total costs incurred	$	114,359	$	234,876	$	325,544	$	438,993

____________________________________________________________________________


(1)	The costs incurred for oil and natural gas development activities include $0.5 million and $0.9 million in asset retirement obligations for the three months ended June 30, 2015 and 2014, respectively, and $1.0 million and $1.5 million for the six months ended June 30, 2015 and 2014, respectively.

Organization (Details)	6 Months Ended
Organization (Details)	Jun. 30, 2015 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	2

Basis of presentation and significant accounting policies - Current assets and liabilities (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Accounts receivable

Term of accounts receivable to be considered as past due (in days)

30 days

Term of past due balances to be reviewed individually for collectability (in days)

90 days

Purchased oil and other product sales

$ 46,953

$ 57,070

Joint operations, net

^[1]

31,454

33,808

18,614

18,917

Matured derivatives

12,961

16,098

Other

361

1,036

Total

110,343

126,929

Allowance for doubtful accounts of accounts receivable for joint operations

100

800

Other current assets

Prepaid expenses

16,451

6,451

Materials and supplies inventory and other

6,535

7,951

Total other current assets

22,986

14,402

Other current liabilities

Accrued interest payable

24,088

37,689

Lease operating expense payable

17,170

11,963

Capital contribution payable to equity method investee

27,917

Other accrued liabilities

32,775

51,380

Total other current liabilities

$ 101,950

$ 101,032

[1]	Accounts receivable for joint operations are presented net of an allowance for doubtful accounts of $0.1 million and $0.8 million as of June 30, 2015 and December 31, 2014, respectively.

Basis of presentation and significant accounting policies - Property and equipment (Details) $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) $ / bbl $ / MMBTU	Jun. 30, 2015 USD ($) $ / Boe	Jun. 30, 2014 $ / Boe	Jun. 30, 2015 USD ($) $ / Boe	Jun. 30, 2014 $ / Boe	Dec. 31, 2014 USD ($)
Property, Plant and Equipment [Line Items]
Evaluated oil and natural gas properties	$ 4,824,127	$ 4,824,127		$ 4,824,127		$ 4,446,781
Less accumulated depletion and impairment	(2,211,310)	(2,211,310)		(2,211,310)		(1,586,237)
Evaluated oil and natural gas properties, net	2,612,817	2,612,817		2,612,817		2,860,544
Unevaluated properties not being amortized	290,929	290,929		290,929		342,731
Midstream service assets	148,977	148,977		148,977		117,052
Other fixed assets	60,406	60,406		60,406		56,165
Total property and equipment, net	3,085,280	$ 3,085,280		$ 3,085,280		3,354,082
Discount rate full cost ceiling (percent)				10.00%
Depletion expense in dollars per BOE \| $ / Boe		16.19	19.55	16.13	19.58
Full cost ceiling impairment before tax benefit				$ 488,000
Full cost ceiling impairment after tax benefit				314,100
Well Services and Midstream Assets
Property, Plant and Equipment [Line Items]
Midstream service assets	148,977	$ 148,977		148,977		117,052
Less accumulated depreciation and amortization	(12,115)	(12,115)		(12,115)		(8,590)
Total property and equipment, net	136,862	136,862		136,862		108,462
Other fixed assets
Property, Plant and Equipment [Line Items]
Other fixed assets	46,793	46,793		46,793		42,933
Less accumulated depreciation and amortization	(15,734)	(15,734)		(15,734)		(13,820)
Total property and equipment, net	31,059	31,059		31,059		29,113
Land
Property, Plant and Equipment [Line Items]
Other fixed assets	$ 13,613	$ 13,613		$ 13,613		$ 13,232
Crude Oil
Property, Plant and Equipment [Line Items]
Full cost method, unweighted arithmetic average rate (dollar per MMBtu and dollar per bbl) \| $ / bbl	68.17
Natural Gas
Property, Plant and Equipment [Line Items]
Full cost method, unweighted arithmetic average rate (dollar per MMBtu and dollar per bbl) \| $ / MMBTU	3.22
Natural Gas Liquids
Property, Plant and Equipment [Line Items]
Full cost method, unweighted arithmetic average rate (dollar per MMBtu and dollar per bbl) \| $ / bbl	26.73

Basis of presentation and significant accounting policies Debt issuance costs and asset retirement obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Debt issuance costs
Capitalization of debt issuance costs			$ 6,759	$ 7,791
Debt issuance costs, net	$ 26,158		26,158		$ 28,463
Accumulated amortization	14,800		14,800		19,400
Write off of deferred debt issuance costs due to early redemption of debt			6,600
Write-off of debt issuance costs	0	$ 0	0	124
Future amortization expense of debt issuance costs
Remaining 2015	2,227		2,227
2016	4,503		4,503
2017	4,575		4,575
2018	4,349		4,349
2019	2,915		2,915
Thereafter	7,589		7,589
Total	26,158		26,158		28,463
Reconciliation of asset retirement obligations liability
Liability at beginning of period			32,198	21,743	21,743
Liabilities added due to acquisitions, drilling, midstream service asset construction and other			1,402		6,370
Accretion expense	593	$ 422	1,172	$ 837	1,787
Liabilities settled upon plugging and abandonment			(178)		(450)
Revision of estimates			0		2,748
Liability at end of period	$ 34,594		$ 34,594		$ 32,198

Basis of presentation and significant accounting policies - Long-lived assets, materials and supplies and line-fill (Details) - Fair Value, Measurements, Nonrecurring - Level 2 - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Materials and Supplies
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense	$ 1.5	$ 2.3
Line-fill
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment expense		$ 0.1

Basis of presentation and significant accounting policies - Supplemental cash flow information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Change in accrued capital expenditures	$ (53,209)	$ 13,346
Change in accrued capital contribution to equity method investee	27,917	15,512
Capitalized asset retirement cost	1,402	1,591
Capitalized interest	$ 178	$ 0

Equity Offering (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	6 Months Ended
	Mar. 05, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Class of Stock [Line Items]
Proceeds from issuance of common stock, net of offering costs			$ 754,163	$ 0
Common Stock
Class of Stock [Line Items]
Equity issuance, net of offering costs (in shares)	69,000,000	0		0
Share price (dollars per share)	$ 11.05
Proceeds from issuance of common stock, net of offering costs	$ 754,200
Common Stock \| Warburg Pincus LLC
Class of Stock [Line Items]
Equity issuance, net of offering costs (in shares)	29,800,000
Ownership percentage held by largest equity investor (percentage)	41.00%

Acquisitions Acquisition (Details) $ in Thousands					6 Months Ended
Acquisitions Acquisition (Details) $ in Thousands	Aug. 28, 2014 USD ($) a	Jun. 23, 2014 USD ($) a	Jun. 11, 2014 USD ($) a	Feb. 25, 2014 USD ($) a	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)
Significant Acquisitions and Disposals [Line Items]
Acquisition of mineral interests					$ 0	$ 7,305
Acquisition of oil and natural gas properties					$ 0	$ 6,493
Midland Basin
Significant Acquisitions and Disposals [Line Items]
Area of Land \| a	8,156
Payments to Acquire Property, Plant, and Equipment	$ 192,500
Proved and Unproved Oil and Natural Gas Properties in Glasscock County Texas
Significant Acquisitions and Disposals [Line Items]
Area of Land \| a		24		278
Acquisition of mineral interests				$ 7,300
Acquisition of oil and natural gas properties		$ 1,800
Proved and Unproved Oil and Natural Gas Properties in Reagan County Texas
Significant Acquisitions and Disposals [Line Items]
Area of Land \| a			460
Acquisition of oil and natural gas properties			$ 4,700

Debt -March 2023 Notes (Details) - Senior Notes - March 2023 Notes	Mar. 18, 2015 USD ($)
Debt Instrument [Line Items]
Face amount of debt	$ 350,000,000.0
Interest rate (as a percent)	6.25%
Net proceeds from offering	$ 343,600,000
Prior to March 15, 2016
Debt Instrument [Line Items]
Debt instrument, redemption period, start date	Mar. 18, 2015
Debt instrument, redemption period, end date	Mar. 15, 2016
Debt instrument, redemption price percentage	110.00%
Prior to March 15, 2018
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount that can be redeemed by equity offering	35.00%
Debt instrument redeemed by equity offering redemption price (percentage)	106.25%
Debt instrument redemption principal amount outstanding threshold (percentage)	65.00%
Debt instrument redemption principal amount outstanding threshold (in days)	180 days
Debt instrument, redemption period, start date	Mar. 18, 2015
Debt instrument, redemption period, end date	Mar. 15, 2018

Debt - Details of debt outstanding (Details) - USD ($)

3 Months Ended

6 Months Ended

Apr. 06, 2015

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Jan. 23, 2014

Apr. 27, 2012

Oct. 19, 2011

Jan. 20, 2011

Debt

Gains (losses) on extinguishment of debt

$ (31,537,000)

^[1]

$ 0

$ (31,537,000)

^[2]

$ 0

Debt

$ 450,000,000.0

Debt

$ 500,000,000

January 2019 Notes Issued January 2011

7.375%

Debt

Debt issued

$ 350,000,000.0

January 2019 Notes Issued October 2011

9.50%

Debt

Debt issued

$ 200,000,000.0

Senior Secured Credit Facility

9.50%

Debt

Line of Credit Facility, Aggregate Elected Commitment

1.6875%

Borrowing capacity

$ 2,000,000,000.0

Borrowing capacity

1,250,000,000.00

1,000,000,000.0

Outstanding amount

125,000,000

$ 125,000,000

Minimum | Senior Secured Credit Facility

Debt

Line of credit facility, unused capacity, commitment fee percentage

0.375%

Maximum | Senior Secured Credit Facility

Debt

Line of credit facility, unused capacity, commitment fee percentage

0.50%

Senior Notes | January 2022 Notes

Debt

Senior Notes | January 2019 Notes

5.625%

Debt

Repurchased face amount

$ 550,000,000

Debt instrument, redemption price percentage

104.75%

Gains (losses) on extinguishment of debt

$ (31,500,000)

Letter of Credit | Senior Secured Credit Facility

Debt

Borrowing capacity

20,000,000.0

$ 20,000,000.0

Outstanding amount

$ 0

[1]	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.
[2]	Interest expense and loss on early redemption of debt are allocated based on gross property and equipment and total contributions to the Company's equity method investee as of June 30, 2015 and 2014.

Debt - Fair value of debt (Details) - USD ($)
$ in Thousands

Jun. 30, 2015

Dec. 31, 2014

Carrying value

$ 1,425,000

$ 1,801,295

Fair value

January 2019 Notes Issued October 2011

1,461,495

1,713,822

Senior Notes | January 2019 Notes | Carrying value

Unamortized bond premium

1,300

Senior Notes | January 2019 Notes | Fair value

^[1]

551,295

Senior Notes | January 2022 Notes | Carrying value

^[1]

550,000

Senior Notes | January 2022 Notes | Fair value

450,000

Senior Notes | May 2022 Notes | Carrying value

445,499

396,014

Senior Notes | May 2022 Notes | Fair value

500,000

Senior Notes | March 2023 Notes | Carrying value

528,750

467,529

Senior Notes | March 2023 Notes | Fair value

350,000

Senior Secured Credit Facility | Carrying value

362,237

Senior Secured Credit Facility | Fair value

125,000

300,000

Outstanding at the beginning of the period (in shares) | shares

$ 125,009

$ 300,279

[1]	The carrying value of the January 2019 Notes includes the October Notes unamortized bond premium of $1.3 million as of December 31, 2014.

Employee compensation (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) shares	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) anniversary installment $ / shares shares	Jun. 30, 2014 USD ($)	Dec. 31, 2014 shares
Equity and stock-based compensation
Net stock-based compensation expense	$ 6,268	$ 6,396	$ 11,056	$ 10,725
Long-Term Incentive Plan
Equity and stock-based compensation
Shares available for issuance \| shares	10,000,000.0		10,000,000.0
Restricted Stock Awards
Equity and stock-based compensation
Stock-based compensation not yet recognized	$ 32,100		$ 32,100
Stock-based compensation not yet recognized, period for recognition			2 years 26 days
Outstanding shares \| shares	2,780,000		2,780,000		2,205,000
Net stock-based compensation expense	$ 3,856	4,951	$ 7,136	8,437
Employee Stock Option
Equity and stock-based compensation
Stock-based compensation not yet recognized, period for recognition			2 years 8 months 5 days
Requisite service period of the awards			4 years
Share-based compensation, not yet recognized, stock options	9,200		$ 9,200
Share-based compensation, expiration period			10 years
Share-based compensation arrangement by share based payment award, vested awards, expiration period, termination caused by death			1 year
Share-based compensation arrangement by share based payment award, vested awards, expiration period, termination without cause			90 days
Net stock-based compensation expense	1,142	835	$ 1,815	1,463
Employee Stock Option \| Long-Term Incentive Plan
Equity and stock-based compensation
Number of installments over which awards vest and are exercisable \| installment			4
Number of anniversaries over which awards vest and are exercisable \| anniversary			4
Performance Unit Awards
Equity and stock-based compensation
Equity instruments other than options, cash paid per unit \| $ / shares			$ 100
Net stock-based compensation expense	$ 700	$ 1,100	$ 1,700	$ 1,200
Reorganization Grant Date \| Restricted Stock Awards
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			20.00%
Annually After Reorganization Grant Date \| Restricted Stock Awards
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			20.00%
One Year From Grant Date \| Restricted Stock Awards \| Long-Term Incentive Plan
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			33.00%
Two Years From Grant Date \| Restricted Stock Awards \| Long-Term Incentive Plan
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			33.00%
Three Years From Grant Date \| Restricted Stock Awards \| Long-Term Incentive Plan
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			34.00%
Vesting In Two Years \| Restricted Stock Awards \| Long-Term Incentive Plan
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			50.00%
Vesting In Three Years \| Restricted Stock Awards \| Long-Term Incentive Plan
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			50.00%
One Year From Grant Date \| Restricted Stock Awards
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			100.00%
Three Years From Grant Date \| Restricted Stock Awards
Equity and stock-based compensation
Share-based compensation arrangement by share-based payment award, award vesting rights (percentage)			100.00%
February 15, 2013 \| Performance Unit Awards
Equity and stock-based compensation
Outstanding shares \| shares	44,481		44,481
February 3, 2012 \| Performance Unit Awards
Equity and stock-based compensation
Outstanding shares \| shares	27,381		27,381

Employee compensation Restricted Stock Option Awards (Details 1) - Restricted Stock Awards
shares in Thousands

6 Months Ended

Jun. 30, 2015

$ / shares

Restricted stock awards

2,205

Granted (in shares) | shares

1,873

Forfeited (in shares) | shares

(443)

Vested (in shares) | shares

(855)

^[1]

Outstanding at the end of the period (in shares) | shares

2,780

Weighted-average grant date fair value (per award)

Outstanding at the beginning of the period (in dollars per share) | $ / shares

$ 22.63

Granted (in dollars per share) | $ / shares

12.01

Forfeited (in dollars per share) | $ / shares

21.76

Vested (in dollars per share) | $ / shares

22.31

^[1]

Outstanding at the end of the period (in dollars per share) | $ / shares

$ 15.73

[1]

The vesting of certain restricted stock awards could result in federal and state income tax expense or benefit related to the difference between the market price of the common stock at the date of vesting and the date of grant. See Note 7 for additional discussion regarding the tax impact of vested restricted stock awards.

Employee compensation Restricted Stock Option Awards (Details 2) - Employee Stock Option - USD ($)
$ / shares in Units, shares in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Restricted stock option awards

Outstanding at the beginning of the period (in shares)

1,367

Granted (in shares)

632

Exercised (in shares)

^[1]

Expired or canceled (in shares)

(47)

Forfeited (in shares)

(119)

Outstanding at the end of the period (in shares)

1,833

1,367

Vested and exercisable at end of period (in shares)

^[2]

580

Vested, exercisable, and expected to vest at end of period (in shares)

^[3]

1,229

Weighted-average exercise price (per option)

Outstanding at the beginning of the period (in dollars per share)

$ 20.76

Granted (in dollars per share)

11.93

Exercised (in dollars per share)

^[1]

0.00

Expired or cancelled (in dollars per share)

19.48

Forfeited (in dollars per share)

18.03

Outstanding at end of the period (in dollars per share)

17.93

$ 20.76

Exercisable, weighted average exercise price (in dollars per share)

^[2]

20.76

Vested, exercisable, and expected to vest at end of period, weighted average exercise price (in dollars per share)

^[3]

$ 16.51

Weighted-average remaining contractual term (years)

SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2

8 years 4 months 5 days

8 years 1 month 30 days

Granted

SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2

8 years 4 months 5 days

8 years 1 month 30 days

Vested and exercisable at the end of the period

^[2]

7 years 4 months 2 days

Vested, exercisable, and expected to vest at end of period

^[3]

8 years 9 months 29 days

Aggregate intrinsic value of vested and exercisable options

$ 0

Aggregate intrinsic value of vested, exercisable and expected to vest options

$ 400,000

[1]	The exercise of stock option awards could result in federal and state income tax expense or benefit related to the difference between the fair value of the stock option award at the date of grant and the intrinsic value of the stock option award when exercised. See Note 7 for additional discussion regarding the tax impact of exercised stock option awards.
[2]	The vested and exercisable options as of June 30, 2015 had no aggregate intrinsic value.
[3]	The aggregate intrinsic value of options expected to vest as of June 30, 2015 was $0.4 million.

Employee compensation Restricted Stock Option Awards (Details 3) - Employee Stock Option

Feb. 27, 2015

$ / shares

Assumptions used to estimate the fair value of options granted

Risk-free interest rate (as a percent)

1.70%

^[1]

Expected option life (in years)

6 years 3 months

^[2]

Expected volatility (as a percent)

52.59%

^[3]

Fair value per option (in dollars per share)

$ 6.15

[1]	U.S. Treasury yields as of the grant date were utilized for the risk-free interest rate assumption, correlating the treasury yield terms to the expected life of the option.
[2]	As the Company had limited exercise history at the time of valuation relating to terminations and modifications, expected option life assumptions were developed using the simplified method in accordance with GAAP.
[3]	The Company utilized its own volatility in order to develop the expected volatility.

Employee compensation Restricted Stock Option Awards (Details 4) - Employee Stock Option	6 Months Ended
	Jun. 30, 2015
Less than one year of continuous employment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental percentage of option exercisable	0.00%
Cumulative percentage of option exercisable	0.00%
One year of continuous employment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental percentage of option exercisable	25.00%
Cumulative percentage of option exercisable	25.00%
Two years of continuous employment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental percentage of option exercisable	25.00%
Cumulative percentage of option exercisable	50.00%
Three years of continuous employment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental percentage of option exercisable	25.00%
Cumulative percentage of option exercisable	75.00%
Four years of continuous employment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental percentage of option exercisable	25.00%
Cumulative percentage of option exercisable	100.00%

Employee compensation Performance Share Awards (Details) - Performance Shares - USD ($)
$ / shares in Units, $ in Millions

6 Months Ended

Feb. 27, 2015

Feb. 27, 2014

Jun. 30, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Risk-free interest rate (as a percent)

^[1]

0.95%

Dividend yield

0.00%

Expected volatility (as a percent)

^[2]

53.78%

Laredo stock closing price as of February 27, 2015

$ 11.93

Fair value per performance share

$ 16.23

February 2015 Performance Share Awards | February 27, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Requisite service period of the awards

3 years

Outstanding shares

602,501

February 2014 Performance Share Awards | February 27, 2014

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Outstanding shares

271,667

February 2014 and February 2015 Performance Share Awards | February 27 2014 and February 27, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Requisite service period of the awards

3 years

Stock-based compensation not yet recognized

$ 12.8

Stock-based compensation not yet recognized, period for recognition

2 years 3 months 30 days

[1]	The risk-free rate was derived using a zero-coupon yield derived from the Treasury Constant Maturities yield curve on the grant date.
[2]	The Company utilized a peer historical look-back, weighted with the Company's own volatility, to develop the expected volatility.

Employee compensation - Stock-based Compensation Award Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation, net of amounts capitalized	$ 6,268	$ 6,396	$ 11,056	$ 10,725
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation, net of amounts capitalized	3,856	4,951	7,136	8,437
Restricted stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation, net of amounts capitalized	1,142	835	1,815	1,463
Restricted Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation, net of amounts capitalized	$ 1,270	$ 610	$ 2,105	$ 825

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Current taxes	$ 0	$ 0	$ 0	$ 0
Deferred taxes	221,846	10,374	218,203	10,267
Total income tax expense	$ 221,846	$ 10,374	$ 218,203	$ 10,267

Income taxes Income taxes -(Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Income tax benefit computed by applying the statutory rate	$ 216,608	$ 10,246	$ 215,498	$ 10,283
State income tax, net of federal tax benefit and increase in valuation allowance	5,776	347	5,867	1,634
Non-deductible stock-based compensation	(15)	(123)	(106)	(239)
Stock-based compensation tax deficiency	(381)	(15)	(2,838)	(156)
Change in deferred tax valuation allowance	(11)	(34)	(16)	(1,112)
Other items	(131)	(47)	(202)	(143)
Total income tax expense	$ 221,846	$ 10,374	$ 218,203	$ 10,267

Income taxes Income taxes -(Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred income tax stock-based compensation tax deficiency	$ (388)	$ (16)	$ (2,889)	$ (159)
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred income tax stock-based compensation tax deficiency	(388)	0	(2,889)	(1)
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred income tax stock-based compensation tax deficiency	$ 0	$ (16)	$ 0	$ (158)

Income taxes - (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Significant components of deferred tax assets
Oil and natural gas properties, midstream service assets and other fixed assets	$ (322,485)	$ (424,712)
Net operating loss carry-forward	433,335	353,724
Derivatives	(77,365)	(121,365)
Stock-based compensation	8,645	10,718
Equity method investee	(6,617)	0
Accrued bonus	2,238	3,256
Capitalized interest	3,014	3,049
Other	1,808
Other		(316)
Gross deferred tax asset (liability)	42,573	(175,646)
Valuation allowance	(1,315)	(1,299)
Net deferred tax asset (liability)	41,258
Net deferred tax asset (liability)		(176,945)
Net deferred tax assets and liabilities
Deferred tax asset	86,347	0
Deferred tax liability	$ (45,089)	$ (176,945)

Income taxes - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Operating loss carry-forward
Unrecognized Tax Benefits	$ 0		$ 0
Effective income tax rate, federal (percent)	35.00%
Effective income tax rate (percent)	36.00%	35.00%	35.00%	35.00%
Deferred income tax stock-based compensation tax deficiency	$ (388,000)	$ (16,000)	$ (2,889,000)	$ (159,000)
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation, Potential Amount			4,500,000
Deferred tax assets, valuation allowance	1,315,000		1,315,000		$ 1,299,000
Federal
Operating loss carry-forward
Net operating loss carry-forwards	1,200,000,000		1,200,000,000
State
Operating loss carry-forward
Net operating loss carry-forwards	71,900,000		71,900,000
Charitable Contribution Carryforward
Operating loss carry-forward
Net operating loss carry-forwards	3,700,000		3,700,000
Deferred tax assets, valuation allowance	1,300,000		1,300,000
Employee Stock Option
Operating loss carry-forward
Deferred income tax stock-based compensation tax deficiency	$ 0	$ (16,000)	$ 0	$ (158,000)

Derivatives - Gain (loss) on derivatives (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative financial instruments
Cash settlements received (paid) for matured commodity derivatives				$ 109,737	$ (5,851)
Early terminations of commodity derivatives received			$ 76,700	0	76,660
Derivatives not designated as hedges
Derivative financial instruments
Cash settlements received (paid) for derivatives, net	$ 46,596	$ (4,420)		109,737	70,809
Commodity derivatives \| Derivatives not designated as hedges
Derivative financial instruments
Cash settlements received (paid) for matured commodity derivatives	46,596	(4,420)		109,737	(5,851)
Early terminations of commodity derivatives received	$ 0	$ 0		$ 0	$ 76,660

Derivatives - Derivative positions (Details)
$ in Thousands

3 Months Ended

6 Months Ended

Mar. 31, 2014

USD ($)

Jun. 30, 2015

USD ($)

MMBTU

contract

$ / bbl

$ / MMBTU

bbl

Jun. 30, 2014

USD ($)

Derivative financial instruments

Cash settlements received for early terminations of derivatives, net | $

$ 76,700

$ 0

$ 76,660

Derivatives not designated as hedges

Derivative financial instruments

Number of open derivative contracts | contract

Crude Oil | Derivatives not designated as hedges

Weighted-average floor price ($/bbl and $/MMbtu), Remaining Year 2015 | $ / bbl

80.99

Weighted-average floor price ($/bbl and $/MMbtu), Year 2016 | $ / bbl

77.25

Weighted-average floor price ($/bbl and $/MMbtu), Year 2017 | $ / bbl

77.22

Weighted-average ceiling price ($/bbl and $/MMbtu), Remaining Year 2015 | $ / bbl

95.51

Weighted-average ceiling price ($/bbl and $/MMbtu), Year 2016 | $ / bbl

88.18

Weighted-average ceiling price ($/bbl and $/MMbtu), Year 2017 | $ / bbl

97.22

Total volume hedged with ceiling price (Bbl) - Remaining Year 2015 | bbl

3,619,760

Total volume hedged with ceiling price (Bbl) - Year 2016 | bbl

5,227,800

Total volume hedged with ceiling price (Bbl) - Year 2017 | bbl

2,628,000

Total volume hedged with floor price (Bbl) - Remaining Year 2015 | bbl

3,847,760

Total volume hedged with floor price (Bbl) - Year 2016 | bbl

5,227,800

Total volume hedged with floor price (Bbl) - Year 2017 | bbl

2,628,000

Crude Oil | Derivatives not designated as hedges | Puts

^[1]

228,000

^[1]

Weighted-average price ($/bbl), Remaining Year 2015 | $ / bbl

^[1]

^[1]

75.00

Weighted-average price ($/bbl), Year 2016 | $ / bbl

^[1]

0.00

Weighted-average price ($/bbl), Year 2017 | $ / bbl

^[1]

0.00

Crude Oil | Derivatives not designated as hedges | Swaps

^[1]

336,000

^[1]

1,573,800

Weighted-average price ($/bbl), Remaining Year 2015 | $ / bbl

^[1]

^[1]

96.56

Weighted-average price ($/bbl), Year 2016 | $ / bbl

^[1]

84.82

Crude Oil | Derivatives not designated as hedges | Collars

^[1]

3,283,760

^[1]

3,654,000

Weighted-average floor price ($/bbl and $/MMbtu), Remaining Year 2015 | $ / bbl

^[1]

2,628,000

^[1]

79.81

Weighted-average floor price ($/bbl and $/MMbtu), Year 2016 | $ / bbl

^[1]

73.99

Weighted-average floor price ($/bbl and $/MMbtu), Year 2017 | $ / bbl

^[1]

77.22

Weighted-average ceiling price ($/bbl and $/MMbtu), Remaining Year 2015 | $ / bbl

^[1]

95.41

Weighted-average ceiling price ($/bbl and $/MMbtu), Year 2016 | $ / bbl

^[1]

89.63

Weighted-average ceiling price ($/bbl and $/MMbtu), Year 2017 | $ / bbl

^[1]

97.22

Crude Oil | Derivatives not designated as hedges | Oil Basis Swaps

^[2]

1,840,000

^[2]

Weighted-average price ($/bbl), Remaining Year 2015 | $ / bbl

^[2]

^[2]

(1.95)

Natural Gas | Derivatives not designated as hedges | Collars

Hedged volume (MMBtu), Remaining Year 2015 | MMBTU

^[3]

14,384,000

Hedged volume (MMBtu), Year 2016 | MMBTU

^[3]

18,666,000

Hedged volume (MMBtu), Year 2017 | MMBTU

^[3]

Weighted-average floor price ($/bbl and $/MMbtu), Remaining Year 2015 | $ / MMBTU

^[3]

3.00

Weighted-average floor price ($/bbl and $/MMbtu), Year 2016 | $ / MMBTU

^[3]

3.00

Weighted-average floor price ($/bbl and $/MMbtu), Year 2017 | $ / MMBTU

^[3]

0.00

Weighted-average ceiling price ($/bbl and $/MMbtu), Remaining Year 2015 | $ / MMBTU

^[3]

5.96

Weighted-average ceiling price ($/bbl and $/MMbtu), Year 2016 | $ / MMBTU

^[3]

5.60

Weighted-average ceiling price ($/bbl and $/MMbtu), Year 2017 | $ / MMBTU

^[3]

0.00

[1]	Oil derivatives are settled based on the average of the daily settlement prices for the First Nearby Month of the West Texas Intermediate NYMEX Light Sweet Crude Oil Futures Contract for each NYMEX Trading Day during each month ("WTI NYMEX").
[2]	The associated oil basis swaps are settled on the differential between the WTI Midland and the WTI NYMEX index oil prices.
[3]	Natural gas derivatives are settled based on the Inside FERC index price for West Texas Waha for the calculation period.

Fair value measurements - Fair value hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets, Fair Value Disclosure [Abstract]
Derivative asset, current	$ 123,823	$ 194,601
Derivative asset, noncurrent	80,551	117,788
Liabilities, Fair Value Disclosure [Abstract]
Derivative liability, current	0	(115)
Crude Oil \| Recurring \| Oil derivatives
Assets, Fair Value Disclosure [Abstract]
Amounts offset, current	(3,100)	0
Derivative asset, current	121,314	190,303
Amount offset, current	0	0
Derivative asset, noncurrent	85,079	117,963
Liabilities, Fair Value Disclosure [Abstract]
Amount offset, current	3,100	0
Derivative liability, current	0	0
Amount offset, noncurrent	0	0
Derivative liability, noncurrent	0	0
Crude Oil \| Recurring \| Oil deferred premiums
Assets, Fair Value Disclosure [Abstract]
Amounts offset, current	(4,695)	(4,653)
Derivative asset, current	(4,695)	(4,653)
Amount offset, current	(7,042)	(3,821)
Derivative asset, noncurrent	(7,042)	(3,821)
Liabilities, Fair Value Disclosure [Abstract]
Amount offset, current	4,695	4,653
Derivative liability, current	0	(115)
Amount offset, noncurrent	7,042	3,821
Derivative liability, noncurrent	0	0
Crude Oil \| Recurring \| Level 1 \| Oil derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Crude Oil \| Recurring \| Level 1 \| Oil deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Crude Oil \| Recurring \| Level 2 \| Oil derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	124,414	190,303
Derivative assets before netting, noncurrent	85,079	117,963
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	(3,100)	0
Derivative liabilities before netting, noncurrent	0	0
Crude Oil \| Recurring \| Level 2 \| Oil deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Crude Oil \| Recurring \| Level 3 \| Oil derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Crude Oil \| Recurring \| Level 3 \| Oil deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	(4,695)	(4,768)
Derivative liabilities before netting, noncurrent	(7,042)	(3,821)
Natural Gas \| Recurring
Liabilities, Fair Value Disclosure [Abstract]
Net derivative position	204,374	312,274
Natural Gas \| Recurring \| Natural gas derivatives
Assets, Fair Value Disclosure [Abstract]
Amounts offset, current	0	0
Derivative asset, current	7,554	9,647
Amount offset, current	0	0
Derivative asset, noncurrent	2,514	3,646
Liabilities, Fair Value Disclosure [Abstract]
Amount offset, current	0	0
Derivative liability, current	0	0
Amount offset, noncurrent	0	0
Derivative liability, noncurrent	0	0
Natural Gas \| Recurring \| Natural gas deferred premiums
Assets, Fair Value Disclosure [Abstract]
Amounts offset, current	(350)	(696)
Derivative asset, current	(350)	(696)
Amount offset, current	0	0
Derivative asset, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Amount offset, current	350	696
Derivative liability, current	0	0
Amount offset, noncurrent	0	0
Derivative liability, noncurrent	0	0
Natural Gas \| Recurring \| Level 1
Liabilities, Fair Value Disclosure [Abstract]
Net derivative position	0	0
Natural Gas \| Recurring \| Level 1 \| Natural gas derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Natural Gas \| Recurring \| Level 1 \| Natural gas deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Natural Gas \| Recurring \| Level 2
Liabilities, Fair Value Disclosure [Abstract]
Net derivative position	216,461	321,559
Natural Gas \| Recurring \| Level 2 \| Natural gas derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	7,554	9,647
Derivative assets before netting, noncurrent	2,514	3,646
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Natural Gas \| Recurring \| Level 2 \| Natural gas deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Natural Gas \| Recurring \| Level 3
Liabilities, Fair Value Disclosure [Abstract]
Net derivative position	(12,087)	(9,285)
Natural Gas \| Recurring \| Level 3 \| Natural gas derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Natural Gas \| Recurring \| Level 3 \| Natural gas deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	(350)	(696)
Derivative liabilities before netting, noncurrent	0	0
Fair value \| Crude Oil \| Recurring \| Oil derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	124,414	190,303
Derivative assets before netting, noncurrent	85,079	117,963
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	(3,100)	0
Derivative liabilities before netting, noncurrent	0	0
Fair value \| Crude Oil \| Recurring \| Oil deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	(4,695)	(4,768)
Derivative liabilities before netting, noncurrent	(7,042)	(3,821)
Fair value \| Natural Gas \| Recurring
Liabilities, Fair Value Disclosure [Abstract]
Net derivative position	204,374	312,274
Fair value \| Natural Gas \| Recurring \| Natural gas derivatives
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	7,554	9,647
Derivative assets before netting, noncurrent	2,514	3,646
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	0	0
Derivative liabilities before netting, noncurrent	0	0
Fair value \| Natural Gas \| Recurring \| Natural gas deferred premiums
Assets, Fair Value Disclosure [Abstract]
Derivative assets before netting, current	0	0
Derivative assets before netting, noncurrent	0	0
Liabilities, Fair Value Disclosure [Abstract]
Derivative liabilities before netting, current	(350)	(696)
Derivative liabilities before netting, noncurrent	$ 0	$ 0

Fair value measurements - Cash payments required for deferred premium contracts (Details) $ in Thousands	Jun. 30, 2015 USD ($)
Fair Value Disclosures [Abstract]
Remaining 2015	$ 2,497
2016	4,471
2017	4,967
2018	426
Total	$ 12,361

Fair value measurements - Summary of changes in assets (liabilities) classified as Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in assets classified as Level 3 measurements
Change in net present value of deferred premiums for derivatives			$ 88	$ 120
Deferred Premiums
Changes in assets classified as Level 3 measurements
Balance of Level 3 at beginning of period	$ (8,882)	$ (10,790)	(9,285)	(12,684)
Change in net present value of deferred premiums for derivatives	(45)	(55)	(88)	(120)
Purchases	(4,409)	0	(5,384)	0
Settlements	1,249	1,820	2,670	3,779
Balance of Level 3 at end of period	$ (12,087)	$ (9,025)	$ (12,087)	$ (9,025)

Fair value measurements -Narrative (Details)	6 Months Ended
Fair value measurements -Narrative (Details)	Jun. 30, 2015
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	1.69%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	3.56%

Commitments and contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
Commitments and contingencies (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015
Unrecorded Unconditional Purchase Obligation [Line Items]
Well service expense	$ 500,000	$ 0	$ 0
Drilling Contracts
Unrecorded Unconditional Purchase Obligation [Line Items]
Future commitments			$ 27,000,000

Restructuring (Details) $ in Thousands		3 Months Ended		6 Months Ended
Restructuring (Details) $ in Thousands	Jan. 20, 2015 employee	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring expenses \| $		$ 0	$ 0	$ 6,042	$ 0
Reduction in Force (RIF)
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated \| employee	75
Expected number of consultant positions eliminated \| employee	24
Restructuring expenses \| $				$ 6,000

Net income (loss) per share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Earnings Per Share [Abstract]

Net loss—basic and diluted

$ (397,034)

$ (18,899)

$ (397,506)

$ (19,112)

Weighted average shares-basic (in shares)

^[1]

211,078

141,298

186,886

141,183

Weighted average shares-diluted (in shares)

^[1]

211,078

141,298

186,886

141,183

Net income (loss), basic (in dollars per share)

$ (1.88)

$ (0.13)

$ (2.13)

$ (0.14)

Net income (loss), diluted (in dollars per share)

$ (1.88)

$ (0.13)

$ (2.13)

$ (0.14)

[1]	For the three and six months ended June 30, 2015, weighted-average common shares outstanding used in the computation of basic and diluted net loss per share attributable to stockholders has been computed taking into account the March 2015 Equity Offering.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

Variable interest entity (Details) - USD ($)	3 Months Ended		6 Months Ended
Variable interest entity (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule of Equity Method Investments [Line Items]
Investment in equity method investee			$ 14,495,000	$ 19,471,000
Minimum volume commitments	$ 3,579,000	$ 588,000	5,235,000	1,104,000
Medallion Gathering And Processing LLC \| Variable Interest Entity, Not Primary Beneficiary
Schedule of Equity Method Investments [Line Items]
Investment in equity method investee	$ 0	$ 8,200,000	$ 14,500,000	$ 19,500,000
Ownership percentage	49.00%		49.00%
Equity method investment ownership percentage held by investment partner	51.00%		51.00%
Voting percentage required for key decisions			75.00%
Minimum volume commitments	$ 3,000,000

Related Parties - Consolidated Statement of Operations related to Medallion(Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Related Party Transaction [Line Items]
Midstream service revenues	$ 1,726	$ 172	$ 3,035	$ 268
Minimum volume commitments	3,579	588	5,235	1,104
Interest and other income	173	194	296	277
Medallion Gathering And Processing LLC
Related Party Transaction [Line Items]
Midstream service revenues	390	0	487	0
Minimum volume commitments	3,579	588	5,235	1,104
Interest and other income	$ 0	$ 0	$ 108	$ 0

Related Parties - Balance Sheet related to Medallion (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Other assets, net	$ 5,767	$ 8,675
Other current liabilities	101,950	101,032
Medallion Gathering And Processing LLC
Related Party Transaction [Line Items]
Other assets, net	1,229	1,110
Other current liabilities	$ 27,917	$ 3,443

Related Parties - Consolidated Statement of Operations related to Targa Resources (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Related Party Transaction [Line Items]
Oil, NGL and natural gas sales	$ 125,554	$ 182,872	$ 243,672	$ 356,086
Targa Resources Corp.
Related Party Transaction [Line Items]
Oil, NGL and natural gas sales	$ 34,012	$ 23,997	$ 53,643	$ 46,476

Related Parties - Balance Sheet related to Targa Resources (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Accounts receivable, net	$ 110,343	$ 126,929
Targa Resources Corp.
Related Party Transaction [Line Items]
Accounts receivable, net	$ 9,333	$ 12,869

Segments (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

$ 125,554

$ 182,872

$ 243,672

$ 356,086

1,726

172

3,035

268

55,051

86,318

182,331

183,044

333,025

356,354

Midstream service expenses, including minimum volume commitments

38,706

33,339

80,172

67,574

5,176

2,114

8,406

3,475

54,417

85,617

23,208

^[1]

29,552

^[1]

45,063

^[2]

57,206

^[2]

72,112

^[3]

53,056

^[3]

144,054

^[4]

102,663

^[4]

490,192

^[5]

422

^[5]

497,691

^[6]

837

^[6]

(501,480)

64,561

(527,978)

124,599

2,914

(41)

2,481

(25)

(23,970)

^[7]

(30,657)

^[7]

(56,384)

^[8]

(59,643)

^[8]

(31,537)

^[7]

(31,537)

^[8]

(147,100)

^[9]

(245,627)

^[9]

(415,186)

^[10]

(446,556)

^[10]

Exploration and production

^[11],[12]

5,427,620

4,086,259

5,427,620

4,086,259

125,679

182,872

243,890

356,086

125,679

182,872

243,890

356,086

Midstream service expenses, including minimum volume commitments

41,423

34,709

85,268

69,878

4,399

21,347

^[1]

27,742

^[1]

41,125

^[2]

54,058

^[2]

69,987

^[3]

52,261

^[3]

140,244

^[4]

101,229

^[4]

490,147

^[5]

422

^[5]

497,338

^[6]

837

^[6]

(501,624)

67,738

(524,484)

130,084

(22,845)

^[7]

(29,729)

^[7]

(53,932)

^[8]

(58,103)

^[8]

(30,056)

^[7]

(30,056)

^[8]

(133,259)

^[9]

(229,922)

^[9]

(380,872)

^[10]

(420,331)

^[10]

^[11],[12]

5,170,912

3,962,611

5,170,912

3,962,611

Midstream and marketing

221

333

4,362

1,542

8,045

2,572

55,051

86,318

59,634

1,542

94,696

2,572

Midstream service expenses, including minimum volume commitments

998

2,114

4,340

3,475

54,417

85,617

1,861

^[1]

1,810

^[1]

3,938

^[2]

3,148

^[2]

2,125

^[3]

795

^[3]

3,810

^[4]

1,434

^[4]

^[5]

353

^[6]

188

(3,177)

(3,362)

(5,485)

2,914

(41)

2,481

(25)

(1,125)

^[7]

(928)

^[7]

(2,452)

^[8]

(1,540)

^[8]

(1,481)

^[7]

(1,481)

^[8]

(13,841)

^[9]

(15,705)

^[9]

(34,314)

^[10]

(26,225)

^[10]

Intercompany eliminations

^[11],[12]

257,073

123,648

257,073

123,648

(346)

(551)

(2,636)

(1,370)

(5,010)

(2,304)

(2,982)

(1,370)

(5,561)

(2,304)

Midstream service expenses, including minimum volume commitments

(2,717)

(1,370)

(5,096)

(2,304)

(221)

(333)

^[1]

^[2]

^[3]

^[4]

^[5]

^[6]

(44)

(132)

^[7]

^[8]

^[7]

^[8]

^[9]

^[10]