Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v3.21.1
Property and Equipment, Net
3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
As of March 31, 2021 and December 31, 2020, total property and equipment, net consisted of the following:
March 31, 2021 December 31, 2020
Oil and natural gas properties, full cost accounting method (In thousands)
Evaluated properties $8,001,847  $7,894,513 
Accumulated depreciation, depletion, amortization and impairments (5,607,508) (5,538,803)
Evaluated properties, net 2,394,339  2,355,710 
Unevaluated properties
Unevaluated leasehold and seismic costs 1,530,897  1,532,304 
Capitalized interest 223,871  200,946 
Total unevaluated properties 1,754,768  1,733,250 
Total oil and natural gas properties, net $4,149,107  $4,088,960 
Other property and equipment $60,388  $60,287 
Accumulated depreciation (28,953) (28,647)
Other property and equipment, net $31,435  $31,640 
The Company capitalized internal costs of employee compensation and benefits, including share-based compensation, directly associated with acquisition, exploration and development activities totaling $11.2 million and $7.5 million for the three months ended March 31, 2021 and 2020, respectively. The Company capitalized interest costs to unproved properties totaling $24.0 million for both the three months ended March 31, 2021 and 2020.
Impairment of Evaluated Oil and Gas Properties
For the three months ended March 31, 2021, the capitalized costs of oil and gas properties did not exceed the cost center ceiling. As a result, the Company did not recognize an impairment in the carrying value of evaluated oil and gas properties for the three months ended March 31, 2021. The Company also did not recognize an impairment of evaluated oil and gas properties for the three months ended March 31, 2020.
Details of the average realized prices for sales of oil on the first calendar day of each month during the trailing 12-month period (“12-Month Average Realized Price”) of crude oil for the three months ended March 31, 2021 and 2020 are summarized in the table below:
Three Months Ended March 31,
2021 2020
Impairment of evaluated oil and gas properties (in thousands) $— $—
Beginning of period 12-Month Average Realized Price ($/Bbl) $37.44 $53.90
End of period 12-Month Average Realized Price ($/Bbl) $37.51 $54.63
Percent increase in 12-Month Average Realized Price —  % %
The Company does not expect to record an impairment in the carrying value of evaluated oil and gas properties in the second quarter of 2021 based on an estimated 12-Month Average Realized Price of crude oil of approximately $49.35 per Bbl as of June 30, 2021, which is based on the average realized price for sales of crude oil on the first calendar day of each month for the first 10 months and an estimate for the eleventh and twelfth months based on a quoted forward price. Declines in the 12-Month Average Realized Price of crude oil in subsequent quarters could result in a lower present value of the estimated future net revenues from proved oil and gas reserves and may result in impairments of evaluated oil and gas properties.