Annual report pursuant to Section 13 and 15(d)

Supplemental Information on Oil and Natural Gas Properties (unaudited) (Tables)

v3.6.0.2
Supplemental Information on Oil and Natural Gas Properties (unaudited) (Tables)
12 Months Ended
Dec. 31, 2016
Supplemental Information on Oil and Natural Gas Properties (Unaudited) [Abstract]  
Capitalized Costs Relating to Oil and Natural Gas Activities



 

For the Year Ended December 31,



 

2016

 

2015

 

2014

Evaluated Properties (a)

 

 

 

 

 

 

 

 

 

Beginning of period balance

 

$

2,335,223 

 

$

2,077,985 

 

$

1,701,577 

Capitalized G&A expenses

 

 

12,222 

 

 

10,529 

 

 

10,071 

Property acquisition costs (b)

 

 

216,561 

 

 

26,726 

 

 

94,541 

Exploration costs

 

 

38,612 

 

 

81,320 

 

 

118,251 

Development costs

 

 

151,735 

 

 

138,663 

 

 

153,545 

End of period balance

 

$

2,754,353 

 

$

2,335,223 

 

$

2,077,985 

Unevaluated Properties (a)(c)

 

 

 

 

 

 

 

 

 

Beginning of period balance

 

$

132,181 

 

$

142,525 

 

$

43,222 

Property acquisition costs (b)

 

 

548,673 

 

 

5,520 

 

 

128,342 

Exploration costs

 

 

8,631 

 

 

4,576 

 

 

11,177 

Capitalized interest expenses

 

 

19,857 

 

 

10,459 

 

 

4,295 

Transfers to Evaluated Properties

 

 

(40,621)

 

 

(30,899)

 

 

(44,511)

End of period balance

 

$

668,721 

 

$

132,181 

 

$

142,525 

Accumulated depreciation, depletion and amortization

 

 

 

 

 

 

 

 

 

Beginning of period balance

 

$

1,756,018 

 

$

1,478,355 

 

$

1,420,612 

Provision charged to expense

 

 

71,330 

 

 

69,228 

 

 

56,663 

Write-down of oil and natural gas properties (a)

 

 

95,788 

 

 

208,435 

 

 

Sale of mineral interests

 

 

24,537 

 

 

 

 

1,080 

End of period balance

 

$

1,947,673 

 

$

1,756,018 

 

$

1,478,355 





(a)

The Company uses the full cost method of accounting for its exploration and development activities. See the Company’s accounting policy about oil and natural gas properties in Note 2 for details on the full cost method of accounting.

(b)

See Note 3 in the Footnotes to the Financial Statements for additional information about the Company’s significant acquisitions.

(c)

Unevaluated property costs primarily include lease acquisition costs, unevaluated drilling costs, seismic, capitalized interest expenses and certain overhead costs related to exploration and development. These costs are directly related to the acquisition and evaluation of unproved properties. The excluded costs and related reserves are included in the amortization base as the properties are evaluated and proved reserves are established or impairment is determined. The majority of these costs are primarily associated with the Company’s focus areas of its future development program and are expected to be evaluated over ten to fifteen years. The Company’s unevaluated property balance of $668,721 as of December 31, 2016, consisted of $123,345,  $521,520 and $23,856 of costs attributable to our Monarch, WildHorse and Ranger operating areas, respectively.



Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities







 

 

 

 

 

 



 

For the Year Ended December 31,

Proved developed and undeveloped reserves:

 

2016

 

2015

 

2014

Oil (MBbls):

 

 

 

 

 

 

Beginning of period

 

43,348 

 

25,733 

 

11,898 

Revisions to previous estimates

 

(5,738)

 

(1,632)

 

(243)

Purchase of reserves in place

 

25,054 

 

2,932 

 

3,223 

Sale of reserves in place

 

(1,718)

 

(23)

 

Extensions and discoveries

 

14,479 

 

19,127 

 

12,547 

Production

 

(4,280)

 

(2,789)

 

(1,692)

End of period

 

71,145 

 

43,348 

 

25,733 

Natural Gas (MMcf):

 

 

 

 

 

 

Beginning of period

 

65,537 

 

42,548 

 

17,751 

Revisions to previous estimates

 

13,929 

 

4,870 

 

(215)

Purchase of reserves in place

 

36,474 

 

2,915 

 

8,591 

Sale of reserves in place

 

(2,765)

 

(105)

 

Extensions and discoveries

 

17,194 

 

19,621 

 

18,641 

Production

 

(7,758)

 

(4,312)

 

(2,220)

End of period

 

122,611 

 

65,537 

 

42,548 







 

 

 

 

 

 



 

For the Year Ended December 31,

Proved developed reserves:

 

2016

 

2015

 

2014

Oil (MBbls):

 

 

 

 

 

 

Beginning of period

 

22,257 

 

14,006 

 

5,960 

End of period

 

32,920 

 

22,257 

 

14,006 

Natural gas (MMcf):

 

 

 

 

 

 

Beginning of period

 

38,157 

 

25,171 

 

9,059 

End of period

 

61,871 

 

38,157 

 

25,171 

MBOE:

 

 

 

 

 

 

Beginning of period

 

28,617 

 

18,201 

 

7,470 

End of period

 

43,232 

 

28,617 

 

18,201 

Proved undeveloped reserves:

 

 

 

 

 

 

Oil (MBbls):

 

 

 

 

 

 

Beginning of period

 

21,091 

 

11,727 

 

5,938 

End of period

 

38,225 

 

21,091 

 

11,727 

Natural gas (MMcf):

 

 

 

 

 

 

 Beginning of period

 

27,380 

 

17,377 

 

8,692 

End of period

 

60,740 

 

27,380 

 

17,377 

MBOE:

 

 

 

 

 

 

Beginning of period

 

25,654 

 

14,623 

 

7,387 

End of period

 

48,348 

 

25,654 

 

14,623 



Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure



 

 

2016

 

 

2015

 

 

2014

Average 12-month price, net of differentials, per Mcf of natural gas (a)

 

$

2.71 

 

$

2.73 

 

$

6.38 

Average 12-month price, net of differentials, per barrel of oil (b)

 

$

40.03 

 

$

47.25 

 

$

86.30 



(a)

Includes a high Btu content of separator natural gas and adjustments to reflect the Btu content, transportation charges and other fees specific to the individual properties.

(b)

Includes adjustments to reflect all wellhead deductions and premiums on a property-by-property basis, including transportation costs, location differentials and crude quality.

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure







 

 

 

 

 

 

 

 

 



 

Standardized Measure



 

For the Year Ended December 31,



 

2016

 

2015

 

2014

Future cash inflows

 

$

3,180,005 

 

$

2,227,463 

 

$

2,492,178 

Future costs

 

 

 

 

 

 

 

 

 

   Production

 

 

(974,667)

 

 

(827,555)

 

 

(873,469)

   Development and net abandonment

 

 

(384,117)

 

 

(239,100)

 

 

(288,081)

Future net inflows before income taxes

 

 

1,821,221 

 

 

1,160,808 

 

 

1,330,628 

Future income taxes

 

 

(1,602)

 

 

 

 

(164,490)

Future net cash flows

 

 

1,819,619 

 

 

1,160,808 

 

 

1,166,138 

10% discount factor

 

 

(1,009,787)

 

 

(589,918)

 

 

(586,596)

Standardized measure of discounted future net cash flows

 

$

809,832 

 

$

570,890 

 

$

579,542 







 

 

 

 

 

 

 

 

 



 

Changes in Standardized Measure



 

For the Year Ended December 31,



 

2016

 

2015

 

2014

Standardized measure at the beginning of the period

 

$

570,890 

 

$

579,542 

 

$

283,946 

Sales and transfers, net of production costs

 

 

(150,628)

 

 

(110,476)

 

 

(120,518)

Net change in sales and transfer prices, net of production costs

 

 

(103,136)

 

 

(286,660)

 

 

(156,066)

Net change due to purchases and sales of in place reserves

 

 

260,859 

 

 

37,616 

 

 

111,331 

Extensions, discoveries, and improved recovery, net of future production and development costs incurred

 

 

180,228 

 

 

184,469 

 

 

299,192 

Changes in future development cost

 

 

82,320 

 

 

108,216 

 

 

186,605 

Revisions of quantity estimates

 

 

(35,938)

 

 

(12,625)

 

 

(7,673)

Accretion of discount

 

 

57,091 

 

 

62,968 

 

 

30,114 

Net change in income taxes

 

 

16 

 

 

35,407 

 

 

(32,940)

Changes in production rates, timing and other

 

 

(51,870)

 

 

(27,567)

 

 

(14,449)

Aggregate change

 

 

238,942 

 

 

(8,652)

 

 

295,596 

Standardized measure at the end of period

 

$

809,832 

 

$

570,890 

 

$

579,542