Supplemental Information on Oil and Natural Gas Properties (unaudited) (Tables)
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12 Months Ended |
Dec. 31, 2016 |
Supplemental Information on Oil and Natural Gas Properties (Unaudited) [Abstract] |
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Capitalized Costs Relating to Oil and Natural Gas Activities |
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For the Year Ended December 31,
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2016
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2015
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2014
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Evaluated Properties (a)
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Beginning of period balance
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$
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2,335,223
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$
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2,077,985
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$
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1,701,577
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Capitalized G&A expenses
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12,222
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10,529
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10,071
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Property acquisition costs (b)
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216,561
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26,726
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94,541
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Exploration costs
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38,612
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81,320
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118,251
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Development costs
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151,735
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138,663
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153,545
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End of period balance
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$
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2,754,353
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$
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2,335,223
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$
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2,077,985
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Unevaluated Properties (a)(c)
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Beginning of period balance
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$
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132,181
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$
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142,525
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$
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43,222
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Property acquisition costs (b)
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548,673
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5,520
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128,342
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Exploration costs
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8,631
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4,576
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11,177
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Capitalized interest expenses
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19,857
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10,459
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4,295
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Transfers to Evaluated Properties
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(40,621)
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(30,899)
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(44,511)
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End of period balance
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$
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668,721
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$
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132,181
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$
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142,525
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Accumulated depreciation, depletion and amortization
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Beginning of period balance
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$
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1,756,018
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$
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1,478,355
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$
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1,420,612
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Provision charged to expense
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71,330
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69,228
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56,663
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Write-down of oil and natural gas properties (a)
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95,788
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208,435
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—
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Sale of mineral interests
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24,537
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—
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1,080
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End of period balance
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$
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1,947,673
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$
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1,756,018
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$
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1,478,355
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(a)
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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.
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(b)
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See Note 3 in the Footnotes to the Financial Statements for additional information about the Company’s significant acquisitions.
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(c)
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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.
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Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities |
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For the Year Ended December 31,
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Proved developed and undeveloped reserves:
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2016
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2015
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2014
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Oil (MBbls):
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Beginning of period
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43,348
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25,733
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11,898
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Revisions to previous estimates
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(5,738)
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(1,632)
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(243)
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Purchase of reserves in place
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25,054
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2,932
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3,223
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Sale of reserves in place
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(1,718)
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(23)
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—
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Extensions and discoveries
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14,479
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19,127
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12,547
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Production
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(4,280)
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(2,789)
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(1,692)
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End of period
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71,145
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43,348
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25,733
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Natural Gas (MMcf):
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Beginning of period
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65,537
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42,548
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|
17,751
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Revisions to previous estimates
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13,929
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4,870
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(215)
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Purchase of reserves in place
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36,474
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2,915
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8,591
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Sale of reserves in place
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(2,765)
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(105)
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—
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Extensions and discoveries
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17,194
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19,621
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18,641
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Production
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(7,758)
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(4,312)
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(2,220)
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End of period
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122,611
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65,537
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42,548
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For the Year Ended December 31,
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Proved developed reserves:
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2016
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2015
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2014
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Oil (MBbls):
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Beginning of period
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22,257
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14,006
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5,960
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End of period
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32,920
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22,257
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14,006
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Natural gas (MMcf):
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Beginning of period
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38,157
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25,171
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9,059
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End of period
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61,871
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38,157
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25,171
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MBOE:
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Beginning of period
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28,617
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18,201
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7,470
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End of period
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43,232
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28,617
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18,201
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Proved undeveloped reserves:
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Oil (MBbls):
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Beginning of period
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21,091
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11,727
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5,938
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End of period
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38,225
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21,091
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11,727
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Natural gas (MMcf):
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Beginning of period
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27,380
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17,377
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8,692
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End of period
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60,740
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27,380
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17,377
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MBOE:
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Beginning of period
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25,654
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14,623
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7,387
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End of period
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48,348
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25,654
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14,623
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Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure |
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2016
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2015
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2014
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Average 12-month price, net of differentials, per Mcf of natural gas (a)
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$
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2.71
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$
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2.73
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$
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6.38
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Average 12-month price, net of differentials, per barrel of oil (b)
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$
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40.03
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$
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47.25
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$
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86.30
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(a)
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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.
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(b)
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Includes adjustments to reflect all wellhead deductions and premiums on a property-by-property basis, including transportation costs, location differentials and crude quality.
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Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure |
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Standardized Measure
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For the Year Ended December 31,
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2016
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2015
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2014
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Future cash inflows
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$
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3,180,005
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$
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2,227,463
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$
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2,492,178
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Future costs
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Production
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(974,667)
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(827,555)
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(873,469)
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Development and net abandonment
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(384,117)
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(239,100)
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(288,081)
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Future net inflows before income taxes
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1,821,221
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1,160,808
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1,330,628
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Future income taxes
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(1,602)
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—
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(164,490)
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Future net cash flows
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1,819,619
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1,160,808
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1,166,138
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10% discount factor
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(1,009,787)
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(589,918)
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(586,596)
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Standardized measure of discounted future net cash flows
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$
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809,832
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$
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570,890
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$
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579,542
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Changes in Standardized Measure
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For the Year Ended December 31,
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2016
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2015
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2014
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Standardized measure at the beginning of the period
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$
|
570,890
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$
|
579,542
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$
|
283,946
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Sales and transfers, net of production costs
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(150,628)
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(110,476)
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(120,518)
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Net change in sales and transfer prices, net of production costs
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(103,136)
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(286,660)
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(156,066)
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Net change due to purchases and sales of in place reserves
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260,859
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37,616
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111,331
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Extensions, discoveries, and improved recovery, net of future production and development costs incurred
|
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180,228
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184,469
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299,192
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Changes in future development cost
|
|
|
82,320
|
|
|
108,216
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|
|
186,605
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Revisions of quantity estimates
|
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(35,938)
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(12,625)
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|
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(7,673)
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Accretion of discount
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57,091
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|
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62,968
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|
|
30,114
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Net change in income taxes
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|
16
|
|
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35,407
|
|
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(32,940)
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Changes in production rates, timing and other
|
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(51,870)
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|
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(27,567)
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(14,449)
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Aggregate change
|
|
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238,942
|
|
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(8,652)
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|
|
295,596
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Standardized measure at the end of period
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$
|
809,832
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$
|
570,890
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$
|
579,542
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|