Commitments and Contingencies |
3 Months Ended |
|---|---|
Mar. 31, 2018 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Note 12—Commitments and Contingencies Commitments In March 2018, the Company entered into a natural gas transportation agreement whereby it is required to deliver approximately 18,500,000 MMBtu over a two-year term or else pay for any volume deficiencies. This delivery commitment is tied to the Company’s natural gas production in Reeves County, Texas, and the aggregate financial commitment of $11.0 million under this contract represents the minimum commitments pursuant to the terms of the agreement as of March 31, 2018. Actual expenditures under this contract may exceed this minimum commitment amount. The Company routinely enters or extends operating agreements, office and equipment leases, drilling and completion rig contracts, among others, in the ordinary course of business. Other than the above, there have been no material, non-routine changes in commitments during the three months ended March 31, 2018. Please refer to Note 13—Commitments and Contingencies included in Part II, Item 8 in the Company’s 2017 Annual Report. Contingencies The Company may at times be subject to various commercial or regulatory claims, litigation or other legal proceedings that arise in the ordinary course of business. While the outcome of these lawsuits and claims cannot be predicted with certainty, management believes it is remote that the impact of such matters that are reasonably possible to occur will have a material adverse effect on the Company’s financial position, results of operations or cash flows. Management is unaware of any pending litigation brought against the Company requiring the reserve of a contingent liability as of the date of these consolidated financial statements. |