Supplemental Oil and Gas Disclosures - Unaudited (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
|---|
| Reserve Quantities [Line Items] |
|
| Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure |
The following table presents the Company’s aggregate capitalized costs relating to oil and natural gas producing activities in the U.S. for the periods indicated:
|
|
|
As of December 31, |
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved properties: |
|
$ |
1,286,373 |
|
|
$ |
1,124,367 |
|
|
$ |
935,773 |
|
|
Total proved properties |
|
|
1,286,373 |
|
|
|
1,124,367 |
|
|
|
935,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unproved properties: |
|
|
92,609 |
|
|
|
128,274 |
|
|
|
96,220 |
|
|
Total unproved properties |
|
|
92,609 |
|
|
|
128,274 |
|
|
|
96,220 |
|
|
Total oil and natural gas properties |
|
|
1,378,982 |
|
|
|
1,252,641 |
|
|
|
1,031,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of proved oil and natural gas properties |
|
|
(764,817 |
) |
|
|
(337,939 |
) |
|
|
(337,939 |
) |
|
Accumulated depreciation, depletion and amortization |
|
|
(286,020 |
) |
|
|
(223,555 |
) |
|
|
(177,790 |
) |
|
Net capitalized costs |
|
$ |
328,145 |
|
|
$ |
691,147 |
|
|
$ |
516,264 |
|
|
| Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure |
The following table sets forth costs incurred related to the Company’s oil and natural gas activities in the U.S. for the periods indicated:
|
|
|
For the years ended December 31, |
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
|
|
(in thousands) |
|
|
Property acquisition |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved(1) |
|
$ |
15,615 |
|
|
$ |
— |
|
|
$ |
189,594 |
|
|
Unproved(2) |
|
|
50,434 |
|
|
|
41,475 |
|
|
|
71,472 |
|
|
Exploration |
|
|
53,290 |
|
|
|
127,384 |
|
|
|
36,893 |
|
|
Development |
|
|
54,316 |
|
|
|
57,913 |
|
|
|
53,058 |
|
|
Total costs incurred |
|
$ |
173,655 |
|
|
$ |
226,772 |
|
|
$ |
351,017 |
|
|
(1) |
The 2013 property acquisition costs exclude a downward adjustment of $2.6 million for fair value of acquisition. |
|
(2) |
The 2013 property acquisition costs exclude $46.3 million of adjustment for fair value of acquisition. |
|
| Results of Operations for Oil and Gas Producing Activities Disclosure |
The following table sets forth the Company’s results of operations for oil and natural gas producing activities in the U.S. for the periods indicated:
|
|
|
For the Year Ended December 31, |
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
|
|
(in thousands, except per Mcfe data) |
|
|
Oil, condensate, natural gas and NGLs sales, including
commodity derivatives |
|
$ |
107,294 |
|
|
$ |
171,418 |
|
|
$ |
87,755 |
|
|
Production expenses |
|
|
(28,792 |
) |
|
|
(29,735 |
) |
|
|
(18,113 |
) |
|
Impairment of oil and natural gas properties |
|
|
(426,878 |
) |
|
|
— |
|
|
|
— |
|
|
Depreciation, depletion and amortization |
|
|
(62,465 |
) |
|
|
(45,765 |
) |
|
|
(32,158 |
) |
|
Results of producing activities |
|
$ |
(410,841 |
) |
|
$ |
95,918 |
|
|
$ |
37,484 |
|
|
Depreciation, depletion and amortization per MBoe |
|
$ |
12.67 |
|
|
$ |
12.34 |
|
|
$ |
9.94 |
|
|
| Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure |
For the periods indicated, the following benchmark base prices for natural gas and oil, before lease adjustments, were used in the calculations:
|
|
|
For the Years Ended December 31, |
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
Natural gas, per MMBtu |
|
|
|
|
|
|
|
|
|
|
|
|
|
Henry Hub |
|
$ |
2.59 |
|
|
$ |
4.35 |
|
|
$ |
3.67 |
|
|
Oil, per barrel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
WTI spot |
|
$ |
50.28 |
|
|
$ |
94.99 |
|
|
$ |
96.78 |
|
|
| Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities |
The following tables set forth changes in estimated net proved and proved developed and undeveloped reserves for the years ended December 31, 2015, 2014 and 2013:
|
Change in Proved Reserves |
|
Condensate and Oil (MBbl) (1) |
|
|
Natural Gas
(MMcf) (2) |
|
|
NGLs
(MBbl) (1) |
|
|
MBoe Equivalents (3) |
|
|
Proved reserves as of December 31, 2012 |
|
|
3,394 |
|
|
|
131,010 |
|
|
|
4,922 |
|
|
|
30,152 |
|
|
2013 Activity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extensions and discoveries(4) |
|
|
4,385 |
|
|
|
52,750 |
|
|
|
2,306 |
|
|
|
15,483 |
|
|
Revisions of previous estimates |
|
|
(337 |
) |
|
|
8,114 |
|
|
|
714 |
|
|
|
1,729 |
|
|
Production |
|
|
(515 |
) |
|
|
(13,366 |
) |
|
|
(494 |
) |
|
|
(3,237 |
) |
|
Purchases in place |
|
|
7,796 |
|
|
|
26,961 |
|
|
|
2,350 |
|
|
|
14,639 |
|
|
Sales in place |
|
|
(5 |
) |
|
|
(24,759 |
) |
|
|
— |
|
|
|
(4,132 |
) |
|
Proved reserves as of December 31, 2013 |
|
|
14,718 |
|
|
|
180,710 |
|
|
|
9,798 |
|
|
|
54,634 |
|
|
2014 Activity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extensions and discoveries(5) |
|
|
13,137 |
|
|
|
121,672 |
|
|
|
9,394 |
|
|
|
42,810 |
|
|
Revisions of previous estimates |
|
|
1,780 |
|
|
|
(2,465 |
) |
|
|
7,205 |
|
|
|
8,574 |
|
|
Production |
|
|
(975 |
) |
|
|
(11,598 |
) |
|
|
(800 |
) |
|
|
(3,708 |
) |
|
Sales in place |
|
|
(24 |
) |
|
|
(1,314 |
) |
|
|
(4 |
) |
|
|
(247 |
) |
|
Proved reserves as of December 31, 2014 |
|
|
28,636 |
|
|
|
287,005 |
|
|
|
25,593 |
|
|
|
102,063 |
|
|
2015 Activity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extensions and discoveries(6) |
|
|
4,777 |
|
|
|
14,114 |
|
|
|
2,244 |
|
|
|
9,374 |
|
|
Revisions of previous estimates(7) |
|
|
(8,962 |
) |
|
|
(182,600 |
) |
|
|
(13,873 |
) |
|
|
(53,268 |
) |
|
Production |
|
|
(1,425 |
) |
|
|
(13,759 |
) |
|
|
(1,212 |
) |
|
|
(4,931 |
) |
|
Purchases in place |
|
|
1,270 |
|
|
|
4,965 |
|
|
|
873 |
|
|
|
2,971 |
|
|
Sales in place |
|
|
(94 |
) |
|
|
(1,274 |
) |
|
|
(26 |
) |
|
|
(332 |
) |
|
Proved reserves as of December 31, 2015 |
|
|
24,202 |
|
|
|
108,451 |
|
|
|
13,599 |
|
|
|
55,877 |
|
|
(2) |
Million cubic feet or million cubic feet equivalent, as applicable |
|
(3) |
Thousand barrels of oil, condensate or NGLs and natural gas equivalent. Natural gas volumes have been converted to equivalent oil, condensate and NGLs volumes using a conversion factor of one barrel of oil, condensate or NGLs to six cubic feet of natural gas. |
|
(4) |
Of the 2013 extensions and discoveries, 74% resulted from successful drilling results in the Marcellus Shale. The remainder of the 2013 extensions and discoveries resulted from the Company's Mid-Continent drilling operations. |
|
(5) |
Of the 2014 extensions and discoveries, 69% resulted from successful drilling results in the Marcellus Shale. The remainder of the 2014 extensions and discoveries resulted from the Company's Mid-Continent drilling operations. |
|
(6) |
All of the 2015 extensions and discoveries resulted from the Company’s Mid-Continent drilling operations. |
|
(7) |
The 2015 revisions of previous estimates resulted primarily from a 36.8 MMBoe decrease in Appalachian Basin reserves due to the suspension of the Marcellus and Utica Shale drilling programs in 2015 and the significant decrease in the 12-month unweighted arithmetic average of the first-day-of-the-month prices for oil and natural gas as of December 31, 2015 and 2014. |
|
Proved Developed and Undeveloped Reserves |
|
Condensate and Oil (MBbl) (1) |
|
|
Natural Gas
(MMcf) (2) |
|
|
NGLs
(MBbl) (1) |
|
|
MBoe Equivalents (3) |
|
|
December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved developed reserves |
|
|
5,834 |
|
|
|
114,195 |
|
|
|
6,025 |
|
|
|
30,892 |
|
|
Proved undeveloped reserves |
|
|
8,884 |
|
|
|
66,515 |
|
|
|
3,773 |
|
|
|
23,742 |
|
|
Total |
|
|
14,718 |
|
|
|
180,710 |
|
|
|
9,798 |
|
|
|
54,634 |
|
|
December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved developed reserves |
|
|
6,968 |
|
|
|
114,564 |
|
|
|
10,726 |
|
|
|
36,789 |
|
|
Proved undeveloped reserves |
|
|
21,668 |
|
|
|
172,441 |
|
|
|
14,867 |
|
|
|
65,274 |
|
|
Total |
|
|
28,636 |
|
|
|
287,005 |
|
|
|
25,593 |
|
|
|
102,063 |
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved developed reserves |
|
|
7,181 |
|
|
|
77,966 |
|
|
|
8,240 |
|
|
|
28,415 |
|
|
Proved undeveloped reserves |
|
|
17,021 |
|
|
|
30,485 |
|
|
|
5,359 |
|
|
|
27,462 |
|
|
Total |
|
|
24,202 |
|
|
|
108,451 |
|
|
|
13,599 |
|
|
|
55,877 |
|
|
(2) |
Million cubic feet or million cubic feet equivalent, as applicable |
|
(3) |
Thousand barrels of oil, condensate or NGLs and natural gas equivalent. Natural gas volumes have been converted to equivalent oil, condensate and NGLs volumes using a conversion factor of one barrel of oil, condensate or NGLs to six cubic feet of natural gas. |
.
|
| Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure |
The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves in the U.S. is presented below (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013: |
|
|
|
|
|
Future cash inflows |
|
$ |
2,103,023 |
|
|
Future production costs |
|
|
(588,568 |
) |
|
Future development costs |
|
|
(296,666 |
) |
|
Future income taxes |
|
|
(215,502 |
) |
|
Future net cash flows |
|
|
1,002,287 |
|
|
10% annual discount for estimated timing of cash flows |
|
|
(486,458 |
) |
|
Standardized measure of discounted future cash flows |
|
$ |
515,829 |
|
|
December 31, 2014: |
|
|
|
|
|
Future cash inflows |
|
$ |
3,855,227 |
|
|
Future production costs |
|
|
(1,048,554 |
) |
|
Future development costs |
|
|
(611,602 |
) |
|
Future income taxes |
|
|
(486,593 |
) |
|
Future net cash flows |
|
|
1,708,478 |
|
|
10% annual discount for estimated timing of cash flows |
|
|
(891,739 |
) |
|
Standardized measure of discounted future cash flows |
|
$ |
816,739 |
|
|
December 31, 2015: |
|
|
|
|
|
Future cash inflows |
|
$ |
1,425,734 |
|
|
Future production costs |
|
|
(547,484 |
) |
|
Future development costs |
|
|
(365,123 |
) |
|
Future income taxes(1) |
|
|
— |
|
|
Future net cash flows |
|
|
513,127 |
|
|
10% annual discount for estimated timing of cash flows |
|
|
(283,324 |
) |
|
Standardized measure of discounted future cash flows |
|
$ |
229,803 |
|
|
(1) |
No future taxes payable has been included in the determination of discounted future net cash flows for 2015 due to existing tax loss carry forwards and property tax basis exceeding future net cash flows. |
|
| Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows |
The principal sources of changes in the standardized measure of future net cash flows are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012 |
|
$ |
206,809 |
|
|
Extensions and discoveries, less related costs |
|
|
196,448 |
|
|
Sale of natural gas and oil, net of production costs |
|
|
(74,394 |
) |
|
Purchases of reserves in place |
|
|
247,208 |
|
|
Sales of reserves in place |
|
|
(9,063 |
) |
|
Revisions of previous quantity estimates |
|
|
6,191 |
|
|
Net change in income tax |
|
|
(76,701 |
) |
|
Net change in prices and production costs |
|
|
79,820 |
|
|
Accretion of discount |
|
|
1,211 |
|
|
Development costs incurred |
|
|
23,567 |
|
|
Net change in estimated future development costs |
|
|
(97,461 |
) |
|
Change in production rates (timing) and other |
|
|
12,194 |
|
|
December 31, 2013 |
|
$ |
515,829 |
|
|
Extensions and discoveries, less related costs |
|
|
369,806 |
|
|
Sale of natural gas and oil, net of production costs |
|
|
(122,114 |
) |
|
Sales of reserves in place |
|
|
(1,475 |
) |
|
Revisions of previous quantity estimates |
|
|
101,044 |
|
|
Net change in income tax |
|
|
(95,245 |
) |
|
Net change in prices and production costs |
|
|
59,786 |
|
|
Accretion of discount |
|
|
(3,996 |
) |
|
Development costs incurred |
|
|
37,461 |
|
|
Net change in estimated future development costs |
|
|
(1,276 |
) |
|
Change in production rates (timing) and other |
|
|
(43,081 |
) |
|
December 31, 2014 |
|
$ |
816,739 |
|
|
Extensions and discoveries, less related costs |
|
|
71,547 |
|
|
Sale of natural gas and oil, net of production costs |
|
|
(53,914 |
) |
|
Purchases of reserves in place |
|
|
9,937 |
|
|
Sales of reserves in place |
|
|
(4,853 |
) |
|
Revisions of previous quantity estimates |
|
|
(324,036 |
) |
|
Net change in income tax |
|
|
171,946 |
|
|
Net change in prices and production costs |
|
|
(604,074 |
) |
|
Accretion of discount |
|
|
98,869 |
|
|
Development costs incurred |
|
|
10,500 |
|
|
Net change in estimated future development costs |
|
|
31,131 |
|
|
Change in production rates (timing) and other |
|
|
6,011 |
|
|
December 31, 2015 |
|
$ |
229,803 |
|
|
| Key Natural Gas and Oil Prices |
|
| Reserve Quantities [Line Items] |
|
| Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure |
The following table provides the key benchmark natural gas and oil prices used as of the periods indicated to calculate reserves:
|
|
|
As of December 31, |
|
|
|
|
2015 |
|
|
2014 |
|
|
Natural gas (per MMBtu): |
|
|
|
|
|
|
|
|
|
Henry Hub |
|
$ |
2.59 |
|
|
$ |
4.35 |
|
|
Oil (per Bbl): |
|
|
|
|
|
|
|
|
|
WTI spot |
|
$ |
50.28 |
|
|
$ |
94.99 |
|
|