Annual report pursuant to Section 13 and 15(d)

Supplemental Information On Oil And Gas Exploration And Production Activities (Tables)

v2.4.1.9
Supplemental Information On Oil And Gas Exploration And Production Activities (Tables)
 12 Months Ended
Dec. 31, 2014
Extractive Industries [Abstract]  
Capitalized Costs Relating to Oil and Gas Producing Activities
Capitalized Costs Related to Oil and Gas Producing Activities
 
 
2014
 
2013
 
(In thousands)
Proven properties
$
2,457,616

 
$
1,526,588

Unproven properties
1,465,538

 
950,590

 
3,923,154

 
2,477,178

Accumulated depreciation, depletion, amortization and impairment reserve
(1,044,273
)
 
(779,561
)
Net capitalized costs
$
2,878,881

 
$
1,697,617

 
 
 
 
Equity investment in Diamondback Energy, Inc.
 
 
 
Proven properties
$
—

 
$
92,074

Unproven properties
—

 
26,608

 
—

 
118,682

Accumulated depreciation, depletion, amortization and impairment reserve
—

 
(15,180
)
Net capitalized costs
$
—

 
$
103,502

 
 
 
 
Equity investment in Grizzly Oil Sand ULC
 
 
 
Proven properties
$
96,859

 
$
—

Unproven properties
103,160

 
—

 
200,019

 
—

Accumulated depreciation, depletion, amortization and impairment reserve
(1,248
)
 
—

Net capitalized costs
$
198,771

 
$
—

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities
Costs Incurred in Oil and Gas Property Acquisition and Development Activities
 
 
2014
 
2013
 
2012
 
(In thousands)
Acquisition
$
440,288

 
$
338,153

 
$
513,904

Development of proved undeveloped properties
864,511

 
408,121

 
121,787

Exploratory
2,249

 
26,174

 
93,397

Recompletions
45,658

 
44,633

 
24,643

Capitalized asset retirement obligation
2,095

 
3,556

 
2,195

Total
$
1,354,801

 
$
820,637

 
$
755,926

 
 
 
 
 
 
Equity investment in Diamondback Energy, Inc.
 
 
 
 
 
Acquisition
$
—

 
$
44,534

 
$
49,895

Development of proved undeveloped properties
—

 
6,369

 
22,740

Exploratory
—

 
17,491

 
3,755

Capitalized asset retirement obligation
—

 
50

 
203

Total
$
—

 
$
68,444

 
$
76,593

 
 
 
 
 
 
Equity investment in Grizzly Oil Sands ULC
 
 
 
 
 
Acquisition
$
1,230

 
$
—

 
$
—

Development of proved undeveloped properties
7,107

 
—

 
—

Exploratory
—

 
—

 
—

Capitalized asset retirement obligation
1,055

 
—

 
—

Total
$
9,392

 
$
—

 
$
—

Results of Operations for Producing Activities
The results of operations exclude general office overhead and interest expense attributable to oil and gas production.
 
 
2014
 
2013
 
2012
 
(In thousands)
Revenues
$
670,762

 
$
262,225

 
$
248,601

Production costs
(140,664
)
 
(64,666
)
 
(53,708
)
Depletion
(263,946
)
 
(118,118
)
 
(90,230
)
 
266,152

 
79,441

 
104,663

Income tax expense (benefit)
 
 
 
 
 
Current
—

 
—

 
730

Deferred
96,061

 
49,447

 
25,633

 
96,061

 
49,447

 
26,363

Results of operations from producing activities
$
170,091

 
$
29,994

 
$
78,300

Depletion per Mcf of gas equivalent (Mcfe)
$
3.01

 
$
4.78

 
$
5.85

 
 
 
 
 
 
Results of Operations from equity method investment in Diamondback Energy, Inc.
 
 
 
 
 
Revenues
$
—

 
$
14,976

 
$
16,042

Production costs
—

 
(2,518
)
 
(4,474
)
Depletion
—

 
(4,754
)
 
(5,515
)
 
—

 
7,704

 
6,053

Income tax expense
—

 
2,286

 
2,158

Results of operations from producing activities
$
—

 
$
5,418

 
$
3,895

 
 
 
 
 
 
Results of Operations from equity method investment in Grizzly Oil Sands ULC
 
 
 
 
 
Revenues
$
5,449

 
$
—

 
$
—

Production costs
(10,113
)
 
—

 
—

Depletion
(1,195
)
 
—

 
—

 
(5,859
)
 
—

 
—

Income tax expense
—

 
—

 
—

Results of operations from producing activities
$
(5,859
)
 
$
—

 
$
—

 
 
 
 
 
 
Oil And Gas Reserves
These estimates are reviewed annually and revised, either upward or downward, as warranted by additional performance data.
 
 
2014
 
2013
 
2012
 
Oil
 
Gas
 
NGL
 
Oil
 
Gas
 
NGL
 
Oil
 
Gas
 
NGL
 
(MBbls)
 
(MMcf)
 
(MBbls)
 
(MBbls)
 
(MMcf)
 
(MBbls)
 
(MBbls)
 
(MMcf)
 
(MBbls)
Proved Reserves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of the period
8,346

 
146,446

 
5,675

 
8,106

 
33,771

 
145

 
13,954

 
15,728

 
2,791

Purchases in oil and gas reserves in place
173

 
8,863

 
353

 
—

 
—

 
—

 
—

 
—

 
—

Extensions and discoveries
4,975

 
629,151

 
22,594

 
2,765

 
123,597

 
5,850

 
4,732

 
31,265

 
148

Sales of oil and gas reserves in place
—

 
—

 
—

 
—

 
—

 
—

 
(7,875
)
 
(11,757
)
 
(2,729
)
Revisions of prior reserve estimates
(1,313
)
 
(6,136
)
 
(304
)
 
(208
)
 
(2,031
)
 
—

 
(382
)
 
(357
)
 
—

Current production
(2,684
)
 
(59,318
)
 
(2,050
)
 
(2,317
)
 
(8,891
)
 
(320
)
 
(2,323
)
 
(1,108
)
 
(65
)
End of period
9,497

 
719,006

 
26,268

 
8,346

 
146,446

 
5,675

 
8,106

 
33,771

 
145

Proved developed reserves
5,719

 
345,166

 
12,379

 
5,609

 
94,552

 
3,527

 
5,175

 
18,482

 
44

Proved undeveloped reserves
3,778

 
373,840

 
13,889

 
2,737

 
51,894

 
2,148

 
2,931

 
15,289

 
101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity investment in Diamondback Energy, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proved Reserves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of the period
—

 
—

 
—

 
5,606

 
7,398

 
1,766

 
3,874

 
4,398

 
1,080

Change in ownership interest in Diamondback
—

 
—

 
—

 
(3,720
)
 
(4,909
)
 
(1,171
)
 
—

 
—

 
—

Purchases in oil and gas reserves in place
—

 
—

 
—

 
528

 
752

 
120

 
1,543

 
2,292

 
540

Extensions and discoveries
—

 
—

 
—

 
1,227

 
1,741

 
331

 
665

 
804

 
186

Revisions of prior reserve estimates
—

 
—

 
—

 
(428
)
 
(417
)
 
(249
)
 
(314
)
 
82

 
(1
)
Current production
—

 
—

 
—

 
(146
)
 
(124
)
 
(26
)
 
(162
)
 
(178
)
 
(39
)
End of period
—

 
—

 
—

 
3,067

 
4,441

 
771

 
5,606

 
7,398

 
1,766

Proved developed reserves
—

 
—

 
—

 
1,425

 
2,263

 
358

 
1,539

 
2,753

 
641

Proved undeveloped reserves
—

 
—

 
—

 
1,642

 
2,178

 
413

 
4,068

 
4,645

 
1,124

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity investment in Grizzly Oil Sands ULC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of the period
13,637

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Purchases in oil and gas reserves in place
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Extensions and discoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Revisions of prior reserve estimates
990

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Current production
(69
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

End of period
14,558

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Proved developed reserves
1,632

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Proved undeveloped reserves
12,926

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves (Unaudited)
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves  
 
Year ended December 31,
 
2014
 
2013
 
2012
 
(In thousands)
Future cash flows
$
4,667,678

 
$
1,657,708

 
$
954,833

Future development and abandonment costs
(719,898
)
 
(272,500
)
 
(159,113
)
Future production costs
(880,427
)
 
(274,428
)
 
(147,024
)
Future production taxes
(71,229
)
 
(78,647
)
 
(89,175
)
Future income taxes
(693,154
)
 
(172,691
)
 
(114,867
)
Future net cash flows
2,302,970

 
859,442

 
444,654

10% discount to reflect timing of cash flows
(875,803
)
 
(280,976
)
 
(96,013
)
Standardized measure of discounted future net cash flows
$
1,427,167

 
$
578,466

 
$
348,641

 
 
 
 
 
 
Equity investment in Diamondback Energy, Inc. Standardized measure of discounted cash flows
 
 
 
 
 
Future cash flows
$
—

 
$
331,505

 
$
592,669

Future development and abandonment costs
—

 
(37,229
)
 
(115,869
)
Future production costs
—

 
(58,096
)
 
(165,553
)
Future production taxes
—

 
(22,925
)
 
(30,122
)
Future income taxes
—

 
(48,547
)
 
(71,669
)
Future net cash flows
—

 
164,708

 
209,456

10% discount to reflect timing of cash flows
—

 
(94,462
)
 
(130,871
)
Standardized measure of discounted future net cash flows
$
—

 
$
70,246

 
$
78,585

 
 
 
 
 
 
Equity investment in Grizzly Oil Sands ULC Standardized measure of discounted cash flows
 
 
 
 
 
Future cash flows
$
754,720

 
$
—

 
$
—

Future development and abandonment costs
(205,242
)
 
—

 
—

Future production costs
(291,988
)
 
—

 
—

Future production taxes
—

 
—

 
—

Future income taxes
(11,250
)
 
—

 
—

Future net cash flows
246,240

 
—

 
—

10% discount to reflect timing of cash flows
(152,494
)
 
—

 
—

Standardized measure of discounted future net cash flows
$
93,746

 
$
—

 
$
—

Changes In Standardized Measure Of Discounted Future Net Cash Flows Relating To Proved Oil And Gas Reserves
Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves
 
 
Year ended December 31,
 
2014
 
2013
 
2012
 
(In thousands)
Sales and transfers of oil and gas produced, net of production costs
$
(530,098
)
 
$
(197,559
)
 
$
(194,893
)
Net changes in prices, production costs, and development costs
97,716

 
65,573

 
108,941

Acquisition of oil and gas reserves in place
14,266

 
—

 
—

Extensions and discoveries
790,533

 
130,826

 
151,654

Previously estimated development costs incurred during the period
68,227

 
43,478

 
10,211

Revisions of previous quantity estimates, less related production costs
(37,801
)
 
(3,591
)
 
(10,504
)
Sales of reserves in place
—

 
—

 
(214,867
)
Accretion of discount
57,847

 
34,864

 
37,668

Net changes in income taxes
(295,226
)
 
(30,239
)
 
25,585

Change in production rates and other
683,237

 
186,473

 
58,165

Total change in standardized measure of discounted future net cash flows
$
848,701

 
$
229,825

 
$
(28,040
)
 
 
 
 
 
 
Equity investment in Diamondback Energy, Inc. Changes in standardized measure of discounted cash flows
 
 
 
 
 
Change in ownership interest in Diamondback
$
—

 
$
(52,145
)
 
$
—

Sales and transfers of oil and gas produced, net of production costs
—

 
(12,524
)
 
(11,601
)
Net changes in prices, production costs, and development costs
—

 
3,312

 
(14,596
)
Acquisition of oil and gas reserves in place
—

 
21,968

 
23,090

Extensions and discoveries
—

 
39,776

 
16,969

Previously estimated development costs incurred during the period
—

 
5,517

 
19,014

Revisions of previous quantity estimates, less related production costs
—

 
(9,143
)
 
(4,897
)
Accretion of discount
—

 
4,175

 
7,803

Net changes in income taxes
—

 
(12,137
)
 
(26,866
)
Change in production rates and other
—

 
2,862

 
(8,358
)
Total change in standardized measure of discounted future net cash flows
$
—

 
$
(8,339
)
 
$
558

 
 
 
 
 
 
Equity investment in Grizzly Oil Sands ULC Changes in standardized measure of discounted cash flows
 
 
 
 
 
Sales and transfers of oil and gas produced, net of production costs
$
4,664

 
$
—

 
$
—

Net changes in prices, production costs, and development costs
(76,518
)
 
—

 
—

Acquisition of oil and gas reserves in place
—

 
—

 
—

Extensions and discoveries
7,107

 
—

 
—

Previously estimated development costs incurred during the period
—

 
—

 
—

Revisions of previous quantity estimates, less related production costs
10,659

 
—

 
—

Accretion of discount
14,946

 
—

 
—

Net changes in income taxes
9,162

 
—

 
—

Change in production rates and other
(25,738
)
 
—

 
—

Total change in standardized measure of discounted future net cash flows
$
(55,718
)
 
$
—

 
$
—