Annual report pursuant to Section 13 and 15(d)

Supplemental Information on Oil and Gas Exploration and Production Activities (Unaudited) (Tables)

v3.6.0.2
Supplemental Information on Oil and Gas Exploration and Production Activities (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2016
Extractive Industries [Abstract]  
Capitalized Costs Relating to Oil and Gas Producing Activities
Capitalized Costs Related to Oil and Gas Producing Activities
 
2016
 
2015
 
(In thousands)
Proven properties
$
4,491,615

 
$
3,606,641

Unproven properties
1,580,305

 
1,817,701

 
6,071,920

 
5,424,342

Accumulated depreciation, depletion, amortization and impairment reserve
(3,778,043
)
 
(2,820,113
)
Net capitalized costs
$
2,293,877

 
$
2,604,229

 
 
 
 
Equity investment in Grizzly Oil Sands ULC
 
 
 
Proven properties
$
70,266

 
$
81,473

Unproven properties
80,892

 
82,388

 
151,158

 
163,861

Accumulated depreciation, depletion, amortization and impairment reserve
(1,578
)
 
(1,531
)
Net capitalized costs
$
149,580

 
$
162,330

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities
Costs Incurred in Oil and Gas Property Acquisition and Development Activities
 
2016
 
2015
 
2014
 
(In thousands)
Acquisition
$
152,887

 
$
810,755

 
$
440,288

Development of proved undeveloped properties
423,998

 
642,811

 
864,511

Exploratory
—

 
—

 
2,249

Recompletions
16,386

 
13,894

 
45,658

Capitalized asset retirement obligation
10,971

 
8,800

 
2,095

Total
$
604,242

 
$
1,476,260

 
$
1,354,801

 
 
 
 
 
 
Equity investment in Grizzly Oil Sands ULC
 
 
 
 
 
Acquisition
$
357

 
$
396

 
$
1,230

Development of proved undeveloped properties
—

 
47

 
7,107

Exploratory
—

 
—

 
—

Capitalized asset retirement obligation
784

 
282

 
1,055

Total
$
1,141

 
$
725

 
$
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.
 
2016
 
2015
 
2014
 
(In thousands)
Revenues
$
385,910

 
$
708,990

 
$
670,762

Production costs
(248,125
)
 
(222,805
)
 
(140,664
)
Depletion
(243,098
)
 
(335,288
)
 
(263,946
)
Impairment
(715,495
)
 
(1,440,418
)
—

—

 
(820,808
)
 
(1,289,521
)
 
266,152

Income tax (benefit) expense
 
 
 
 
 
Current
—

 
—

 
—

Deferred
—

 
(220,201
)
 
96,061

 
—

 
(220,201
)
 
96,061

Results of operations from producing activities
$
(820,808
)
 
$
(1,069,320
)
 
$
170,091

Depletion per Mcf of gas equivalent (Mcfe)
$
0.92

 
$
1.68

 
$
3.01

 
 
 
 
 
 
Results of Operations from equity method investment in Grizzly Oil Sands ULC
 
 
 
 
 
Revenues
$
—

 
$
1,436

 
$
5,449

Production costs
(13
)
 
(1,549
)
 
(10,113
)
Depletion
—

 
(625
)
 
(1,195
)
 
(13
)
 
(738
)
 
(5,859
)
Income tax expense
—

 
—

 
—

Results of operations from producing activities
$
(13
)
 
$
(738
)
 
$
(5,859
)
Oil and Gas Reserves
These estimates are reviewed annually and revised, either upward or downward, as warranted by additional performance data.
 
2016
 
2015
 
2014
 
Oil
 
Gas
 
NGL
 
Oil
 
Gas
 
NGL
 
Oil
 
Gas
 
NGL
 
(MBbls)
 
(MMcf)
 
(MBbls)
 
(MBbls)
 
(MMcf)
 
(MBbls)
 
(MBbls)
 
(MMcf)
 
(MBbls)
Proved Reserves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of the period
6,458

 
1,560,145

 
17,736

 
9,497

 
719,006

 
26,268

 
8,346

 
146,446

 
5,675

Purchases in oil and gas reserves in place
—

 
—

 
—

 
—

 
371,663

 
—

 
173

 
8,863

 
353

Extensions and discoveries
1,217

 
1,082,220

 
7,677

 
2,413

 
997,057

 
5,486

 
4,975

 
629,151

 
22,594

Revisions of prior reserve estimates
(3
)
 
(247,703
)
 
(1,439
)
 
(2,553
)
 
(371,430
)
 
(9,594
)
 
(1,313
)
 
(6,136
)
 
(304
)
Current production
(2,126
)
 
(227,594
)
 
(3,847
)
 
(2,899
)
 
(156,151
)
 
(4,424
)
 
(2,684
)
 
(59,318
)
 
(2,050
)
End of period
5,546

 
2,167,068

 
20,127

 
6,458

 
1,560,145

 
17,736

 
9,497

 
719,006

 
26,268

Proved developed reserves
4,882

 
744,797

 
14,299

 
6,120

 
652,961

 
12,910

 
5,719

 
345,166

 
12,379

Proved undeveloped reserves
664

 
1,422,271

 
5,828

 
338

 
907,184

 
4,826

 
3,778

 
373,840

 
13,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity investment in Grizzly Oil Sands ULC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of the period
—

 
—

 
—

 
14,558

 
—

 
—

 
13,637

 
—

 
—

Purchases in oil and gas reserves in place
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Extensions and discoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Revisions of prior reserve estimates
—

 
—

 
—

 
(14,530
)
 
—

 
—

 
990

 
—

 
—

Current production
—

 
—

 
—

 
(28
)
 
—

 
—

 
(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,
 
2016
 
2015
 
2014
 
(In thousands)
Future cash flows
$
3,354,168

 
$
3,043,450

 
$
4,667,678

Future development and abandonment costs
(1,165,025
)
 
(877,660
)
 
(719,898
)
Future production costs
(924,167
)
 
(941,243
)
 
(880,427
)
Future production taxes
(69,447
)
 
(58,169
)
 
(71,229
)
Future income taxes
(14,545
)
 
(2,648
)
 
(693,154
)
Future net cash flows
1,180,984

 
1,163,730

 
2,302,970

10% discount to reflect timing of cash flows
(492,944
)
 
(399,399
)
 
(875,803
)
Standardized measure of discounted future net cash flows
$
688,040

 
$
764,331

 
$
1,427,167

 
 
 
 
 
 
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,
 
2016
 
2015
 
2014
 
(In thousands)
Sales and transfers of oil and gas produced, net of production costs
$
(312,291
)
 
$
(486,185
)
 
$
(530,098
)
Net changes in prices, production costs, and development costs
(146,518
)
 
(1,412,181
)
 
97,716

Acquisition of oil and gas reserves in place
—

 
83,340

 
14,266

Extensions and discoveries
186,909

 
262,895

 
790,533

Previously estimated development costs incurred during the period
176,218

 
117,540

 
68,227

Revisions of previous quantity estimates, less related production costs
(38,448
)
 
(98,162
)
 
(37,801
)
Accretion of discount
76,433

 
142,717

 
57,847

Net changes in income taxes
(6,495
)
 
412,240

 
(295,226
)
Change in production rates and other
(12,099
)
 
314,960

 
683,237

Total change in standardized measure of discounted future net cash flows
$
(76,291
)
 
$
(662,836
)
 
$
848,701

 
 
 
 
 
 
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
$
—

 
$
114

 
$
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
—

 
47

 
—

Revisions of previous quantity estimates, less related production costs
—

 
(103,282
)
 
10,659

Accretion of discount
—

 
9,375

 
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
$
—

 
$
(93,746
)
 
$
(55,718
)