SUPPLEMENTAL FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2014

SUPPLEMENTAL FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES [Abstract]

Net Costs Incurred in Purchase of Proved and Unproved Properties, and in Exploration and Development Activities

The following table presents information regarding USE's net costs incurred in the purchase of proved and unproved properties, and in exploration and development activities:

	(In thousands)
	December 31,		December 31,
	2014		2013
Proved oil and gas properties	$	147,486	$	136,521
Unproved		10,188		7,478
Exploratory wells in progress		2,357		--
	$	160,031	$	143,999

Undeveloped Properties

Undeveloped properties as of December 31, 2014 include costs incurred in the following years:

	(In thousands)
	Acquisitions		Exploration		Development		Total
2010	$	103	$	--	$	--	$	103
2011		4,015		--		--		4,015
2012		271		--		--		271
2013		2,067		--		--		2,067
2014		3,732		--		--		3,732
Total	$	10,188	$	--	$	--	$	10,188

Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development

Costs incurred in oil and natural gas property acquisition, exploration and development activities are summarized below:

	(In thousands)
	Year Ended December 31,
	2014		2013		2012
Property acquisition costs:
Proved	$	552	$	445	$	2,987
Unproved		4,167		1,760		1,416
Exploration costs		14,791		9,138		10,943
Development costs		8,037		9,403		20,134
Total costs incurred	$	27,547	$	20,746	$	35,480

Summary of Results of Operations

Results of operations from oil and natural gas producing activities are presented below:

	(In thousands)
	For the years ending December 31,
	2014		2013		2012
Revenues	$	32,379	$	33,647	$	32,534
Operating expenses		10,638		10,469		10,788
Depreciation, depletion and amortization		14,685		13,623		14,893
Impairment		--		5,828		5,189
		25,323		29,920		30,870
Operating income	$	7,056	$	3,727	$	1,664

Estimated Quantities of Proved Oil and Natural Gas Reserves and Changes in Net Proved Reserves

USE's net ownership interests in estimated quantities of proved oil and natural gas reserves and changes in net proved reserves, all of which are located in the continental United States, are summarized below:

December 31, 2014	Oil (BBLS)			Natural Gas or NGL (MCFE)
Beginning of year		3,459,713			2,371,908
Revisions of previous quantity estimates		(262,570	)		802,241
Extensions, discoveries and improved recoveries		1,583,292			1,006,659
Purchase of reserves in place		--			--
Sales of reserves in place		(330,871	)		(156,482	)
Production		(329,828	)		(813,081	)
End of year		4,119,736			3,211,245
Proved developed reserves at end of year		1,754,668			1,892,446
December 31, 2013	Oil (BBLS)			Natural Gas or NGL (MCFE)
Beginning of year		2,613,643			1,798,088
Revisions of previous quantity estimates		(162,957	)		382,690
Extensions, discoveries and improved recoveries		1,352,746			678,412
Purchase of reserves in place		--			--
Sales of reserves in place		--			--
Production		(343,719	)		(487,282	)
End of year		3,459,713			2,371,908
Proved developed reserves at end of year		1,875,528			1,701,282

Summary of Standardized Measure

The standardized measure of discounted future net cash flows relating to USE's ownership interests in proved oil and natural gas reserves as of year-end is shown below:

	(In thousands)
	Year Ended December 31,
	2014			2013			2012
Future cash inflows	$	381,156		$	330,245		$	237,148
Future costs:
Production		(149,450	)		(129,392	)		(96,616	)
Development		(70,770	)		(37,739	)		(21,461	)
Future income tax expense		(12,719	)		(14,500	)		(8,483	)
Future net cash flows		148,217			148,614			110,588
10% discount factor		(66,328	)		(43,761	)		(39,571	)
Standardized measure of discounted future net cash flows	$	81,889		$	104,853		$	71,017

Changes in Standardized Measure

Changes in standardized measure of future net cash flows relating to proved oil and natural gas reserves are summarized below:

	(In thousands)
	Year Ended December 31,
	2014			2013			2012
Balance at beginning of period	$	104,853		$	71,017		$	62,191
Sales of oil and gas, net of production costs		(21,741	)		(23,179	)		(21,747	)
Net change in prices and production costs		(17,376	)		2,543			(4,548	)
Changes in estimated future development costs		(1,869	)		(6,414	)		(9,706	)
Extensions and discoveries		14,706			54,360			23,297
Purchase of reserves in place		--			--			2,573
Sale of reserves in place		(13,339	)		--			(13,573	)
Revisions of previous quantity estimates		(4,815	)		(2,961	)		(5,927	)
Previously estimated development costs incurred during the period		7,175			8,344			22,808
Net change in income taxes		6,924			(4,245	)		7,261
Accretion of discount		10,090			7,647			7,254
Changes in production rates, timing and other		(2,719	)		(2,259	)		1,134
Balance at end of period	$	81,889		$	104,853		$	71,017