Oil and Natural Gas Properties

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Note 5 – Oil and Natural Gas Properties

The Company’s oil and natural gas properties are in the continental United States. The oil and natural gas properties include the following:



	September 30, 2018			December 31, 2017
	(in thousands)
Oil and natural gas properties
Proved	$	1,276,950		$	750,492
Unproved	1,152,942			1,126,459
Less: accumulated depreciation, depletion, amortization and impairment	(183,557		)	(78,307		)
Oil and natural gas properties, net	$	2,246,335		$	1,798,644

The Company recorded depletion expense on capitalized oil and natural gas properties of $36.7 million and $10.7 million for the three months ended September 30, 2018 and 2017, respectively, and $82.4 million and $22.0 million for the nine months ended September 30, 2018 and 2017, respectively.

For the three and nine months ended September 30, 2018, the Company recorded amortization expense on its unproved oil and natural gas properties of $11.2 million and $25.6 million, respectively, which is reflected in exploration expense on the accompanying condensed consolidated statements of operations. There was no such expense recorded for the three and nine months ended September 30, 2017. Unproved leasehold amortization for the three and nine months ended September 30, 2018 reflects consideration of the Company’s drilling plans and the lease terms of its existing unproved properties. For the three and nine months ended September 30, 2017, the Company recorded impairment expense on its unproved oil and natural gas properties of $4.2 million and $4.5 million, respectively, for leases which expired. No impairment of proved oil and natural gas properties was recorded for the three and nine months ended September 30, 2018.