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Disclosures about oil and natural gas activities (unaudited) (Tables)
12 Months Ended
Dec. 31, 2017
Oil And Gas Exploration And Production Industries Disclosures [Abstract]  
Summary of changes in quantities of proved oil and natural gas reserves

Our oil and natural gas reserves are attributable solely to properties within the United States. A summary of the changes in our quantities of proved oil and natural gas reserves for the three years ended December 31, 2017 are as follows:

 

 

 

Oil

(MBbls)

 

 

Natural gas (MMcf)

 

 

Natural gas liquids

(MBbls)

 

 

Total

(MBoe)

 

Proved developed and undeveloped reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of January 1, 2015

 

 

101,247

 

 

 

247,756

 

 

 

16,853

 

 

 

159,393

 

Purchase of minerals in place

 

 

38

 

 

 

1,120

 

 

 

46

 

 

 

271

 

Sales of minerals in place

 

 

(2,225

)

 

 

(3,656

)

 

 

(117

)

 

 

(2,951

)

Extensions and discoveries

 

 

3,651

 

 

 

13,759

 

 

 

1,096

 

 

 

7,040

 

Revisions (1)

 

 

(19,840

)

 

 

(61,973

)

 

 

(4,257

)

 

 

(34,426

)

Improved recoveries (2)

 

 

36,414

 

 

 

 

 

 

 

 

 

36,414

 

Production

 

 

(5,519

)

 

 

(18,788

)

 

 

(1,550

)

 

 

(10,200

)

Balance at December 31, 2015

 

 

113,766

 

 

 

178,218

 

 

 

12,071

 

 

 

155,541

 

Extensions and discoveries

 

 

4,037

 

 

 

18,085

 

 

 

1,499

 

 

 

8,550

 

Revisions (1)

 

 

(16,312

)

 

 

(44,965

)

 

 

(57

)

 

 

(23,864

)

Production

 

 

(4,870

)

 

 

(15,889

)

 

 

(1,408

)

 

 

(8,926

)

Balance at December 31, 2016

 

 

96,621

 

 

 

135,449

 

 

 

12,105

 

 

 

131,301

 

Sales of minerals in place

 

 

(74,918

)

 

 

(1,663

)

 

 

(46

)

 

 

(75,241

)

Extensions and discoveries

 

 

8,957

 

 

 

39,843

 

 

 

5,442

 

 

 

21,040

 

Revisions (1)

 

 

3,515

 

 

 

11,135

 

 

 

2,216

 

 

 

7,586

 

Production

 

 

(4,571

)

 

 

(14,598

)

 

 

(1,395

)

 

 

(8,399

)

Balance at December 31, 2017

 

 

29,604

 

 

 

170,166

 

 

 

18,322

 

 

 

76,287

 

Proved developed reserves:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2015

 

 

54,862

 

 

 

158,265

 

 

 

11,787

 

 

 

93,027

 

December 31, 2015

 

 

40,300

 

 

 

132,323

 

 

 

9,169

 

 

 

71,524

 

December 31, 2016

 

 

28,590

 

 

 

108,800

 

 

 

9,352

 

 

 

56,076

 

December 31, 2017

 

 

18,301

 

 

 

123,451

 

 

 

11,858

 

 

 

50,734

 

Proved undeveloped reserves:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2015

 

 

46,385

 

 

 

89,491

 

 

 

5,066

 

 

 

66,366

 

December 31, 2015

 

 

73,466

 

 

 

45,895

 

 

 

2,902

 

 

 

84,017

 

December 31, 2016

 

 

68,031

 

 

 

26,649

 

 

 

2,753

 

 

 

75,225

 

December 31, 2017

 

 

11,303

 

 

 

46,715

 

 

 

6,464

 

 

 

25,553

 

(1)

The upward revision in 2017 was due to changes in pricing and costs. The downward revision in our reserves during 2016 was primarily due to removing proved undeveloped reserves that are not expected to be developed within the five-year time frame mandated by the SEC, revision in the base water flood decline curve at our North Burbank Unit, and the decline in SEC pricing. The downward revision in our reserves during 2015 was primarily due to the decline in SEC pricing which resulted in future extraction of certain reserves being uneconomic.

(2)

Improved recoveries in 2015 resulted from the addition of reserves from remaining future phases of CO2 injection at our North Burbank EOR unit.

Standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves

The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows:

 

 

Successor

 

 

 

Predecessor

 

 

 

December 31,

 

 

 

December 31,

 

 

 

2017

 

 

 

2016

 

 

2015

 

Future cash flows

 

$

2,331,940

 

 

 

$

4,635,481

 

 

$

6,327,363

 

Future production costs

 

 

(899,380

)

 

 

 

(1,998,001

)

 

 

(2,670,692

)

Future development and abandonment costs

 

 

(336,828

)

 

 

 

(1,147,390

)

 

 

(1,536,063

)

Future income tax provisions

 

 

 

 

 

 

 

 

 

(89,999

)

Net future cash flows

 

 

1,095,732

 

 

 

 

1,490,090

 

 

 

2,030,609

 

Less effect of 10% discount factor

 

 

(597,859

)

 

 

 

(961,309

)

 

 

(1,345,920

)

Standardized measure of discounted future net cash flows

 

$

497,873

 

 

 

$

528,781

 

 

$

684,689

 

 

Changes in standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves

The changes in the standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows:

 

 

For the year ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Beginning of year

 

$

528,781

 

 

$

684,689

 

 

$

1,894,700

 

Sale of oil and natural gas produced, net of production costs

 

 

(175,246

)

 

 

(141,732

)

 

 

(196,319

)

Net changes in prices and production costs

 

 

125,795

 

 

 

(296,299

)

 

 

(2,230,601

)

Extensions and discoveries

 

 

136,887

 

 

 

79,990

 

 

 

101,384

 

Improved recoveries

 

 

 

 

 

 

 

 

524,436

 

Changes in future development costs

 

 

(4,879

)

 

 

278,653

 

 

 

204,199

 

Development costs incurred during the period that reduced future

   development costs

 

 

37,912

 

 

 

63,894

 

 

 

80,103

 

Revisions of previous quantity estimates (1)

 

 

68,428

 

 

 

(223,218

)

 

 

(495,794

)

Purchases and sales of reserves in place, net

 

 

(238,445

)

 

 

 

 

 

(47,079

)

Accretion of discount

 

 

24,267

 

 

 

68,545

 

 

 

237,134

 

Net change in income taxes

 

 

 

 

 

21,139

 

 

 

605,766

 

Changes in production rates and other

 

 

(5,627

)

 

 

(6,880

)

 

 

6,760

 

End of year

 

$

497,873

 

 

$

528,781

 

 

$

684,689

 

(1)

Amounts in 2017 are primarily the result of increased volumes due to changes in pricing and costs. Amounts in 2016 are primarily the result of removing proved undeveloped reserves that are not expected to be developed within the five years, a revision in the base water flood decline curve at our North Burbank Unit and the decline in SEC pricing which resulted in future extraction of certain reserves being uneconomic. Amounts in 2015 are primarily the result of the decrease in SEC pricing, lower margins on existing reserves and a decrease in taxes as a result of the lower margins.

Prices Used In Determining Future Net Revenues Related To The Standardized Measure Of Discounted Future Cash Flows Table Text Block

The following prices for oil, natural gas, and natural gas liquids before field differentials were used in determining future net revenues related to the standardized measure calculation.

 

 

2017

 

 

2016

 

 

2015

 

Oil (per Bbl)

 

$

51.34

 

 

$

42.75

 

 

$

50.28

 

Natural gas (per Mcf)

 

$

2.98

 

 

$

2.49

 

 

$

2.58

 

Natural gas liquids (per Bbl)

 

$

24.17

 

 

$

13.47

 

 

$

15.84