XML 85 R46.htm IDEA: XBRL DOCUMENT v3.22.4
Supplemental Information on Oil and Natural Gas Producing Activities (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2022
Extractive Industries [Abstract]  
Capitalized Costs Relating to Oil, Natural Gas and NGL Producing Activities The Company’s capitalized costs for oil and natural gas activities consisted of the following (in thousands):
 December 31,
 20222021
Oil and natural gas properties
Proved$1,507,690 $1,454,016 
Unproved11,516 12,255 
Total oil and natural gas properties1,519,206 1,466,271 
Less accumulated depreciation, depletion and impairment(1,380,574)(1,373,217)
Net oil and natural gas properties capitalized costs$138,632 $93,054 
Cost Incurred in Oil and Natural Gas Property Acquisition, Exploration, and Development
Costs incurred in oil and natural gas property acquisition, exploration and development activities which have been capitalized are summarized as follows (in thousands):
Year Ended December 31,
202220212020
Acquisitions of properties
Proved$1,431 $3,545 $3,701 
Unproved— — — 
Exploration (1)809 905 1,005 
Development48,399 10,045 3,563 
Total cost incurred$50,639 $14,495 $8,269 
____________________
(1)    Includes land, geological, geophysical and leasehold costs.
Results of Operations for Oil, Natural Gas and NGL Producing Activities
The following table presents the Company’s results of operations from oil and natural gas producing activities (in thousands), which exclude any interest costs or indirect general and administrative costs and, therefore, are not necessarily indicative of the impact the Company’s operations have on actual net earnings.
Year Ended December 31,
202220212020
Revenues$254,258 $168,882 $114,450 
Expenses
Production costs57,221 46,309 53,474 
Depreciation and depletion11,542 9,372 50,349 
Impairment — — 218,399 
Total expenses68,763 55,681 322,222 
Income (loss) before income taxes185,495 113,201 (207,772)
Income tax expense (benefit) (1)45,055 26,734 (51,750)
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs)$140,440 $86,467 $(156,022)
____________________
(1)    Income tax (benefit) expense is hypothetical and is calculated by applying the Company’s statutory tax rate to (loss) income before income taxes attributable to our oil and natural gas producing activities, after giving effect to permanent differences and tax credits.
Summary of Changes in Estimated Oil, Natural Gas and NGL Reserves
The summary below presents changes in the Company’s estimated reserves. NPB is included in 2021, 2020 and 2019.
OilNGLNatural GasTotal
 (MBbls)(MBbls)(MMcf) (1)MBoe
Proved developed and undeveloped reserves
As of December 31, 201935,308 15,859 232,307 89,885 
Revisions of previous estimates (2)(24,650)(2,246)(107,426)(44,800)
Acquisitions of new reserves74 437 3,391 1,076 
Sales of reserves in place(163)(111)(1,827)(579)
Production(2,084)(2,694)(23,552)(8,703)
As of December 31, 20208,485 11,245 102,893 36,879 
Revisions of previous estimates (2)3,627 14,924 148,736 43,340 
Acquisitions of new reserves135 438 5,235 1,446 
Sales of reserves in place(3,440)(28)(716)(3,587)
Production(957)(2,266)(21,417)(6,793)
As of December 31, 20217,850 24,313 234,731 71,285 
Revisions of previous estimates (2)971 2,825 25,841 8,102 
Acquisitions of new reserves39 65 528 192 
Extensions and discoveries510 227 2,823 1,208 
Production(949)(1,997)(21,101)(6,463)
As of December 31, 20228,421 25,433 242,822 74,324 
Proved developed reserves
As of December 31, 201914,078 14,532 200,853 62,086 
As of December 31, 20208,485 11,245 102,893 36,879 
As of December 31, 20217,850 24,313 234,731 71,285 
As of December 31, 20228,421 25,433 242,822 74,324 
Proved undeveloped reserves
As of December 31, 201921,230 1,327 31,454 27,799 
As of December 31, 2020— — — — 
As of December 31, 2021— — — — 
As of December 31, 2022— — — — 
_________________
(1)    Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit.
(2)    Revisions include changes due to previous quantity estimates, pricing, productions costs, and other commercial factors.
Calculation of Weighted Average Per Unit Prices The calculated weighted average per unit prices for the Company’s proved reserves and future net revenues were as follows:
 At December 31,
 202220212020
Oil (per Bbl)$93.73 $64.95 $36.54 
NGL (per Bbl)$33.42 $19.26 $6.40 
Natural gas (per Mcf)$4.76 $2.56 $0.87 
Standardized Measure of Discounted Future Cash Flows
The summary below presents the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure in ASC Topic 932 (in thousands).
December 31,
202220212020
Future cash inflows from production$2,795,762 $1,579,734 $471,038 
Future production costs (1)(1,131,145)(735,904)(270,512)
Future development costs (2)(36,730)(66,732)(81,687)
Future income tax expenses (3)(17,780)— — 
Undiscounted future net cash flows1,610,107 777,098 118,839 
10% annual discount(803,242)(344,184)(13,853)
Standardized measure of discounted future net cash flows (4)$806,865 $432,914 $104,986 
____________________
(1)    Consists of severance taxes, ad valorem taxes, and lease operating expenses.
(2)    Includes abandonment costs.
(3)    The future income tax expenses have been computed using statutory tax rates, giving effect to allowable tax deductions and tax credits under current laws, including expected tax benefits to be realized from the utilization of net operating loss carryforwards.
(4)    NPB is included in 2020.
Estimate of Changes in Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves
The following table represents the Company’s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands):
Year Ended December 31,
202220212020
Beginning present value $432,914 $104,986 $364,290 
Changes during the year
Revenues less production(197,419)(122,964)(61,407)
Net changes in prices, production and other costs465,116 380,026 (135,652)
Development costs incurred846 83 — 
Net changes in future development costs (1)3,028 446 (2,167)
Extensions and discoveries36,984 — — 
Revisions of previous quantity estimates (1)98,579 112,926 (99,533)
Accretion of discount34,138 6,016 36,429 
Net change in income taxes(3,798)— — 
Purchases of reserves in-place3,039 15,541 4,744 
Sales of reserves in-place— (29,792)(1,067)
Timing differences and other (2)(66,562)(34,354)(651)
Net change for the year373,951 327,928 (259,304)
Ending present value (3) (4)$806,865 $432,914 $104,986 
____________________
(1)     The change in estimated future development costs and revisions of previous quantity estimates primarily reflect increases from the well reactivation program as a result of more producing wells and extended reserve life due to increase in pricing.
(2)     The change in timing differences and other are related to revisions in the Company's estimated time of production and development.
(3)    Standardized Measure was determined using SEC prices, and does not reflect actual prices received or current market prices.
(4)    NPB is included in 2020.