Subsequent events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent events

Note 14. Subsequent events

Midland Basin acquisition. In July 2017, the Company completed an acquisition in the Midland Basin. As consideration for the acquisition, the Company paid approximately $600 million in cash, of which $60 million was held in escrow at June 30,2017 with the remaining $540 million paid in July 2017. The acquisition is subject to customary post-closing adjustments.

New commodity derivative contracts.After June 30,2017, the Company entered into the following oil price swaps and oil basis swaps to hedge additional amounts of the Company’s estimated future production:

				First		Second		Third		Fourth
				Quarter		Quarter		Quarter		Quarter		Total
Oil Price Swaps: (a)
	2017:
		Volume (Bbl)						1,253,000		1,354,000		2,607,000
		Price per Bbl					$	47.76	$	47.73	$	47.74
	2018:
		Volume (Bbl)		1,059,000		869,000		747,000		669,000		3,344,000
		Price per Bbl	$	48.33	$	48.26	$	48.20	$	48.15	$	48.25
	2019:
		Volume (Bbl)		1,002,000		940,000		885,000		845,000		3,672,000
		Price per Bbl	$	49.26	$	49.24	$	49.27	$	49.26	$	49.26
Oil Basis Swaps: (b)
	2017:
		Volume (Bbl)						915,000		1,380,000		2,295,000
		Price per Bbl					$	(1.28)	$	(1.28)	$	(1.28)
	2018:
		Volume (Bbl)		630,000		637,000		644,000		644,000		2,555,000
		Price per Bbl	$	(1.11)	$	(1.11)	$	(1.11)	$	(1.11)	$	(1.11)
	2019:
		Volume (Bbl)		810,000		819,000		828,000		828,000		3,285,000
		Price per Bbl	$	(1.12)	$	(1.12)	$	(1.12)	$	(1.12)	$	(1.12)
(a)	The index prices for the oil price swaps are based on the NYMEX – WTI monthly average futures price.
(b)	The basis differential price is between Midland – WTI and Cushing – WTI.