Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2016

The following tables set forth our segment information for the periods indicated (in thousands):


	Three Months Ended September 30, 2016
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	4,434	$	—	$	4,434
Oil sales		2,159		—		2,159
Natural gas liquids sales		264		—		264
Gathering and transportation sales		—		12,997		12,997
Total operating revenues		6,857		12,997		19,854

Operating expenses:
Lease operating expenses		2,651		116		2,767
Transportation operating expenses		—		3,111		3,111
Cost of sales		99		—		99
Production taxes		290		—		290
General and administrative		4,778		1,508		6,286
Unit compensation expense		90		—		90
Loss on sale of assets		219		—		219
Depreciation, depletion and amortization		2,411		5,096		7,507
Accretion expense		207		64		271
Total operating expenses		10,745		9,895		20,640
Other expense (income)
Operating income (loss)	$	(3,888)	$	3,102	$	(786)


	Three Months Ended September 30, 2015
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	5,730	$	—	$	5,730
Oil sales		19,501		—		19,501
Natural gas liquids sales		394		—		394
Gathering and transportation sales		—		—		—
Total operating revenues		25,625		—		25,625

Operating expenses:
Lease operating expenses		5,194		—		5,194
Cost of sales		139		—		139
Production taxes		443		—		443
General and administrative		7,301		—		7,301
Unit compensation expense		75		—		75
Loss on sale of assets		2		—		2
Depreciation, depletion and amortization		2,851		—		2,851
Asset impairments		937		—		937
Accretion expense		265		—		265
Total operating expenses		17,207		—		17,207

Operating income	$	8,418	$	—	$	8,418


	Nine Months Ended September 30, 2016
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	8,709	$	—	$	8,709
Oil sales		4,746		—		4,746
Natural gas liquids sales		784		—		784
Gathering and transportation sales		—		41,130		41,130
Total operating revenues		14,239		41,130		55,369

Operating expenses:
Lease operating expenses		11,430		488		11,918
Transportation operating expenses		—		9,179		9,179
Cost of sales		292		—		292
Production taxes		837		—		837
General and administrative		12,762		4,221		16,983
Unit compensation expense		1,619		—		1,619
Loss on sale of assets		219		—		219
Depreciation, depletion and amortization		5,560		15,264		20,824
Asset impairments		1,309		—		1,309
Accretion expense		714		187		901
Total operating expenses		34,742		29,339		64,081

Operating income (loss)	$	(20,503)	$	11,791	$	(8,712)


	Nine Months Ended September 30, 2015
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	15,946	$	—	$	15,946
Oil sales		25,104		—		25,104
Natural gas liquids sales		1,280		—		1,280
Gathering and transportation sales		—		—		—
Total operating revenues		42,330		—		42,330

Operating expenses:
Lease operating expenses		15,452		—		15,452
Cost of sales		469		—		469
Production taxes		1,396		—		1,396
General and administrative		18,206		—		18,206
Unit compensation expense		2,463		—		2,463
Gain on sale of assets		(111)		—		(111)
Depreciation, depletion and amortization		9,050		—		9,050
Asset impairments		84,664		—		84,664
Accretion expense		782		—		782
Total operating expenses		132,371		—		132,371

Operating loss	$	(90,041)	$	—	$	(90,041)

The following table summarizes the total assets by operating segment as of September 30, 2016 and December 31, 2015 (in thousands):