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Reporting Segments (Tables)
12 Months Ended
Dec. 31, 2016
Reporting Segments  
Schedule of Segment Information

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

 

 

 

 

 

 

 

 

 

 

 

    

For the Year Ended December 31, 2016

 

    

Production

    

Midstream

    

Total

Operating revenues

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

10,408

 

$

 —

 

$

10,408

Oil sales

 

 

5,138

 

 

 —

 

 

5,138

Natural gas liquids sales

 

 

1,167

 

 

 —

 

 

1,167

Gathering and transportation sales

 

 

 —

 

 

53,972

 

 

53,972

Total operating revenues

 

 

16,713

 

 

53,972

 

 

70,685

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

 

14,327

 

 

654

 

 

14,981

Transportation operating expenses

 

 

 —

 

 

12,478

 

 

12,478

Cost of sales

 

 

328

 

 

 —

 

 

328

Production taxes

 

 

1,167

 

 

 —

 

 

1,167

General and administrative

 

 

17,178

 

 

5,723

 

 

22,901

Unit compensation expense

 

 

1,941

 

 

 —

 

 

1,941

Loss on sale of assets

 

 

219

 

 

 —

 

 

219

Depreciation, depletion and amortization

 

 

6,722

 

 

27,077

 

 

33,799

Asset impairments

 

 

7,646

 

 

 —

 

 

7,646

Accretion expense

 

 

875

 

 

252

 

 

1,127

Total operating expenses 

 

 

50,403

 

 

46,184

 

 

96,587

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

    

$

(33,690)

 

$

7,788

 

$

(25,902)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

For the Year Ended December 31, 2015

 

    

Production

    

Midstream

    

Total

Operating revenues

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

19,809

 

$

 —

 

$

19,809

Oil sales

 

 

35,297

 

 

 —

 

 

35,297

Natural gas liquids sales

 

 

1,597

 

 

 —

 

 

1,597

Gathering and transportation sales

 

 

 —

 

 

11,725

 

 

11,725

Total operating revenues

 

 

56,703

 

 

11,725

 

 

68,428

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

 

19,890

 

 

98

 

 

19,988

Transportation operating expenses

 

 

 —

 

 

2,176

 

 

2,176

Cost of sales

 

 

595

 

 

 —

 

 

595

Production taxes

 

 

1,792

 

 

 —

 

 

1,792

General and administrative

 

 

23,655

 

 

 —

 

 

23,655

Unit-based compensation expense

 

 

2,454

 

 

 —

 

 

2,454

Exploration costs

 

 

1,866

 

 

 —

 

 

1,866

Loss on sale of assets

 

 

(111)

 

 

 —

 

 

(111)

Depreciation, depletion and amortization

 

 

10,330

 

 

4,206

 

 

14,536

Asset impairments

 

 

123,860

 

 

 —

 

 

123,860

Accretion expense

 

 

1,048

 

 

51

 

 

1,099

Total operating expenses 

 

 

185,379

 

 

6,531

 

 

191,910

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(128,676)

 

$

5,194

 

$

(123,482)

 

Summary of Total Assets by Operating Segment

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

 

 

 

 

 

 

 

 

 

 

December 31, 

 

    

 

2016

 

 

2015

Segment Assets

 

 

 

 

 

 

Production

 

$

207,219

 

$

118,083

Midstream

 

 

332,486

 

 

353,217

Total assets 

 

$

539,705

 

$

471,300

 

Summary of Percentage of Revenue Earned from Customers by Segment

 

 

 

 

 

 

 

 

 

 

For the Years Ended

 

 

 

December 31, 

 

 

    

2016

    

2015

    

Production

 

 

 

 

 

 

 

Macquarie Cook Energy, LLC.

 

 

6

%

 

17

%

All other

 

 

18

 

 

66

 

Midstream

 

 

 

 

 

 

 

Sanchez Energy

 

 

76

%

 

17

%

Total

 

 

100

%

 

100

%