Reporting Segments (Tables)

6 Months Ended

Jun. 30, 2017

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


	Three Months Ended June 30, 2017
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	2,252	$	—	$	2,252
Oil sales		8,109		—		8,109
Natural gas liquids sales		492		—		492
Gathering and transportation sales		—		14,176		14,176
Total operating revenues		10,853		14,176		25,029

Operating expenses:
Lease operating expenses		3,648		233		3,881
Transportation operating expenses		—		3,032		3,032
Cost of sales		40		—		40
Production taxes		353		—		353
General and administrative		4,892		1,461		6,353
Unit-based compensation expense		780		—		780
Depreciation, depletion and amortization		2,924		6,013		8,937
Accretion expense		172		68		240
Total operating expenses		12,809		10,807		23,616

Operating income (loss)	$	(1,956)	$	3,369	$	1,413


	Three Months Ended June 30, 2016
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	600	$	—	$	600
Oil sales		(2,756)		—		(2,756)
Natural gas liquids sales		244		—		244
Gathering and transportation sales		—		14,258		14,258
Total operating revenues		(1,912)		14,258		12,346

Operating expenses:
Lease operating expenses		3,905		273		4,178
Transportation operating expenses		—		3,014		3,014
Cost of sales		63		—		63
Production taxes		326		—		326
General and administrative		3,550		1,428		4,978
Unit-based compensation expense		1,091		—		1,091
Depreciation, depletion and amortization		1,035		5,094		6,129
Accretion expense		253		62		315
Total operating expenses		10,223		9,871		20,094

Operating income (loss)	$	(12,135)	$	4,387	$	(7,748)


	Six Months Ended June 30, 2017
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	5,031	$	—	$	5,031
Oil sales		19,459		—		19,459
Natural gas liquids sales		959		—		959
Gathering and transportation sales		—		25,387		25,387
Total operating revenues		25,449		25,387		50,836

Operating expenses:
Lease operating expenses		8,372		492		8,864
Transportation operating expenses		—		6,328		6,328
Cost of sales		77		—		77
Production taxes		826		—		826
General and administrative		8,996		2,966		11,962
Unit compensation expense		1,320		—		1,320
Depreciation, depletion and amortization		6,205		14,913		21,118
Asset impairments		4,688		—		4,688
Accretion expense		364		134		498
Total operating expenses		30,848		24,833		55,681

Operating income (loss)	$	(5,399)	$	554	$	(4,845)


	Six Months Ended June 30, 2016
	Production		Midstream		Total
Operating revenues
Natural gas sales	$	4,275	$	—	$	4,275
Oil sales		2,587		—		2,587
Natural gas liquids sales		520		—		520
Gathering and transportation sales		—		28,133		28,133
Total operating revenues		7,382		28,133		35,515

Operating expenses:
Lease operating expenses		8,780		371		9,151
Transportation operating expenses		—		6,068		6,068
Cost of sales		193		—		193
Production taxes		547		—		547
General and administrative		7,984		2,713		10,697
Unit-based compensation expense		1,529		—		1,529
Depreciation, depletion and amortization		3,149		10,168		13,317
Asset impairments		1,309		—		1,309
Accretion expense		507		123		630
Total operating expenses		23,998		19,443		43,441

Operating income (loss)	$	(16,616)	$	8,690	$	(7,926)

The following table summarizes the total assets by operating segment as of June 30, 2017 and December 31, 2016 (in thousands):