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Commitments
12 Months Ended
Dec. 31, 2014
Commitments  
Commitments

(11) Commitments

The following is a schedule of future minimum payments for firm transportation agreements, drilling and compression facility obligations, and leases that have remaining lease terms in excess of one year as of December 31, 2014 (in millions).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Firm

transportation

  

Gas processing,
gathering and
compression

  

Drilling rigs
and frac
services

  

Office and equipment

  

 

 

 

 

(a)

 

(b)

 

(c)

 

(d)

 

Total

 

Year ending December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

$

316 

 

 

336 

 

 

212 

 

 

 

 

873 

 

2016

 

 

593 

 

 

237 

 

 

161 

 

 

 

 

1,000 

 

2017

 

 

800 

 

 

245 

 

 

96 

 

 

 

 

1,149 

 

2018

 

 

867 

 

 

244 

 

 

 —

 

 

 

 

1,117 

 

2019

 

 

939 

 

 

193 

 

 

 —

 

 

 

 

1,136 

 

Thereafter

 

 

10,376 

 

 

1,040 

 

 

 —

 

 

11 

 

 

11,427 

 

Total

 

$

13,891 

 

 

2,295 

 

 

469 

 

 

47 

 

 

16,702 

 

 

(a) Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market.  These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates, or pay for any deficiencies at specified reservation fee rates.  The amounts in this table represent minimum daily volumes at the reservation fee rate.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(b) Gas Processing and Compression Service Commitments

The Company has entered into various long‑term gas processing agreements for certain of its production that will allow it to realize the value of its NGLs.  The minimum payment obligations under the agreements are presented in the table.

The Company has various compressor service agreements with third parties that provide for payments based on volumes compressed and have minimum payment obligations which are presented in the table.

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(c) Drilling Rig Service Commitments

The Company has obligations under agreements with service providers to procure drilling rigs and compression and frac services.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(d) Office and Equipment Leases

The Company leases various office space and equipment, as well as field equipment, under operating lease arrangements.  Rental expense under operating leases was $1.1 million, $1.8 million, and $10.2 million for the years ended December 31, 2012,  2013, and 2014, respectively.