Property, Plant and Equipment

9 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment includes the following (in thousands):

	September 30, 2016			December 31, 2015
Oil and natural gas properties:
Subject to depletion	$	2,224,830		$	1,627,367
Not subject to depletion
Incurred in 2016	731,072			—
Incurred in 2015	36,833			118,101
Incurred in 2014 and prior	442,779			500,693
Total not subject to depletion	1,210,684			618,794
Oil and natural gas properties, successful efforts method	3,435,514			2,246,161
Accumulated depreciation, depletion and impairment	(450,387		)	(290,186		)
Total oil and natural gas properties, net	2,985,127			1,955,975
Other property, plant and equipment	59,585			37,253
Less accumulated depreciation	(12,144		)	(7,475		)
Other property, plant and equipment, net	47,441			29,778
Total property, plant and equipment, net	$	3,032,568		$	1,985,753

Costs subject to depletion are proved costs and costs not subject to depletion are unproved costs and current drilling projects. At September 30, 2016 and December 31, 2015, the Company had excluded $1.2 billion and $618.8 million, respectively, of capitalized costs from depletion.

As the Company’s exploration and development work progresses and the reserves on the Company’s properties are proven, capitalized costs attributed to the properties are subject to DD&A. Depletion of capitalized costs is provided using the units-of-production method based on proved oil and natural gas reserves related to the associated reservoir. Depletion expense on capitalized oil and natural gas properties was $63.9 million and $44.8 million for the three months ended September 30, 2016 and 2015, respectively. Depletion expense on capitalized oil and natural gas properties was $166.4 million and $124.3 million for the nine months ended September 30, 2016 and 2015, respectively. The Company had no exploratory wells in progress at September 30, 2016 or December 31, 2015.