Property, Plant and Equipment

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

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

	June 30, 2017			December 31, 2016
Oil and natural gas properties:
Subject to depletion	$	3,390,262		$	2,376,712
Not subject to depletion
Incurred in 2017	3,019,805			—
Incurred in 2016	1,028,736			1,215,920
Incurred in 2015 and prior	364,316			470,785
Total not subject to depletion	4,412,857			1,686,705
Oil and natural gas properties, successful efforts method	7,803,119			4,063,417
Less accumulated depreciation, depletion and impairment	(640,926		)	(506,175		)
Total oil and natural gas properties, net	7,162,193			3,557,242
Other property, plant and equipment	95,764			73,382
Less accumulated depreciation	(18,567		)	(14,064		)
Other property, plant and equipment, net	77,197			59,318
Total property, plant and equipment, net	$	7,239,390		$	3,616,560

Costs subject to depletion are proved costs and costs not subject to depletion are unproved costs and current drilling projects. At June 30, 2017 and December 31, 2016, the Company had excluded $4,412.9 million and $1,686.7 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 $80.4 million and $147.1 million for the three and six months ended June 30, 2017, respectively, and $54.6 million and $102.5 million for the three and six months ended June 30, 2016, respectively. The Company had no exploratory wells in progress at June 30, 2017 or December 31, 2016.