Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

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

	December 31, 2019			December 31, 2018
Oil and natural gas properties:
Subject to depletion	$	8,799,840		$	6,659,444
Not subject to depletion
Incurred in 2019	318,190			—
Incurred in 2018	402,584			677,920
Incurred in 2017 and prior	1,751,510			2,610,882
Total not subject to depletion	2,472,284			3,288,802
Oil and natural gas properties, successful efforts method	11,272,124			9,948,246
Less accumulated depreciation, depletion and impairment	(2,117,963		)	(1,295,098		)
Total oil and natural gas properties, net	9,154,161			8,653,148
Other property, plant and equipment	219,857			206,662
Less accumulated depreciation	(49,551		)	(35,923		)
Other property, plant and equipment, net	170,306			170,739
Total property, plant and equipment, net	$	9,324,467		$	8,823,887

Costs subject to depletion are proved costs and costs not subject to depletion are unproved costs and current drilling projects. At December 31, 2019 and 2018, the Company had excluded $2,472.3 million and $3,288.8 million 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 and mineral interests 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 $775.8 million, $569.7 million and $340.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Company had no exploratory wells in progress at December 31, 2019, 2018 or 2017. 

Costs not subject to depletion primarily include leasehold costs, broker and legal expenses and capitalized internal costs associated with developing oil and natural gas prospects on these properties. Leasehold costs are transferred into costs subject to depletion on an ongoing basis as these properties are evaluated and proved reserves are established.

Costs not subject to depletion also include costs associated with development wells in progress or awaiting completion at year-end. These costs are transferred into costs subject to depletion on an ongoing basis as these wells are completed and proved reserves are established or confirmed. These costs totaled $210.8 million and $275.3 million at December 31, 2019 and 2018, respectively. The Company anticipates that the $210.8 million associated with the wells in progress at December 31, 2019 will be transferred to costs subject to depletion during 2020. The $275.3 million associated with the wells in progress at December 31, 2018 was transferred to costs subject to depletion during 2019.

The Company capitalizes interest on expenditures made in connection with long-term projects that are not subject to current depletion. Interest is capitalized only for the period that activities are in progress to bring these projects to their intended use and only to the extent the company has incurred interest expense. There was no capitalized interest recorded during the years ended December 31, 2019, 2018 or 2017.