Supplemental Disclosure of Oil and Natural Gas Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Extractive Industries [Abstract]

Schedule of Capitalized Costs

Capitalized Costs

	December 31,
	2019			2018
	(in thousands)
Oil and natural gas properties:
Proved properties	$	8,799,840		$	6,659,444
Unproved properties	2,472,284			3,288,802
Total oil and natural gas properties	11,272,124			9,948,246
Less accumulated depreciation, depletion and amortization	(2,117,963		)	(1,295,098		)
Net oil and natural gas properties capitalized	$	9,154,161		$	8,653,148

Schedule of Costs Incurred for Oil and Gas Producing Activities

Costs Incurred for Oil and Natural Gas Producing Activities

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Acquisition costs:
Proved properties	$	24,855	$	17,310	$	482,160
Unproved properties	27,165		119,662		2,893,434
Development costs	1,372,919		1,762,218		1,207,401
Total	$	1,424,939	$	1,899,190	$	4,582,995

Results of Operations for Oil and Gas Producing Activities Disclosure

The following table sets forth the revenues and expenses related to the production and sale of oil, natural gas and NGLs. It does not include any interest costs or general and administrative costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of the Company’s oil, natural gas and NGLs operations.

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Oil, natural gas and natural gas liquid sales(1)	$	1,949,977		$	1,814,747		$	961,994
Lease operating expenses	(177,148		)	(144,292		)	(102,169		)
Transportation and processing costs(1)	(41,198		)	(32,573		)	—
Production and ad valorem taxes	(124,961		)	(108,342		)	(59,641		)
Depreciation, depletion and amortization	(775,849		)	(569,691		)	(340,778		)
Accretion of asset retirement obligations	(1,465		)	(1,422		)	(971		)
Total	$	829,356		$	958,427		$	458,435

(1) Natural gas and NGLs sales and transportation and processing costs for the years ended December 31, 2019 and 2018 reflect adjustments associated with Parsley’s adoption of ASC 606, effective January 1, 2018.

Schedule of Reserve Quantity Information Average Sales Price

The pricing that was used for estimates of the Company’s reserves as of December 31, 2019 was based on an unweighted average 12-month average U.S. Energy Information Administration WTI posted price per Bbl for oil and NGLs and a Waha spot natural gas price per Mcf for natural gas, adjusted for transportation, quality and basis differentials, as set forth in the following table:

	Year Ended December 31,
	2019		2018		2017
Oil (per Bbl)	$	53.97	$	61.88	$	49.17
Natural gas (per Mcf)	$	0.71	$	1.64	$	2.53
Natural gas liquids (per Bbl)	$	15.46	$	28.05	$	22.20

Schedule of Proved Developed and Proved Undeveloped Reserves

The following table and subsequent narrative disclosure provides a roll forward of the total proved reserves for the years ended December 31, 2019, 2018 and 2017, as well as proved developed and proved undeveloped reserves at the beginning and end of each respective year:

	Year Ended December 31, 2019
	Crude Oil (MBbls)		Natural Gas (MMcf)		NGLs (MBbls)		Total MBoe
Proved Developed and Undeveloped Reserves:
Beginning of the year	294,446		572,038		131,933		521,719
Extensions and discoveries	84,186		132,642		32,457		138,750
Revisions of previous estimates	(19,269	)	60,128		(5,043	)	(14,291	)
Purchases of reserves in place	354		556		107		554
Divestures of reserves in place	(1,590	)	(4,189	)	(788	)	(3,076	)
Production	(31,664	)	(51,933	)	(11,002	)	(51,322	)
End of the year	326,463		709,242		147,664		592,334
Proved Developed Reserves:
Beginning of the year	170,526		358,733		81,000		311,315
End of the year	206,849		472,160		96,202		381,744
Proved Undeveloped Reserves:
Beginning of the year	123,920		213,305		50,933		210,404
End of the year	119,614		237,082		51,462		210,590

	Year Ended December 31, 2018
	Crude Oil (MBbls)		Natural Gas (MMcf)		NGLs (MBbls)		Total MBoe
Proved Developed and Undeveloped Reserves:
Beginning of the year	248,531		451,703		92,632		416,447
Extensions and discoveries	102,274		130,692		35,722		159,778
Revisions of previous estimates	(22,047	)	48,992		16,164		2,283
Purchases of reserves in place	3,379		5,963		1,240		5,613
Divestures of reserves in place	(12,335	)	(27,947	)	(5,472	)	(22,465	)
Production	(25,356	)	(37,365	)	(8,353	)	(39,937	)
End of the year	294,446		572,038		131,933		521,719
Proved Developed Reserves:
Beginning of the year	119,591		240,337		49,751		209,399
End of the year	170,526		358,733		81,000		311,315
Proved Undeveloped Reserves:
Beginning of the year	128,940		211,366		42,881		207,048
End of the year	123,920		213,305		50,933		210,404

	Year Ended December 31, 2017
	Crude Oil (MBbls)		Natural Gas (MMcf)		NGLs (MBbls)		Total MBoe
Proved Developed and Undeveloped Reserves:
Beginning of the year	136,536		223,605		48,543		222,347
Extensions and discoveries	99,916		161,989		33,426		160,340
Revisions of previous estimates	(709	)	32,342		4,522		9,205
Purchases of reserves in place	33,017		64,055		12,121		55,814
Divestures of reserves in place	(3,839	)	(6,962	)	(1,468	)	(6,467	)
Production	(16,390	)	(23,326	)	(4,512	)	(24,792	)
End of the year	248,531		451,703		92,632		416,447
Proved Developed Reserves:
Beginning of the year	61,133		123,946		24,306		106,097
End of the year	119,591		240,337		49,751		209,399
Proved Undeveloped Reserves:
Beginning of the year	75,403		99,659		24,237		116,250
End of the year	128,940		211,366		42,881		207,048

Schedule of Standardized Measure of Discounted Future Net Cash Flows

The standardized measure of discounted future net cash flows relating to proved oil, natural gas and NGLs reserves is as follows:

	December 31,
	2019			2018			2017
	(in thousands)
Future cash inflows	$	20,409,082		$	22,861,246		$	15,421,590
Future development costs	(2,280,552		)	(2,459,587		)	(2,181,447		)
Future production costs	(6,240,997		)	(5,944,022		)	(4,536,530		)
Future income tax expenses	(1,485,523		)	(2,061,409		)	(1,102,385		)
Future net cash flows	10,402,010			12,396,228			7,601,228
10% discount to reflect timing of cash flows	(5,439,514		)	(6,502,326		)	(4,215,321		)
Standardized measure of discounted future net cash flows	$	4,962,496		$	5,893,902		$	3,385,907

Schedule of Changes in Standardized Measure Discounted Future Net Cash Flows

Changes in the standardized measure of discounted future net cash flows relating to proved oil, natural gas and NGLs reserves are as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Standardized measure of discounted future net cash flows    at the beginning of the year	$	5,893,902		$	3,385,907		$	1,304,091
Sales of oil and natural gas, net of production costs	(1,606,669		)	(1,561,190		)	(800,553		)
Purchase of minerals in place	7,411			76,478			489,910
Divestiture of minerals in place	(19,768		)	(167,412		)	(50,257		)
Extensions and discoveries, net of future    development costs	1,714,706			3,016,035			1,864,041
Previously estimated development costs incurred    during the period	469,798			290,108			58,377
Net changes in prices and production costs	(2,205,679		)	1,065,693			525,693
Changes in estimated future development costs	83,125			(177,118		)	(150,028		)
Revisions of previous quantity estimates	(146,203		)	161,860			142,510
Accretion of discount	677,486			391,803			148,314
Net change in income taxes	187,697			(348,834		)	(353,073		)
Net changes in timing of production and other	(93,310		)	(239,428		)	206,882
Standardized measure of discounted future net cash flows    at the end of the year	$	4,962,496		$	5,893,902		$	3,385,907