SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Supplemental Oil and Natural Gas Disclosures [Abstract]

Estimated Quantities Of Proved Reserves

The following table sets forth our net proved reserves as of December 31, 2019 and 2018 and February 8, 2018, and the changes therein during the periods then ended.

	Oil (Mbbls)		Gas (MMcf)		NGL’s (Mbbls)		Boe (Mbbls)
Total Proved Reserves:
Balance at December 31, 2017 (Predecessor)	73,518		433,519		36,887		182,658
Production	(521	)	(1,984	)	(161	)	(1,012	)
Sales of reserves in place (1)	(1,667	)	(24,239	)	(771	)	(6,478	)
Revisions of previous quantity estimates and other	375		3,506		289		1,248
Balance at February 8, 2018 (Predecessor)	71,705		410,802		36,244		176,416
Production(2)	(5,053	)	(16,913	)	(2,268	)	(10,140	)
Purchases in place(2)	2,658		13,331		1,751		6,631
Discoveries and extensions(2)	30,026		155,306		19,646		75,557
Revisions of previous quantity estimates and other(2)	(74,064	)	(418,378	)	(35,581	)	(179,375	)
Balance at December 31, 2018 (Successor)	25,272		144,148		19,792		69,089
Production	(5,885	)	(24,802	)	(2,760	)	(12,779	)
Discoveries and extensions	4,265		24,351		2,835		11,159
Revisions of previous quantity estimates and other(3)	(6,736	)	(29,254	)	(9,352	)	(20,964	)
Balance at December 31, 2019 (Successor)	16,916		114,443		10,515		46,505
Proved Developed Reserves:
Balance at December 31, 2017	20,347		150,183		12,180		57,557
Balance at February 8, 2018	19,345		126,231		11,348		51,731
Balance at December 31, 2018	25,272		144,148		19,792		69,089
Balance at December 31, 2019	16,916		114,443		10,515		46,505
Proved Undeveloped Reserves:
Balance at December 31, 2017	53,171		283,336		24,707		125,101
Balance at February 8, 2018	52,360		284,571		24,896		124,685
Balance at December 31, 2018	—		—		—		—
Balance at December 31, 2019	—		—		—		—

_________________

(1) Sales of reserves in place during the 2018 Predecessor Period represent amounts related to our non-STACK properties that were distributed to High Mesa and are classified as discontinued operations in our financial statements.

(2) An analysis of changes in our reserves from February 8, 2018 to December 31, 2018 follows:

	MBoe
Description	Proved Developed Reserves		Proved Undeveloped Reserves		Total
Balance at February 8, 2018	51,731		124,685		176,416
Production	(10,140	)	—		(10,140	)
Purchases in place, discoveries and extensions	35,096		47,092		82,188
Revisions of previous quantity estimates and other:
Lower estimated recoveries identified as a result of 2018 drilling program	(31,964	)	(69,534	)	(101,498	)
Higher average commodity prices in Successor Period compared to 2017	5,367		5,829		11,196
Transfers of PUDs to proved developed reserves	18,999		(18,999	)	—
Derecognition of PUDs due to significant concerns about ability to fund development of those reserves	—		(89,073	)	(89,073	)
Balance at December 31, 2018	69,089		—		69,089

(3) Revisions decreased our estimated recovery of proved reserves and is ratably due to lower average commodity prices in 2019 as compared to 2018, the decision to report ethane rejection rather than ethane recovery, and decreases in volume estimates based on the overall performance of our wells.

Results of Operations for Oil and Gas Producing Activities

Results of Operations for Oil and Gas Producing Activities - Upstream Segment

	Successor						Predecessor
(in thousands)	Year Ended December 31, 2019			February 9, 2018 Through December 31, 2018			January 1, 2018 Through February 8, 2018
Operating revenue	$	423,576		$	414,507		$	40,136
Production expense (1)	232,212			247,748			30,743
Depreciation, depletion and amortization	120,617			133,554			11,670
Exploration expense	52,354			34,085			7,003
Impairment expense	556,427			2,033,712			—
Income tax expense (benefit)	—			4			—
Results of operations	$	(538,034	)	$	(2,034,596	)	$	(9,280	)

_________________

(1)

Production expense consists of direct lease operating expense, transportation and marketing expense, production taxes, workover expense and allocated general and administrative expense.

Capitalized Costs Relating To Oil And Natural Gas Producing Activities

Capitalized Costs Relating to Oil and Gas Producing Activities

	December 31,
(in thousands)	2019			2018
Capitalized costs:
Proved properties	$	2,239,444		$	2,110,346
Unproved properties	813,310			816,282
Total	3,052,754			2,926,628
Accumulated depreciation, depletion, amortization and impairment	(2,837,402		)	(2,163,291		)
Net capitalized costs	$	215,352		$	763,337

Costs Incurred In Oil And Natural Gas Acquisition, Exploration And Development Activities

	Successor				Predecessor
(in thousands)	Year Ended December 31, 2019		February 9, 2018 Through December 31, 2018		January 1, 2018 Through February 8, 2018
Costs incurred during the period: (1)
Property acquisition
Unproved (2)	$	—	$	54,587	$	4,240
Proved	—		16,300		327
Exploration	7,305		32,130		3,678
Development (3)	134,908		664,138		37,672
	$	142,213	$	767,155	$	45,917

_________________

(1) Costs incurred in the 2018 Predecessor Period include amounts related to non-STACK oil and gas assets, which were distributed in connection with the Business Combination.

(2) Property acquisition costs for unproved properties include the acquisition of unevaluated leasehold portion from an unaffiliated third party of approximately $22.3 million for the 2018 Successor Period.

(3)

Includes asset retirement additions (revisions) of $0.9 million and $5.6 million for the 2019 and the 2018 Successor Period, respectively. For the 2018 Predecessor Period, there were no material asset retirement additions (revisions).

Components Of The Standardized Measure Of Discounted Future Net Cash Flows

The following table sets forth the components of the standardized measure of discounted future net cash flows:

	Successor						Predecessor
(in thousands, except per unit data)	December 31, 2019			December 31, 2018			February 8, 2018
Future cash inflows	$	1,326,490		$	2,446,888		$	5,798,886
Future production costs	(825,300		)	(1,214,479		)	(2,556,361		)
Future development costs	(25,251		)	(23,183		)	(965,780		)
Future income taxes	(26,707		)	(146,632		)	—
Future net cash flows(1)	449,232			1,062,594			2,276,745
Discount to present value at 10 percent per annum	(122,321		)	(348,311		)	(1,096,859		)
Standardized measure of discounted future net cash flows	$	326,911		$	714,283		$	1,179,886
Base price for crude oil, per barrel, in the above computation	$	55.69		$	65.56		$	52.89
Base price for gas, per Mcf, in the above computation	$	2.58		$	3.10		$	2.99
Realized price for NGLs, per barrel, in the above computation	$	14.60		$	22.44		$	27.48

Components Of Changes In Standardized Measure Of Discounted Future Net Cash Flows

Changes in Standardized Measure of Discounted Future Net Cash Flows

	Successor						Predecessor
(in thousands)	Year Ended December 31, 2019			February 9, 2018 Through December 31, 2018			January 1, 2018 Through February 8, 2018
Balance at beginning of period	$	714,283		$	1,179,886		$	1,105,922
Sales and transfers of oil and gas produced, net of production costs	(253,582		)	(278,091		)	(30,391		)
Net changes in prices and production costs	(270,712		)	38,963			71,334
Revisions of previous quantity estimates	(129,305		)	(1,120,097		)	10,887
Purchases of reserves in-place	—			24,376			—
Sales of reserves in-place(1)	—			—			(4,807		)
Current year discoveries and extensions, less related costs	134,451			684,700			—
Changes in estimated future development costs	473			(39,069		)	491
Development costs incurred during the period	84			160,583			—
Accretion of discount	81,285			117,989			110,592
Net change in income taxes	79,134			(98,568		)	—
Change in production rate (timing) and other	(29,200		)	43,611			(84,142		)
Net change	(387,372		)	(465,603		)	73,964
Balance at end of period	$	326,911		$	714,283		$	1,179,886

_________________

(1)

The sale of reserves in-place during the 2018 Predecessor Period includes the sale of non-STACK properties.