Supplemental Information on Natural Gas and Oil Exploration, Development and Production Activities (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Capitalized Costs and Accumulated Depreciation, Depletion and Amortization

Capitalized Costs and Accumulated Depreciation, Depletion and Amortization ^(a)

	December 31,
	2015			2014			2013
	(in thousands)
Natural gas and oil properties:
Properties subject to depletion	$	8,047,181		$	9,624,725		$	8,225,859
Unproved properties		949,155			943,246			807,022
Total		8,996,336			10,567,971			9,032,881
Accumulated depreciation, depletion and amortization		(2,635,031	)		(2,590,398	)		(2,274,444	)
Net capitalized costs	$	6,361,305		$	7,977,573		$	6,758,437

^(a)	Includes capitalized asset retirement costs and the associated accumulated amortization.

Costs Incurred for Property Acquisition, Exploration and Development

Costs Incurred for Property Acquisition, Exploration and Development ^(a)

	December 31,
	2015		2014		2013
	(in thousands)
Acquisitions ^(b)	$	¾	$	404,252	$	¾
Acreage purchases		73,025		226,475		137,538
Development		708,268		1,119,896		938,668
Exploration:
Drilling		87,505		180,925		189,742
Expense		18,421		58,979		60,384
Stock-based compensation expense		2,985		4,569		4,025
Gas gathering facilities:
Development		13,337		13,137		47,086
Subtotal		903,541		2,008,233		1,377,443
Asset retirement obligations		22,184		56,822		76,373
Total costs incurred	$	925,725	$	2,065,055	$	1,453,816

^(a)

Includes cost incurred whether capitalized or expensed.

^(b)

See also Note 3 for additional information related to the 2014 Conger Exchange which includes $134.8 million of gas gathering assets received in the exchange and $11.9 million of asset retirement obligations added in the exchange.

Proved Developed and Undeveloped Reserves


	Natural Gas			NGLs			Crude Oil and Condensate			Natural Gas Equivalents
	(Mmcf)			(Mbbls)			(Mbbls)			(Mmcfe) ^(a)
Proved developed and undeveloped reserves:
Balance, December 31, 2012		4,792,676			240,399			45,082			6,505,570
Revisions		384,825			7,743			2,935			448,898
Extensions, discoveries and additions		853,746			135,810			10,723			1,732,944
Purchases		¾			¾			¾			¾
Property sales		(101,074	)		(286	)		(6,553	)		(142,116	)
Production		(264,528	)		(9,254	)		(3,827	)		(343,022	)
Balance, December 31, 2013		5,665,645			374,412			48,360			8,202,274
Revisions		(30,566	)		19,716			515			90,822
Extensions, discoveries and additions		1,393,108			154,664			12,936			2,398,709
Purchases		262,813			¾			¾			262,813
Property sales		(81,238	)		(14,064	)		(9,083	)		(220,122	)
Production		(286,926	)		(18,821	)		(4,070	)		(424,267	)
Balance, December 31, 2014		6,922,836			515,907			48,658			10,310,229
Revisions		(340,286	)		17,717			3,804			(211,163	)
Extensions, discoveries and additions		1,017,956			36,308			4,924			1,265,348
Purchases		¾			¾			¾			¾
Property sales		(960,122	)		(441	)		(109	)		(963,423	)
Production		(362,687	)		(20,356	)		(4,084	)		(509,328	)
Balance, December 31, 2015		6,277,697			549,135			53,193			9,891,663
Proved developed reserves:
December 31, 2013		2,797,483			206,477			26,054			4,192,666
December 31, 2014		3,583,051			270,271			24,180			5,349,761
December 31, 2015		3,376,165			309,306			31,679			5,422,075
Proved undeveloped reserves:
December 31, 2013		2,868,162			167,935			22,306			4,009,608
December 31, 2014		3,339,785			245,636			24,478			4,960,468
December 31, 2015		2,901,533			239,828			21,514			4,469,588

^(a)	Oil and NGLs are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship of oil and natural gas prices.

Changes in Proved Undeveloped Reserves

The following details the changes in proved undeveloped reserves for 2015 (Mmcfe):

Beginning proved undeveloped reserves at December 31, 2014	4,960,468
Undeveloped reserves transferred to developed	(762,936	)
Revisions^(a)	(441,874	)
Purchases/(sales)	(201,809	)
Extension and discoveries	915,739
Ending proved undeveloped reserves at December 31, 2015	4,469,588

^(a) Includes 1.2 Tcfe of proved undeveloped reserves dropped due to the five year rule which can be included in our future proved reserves as these locations are added back to our five-year development plan.

Standardized Measure of Discounted Future Net Cash Flows

The standardized measure of discounted future net cash flows relating to proved natural gas, NGLs, crude oil and condensate reserves is as follows and excludes cash flows associated with derivatives outstanding at each of the respective reporting dates. Future cash inflows are net of third party transportation, gathering and compression expense.

	As of December 31,
	2015			2014
	(in thousands)
Future cash inflows	$	21,290,873		$	46,507,646
Future costs:
Production		(10,411,360	)		(15,239,210	)
Development^(a)		(2,213,582	)		(4,275,693	)
Future net cash flows before income taxes		8,665,931			26,992,743
Future income tax expense		(2,007,794	)		(8,900,383	)
Total future net cash flows before 10% discount		6,658,137			18,092,360
10% annual discount		(3,932,274	)		(10,499,333	)
Standardized measure of discounted future net cash flows	$	2,725,863		$	7,593,027

^(a) 2015 includes $384.5 million of undiscounted future asset retirement costs estimated as of December 31, 2015, using current estimates of future abandonment costs.

Changes in Discounted Future Net Cash Flows

The following table summarizes changes in the standardized measure of discounted future net cash flows.

	December 31,
	2015			2014			2013
	(in thousands)
Revisions of previous estimates:
Changes in prices and production costs	$	(7,231,629	)	$	5,069		$	2,172,704
Revisions in quantities		(868,886	)		102,760			513,168
Changes in future development and abandonment costs		359,540			(407,688	)		(275,468	)
Net change in income taxes		2,173,904			(441,935	)		(1,299,227	)
Accretion of discount		1,007,027			789,754			395,989
Purchases of reserves in place		¾			297,358			¾
Additions to proved reserves from extensions, discoveries and improved recovery		486,478			2,713,999			1,981,054
Natural gas, NGLs and oil sales, net of production costs		(522,682	)		(1,391,663	)		(1,286,103	)
Development costs incurred during the period		1,033,539			755,384			462,862
Sales of reserves in place		(1,050,237	)		(249,055	)		(162,463	)
Timing and other		(254,218	)		(443,187	)		135,910
Net change for the year		(4,867,164	)		1,730,796			2,638,426
Beginning of year		7,593,027			5,862,231			3,223,805
End of year	$	2,725,863		$	7,593,027		$	5,862,231

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details