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

12 Months Ended

Dec. 31, 2016

Capitalized Costs and Accumulated Depreciation, Depletion and Amortization

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

	December 31,
	2016			2015			2014
	(in thousands)
Natural gas and oil properties:
Properties subject to depletion	$	9,462,350		$	8,047,181		$	9,624,725
Unproved properties		2,923,803			949,155			943,246
Total		12,386,153			8,996,336			10,567,971
Accumulated depreciation, depletion and amortization		(3,129,816	)		(2,635,031	)		(2,590,398	)
Net capitalized costs	$	9,256,337		$	6,361,305		$	7,977,573

^(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,
	2016			2015		2014
	(in thousands)
Acquisitions ^(b)
Acreage purchases	$	33,142		$	73,025	$	226,475
Oil and gas properties		3,098,772			—		392,325
Asset retirement obligations and other		21,908			—		11,927
Development		497,795			708,268		1,119,896
Exploration:
Drilling		37,680			87,505		180,925
Expense		30,027			18,421		58,979
Stock-based compensation expense		2,298			2,985		4,569
Gas gathering facilities:
Development		3,595			13,337		13,137
Subtotal		3,725,217			903,541		2,008,233
Asset retirement obligations		(24,064	)		22,184		56,822
Total costs incurred	$	3,701,153		$	925,725	$	2,065,055

^(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.

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, 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			—			—			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		—			—			—			—
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
Revisions		(7,441	)		41,402			2,471			255,794
Extensions, discoveries and additions		1,193,154			26,991			6,506			1,394,134
Purchases		943,544			40,724			11,986			1,259,806
Property sales		(160,727	)		(360	)		(295	)		(164,655	)
Production		(375,811	)		(27,826	)		(3,609	)		(564,420	)
Balance, December 31, 2016		7,870,416			630,066			70,252			12,072,322
Proved developed reserves:
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
December 31, 2016		4,352,141			363,852			39,110			6,769,908
Proved undeveloped reserves:
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
December 31, 2016		3,518,275			266,214			31,143			5,302,414

^(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 2016 (Mmcfe):

Beginning proved undeveloped reserves at December 31, 2015	4,469,588
Undeveloped reserves transferred to developed	(1,065,262	)
Revisions^(a)	145,204
Purchases/(sales)	503,192
Extension and discoveries	1,249,692
Ending proved undeveloped reserves at December 31, 2016	5,302,414

^(a) Includes 269 Bcfe 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,
	2016			2015
	(in thousands)
Future cash inflows	$	27,413,864		$	21,290,873
Future costs:
Production		(14,465,059	)		(10,411,360	)
Development^(a)		(2,647,801	)		(2,213,582	)
Future net cash flows before income taxes		10,301,004			8,665,931
Future income tax expense		(1,946,259	)		(2,007,794	)
Total future net cash flows before 10% discount		8,354,745			6,658,137
10% annual discount		(4,902,816	)		(3,932,274	)
Standardized measure of discounted future net cash flows	$	3,451,929		$	2,725,863

^(a) 2016 includes $405.3 million of undiscounted future asset retirement costs estimated as of December 31, 2016, 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,
	2016			2015			2014
	(in thousands)
Revisions of previous estimates:
Changes in prices and production costs	$	(212,867	)	$	(7,231,629	)	$	5,069
Revisions in quantities		96,615			(868,886	)		102,760
Changes in future development and abandonment costs		(314,864	)		359,540			(407,688	)
Net change in income taxes		27,842			2,173,904			(441,935	)
Accretion of discount		302,920			1,007,027			789,754
Purchases of reserves in place		488,959			—			297,358
Additions to proved reserves from extensions, discoveries and improved recovery		541,095			486,478			2,713,999
Natural gas, NGLs and oil sales, net of production costs		(509,174	)		(522,682	)		(1,391,663	)
Development costs incurred during the period		435,928			1,033,539			755,384
Sales of reserves in place		(65,538	)		(1,050,237	)		(249,055	)
Timing and other		(64,850	)		(254,218	)		(443,187	)
Net change for the year		726,066			(4,867,164	)		1,730,796
Beginning of year		2,725,863			7,593,027			5,862,231
End of year	$	3,451,929		$	2,725,863		$	7,593,027

- 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