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Crude Oil and Natural Gas Property Information
 12 Months Ended
Dec. 31, 2019
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Crude Oil and Natural Gas Property Information Crude Oil and Natural Gas Property Information
The tables reflected below represent consolidated figures for the Company and its subsidiaries. In 2014, the Company initiated operations in Canada which were sold in the fourth quarter of 2019. The Company's Canadian operations have not had a material impact on historical capital expenditures, production, and revenues. Accordingly, the results of operations, costs incurred, and capitalized costs associated with the Canadian operations have not been shown separately from the consolidated figures in the tables below. Additionally, results attributable to noncontrolling interests are not material relative to the Company's consolidated results and are not separately presented below.
The following table sets forth the Company’s consolidated results of operations from crude oil and natural gas producing activities for the years ended December 31, 2019, 2018 and 2017.

 
Year ended December 31,
In thousands
 
2019
 
2018
 
2017
Crude oil and natural gas sales (1)
 
$
4,514,389

 
$
4,678,722

 
$
2,982,966

Production expenses
 
(444,649
)
 
(390,423
)
 
(324,214
)
Production taxes
 
(357,988
)
 
(353,140
)
 
(208,278
)
Transportation expenses (1)
 
(225,649
)
 
(191,587
)
 
—

Exploration expenses
 
(14,667
)
 
(7,642
)
 
(12,393
)
Depreciation, depletion, amortization and accretion
 
(1,997,854
)
 
(1,839,241
)
 
(1,652,180
)
Property impairments
 
(86,202
)
 
(125,210
)
 
(237,370
)
Income tax (provision) benefit (2)
 
(323,025
)
 
(434,047
)
 
504,475

Results from crude oil and natural gas producing activities
 
$
1,064,355

 
$
1,337,432

 
$
1,053,006


(1)
For 2019 and 2018, crude oil and natural gas sales are presented gross of certain transportation expenses as a result of the Company's January 1, 2018 adoption of new revenue recognition and presentation rules as discussed in Note 8. Revenues. The rules were prospectively applied beginning January 1, 2018 and prior period results were not adjusted to conform to the current presentation.
(2)
Income taxes reflect the application of a combined federal and state tax rate of 24.5% for 2019 and 2018 and a 38% combined tax rate for 2017 on pre-tax income generated by operations in the United States. Additionally, the 2019 period includes the $16.9 million income tax benefit recognized upon the Company's sale of its Canadian operations during the year. Further, the 2017 period includes the $713.7 million income tax benefit recognized upon the Company’s remeasurement of its deferred income tax assets and liabilities in response to the enactment of the Tax Cuts and Jobs Act in December 2017.
Costs incurred in crude oil and natural gas activities
Costs incurred, both capitalized and expensed, in connection with the Company’s consolidated crude oil and natural gas acquisition, exploration and development activities for the years ended December 31, 2019, 2018 and 2017 are presented below: 
 
 
Year ended December 31,
In thousands
 
2019
 
2018
 
2017
Property acquisition costs:
 
 
 
 
 
 
Proved
 
$
51,558

 
$
31,579

 
$
8,446

Unproved
 
312,680

 
329,586

 
220,875

Total property acquisition costs
 
364,238

 
361,165

 
229,321

Exploration Costs
 
50,143

 
81,015

 
123,461

Development Costs
 
2,388,582

 
2,478,327

 
1,695,954

Total
 
$
2,802,963

 
$
2,920,507

 
$
2,048,736


Costs incurred above include asset retirement costs and revisions thereto of $6.7 million, $25.8 million and $15.3 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Aggregate capitalized costs
Aggregate capitalized costs relating to the Company’s consolidated crude oil and natural gas producing activities and related accumulated depreciation, depletion and amortization as of December 31, 2019 and 2018 are as follows:
 
 
December 31,
In thousands
 
2019
 
2018
Proved crude oil and natural gas properties
 
$
26,611,429

 
$
24,060,625

Unproved crude oil and natural gas properties
 
319,592

 
291,564

Total
 
26,931,021

 
24,352,189

Less accumulated depreciation, depletion and amortization
 
(12,635,247
)
 
(10,680,870
)
Net capitalized costs
 
$
14,295,774

 
$
13,671,319


Under the successful efforts method of accounting, the costs of drilling an exploratory well are capitalized pending determination of whether proved reserves can be attributed to the discovery. When initial drilling and completion operations are complete, management attempts to determine whether the well has discovered crude oil and natural gas reserves and, if so, whether those reserves can be classified as proved reserves. Often, the determination of whether proved reserves can be recorded under SEC guidelines cannot be made when drilling is completed. In those situations where management believes that economically producible hydrocarbons have not been discovered, the exploratory drilling costs are reflected on the consolidated statements of comprehensive income as dry hole costs, a component of “Exploration expenses”. Where sufficient hydrocarbons have been discovered to justify further exploration or appraisal activities, exploratory drilling costs are deferred under the caption “Net property and equipment” on the consolidated balance sheets pending the outcome of those activities.
On at least a quarterly basis, operating and financial management review the status of all deferred exploratory drilling costs in light of ongoing exploration activities—in particular, whether the Company is making sufficient progress in its ongoing exploration and appraisal efforts. If management determines that future appraisal drilling or development activities are not likely to occur, any associated exploratory well costs are expensed in that period of determination.
The following table presents the amount of capitalized exploratory well costs pending evaluation at December 31 for each of the last three years and changes in those amounts during the years then ended:
 
 
Year ended December 31,
In thousands
 
2019
 
2018
 
2017
Balance at January 1
 
$
3,959

 
$
31,356

 
$
34,852

Additions to capitalized exploratory well costs pending determination of proved reserves
 
28,280

 
45,088

 
79,451

Reclassification to proved crude oil and natural gas properties based on the determination of proved reserves
 
(23,200
)
 
(72,347
)
 
(81,035
)
Capitalized exploratory well costs charged to expense
 
(2,782
)
 
(138
)
 
(1,912
)
Balance at December 31
 
$
6,257

 
$
3,959

 
$
31,356

Number of gross wells
 
11

 
16

 
37


As of December 31, 2019, the Company had no significant exploratory well costs that were suspended one year beyond the completion of drilling.