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Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies [Text Block]
Note 6 - Commitments and Contingencies
Commitments
As of June 30, 2018, the Company had total gathering, processing, transportation throughput, and purchase commitments with various third parties that require delivery of a minimum quantity of 31 MMBbl of oil, 737 Bcf of gas, and 22 MMBbl of produced water through 2027 and a minimum purchase quantity of 7 MMBbl of water by 2022. If the Company fails to deliver or purchase any product, as applicable, the aggregate undiscounted future deficiency payments as of June 30, 2018, would total approximately $360.6 million. This amount does not include any costs that may be incurred for certain contracts where the Company cannot predict with accuracy the amount and timing of any payments that may be incurred for not meeting certain minimum commitments, as such payments are dependent upon the price of oil in effect at the time of settlement. Under certain of the Company’s commitment agreements, if the Company is unable to deliver the minimum quantity from its production, it may deliver production acquired from third parties. As of the filing of this report, the Company does not expect to incur any material shortfalls with regard to these commitments.
The Company entered into new and amended drilling rig and completion service contracts during the first six months of 2018 and subsequent to June 30, 2018. As of the filing of this report, the Company’s drilling rig and completion service contract commitments totaled $103.1 million; however, if the Company terminated these contracts immediately, it would incur penalties of $40.4 million.
Additionally, as of June 30, 2018, the Company had fixed price contracts with various third parties to purchase electricity through 2027 for a total of $30.8 million. As of the filing of this report, the Company expects to meet these purchase commitments.
There were no other material changes in commitments during the first six months of 2018. Please refer to Note 6 - Commitments and Contingencies in the 2017 Form 10-K for additional discussion of the Company’s commitments.
Contingencies
The Company is subject to litigation and claims arising in the ordinary course of business.  The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated.  In the opinion of management, the results of any pending litigation and claims are not expected to have a material effect on the results of operations, the financial position, or the cash flows of the Company.