CONCENTRATIONS:

Sales to Major Customers

Our production is sold on month-to-month contracts at prevailing prices. We obtain credit protections, such as parental guarantees, from certain of our purchasers. The following table identifies customers from whom we derived 10% or more of our total oil and natural gas revenue during the indicated periods:



	Year Ended December 31,
	2016		2015		2014
Phillips 66 Company	68	%	53	%	31	%
Shell Trading (US) Company	10	%	13	%	32	%

The maximum amount of credit risk exposure at December 31, 2016 relating to these customers was $27,736.

We believe that the loss of any of these purchasers would not result in a material adverse effect on our ability to market future oil and natural gas production.

Production and Reserve Volumes – Unaudited

Approximately 66% of our estimated proved reserve volumes at December 31, 2016 and 65% of our production during 2016 were associated with our GOM deep water, conventional shelf and deep gas properties. Approximately 34% of our estimated proved reserve volumes at December 31, 2016 and 35% of our production during 2016 were associated with the Appalachia Properties.

Cash and Cash Equivalents

A substantial portion of our cash balances are not federally insured.