Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables)

v3.20.4
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables)
12 Months Ended
Dec. 31, 2020
Extractive Industries [Abstract]  
Schedule of costs incurred in crude oil and natural gas acquisition, exploration and development activities Capitalized costs are summarized as follows for the years ended December 31, 2020, 2019 and 2018, respectively:
  December 31,
(In thousands) 2020 2019 2018
Capitalized Certain Payroll and Other Internal Costs $ 1,159  $ 995  $ 882 
Capitalized Interest Costs 556  644  147 
Total $ 1,716  $ 1,638  $ 1,029 
The costs incurred in crude oil and natural gas acquisition, exploration and development activities are highlighted in the table below.

  December 31,
 (In thousands) 2020 2019 2018
Costs Incurred for the Year:
Proved Property Acquisition and Other $ 50,345  $ 375,145  $ 582,697 
Unproved Property Acquisition 770  9,540  4,903 
Development 162,797  369,233  260,945 
Total $ 213,912  $ 753,918  $ 848,545 
The Company is unable to predict the future impact on depletion rates.  The following is a summary of capitalized costs excluded from depletion at December 31, 2020 by year incurred.
  December 31,
(In thousands) 2020 2019 2018 Prior Years
Property Acquisition $ 308  $ 4,302  $ 4,487  $ 934 
Development —    —  — 
Total $ 308  $ 4,302  $ 4,487  $ 934 
Schedule of estimates of its proved crude oil and natural gas reserves
The following tables present the Company’s third-party independent reserve engineers estimates of its proved crude oil and natural gas reserves.  The Company emphasizes that reserves are approximations and are expected to change as additional information becomes available.  Reservoir engineering is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment.

(In thousands) Natural Gas
(MCF)
Oil
(BBLS)
BOE
Proved Developed and Undeveloped Reserves at December 31, 2017 78,121  62,812  75,832 
  Revisions of Previous Estimates 426  3,470  3,541 
  Extensions, Discoveries and Other Additions 28,348  28,516  33,241 
  Purchases of Minerals in Place 37,397  25,965  32,198 
  Production (9,225) (7,790) (9,328)
Proved Developed and Undeveloped Reserves at December 31, 2018 135,066  112,973  135,484 
Revisions of Previous Estimates (5,146) (15,497) (16,355)
Extensions, Discoveries and Other Additions 22,019  19,992  23,662 
Purchases of Minerals in Place 53,969  25,611  34,606 
Production (16,591) (11,325) (14,091)
Proved Developed and Undeveloped Reserves at December 31, 2019 189,318  131,754  163,307 
Revisions of Previous Estimates (21,512) (33,289) (36,874)
Extensions, Discoveries and Other Additions 8,308  6,921  8,306 
Production (16,473) (9,361) (12,107)
Proved Developed and Undeveloped Reserves at December 31, 2020 159,641  96,025  122,632 
Proved Developed Reserves:    
December 31, 2017 46,518  38,593  46,346 
December 31, 2018 82,315  62,497  76,216 
December 31, 2019 116,846  77,160  96,634 
December 31, 2020 114,060  65,135  84,145 
Proved Undeveloped Reserves:    
December 31, 2017 31,603  24,220  29,487 
December 31, 2018 52,752  50,476  59,268 
December 31, 2019 72,473  54,594  66,673 
December 31, 2020 45,581  30,890  38,487 
Summary of standardized measure of discounted future net cash flows
The following table presents a standardized measure of discounted future net cash flows relating to proved crude oil and natural gas reserves and the changes in standardized measure of discounted future net cash flows relating to proved crude oil and natural gas were prepared in accordance with the provisions of ASC 932 Extractive Activities - Oil and Gas. Future cash inflows were computed by applying average prices of crude oil and natural gas for the last 12 months to estimated future production. Future production and development costs were computed by estimating the expenditures to be incurred in developing and producing the proved crude oil and natural gas reserves at the end of the year, based on year end costs and assuming continuation of existing economic conditions.  Future income tax expenses were calculated by applying appropriate year end tax rates to future pretax cash flows relating to proved crude oil and natural gas reserves, less the tax basis of properties involved and tax credits and loss carry forwards relating to crude oil and natural gas producing activities.  Future net cash flows are discounted at the rate of 10% annually to derive the standardized measure of discounted future cash flows. Actual future cash inflows may vary considerably, and the standardized measure does not necessarily represent the fair value of the Company’s crude oil and natural gas reserves.
  December 31,
(In thousands) 2020 2019 2018
Future Cash Inflows $ 3,395,670  $ 7,059,586  $ 7,524,587 
Future Production Costs (1,747,325) (2,868,762) (2,605,279)
Future Development Costs (416,507) (855,041) (784,615)
Future Income Tax Expense (3,273) (320,528) (611,989)
Future Net Cash Inflows $ 1,228,565  $ 3,015,255  $ 3,522,704 
10% Annual Discount for Estimated Timing of Cash Flows (516,554) (1,337,194) (1,643,061)
Standardized Measure of Discounted Future Net Cash Flows $ 712,011  $ 1,678,061  $ 1,879,643 
Prices for reserve estimates The prices for the Company’s reserve estimates were as follows:
Natural Gas
MCF
Oil
Bbl
December 31, 2020 $ 1.61  $ 32.69 
December 31, 2019 $ 2.12  $ 50.53 
December 31, 2018 $ 4.50  $ 61.23 
Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10%
Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum follow:
  December 31,
(In thousands) 2020 2019 2018
Beginning of Period $ 1,678,061  $ 1,879,643  $ 753,986 
Sales of Oil and Natural Gas Produced, Net of Production Costs (177,932) (424,548) (381,961)
Extensions and Discoveries 52,232  282,528  549,353 
Previously Estimated Development Cost Incurred During the Period
78,633  100,987  115,542 
Net Change of Prices and Production Costs (815,278) (680,119) 484,122 
Change in Future Development Costs (150,991) (174,729) (91,829)
Revisions of Quantity and Timing Estimates (280,481) (226,721) 66,185 
Accretion of Discount 182,202  218,023  75,800 
Change in Income Taxes 143,438  156,621  (296,571)
Purchases of Minerals in Place —  338,289  502,193 
Other 2,127  208,087  19,902 
End of Period $ 712,011  $ 1,678,061  $ 1,879,643