Annual report pursuant to Section 13 and 15(d)

Supplemental Oil and Gas Disclosures-unaudited (Tables)

v2.4.0.6
Supplemental Oil and Gas Disclosures-unaudited (Tables)
12 Months Ended
Dec. 31, 2012
Capitalized Costs Related to Oil and Natural Gas

Net capitalized costs related to our oil, NGLs and natural gas producing activities are as follows (in millions):

 

     December 31,  
     2012     2011     2010  

Net capitalized cost:

      

Proved oil and natural gas properties and equipment

   $ 6,551.5      $ 5,775.4      $ 5,130.9   

Unproved oil and natural gas properties and equipment

     143.0        183.6        94.7   

Accumulated depreciation, depletion and amortization related to oil, NGLs and natural gas activities

     (4,640.8     (4,307.1     (4,009.9
  

 

 

   

 

 

   

 

 

 

Net capitalized costs related to producing activities

   $ 2,053.7      $ 1,651.9      $ 1,215.7   
  

 

 

   

 

 

   

 

 

 
Capitalized Costs Not Subject to Amortization

The following table provides a summary of costs that are not being amortized as of December 31, 2012, by the year in which the costs were incurred (in millions):

 

     Total      2012      2011      2010      Prior to
2010
 

Costs excluded by year incurred:

              

Acquisition costs

   $ 99.8       $ 13.1       $ 67.4       $       $ 19.3   

Capitalized interest not subject to amortization

     23.7         9.1         6.1         2.1         6.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total costs not subject to amortization

   $ 123.5       $ 22.2       $ 73.5       $ 2.1       $ 25.7   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Cost Incurred in Oil and Gas Property Acquisition Exploration and Development Activities

The following costs were incurred in oil and gas acquisition, exploration, and development activities (in millions):

 

     Year Ended December 31,  
     2012      2011      2010  

Costs incurred (1):

        

Proved property acquisitions

   $ 239.8       $ 369.9       $ 277.3   

Exploration (2) (3)

     151.3         92.7         70.8   

Development

     363.7         203.7         158.3   

Unproved property acquisitions (4)

     26.5         95.1         19.7   
  

 

 

    

 

 

    

 

 

 

Total costs incurred in oil and gas property acquisition, exploration and development activities

   $ 781.3       $ 761.4       $ 526.1   
  

 

 

    

 

 

    

 

 

 

 

(1) Includes additions (reductions) to our ARO of $86.9 million, $32.8 million and $106.1 million during 2012, 2011 and 2010, respectively, associated with acquisitions, liabilities incurred and revisions of estimates. Refer to Note 5.
(2) Includes seismic costs of $6.2 million, $8.0 million and $5.8 million incurred during 2012, 2011 and 2010, respectively.
(3) Includes geological and geophysical costs charged to expense of $6.2 million, $6.8 million and $4.3 million during 2012, 2011 and 2010, respectively.
(4) The amounts for 2012, 2011 and 2010 include capitalized interest associated with properties classified as unproved at December 31, 2012, 2011 and 2010, respectively.
Schedule of Depreciation, Depletion, Amortization and Accretion Expense

The following table presents our depreciation, depletion, amortization and accretion expense per million cubic feet equivalent (“Mcfe”) of products sold.

 

     Year Ended December 31,  
     2012      2011      2010  

Depreciation, depletion, amortization and accretion per Mcfe

   $ 3.47       $ 3.24       $ 3.38   
Schedule of Oil and Natural Gas Information

The following sets forth estimated quantities of our net proved, proved developed and proved undeveloped oil, NGLs and natural gas reserves. All of the reserves are located in the Unites States and the majority of the reserves are located in the Gulf of Mexico. These reserve estimates exclude insignificant royalties and interests owned by the Company due to the unavailability of such information.

 

                       Total Equivalent Reserves  
     Oil
(MMBbls) (1)
    NGLs
(MMBbls) (1)
    Natural Gas
(Bcf)  (1)
    Oil
Equivalent
(MMBoe) (2)
    Natural  Gas
Equivalent
(Bcfe) (2)
 

Proved reserves as of December 31, 2009

     31.2        3.0        165.8        61.8        371.0   

Revisions of previous estimates (3)

     (0.2     1.2        14.6        3.4        20.2   

Extensions and discoveries (4)

     1.2        0.5        19.1        4.9        29.2   

Purchase of minerals in place (5)

     7.7        0.7        101.5        25.3        152.0   

Production

     (5.9     (1.2     (44.7     (14.5     (87.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Proved reserves as of December 31, 2010

     34.0        4.2        256.3        80.9        485.4   

Revisions of previous estimates (6)

     0.8        5.5        13.5        8.6        51.1   

Extensions and discoveries (7)

     2.0        0.4        17.7        5.3        32.0   

Purchase of minerals in place (8)

     20.7        8.9        55.9        39.0        234.1   

Production

     (6.1     (1.9     (53.7     (16.9     (101.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Proved reserves as of December 31, 2011

     51.4        17.1        289.7        116.9        701.1   

Revisions of previous estimates (9)

     (1.1     (2.6     (4.8     (4.6     (27.5

Extensions and discoveries (10)

     8.2        2.6        29.6        15.7        94.5   

Purchase of minerals in place (11)

     2.5        0.2        25.5        7.0        42.0   

Sales of reserves (12)

     (0.2           (1.1     (0.4     (2.2

Production

     (6.0     (2.1     (53.8     (17.1     (102.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Proved reserves as of December 31, 2012

     54.8        15.2        285.1        117.5        705.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Year-end proved developed reserves:

          

2012

     35.3        11.0        243.5        86.9        521.2   

2011

     23.4        11.0        251.4        76.4        458.2   

2010

     23.6        3.4        229.1        65.2        391.3   

Year-end proved undeveloped reserves:

          

2012

     19.5        4.2        41.6        30.6        183.9   

2011

     28.0        6.1        38.3        40.5        242.9   

2010

     10.4        0.8        27.2        15.7        94.1   

 

(1) Estimated reserves as of December 31, 2012, 2011, 2010 and 2009 are based on the unweighted average of first-day-of-the-month commodity prices over the period January through December for those years in accordance with current definitions and guidelines set forth by the SEC and the FASB.
(2) The conversion to barrels of oil equivalent and cubic feet equivalent were determined using the energy-equivalent ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or NGLs (totals may not compute due to rounding). The energy-equivalent ratio does not assume price equivalency, and the energy-equivalent prices for oil, NGLs and natural gas may differ significantly.
(3) Includes revisions due to price of 17.5 Bcfe.
(4) Includes discoveries of 21.9 Bcfe primarily in the Main Pass 108, Main Pass 98 and Main Pass 283 fields and extensions of 7.2 Bcfe primarily in the Main Pass 283 field.
(5) Primarily due to the acquisition of the Total Properties and the Tahoe Properties.
(6) Includes revision of 6.3 Bcfe due to an increase in average prices; 16.5 Bcfe for a change in NGLs marketing arrangements; 11.3 Bcfe increase due to additional compression at our Tahoe field that increases production and ultimate recoveries; and 10.6 Bcfe at our Fairway field for revisions to reserve estimates from the acquisition date to year end.
(7) Includes discoveries of 13.9 Bcfe at our Main Pass 98 field and 8.0 Bcfe at our Ship Shoal 349/359 field and extensions of 3.7 Bcfe at our Main Pass 108 field.
(8) Primarily due to the acquisition of the Yellow Rose Properties and the Fairway Properties.
(9) Includes downward revisions due to price of 8.0 Bcfe and negative performance revisions of 17.9 Bcfe at our Yellow Rose Properties.
(10) Includes extensions and discoveries of 69.5 Bcfe at our Yellow Rose Properties and extensions and discoveries of 16.2 Bcfe at our High Island 22 field.
(11) Due to the acquisition of the Newfield Properties.
(12) Due to the sale of our interest in the South Timbalier 41 field.
Schedule of Prices Weighted by Field Production Related to Proved Reserves

applied to the oil price using FASB/SEC guidance. The average commodity prices weighted by field production related to the proved reserves are as follows:

 

     December 31,  
     2012      2011      2010      2009  

Oil – per barrel

   $ 98.13       $ 97.36       $ 76.28       $ 55.87   

NGLs – per barrel

     47.30         51.30         44.92         33.36   

Natural gas – per Mcf

     2.77         4.11         4.57         3.80   
Standardized Measure of Discounted Future Net Cash Flows

later years and the risks inherent in reserve estimates. The standardized measure of discounted future net cash flows relating to our proved oil and natural gas reserves is as follows (in thousands):

 

     Year Ended December 31,  
     2012     2011     2010  

Standardized Measure of Discounted Future Net Cash Flows

      

Future cash inflows

   $ 6,888,431      $ 7,077,206      $ 3,953,655   

Future costs:

      

Production

     (1,858,282     (1,862,488     (1,011,552

Development

     (655,406     (543,017     (243,570

Dismantlement and abandonment

     (508,051     (513,620     (520,490

Income taxes

     (1,002,127     (1,126,573     (495,696
  

 

 

   

 

 

   

 

 

 

Future net cash inflows before 10% discount

     2,864,565        3,031,508        1,682,347   

10% annual discount factor

     (1,018,188     (1,025,131     (503,275
  

 

 

   

 

 

   

 

 

 
   $ 1,846,377      $ 2,006,377      $ 1,179,072   
  

 

 

   

 

 

   

 

 

 
Schedule of Changes In Standardized Measure
     Year Ended December 31,  
     2012     2011     2010  

Changes in Standardized Measure

      

Standardized measure, beginning of year

   $ 2,006,377      $ 1,179,072      $ 660,396   

Increases (decreases):

      

Sales and transfers of oil and gas produced, net of production costs

     (620,437     (729,574     (521,551

Net changes in price, net of future production costs

     (224,260     634,174        367,575   

Extensions and discoveries, net of future production and development costs

     181,870        219,924        143,612   

Changes in estimated future development costs

     (103,320     (4,572     (59,124

Previously estimated development costs incurred

     332,939        173,911        97,188   

Revisions of quantity estimates

     (128,075     204,988        94,735   

Accretion of discount

     231,144        135,791        68,862   

Net change in income taxes

     99,684        (398,204     (221,226

Purchases of reserves in-place

     270,168        483,286        624,302   

Sales of reserves in-place

     (16,105             

Changes in production rates due to timing and other

     (183,608     107,581        (75,697
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) in standardized measure

     (160,000     827,305        518,676   
  

 

 

   

 

 

   

 

 

 

Standardized measure, end of year

   $ 1,846,377      $ 2,006,377      $ 1,179,072