|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|