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SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 2020 and 2019, respectively:


	December 31,
(In thousands)	2021		2020		2019
Capitalized Certain Payroll and Other Internal Costs	$	1,353	$	1,159	$	995
Capitalized Interest Costs	1,103		556		644
Total	$	2,456	$	1,716	$	1,638

The costs incurred in crude oil and natural gas acquisition, exploration and development activities are highlighted in the table below.


	December 31,
(In thousands)	2021		2020		2019
Costs Incurred for the Year:
Proved Property Acquisition and Other	$	434,519	$	50,345	$	375,145
Unproved Property Acquisition	19,358		770		9,540
Development	202,325		162,797		369,233
Total	$	656,202	$	213,912	$	753,918

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, 2021 by year incurred.


	December 31,
(In thousands)	2021		2020		2019		Prior Years
Property Acquisition	$	15,991	$	240	$	4,664	$	4,102
Development	—		—		—		—
Total	$	15,991	$	240	$	4,664	$	4,102

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, 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

Revisions of Previous Estimates	89,115	19,914	34,766
Extensions, Discoveries and Other Additions	32,432	12,759	18,164
Purchases of Minerals in Place	700,610	14,985	131,753
Production	(44,074)	(12,288)	(19,634)

Proved Developed and Undeveloped Reserves at December 31, 2021	937,724	131,395	287,682

Proved Developed Reserves:
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
December 31, 2021	498,558	87,505	170,598
Proved Undeveloped Reserves:
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
December 31, 2021	439,165	43,890	117,084

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)	2021		2020		2019
Future Cash Inflows	$	11,339,861	$	3,395,670	$	7,059,586
Future Production Costs	(4,213,186)		(1,747,325)		(2,868,762)
Future Development Costs	(932,480)		(416,507)		(855,041)
Future Income Tax Expense	(947,303)		(3,273)		(320,528)
Future Net Cash Inflows	$	5,246,892	$	1,228,565	$	3,015,255

10% Annual Discount for Estimated Timing of Cash Flows	(2,356,783)		(516,554)		(1,337,194)

Standardized Measure of Discounted Future Net Cash Flows	$	2,890,109	$	712,011	$	1,678,061

Prices for reserve estimates

The prices for the Company’s reserve estimates were as follows:


	Natural Gas MCF		Oil Bbl
December 31, 2021	$	3.37	$	62.25
December 31, 2020	$	1.61	$	32.69
December 31, 2019	$	2.12	$	50.53

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)	2021		2020		2019
Beginning of Period	$	712,011	$	1,678,061	$	1,879,643
Sales of Oil and Natural Gas Produced, Net of Production Costs	(727,317)		(177,932)		(424,548)
Extensions and Discoveries	258,399		52,232		282,528
Previously Estimated Development Cost Incurred During the Period	85,526		78,633		100,987
Net Change of Prices and Production Costs	1,366,197		(815,278)		(680,119)
Change in Future Development Costs	(103,806)		(150,991)		(174,729)
Revisions of Quantity and Timing Estimates	607,774		(280,481)		(226,721)
Accretion of Discount	71,254		182,202		218,023
Change in Income Taxes	(450,455)		143,438		156,621
Purchases of Minerals in Place	940,910		—		338,289
Other	129,615		2,127		19,902
End of Period	$	2,890,109	$	712,011	$	1,678,061

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details