XML 52 R33.htm IDEA: XBRL DOCUMENT v3.22.0.1
Supplemental Oil and Natural Gas Disclosures (Tables)
 12 Months Ended
Dec. 31, 2021
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities
Costs incurred in oil and natural gas property acquisition, exploration and development, whether capitalized or expensed, are presented below:
 Year Ended December 31,
 202120202019
 (in thousands)
Acquisition Costs of Properties1:
   
Proved$4,965 $— $2,288 
Unproved15,559 28 41,643 
Exploration Costs1,049 — 3 
Development Costs1
3,964 2,742 34,617 
Total$25,537 $2,770 $78,551 
 
1 See Note 4 – Oil and Natural Gas Properties for further discussion. Unproved properties include purchases of leasehold prospects. Development costs include costs incurred on farmout wells subject to reimbursement under the Partnership's farmout agreements.
Capitalized Costs Relating to Oil and Gas Producing Activities
Aggregate capitalized costs related to oil and natural gas production activities with applicable accumulated depreciation, depletion, and amortization, including impairments, are presented below:
 As of December 31,
 20212020
 (in thousands)
Proved properties1
$2,064,232 $2,220,354 
Unproved properties937,395 937,464 
Total3,001,627 3,157,818 
Accumulated depreciation, depletion, amortization, and impairment(1,869,731)(1,987,332)
Oil and natural gas properties, net$1,131,896 $1,170,486 
1 Proved properties include capitalized costs related to farmout wells not yet assigned.
Schedule of Oil and Gas In Process Activities
The following table sets forth estimated net quantities of the Partnership’s proved, proved developed, and proved undeveloped oil and natural gas reserves. Estimated reserves for the periods presented are based on the unweighted average of first-day-of-the-month commodity prices over the period January through December for the year in accordance with definitions and guidelines set forth by the SEC and the FASB. For estimates of oil reserves, the average WTI spot oil prices used were $66.55, $39.54, and $55.85 per barrel as of December 31, 2021, 2020, and 2019, respectively. These average prices are adjusted for quality, transportation fees, and market differentials. For estimates of natural gas reserves, the average Henry Hub prices used were $3.60, $1.99, and $2.58 per MMBTU as of December 31, 2021, 2020, and 2019, respectively. These average prices are adjusted for energy content, transportation fees, and market differentials. Natural gas prices are also adjusted to account for NGL revenue since there is not sufficient data to account for NGL volumes separately in the reserve estimates. These reserve estimates exclude insignificant natural gas liquid quantities owned by the Partnership. When taking these adjustments into account, the average adjusted prices weighted by production over the remaining lives of the properties were $63.17 per barrel for oil and $3.37 per Mcf for natural gas as of December 31, 2021, $36.43 per barrel for oil and $1.60 per Mcf for natural gas as of December 31, 2020, and $52.15 per barrel for oil and $2.36 per Mcf for natural gas as of December 31, 2019.
 Crude Oil (MBbl)Natural Gas (MMcf)Total (MBoe)
Net proved reserves at December 31, 2018
17,567 314,020 69,904 
Revisions of previous estimates 1
951 19,136 4,140 
Purchases of minerals in place2
46 279 92 
Extensions, discoveries and other additions3
3,263 53,158 12,123 
Production(4,777)(77,635)(17,716)
Net proved reserves at December 31, 2019
17,050 308,958 68,543 
Revisions of previous estimates1
2,490 (22,337)(1,233)
Sales of minerals in place4
(1,262)(3,132)(1,784)
Extensions, discoveries and other additions3
1,569 24,667 5,680 
Production(3,895)(67,945)(15,219)
Net proved reserves at December 31, 2020
15,952 240,211 55,987 
Revisions of previous estimates1
4,817 38,537 11,240 
Purchases of minerals in place2
272 216 308 
Sales of minerals in place4
(135)(6,194)(1,167)
Extensions, discoveries and other additions3
1,911 32,592 7,343 
Production(3,646)(61,445)(13,887)
Net proved reserves at December 31, 2021
19,171 243,917 59,824 
Net Proved Developed Reserves   
December 31, 201917,050 263,371 60,945 
December 31, 202015,952 230,411 54,354 
December 31, 202119,111 224,222 56,481 
Net Proved Undeveloped Reserves   
December 31, 2019— 45,587 7,598 
December 31, 2020— 9,800 1,633 
December 31, 202160 19,695 3,343 
1 Revisions of previous estimates include technical revisions due to changes in commodity prices, historical and projected performance and other factors. The most notable revisions in 2019 are related to well performance in certain Haynesville/ Bossier wells. The most notable revisions in 2020 are related to a reduction of royalty on certain Haynesville/Bossier wells in order to incentivize the operator to complete and turn the wells to sales. The most notable revisions in 2021 are related to changes in commodity pricing.
2 Includes the acquisition of mineral and royalty reserves. In 2020 these were primarily in East Texas and the Permian Basin and in 2021 these were primarily in the Permian Basin.
3 Includes extensions and additions related to drilling activities within multiple basins.
4 Includes divestitures of mineral and royalty reserves. In 2020 these were primarily in the Permian Basin and in 2021 these were primarily in the Anadarko Basin.
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves
 Year Ended December 31,
 202120202019
 (in thousands)
Future cash inflows$2,033,256 $965,007 $1,619,147 
Future production costs(206,785)(99,124)(177,550)
Future development costs(43,500)(59,692)(54,132)
Future income tax expense(6,322)(3,019)(5,244)
Future net cash flows (undiscounted)1,776,649 803,172 1,382,221 
Annual discount 10% for estimated timing
(804,527)(309,675)(534,327)
Total$972,122 $493,497 $847,894 
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows The following summarizes the principal sources of change in the standardized measure of discounted future net cash flows:
 Year Ended December 31,
 202120202019
 (in thousands)
Standardized measure, beginning of year$493,497 $847,894 $1,087,616 
Sales, net of production costs(428,577)(230,062)(384,745)
Net changes in prices and production costs related to future production537,659 (242,634)(229,651)
Extensions, discoveries and improved recovery, net of future production and development costs148,732 65,903 186,424 
Previously estimated development costs incurred during the period245 — — 
Revisions of estimated future development costs2,254 (1,530)1,198 
Revisions of previous quantity estimates, net of related costs210,039 (24,195)51,405 
Accretion of discount49,530 85,109 109,158 
Purchases of reserves in place, less related costs9,254 — 1,730 
Sales of reserves in place1
(1,037)(26,795)(3,323)
Changes in timing and other(49,474)19,807 28,082 
Net increase (decrease) in standardized measures478,625 (354,397)(239,722)
Standardized measure, end of year$972,122 $493,497 $847,894