Acquisition and Disposition of Properties

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Acquisition and Disposition of Properties

ACQUISITION AND DISPOSITION OF PROPERTIES

In the first quarter of 2018, Energen completed acreage swaps which delivered 1,922.4 net acres in the Midland Basin to a third party, while it received 1,230.7 net acres in the Delaware Basin along with $0.7 million cash. Energen recognized a pre-tax gain of $33.4 million based on the fair value of the asset surrendered in the acreage trade. In the second quarter of 2018, Energen completed an acreage swap which delivered 240 net acres in the Central Basin platform to a third party, while it received 129.23 net acres in the Midland Basin. Energen recognized a pre-tax gain of $0.7 million based on the fair value of the asset surrendered in the acreage trade.

During the six months ended June 30, 2018, Energen completed an estimated total of $34.2 million in various purchases and renewals of unproved acquisitions, which are accounted for as asset acquisitions, including approximately $29.0 million in the Delaware Basin and approximately $5.2 million in the Midland Basin for unproved leasehold. During the six months ended June 30, 2017, Energen completed an estimated $235.6 million in various purchases and renewals of unproved acquisitions, including approximately $185.9 million in the Delaware Basin and approximately $30.9 million in the Midland Basin for unproved leasehold and $18.8 million for mineral purchases in the Delaware Basin. In addition, during the year-to-date June 30, 2018, Energen completed $4.8 million in various proved property acquisitions.