Supplemental Information on Natural Gas and Oil Exploration, Development and Production Activities (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Capitalized Costs and Accumulated Depreciation, Depletion and Amortization

Capitalized Costs and Accumulated Depreciation, Depletion and Amortization ^(a)

	December 31,
	2014			2013			2012
	(in thousands)
Natural gas and oil properties:
Properties subject to depletion	$	9,624,725		$	8,225,859		$	7,368,308
Unproved properties		943,246			807,022			743,467
Total		10,567,971			9,032,881			8,111,775
Accumulated depreciation, depletion and amortization		(2,590,398	)		(2,274,444	)		(2,015,591	)
Net capitalized costs	$	7,977,573		$	6,758,437		$	6,096,184

^(a)	Includes capitalized asset retirement costs and the associated accumulated amortization.

Costs Incurred for Property Acquisition, Exploration and Development

Costs Incurred for Property Acquisition, Exploration and Development ^(a)

	December 31,
	2014		2013		2012
	(in thousands)
Acquisitions ^(b)	$	404,252	$	¾	$	¾
Acreage purchases		226,475		137,538		188,843
Development		1,119,896		938,668		1,049,129
Exploration:
Drilling		180,925		189,742		309,816
Expense		58,979		60,384		65,758
Stock-based compensation expense		4,569		4,025		4,049
Gas gathering facilities:
Development		13,137		47,086		41,035
Subtotal		2,008,233		1,377,443		1,658,630
Asset retirement obligations		56,822		76,373		57,982
Total costs incurred	$	2,065,055	$	1,453,816	$	1,716,612

^(a)	Includes cost incurred whether capitalized or expensed.

^(b)	See also Note 3 for additional information related to the Conger Exchange which includes $134.8 million of gas gathering assets received in the exchange and $11.9 million of asset retirement obligations added in the exchange.

Proved Developed and Undeveloped Reserves


	Natural Gas			NGLs			Crude Oil and Condensate			Natural Gas Equivalents
	(Mmcf)			(Mbbls)			(Mbbls)			(Mmcfe) ^(a)
Proved developed and undeveloped reserves:
Balance, December 31, 2011		4,009,676			142,515			31,532			5,053,961
Revisions		76,925			3,036			2,316			109,036
Extensions, discoveries and additions		996,059			113,392			15,131			1,767,202
Purchases		—			—			—			—
Property sales		(73,429	)		(11,575	)		(1,046	)		(149,153	)
Production		(216,555	)		(6,969	)		(2,851	)		(275,476	)
Balance, December 31, 2012		4,792,676			240,399			45,082			6,505,570
Revisions		384,825			7,743			2,935			448,898
Extensions, discoveries and additions		853,746			135,810			10,723			1,732,944
Purchases		¾			¾			¾			¾
Property sales		(101,074	)		(286	)		(6,553	)		(142,116	)
Production		(264,528	)		(9,254	)		(3,827	)		(343,022	)
Balance, December 31, 2013		5,665,645			374,412			48,360			8,202,274
Revisions		(30,566	)		19,716			515			90,822
Extensions, discoveries and additions		1,393,108			154,664			12,936			2,398,709
Purchases		262,813			¾			¾			262,813
Property sales		(81,238	)		(14,064	)		(9,083	)		(220,122	)
Production		(286,926	)		(18,821	)		(4,070	)		(424,267	)
Balance, December 31, 2014		6,922,836			515,907			48,658			10,310,229
Proved developed reserves:
December 31, 2012		2,373,604			154,984			25,667			3,457,502
December 31, 2013		2,797,483			206,477			26,054			4,192,666
December 31, 2014		3,583,051			270,271			24,180			5,349,761
Proved undeveloped reserves:
December 31, 2012		2,419,072			85,415			19,415			3,048,068
December 31, 2013		2,868,162			167,935			22,306			4,009,608
December 31, 2014		3,339,785			245,636			24,478			4,960,468

^(a)	Oil and NGLs are converted to mcfe at the rate of one barrel equals six mcf based upon the approximate relative energy content of oil to natural gas, which is not indicative of the relationship of oil and natural gas prices.

Changes in Proved Undeveloped Reserves for 2013 (Mmcfe)

The following details the changes in proved undeveloped reserves for 2014 (Mmcfe):

Beginning proved undeveloped reserves at December 31, 2013	4,009,608
Undeveloped reserves transferred to developed	(620,167	)
Revisions^(a)	(147,019	)
Purchases/ (sales)	(58,045	)
Extension and discoveries	1,776,091
Ending proved undeveloped reserves at December 31, 2014	4,960,468

^(a) Includes 611,341 Mmcfe of proved undeveloped reserves dropped due to the five year rule.

Standardized Measure of Discounted Future Net Cash Flows

The standardized measure of discounted future net cash flows relating to proved natural gas, NGLs, crude oil and condensate reserves is as follows and excludes cash flows associated with derivatives outstanding at each of the respective reporting dates. Future cash inflows are net of third party transportation, gathering and compression expense.

	As of December 31,
	2014			2013
	(in thousands)
Future cash inflows	$	46,507,646		$	35,143,097
Future costs:
Production		(15,239,210	)		(10,176,140	)
Development^(a)		(4,275,693	)		(3,938,296	)
Future net cash flows before income taxes		26,992,743			21,028,661
Future income tax expense		(8,900,383	)		(6,913,196	)
Total future net cash flows before 10% discount		18,092,360			14,115,465
10% annual discount		(10,499,333	)		(8,253,234	)
Standardized measure of discounted future net cash flows	$	7,593,027		$	5,862,231

^(a) 2014 includes $439.6 million of undiscounted future asset retirement costs estimated as of December 31, 2014, using current estimates of future abandonment costs.

Changes in Discounted Future Net Cash Flows

The following table summarizes changes in the standardized measure of discounted future net cash flows.

	December 31,
	2014			2013			2012
	(in thousands)
Revisions of previous estimates:
Changes in prices and production costs	$	5,069		$	2,172,704		$	(2,498,616	)
Revisions in quantities		102,760			513,168			88,190
Changes in future development and abandonment costs		(407,688	)		(275,468	)		(354,766	)
Net change in income taxes		(441,935	)		(1,299,227	)		832,830
Accretion of discount		789,754			395,989			608,381
Purchases of reserves in place		297,358			¾			—
Additions to proved reserves from extensions, discoveries and improved recovery		2,713,999			1,981,054			1,429,340
Natural gas, NGLs and oil sales, net of production costs		(1,391,663	)		(1,286,103	)		(976,224	)
Development costs incurred during the period		755,384			462,862			562,329
Sales of reserves in place		(249,055	)		(162,463	)		(120,637	)
Timing and other		(443,187	)		135,910			(861,919	)
Net change for the year		1,730,796			2,638,426			(1,291,092	)
Beginning of year		5,862,231			3,223,805			4,514,897
End of year	$	7,593,027		$	5,862,231		$	3,223,805

- Definition

Tabular disclosure of the aggregate of costs (whether the costs are capitalized or charged to expense at the time they are incurred ) incurred for the year in oil and gas property acquisition, exploration and development activities.

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- 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.

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