SUPPLEMENTAL DISCLOSURES ABOUT NATURAL GAS PRODUCING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2019

Extractive Industries [Abstract]

Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure

Capitalized costs related to Tellurian’s natural gas producing activities are summarized as follows (in thousands):

	December 31,
	2019			2018			2017
Proved properties	$	142,494		$	101,459		$	90,869
Unproved properties	—			10,204			13,000
Gross capitalized costs	142,494			111,663			103,869
Accumulated DD&A	(21,010		)	(1,335		)	(149		)
Net capitalized costs	$	121,484		$	110,328		$	103,720

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure

Costs incurred in natural gas property acquisition (inclusive of producing well costs), exploration and development activities are summarized as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Property acquisitions:
Proved	$	45,484	$	13,261	$	90,869
Unproved	—		204		13,000
Exploration costs	—		—		—
Development	800		2,104		949
Costs incurred	$	46,284	$	15,569	$	104,818

Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure

The following table includes revenues and expenses directly associated with our natural gas and condensate producing activities. It does not include any interest costs or indirect general and administrative costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of our natural gas operations. Tellurian’s results of operations from natural gas and condensate producing activities for the periods presented are as follows (in thousands):

	Year Ended December 31,
	2019			2018			2017
Natural gas sales	$	28,774		$	4,423		$	503
Operating costs	14,923			11,251			1,668
Depreciation, depletion and amortization	19,736			1,228			115
Impairment charge	—			2,699			—
Total operating costs and expenses	34,659			15,178			1,783
Results of operations	$	(5,885	)	$	(10,755	)	$	(1,280	)

Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities

	Gas (MMcf)		Condensate (Mbbl)		Gas Equivalent (MMcfe)
Proved reserves:
December 31, 2016	—		—		—
Extensions, discoveries and other additions	—		—		—
Revisions of previous estimates	—		—		—
Production	(190	)	—		(191	)
Sale of reserves-in-place	—		—		—
Purchases of reserves-in-place	327,308		10		327,371
December 31, 2017	327,118		10		327,180
Extensions, discoveries and other additions	22,481		—		22,481
Revisions of previous estimates	(84,061	)	(2	)	(84,072	)
Production	(1,399	)	(1	)	(1,405	)
Sale of reserves-in-place	—		—		—
Purchases of reserves-in-place	715		—		715
December 31, 2018	264,854		7		264,899
Extensions, discoveries and other additions	12,848		—		12,848
Revisions of previous estimates	4,737		(6	)	4,696
Production	(13,901	)	(1	)	(13,905	)
Sale of reserves-in-place	—		—		—
Purchases of reserves-in-place	—		—		—
December 31, 2019	268,538		—		268,538
Proved developed reserves:
December 31, 2017	5,720		10		5,782
December 31, 2018	17,522		7		17,567
December 31, 2019	30,699		—		30,699
Proved undeveloped reserves:
December 31, 2017	321,398		—		321,398
December 31, 2018	247,332		—		247,332
December 31, 2019	237,839		—		237,839

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure

The following summary sets forth our future net cash flows relating to proved natural gas and condensate reserves based on the standardized measure (in thousands):

	Year Ended December 31,
	2019			2018			2017
Future cash inflows	$	534,577		$	676,454		$	777,711
Future production costs	(102,268		)	(105,341		)	(144,991		)
Future development costs	(287,111		)	(264,239		)	(331,297		)
Future income tax provisions	(6,612		)	(54,564		)	(52,212		)
Future net cash flows	138,586			252,310			249,211
Less effect of a 10% discount factor	(85,415		)	(106,499		)	(161,009		)
Standardized measure of discounted future net cash flows	$	53,171		$	145,811		$	88,202

The following table sets forth the changes in the standardized measure of discounted future net cash flows (in thousands):

December 31, 2016	$	—
Sales and transfers of gas and condensate produced, net of production costs	(265		)
Net changes in prices and production costs	—
Extensions, discoveries, additions and improved recovery, net of related costs	—
Development costs incurred	—
Revisions of estimated development costs	—
Revisions of previous quantity estimates	—
Accretion of discount	—
Net change in income taxes	(22,921		)
Purchases of reserves in place	111,388
Sales of reserves in place	—
Changes in timing and other	—
December 31, 2017	$	88,202
Sales and transfers of gas and condensate produced, net of production costs	(1,773		)
Net changes in prices and production costs	27,530
Extensions, discoveries, additions and improved recovery, net of related costs	13,334
Development costs incurred	545
Revisions of estimated development costs	9,663
Revisions of previous quantity estimates	12,991
Accretion of discount	11,112
Net change in income taxes	(9,472		)
Purchases of reserves in place	844
Sales of reserves in place	—
Changes in timing and other	(7,165		)
December 31, 2018	$	145,811
Sales and transfers of gas and condensate produced, net of production costs	(21,704		)
Net changes in prices and production costs	(134,366		)
Extensions, discoveries, additions and improved recovery, net of related costs	2,019
Development costs incurred	23,485
Revisions of estimated development costs	6,165
Revisions of previous quantity estimates	(12,660		)
Accretion of discount	17,821
Net change in income taxes	28,316
Purchases of reserves in place	—
Sales of reserves in place	—
Changes in timing and other	(1,716		)
December 31, 2019	$	53,171