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Property and Equipment
12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT
The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of December 31, 2016 and 2015 are as follows:
 
December 31,
 
2016
 
2015
 
(In thousands)
Oil and natural gas properties
$
6,071,920

 
$
5,424,342

Office furniture and fixtures
21,204

 
12,589

Building
42,530

 
16,915

Land
5,252

 
3,667

Total property and equipment
6,140,906

 
5,457,513

Accumulated depletion, depreciation, amortization and impairment
(3,789,780
)
 
(2,829,110
)
Property and equipment, net
$
2,351,126

 
$
2,628,403


At December 31, 2016 and 2015, the net book value of the Company's oil and natural gas properties was above the calculated ceiling as a result of the reduced commodity prices during the years ended December 31, 2016 and 2015, respectively. As a result, the Company recorded an impairment of its oil and natural gas properties under the full cost method of accounting in the amount of $715.5 million and $1.4 billion for the years ended December 31, 2016 and 2015, respectively. No impairment of oil and natural gas properties was required under the ceiling test for the year ended December 31, 2014.
Included in oil and natural gas properties at December 31, 2016 and 2015 is the cumulative capitalization of $129.9 million and $100.6 million, respectively, in general and administrative costs incurred and capitalized to the full cost pool. General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities were charged to expense as they were incurred. Capitalized general and administrative costs were approximately $29.3 million, $27.9 million and $25.2 million for the years ended December 31, 2016, 2015 and 2014, respectively.
The following is a summary of Gulfport’s oil and gas properties not subject to amortization as of December 31, 2016:
 
Costs Incurred in
 
2016
 
2015
 
2014
 
Prior to 2014
 
Total
 
(In thousands)
Acquisition costs
$
147,382

 
$
515,905

 
$
314,077

 
$
571,924

 
$
1,549,288

Exploration costs

 

 

 

 

Development costs
18,853

 
5,067

 
3,248

 
1,533

 
28,701

Capitalized interest
3,632

 
(876
)
 
(2,504
)
 
2,064

 
2,316

Total oil and gas properties not subject to amortization
$
169,867

 
$
520,096

 
$
314,821

 
$
575,521

 
$
1,580,305


The following table summarizes the Company’s non-producing properties excluded from amortization by area as of December 31, 2016:
 
December 31, 2016
 
(In thousands)
Utica
$
1,577,207

Niobrara
2,172

Southern Louisiana
462

Bakken
96

Other
368

 
$
1,580,305


As of December 31, 2015, approximately $1.8 billion of non-producing leasehold costs was not subject to amortization.
The Company evaluates the costs excluded from its amortization calculation at least annually. Subject to industry conditions and the level of the Company’s activities, the inclusion of most of the above referenced costs into the Company’s amortization calculation typically occurs within three to five years. However, the majority of the Company's non-producing leases have five year extension terms which could extend this time frame beyond five years.
A reconciliation of the Company's asset retirement obligation for the years ended December 31, 2016 and 2015 is as follows:
 
December 31,
 
2016
 
2015
 
(In thousands)
Asset retirement obligation, beginning of period
$
26,437

 
$
17,938

Liabilities incurred
10,971

 
8,800

Liabilities settled
(4,189
)
 
(1,121
)
Accretion expense
1,057

 
820

Asset retirement obligation as of end of period
34,276

 
26,437

Less current portion
195

 
75

Asset retirement obligation, long-term
$
34,081

 
$
26,362