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DISCLOSURES ABOUT CRUDE OIL AND NATURAL GAS PRODUCING ACTIVITIES (UNAUDITED)
 12 Months Ended
Dec. 31, 2023
Results of Operations, Revenue from Oil and Gas Producing Activities [Abstract]  
DISCLOSURES ABOUT CRUDE OIL AND NATURAL GAS PRODUCING ACTIVITIES (UNAUDITED) DISCLOSURES ABOUT CRUDE OIL AND NATURAL GAS PRODUCING ACTIVITIES (UNAUDITED)
Our crude oil and natural gas activities are located entirely within the United States. Costs incurred in the acquisition, development, and exploration of crude oil and natural gas properties, whether capitalized or expensed, are summarized below (in thousands):
Year Ended December 31,
202320222021
Acquisition(1)
$5,039,610 $437,100 $4,861,619 
Development(2)(3)
1,386,371 1,044,392 315,746 
Exploration2,178 6,981 7,937 
Total$6,428,159 $1,488,473 $5,185,302 
_________________________
(1)Acquisition costs for unproved properties for the years ended December 31, 2023, 2022, and 2021 were $414.7 million, $16.8 million, and $648.0 million, respectively. There were $4.6 billion, $420.3 million, and $4.2 billion in acquisition costs for proved properties for the years ended December 31, 2023, 2022, and 2021, respectively.
(2)Development costs include workover costs of $14.1 million, $8.6 million, and $2.2 million charged to lease operating expense for the years ended December 31, 2023, 2022, and 2021, respectively.
(3)Includes amounts relating to asset retirement obligations of $7.5 million, $64.7 million, and $13.8 million for the years ended December 31, 2023, 2022, and 2021, respectively.
Suspended Well Costs
We did not incur any exploratory well costs during the years ended December 31, 2023, 2022, and 2021.
Reserves
The proved reserve estimates at December 31, 2023, 2022, and 2021 were prepared by Ryder Scott, our third-party independent reserve engineers. The estimates of proved reserves are inherently imprecise and are continually subject to revision based on production history, results of additional exploration and development, price changes, and other factors.
All of our crude oil, natural gas, and NGL reserves are attributable to properties within the United States. A summary of our changes in quantities of proved crude oil, natural gas, and NGL reserves for the years ended December 31, 2023, 2022, and 2021 are as follows:
Crude Oil
Natural Gas
NGL
Total
 
(MBbl)
(MMcf)(MBbl)(MBoe)
Proved reserves-December 31, 2020
 52,793 235,728 26,111 118,192 
Extensions, discoveries, and other additions
 19 103 — 36 
Production (4,523)(13,852)(1,763)(8,595)
Removed from capital program
(12,249)(43,918)(4,485)(24,054)
Acquisition of reserves114,379 767,504 89,797 332,093 
Revisions to previous estimates(1)
 (6,840)(57,066)(3,632)(19,983)
Proved reserves-December 31, 2021
 143,579 888,499 106,028 397,690 
Extensions, discoveries, and other additions
 12,408 51,358 6,936 27,904 
Production (27,651)(112,478)(15,666)(62,063)
Removed from capital program
(105)(459)(46)(228)
Acquisition of reserves17,479 31,872 4,478 27,269 
Revisions to previous estimates(1)
 6,892 8,708 17,104 25,447 
Proved reserves-December 31, 2022
 152,602 867,500 118,834 416,019 
Extensions, discoveries, and other additions
12,598 31,174 3,719 21,513 
Production(36,726)(133,821)(18,400)(77,430)
Divestiture of reserves(1)
(830)(3,582)(514)(1,940)
Removed from capital program
(2,301)(7,812)(1,155)(4,758)
Acquisition of reserves151,717 635,710 114,708 372,377 
Revisions to previous estimates(1)
(4,255)(68,867)(12,249)(27,982)
Proved reserves-December 31, 2023
272,805 1,320,302 204,943 697,799 
Proved developed reserves:
December 31, 2021 104,078 748,762 88,967 317,839 
December 31, 2022 117,768 750,793 102,004 344,904 
December 31, 2023 199,585 1,077,221 162,117 541,239 
Proved undeveloped reserves:
December 31, 2021 39,501 139,737 17,061 79,851 
December 31, 2022 34,834 116,707 16,830 71,115 
December 31, 2023 73,220 243,081 42,826 156,560 
________________________
(1)Items may not recalculate due to rounding.

During the years ended December 31, 2023, 2022, and 2021, horizontal development resulted in extensions, discoveries, and other additions of 21.5 MMBoe, 27.9 MMBoe, and nominal MMBoe, respectively.

During the years ended December 31, 2023, 2022, and 2021, proved undeveloped reserves were reduced by 4.8 MMBoe, 0.2 MMBoe, and 24.1 MMBoe respectively, primarily due to the removal of proved undeveloped locations from our five-year drilling program.
As of December 31, 2023, we revised our proved reserves downward by 28.0 MMBoe. Price-related revisions of 11.1 MMBoe resulted from the decrease to SEC prices of $15.45 to $78.22 per Bbl WTI for crude oil and $3.72 to $2.64 per MMBtu HH for natural gas. Additionally we had negative revision of (i) 11.0 MMBoe from non-producing wells that have been plugged and abandoned or are planned to be plugged and abandoned, (ii) negative revisions of 14.2 MMBoe in updates to costs associated with production, and (iii) updates to well performance that resulted in negative revisions of 0.9 MMBoe. The negative revisions were partially offset by 9.2 MMBoe from increases in interests and positive volume changes in natural gas shrinks and NGL yields.

As of December 31, 2022, we revised proved reserves upward by 25.4 MMBoe. Price-related revisions of 11.8 MMBoe resulted from the increase to SEC prices of $27.11 to $93.67 per Bbl WTI for crude oil and $2.76 to $6.36 per MMBtu HH for natural gas. The remaining positive revisions of 13.6 MMBoe are primarily driven by updates to well performance forecasts and NGL yields.

As of December 31, 2021, we revised proved reserves downward by 20.0 MMBoe primarily driven by 13.1 MMBoe in negative revisions due to changes in well operating cost methodology, 6.9 MMBoe in negative engineering revisions, and 7.1 MMBoe in negative revisions for fuel gas, interest, shrink, and other minor revisions. The commodity prices at December 31, 2021 increased to $66.56 per Bbl WTI and $3.60 per MMBtu HH from $39.57 per Bbl WTI and $1.99 per MMBtu HH at December 31, 2020, resulting in a partially offsetting positive revision of 7.1 MMBoe.
The standardized measure of discounted future net cash flows relating to proved oil and gas reserves were prepared in accordance with authoritative accounting guidance. Future cash inflows were computed by applying prices to estimated future production. Future production and development costs are computed by estimating the expenditures to be incurred in developing, producing, and plugging and abandoning the proved reserves at year-end, based on current costs and assuming continuation of existing economic conditions.
Future income tax expenses are calculated by applying appropriate year-end tax rates to future pretax net cash flows relating to proved reserves. Future income tax expenses give effect to permanent differences, tax credits, and loss carryforwards relating to the proved reserves. Future net cash flows are discounted at a rate of 10% annually to derive the standardized measure of discounted future net cash flows. This calculation procedure does not necessarily result in an estimate of the fair market value or the present value of our crude oil and natural gas properties.
The standardized measure of discounted future net cash flows relating to proved reserves are as follows (in thousands):
Year Ended December 31,
202320222021
Future cash flows$27,947,743 $23,225,188 $14,401,814 
Future production costs(11,038,268)(6,490,522)(5,054,695)
Future development costs(2,366,582)(1,337,494)(1,107,576)
Future income tax expense(1,605,756)(2,870,178)(1,465,949)
Future net cash flows12,937,137 12,526,994 6,773,594 
10% annual discount for estimated timing of cash flows(4,667,858)(4,599,504)(2,361,490)
Standardized measure of discounted future net cash flows$8,269,279 $7,927,490 $4,412,104 
Future cash flows as shown above were reported without consideration for the effects of derivative transactions outstanding at period end.
The changes in the standardized measure of discounted future net cash flows relating to proved reserves are as follows (in thousands):
Year Ended December 31,
202320222021
Beginning of period$7,927,490 $4,412,104 $437,054 
Crude oil, natural gas, and NGL sales, net of production costs
(2,558,095)(2,980,527)(773,711)
Net changes in prices and production costs(4,385,615)5,016,678 874,155 
Net changes in extensions, discoveries, and other additions363,594 638,537 855 
Development costs incurred447,181 411,138 108,113 
Changes in estimated development cost(39,386)(87,466)106,788 
Acquisition of reserves
5,199,814 627,833 4,484,125 
Divestiture of reserves
(32,483)— — 
Revisions of previous quantity estimates(529,185)619,800 (84,126)
Net change in income taxes796,068 (991,734)(915,053)
Accretion of discount983,428 532,716 43,705 
Changes in production rates and other96,468 (271,589)130,199 
End of period$8,269,279 $7,927,490 $4,412,104 
Reserve estimates are based on an unweighted 12-month arithmetic average of first-day-of-the-month prices inclusive of adjustments for quality and location as of December 31, 2023, 2022, and 2021, as required by the SEC.
Year Ended December 31,
202320222021
Crude Oil (per Bbl)
$75.57 $90.28 $61.60 
Gas (per Mcf)$2.03 $5.54 $2.60 
NGL (per Bbl)
$22.69 $39.05 $30.60