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Information Regarding Proved Oil and Gas Reserves (Unaudited) (Tables) | 12 Months Ended
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Dec. 31, 2016
Extractive Industries [Abstract] |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | A summary of changes in estimated quantities of proved reserves for the years ended December 31, 2016, 2015 and 2014 is as follows:
| Gas |  | Oil |  | NGLS |  | Total
| (MMcf) |  | (Mbbl) |  | (Mbbl) |  | (MMcfe) (1)
Company: |  |  |  |  |  |  |
Balance at January 1, 2014 | 662 |  |  | 236 |  |  | — |  |  | 2,078 |
Revisions of quantity estimate | 65 |  |  | (67 | ) |  | 21 |  |  | (211 | )
Extensions and discoveries | 8 |  |  | 1 |  |  | — |  |  | 14 |
Production | (134 | ) |  | (93 | ) |  | (4 | ) |  | (716 | )
Balance at December 31, 2014 (2) | 601 |  |  | 77 |  |  | 17 |  |  | 1,165 |
Revisions of quantity estimate | (330 | ) |  | (35 | ) |  | (15 | ) |  | (630 | )
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Production | (83 | ) |  | (36 | ) |  | (2 | ) |  | (311 | )
Balance at December 31, 2015 (3) | 188 |  |  | 6 |  |  | — |  |  | 224 |
Revisions of quantity estimate | 196 |  |  | 3 |  |  | 8 |  |  | 262 |
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Production | (54 | ) |  | (2 | ) |  | — |  |  | (66 | )
Balance at December 31, 2016 (4) | 330 |  |  | 7 |  |  | 8 |  |  | 420 |
Company’s share of Laramie Energy: |  |  |  |  |  |  |
Balance at January 1, 2014 | 186,597 |  |  | 584 |  |  | 7,401 |  |  | 234,509 |
Revisions of quantity estimate | 8,876 |  |  | 34 |  |  | (1,689 | ) |  | (1,054 | )
Extensions and discoveries | 21,108 |  |  | 128 |  |  | 489 |  |  | 24,808 |
Production | (4,831 | ) |  | (18 | ) |  | (125 | ) |  | (5,689 | )
Balance at December 31, 2014 (2) | 211,750 |  |  | 728 |  |  | 6,076 |  |  | 252,574 |
Revisions of quantity estimate | (99,548 | ) |  | (316 | ) |  | (2,718 | ) |  | (117,752 | )
Extensions and discoveries | 32,041 |  |  | 131 |  |  | 1,007 |  |  | 38,869 |
Acquisitions and divestures | (5,945 | ) |  | (20 | ) |  | (171 | ) |  | (7,091 | )
Production | (4,745 | ) |  | (20 | ) |  | (149 | ) |  | (5,759 | )
Balance at December 31, 2015 (3) | 133,553 |  |  | 503 |  |  | 4,045 |  |  | 160,841 |
Revisions of quantity estimate | 38,022 |  |  | 87 |  |  | 808 |  |  | 43,392 |
Extensions and discoveries | 638 |  |  | 1 |  |  | 19 |  |  | 758 |
Acquisitions and divestures | 168,887 |  |  | 492 |  |  | 4,701 |  |  | 200,045 |
Production | (15,192 | ) |  | (59 | ) |  | (552 | ) |  | (18,858 | )
Balance at December 31, 2016 (4) | 325,908 |  |  | 1,024 |  |  | 9,021 |  |  | 386,178 |
Total at December 31, 2016 | 326,238 |  |  | 1,031 |  |  | 9,029 |  |  | 386,598 |
__________________________________________________
(1) | MMcfe is based on a ratio of 6 Mcf to 1 barrel.
(2) | During 2014, the Company's estimated proved reserves, inclusive of the Company's share of Laramie Energy's estimated proved reserves, increased by 17,152 MMcfe or approximately 7%. Extensions and discoveries related to our share of Laramie Energy's estimated proved reserves resulted in an increase of 24,808 MMcfe from the beginning of year reserves. These extensions and discoveries are primarily associated with successful completions by Laramie Energy.
(3) | During 2015, the Company's estimated proved reserves, inclusive of the Company's share of Laramie Energy's estimated proved reserves, decreased by 92,674 MMcfe or approximately 36.5%. Revisions of quantity estimate related to our share of Laramie Energy's estimated proved reserves resulted in a decrease of 117,752 MMcfe from the beginning of year reserves. These revisions of quantity estimate are primarily associated with wells becoming uneconomic during 2015.
(4) | During 2016, the Company's estimated proved reserves, inclusive of the Company's share of Laramie Energy's estimated proved reserves, increased by 225,533 MMcfe or approximately 140.0%. Acquisitions and divestitures related to our share of Laramie Energy's estimated proved reserves resulted in an increase of 200,045 MMcfe from the beginning of year reserves. This increase was primarily due to Laramie Energy's acquisition of properties in the Piceance Basin for $157.5 million in March 2016. Please read Note 3—Investment in Laramie Energy, LLC for more information. The increase of 43,392 MMcfe in Revisions of quantity estimate related to our share of Laramie Energy's estimated proved reserves is primarily due to wells that have become economic as a result of increased operator efficiency and cost reductions.
| Gas |  | Oil |  | NGLS |  | Total
| (MMcf) |  | (Mbbl) |  | (Mbbl) |  | (MMcfe) (1)
December 31, 2014 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 601 |  |  | 77 |  |  | 17 |  |  | 1,165 |
Company's share of Laramie Energy | 48,855 |  |  | 195 |  |  | 1,226 |  |  | 57,381 |
Total | 49,456 |  |  | 272 |  |  | 1,243 |  |  | 58,546 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company's share of Laramie Energy | 162,895 |  |  | 533 |  |  | 4,850 |  |  | 195,193 |
Total | 162,895 |  |  | 533 |  |  | 4,850 |  |  | 195,193 |
December 31, 2015 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 188 |  |  | 6 |  |  | — |  |  | 224 |
Company's share of Laramie Energy | 65,499 |  |  | 248 |  |  | 1,931 |  |  | 78,573 |
Total | 65,687 |  |  | 254 |  |  | 1,931 |  |  | 78,797 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company's share of Laramie Energy | 68,054 |  |  | 255 |  |  | 2,114 |  |  | 82,268 |
Total | 68,054 |  |  | 255 |  |  | 2,114 |  |  | 82,268 |
December 31, 2016 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 330 |  |  | 7 |  |  | 8 |  |  | 420 |
Company's share of Laramie Energy | 159,500 |  |  | 516 |  |  | 4,349 |  |  | 188,690 |
Total | 159,830 |  |  | 523 |  |  | 4,357 |  |  | 189,110 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company's share of Laramie Energy | 166,408 |  |  | 508 |  |  | 4,672 |  |  | 197,488 |
Total | 166,408 |  |  | 508 |  |  | 4,672 |  |  | 197,488 |
__________________________________________________
(1) | MMcfe is based on a ratio of 6 Mcf to 1 barrel.
| Price per MMbtu (2) |  | WTI per Bbl
Base pricing, before adjustments for contractual differentials (Company and Laramie Energy): (1) |  |  |
December 31, 2014 | $ | 4.36 |  |  | $ | 94.99 |
December 31, 2015 | 2.39 |  |  | 50.28 |
December 31, 2016 | 2.29 |  |  | 42.75 |
______________________________________________
(1) | Proved reserves are required to be calculated based on the 12-month, first day of the month historical average price in accordance with SEC rules. The prices shown above are base index prices to which adjustments are made for contractual deducts and other factors.
(2) | The CIG index was used for pricing during 2014 and 2015. In 2016, pricing is based on the Northwest spot price index.
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure | Future net cash flows presented below are computed using applicable prices (as summarized above) and costs and are net of all overriding royalty revenue interests.
| December 31,
| 2016 |  | 2015 |  | 2014
| (in thousands)
Company: |  |  |  |  |
Future net cash flows | $ | 1,154 |  |  | $ | 690 |  |  | $ | 10,452 |
Future costs |  |  |  |  |
Production | 713 |  |  | 345 |  |  | 7,760 |
Development and abandonment | 2 |  |  | 25 |  |  | 37 |
Income taxes (1) | — |  |  | — |  |  | — |
Future net cash flows | 439 |  |  | 320 |  |  | 2,655 |
10% discount factor | (154 | ) |  | (128 | ) |  | (889 | )
Discounted future net cash flows | $ | 285 |  |  | $ | 192 |  |  | $ | 1,766 |
Company’s share of Laramie Energy: |  |  |  |  |
Future net cash flows | $ | 955,090 |  |  | $ | 425,596 |  |  | $ | 1,268,704 |
Future costs |  |  |  |  |
Production | 488,977 |  |  | 249,831 |  |  | 539,796 |
Development and abandonment | 148,708 |  |  | 72,462 |  |  | 236,027 |
Income taxes (1) | — |  |  | — |  |  | — |
Future net cash flows | 317,405 |  |  | 103,303 |  |  | 492,881 |
10% discount factor | (174,512 | ) |  | (63,302 | ) |  | (322,282 | )
Discounted future net cash flows | $ | 142,893 |  |  | $ | 40,001 |  |  | $ | 170,599 |
Total discounted future net cash flows | $ | 143,178 |  |  | $ | 40,193 |  |  | $ | 172,365 |
_______________________________________________
(1) | No income tax provision is included in the standardized measure of discounted future net cash flows calculation shown above as we do not project to be taxable or pay cash income taxes based on its available tax assets and additional tax assets generated in the development of its reserves because the tax basis of its oil and gas properties and NOL carryforwards exceeds the amount of discounted future net earnings.
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | The principal sources of changes in the standardized measure of discounted net cash flows for the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands):
| Company |  | Company's Share of Laramie Energy |  | Total
Balance at January 1, 2014 | $ | 3,537 |  |  | $ | 89,325 |  |  | $ | 92,862 |
Sales of oil and gas production during the period, net of production costs | (1,288 | ) |  | (3,763 | ) |  | (5,051 | )
Net change in prices and production costs | (31 | ) |  | 35,837 |  |  | 35,806 |
Changes in estimated future development costs | 118 |  |  | (6,292 | ) |  | (6,174 | )
Extensions, discoveries and improved recovery | 85 |  |  | 4,914 |  |  | 4,999 |
Revisions of previous quantity estimates, estimated timing of development and other | (1,111 | ) |  | 27,632 |  |  | 26,521 |
Previously estimated development and abandonment costs incurred during the period | 102 |  |  | 14,013 |  |  | 14,115 |
Accretion of discount | 354 |  |  | 8,933 |  |  | 9,287 |
Balance at December 31, 2014 | 1,766 |  |  | 170,599 |  |  | 172,365 |
Sales of oil and gas production during the period, net of production costs | (479 | ) |  | (5,753 | ) |  | (6,232 | )
Acquisitions and divestitures | — |  |  | (4,789 | ) |  | (4,789 | )
Net change in prices and production costs | (679 | ) |  | (153,564 | ) |  | (154,243 | )
Changes in estimated future development costs | 8 |  |  | 788 |  |  | 796 |
Extensions, discoveries and improved recovery | — |  |  | 9,273 |  |  | 9,273 |
Revisions of previous quantity estimates, estimated timing of development and other | (601 | ) |  | (8,621 | ) |  | (9,222 | )
Previously estimated development and abandonment costs incurred during the period | — |  |  | 15,008 |  |  | 15,008 |
Accretion of discount | 177 |  |  | 17,060 |  |  | 17,237 |
Balance at December 31, 2015 | 192 |  |  | 40,001 |  |  | 40,193 |
Sales of oil and gas production during the period, net of production costs | (62 | ) |  | (7,979 | ) |  | (8,041 | )
Acquisitions and divestitures | — |  |  | 81,066 |  |  | 81,066 |
Net change in prices and production costs | (20 | ) |  | 2,994 |  |  | 2,974 |
Changes in estimated future development costs | 14 |  |  | (8,575 | ) |  | (8,561 | )
Extensions, discoveries and improved recovery | — |  |  | 231 |  |  | 231 |
Revisions of previous quantity estimates, estimated timing of development and other | 142 |  |  | 18,350 |  |  | 18,492 |
Previously estimated development and abandonment costs incurred during the period | — |  |  | 12,805 |  |  | 12,805 |
Other | — |  |  | — |  |  | — |
Accretion of discount | 19 |  |  | 4,000 |  |  | 4,019 |
Balance at December 31, 2016 | $ | 285 |  |  | $ | 142,893 |  |  | $ | 143,178 |

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- Definition Tabular disclosure of the aggregate change in the standardized measure of discounted future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchases under long-term agreements in which the enterprise participates in the operation of the properties on which oil and gas is located or otherwise serves as the producer. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62500-109447 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 36 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62536-109447 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62496-109447 + Details
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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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e61858-109447 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e61884-109447 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e61831-109447 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e61797-109447 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e61869-109447 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e61872-109447 + Details
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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62424-109447 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62476-109447 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 36 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62536-109447 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62500-109447 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62455-109447 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51678428&loc=d3e62479-109447 + Details
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