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Oil and Gas Reserve Information (Tables) | 12 Months Ended
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Dec. 31, 2019
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, 2019, 2018, and 2017 is as follows:
| Gas |  | Oil |  | NGLS |  | Total
| (MMcf) |  | (Mbbl) |  | (Mbbl) |  | (MMcfe) (1)
Company |  |  |  |  |  |  |
Balance at January 1, 2017 | 330 |  |  | 7 |  |  | 8 |  |  | 420 |
Revisions of quantity estimate | 109 |  |  | 2 |  |  | 3 |  |  | 139 |
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Production | (47 | ) |  | (2 | ) |  | — |  |  | (59 | )
Balance at December 31, 2017 | 392 |  |  | 7 |  |  | 11 |  |  | 500 |
Revisions of quantity estimate | (269 | ) |  | (2 | ) |  | (10 | ) |  | (341 | )
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Production | (34 | ) |  | (1 | ) |  | — |  |  | (40 | )
Balance at December 31, 2018 | 89 |  |  | 4 |  |  | 1 |  |  | 119 |
Revisions of quantity estimate | 222 |  |  | 1 |  |  | 7 |  |  | 270 |
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Acquisitions and divestitures | (30 | ) |  | (3 | ) |  | — |  |  | (48 | )
Production | (20 | ) |  | (1 | ) |  | — |  |  | (26 | )
Balance at December 31, 2019 | 261 |  |  | 1 |  |  | 8 |  |  | 315 |
Company’s share of Laramie Energy |  |  |  |  |  |  |
Balance at January 1, 2017 | 309,802 |  |  | 967 |  |  | 8,544 |  |  | 366,871 |
Revisions of quantity estimate | 1,344 |  |  | 211 |  |  | (434 | ) |  | 3 |
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Acquisitions and divestitures | — |  |  | — |  |  | — |  |  | — |
Production | (18,104 | ) |  | (71 | ) |  | (608 | ) |  | (22,178 | )
Balance at December 31, 2017 (2) | 293,042 |  |  | 1,107 |  |  | 7,502 |  |  | 344,696 |
Revisions of quantity estimate | 47,871 |  |  | 732 |  |  | 5,602 |  |  | 85,875 |
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Acquisitions and divestitures | 22,391 |  |  | 12 |  |  | 191 |  |  | 23,609 |
Production | (25,513 | ) |  | (106 | ) |  | (712 | ) |  | (30,421 | )
Balance at December 31, 2018 (3) | 337,791 |  |  | 1,745 |  |  | 12,583 |  |  | 423,759 |
Revisions of quantity estimate | (69,924 | ) |  | (681 | ) |  | (6,287 | ) |  | (111,732 | )
Extensions and discoveries | — |  |  | — |  |  | — |  |  | — |
Acquisitions and divestitures | — |  |  | — |  |  | — |  |  | — |
Production | (29,677 | ) |  | (126 | ) |  | (883 | ) |  | (35,731 | )
Balance at December 31, 2019 (4) | 238,190 |  |  | 938 |  |  | 5,413 |  |  | 276,296 |
Total at December 31, 2019 | 238,451 |  |  | 939 |  |  | 5,421 |  |  | 276,611 |
__________________________________________________
(1) | MMcfe is based on a ratio of 6 Mcf to 1 barrel.
(2) | During 2017, the Company’s estimated proved reserves, inclusive of the Company’s share of Laramie Energy’s estimated proved reserves, decreased by 22,095 MMcfe or approximately 6%. Production volumes related to our share of Laramie Energy’s estimated proved reserves resulted in a decrease of 22,178 MMcfe. The remaining change in estimated proved reserves was due to performance and other changes to the Company’s share of Laramie Energy’s proved developed producing and developed non-producing reserves.
(3) | During 2018, the Company’s estimated proved reserves, inclusive of the Company’s share of Laramie Energy’s estimated proved reserves, increased by 78,682 MMcfe or approximately 23%. The Company’s share of Laramie Energy’s revisions of quantity estimate increased primarily due to: 1) additions of 60,679 MMcfe of proved undeveloped reserves primarily located within Laramie Energy’s northern acreage, 2) 11,614 MMcfe of positive revisions associated with 13 probable locations that
were converted to proved developed reserves during 2018, and 3) 13,582 MMcfe of positive revisions due to performance improvements and other changes to the Company’s share of Laramie Energy’s proved developed and undeveloped reserves. Production volumes related to our share of Laramie Energy’s estimated proved reserves resulted in a decrease of 30,421 MMcfe. During 2018, Laramie Energy closed on a purchase and contribution agreement with an unaffiliated third party that contributed 23,609 MMcfe of proved developed reserves in the Piceance Basin.
(4) | During 2019, the Company’s estimated proved reserves, inclusive of the Company’s share of Laramie Energy’s estimated proved reserves, decreased by 147,267 MMcfe or approximately 35%. The decreased was primarily due to: 1) 57,212 MMcfe downward revision driven by the removal of proved undeveloped locations from the development plan due to unfavorable market conditions, and 2) 54,520 MMcfe downward revision due to decreases in average natural gas prices in 2019 compared to 2018. Production volumes related to our share of Laramie Energy’s estimated proved reserves resulted in a decrease of 35,731 MMcfe.
A summary of proved developed and undeveloped reserves for the years ended December 31, 2019, 2018, and 2017 is presented below:
| Gas |  | Oil |  | NGLS |  | Total
| (MMcf) |  | (Mbbl) |  | (Mbbl) |  | (MMcfe) (1)
December 31, 2017 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 392 |  |  | 7 |  |  | 11 |  |  | 500 |
Company’s share of Laramie Energy | 174,464 |  |  | 658 |  |  | 4,589 |  |  | 205,946 |
Total | 174,856 |  |  | 665 |  |  | 4,600 |  |  | 206,446 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company’s share of Laramie Energy | 118,578 |  |  | 449 |  |  | 2,913 |  |  | 138,750 |
Total | 118,578 |  |  | 449 |  |  | 2,913 |  |  | 138,750 |
December 31, 2018 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 89 |  |  | 4 |  |  | 1 |  |  | 119 |
Company’s share of Laramie Energy | 256,363 |  |  | 1,420 |  |  | 8,868 |  |  | 318,091 |
Total | 256,452 |  |  | 1,424 |  |  | 8,869 |  |  | 318,210 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company’s share of Laramie Energy | 81,428 |  |  | 325 |  |  | 3,715 |  |  | 105,668 |
Total | 81,428 |  |  | 325 |  |  | 3,715 |  |  | 105,668 |
December 31, 2019 |  |  |  |  |  |  |
Proved developed reserves |  |  |  |  |  |  |
Company | 261 |  |  | 1 |  |  | 8 |  |  | 315 |
Company’s share of Laramie Energy | 238,190 |  |  | 938 |  |  | 5,413 |  |  | 276,296 |
Total | 238,451 |  |  | 939 |  |  | 5,421 |  |  | 276,611 |
Proved undeveloped reserves |  |  |  |  |  |  |
Company | — |  |  | — |  |  | — |  |  | — |
Company’s share of Laramie Energy | — |  |  | — |  |  | — |  |  | — |
Total | — |  |  | — |  |  | — |  |  | — |
__________________________________________________
(1) | MMcfe is based on a ratio of 6 Mcf to 1 barrel.
| Price per MMbtu |  | WTI per Bbl
Base pricing, before adjustments for contractual differentials (Company and Laramie Energy): (1) |  |  |
December 31, 2017 | $ | 2.68 |  |  | $ | 51.34 |
December 31, 2018 | 2.47 |  |  | 65.56 |
December 31, 2019 | 2.04 |  |  | 55.85 |
______________________________________________ (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.
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,
| 2019 |  | 2018 |  | 2017
| (in thousands)
Company |  |  |  |  |
Future net cash flows | $ | 833 |  |  | $ | 398 |  |  | $ | 1,802 |
Future costs |  |  |  |  |
Production | 509 |  |  | 123 |  |  | 902 |
Development and abandonment | 37 |  |  | 35 |  |  | — |
Income taxes (1) | — |  |  | — |  |  | — |
Future net cash flows | 287 |  |  | 240 |  |  | 900 |
10% discount factor | (106 | ) |  | (110 | ) |  | (328 | )
Discounted future net cash flows | $ | 181 |  |  | $ | 130 |  |  | $ | 572 |
Company’s share of Laramie Energy |  |  |  |  |
Future net cash flows | $ | 669,271 |  |  | $ | 1,283,890 |  |  | $ | 1,026,005 |
Future costs |  |  |  |  |
Production | 398,193 |  |  | 583,112 |  |  | 491,748 |
Development and abandonment | 25,277 |  |  | 93,546 |  |  | 109,248 |
Income taxes (1) | — |  |  | — |  |  | — |
Future net cash flows | 245,801 |  |  | 607,232 |  |  | 425,009 |
10% discount factor | (105,966 | ) |  | (288,130 | ) |  | (209,188 | )
Discounted future net cash flows | $ | 139,835 |  |  | $ | 319,102 |  |  | $ | 215,821 |
Total discounted future net cash flows | $ | 140,016 |  |  | $ | 319,232 |  |  | $ | 216,393 |
_______________________________________________
(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, 2019, 2018, and 2017 are as follows (in thousands):
| Company |  | Company’s Share of Laramie Energy |  | Total
Balance at January 1, 2017 | $ | 285 |  |  | $ | 141,142 |  |  | $ | 141,427 |
Sales of oil and gas production during the period, net of production costs | (28 | ) |  | (29,911 | ) |  | (29,939 | )
Net change in prices and production costs | (60 | ) |  | 35,597 |  |  | 35,537 |
Revisions of previous quantity estimates, estimated timing of development and other | 346 |  |  | 37,692 |  |  | 38,038 |
Previously estimated development and abandonment costs incurred during the period | — |  |  | 17,187 |  |  | 17,187 |
Accretion of discount | 29 |  |  | 14,114 |  |  | 14,143 |
Balance at December 31, 2017 | 572 |  |  | 215,821 |  |  | 216,393 |
Sales of oil and gas production during the period, net of production costs | (127 | ) |  | (47,165 | ) |  | (47,292 | )
Acquisitions and divestitures | — |  |  | 35,182 |  |  | 35,182 |
Net change in prices and production costs | 20 |  |  | (1,365 | ) |  | (1,345 | )
Revisions of previous quantity estimates, estimated timing of development and other | (392 | ) |  | 54,311 |  |  | 53,919 |
Previously estimated development and abandonment costs incurred during the period | — |  |  | 40,736 |  |  | 40,736 |
Accretion of discount | 57 |  |  | 21,582 |  |  | 21,639 |
Balance at December 31, 2018 | 130 |  |  | 319,102 |  |  | 319,232 |
Sales of oil and gas production during the period, net of production costs | (55 | ) |  | (59,093 | ) |  | (59,148 | )
Acquisitions and divestitures | (143 | ) |  | — |  |  | (143 | )
Net change in prices and production costs | (24 | ) |  | (114,195 | ) |  | (114,219 | )
Revisions of previous quantity estimates, estimated timing of development and other | 260 |  |  | (64,333 | ) |  | (64,073 | )
Previously estimated development and abandonment costs incurred during the period | — |  |  | 26,444 |  |  | 26,444 |
Accretion of discount | 13 |  |  | 31,910 |  |  | 31,923 |
Balance at December 31, 2019 | $ | 181 |  |  | $ | 139,835 |  |  | 140,016 |

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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/2009/role/commonPracticeRef -Publisher SEC -Name Form 20-F -Section Item 18 -Subsection Instruction 2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=68064819&loc=d3e61884-109447 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=68064819&loc=d3e61858-109447 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=68064819&loc=d3e61872-109447 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=68064819&loc=d3e61831-109447 Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=68064819&loc=d3e61797-109447 Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 235 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=68064819&loc=d3e61869-109447 + Details
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