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Supplemental Information on Oil and Natural Gas Producing Activities (Tables)
 12 Months Ended
Dec. 31, 2012
Extractive Industries [Abstract]  
Capitalized Costs Relating to Oil and Natural Gas Producing Activities
Capitalized Costs Related to Oil and Natural Gas Producing Activities

The Company’s capitalized costs for oil and natural gas activities consisted of the following (in thousands):
 
December 31,
 
2012
 
2011
 
2010
Oil and natural gas properties
 
 
 
 
 
Proved
$
12,262,921

 
$
8,969,296

 
$
8,159,924

Unproved
865,863

 
689,393

 
547,953

Total oil and natural gas properties
13,128,784

 
9,658,689

 
8,707,877

Less accumulated depreciation, depletion and impairment
(5,231,182
)
 
(4,791,534
)
 
(4,483,736
)
Net oil and natural gas properties capitalized costs
$
7,897,602

 
$
4,867,155

 
$
4,224,141
Cost Incurred in Oil and Natural Gas Property Acquisition, Exploration, and Development
Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development

Costs incurred in oil and natural gas property acquisition, exploration and development activities which have been capitalized are summarized as follows (in thousands):
 
Year Ended December 31,
 
2012
 
2011
 
2010
Acquisitions of properties
 
 
 
 
 
Proved
$
1,761,556

 
$
58,190

 
$
1,346,303

Unproved
377,185

 
320,361

 
352,648

Exploration(1)
120,438

 
98,849

 
31,717

Development(2)
1,704,991

 
1,296,903

 
1,006,232

Total cost incurred
$
3,964,170

 
$
1,774,303

 
$
2,736,900

____________________
(1)
Includes seismic costs of $15.3 million, $4.9 million and $4.1 million for 2012, 2011 and 2010, respectively.
(2)
Includes loss on the construction of the Century Plant of $50.0 million, $25.0 million and $105.0 million for 2012, 2011 and 2010, respectively. See Note 12.
Results of Operations for Oil and Natural Gas Producing Activities (Unaudited)
Results of Operations for Oil and Natural Gas Producing Activities (Unaudited)

The Company’s results of operations from oil and natural gas producing activities for each of the years 2012, 2011 and 2010 are shown in the following table (in thousands):
 
Year Ended December 31,
 
2012
 
2011
 
2010
Revenues
$
1,759,282

 
$
1,226,794

 
$
774,763

Expenses
 
 
 
 
 
Production costs
524,364

 
368,946

 
267,033

Depreciation and depletion
568,029

 
317,246

 
265,914

Accretion of asset retirement obligations
28,996

 
9,368

 
9,421

Total expenses
1,121,389

 
695,560

 
542,368

Income before income taxes
637,893

 
531,234

 
232,395

Benefit of income taxes(1)
(437,595
)
 
(20,134
)
 
(405,413
)
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs)
$
1,075,488

 
$
551,368

 
$
637,808

____________________
(1)
Reflects the Company’s effective tax rate, including the partial valuation allowance release.
Summary of Changes in Estimated Oil and Natural Gas Reserves (Unaudited)
The summary below presents changes in the Company’s estimated reserves for 2010, 2011 and 2012.
 
Oil
 
Natural Gas
 
(MBbls)
 
(MMcf)(1)
Proved developed and undeveloped reserves
 
 
 
As of December 31, 2009
105,349

 
680,075

Revisions of previous estimates
12,999

 
867,931

Acquisitions of new reserves
71,640

 
79,942

Extensions and discoveries
69,512

 
211,150

Sales of reserves in place
—

 
(207
)
Production
(7,386
)
 
(76,226
)
As of December 31, 2010
252,114

 
1,762,665

Revisions of previous estimates
(9,278
)
 
(164,845
)
Acquisitions of new reserves
1,533

 
2,906

Extensions and discoveries
55,577

 
299,848

Sales of reserves in place
(43,331
)
 
(476,212
)
Production
(11,830
)
 
(69,306
)
As of December 31, 2011(3)
244,785

 
1,355,056

Proved developed reserves
 
 
 
As of December 31, 2009
38,327

 
592,777

As of December 31, 2010
91,965

 
784,292

As of December 31, 2011
118,728

 
670,382

Proved undeveloped reserves
 
 
 
As of December 31, 2009
67,022

 
87,298

As of December 31, 2010
160,149

 
978,373

As of December 31, 2011
126,057

 
684,674


 
Oil
 
NGLs
 
Natural Gas
 
(MBbls)
 
(MBbls)(2)
 
(MMcf)(1)
Proved developed and undeveloped reserves
 
 
 
 
 
As of December 31, 2011(3)
214,450

 
30,335

 
1,355,056

Revisions of previous estimates
(37,394
)
 
15,098

 
(538,214
)
Acquisitions of new reserves
31,470

 
683

 
202,995

Extensions and discoveries
89,656

 
27,259

 
489,302

Sales of reserves in place
(20,269
)
 
(3,287
)
 
(548
)
Production
(15,868
)
 
(2,094
)
 
(93,549
)
As of December 31, 2012(3)
262,045

 
67,994

 
1,415,042

Proved developed reserves of December 31, 2012
136,605

 
33,785

 
896,701

Proved undeveloped reserves of December 31, 2012
125,440

 
34,209

 
518,341

____________________
(1)
Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit.
(2)
Prior to 2012, NGLs did not comprise a significant portion of total proved reserves and were included with oil reserves, which affects the comparability of estimated reserves for 2012, 2011 and 2010.
(3)
Proved reserves at December 31, 2012 and 2011, respectively, include approximately 17,340 MBbls and 17,018 MBbls of oil, 5,132 MBbls and 1,782 MBbls of NGLs and 94,543 MMcf and 45,500 MMcf of natural gas attributable to noncontrolling interests.
Calculation of Weighted Average Per Unit Prices (Unaudited)
The calculated weighted average per unit prices for the Company’s proved reserves and future net revenues were as follows:
 
At December 31,
 
2012
 
2011
 
2010
Oil (per barrel)
$
91.65

 
$
85.77

 
$
66.93

Natural gas (per Mcf)
$
2.29

 
$
4.06

 
$
3.80
Standardized Measure of Discounted Future Cash Flows (Unaudited)
The summary below presents the Company’s future net cash flows relating to proved oil and natural gas reserves based on the standardized measure in ASC Topic 932 (in thousands).
 
At December 31,
 
2012
 
2011
 
2010
Future cash inflows from production
$
29,482,544

 
$
26,494,942

 
$
23,564,771

Future production costs
(8,899,465
)
 
(7,392,104
)
 
(8,218,860
)
Future development costs(1)
(4,021,051
)
 
(2,977,993
)
 
(3,779,761
)
Future income tax expenses
(3,721,509
)
 
(4,043,953
)
 
(2,392,464
)
Undiscounted future net cash flows
12,840,519

 
12,080,892

 
9,173,686

10% annual discount
(7,000,151
)
 
(6,864,555
)
 
(5,490,171
)
Standardized measure of discounted future net cash flows(2)
$
5,840,368

 
$
5,216,337

 
$
3,683,515

____________________
(1)
Includes abandonment costs.
(2)
Includes approximately $952.7 million and $932.8 million attributable to noncontrolling interests at December 31, 2012 and 2011, respectively.
Estimate of Changes in Standardized Measure of Discounted Future Net Cash Flows from Proved Reserves (Unaudited)
The following table represents the Company’s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands):
Present value as of December 31, 2009
$
1,560,978

Changes during the year
 
Revenues less production and other costs
(507,730
)
Net changes in prices, production and other costs
967,967

Development costs incurred
366,539

Net changes in future development costs
(910,934
)
Extensions and discoveries
955,540

Revisions of previous quantity estimates
773,132

Accretion of discount
159,971

Net change in income taxes
(825,668
)
Purchases of reserves in-place
1,133,413

Sales of reserves in-place
(258
)
Timing differences and other(1)
10,565

Net change for the year
2,122,537

Present value as of December 31, 2010
3,683,515

Changes during the year
 
Revenues less production and other costs
(857,848
)
Net changes in prices, production and other costs
1,264,736

Development costs incurred
575,546

Net changes in future development costs
87,080

Extensions and discoveries
1,812,167

Revisions of previous quantity estimates
(345,965
)
Accretion of discount
455,501

Net change in income taxes
(833,841
)
Purchases of reserves in-place
44,934

Sales of reserves in-place
(558,257
)
Timing differences and other(1)
(111,231
)
Net change for the year
1,532,822

Present value as of December 31, 2011(2)
5,216,337

Changes during the year
 
Revenues less production and other costs
(1,234,918
)
Net changes in prices, production and other costs
(2,555,391
)
Development costs incurred
766,943

Net changes in future development costs
(45,397
)
Extensions and discoveries
2,092,423

Revisions of previous quantity estimates
(530,755
)
Accretion of discount
678,200

Net change in income taxes
11,433

Purchases of reserves in-place
1,708,301

Sales of reserves in-place
(410,415
)
Timing differences and other(1)
143,607

Net change for the year
624,031

Present value as of December 31, 2012(2)
$
5,840,368

____________________
(1)
The change in timing differences and other are related to revisions in the Company’s estimated time of production and development.
(2)
Includes approximately $952.7 million and $932.8 million attributable to noncontrolling interests at December 31, 2012 and 2011, respectively.