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Supplemental Information on Oil and Natural Gas Producing Activities (Tables)
 12 Months Ended
Dec. 31, 2013
Reserve Quantities [Line Items]  
Capitalized Costs Relating to Oil, Natural Gas and NGL 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,
 
2013
 
2012
 
2011
Oil and natural gas properties
 
 
 
 
 
Proved
$
10,972,816

 
$
12,262,921

 
$
8,969,296

Unproved
531,606

 
865,863

 
689,393

Total oil and natural gas properties
11,504,422

 
13,128,784

 
9,658,689

Less accumulated depreciation, depletion and impairment
(5,762,969
)
 
(5,231,182
)
 
(4,791,534
)
Net oil and natural gas properties capitalized costs
$
5,741,453

 
$
7,897,602

 
$
4,867,155
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,
 
2013
 
2012
 
2011
Acquisitions of properties
 
 
 
 
 
Proved
$
21,130

 
$
1,761,556

 
$
58,190

Unproved
100,242

 
377,185

 
320,361

Exploration(1)
82,775

 
120,438

 
98,849

Development(2)
1,131,269

 
1,704,991

 
1,296,903

Total cost incurred
$
1,335,416

 
$
3,964,170

 
$
1,774,303

____________________
(1)
Includes seismic costs of $6.7 million, $15.3 million and $4.9 million for 2013, 2012 and 2011, respectively.
(2)
Includes loss on the construction of the Century Plant of $50.0 million and $25.0 million for 2012 and 2011, respectively. See Note 11.
Results of Operations for Oil, Natural Gas and NGL 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 2013, 2012 and 2011 are shown in the following table (in thousands):
 
Year Ended December 31,
 
2013
 
2012
 
2011
Revenues
$
1,820,278

 
$
1,759,282

 
$
1,226,794

Expenses
 
 
 
 
 
Production costs
548,719

 
524,364

 
368,946

Depreciation and depletion
567,732

 
568,029

 
317,246

Accretion of asset retirement obligations
36,777

 
28,996

 
9,368

Total expenses
1,153,228

 
1,121,389

 
695,560

Income before income taxes
667,050

 
637,893

 
531,234

Benefit of income taxes(1)
(7,471
)
 
(437,595
)
 
(20,134
)
Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs)
$
674,521

 
$
1,075,488

 
$
551,368

____________________
(1)
Reflects the Company’s effective tax rate, including the partial valuation allowance releases.
Summary of Changes in Estimated Oil, Natural Gas and NGL Reserves (Unaudited)
The summary below presents changes in the Company’s estimated reserves for 2011, 2012 and 2013.
 
Oil
 
NGL
 
Natural Gas
 
(MBbls)
 
(MBbls)
 
(MMcf)(1)
Proved developed and undeveloped reserves
 
 
 
 
 
As of December 31, 2010
205,023

 
47,091

 
1,762,665

Revisions of previous estimates
(6,159
)
 
(3,119
)
 
(164,845
)
Acquisitions of new reserves
1,309

 
224

 
2,906

Extensions and discoveries
52,406

 
3,171

 
299,848

Sales of reserves in place
(28,137
)
 
(15,194
)
 
(476,212
)
Production
(9,992
)
 
(1,838
)
 
(69,306
)
As of December 31, 2011(2)
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(2)
262,045

 
67,994

 
1,415,042

Revisions of previous estimates
(13,969
)
 
3,717

 
(53,432
)
Acquisitions of new reserves
43

 
13

 
363

Extensions and discoveries
40,570

 
18,686

 
359,918

Sales of reserves in place
(131,769
)
 
(29,067
)
 
(228,229
)
Production
(14,279
)
 
(2,291
)
 
(103,233
)
As of December 31, 2013(2)
142,641

 
59,052

 
1,390,429

Proved developed reserves
 
 
 
 
 
As of December 31, 2010
73,111

 
18,854

 
784,292

As of December 31, 2011
101,578

 
17,150

 
670,382

As of December 31, 2012
136,605

 
33,785

 
896,701

As of December 31, 2013
83,893

 
35,807

 
951,609

Proved undeveloped reserves
 
 
 
 
 
As of December 31, 2010
131,912

 
28,237

 
978,373

As of December 31, 2011
112,872

 
13,185

 
684,674

As of December 31, 2012
125,440

 
34,209

 
518,341

As of December 31, 2013
58,748

 
23,245

 
438,820

____________________
(1)
Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit.
(2)
Includes proved reserves attributable to noncontrolling interests at December 31, 2013, 2012 and 2011 as shown in the table below:
 
December 31,
 
2013
 
2012
 
2011
Oil (MBbl)
13,569

 
17,340

 
17,018

NGL (MBbl)
4,737

 
5,132

 
1,782

Natural gas (MMcf)
69,693

 
94,543

 
45,500
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,
 
2013
 
2012
 
2011
Oil (per barrel)
$
95.67

 
$
91.65

 
$
91.35

NGL (per barrel)
$
31.40

 
$
32.64

 
$
46.33

Natural gas (per Mcf)
$
3.65

 
$
2.29

 
$
4.06
Standardized Measure of Discounted Future Cash Flows (Unaudited)
The summary below presents the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure in ASC Topic 932 (in thousands).
 
At December 31,
 
2013
 
2012
 
2011
Future cash inflows from production
$
19,937,484

 
$
29,482,544

 
$
26,494,942

Future production costs
(6,843,713
)
 
(8,899,465
)
 
(7,392,104
)
Future development costs(1)
(2,546,680
)
 
(4,021,051
)
 
(2,977,993
)
Future income tax expenses
(2,283,541
)
 
(3,721,509
)
 
(4,043,953
)
Undiscounted future net cash flows
8,263,550

 
12,840,519

 
12,080,892

10% annual discount
(4,245,939
)
 
(7,000,151
)
 
(6,864,555
)
Standardized measure of discounted future net cash flows(2)
$
4,017,611

 
$
5,840,368

 
$
5,216,337

____________________
(1)
Includes abandonment costs.
(2)
Includes approximately $781.6 million, $952.7 million and $932.8 million attributable to noncontrolling interests at December 31, 2013, 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, 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

Changes during the year
 
Revenues less production and other costs
(1,271,559
)
Net changes in prices, production and other costs
271,566

Development costs incurred
474,275

Net changes in future development costs
(207,729
)
Extensions and discoveries
1,406,102

Revisions of previous quantity estimates
(296,418
)
Accretion of discount
711,385

Net change in income taxes
477,328

Purchases of reserves in-place
1,628

Sales of reserves in-place
(3,172,187
)
Timing differences and other(1)
(217,148
)
Net change for the year
(1,822,757
)
Present value as of December 31, 2013(2)
$
4,017,611

____________________
(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 $781.6 million, $952.7 million and $932.8 million attributable to noncontrolling interests at December 31, 2013, 2012, and 2011 respectively.
Noncontrolling Interest
  
Reserve Quantities [Line Items]  
Summary of Changes in Estimated Oil, Natural Gas and NGL Reserves (Unaudited)
Includes proved reserves attributable to noncontrolling interests at December 31, 2013, 2012 and 2011 as shown in the table below:
 
December 31,
 
2013
 
2012
 
2011
Oil (MBbl)
13,569

 
17,340

 
17,018

NGL (MBbl)
4,737

 
5,132

 
1,782

Natural gas (MMcf)
69,693

 
94,543

 
45,500