Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):



	March 31, 2015			December 31, 2014
Oil and natural gas properties
Proved(1)	$	12,020,208		$	11,707,147
Unproved	285,942			290,596
Total oil and natural gas properties	12,306,150			11,997,743
Less accumulated depreciation, depletion and impairment	(7,548,398		)	(6,359,149		)
Net oil and natural gas properties capitalized costs	4,757,752			5,638,594
Land	16,310			16,300
Non-oil and natural gas equipment(2)	602,359			602,392
Buildings and structures(3)	269,336			263,191
Total	888,005			881,883
Less accumulated depreciation and amortization	(308,756		)	(305,420		)
Other property, plant and equipment, net	579,249			576,463
Total property, plant and equipment, net	$	5,337,001		$	6,215,057

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(1)	Includes cumulative capitalized interest of approximately $42.6 million and $38.1 million at March 31, 2015 and December 31, 2014, respectively.


(2)	Includes cumulative capitalized interest of approximately $4.3 million at both March 31, 2015 and December 31, 2014.


(3)	Includes cumulative capitalized interest of approximately $18.1 million and $17.1 million at March 31, 2015 and December 31, 2014, respectively.

Accumulated depreciation, depletion and impairment on oil and natural gas properties includes cumulative full cost ceiling limitation impairment of $4.8 billion and $3.7 billion at March 31, 2015 and December 31, 2014, respectively. During the three-month periods ended March 31, 2015 and 2014, the Company reduced the net carrying value of its oil and natural gas properties by $1.1 billion and $164.8 million, respectively, as a result of its first quarter full cost ceiling analysis.

Drilling Carry Commitments

During the three-month period ended March 31, 2014, the Company was party to an agreement with a co-working interest party, Repsol E&P USA, Inc.’s (“Repsol”), which contained a carry commitment to fund a portion of the Company’s future drilling, completing and equipping costs within areas of mutual interest. The Company recorded approximately $72.3 million for Repsol’s carry during the three-month period ended March 31, 2014, which reduced the Company’s capital expenditures for the period. Repsol fully funded its carry commitment in the third quarter of 2014.

Under the original agreement, the carry commitment could have been reduced if a certain number of wells were not drilled within the area of mutual interest during a twelve-month period and the Company failed to drill such wells following a proposal by Repsol to drill the wells. During 2013, the Company temporarily reduced its rate of drilling activity. As a result, the Company drilled less than the targeted number of wells for such twelve-month period, which resulted in Repsol having a right to propose additional wells. In the second quarter of 2014, the Company and Repsol amended their agreement to eliminate Repsol’s right to propose such additional wells in exchange for a commitment by the Company to drill 484 net wells in the area of mutual interest between January 1, 2014 and May 31, 2015, subject to delays due to factors beyond the Company’s control. If the Company does not drill the committed number of wells within such time period, it will be required to carry Repsol’s drilling and completion costs for subsequent wells drilled in the area of mutual interest, up to a maximum of $75.0 million in carry costs. As of March 31, 2015, the Company has drilled 427 net wells under this arrangement and currently anticipates, due to changes in its drilling plan, that it will not satisfy the drilling commitment within the required time period. As a result, the Company currently anticipates that it will carry a portion of Repsol’s drilling and completion costs for wells drilled in the future in the area of mutual interest. Other than the above, the Company has no carry or drilling obligations to Repsol.