Property, Plant and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

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



	March 31, 2016			December 31, 2015
Oil and natural gas properties
Proved(1)	$	11,961,413		$	12,529,681
Unproved	350,646			363,149
Total oil and natural gas properties	12,312,059			12,892,830
Less accumulated depreciation, depletion and impairment	(11,035,575		)	(11,149,888		)
Net oil and natural gas properties capitalized costs	1,276,484			1,742,942
Land	5,450			14,260
Non-oil and natural gas equipment(2)	310,122			373,687
Buildings and structures(3)	229,352			227,673
Total	544,924			615,620
Less accumulated depreciation and amortization	(118,387		)	(123,860		)
Other property, plant and equipment, net	426,537			491,760
Total property, plant and equipment, net	$	1,703,021		$	2,234,702

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(1)	Includes cumulative capitalized interest of approximately $50.3 million and $48.9 million at March 31, 2016 and December 31, 2015, respectively.


(2)	Includes cumulative capitalized interest of approximately $4.3 million at both March 31, 2016 and December 31, 2015.


(3)	Includes cumulative capitalized interest of approximately $20.4 million at both March 31, 2016 and December 31, 2015.

The Company reduced the net carrying value of its oil and natural gas properties by $108.4 million during the three-month period ended March 31, 2016, as a result of its quarterly full cost ceiling analysis. See Note 1 for discussion of the proportionate consolidation of the Royalty Trusts for the three-month period ended March 31, 2016.

The Company disposed of certain drilling and oilfield services assets previously classified as held for sale during the first quarter of 2016 and recorded a loss on the sale of those assets of $1.4 million for the three-month period ended March 31, 2016. At March 31, 2016, the Company has remaining drilling and oilfield services assets with a net book value of $15.2 million classified as held for sale in the other current assets line of the accompanying unaudited condensed consolidated balance sheet, and expects to dispose of these assets prior to the fourth quarter of 2016.

Drilling Carry Commitments

Under the terms of an agreement with Repsol E&P USA, Inc. (“Repsol”), the Company has agreed to carry Repsol’s drilling and completion costs totaling up to approximately $31.0 million for wells drilled in an area of mutual interest. The Company incurred $5.2 million toward this obligation during the three-month period ended March 31, 2016 and had $9.9 million, under the obligation, remaining at March 31, 2016. Other than the above, the Company has no carry or drilling obligations to Repsol.