Annual report pursuant to Section 13 and 15(d)

Commitments

v3.19.3.a.u2
Commitments
12 Months Ended
Dec. 31, 2019
Commitments  
Commitments

(14) Commitments

The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have remaining lease terms in excess of one year as of December 31, 2019 (in thousands).

Processing,

Firm

gathering and

Land payment

Operating and

Imputed Interest

transportation

compression

obligations

Financing Leases

for Leases

(a)

(b)

(c)

(d)

(d)

Total

2020

$

1,105,062

55,338

5,240

304,441

317,859

1,787,940

2021

1,076,832

54,154

2,859

265,838

289,169

1,688,852

2022

1,034,009

53,606

328

285,209

258,948

1,632,100

2023

1,056,902

58,565

313,510

225,303

1,654,280

2024

1,016,856

58,687

342,348

187,655

1,605,546

Thereafter

7,907,583

152,523

1,377,652

474,086

9,911,844

Total

$

13,197,244

432,873

8,427

2,888,998

1,753,020

18,280,562

(a)Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market. These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates, or pay for any deficiencies at specified reservation fee rates. The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(b)Processing, Gathering, and Compression Service Commitments

The Company has entered into various long term gas processing, gathering and compression service agreements. Certain of these agreements were determined to be leases. The minimum payment obligations under the agreements that are not leases are presented in this column.

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(c)Land Payment Obligations

The Company has entered into various land acquisition agreements. Certain of these agreements contain minimum payment obligations over various terms. The values in the table represent the minimum payments due under these arrangements. None of these agreements were determined to be leases.

(d)Leases, including imputed interest

The Company has obligations under contracts for services provided by drilling rigs and completion fleets, processing, gathering, and compression services agreements, and office and equipment leases. The values in the table represent the gross amounts that we are committed to pay; however, we will record in our financial statements our proportionate share of costs based on our working interests. Refer to Note 12 to the consolidated financial statements for more information on the Company’s operating and finance leases.