Quarterly report pursuant to Section 13 or 15(d)

Commitments (Tables)

v3.3.0.814
Commitments (Tables)
9 Months Ended
Sep. 30, 2015
Commitments  
Schedule of future minimum payments for firm transportation, drilling rig and hydraulic fracturing and gas processing gathering and compression, office and equipment agreements, and leases that have remaining lease terms in excess of one year

The following is a schedule of future minimum payments for firm transportation, drilling rig and hydraulic fracturing, and processing gathering and compression, office and equipment agreements, and leases that have remaining lease terms in excess of one year as of September 30, 2015 (in millions).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Firm
transportation

  

Processing,

gathering and

compression

  

Drilling rigs
and frac
services

  

Office and equipment

  

 

 

 

 

(a)

 

(b)

 

(c)

 

(d)

 

Total

 

Year ending September 30:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

$

499

 

 

331

 

 

181

 

 

10

 

 

1,021

 

2017

 

 

795

 

 

361

 

 

139

 

 

9

 

 

1,304

 

2018

 

 

844

 

 

250

 

 

6

 

 

8

 

 

1,108

 

2019

 

 

1,039

 

 

198

 

 

 —

 

 

5

 

 

1,242

 

2020

 

 

1,079

 

 

186

 

 

 —

 

 

3

 

 

1,268

 

Thereafter

 

 

11,044

 

 

907

 

 

 —

 

 

8

 

 

11,959

 

Total

 

$

15,300

 

 

2,233

 

 

326

 

 

43

 

 

17,902

 

 

(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 represent 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 and Compression Service Commitments

 

The Company has entered into various long‑term gas processing agreements for certain of its production that will allow it to realize the value of its NGLs.  The minimum payment obligations under the agreements are presented in the table.

 

The Company has various compressor service agreements with third parties that provide for payments based on volumes compressed and have minimum payment obligations which are presented in the table.

 

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)Drilling Rig Service Commitments

 

The Company has obligations under agreements with service providers to procure drilling rigs and hydraulic fracturing services.  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.

 

(d)Office and Equipment Leases

 

The Company leases various office space and equipment, as well as field equipment, under operating lease arrangements.