Quarterly report pursuant to Section 13 or 15(d)

Commitments (Tables)

v3.4.0.3
Commitments (Tables)
3 Months Ended
Mar. 31, 2016
Commitments  
Schedule of future minimum payments for firm transportation, drilling rig and completion services, gas processing, gathering and compression, office and equipment agreements, and leases that have remaining lease terms in excess of one year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Firm
transportation

  

Processing,
gathering and
compression

  

Drilling rigs
and completion
services

  

Office and equipment

  

 

 

 

 

(a)

 

(b)

 

(c)

 

(d)

 

Total

 

Year ending March 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

482

 

 

332

 

 

158

 

 

13

 

 

985

 

2018

 

 

784

 

 

326

 

 

72

 

 

12

 

 

1,194

 

2019

 

 

942

 

 

223

 

 

2

 

 

11

 

 

1,178

 

2020

 

 

1,067

 

 

186

 

 

 —

 

 

9

 

 

1,262

 

2021

 

 

1,079

 

 

186

 

 

 —

 

 

7

 

 

1,272

 

Thereafter

 

 

10,761

 

 

829

 

 

 —

 

 

30

 

 

11,620

 

Total

 

$

15,115

 

 

2,082

 

 

232

 

 

82

 

 

17,511

 

 

(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, Gathering, 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 gathering and compression service agreements with third parties that provide for payments based on volumes gathered or compressed.  The minimum payment obligations under these agreements 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.  The table does not include intracompany commitments.

 

(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 capital and operating lease arrangements.