Quarterly report pursuant to Section 13 or 15(d)

Commitments (Tables)

v3.5.0.2
Commitments (Tables)
6 Months Ended
Jun. 30, 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 June 30:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

508

 

 

343

 

 

106

 

 

13

 

 

970

 

2018

 

 

840

 

 

320

 

 

98

 

 

12

 

 

1,270

 

2019

 

 

1,014

 

 

211

 

 

86

 

 

10

 

 

1,321

 

2020

 

 

1,073

 

 

186

 

 

17

 

 

8

 

 

1,284

 

2021

 

 

1,076

 

 

185

 

 

 —

 

 

7

 

 

1,268

 

Thereafter

 

 

10,469

 

 

783

 

 

 —

 

 

28

 

 

11,280

 

Total

 

$

14,980

 

 

2,028

 

 

307

 

 

78

 

 

17,393

 

 

(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 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 completion 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.