Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.20.1
Property and Equipment
3 Months Ended
Mar. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment
The following table summarizes our property and equipment as of the dates presented: 
 
March 31,
 
December 31,
 
2020
 
2019
Oil and gas properties:
 

 
 

Proved
$
1,487,868

 
$
1,409,219

Unproved
53,878

 
53,200

Total oil and gas properties
1,541,746

 
1,462,419

Other property and equipment
27,355

 
25,915

Total properties and equipment
1,569,101

 
1,488,334

Accumulated depreciation, depletion and amortization
(408,542
)
 
(367,909
)
 
$
1,160,559

 
$
1,120,425


Unproved property costs of $53.9 million and $53.2 million have been excluded from amortization as of March 31, 2020 and December 31, 2019, respectively. We transferred $1.4 million and less than $0.1 million of undeveloped leasehold costs associated with acreage unlikely to be drilled or associated with proved undeveloped reserves, including capitalized interest, from unproved properties to the full cost pool during the three months ended March 31, 2020 and 2019, respectively. We capitalized internal costs of $0.8 million and $1.0 million and interest of $0.7 million and $1.2 million during the three months ended March 31, 2020 and 2019, respectively, in accordance with our accounting policies. Average depreciation, depletion and amortization per barrel of oil equivalent of proved oil and gas properties was $16.73 and $17.49 for the three months ended March 31, 2020 and 2019, respectively.
At the end of each quarterly reporting period, the unamortized cost of our oil and gas properties, net of deferred income taxes, is limited to the sum of the estimated discounted future net revenues from proved properties adjusted for costs excluded from amortization and related income taxes (the “Ceiling Test”). As of March 31, 2020, the carrying value of our proved oil and gas properties was below the limit determined by the Ceiling Test by approximately $350 million. Because the Ceiling Test utilizes commodity prices based on a trailing twelve month average, it does not, as of March 31, 2020, fully reflect the substantial decline in commodity prices due to the economic impact of the COVID-19 health crisis and the ongoing disruption in global energy markets. If current commodity prices continue at depressed levels or decline further, it is likely that we will experience a Ceiling Test write-down in the carrying value of our oil and gas properties at some point during the year ended December 31, 2020.