Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.20.2
Property and Equipment
9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure Property and Equipment
The following table summarizes our property and equipment as of the dates presented: 
  September 30, December 31,
  2020 2019
Oil and gas properties:    
Proved $ 1,509,097  $ 1,409,219 
Unproved 52,910  53,200 
Total oil and gas properties 1,562,007  1,462,419 
Other property and equipment 27,495  25,915 
Total properties and equipment 1,589,502  1,488,334 
Accumulated depreciation, depletion and amortization (754,002) (367,909)
  $ 835,500  $ 1,120,425 
Unproved property costs of $52.9 million and $53.2 million have been excluded from amortization as of September 30, 2020 and December 31, 2019, respectively. We transferred $4.5 million and $0.2 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 nine months ended September 30, 2020 and 2019, respectively. We capitalized internal costs of $1.3 million and $3.2 million and interest of $2.1 million and $3.2 million during the nine months ended September 30, 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 $16.63 and $17.47 for the nine months ended September 30, 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 September 30, 2020, the carrying value of our proved oil and gas properties exceeded the limit determined by the Ceiling Test by $236.0 million. Accordingly, we recorded an impairment of our oil and gas properties by this amount in the three months ended September 30, 2020 and, when combined with the $35.5 million recorded in the second quarter, $271.5 million in the nine months ended September 30, 2020. Because the Ceiling Test utilizes commodity prices based on a trailing twelve month average, it does not, as of September 30, 2020, fully reflect the substantial decline in commodity prices due to the economic impact of the COVID-19 pandemic and the ongoing disruption in global energy markets. Accordingly, we may incur additional impairments during the fourth quarter of 2020 and into the first quarter of 2021.