Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Apr. 14, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Atlas Growth Partners, L.P. | ||
Entity Central Index Key | 0001572702 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
No Trading Symbol Flag | true | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Title of 12(g) Security | Common units representing limited partner interests; warrants to purchase common units at an exercise price of $10.00 per common unit | ||
Entity File Number | 000-55603 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 80-0906030 | ||
Entity Address, Address Line One | 425 Houston Street | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Fort Worth | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76102 | ||
City Area Code | 412 | ||
Local Phone Number | 489-0006 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Units Outstanding | 23,300,410 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,239 | $ 3,543 |
Advances to affiliates | 486 | |
Accounts receivable | 548 | 624 |
Total current assets | 3,273 | 4,167 |
Property, plant and equipment, net | 9,682 | 24,686 |
Other assets, net | 67 | |
Total assets | 12,955 | 28,920 |
Current liabilities: | ||
Accounts payable | 536 | 791 |
Advances from affiliates | 150 | |
Accrued liabilities | 839 | 849 |
Total current liabilities | 1,375 | 1,790 |
Asset retirement obligations | 216 | 226 |
Commitments and contingencies (Note 8) | ||
Partners’ Capital: | ||
General partner’s interest | (3,821) | (3,511) |
Common limited partners’ interests | 12,049 | 27,279 |
Common limited partners’ warrants | 3,136 | 3,136 |
Total partners’ capital | 11,364 | 26,904 |
Total liabilities and partners’ capital | $ 12,955 | $ 28,920 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Gain (loss) on mark-to-market derivatives | $ (381) | $ 310 | |
Total revenues | $ 6,061 | 10,060 | 8,151 |
Costs and expenses: | |||
Gas and oil production | 2,512 | 3,486 | 2,528 |
General and administrative | 1,261 | 655 | 813 |
General and administrative – affiliate | 3,206 | 3,291 | 4,131 |
Depreciation, depletion and amortization | 3,607 | 5,874 | 3,576 |
Asset impairment | 10,982 | 41,762 | |
Total costs and expenses | 21,568 | 55,068 | 11,048 |
Operating loss | (15,507) | (45,008) | (2,897) |
Loss on asset sales | (33) | ||
Net loss | (15,540) | (45,008) | (2,897) |
Allocation of net loss attributable to common limited partners and the general partner: | |||
Common limited partners’ interest | (15,230) | (44,108) | (2,839) |
General partner’s interest | $ (310) | $ (900) | $ (58) |
Net loss attributable to common limited partners per unit: | |||
Basic and Diluted | $ (0.65) | $ (1.89) | $ (0.12) |
Weighted average common limited partner units outstanding: | |||
Basic and Diluted | 23,300 | 23,300 | 23,300 |
Natural Gas | |||
Revenues: | |||
Revenues | $ 82 | $ 225 | $ 322 |
Oil | |||
Revenues: | |||
Revenues | 5,791 | 9,708 | 7,117 |
NGLs | |||
Revenues: | |||
Revenues | $ 188 | $ 508 | $ 402 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | General Partner's InterestGeneral Class A | Common Limited Partners' Interests | Common Limited Partners' Warrants |
Balance at Dec. 31, 2016 | $ 74,809 | $ (2,553) | $ 74,226 | $ 3,136 |
Balance (units) at Dec. 31, 2016 | 100 | 23,300,410 | 2,330,041 | |
Net loss | (2,897) | $ (58) | $ (2,839) | |
Balance at Dec. 31, 2017 | 71,912 | $ (2,611) | $ 71,387 | $ 3,136 |
Balance (units) at Dec. 31, 2017 | 100 | 23,300,410 | 2,330,041 | |
Net loss | (45,008) | $ (900) | $ (44,108) | |
Balance at Dec. 31, 2018 | 26,904 | $ (3,511) | $ 27,279 | $ 3,136 |
Balance (units) at Dec. 31, 2018 | 100 | 23,300,410 | 2,330,041 | |
Net loss | (15,540) | $ (310) | $ (15,230) | |
Balance at Dec. 31, 2019 | $ 11,364 | $ (3,821) | $ 12,049 | $ 3,136 |
Balance (units) at Dec. 31, 2019 | 100 | 23,300,410 | 2,330,041 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (15,540) | $ (45,008) | $ (2,897) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation, depletion and amortization | 3,607 | 5,874 | 3,576 |
Asset impairment | 10,982 | 41,762 | |
(Gains) losses on derivatives | (535) | 217 | |
Loss on asset sales | 33 | ||
Amortization of deferred financing costs | 67 | 51 | 51 |
Changes in operating assets and liabilities: | |||
Accounts receivable and other | 76 | (14) | (10) |
Advances to/from affiliates | (636) | (456) | (749) |
Accounts payable and accrued liabilities | 127 | 506 | (538) |
Net cash provided by (used in) operating activities | (1,284) | 2,180 | (350) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (6,873) | ||
Net disposed assets | (37) | ||
Proceeds from sale of assets | 17 | ||
Net cash used in investing activities | (20) | (6,873) | |
Net change in cash and cash equivalents | (1,304) | (4,693) | (350) |
Cash and cash equivalents, beginning of year | 3,543 | 8,236 | 8,586 |
Cash and cash equivalents, end of year | 2,239 | $ 3,543 | $ 8,236 |
Supplemental Disclosure of Non-Cash Activities: | |||
Revisions to asset retirement obligation | $ 78 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1 – BASIS OF PRESENTATION We are a Delaware limited partnership and an independent developer and producer of natural gas, crude oil and NGLs with operations primarily focused in the Eagle Ford Shale in south Texas. Our general partner, Atlas Growth Partners GP, LLC owns 100% of our general partner units (which are entitled to receive 2% of the cash distributed by us without any obligation to make further capital contributions) and all of the incentive distribution rights through which it manages and controls us. Atlas Energy Group, LLC (“ATLS”), a Delaware limited liability company, manages and controls us through its 2.1% limited partner interest in us and its 80% member interest in our general partner. Current and former members of ATLS management own the remaining 20% member interest in our general partner. At December 31, 2019, we had 23,300,410 common limited partner units issued and outstanding. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Our consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Transactions between us and other ATLS managed operations have been identified in the consolidated financial statements as transactions between affiliates, where applicable. All intercompany transactions have been eliminated. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of our consolidated financial statements, as well as the reported amounts of revenue and costs and expenses during the reporting periods. Our consolidated financial statements are based on a number of significant estimates, including revenue and expense accruals, depletion of gas and oil properties, and fair value of derivative instruments. The oil and gas industry principally conducts its business by processing actual transactions as many as 60 days after the month of delivery. Consequently, the most recent two months’ financial results may be recorded using estimated volumes and contract market prices. Actual results may differ from those estimates. Liquidity For the years ended December 31, 2019 and 2018, we had net losses of $15.5 million and $45.0 million, respectively, and cash used in operating activities of $1.3 million and cash provided by operating activities of $2.2 million, respectively. With the Partnership’s positive working capital, forecast of cash flows provided by operations, and planned spending reductions of general and administrative costs, we believe our resources will be sufficient to fund operations into 2021 and we will be able to continue as a going concern for one year from the date of the issuance of these consolidated financial statements. Cash Equivalents We consider all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. These cash equivalents consist principally of temporary investments of cash in short-term money market instruments. Receivables Accounts receivable consists solely of the trade accounts receivable associated with our operations. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer’s current creditworthiness as determined by our review of customers’ credit information. We extend credit on sales on an unsecured basis to many of our customers. At December 31, 2019 and 2018, we had recorded no allowance for uncollectible accounts receivable on our consolidated balance sheets. Property, Plant and Equipment Property, plant and equipment are stated at cost or, upon acquisition of a business, at the fair value of the assets acquired. Maintenance and repairs which generally do not extend the useful life of an asset for two years or more through the replacement of critical components are expensed as incurred. Major renewals and improvements which generally extend the useful life of an asset for two years or more through the replacement of critical components are capitalized. Depreciation and amortization expense is based on cost less the estimated salvage value primarily using the straight-line method over the asset’s estimated useful life. When entire pipeline systems, gas plants or other property and equipment are retired or sold, any gain or loss is included in our results of operations. We follow the successful efforts method of accounting for oil and gas producing activities. Exploratory drilling costs are capitalized pending determination of whether a well is successful. Exploratory wells subsequently determined to be dry holes are charged to expense. Costs resulting in exploratory discoveries and all development costs, whether successful or not, are capitalized. Geological and geophysical costs to enhance or evaluate development of proved fields or areas are capitalized. All other geological and geophysical costs, delay rentals and unsuccessful exploratory wells are expensed. Oil and NGLs are converted to gas equivalent basis (“Mcfe”) at the rate of one barrel to six Mcf of natural gas. Mcf is defined as one thousand cubic feet. Our depletion expense is determined on a field-by-field basis using the units-of-production method. Depletion rates for leasehold acquisition costs are based on estimated proved reserves, and depletion rates for well and related equipment costs are based on proved developed reserves associated with each field. Depletion rates are determined based on reserve quantity estimates and the capitalized costs of undeveloped and developed producing properties. We also consider the estimated salvage value in our calculation of depletion. Capitalized costs of developed producing properties in each field are aggregated to include our costs of property interests in proportionately consolidated joint venture wells, wells drilled solely by us for our interests, properties purchased and working interests with other outside operators. Upon the sale or retirement of a complete field of a proved property, the cost is eliminated from the property accounts, and the resultant gain or loss is reclassified to our consolidated statement of operations. Upon the sale of an individual well, we credit the proceeds to accumulated depreciation and depletion within our consolidated balance sheet. Upon our sale of an entire interest in an unproved property where the property had been assessed for impairment individually, a gain or loss is recognized in our consolidated statements of operations. If a partial interest in an unproved property is sold, any funds received are accounted for as a reduction of the cost in the interest retained. Support equipment and other are carried at cost and consist primarily of pipelines, processing and compression facilities, and gathering systems and related support equipment. We compute depreciation of support equipment and other using the straight-line balance method over the estimated useful life of each asset type, which is 15-20 years. See Note 3 for additional disclosures regarding property, plant and equipment. Impairment of Property, Plant and Equipment We review our property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that an asset’s estimated future cash flows will not be sufficient to recover its carrying amount, an impairment charge will be recorded to reduce the carrying amount for that asset to its estimated fair value if such carrying amount exceeds the fair value. Our unproved properties are assessed individually based on several factors including if a dry hole has been drilled in the area, other wells drilled in the area and operating results, remaining months in the lease’s primary term, and management’s future plans to drill and develop the area. As exploration and development work progresses and the reserves on properties are proven, capitalized costs of these properties are subject to depletion. If exploration activities are unsuccessful, the capitalized costs of the properties related to the unsuccessful work is charged to exploration expense. The timing of impairment of any significant unproved properties depends upon the nature, timing and extent of future exploration and development activities and their results. The review of our proved oil and gas properties is done on a field-by-field basis by determining if the historical cost of proved properties less the applicable accumulated depletion, depreciation and amortization and abandonment is less than the estimated expected undiscounted future cash flows. The expected future cash flows are estimated based on our plans to continue to produce and develop proved reserves. Expected future cash flows from the sale of production of reserves are calculated based on estimated future prices. We estimate prices based upon current contracts in place, adjusted for basis differentials and market related information including published futures prices. The estimated future level of production is based on assumptions surrounding future prices and costs, field decline rates, market demand and supply and the economic and regulatory climates. If the carrying value exceeds the expected future cash flows, an impairment loss is recognized for the difference between the estimated fair market value (as determined by discounted future cash flows) and the carrying value of the assets. The determination of oil and natural gas reserve estimates is a subjective process, and the accuracy of any reserve estimate depends on the quality of available data and the application of engineering and geological interpretation and judgment. Estimates of economically recoverable reserves and future net cash flows depend on a number of variable factors and assumptions that are difficult to predict and may vary considerably from actual results. Reserve estimates for wells with limited or no production history are less reliable than those based on actual production. Estimated reserves are often subject to future revisions, which could be substantial, based on the availability of additional information which could cause the assumptions to be modified. We cannot predict what reserve revisions may be required in future periods. See Note 3 for additional disclosures regarding impairment of property, plant and equipment. Derivative Instruments We entered into certain financial contracts to manage our exposure to movement in commodity prices. The derivative instruments recorded in the consolidated balance sheets are measured as either an asset or liability at fair value. Changes in the fair value of derivative instruments were recognized currently within gain (loss) on mark-to-market derivatives in our consolidated statements of operations. See Note 4 for additional disclosures regarding derivative instruments. Asset Retirement Obligations We recognize an estimated liability for the plugging and abandonment of our gas and oil wells and related facilities. We recognize a liability for our future asset retirement obligations in the current period if a reasonable estimate of the fair value of that liability can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The estimated liability for asset retirement obligations was based on our historical experience in plugging and abandoning wells, the estimated remaining lives of those wells based on reserve estimates, external estimates as to the cost to plug and abandon the wells in the future, and federal and state regulatory requirements. The liability was discounted using an assumed credit-adjusted risk-free interest rate. Revisions to the liability could occur due to changes in estimates of plugging and abandonment costs or remaining lives of the wells, or if federal or state regulators enact new plugging and abandonment requirements. We have no assets legally restricted for purposes of settling asset retirement obligations. Except for our gas and oil properties, we determined that there were no other material retirement obligations associated with tangible long-lived assets. As of December 31, 2019 and 2018, our asset retirement obligation was $0.2 million and $0.2 million, respectively. For the years ended December 31, 2019, 2018 and 2017, we recorded $17,000, $36,000, and $16,000, respectively, of accretion expense related to our asset retirement obligations within depreciation, depletion and amortization in our consolidated statements of operations. See Note 5 for additional disclosures regarding asset retirement obligations. Accrued and We have two lease agreements in our Eagle Ford operating area that required us to perform certain drilling and development activities by a specified date or pay liquidated damages to maintain the lease. We determined the liquidated damages were a probable loss contingency and estimated the value of the liquidated damages enforceable under Texas law. As of December 31, 2019 and 2018, we presented $0.3 million and $0.3 million, respectively, included in current accrued liabilities on our consolidated balance sheet. Income Taxes We are not subject to U.S. federal and most state income taxes. Our partners are liable for income tax in regard to their distributive share of our taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Accordingly, no federal or state current or deferred income tax has been provided for in the consolidated financial statements. We evaluate tax positions taken or expected to be taken in the course of preparing our tax returns and disallow the recognition of tax positions not deemed to meet a “more-likely-than-not” threshold of being sustained by the applicable tax authority. Our management does not believe it has taken any tax positions within our consolidated financial statements that would not meet this threshold. Our policy is to reflect interest and penalties related to uncertain tax positions, when and if they become applicable. We have not recognized any potential interest or penalties in our consolidated financial statements for the years ended December 31, 2019 and 2018. We file Partnership Returns of Income in the U.S. and various state jurisdictions. We are not subject to income tax examinations by major tax authorities for years prior to 2013, our year of formation. We are not currently being examined by any jurisdiction and are not aware of any potential examinations. On December 22, 2017, the President signed into law Public Law No. 115-97, a comprehensive tax reform bill commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that makes significant changes to the U.S. Internal Revenue Code. Among other changes, the Tax Act includes a new deduction on certain pass-through income, a repeal of the partnership technical termination rule, and new limitations on certain deductions and credits, including interest expense deductions. Since our operations are not subject to federal income tax, the Tax Act did not have a material impact on us. Segment Reporting We derive revenue from our gas and oil production. The production facilities associated with our oil and gas production have been aggregated into one reportable segment because the facilities have similar long-term economic characteristics, products and types of customers. Revenue Recognition On January 1, 2018, we adopted ASU No. 2014–09, Revenue from Contracts with Customers Oil, Natural Gas, and NGL Revenues Our revenues are derived from the sale of oil, natural gas, and NGLs, which is recognized in the period that the performance obligations are satisfied. We generally consider the delivery of each unit (Bbl or MMBtu) to be separately identifiable and the delivery of each unit represents a distinct performance obligation that is satisfied at a point-in-time once control of the product has been transferred to the customer upon delivery to an agreed upon delivery point. Transfer of control typically occurs when the products are delivered to the purchaser and title has transferred. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration we expect to receive in exchange for those products. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by us from a customer, are excluded from revenue. Payment is generally received one month after the sale has occurred. Our oil production is primarily sold under market-sensitive contracts that are typically priced at a differential to the New York Mercantile Exchange (“NYMEX”) price or at purchaser posted prices for the producing area. For oil contracts, we generally record sales based on the net amount received. Our natural gas production is primarily sold under market-sensitive contracts that are typically priced at a differential to the published natural gas index price for the producing area due to the natural gas quality and the proximity to major consuming markets. For natural gas contracts, we generally record wet gas sales (which consists of natural gas and NGLs based on end products after processing) at the wellhead or inlet of the plant as revenues net of transportation, gathering and processing expenses if the processor is the customer and there is no redelivery of commodities to us at the tailgate of the plant. Conversely, we generally record residual natural gas and NGL sales at the tailgate of the plant on a gross basis along with the associated transportation, gathering and processing expenses if the processor is a service provider and there is redelivery of commodities to us at the tailgate of the plant. All facts and circumstances of an arrangement are considered and judgment is often required in making this determination. Transaction Price Allocated to Remaining Performance Obligations A significant number of our product sales are short-term in nature with contract terms of one year or less, though generally subject to customary evergreen clauses pursuant to which these contracts typically automatically renew under the same terms and conditions. For those contracts, we have utilized the practical expedient allowed in the new revenue standard that exempts us from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For product sales that have a contract term greater than one year, we have utilized the practical expedient that exempts us from disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Currently, our product sales that have a contractual term greater than one year have no long-term fixed consideration. Contract Balances Under our sales contracts, customers are invoiced once performance obligations have been satisfied, at which point our right to payment is unconditional. Accordingly, our product sales contracts do not give rise to contract assets or liabilities. Accounts receivable attributable to our revenue contracts with customers was $0.5 million and $0.6 million, respectively, at December 31, 2019 and December 31, 2018, respectively. Net Loss Per Common Unit Basic net loss attributable to common limited partners per unit is computed by dividing net loss attributable to common limited partners (which is determined after the deduction of the general partner’s interest) by the weighted average number of common limited partner units outstanding during the period. The following is a reconciliation of net loss allocated to the common limited partners for purposes of calculating net loss attributable to common limited partners per unit (in thousands): Years Ended December 31, 2019 2018 2017 Net loss $ (15,540 ) $ (45,008 ) $ (2,897 ) Less: General partner’s interest (310 ) (900 ) (58 ) Net loss attributable to common limited partners $ (15,230 ) $ (44,108 ) $ (2,839 ) Diluted net loss attributable to common limited partners per unit is calculated by dividing net loss attributable to common limited partners by the sum of the weighted average number of common limited partner units outstanding and the dilutive effect of common limited partner warrants, as calculated by the treasury stock method. The following table sets forth the reconciliation of our weighted average number of common units used to compute basic net loss attributable to common unit holders per unit with those used to compute diluted net loss attributable to common unit holders per unit (in thousands): Years Ended December 31, 2019 2018 2017 Weighted average number of common units – basic 23,300 23,300 23,300 Add effect of dilutive awards (1) — — — Weighted average number of common units – diluted 23,300 23,300 23,300 (1) For each of the years ended December 31, 2019, 2018, and 2017, 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. Concentration of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of periodic temporary investments of cash and cash equivalents. We place our temporary cash investments in high-quality short-term money market instruments and deposits with high-quality financial institutions and brokerage firms. At December 31, 2019 and 2018, we had $2.2 million and $3.5 million, respectively, in deposits at various banks, of which $2.0 million and $3.2 million, respectively, were over the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such investments to date. Cash on deposit at various banks may differ from the balance of cash and cash equivalents at period end due to certain reconciling items, including any outstanding checks as of period end. We sell natural gas, crude oil and NGLs under contracts to various purchasers in the normal course of business. For the year ended December 31, 2019, Shell Trading Co individually accounted for approximately 95% of our natural gas, oil and NGL consolidated revenues. For the year ended December 31, 2018, Shell Trading Co individually accounted for approximately 91% of our natural gas, oil and NGL consolidated revenues, excluding the impact of all financial derivative activity. For the year ended December 31, 2017, Shell Trading Co individually accounted for approximately 91% of our natural gas, oil and NGL consolidated revenues, excluding the impact of all financial derivative activity. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Update 2016-02, “Leases (Topic 842)”. The updated accounting guidance requires lessees to recognize a lease asset and liability at the commencement date of all leases (with the exception of short-term leases), initially measured at the present value of the lease payments. We have evaluated our existing arrangements and service contracts and determined that none of the agreements meet the definition of a lease as defined in Topic 842. As such, there was no impact to our consolidated statements of operations, financial position and financial disclosures upon adoption of the new accounting standard on January 1, 2019. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 3 – PROPERTY, PLANT AND EQUIPMENT The following is a summary of property, plant and equipment at the dates indicated (in thousands): December 31, 2019 December 31, 2018 Natural gas and oil properties: Proved properties $ 137,627 $ 154,954 Support equipment and other 3,188 3,188 140,815 158,142 Less – accumulated depreciation, depletion and amortization (131,133 ) (133,456 ) $ 9,682 $ 24,686 For the year ended December 31, 2019 and 2018, we recognized $11.0 million and $41.8 million, respectively, of impairment related to our proved oil and gas properties in the Eagle Ford operating area, which were impaired due to lower forecasted production performance and commodity prices. During the year ended December 31, 2018, we deployed $6.9 million of cash on hand to drill and complete one Eagle Ford Shale well that turned in-line in May 2018. During the years ended December 31, 2019 and 2018, we did not have any material non-cash investing activity capital expenditures. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | NOTE 4 – DERIVATIVE INSTRUMENTS We used swaps in connection with our commodity price risk management activities. We did not apply hedge accounting to any of our derivative instruments. As a result, gains and losses associated with derivative instruments were recognized as gains on mark-to-market derivatives on our consolidated statements of operations. We entered into commodity future option contracts to achieve more predictable cash flows by hedging our exposure to changes in commodity prices. At any point in time, such contracts may have included regulated NYMEX futures and options contracts and non-regulated over-the-counter futures contracts with qualified counterparties. NYMEX contracts are generally settled with offsetting positions, but may be settled by the physical delivery of the commodity. Crude oil contracts are based on a West Texas Intermediate (“WTI”) index. The following table summarizes the commodity derivative activity for the period indicated (in thousands): Years Ended December 31, 2019 2018 Losses recognized on cash settlement $ — $ (916 ) Changes in fair value on open derivative contracts — 535 Loss on mark-to-market derivatives $ — $ (381 ) As of December 31, 2019 and 2018, we did not have any commodity derivatives outstanding. On May 1, 2015, we entered into a secured credit facility agreement with a syndicate of banks, which matures on May 1, 2020. As of December 31, 2019, the lenders under the credit facility had no commitment to lend to us under the credit facility and we have a zero dollar borrowing base, but we and our subsidiaries have the ability to enter into derivative contracts to manage our exposure to commodity price movements which will benefit from the collateral securing the credit facility. Obligations under the credit facility are secured by mortgages on our oil and gas properties and a first priority security interest in substantially all of our assets. The credit facility may be amended in the future if we and the lenders agree to increase the borrowing base and the lenders’ commitments thereunder. The secured credit facility agreement contains covenants that limit our and our subsidiaries’ ability to incur indebtedness, grant liens, make loans or investments, make distributions, merge into or consolidate with other persons, enter into commodity or interest rate swap agreements that do not conform to specified terms or that exceed specified amounts, or engage in certain asset dispositions, including a sale of all or substantially all of our assets. We were in compliance with these covenants as of December 31, 2019. In addition, our credit facility includes customary events of default, including failure to timely pay, breach of covenants, bankruptcy, cross-default with other material indebtedness (including obligations under swap agreements in excess of any agreed upon threshold amount), and change of control provisions. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | NOTE 5 – ASSET RETIREMENT OBLIGATIONS We recognize the fair value of our asset retirement obligations related to plugging, abandonment, and remediation of our gas and oil producing properties at the end of their productive lives. We determined the asset retirement obligation by calculating the present value of estimated future cash flows related to the obligation. The retirement obligation is recorded as a liability at its estimated present value as of the obligation’s inception, with an offsetting increase to proved reserves. Changes in the liability for the asset retirement obligations are recognized for the passage of time and revisions to either the timing or the amount of estimated cash flows. Accretion expense is recognized for the impacts of increasing the discounted fair value to its estimate settlement value. The following table summarizes the changes to our asset retirement obligations for the period indicated (in thousands): Years Ended December 31, 2019 2018 Asset retirement obligation – beginning of year $ 226 $ 190 Revisions in estimate 78 — Adjustments through disposals and settlements (105 ) — Accretion expense 17 36 Asset retirement obligation – ending of year $ 216 $ 226 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 6 – FAIR VALUE OF FINANCIAL INSTRUMENTS Management has established a hierarchy to measure our financial instruments at fair value, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs represent market data obtained from independent sources; whereas, unobservable inputs reflect our own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 – Unobservable inputs that reflect the entity’s own assumptions about the assumptions market participants would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques. Assets and Liabilities Measured at Fair Value on a Recurring Basis We used a market approach fair value methodology to value the assets and liabilities for our outstanding derivative instruments (see Note 4). We managed and reported derivative assets and liabilities on the basis of our exposure to market risks and credit risks by counterparty. Commodity derivative instruments are valued based on observable market data related to the change in price of the underlying commodity and are therefore defined as Level 2 assets and liabilities within the same class of nature and risk. These derivative values were calculated by utilizing commodity indices, quoted prices for futures and options contracts traded on open markets that coincide with the underlying commodity, expiration period, strike price (if applicable) and pricing formula utilized in the derivative instrument. As of December 31, 2019 and 2018, we did not have any commodity derivatives outstanding. The asset retirement obligation is classified within Level 3 as the fair value is estimated using discounted cash flow projections using numerous estimates, assumptions and judgements. The estimated liability for asset retirement obligations was based on our historical experience in plugging and abandoning wells, the estimated remaining lives of those wells based on reserve estimates, external estimates as to the cost to plug and abandon the wells in the future, and federal and state regulatory requirements. The liability was discounted using an assumed credit-adjusted risk-free interest rate. See Note 5 for disclosure of asset retirement obligations and changes to the liability for the year. Other Financial Instruments Our other current assets and liabilities on our consolidated balance sheets are considered to be financial instruments. The estimated fair values of these instruments approximate their carrying amounts due to their short-term nature and thus are categorized as Level 1. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Asset Impairments. We estimate the fair value of our gas and oil properties in connection with reviewing these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, using estimates, assumptions and judgments regarding such events or circumstances based on a discounted cash flow model, which considers the estimated remaining lives of the wells based on reserve estimates, our future operating and development costs of the assets, the respective natural gas, oil and natural gas liquids forward price curves and estimated salvage values using our historical experience and external estimates of recovery values. See Note 3 for disclosure of impairments of our gas and oil properties. These estimates of fair value are Level 3 measurements as they are based on unobservable inputs. |
Certain Relationships and Relat
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | NOTE 7 – CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS Relationship with ATLS . We do not directly employ any persons to manage or operate our business. These functions are provided by employees of ATLS and/or its affiliates, including Titan Energy, LLC (“Titan”). Our general partner receives an annual management fee in connection with its management of us equivalent to 1% of capital contributions per annum. During both of the years ended December 31, 2019 and 2018 we paid a management fee of $2.3 million to our general partner. Other indirect costs, such as rent for offices, are allocated by Titan at the direction of ATLS based on the number of its employees who devoted their time to activities on our behalf. We reimburse ATLS at cost for direct costs incurred on our behalf. We reimburse all necessary and reasonable costs allocated to us by ATLS. All of the costs paid or payable to ATLS and our general partner discussed above were included in general and administrative expenses – affiliate in the consolidated statements of operations. As of both December 31, 2019 and December 31, 2018, we had payables to ATLS of zero, respectively, related to the management fee, direct costs and allocated indirect costs, which were recorded in advances from affiliates in the consolidated balance sheets. Relationship with Titan . At the direction of ATLS, we reimburse Titan for direct costs, such as salaries and wages, charged to us based on ATLS employees who incurred time to activities on our behalf and indirect costs, such as rent and other general and administrative costs, allocated to us based on the number of ATLS employees who devoted their time to activities on our behalf. As of December 31, 2019 and December 31, 2018, we had receivables from Titan of $0.5 million and payables to Titan of $0.1 million, respectively, related to the direct costs, indirect cost allocation, and timing of funding of cash accounts for reimbursement of operating activities and capital expenditures, which were recorded in advances to/from affiliates in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES General Commitments Rental expense for equipment was $0.2 million, $0.2 million, and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. We do not have any future minimum rental commitments as of December 31, 2019. As of December 31, 2019, certain of our executives are parties to employment agreements with ATLS or Titan that provide compensation and certain other benefits to such executives. The agreements provide for severance payments under certain circumstances. As of December 31, 2019, we did not have any commitments related to our drilling and completion and capital expenditures. Legal Proceedings We and our subsidiaries are parties to various routine legal proceedings arising in the ordinary course of business. Our management and our subsidiaries believe that none of these actions, individually or in the aggregate, will have a material adverse effect on our financial condition or results of operations. Environmental Matters We and our subsidiaries are subject to various federal, state and local laws and regulations relating to the protection of the environment. We have established procedures for the ongoing evaluation of our and our subsidiaries’ operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or clean-ups are probable, and the costs can be reasonably estimated. We and our subsidiaries maintain insurance which may cover in whole or in part certain environmental expenditures. We and our subsidiaries had no environmental matters requiring specific disclosure or requiring the recognition of a liability as of December 31, 2019 or December 31, 2018. |
Issuances of Units
Issuances of Units | 12 Months Ended |
Dec. 31, 2019 | |
Proceeds From Issuance Or Sale Of Equity [Abstract] | |
Issuances of Units | NOTE 9 – ISSUANCES OF UNITS On November 2, 2016, our management decided to suspend our primary offering efforts in light of new regulations and the challenging fund raising environment until such time as market participants have had an opportunity to ascertain the impact of such issues. |
Cash Distributions
Cash Distributions | 12 Months Ended |
Dec. 31, 2019 | |
Distributions Made To Members Or Limited Partners [Abstract] | |
Cash Distributions | NOTE 10 – CASH DISTRIBUTIONS We have a cash distribution policy under which we distribute to holders of our common units and Class A units on a quarterly basis a target distribution of $0.175 per unit, or $0.70 per unit per year, to the extent we have sufficient available cash after establishing appropriate reserves and paying fees and expenses, including reimbursements of expenses to the general partner and its affiliates. Distributions are generally paid within 45 days of the end of the quarter to unitholders of record on the applicable record date. Unitholders are entitled to receive distributions from us beginning with the quarter following the quarter in which we first admit them as limited partners. On November 2, 2016, the Board of Directors determined to suspend our quarterly common unit distributions, beginning with the three months ended September 30, 2016, in order to retain our cash flow and reinvest in our business and assets. |
Correction of An Immaterial Err
Correction of An Immaterial Error | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Correction of An Immaterial Error | NOTE 11 – CORRECTION OF AN IMMATERIAL ERROR In connection with the preparation of our Quarterly Report on Form 10-Q for the period ended September 30, 2019, we identified an error in the amounts settled from our purchaser for the production periods June 2018 to July 2019. The purchaser issued revised settlement statements for this period, which resulted in a reduction of revenues of $0.8 million and depletion expense of $0.3 million for a net increase in our net loss of $0.5 million. The adjustment decreased our advances to (from) affiliates from a receivable of $1.3 million to a receivable of $0.5 million for the period ended December 31, 2019. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the errors and, based on an analysis of quantitative and qualitative factors, determined that the related impact was not material to our consolidated financial statements for any prior annual or interim period. Therefore, amendments of previously filed reports are not required. If the settlement statement correction had been recognized in the respective production months of 2018, the revenue reported for 2018 would have been decreased $0.4 million from $10.4 million to $10.0 million, net loss would have increased $0.4 million from $45.0 million to $45.4 million and total assets would have decreased $0.4 million from $28.9 million to $28.5 million. If the settlement statement correction had been recognized in the respective production months of 2019, revenue would have been increased by $0.4 million from $6.1 million to $6.5 million, net loss would have decreased $0.4 million from $15.5 million to $15.1 million. The total assets as of December 31, 2019 would have decreased $0.2 million from $13.0 million to $12.8 million. |
Supplemental Oil and Gas Inform
Supplemental Oil and Gas Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | |
Supplemental Oil and Gas Information (Unaudited) | NOTE 12—SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) Oil and Gas Reserve Information . The preparation of our natural gas, oil and NGL reserve estimates was completed in accordance with the prescribed guidelines established by the SEC. In accordance with our internal policies and procedures related to reserve estimates, annually we engage an independent petroleum engineering firm to audit our reserves. For the years ended December 31, 2019 and 2018, we engaged VSO Petroleum Consultants, Inc. and for the year ended December 31, 2017, we engaged Wright & Company, Inc. The reserve disclosures that follow reflect estimates of proved reserves, proved developed reserves and proved undeveloped reserves, net of royalty interests, of natural gas, crude oil and NGLs owned at year end and changes in proved reserves during the last year. Proved oil, gas and NGL reserves are those quantities of oil, gas and NGLs, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations – prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. Proved developed reserves are those reserves of any category that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well. Proved undeveloped reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Reserves on undrilled acreage are limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances. Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time. Estimates for undeveloped reserves cannot be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty. The proved reserves quantities and future net cash flows were estimated using an unweighted 12-month average pricing based on the prices on the first day of each month during the years ended December 31, 2019, 2018 and 2017, including adjustments related to regional price differentials and energy content. There are numerous uncertainties inherent in estimating quantities of proven reserves and in projecting future net revenues and the timing of development expenditures. The reserve data presented represents estimates only and should not be construed as being exact. In addition, the standardized measures of discounted future net cash flows may not represent the fair market value of our oil, gas and NGL reserves or the present value of future cash flows of equivalent reserves, due to anticipated future changes in oil, gas and NGL prices and in production and development costs and other factors, for their effects have not been proved. Reserve quantity information and a reconciliation of changes in proved reserve quantities were as follows: Gas (MMcf) Oil (MBbls) NGLs (MBbls) Total (MMcfe) Balance, January 1, 2017 1,432 3,387 267 23,356 Extensions, discoveries and other additions — — — — Sales of reserves in-place — — — — Purchase of reserves in-place — — — — Revisions of previous estimates (1) 548 1,231 169 8,949 Production (114 ) (143 ) (20 ) (1,092 ) Balance, December 31, 2017 1,866 4,475 416 31,213 Extensions, discoveries and other additions (1) 89 355 21 2,343 Sales of reserves in-place — — — — Purchase of reserves in-place — — — — Revisions of previous estimates (1) (739 ) (818 ) (157 ) (6,589 ) Production (114 ) (145 ) (21 ) (1,110 ) Balance, December 31, 2018 1,102 3,867 259 25,857 Extensions, discoveries and other addition — — — — Sales of reserves in-place — — — — Purchase of reserves in-place — — — — Revisions of previous estimates (1) (751 ) (3,274 ) (192 ) (21,548 ) Production (68 ) (100 ) (14 ) (751 ) Balance, December 31, 2019 283 493 53 3,558 Proved developed reserves at: January 1, 2017 652 925 100 6,802 December 31, 2017 613 788 121 6,069 December 31, 2018 292 676 69 4,762 December 31, 2019 283 493 53 3,558 Proved undeveloped reserves at: January 1, 2017 780 2,462 167 16,554 December 31, 2017 1,253 3,687 295 25,144 December 31, 2018 810 3,191 190 21,095 December 31, 2019 — — — — (1) See “Changes in Proved Reserves Changes in Proved Reserves The following represents the unweighted average of the first-day-of-the-month prices for each of the previous twelve months from the periods presented above: December 31, 2019 2018 2017 Unadjusted Prices Natural gas (per MMBtu) $ 2.58 $ 3.10 $ 2.98 Oil (per Bbl) $ 55.69 $ 65.56 $ 51.34 Natural gas liquids (per Bbl) $ 15.59 $ 25.57 $ 20.33 For the year ended December 31, 2019, we had negative revisions of 21,548 MMcfe primarily due to the removal of proved undeveloped properties as a result of uncertainty regarding our ability to access capital to develop the proved undeveloped reserves of 21,095 MMcfe and 437 MMcfe due to decreases in pricing. For the year ended December 31, 2018, we had extensions, discoveries and other additions of 2,343 MMcfe due to the addition of two proved undeveloped wells resulting from our well that was drilled and completed in May 2018. For the year ended December 31, 2018, we had negative revisions of 6,589 MMcfe due to updated type curves based on well results located closer to our Eagle Ford positions of 6,062 MMcfe, actual production underperforming previous year’s forecast by 339 MMcfe and operating expense revisions of 848 MMcfe offset by increases in pricing of 720 MMcfe. For the year ended December 31, 2017, we had positive revisions of 8,949 MMcfe due to modifications in our Eagle Ford development plan, focusing on longer lateral lengths of 8,585 MMcfe and increases in pricing of 1,208 MMcfe partially offset by negative revisions of 844 MMcfe due to production underperforming previous year’s forecast. Capitalized Costs Related to Oil and Gas Producing Activities . The components of our capitalized costs related to oil and gas producing activities as of the periods indicated were as follows (in thousands): December 31, 2019 2018 Natural gas and oil properties: Proved properties $ 137,627 $ 154,954 Unproved properties — — Support equipment 29 29 137,656 154,983 Accumulated depreciation, depletion and amortization (130,366 ) (132,814 ) Net capitalized costs $ 7,290 $ 22,169 Results of Operations from Oil and Gas Producing Activities. The results of operations related to our oil and gas producing activities during the periods indicated were as follows (in thousands): Years Ended December 31, 2019 2018 2017 Gas and oil production revenues $ 6,061 $ 10,441 $ 7,841 Production costs (2,512 ) (3,486 ) (2,528 ) Depletion (3,464 ) (5,724 ) (3,410 ) Asset impairment (1) (10,982 ) (41,762 ) — $ (10,897 ) $ (40,531 ) $ 1,903 (1) For the year ended December 31, 2019 and 2018, we recognized $11.0 million and Costs Incurred in Oil and Gas Producing Activities . The costs incurred by our oil and gas activities during the periods indicated are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Property acquisition costs: Proved properties $ — $ — $ — Unproved properties — — — Exploration costs (1) — — — Development costs — 6,873 — Total costs incurred in oil & gas producing activities $ — $ 6,873 $ — (1) There were no exploratory wells drilled during the periods presented. Standardized Measure of Discounted Future Cash Flows . The following schedule presents the standardized measure of estimated discounted future net cash flows relating to our proved oil and gas reserves. The estimated future production was priced at a twelve-month average for the periods presented, adjusted only for regional price differentials and energy content. The resulting estimated future cash inflows were reduced by estimated future costs to develop and produce the proved reserves based on year-end cost levels and includes the effect on cash flows of settlement of asset retirement obligations on gas and oil properties. The future net cash flows were reduced to present value amounts by applying a 10% discount factor. The standardized measure of future cash flows was prepared using the prevailing economic conditions existing at the dates presented and such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of recoverable reserves or in estimating future results of operations (in thousands): Years Ended December 31, 2019 2018 2017 Future cash inflows $ 29,634 $ 271,705 $ 243,644 Future production costs (18,270 ) (88,148 ) (73,792 ) Future development costs (717 ) (78,835 ) (68,321 ) Future net cash flows 10,647 104,722 101,531 Less 10% annual discount for estimated timing of cash flows (2,820 ) (53,007 ) (61,082 ) Standardized measure of discounted future net cash flows $ 7,827 $ 51,715 $ 40,449 Change in Standardized Discounted Cash Flows . The following table summarizes the changes in the standardized measure of discounted future net cash flows from estimated production of proved oil, gas and NGL reserves (in thousands), including amounts related to asset retirement obligations. Since we allocate taxable income to our unitholders, no recognition has been given to income taxes: Years Ended December 31, 2019 2018 2017 Balance, beginning of year $ 51,715 $ 40,449 $ 17,381 Increase (decrease) in discounted future net cash flows (1) Sales of oil and gas produced, net of related costs (3,549 ) (6,955 ) (5,403 ) Net changes in estimated future prices and production costs (6,555 ) 32,438 22,401 Revisions of previous quantity estimates (35,387 ) (26,896 ) 15,568 Development costs incurred — 6,873 — Changes in future development costs — — (11,236 ) Extensions, discoveries, and improved recovery less related costs — 1,761 — Sales of reserves in-place — — — Accretion of discount 1,603 4,045 1,738 Estimated settlement of asset retirement obligations — — — Estimated proceeds on disposals of well equipment — — — Balance, end of year $ 7,827 $ 51,715 $ 40,449 (1) See “ Reserve Quantity Information Revisions of Previous Estimates |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | NOTE 13 — QUARTERLY RESULTS (UNAUDITED) Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except unit data) Year ended December 31, 2019: Revenues $ 1,495 $ 764 $ 1,903 $ 1,899 Net loss attributable to common limited partners and the general partner’s interests (1) $ (12,286 ) $ (1,547 ) $ (839 ) $ (868 ) Allocation of net loss attributable to common limited partners and the general partner: Common limited partners’ interest $ (12,040 ) $ (1,516 ) $ (823 ) $ (851 ) General partner’s interest (246 ) (31 ) (16 ) (17 ) Net income loss attributable to common unitholders per unit: Basic $ (0.50 ) $ (0.07 ) $ (0.04 ) $ (0.04 ) Diluted $ (0.50 ) $ (0.07 ) $ (0.04 ) $ (0.04 ) (1) For each of the first, second, third and fourth quarters of the year ended December 31, 2019, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except unit data) Year ended December 31, 2018: Revenues $ 2,862 $ 3,035 $ 2,679 $ 1,484 Net income (loss) attributable to common limited partners and the general partner’s interests (1) $ (43,238 ) $ 173 $ (1,015 ) $ (928 ) Allocation of net income (loss) attributable to common limited partners and the general partner: Common limited partners’ interest $ (42,373 ) $ 169 $ (995 ) $ (909 ) General partner’s interest (865 ) 4 (20 ) (19 ) Net income (loss) attributable to common unitholders per unit: Basic $ (1.82 ) $ 0.01 $ (0.04 ) $ (0.04 ) Diluted $ (1.82 ) $ 0.01 $ (0.04 ) $ (0.04 ) ( 1 ) For each of the first, second, and fourth quarters of the year ended December 31, 2018, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14—SUBSEQUENT EVENT Beginning in March 2020, significant price decline and price volatility for oil and gas products emerged in the market. We could be directly impacted by these price changes if the decline in demand and price remain depressed for an extended period of time. Given the volatility and uncertainty, we may be at risk of being able to identify and secure a party to gather and purchase our products. A significant number of our product sales are short-term in nature with contract terms of one year or less, though generally subject to customary evergreen clauses (see Note 2). Should these contracts not be extended, we will work to identify other purchasers in the area to gather and purchase our oil and gas products. Failure to identify other purchasers and storage facilities, may result in the potential shut-in of the field. The financial statement impact, change in price and expected time for these changes is not estimable but could result in significant decreases in oil and gas operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Transactions between us and other ATLS managed operations have been identified in the consolidated financial statements as transactions between affiliates, where applicable. All intercompany transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of our consolidated financial statements, as well as the reported amounts of revenue and costs and expenses during the reporting periods. Our consolidated financial statements are based on a number of significant estimates, including revenue and expense accruals, depletion of gas and oil properties, and fair value of derivative instruments. The oil and gas industry principally conducts its business by processing actual transactions as many as 60 days after the month of delivery. Consequently, the most recent two months’ financial results may be recorded using estimated volumes and contract market prices. Actual results may differ from those estimates. |
Liquidity | Liquidity For the years ended December 31, 2019 and 2018, we had net losses of $15.5 million and $45.0 million, respectively, and cash used in operating activities of $1.3 million and cash provided by operating activities of $2.2 million, respectively. With the Partnership’s positive working capital, forecast of cash flows provided by operations, and planned spending reductions of general and administrative costs, we believe our resources will be sufficient to fund operations into 2021 and we will be able to continue as a going concern for one year from the date of the issuance of these consolidated financial statements. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents. These cash equivalents consist principally of temporary investments of cash in short-term money market instruments. |
Receivables | Receivables Accounts receivable consists solely of the trade accounts receivable associated with our operations. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer’s current creditworthiness as determined by our review of customers’ credit information. We extend credit on sales on an unsecured basis to many of our customers. At December 31, 2019 and 2018, we had recorded no allowance for uncollectible accounts receivable on our consolidated balance sheets. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost or, upon acquisition of a business, at the fair value of the assets acquired. Maintenance and repairs which generally do not extend the useful life of an asset for two years or more through the replacement of critical components are expensed as incurred. Major renewals and improvements which generally extend the useful life of an asset for two years or more through the replacement of critical components are capitalized. Depreciation and amortization expense is based on cost less the estimated salvage value primarily using the straight-line method over the asset’s estimated useful life. When entire pipeline systems, gas plants or other property and equipment are retired or sold, any gain or loss is included in our results of operations. We follow the successful efforts method of accounting for oil and gas producing activities. Exploratory drilling costs are capitalized pending determination of whether a well is successful. Exploratory wells subsequently determined to be dry holes are charged to expense. Costs resulting in exploratory discoveries and all development costs, whether successful or not, are capitalized. Geological and geophysical costs to enhance or evaluate development of proved fields or areas are capitalized. All other geological and geophysical costs, delay rentals and unsuccessful exploratory wells are expensed. Oil and NGLs are converted to gas equivalent basis (“Mcfe”) at the rate of one barrel to six Mcf of natural gas. Mcf is defined as one thousand cubic feet. Our depletion expense is determined on a field-by-field basis using the units-of-production method. Depletion rates for leasehold acquisition costs are based on estimated proved reserves, and depletion rates for well and related equipment costs are based on proved developed reserves associated with each field. Depletion rates are determined based on reserve quantity estimates and the capitalized costs of undeveloped and developed producing properties. We also consider the estimated salvage value in our calculation of depletion. Capitalized costs of developed producing properties in each field are aggregated to include our costs of property interests in proportionately consolidated joint venture wells, wells drilled solely by us for our interests, properties purchased and working interests with other outside operators. Upon the sale or retirement of a complete field of a proved property, the cost is eliminated from the property accounts, and the resultant gain or loss is reclassified to our consolidated statement of operations. Upon the sale of an individual well, we credit the proceeds to accumulated depreciation and depletion within our consolidated balance sheet. Upon our sale of an entire interest in an unproved property where the property had been assessed for impairment individually, a gain or loss is recognized in our consolidated statements of operations. If a partial interest in an unproved property is sold, any funds received are accounted for as a reduction of the cost in the interest retained. Support equipment and other are carried at cost and consist primarily of pipelines, processing and compression facilities, and gathering systems and related support equipment. We compute depreciation of support equipment and other using the straight-line balance method over the estimated useful life of each asset type, which is 15-20 years. See Note 3 for additional disclosures regarding property, plant and equipment. |
Impairment of Property, Plant and Equipment | Impairment of Property, Plant and Equipment We review our property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that an asset’s estimated future cash flows will not be sufficient to recover its carrying amount, an impairment charge will be recorded to reduce the carrying amount for that asset to its estimated fair value if such carrying amount exceeds the fair value. Our unproved properties are assessed individually based on several factors including if a dry hole has been drilled in the area, other wells drilled in the area and operating results, remaining months in the lease’s primary term, and management’s future plans to drill and develop the area. As exploration and development work progresses and the reserves on properties are proven, capitalized costs of these properties are subject to depletion. If exploration activities are unsuccessful, the capitalized costs of the properties related to the unsuccessful work is charged to exploration expense. The timing of impairment of any significant unproved properties depends upon the nature, timing and extent of future exploration and development activities and their results. The review of our proved oil and gas properties is done on a field-by-field basis by determining if the historical cost of proved properties less the applicable accumulated depletion, depreciation and amortization and abandonment is less than the estimated expected undiscounted future cash flows. The expected future cash flows are estimated based on our plans to continue to produce and develop proved reserves. Expected future cash flows from the sale of production of reserves are calculated based on estimated future prices. We estimate prices based upon current contracts in place, adjusted for basis differentials and market related information including published futures prices. The estimated future level of production is based on assumptions surrounding future prices and costs, field decline rates, market demand and supply and the economic and regulatory climates. If the carrying value exceeds the expected future cash flows, an impairment loss is recognized for the difference between the estimated fair market value (as determined by discounted future cash flows) and the carrying value of the assets. The determination of oil and natural gas reserve estimates is a subjective process, and the accuracy of any reserve estimate depends on the quality of available data and the application of engineering and geological interpretation and judgment. Estimates of economically recoverable reserves and future net cash flows depend on a number of variable factors and assumptions that are difficult to predict and may vary considerably from actual results. Reserve estimates for wells with limited or no production history are less reliable than those based on actual production. Estimated reserves are often subject to future revisions, which could be substantial, based on the availability of additional information which could cause the assumptions to be modified. We cannot predict what reserve revisions may be required in future periods. See Note 3 for additional disclosures regarding impairment of property, plant and equipment. |
Derivative Instruments | Derivative Instruments We entered into certain financial contracts to manage our exposure to movement in commodity prices. The derivative instruments recorded in the consolidated balance sheets are measured as either an asset or liability at fair value. Changes in the fair value of derivative instruments were recognized currently within gain (loss) on mark-to-market derivatives in our consolidated statements of operations. See Note 4 for additional disclosures regarding derivative instruments. |
Asset Retirement Obligations | Asset Retirement Obligations We recognize an estimated liability for the plugging and abandonment of our gas and oil wells and related facilities. We recognize a liability for our future asset retirement obligations in the current period if a reasonable estimate of the fair value of that liability can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The estimated liability for asset retirement obligations was based on our historical experience in plugging and abandoning wells, the estimated remaining lives of those wells based on reserve estimates, external estimates as to the cost to plug and abandon the wells in the future, and federal and state regulatory requirements. The liability was discounted using an assumed credit-adjusted risk-free interest rate. Revisions to the liability could occur due to changes in estimates of plugging and abandonment costs or remaining lives of the wells, or if federal or state regulators enact new plugging and abandonment requirements. We have no assets legally restricted for purposes of settling asset retirement obligations. Except for our gas and oil properties, we determined that there were no other material retirement obligations associated with tangible long-lived assets. As of December 31, 2019 and 2018, our asset retirement obligation was $0.2 million and $0.2 million, respectively. For the years ended December 31, 2019, 2018 and 2017, we recorded $17,000, $36,000, and $16,000, respectively, of accretion expense related to our asset retirement obligations within depreciation, depletion and amortization in our consolidated statements of operations. See Note 5 for additional disclosures regarding asset retirement obligations. |
Accrued and Other Non-current Liabilities | Accrued and We have two lease agreements in our Eagle Ford operating area that required us to perform certain drilling and development activities by a specified date or pay liquidated damages to maintain the lease. We determined the liquidated damages were a probable loss contingency and estimated the value of the liquidated damages enforceable under Texas law. As of December 31, 2019 and 2018, we presented $0.3 million and $0.3 million, respectively, included in current accrued liabilities on our consolidated balance sheet. |
Income Taxes | Income Taxes We are not subject to U.S. federal and most state income taxes. Our partners are liable for income tax in regard to their distributive share of our taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Accordingly, no federal or state current or deferred income tax has been provided for in the consolidated financial statements. We evaluate tax positions taken or expected to be taken in the course of preparing our tax returns and disallow the recognition of tax positions not deemed to meet a “more-likely-than-not” threshold of being sustained by the applicable tax authority. Our management does not believe it has taken any tax positions within our consolidated financial statements that would not meet this threshold. Our policy is to reflect interest and penalties related to uncertain tax positions, when and if they become applicable. We have not recognized any potential interest or penalties in our consolidated financial statements for the years ended December 31, 2019 and 2018. We file Partnership Returns of Income in the U.S. and various state jurisdictions. We are not subject to income tax examinations by major tax authorities for years prior to 2013, our year of formation. We are not currently being examined by any jurisdiction and are not aware of any potential examinations. On December 22, 2017, the President signed into law Public Law No. 115-97, a comprehensive tax reform bill commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that makes significant changes to the U.S. Internal Revenue Code. Among other changes, the Tax Act includes a new deduction on certain pass-through income, a repeal of the partnership technical termination rule, and new limitations on certain deductions and credits, including interest expense deductions. Since our operations are not subject to federal income tax, the Tax Act did not have a material impact on us. |
Segment Reporting | Segment Reporting We derive revenue from our gas and oil production. The production facilities associated with our oil and gas production have been aggregated into one reportable segment because the facilities have similar long-term economic characteristics, products and types of customers. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted ASU No. 2014–09, Revenue from Contracts with Customers Oil, Natural Gas, and NGL Revenues Our revenues are derived from the sale of oil, natural gas, and NGLs, which is recognized in the period that the performance obligations are satisfied. We generally consider the delivery of each unit (Bbl or MMBtu) to be separately identifiable and the delivery of each unit represents a distinct performance obligation that is satisfied at a point-in-time once control of the product has been transferred to the customer upon delivery to an agreed upon delivery point. Transfer of control typically occurs when the products are delivered to the purchaser and title has transferred. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration we expect to receive in exchange for those products. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and that are collected by us from a customer, are excluded from revenue. Payment is generally received one month after the sale has occurred. Our oil production is primarily sold under market-sensitive contracts that are typically priced at a differential to the New York Mercantile Exchange (“NYMEX”) price or at purchaser posted prices for the producing area. For oil contracts, we generally record sales based on the net amount received. Our natural gas production is primarily sold under market-sensitive contracts that are typically priced at a differential to the published natural gas index price for the producing area due to the natural gas quality and the proximity to major consuming markets. For natural gas contracts, we generally record wet gas sales (which consists of natural gas and NGLs based on end products after processing) at the wellhead or inlet of the plant as revenues net of transportation, gathering and processing expenses if the processor is the customer and there is no redelivery of commodities to us at the tailgate of the plant. Conversely, we generally record residual natural gas and NGL sales at the tailgate of the plant on a gross basis along with the associated transportation, gathering and processing expenses if the processor is a service provider and there is redelivery of commodities to us at the tailgate of the plant. All facts and circumstances of an arrangement are considered and judgment is often required in making this determination. Transaction Price Allocated to Remaining Performance Obligations A significant number of our product sales are short-term in nature with contract terms of one year or less, though generally subject to customary evergreen clauses pursuant to which these contracts typically automatically renew under the same terms and conditions. For those contracts, we have utilized the practical expedient allowed in the new revenue standard that exempts us from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For product sales that have a contract term greater than one year, we have utilized the practical expedient that exempts us from disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Currently, our product sales that have a contractual term greater than one year have no long-term fixed consideration. Contract Balances Under our sales contracts, customers are invoiced once performance obligations have been satisfied, at which point our right to payment is unconditional. Accordingly, our product sales contracts do not give rise to contract assets or liabilities. Accounts receivable attributable to our revenue contracts with customers was $0.5 million and $0.6 million, respectively, at December 31, 2019 and December 31, 2018, respectively. |
Net Loss Per Common Unit | Net Loss Per Common Unit Basic net loss attributable to common limited partners per unit is computed by dividing net loss attributable to common limited partners (which is determined after the deduction of the general partner’s interest) by the weighted average number of common limited partner units outstanding during the period. The following is a reconciliation of net loss allocated to the common limited partners for purposes of calculating net loss attributable to common limited partners per unit (in thousands): Years Ended December 31, 2019 2018 2017 Net loss $ (15,540 ) $ (45,008 ) $ (2,897 ) Less: General partner’s interest (310 ) (900 ) (58 ) Net loss attributable to common limited partners $ (15,230 ) $ (44,108 ) $ (2,839 ) Diluted net loss attributable to common limited partners per unit is calculated by dividing net loss attributable to common limited partners by the sum of the weighted average number of common limited partner units outstanding and the dilutive effect of common limited partner warrants, as calculated by the treasury stock method. The following table sets forth the reconciliation of our weighted average number of common units used to compute basic net loss attributable to common unit holders per unit with those used to compute diluted net loss attributable to common unit holders per unit (in thousands): Years Ended December 31, 2019 2018 2017 Weighted average number of common units – basic 23,300 23,300 23,300 Add effect of dilutive awards (1) — — — Weighted average number of common units – diluted 23,300 23,300 23,300 (1) For each of the years ended December 31, 2019, 2018, and 2017, 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of periodic temporary investments of cash and cash equivalents. We place our temporary cash investments in high-quality short-term money market instruments and deposits with high-quality financial institutions and brokerage firms. At December 31, 2019 and 2018, we had $2.2 million and $3.5 million, respectively, in deposits at various banks, of which $2.0 million and $3.2 million, respectively, were over the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such investments to date. Cash on deposit at various banks may differ from the balance of cash and cash equivalents at period end due to certain reconciling items, including any outstanding checks as of period end. We sell natural gas, crude oil and NGLs under contracts to various purchasers in the normal course of business. For the year ended December 31, 2019, Shell Trading Co individually accounted for approximately 95% of our natural gas, oil and NGL consolidated revenues. For the year ended December 31, 2018, Shell Trading Co individually accounted for approximately 91% of our natural gas, oil and NGL consolidated revenues, excluding the impact of all financial derivative activity. For the year ended December 31, 2017, Shell Trading Co individually accounted for approximately 91% of our natural gas, oil and NGL consolidated revenues, excluding the impact of all financial derivative activity. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Update 2016-02, “Leases (Topic 842)”. The updated accounting guidance requires lessees to recognize a lease asset and liability at the commencement date of all leases (with the exception of short-term leases), initially measured at the present value of the lease payments. We have evaluated our existing arrangements and service contracts and determined that none of the agreements meet the definition of a lease as defined in Topic 842. As such, there was no impact to our consolidated statements of operations, financial position and financial disclosures upon adoption of the new accounting standard on January 1, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Net Loss Reconciliation | The following is a reconciliation of net loss allocated to the common limited partners for purposes of calculating net loss attributable to common limited partners per unit (in thousands): Years Ended December 31, 2019 2018 2017 Net loss $ (15,540 ) $ (45,008 ) $ (2,897 ) Less: General partner’s interest (310 ) (900 ) (58 ) Net loss attributable to common limited partners $ (15,230 ) $ (44,108 ) $ (2,839 ) |
Reconciliation of Weighted Average Number of Common Units | The following table sets forth the reconciliation of our weighted average number of common units used to compute basic net loss attributable to common unit holders per unit with those used to compute diluted net loss attributable to common unit holders per unit (in thousands): Years Ended December 31, 2019 2018 2017 Weighted average number of common units – basic 23,300 23,300 23,300 Add effect of dilutive awards (1) — — — Weighted average number of common units – diluted 23,300 23,300 23,300 (1) For each of the years ended December 31, 2019, 2018, and 2017, 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of property, plant and equipment at the dates indicated (in thousands): December 31, 2019 December 31, 2018 Natural gas and oil properties: Proved properties $ 137,627 $ 154,954 Support equipment and other 3,188 3,188 140,815 158,142 Less – accumulated depreciation, depletion and amortization (131,133 ) (133,456 ) $ 9,682 $ 24,686 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Commodity Derivative Activity | The following table summarizes the commodity derivative activity for the period indicated (in thousands): Years Ended December 31, 2019 2018 Losses recognized on cash settlement $ — $ (916 ) Changes in fair value on open derivative contracts — 535 Loss on mark-to-market derivatives $ — $ (381 ) The following table summarizes the changes to our asset retirement obligations for the period indicated (in thousands): Years Ended December 31, 2019 2018 Asset retirement obligation – beginning of year $ 226 $ 190 Revisions in estimate 78 — Adjustments through disposals and settlements (105 ) — Accretion expense 17 36 Asset retirement obligation – ending of year $ 216 $ 226 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Changes in Asset Retirement Obligations | The following table summarizes the changes to our asset retirement obligations for the period indicated (in thousands): Years Ended December 31, 2019 2018 Asset retirement obligation – beginning of year $ 226 $ 190 Revisions in estimate 78 — Adjustments through disposals and settlements (105 ) — Accretion expense 17 36 Asset retirement obligation – ending of year $ 216 $ 226 |
Supplemental Oil and Gas Info_2
Supplemental Oil and Gas Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Oil And Gas Exploration And Production Industries Disclosures [Abstract] | |
Reserve Quantity Information | Reserve quantity information and a reconciliation of changes in proved reserve quantities were as follows: Gas (MMcf) Oil (MBbls) NGLs (MBbls) Total (MMcfe) Balance, January 1, 2017 1,432 3,387 267 23,356 Extensions, discoveries and other additions — — — — Sales of reserves in-place — — — — Purchase of reserves in-place — — — — Revisions of previous estimates (1) 548 1,231 169 8,949 Production (114 ) (143 ) (20 ) (1,092 ) Balance, December 31, 2017 1,866 4,475 416 31,213 Extensions, discoveries and other additions (1) 89 355 21 2,343 Sales of reserves in-place — — — — Purchase of reserves in-place — — — — Revisions of previous estimates (1) (739 ) (818 ) (157 ) (6,589 ) Production (114 ) (145 ) (21 ) (1,110 ) Balance, December 31, 2018 1,102 3,867 259 25,857 Extensions, discoveries and other addition — — — — Sales of reserves in-place — — — — Purchase of reserves in-place — — — — Revisions of previous estimates (1) (751 ) (3,274 ) (192 ) (21,548 ) Production (68 ) (100 ) (14 ) (751 ) Balance, December 31, 2019 283 493 53 3,558 Proved developed reserves at: January 1, 2017 652 925 100 6,802 December 31, 2017 613 788 121 6,069 December 31, 2018 292 676 69 4,762 December 31, 2019 283 493 53 3,558 Proved undeveloped reserves at: January 1, 2017 780 2,462 167 16,554 December 31, 2017 1,253 3,687 295 25,144 December 31, 2018 810 3,191 190 21,095 December 31, 2019 — — — — (1) See “Changes in Proved Reserves |
Schedule Of Change in Proved Reserves | The following represents the unweighted average of the first-day-of-the-month prices for each of the previous twelve months from the periods presented above: December 31, 2019 2018 2017 Unadjusted Prices Natural gas (per MMBtu) $ 2.58 $ 3.10 $ 2.98 Oil (per Bbl) $ 55.69 $ 65.56 $ 51.34 Natural gas liquids (per Bbl) $ 15.59 $ 25.57 $ 20.33 |
Schedule of Capitalized Costs Related to Oil and Gas Producing Activities | Capitalized Costs Related to Oil and Gas Producing Activities . The components of our capitalized costs related to oil and gas producing activities as of the periods indicated were as follows (in thousands): December 31, 2019 2018 Natural gas and oil properties: Proved properties $ 137,627 $ 154,954 Unproved properties — — Support equipment 29 29 137,656 154,983 Accumulated depreciation, depletion and amortization (130,366 ) (132,814 ) Net capitalized costs $ 7,290 $ 22,169 |
Schedule of Results of Operations from Oil and Gas Producing Activities | Results of Operations from Oil and Gas Producing Activities. The results of operations related to our oil and gas producing activities during the periods indicated were as follows (in thousands): Years Ended December 31, 2019 2018 2017 Gas and oil production revenues $ 6,061 $ 10,441 $ 7,841 Production costs (2,512 ) (3,486 ) (2,528 ) Depletion (3,464 ) (5,724 ) (3,410 ) Asset impairment (1) (10,982 ) (41,762 ) — $ (10,897 ) $ (40,531 ) $ 1,903 (1) For the year ended December 31, 2019 and 2018, we recognized $11.0 million and |
Schedule of Costs Incurred in Oil and Gas Producing Activities | Costs Incurred in Oil and Gas Producing Activities . The costs incurred by our oil and gas activities during the periods indicated are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Property acquisition costs: Proved properties $ — $ — $ — Unproved properties — — — Exploration costs (1) — — — Development costs — 6,873 — Total costs incurred in oil & gas producing activities $ — $ 6,873 $ — (1) There were no exploratory wells drilled during the periods presented. |
Schedule of Standardized Measure of Estimated Discounted Future Net Cash Flows | Standardized Measure of Discounted Future Cash Flows . The following schedule presents the standardized measure of estimated discounted future net cash flows relating to our proved oil and gas reserves. The estimated future production was priced at a twelve-month average for the periods presented, adjusted only for regional price differentials and energy content. The resulting estimated future cash inflows were reduced by estimated future costs to develop and produce the proved reserves based on year-end cost levels and includes the effect on cash flows of settlement of asset retirement obligations on gas and oil properties. The future net cash flows were reduced to present value amounts by applying a 10% discount factor. The standardized measure of future cash flows was prepared using the prevailing economic conditions existing at the dates presented and such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of recoverable reserves or in estimating future results of operations (in thousands): Years Ended December 31, 2019 2018 2017 Future cash inflows $ 29,634 $ 271,705 $ 243,644 Future production costs (18,270 ) (88,148 ) (73,792 ) Future development costs (717 ) (78,835 ) (68,321 ) Future net cash flows 10,647 104,722 101,531 Less 10% annual discount for estimated timing of cash flows (2,820 ) (53,007 ) (61,082 ) Standardized measure of discounted future net cash flows $ 7,827 $ 51,715 $ 40,449 |
Schedule of Changes in Discounted Future Net Cash Flows | Change in Standardized Discounted Cash Flows . The following table summarizes the changes in the standardized measure of discounted future net cash flows from estimated production of proved oil, gas and NGL reserves (in thousands), including amounts related to asset retirement obligations. Since we allocate taxable income to our unitholders, no recognition has been given to income taxes: Years Ended December 31, 2019 2018 2017 Balance, beginning of year $ 51,715 $ 40,449 $ 17,381 Increase (decrease) in discounted future net cash flows (1) Sales of oil and gas produced, net of related costs (3,549 ) (6,955 ) (5,403 ) Net changes in estimated future prices and production costs (6,555 ) 32,438 22,401 Revisions of previous quantity estimates (35,387 ) (26,896 ) 15,568 Development costs incurred — 6,873 — Changes in future development costs — — (11,236 ) Extensions, discoveries, and improved recovery less related costs — 1,761 — Sales of reserves in-place — — — Accretion of discount 1,603 4,045 1,738 Estimated settlement of asset retirement obligations — — — Estimated proceeds on disposals of well equipment — — — Balance, end of year $ 7,827 $ 51,715 $ 40,449 (1) See “ Reserve Quantity Information Revisions of Previous Estimates |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except unit data) Year ended December 31, 2019: Revenues $ 1,495 $ 764 $ 1,903 $ 1,899 Net loss attributable to common limited partners and the general partner’s interests (1) $ (12,286 ) $ (1,547 ) $ (839 ) $ (868 ) Allocation of net loss attributable to common limited partners and the general partner: Common limited partners’ interest $ (12,040 ) $ (1,516 ) $ (823 ) $ (851 ) General partner’s interest (246 ) (31 ) (16 ) (17 ) Net income loss attributable to common unitholders per unit: Basic $ (0.50 ) $ (0.07 ) $ (0.04 ) $ (0.04 ) Diluted $ (0.50 ) $ (0.07 ) $ (0.04 ) $ (0.04 ) (1) For each of the first, second, third and fourth quarters of the year ended December 31, 2019, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except unit data) Year ended December 31, 2018: Revenues $ 2,862 $ 3,035 $ 2,679 $ 1,484 Net income (loss) attributable to common limited partners and the general partner’s interests (1) $ (43,238 ) $ 173 $ (1,015 ) $ (928 ) Allocation of net income (loss) attributable to common limited partners and the general partner: Common limited partners’ interest $ (42,373 ) $ 169 $ (995 ) $ (909 ) General partner’s interest (865 ) 4 (20 ) (19 ) Net income (loss) attributable to common unitholders per unit: Basic $ (1.82 ) $ 0.01 $ (0.04 ) $ (0.04 ) Diluted $ (1.82 ) $ 0.01 $ (0.04 ) $ (0.04 ) ( 1 ) For each of the first, second, and fourth quarters of the year ended December 31, 2018, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Common Limited Partners' Interests | |
Basis Of Presentation [Line Items] | |
Common units, issued | 23,300,410 |
Common units, outstanding | 23,300,410 |
ATLS | |
Basis Of Presentation [Line Items] | |
General partner ownership interest | 80.00% |
Common limited partner ownership interest | 2.10% |
General partners remaining ownership interest | 20.00% |
Atlas Growth Partners GP, LLC | |
Basis Of Presentation [Line Items] | |
Percentage of cash distribution | 2.00% |
Atlas Growth Partners GP, LLC | ATLS | |
Basis Of Presentation [Line Items] | |
General partner ownership interest | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)LeaseSegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Net loss | $ (15,540,000) | $ (45,008,000) | $ (2,897,000) | ||
cash used in operating activities | (1,284,000) | 2,180,000 | (350,000) | ||
Allowance for uncollectible accounts receivable | 0 | 0 | |||
Asset retirement obligation, legally restricted assets | 0 | ||||
Asset retirement obligation | 216,000 | 226,000 | 190,000 | ||
Accretion expense related to asset retirement obligations | $ 17,000 | 36,000 | |||
Number of lease agreements | Lease | 2 | ||||
Accrued liabilities current | $ 300,000 | $ 300,000 | |||
Entity not subject to income taxes, policy | We are not subject to U.S. federal and most state income taxes. Our partners are liable for income tax in regard to their distributive share of our taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Accordingly, no federal or state current or deferred income tax has been provided for in the consolidated financial statements. | ||||
Income tax examination, description | We file Partnership Returns of Income in the U.S. and various state jurisdictions. We are not subject to income tax examinations by major tax authorities for years prior to 2013, our year of formation. We are not currently being examined by any jurisdiction and are not aware of any potential examinations. | ||||
Number of reportable segments | Segment | 1 | ||||
Cumulative effect adjustment | $ 11,364,000 | $ 26,904,000 | $ 71,912,000 | $ 74,809,000 | |
Accounts receivable to revenue contracts with customers | 600,000 | 600,000 | |||
Partnership deposits at various banks | 2,200,000 | 3,500,000 | |||
Deposits over insurance limit of Federal Deposit Insurance Corporation | $ 2,000,000 | $ 3,200,000 | |||
Concentration of credit risk, uninsured deposits | Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of periodic temporary investments of cash and cash equivalents. We place our temporary cash investments in high-quality short-term money market instruments and deposits with high-quality financial institutions and brokerage firms. At December 31, 2019 and 2018, we had $2.2 million and $3.5 million, respectively, in deposits at various banks, of which $2.0 million and $3.2 million, respectively, were over the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such investments to date. | ||||
Loss on Investments | $ 0 | ||||
Concentration risk, customer | We sell natural gas, crude oil and NGLs under contracts to various purchasers in the normal course of business. For the year ended December 31, 2019, Shell Trading Co individually accounted for approximately 95% of our natural gas, oil and NGL consolidated revenues. For the year ended December 31, 2018, Shell Trading Co individually accounted for approximately 91% of our natural gas, oil and NGL consolidated revenues, excluding the impact of all financial derivative activity. For the year ended December 31, 2017, Shell Trading Co individually accounted for approximately 91% of our natural gas, oil and NGL consolidated revenues, excluding the impact of all financial derivative activity. | ||||
Consolidated Revenues | Shell Trading Co | Customer Concentration Risk | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 95.00% | 91.00% | 91.00% | ||
ASU No. 2014-09 | Cumulative Effect Adoption 606 | |||||
Significant Accounting Policies [Line Items] | |||||
Cumulative effect adjustment | $ 0 | ||||
Depreciation, depletion and amortization | |||||
Significant Accounting Policies [Line Items] | |||||
Accretion expense related to asset retirement obligations | $ 17,000 | $ 36,000 | $ 16,000 | ||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life of assets | P15Y | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life of assets | P20Y | ||||
Liquidity [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Net loss | $ 15,500,000 | 45,000,000 | |||
cash used in operating activities | $ 1,300,000 | $ 2,200,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Net Loss Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Net loss | $ (15,540) | $ (45,008) | $ (2,897) | ||||||||
Less: General partner’s interest | $ 246 | $ 31 | $ 16 | $ 17 | $ 865 | $ (4) | $ 20 | $ 19 | 310 | 900 | 58 |
Net loss attributable to common limited partners | $ (12,040) | $ (1,516) | $ (823) | $ (851) | $ (42,373) | $ 169 | $ (995) | $ (909) | $ (15,230) | $ (44,108) | $ (2,839) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Reconciliation of Weighted Average Number of Common Units) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Weighted average number of common units – basic | 23,300,000 | 23,300,000 | 23,300,000 |
Weighted average number of common units – diluted | 23,300,000 | 23,300,000 | 23,300,000 |
Antidilutive securities excluded from computation of diluted net income (loss) attributable to common limited partners outstanding units | 2,330,000 | 2,330,000 | 2,330,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Summary of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Proved properties | $ 137,627 | $ 154,954 |
Support equipment and other | 3,188 | 3,188 |
Total gross property, plant and equipment | 140,815 | 158,142 |
Less – accumulated depreciation, depletion and amortization | (131,133) | (133,456) |
Property, plant and equipment, Net, Total | $ 9,682 | $ 24,686 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Asset impairment of oil and gas properties | $ 10,982,000 | $ 41,762,000 |
Non-cash investing activity capital expenditures | 0 | 0 |
Eagle Ford Acquisition | ||
Property Plant And Equipment [Line Items] | ||
Cash on hand to drill | 6,900,000 | |
Eagle Ford Acquisition | Proved Oil and Gas Properties | ||
Property Plant And Equipment [Line Items] | ||
Asset impairment of oil and gas properties | $ 11,000,000 | $ 41,800,000 |
Derivative Instruments (Summary
Derivative Instruments (Summary of Commodity Derivative Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Losses recognized on cash settlement | $ (916) | |
Changes in fair value on open derivative contracts | 535 | $ (217) |
Loss on mark-to-market derivatives | $ (381) | $ 310 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Instrument | Dec. 31, 2018USD ($)Instrument | |
Derivative Instruments Gain Loss [Line Items] | ||
Commitments | ||
Credit Facility | ||
Derivative Instruments Gain Loss [Line Items] | ||
Commitments | $ 0 | |
Maturity date | May 1, 2020 | |
Commodity Derivatives | ||
Derivative Instruments Gain Loss [Line Items] | ||
Number of commodity derivatives | Instrument | 0 | 0 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation [Abstract] | ||
Asset retirement obligation – beginning balance | $ 226 | $ 190 |
Revisions in estimate | 78 | |
Adjustments through disposals and settlements | (105) | |
Accretion expense | 17 | 36 |
Asset retirement obligation – ending balance | $ 216 | $ 226 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Details) - Instrument | Dec. 31, 2019 | Dec. 31, 2018 |
Commodity Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Number of commodity derivatives | 0 | 0 |
Certain Relationships and Rel_2
Certain Relationships and Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Accounts payable | $ 150 | |
Advances to affiliates | $ 486 | |
Atlas Growth Parnters GP, LLC | ||
Related Party Transaction [Line Items] | ||
Percentage of capital contribution | 1.00% | 1.00% |
Payment for management fee | $ 2,300 | $ 2,300 |
ATLS | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 0 | 0 |
Titan | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 100 | 100 |
Advances to affiliates | $ 500 | $ 500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating leases, rental expense, net | $ 200,000 | $ 200,000 | $ 200,000 |
Future minimum rental commitments | 0 | ||
Long-term purchase commitment, amount | 0 | ||
Accrual for environmental loss contingencies | $ 0 | $ 0 |
Cash Distributions - Additional
Cash Distributions - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019$ / perunit | |
Equity [Abstract] | |
Quarterly cash distribution target | 0.175 |
Yearly cash distribution target | 0.70 |
Correction of an Immaterial E_2
Correction of an Immaterial Error - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | $ 1,495 | $ 764 | $ 1,903 | $ 1,899 | $ 2,862 | $ 3,035 | $ 2,679 | $ 1,484 | $ 6,061 | $ 10,060 | $ 8,151 |
Net (loss) income | (15,540) | (45,008) | $ (2,897) | ||||||||
Change from receivable from affiliates | 486 | 486 | |||||||||
Assets | 12,955 | 28,920 | 12,955 | 28,920 | |||||||
Correction of Immaterial Error for Production Periods June 2018 to July 2019 | |||||||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | 6,500 | 10,000 | |||||||||
Net (loss) income | 15,100 | 45,400 | |||||||||
Change from receivable from affiliates | 500 | (1,300) | 500 | ||||||||
Assets | 12,800 | 28,500 | 12,800 | 28,500 | |||||||
Correction of Immaterial Error for Production Periods June 2018 to July 2019 | Restatement Adjustment | |||||||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | (800) | 400 | (400) | ||||||||
Reduction in depletion expense | (300) | ||||||||||
Net (loss) income | $ (500) | (400) | 400 | ||||||||
Assets | (200) | (400) | (200) | (400) | |||||||
Correction of Immaterial Error for Production Periods June 2018 to July 2019 | Previously Reported | |||||||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | 6,100 | 10,400 | |||||||||
Net (loss) income | 15,500 | 45,000 | |||||||||
Assets | $ 13,000 | $ 28,900 | $ 13,000 | $ 28,900 |
Supplemental Oil and Gas Info_3
Supplemental Oil and Gas Information (Unaudited) - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019MMcfe | Dec. 31, 2018MMcfe | Dec. 31, 2017MMcfe | |
Oil And Gas In Process Activities [Line Items] | |||
Maximum scheduled drilling term | 5 years | ||
Estimation of reserves quantities and future net cash flows description | The proved reserves quantities and future net cash flows were estimated using an unweighted 12-month average pricing based on the prices on the first day of each month during the years ended December 31, 2019, 2018 and 2017, including adjustments related to regional price differentials and energy content. | ||
Revisions of previous estimates, negative revisions due to modification in development plans | 21,548 | ||
Revisions of previous estimates, negative revisions due to modification in development plans | 21,095 | ||
Revisions of previous estimates, negative revisions due to production underperforming | 437 | ||
Revisions of previous estimates, extensions discoveries and additions due to addition of proved undeveloped wells | 2,343 | ||
Revisions of previous estimates, positive revisions due to increases in pricing | 720 | 8,585 | |
Revisions of previous estimates, negative revisions due to updated curves on well | 6,589 | ||
Revisions of previous estimates, positive revisions due to production underperforming | 6,062 | 339 | |
Revision of previous estimates, positive revision due to operating expenses | 848 | ||
Revisions of previous estimates, positive revisions due to modification in development plans | 8,949 | ||
Revisions of previous estimates, Negative revisions due to increases in pricing | 1,208 | ||
Revisions of previous estimates, negative revisions due to production underperforming | 844 | ||
Measurement Input, Discount Rate | Gas And Oil Production | |||
Oil And Gas In Process Activities [Line Items] | |||
Percentage of discount factor to measure future cash flows | 0.10 |
Supplemental Oil and Gas Info_4
Supplemental Oil and Gas Information (Unaudited) (Reserve Quantity Information) (Details) | 12 Months Ended | ||||
Dec. 31, 2019MMcfeMMcfMBbls | Dec. 31, 2018MMcfeMMcfMBbls | Dec. 31, 2017MMcfeMMcfMBbls | Dec. 31, 2016MMcfeMMcfMBbls | ||
Reserve Quantities [Line Items] | |||||
Balance | MMcfe | 25,857 | 31,213 | 23,356 | ||
Extensions, discoveries and other additions | MMcfe | [1] | 2,343 | |||
Revisions of previous estimates | MMcfe | [1] | (21,548) | (6,589) | 8,949 | |
Production | MMcfe | (751) | (1,110) | (1,092) | ||
Balance | MMcfe | 3,558 | 25,857 | 31,213 | ||
Proved developed reserves | MMcfe | 3,558 | 4,762 | 6,069 | 6,802 | |
Proved undeveloped reserves | MMcfe | 21,095 | 25,144 | 16,554 | ||
Gas | |||||
Reserve Quantities [Line Items] | |||||
Balance | MMcf | 1,102 | 1,866 | 1,432 | ||
Extensions, discoveries and other additions | MMcf | [1] | 89 | |||
Revisions of previous estimates | MMcf | [1] | (751) | (739) | 548 | |
Production | MMcf | (68) | (114) | (114) | ||
Balance | MMcf | 283 | 1,102 | 1,866 | ||
Proved developed reserves | MMcf | 283 | 292 | 613 | 652 | |
Proved undeveloped reserves | MMcf | 810 | 1,253 | 780 | ||
Oil | |||||
Reserve Quantities [Line Items] | |||||
Balance | 3,867 | 4,475 | 3,387 | ||
Extensions, discoveries and other additions | [1] | 355 | |||
Revisions of previous estimates | [1] | (3,274) | (818) | 1,231 | |
Production | (100) | (145) | (143) | ||
Balance | 493 | 3,867 | 4,475 | ||
Proved developed reserves | 493 | 676 | 788 | 925 | |
Proved undeveloped reserves | 3,191 | 3,687 | 2,462 | ||
NGLs | |||||
Reserve Quantities [Line Items] | |||||
Balance | 259 | 416 | 267 | ||
Extensions, discoveries and other additions | [1] | 21 | |||
Revisions of previous estimates | [1] | (192) | (157) | 169 | |
Production | (14) | (21) | (20) | ||
Balance | 53 | 259 | 416 | ||
Proved developed reserves | 53 | 69 | 121 | 100 | |
Proved undeveloped reserves | 190 | 295 | 167 | ||
[1] | See “Changes in Proved Reserves” section below for additional discussion and analysis of significant components of revisions of previous estimates. |
Supplemental Oil and Gas Info_5
Supplemental Oil and Gas Information (Unaudited) (Schedule of Change in Proved Reserves) (Details) | 12 Months Ended | ||
Dec. 31, 2019$ / MMBTU$ / bbl | Dec. 31, 2018$ / MMBTU$ / bbl | Dec. 31, 2017$ / MMBTU$ / bbl | |
Gas | |||
Reserve Quantities [Line Items] | |||
Unadjusted Prices | $ / MMBTU | 2.58 | 3.10 | 2.98 |
Oil | |||
Reserve Quantities [Line Items] | |||
Unadjusted Prices | 55.69 | 65.56 | 51.34 |
NGLs | |||
Reserve Quantities [Line Items] | |||
Unadjusted Prices | 15.59 | 25.57 | 20.33 |
Supplemental Oil and Gas Info_6
Supplemental Oil and Gas Information (Unaudited) (Schedule of Results Capitalized Costs Related to Oil and Gas Producing Activities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Extractive Industries [Abstract] | ||
Proved properties | $ 137,627 | $ 154,954 |
Support equipment | 29 | 29 |
Natural gas and oil properties | 137,656 | 154,983 |
Accumulated depreciation, depletion and amortization | (130,366) | (132,814) |
Net capitalized costs | $ 7,290 | $ 22,169 |
Supplemental Oil and Gas Info_7
Supplemental Oil and Gas Information (Unaudited) (Schedule of Results of Operations from Oil and Gas Producing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplemental Oil and Gas Information (Unaudited) [Abstract] | ||||
Gas and oil production revenues | $ 6,061 | $ 10,441 | $ 7,841 | |
Production costs | (2,512) | (3,486) | (2,528) | |
Depletion | (3,464) | (5,724) | (3,410) | |
Asset impairment | [1] | (10,982) | (41,762) | |
Results of operations from oil and gas producing activities | (10,897) | (40,531) | $ 1,903 | |
Asset impairment of oil and gas properties | 10,982 | 41,762 | ||
Eagle Ford Acquisition | Proved Oil and Gas Properties | ||||
Supplemental Oil and Gas Information (Unaudited) [Abstract] | ||||
Asset impairment of oil and gas properties | $ 11,000 | $ 41,800 | ||
[1] | For the year ended December 31, 2019 and 2018, we recognized $11.0 million and $41.8 million, respectively, of impairment related to our proved oil and gas properties in the Eagle Ford operating area, which were impaired due to lower forecasted production performance and commodity prices. |
Supplemental Oil and Gas Info_8
Supplemental Oil and Gas Information (Unaudited) (Schedule of Costs Incurred in Oil and Gas Producing Activities) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019Well | Dec. 31, 2018USD ($)Well | Dec. 31, 2017Well | |
Supplemental Oil and Gas Information (Unaudited) [Abstract] | |||
Development costs | $ 6,873 | ||
Total costs incurred in oil & gas producing activities | $ 6,873 | ||
Number of exploratory wells drilled | Well | 0 | 0 | 0 |
Supplemental Oil and Gas Info_9
Supplemental Oil and Gas Information (Unaudited) (Schedule of Standardized Measure of Estimated Discounted Future Net Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Oil and Gas Information (Unaudited) [Abstract] | |||
Future cash inflows | $ 29,634 | $ 271,705 | $ 243,644 |
Future production costs | (18,270) | (88,148) | (73,792) |
Future development costs | (717) | (78,835) | (68,321) |
Future net cash flows | 10,647 | 104,722 | 101,531 |
Less 10% annual discount for estimated timing of cash flows | (2,820) | (53,007) | (61,082) |
Standardized measure of discounted future net cash flows | $ 7,827 | $ 51,715 | $ 40,449 |
Supplemental Oil and Gas Inf_10
Supplemental Oil and Gas Information (Unaudited) (Schedule of Changes in Discounted Future Net Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplemental Oil and Gas Information (Unaudited) [Abstract] | ||||
Balance, beginning of year | $ 51,715 | $ 40,449 | $ 17,381 | |
Sales of oil and gas produced, net of related costs | [1] | (3,549) | (6,955) | (5,403) |
Net changes in estimated future prices and production costs | [1] | (6,555) | 32,438 | 22,401 |
Revisions of previous quantity estimates | [1] | (35,387) | (26,896) | 15,568 |
Development costs incurred | [1] | 6,873 | ||
Changes in future development costs | [1] | (11,236) | ||
Extensions, discoveries, and improved recovery less related costs | [1] | 1,761 | ||
Accretion of discount | [1] | 1,603 | 4,045 | 1,738 |
Balance, end of year | $ 7,827 | $ 51,715 | $ 40,449 | |
[1] | See “Reserve Quantity Information” and “Revisions of Previous Estimates” sections above for additional discussion and analysis of significant changes within the periods presented. |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Antidilutive securities excluded from computation of diluted earnings attributable to common limited partners outstanding units | 2,330,000 | 2,330,000 | 2,330,000 | 2,330,000 | 2,330,000 | 2,330,000 | 2,330,000 | ||||||||||||
All antidilutive securities excluded from computation of diluted earnings attributable to common limited partners outstanding units | For each of the first, second, third and fourth quarters of the year ended December 31, 2019, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive | For each of the first, second, and fourth quarters of the year ended December 31, 2018, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. | |||||||||||||||||
Revenues | $ 1,495 | $ 764 | $ 1,903 | $ 1,899 | $ 2,862 | $ 3,035 | $ 2,679 | $ 1,484 | $ 6,061 | $ 10,060 | $ 8,151 | ||||||||
Net income (loss) attributable to common limited partners and the general partner’s interest | (12,286) | [1] | (1,547) | [1] | (839) | [1] | (868) | [1] | (43,238) | [2] | 173 | [2] | (1,015) | [2] | (928) | [2] | |||
Allocation of net income (loss) attributable to common limited partners and the general partner: | |||||||||||||||||||
Common limited partners’ interest | (12,040) | (1,516) | (823) | (851) | (42,373) | 169 | (995) | (909) | (15,230) | (44,108) | (2,839) | ||||||||
General partner’s interest | $ (246) | $ (31) | $ (16) | $ (17) | $ (865) | $ 4 | $ (20) | $ (19) | $ (310) | $ (900) | $ (58) | ||||||||
Basic | $ (0.50) | $ (0.07) | $ (0.04) | $ (0.04) | $ (1.82) | $ 0.01 | $ (0.04) | $ (0.04) | |||||||||||
Diluted | $ (0.50) | $ (0.07) | $ (0.04) | $ (0.04) | $ (1.82) | $ 0.01 | $ (0.04) | $ (0.04) | |||||||||||
[1] | For each of the first, second, third and fourth quarters of the year ended December 31, 2019, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. | ||||||||||||||||||
[2] | For each of the first, second, and fourth quarters of the year ended December 31, 2018, approximately 2,330,000 common limited partner warrants were excluded from the computation of diluted earnings attributable to common limited partners per unit, because the inclusion of units issuable upon the exercise of the warrants would have been anti-dilutive. |