Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
23. Supplemental Information on Oil and Gas Exploration and Production Activities (Unaudited)
(Continued)
Information with respect to the Company’s estimated discounted future net cash flows related to
its proved oil and natural gas reserves as of December 31, 2014 and 2013 are as follows:
2014
2013
($ in thousands)
Future cash inflows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 814,394 $ 830,287
Future production costs . . . . . . . . . . . . . . . . . . . . . . . . . . .
(12,710)
(6,400)
Future development costs . . . . . . . . . . . . . . . . . . . . . . . . . .
(244,306) (302,278)
Future income tax expense(1) . . . . . . . . . . . . . . . . . . . . . . .
— —
Future net cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
557,378 521,609
10% annual discount for estimated timing of cash flows . . . .
(192,094) (244,976)
Standardized measure of discounted future net cash flows . . . $ 365,284 $ 276,633
(1) There is no future income tax expense as of December 31, 2014, as the tax basis of the
oil and gas properties in the United States and net operating losses attributable to oil and
gas operations exceed the future net revenues.
Information with respect to the Company’s standardized measure of discounted future net cash
flows as of December 31, 2014 and 2013 are as follows:
2014
2013
($ in thousands)
Standardized measure, beginning . . . . . . . . . . . . . . . . . . . . . . $276,633 $ —
Discoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— 276,633
Revisions of previous estimates:
— —
Changes in prices and costs . . . . . . . . . . . . . . . . . . . . . . . .
(36,869)
—
Changes in future development costs . . . . . . . . . . . . . . . . .
49,700
—
Changes in quantities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17,351
—
Accretion of discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27,663
—
Changes in timing and other . . . . . . . . . . . . . . . . . . . . . . . . .
30,806
—
Standardized measure, ending . . . . . . . . . . . . . . . . . . . . . . . . $365,284 $276,633
F-43
