Us ep benchmark_study_2012

US E&P
benchmark study
June 2012

Table of contents
Study overview

1

Industry backdrop and study highlights

3

Capital expenditures

4

Revenues and results of operations

5

Oil reserves

6

Gas reserves

7

Performance measures
Proved reserve acquisition costs, finding and development
costs and reserve replacement costs

9

Production replacement rates

10

Production costs

11

Company statistics

12

Peer groups

24

Ernst & Young Americas oil and gas services

25

Study overview
The US E&P benchmark study is a compilation and analysis of certain
oil and gas reserve disclosure information as reported by publicly
traded companies in their annual reports filed with the United
States (US) Securities and Exchange Commission (SEC). This report
presents the US exploration and production (E&P) results for the fiveyear period from 2007 through 2011 for the largest 50 companies
based on 2011 end-of-year oil and gas reserve estimates. Activity
related to XTO Energy, Inc. (XTO Energy) has also been reflected in
this report as described below.


The companies

• Finding and development costs are calculated as unproved
property acquisition costs, exploration costs, development costs
and identified related asset retirement obligation costs, divided
by extensions and discoveries, revisions and improved recovery
of proved reserves. The calculation excludes the effect of proved
reserves purchased.

The companies included herein account for approximately 98% of
total US oil reserves and approximately 65% of total US gas reserves,
based on January 1, 2012 reserves estimates published by the
Oil & Gas Journal. Thus, the results of these companies are generally
representative of the US E&P industry as a whole. However, it should
be noted that results for these companies and for the E&P industry as
a whole may be significantly different in other regions of the world.
The companies have been classified into three peer groups: integrated
companies (integrateds), large independents and independents.
Integrated companies are those that have oil refining and marketing
activities in addition to exploration and production. Independents do
not have oil refining and marketing activities, but may have midstream
operations in addition to their exploration and production activities.
The independents were classified as “large” if their 2011 worldwide
ending reserves exceeded 1 billion barrels of oil equivalent.
In June 2010, XTO Energy was acquired by Exxon Mobil Corporation
(ExxonMobil). Due to the significance of XTO Energy’s operations,
its 2007 through 2009 capital expenditures, revenues and results
of operations, oil reserves and gas reserves have been included in
this report to provide a more meaningful comparison throughout the
five-year study period. The capital expenditures, revenues and results
of operations, oil reserves and gas reserves reported by ExxonMobil
for 2010 include activity related to the operations acquired from
XTO Energy. XTO Energy’s end-of-year 2009 oil reserves and gas
reserves have been included in 2010 beginning-of-year reserves with
an equal volume included as sales in 2010 to reflect the ExxonMobil
transaction. For purposes of the peer group analysis, XTO Energy is
designated as a large independent.

US E&P benchmark study

The performance measures presented herein were calculated
based on the companies’ oil and gas reserve disclosure information.
Ernst & Young’s methodology for calculating the performance
measures is defined below.
• Proved reserve acquisition costs are calculated as proved property
acquisition costs and identified related asset retirement obligation
costs, divided by proved reserves purchased.

• Reserve replacement costs are calculated as total capital
expenditures divided by extensions and discoveries, revisions,
improved recovery and purchases of proved reserves.
• Production replacement rate (all sources) is calculated as
extensions and discoveries, improved recovery, revisions, purchases
and sales of proved reserves, divided by production.
• Production replacement rate (excluding purchases and sales) is
calculated as extensions and discoveries, improved recovery and
revisions of proved reserves, divided by production.
• Production costs are calculated as production costs, including
production taxes, transportation costs and production-related
general and administrative expenses, divided by production.
Many individual companies calculate and report their own
performance measures, and companies may use different methods
that produce results different from those shown in this report.

1

The SEC Rule

Other

On December 31, 2008, the SEC issued a final rule titled Modernization
of Oil and Gas Reporting (the SEC Rule). The SEC Rule was effective on
January 1, 2010, and was applicable to annual reports for fiscal years
ending on or after December 31, 2009. The intent of the SEC Rule
was to provide investors with a more meaningful and comprehensive
understanding of oil and gas reserves. The SEC Rule also sought to
modernize and update the oil and gas disclosure requirements to align
them with current practices and changes in technology.

The data included herein was obtained from IHS Herold, Inc. and, in
some cases, the individual companies’ published annual reports.

Among other changes, the SEC Rule requires companies to estimate
proved reserves using the 12-month average beginning-of-month
price for the year, rather than year-end prices. The SEC Rule
also limits the booking of proved undeveloped reserves to those
reserves that are scheduled to be developed within five years,
unless specific circumstances justify a longer time. As a result of
the five-year requirement, some reserves previously classified as
proved undeveloped were reclassified in 2009 as unproved reserves,
resulting in the recording of downward revisions. The 2009 – 2011
oil and gas reserve volumes presented herein were determined in
accordance with the SEC Rule; therefore, some comparisons of
2009 – 2011 results to previous years and the five-year average
performance measures are calculated using data presented before
and after the SEC Rule was effective.

Report limitations
Users of this report should keep in mind the following limitations on
the data presented:
• This report excludes government and privately owned companies
and smaller public companies.
• Individual companies did not prepare or review the compiled data
presented in this report.
• Oil and gas companies that follow US generally accepted accounting
principles (GAAP) are allowed to select either successful efforts
accounting or full cost accounting for their oil and gas activities.
Some companies included in this report follow US GAAP, while
others follow International Financial Reporting Standards (IFRS) as
adopted by their applicable country. These variations in standards
can result in different results for some companies.
• Data for all companies may not be comparable because of differing
interpretations or applications of reporting requirements.
• Oil and gas reserve estimates are imprecise and are revised as
additional information about reserves becomes known.

2


The data included herein is based on each year’s original disclosures
made by the companies. Restatements or other adjustments made
to capital expenditures or revenues and results of operations data in
subsequent years have not been incorporated herein. Restatements
or other adjustments made to oil and gas reserve data are included in
the “Other” component of the reserve tables, but these amounts are
not included in the performance measure calculations.
Totals presented may not add due to rounding. All amounts are
reported in US dollars.
The following units of measure are used in this report for gas
reserves: Mcf (thousand cubic feet); Bcf (billion cubic feet) and Tcf
(trillion cubic feet). Natural gas prices are quoted on a MMBTU (million
British Thermal Unit) basis.
Certain amounts in this report are presented on a per barrel of oil
equivalent (BOE) basis. Natural gas volumes are converted to barrels
at a ratio of six Mcf to one barrel of oil. This six Mcf to one barrel
of oil ratio has historically been viewed as being reflective of an
approximate thermal equivalence between the two commodities.
Prior to 2005, oil and natural gas prices were typically closely
linked to this ratio. Since 2005, however, oil and natural gas price
movements have reflected their different supply and demand
fundamentals and thus have not necessarily moved in unison. In
recent years, oil prices have risen sharply while natural gas prices
have remained fairly weak. At some points during the five-year
period, the observed market ratio of oil-to-natural gas prices has been
as high as 25-to-1, implying that oil was more than four times more
costly than an equivalent amount of natural gas (in thermal terms).
However, the volumetric conversion of six Mcf to one barrel of oil
continues to be accepted as industry practice indicative of a longterm outlook on commodity pricing. In spite of this, some individual
companies may use a higher ratio for their internal performance
metrics to more closely reflect market equivalence.

Industry backdrop
and study highlights
With the near-collapse of the global financial system and the
subsequent recession, the oil and gas industry experienced great price
volatility in 2008 and 2009. Oil prices stabilized somewhat in 2010
in the range of $70 to $80 per barrel and trended upward in 2011.
Beginning-of-month West Texas Intermediate spot prices averaged
$79.40 per barrel in 2010 and $95.99 per barrel in 2011. Gas prices
saw slight improvement in 2010, but retreated again in 2011, as the
beginning-of-month Henry Hub spot average for 2011 was $4.12 per
MMBTU compared to $4.39 per MMBTU in 2010.
Highlights for the companies in this report include:
• Total capital expenditures declined 16% in 2011 to
$149.2 billion, due to a decrease in proved and unproved
property acquisition costs.
• Combined exploration development spending increased 38% in
2011, with the independents accounting for the largest portion of
the increase.
• After-tax profits increased from $37.7 billion in 2010 to
$45.6 billion in 2011. The companies saw an increase in both
revenues and all major categories of costs in 2011.
• Strong extensions and discoveries fueled a 9% increase in oil
reserves that grew to 20.3 billion barrels in 2011. This growth led
to an all sources oil production replacement rate of 243% in 2011.
• Gas reserves reached 178.2 Tcf in 2011, representing 4% growth
from 2010. Extensions and discoveries of 26.0 Tcf were partially
offset by downward revisions of 4.2 Tcf in 2011. The all sources
production replacement rate for gas was 147% in 2011.
• Proved reserve acquisition costs were $11.43 per BOE in 2011,
while finding and development costs were $19.38 per BOE;
both measures increased 9% from 2010.


3

US — capital expenditures (millions) (a)
2007
Proved properties acquired

$

23,941.8

2008
$

19,824.7

2009
$

2010

3,943.7

$

42,209.7

2011
$

12,125.4

Unproved properties acquired

10,977.3

32,608.1

9,643.5

59,080.8

30,769.5

Exploration

13,364.3

16,121.4

14,268.8

15,502.2

21,670.0

Development

53,173.9

66,501.4

45,138.7

61,472.5

84,416.9

465.3

994.9

208.6

82.8

180.7

Other
Total

$

101,922.6

$

136,050.5

$

73,203.4

$

178,348.0

$

149,162.4

(a) Includes the 50 largest companies based on 2011 end-of-year oil and gas reserve estimates. Activity related to XTO Energy has also been reflected as described on page 1.

Property acquisition costs were $12.1 billion
(proved) and $30.8 billion (unproved)
in 2011. This acquisition activity was
significantly lower than 2010, which included
several corporate acquisitions (ExxonMobil/
XTO Energy, Apache/Mariner Energy, Inc.
and Denbury/Encore Acquisition Company).
Occidental Petroleum was the leading
purchaser of proved properties in 2011
($3.2 billion) due to acquisitions in South
Texas, California and the Permian and
Williston Basins.
Chevron was a leader in both proved
($1.2 billion) and unproved ($7.4 billion)
property acquisition costs with its acquisition
of Atlas Energy, Inc., along with other asset
acquisitions in the Marcellus and Utica shale
formations.
Marathon Oil posted proved property
acquisition costs of $1.8 billion and unproved
property acquisition costs of $3.3 billion as
a result of several transactions in the Eagle
Ford shale formation.

Three companies increased their combined
exploration and development spending by
more than $2 billion in 2011 — Occidental
Petroleum ($2.7 billion), Hess ($2.2 billion)
and Chesapeake Energy ($2.1 billion). Only
two companies (BP and EnCana) decreased
their combined exploration and development
spending in 2011.

Proved properties acquired
Occidental Petroleum Corporation

$ 3,185.0
1,782.0

Linn Energy, LLC

1,328.3

BP p.l.c.

1,178.0

On a peer group basis, the independents
accounted for the largest portion of the
increase in combined exploration and
development spending. The independents
posted an $11.8 billion (or 51%) increase
in combined spending, while the large
independents increased spending by
$10.9 billion (or 39%) and the integrateds
increased spending by $6.5 billion (or 25%).

Chevron Corporation

1,174.0


Royal Dutch Shell plc(1)

2007

Unproved properties acquired
Chevron Corporation

$ 7,404.0

Chesapeake Energy Corporation

4,736.0

Marathon Oil Corporation

3,271.0

Exxon Mobil Corporation(1)

2,708.0


1,417.0

Exploration
$ 3,147.0


2,260.0

Petrohawk Energy Corporation

2,210.8

Plains Exploration & Production
Company(1)

1,323.7

ConocoPhillips

$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0

1,115.0

Development
2008

2009

2010

2011


$ 8,505.0

Exploration

Unproved properties
acquired
Proved properties
acquired

Chevron Corporation

5,517.0


5,495.0

EOG Resources, Inc.

5,410.4

Devon Energy Corporation

Development

Exploration costs increased 40% from
$15.5 billion in 2010 to $21.7 billion in
2011. Development costs were $84.4 billion
in 2011 compared with $61.5 billion in
2010, a 37% increase.

4

2011 capital expenditures —
leading companies (millions)


Billions

Total capital expenditures were $149.2 billion
in 2011, representing a 16% decrease from
$178.3 billion in 2010. This decline was
driven by lower property acquisition activity
in 2011.

4,130.0

(1)
See company footnotes on page 24.


US — revenues and results of operations (millions) (a)
2007
Revenues

$

2008

139,739.1

$

2009

189,193.7

$

124,181.7

2010
$

147,781.0

2011
$

181,442.1

Production costs (b)

35,028.3

45,699.7

36,900.5

40,155.8

50,880.8

Exploration expense

4,452.3

4,775.2

4,777.6

4,414.2

5,375.2

31,638.6

70,816.8

74,544.8

40,822.6

50,900.3

3,585.4

4,020.0

3,578.2

5,029.0

4,903.2

DD&A (c)
Other expenses (d)
Pre-tax results of operations

$

65,034.5

$

41,444.4

Income taxes
Results of operations

$

23,590.1

63,882.1

$

4,380.6

23,506.4
$

$

57,359.4

$

37,658.4

1,219.1

40,375.7

$

3,161.4

$

69,382.6

$

45,639.8

19,701.0

23,742.7

(a) Includes the 50 largest companies based on 2011 end-of-year oil and gas reserves. Activity related to XTO Energy has also been reflected as described on page 1.
(b) Includes production taxes, transportation costs and production-related general and administrative expenses.
(c) Includes impairments.
(c) Includes asset retirement obligation accretion for companies that separately disclose this expense.

Strong oil prices drove a 23% increase in
revenues in 2011, with revenues increasing
from $147.8 billion in 2010 to $181.4 billion
in 2011.
Production costs climbed 27%, to
$50.9 billion in 2011. The higher cost
environment associated with high oil prices
contributed to a $5.8 billion increase in lease
operating costs in 2011, while the increase in
revenues resulted in a $3.9 billion increase in
production taxes.
Depreciation, depletion and amortization
(DD&A) was $50.9 billion in 2011, compared
with $40.8 billion in 2010, an increase
of 25%. Recurring DD&A charges rose
$6.2 billion, or 16%, in 2011.
Property impairments of $4.9 billion were
recorded in 2011, primarily due to depressed
natural gas prices. The largest impairments
were recorded by Anadarko Petroleum
($1.2 billion), Noble Energy ($757.0 million)
and Berry Petroleum ($625.6 million).

The companies’ plowback percentage was
114% in 2011, a decrease from 166%
in 2010 that was primarily driven by
lower property acquisition activity. The
three-year (2009 – 2011) average for
the plowback percentage was 123%. The
plowback percentage represents total capital
expenditures as a percentage of netback
(revenues less production costs).

2011 revenues and results of operations —
leading companies (millions)
Revenues
BP p.l.c.

$ 19,840.0


19,288.0

Chevron Corporation

18,319.0

ConocoPhillips

15,241.0


10,192.0



Chevron Corporation

$200

$ 6,491.0


4,968.0

$150
Billions

The companies saw an increase in revenues
and increases in all major cost categories
in 2011 and posted after-tax profits of
$45.6 billion in 2011, an increase of 21%
over 2010.

BP p.l.c.(3)

4,191.0

$100


3,574.0

ConocoPhillips

3,444.0

$50

(1) (3) See company footnotes on page 24.

$0
2007

2008

2009

Revenues

2010

2011


Plowback percentage
200%
150%
100%
50%
0%
2007

2008


2009

2010

2011

5

Oil reserves
US — proved oil reserves (a) (million barrels) (b)
2007
Beginning of year

2008

2009

2010 (c)

2011

16,259.5

16,524.3

15,904.2

16,800.9

18,578.2

612.4

731.7

915.6

1,521.4

2,409.5

Additions:
Extensions and discoveries
Improved recovery

326.7

Revisions

487.9

Production
Purchases

402.0

303.3

1,142.6

814.4

582.8

(1,184.7)

(1,364.2)

475.0

Other (d)

303.9
(160.9)

(1,365.9)

195.9

(443.7)

Sales
End of year

394.7

(1,193.3)

172.6

(1,253.8)

(168.9)

(0.0)

1,135.1
(734.8)

549.0

3.1

5.2

15,904.2

16,524.3

16,800.9

18,578.2

(1,403.5)
339.9
(226.3)
(274.1)
20,310.0

(a) Includes condensate and natural gas liquids.
(b) Includes the 50 largest companies based on 2011 end-of-year oil and gas reserves. Activity related to XTO Energy has also been reflected as described on page 1.
(c) Beginning-of-year reserves for 2010 include 387.6 million barrels, which represent XTO Energy’s end-of-year 2009 oil reserves. Sales for 2010 include 387.6 million barrels to
reflect the sale of XTO Energy’s reserves to ExxonMobil.
(d) Includes transfers, reclassifications and other.

Extensions and discoveries were 2.4 billion
barrels in 2011, the highest level of the fiveyear period and 58% higher than the 2010
level of 1.5 billion barrels. EOG Resources
recorded the largest extensions and discoveries
for the second year in a row (241.7 million
barrels in 2010 and 267.8 million barrels in
2011) as the company continued its efforts
to develop its oil and condensate and liquidsrich natural gas properties.
Positive revisions of 582.8 million barrels
were recorded in 2011, primarily due to the
increase in prices.
Oil production rose 3% in 2011 to
1,403.5 million barrels. The largest
production increases were reported by
EOG Resources (18.5 million barrels) and
Chesapeake Energy (13.3 million barrels).
The largest declines in production in 2011
were experienced by integrateds — BP,
ExxonMobil, Royal Dutch Shell and Chevron.

Purchases of oil reserves were 339.9 million
barrels in 2011. Marathon Oil (89.0 million
barrels) and Occidental Petroleum (80.0
million barrels) were the leading purchasers
for their previously discussed acquisitions.
Sales of oil reserves were 226.3 million barrels
in 2011. SandRidge Energy reported the largest
sales at 43.3 million barrels as it sold properties
in the Permian Basin and New Mexico.
The growth in oil reserves over the five-year
period has been driven by the independents
and large independents. From 2007 to 2011,
the independents’ and large independents’
oil reserves have grown 92% and 37%,
respectively. The integrateds’ oil reserves
have remained essentially flat.
End-of-year oil reserves
24
20
Billion barrels

End-of-year oil reserves increased for the third
consecutive year and grew from 18.6 billion
barrels in 2010 to 20.3 billion barrels in 2011.
While not reported separately, the largest
portion of the increased reserves presumably
came from tight oil formations.

16
12
8
4
0
2007

2008

Integrateds
Large independents

6


2009

2010

Independents

2011

2011 oil reserves — leading companies
(million barrels)
Ending reserves
BP p.l.c.

2,858.0

ConocoPhillips

2,009.0


2,008.0


1,751.0

Chevron Corporation

1,311.0

Production
Chevron Corporation

170.0

BP p.l.c.

162.0

ConocoPhillips

139.0


126.0


109.0

(1) See company footnotes on page 24.

Gas reserves
US — proved gas reserves (Bcf) (a)
2007
Beginning of year

2008

2009

2010 (b)

2011

126,746.6

143,267.7

147,939.8

154,383.6

172,146.3

15,112.8

18,721.9

27,041.3

27,190.5

25,992.4

722.7

1,338.2

Additions:
Extensions and discoveries
Improved recovery
Revisions
Production
Purchases
Sales

957.5

(7,031.9)

(8,876.1)

(11,135.5)

(10,324.6)

(11,772.8)

842.8

995.6
(11,857.0)

(4,177.7)
(12,940.0)

8,620.0

5,369.2

1,223.9

17,412.7

4,326.3

(3,518.8)

(2,643.5)

(2,294.8)

(17,384.8)

(7,984.8)

Other (c)
End of year

1,876.4

5,674.2

0.0

(484.4)

143,267.7

399.7

67.5

154,383.6

147,939.8

172,146.3

(1.6)
178,203.7

(a) Includes the 50 largest companies based on 2011 end-of-year oil and gas reserves. Activity related to XTO Energy has also been reflected as described on page 1.
(b) Beginning-of-year reserves for 2010 include 12,501.7 Bcf, which represent XTO Energy’s end-of-year 2009 gas reserves. Sales for 2010 include 12,501.7 Bcf to reflect the sale
of XTO Energy’s reserves to ExxonMobil.
(c) Includes transfers, reclassifications and other.

Extensions and discoveries were strong at
26.0 Tcf, but decreased 4% from 27.2 Tcf
in 2010. For the third consecutive year,
Chesapeake Energy recorded the largest
extensions and discoveries (4.2 Tcf in 2011)
as a result of its active drilling program.
A decline in prices led to downward revisions
of 4.2 Tcf being recorded in 2011.
Gas production was 12.9 Tcf in 2011
compared with 11.9 Tcf in 2010,
representing a 9% increase. ExxonMobil
accounted for 47% of the total increase as
additional unconventional gas volumes led to
a 497.0 Bcf increase in its production. Several
other integrateds saw the largest declines
in gas production in 2011 — BP, Royal Dutch
Shell and ConocoPhillips had production
declines of 14%, 16% and 7%, respectively.
Purchases of gas reserves were 4.3 Tcf, with
Chevron (1.2 Tcf) and Occidental Petroleum
(728.0 Bcf) as the top purchasers with their
previously discussed acquisitions.

Sales of gas reserves were 8.0 Tcf in 2011.
Chesapeake Energy accounted for 2.8 Tcf of
the sales activity, primarily due to the sale of
its Fayetteville shale assets.
All three peer groups have seen growth in
their gas reserves over the five-year period.
The integrateds’ gas reserves grew 20%
while the large independents’ increased 5% —
these results were significantly impacted
by ExxonMobil’s acquisition of XTO Energy
in 2010. The independents’ have benefited
most from the uncoventional gas boom as
their gas reserves increased 57% over the
five-year period.

2011 gas reserves — leading companies
(Bcf)
Ending reserves

26,366.0


15,515.0

BP p.l.c.

13,552.0

ConocoPhillips

10,148.0


9,507.0

Production

1,559.0


1,004.0
852.0
740.0

BP p.l.c.

200

Anadarko Petroleum Corporation

End-of-year gas reserves

737.0

(1)

150
Tcf

Gas reserves increased 4% in 2011, rising
from 172.1 Tcf in 2010 to 178.2 Tcf in
2011. As in the case of oil reserves, the
largest portion of the increase in gas reserves
was presumably from unconventional shale
gas or tight gas formations.

100
50
0
2007

2008

Integrateds

2009

2010

2011

Independents

Large independents


7

Proved reserve acquisition costs, finding and development costs
and reserve replacement costs
US — proved reserve acquisition costs (PRAC), finding and development costs (FDC) and reserve replacement
costs (RRC) (a)
$ per BOE
2007
PRAC

2008

2009

2010

2011

3-year

5-year

$ 12.53

$ 16.55

$ 9.86

$ 10.46

$ 11.43

$ 10.60

$ 11.86

FDC

15.44

54.47

12.88

17.78

19.38

17.03

19.66

RRC

14.64

40.83

12.67

15.25

18.34

15.65

17.79

(a) Includes the 50 largest companies based on 2011 end-of-year oil and gas reserve estimates. Activity
related to XTO Energy has also been reflected as described on page 1.

PRAC increased 9% from $10.46 per BOE in 2010 to
$11.43 per BOE in 2011. The top three spenders for
proved properties in 2011 posted above-average PRAC.
Occidental Petroleum, Marathon Oil and Linn Energy
had 2011 PRAC of $15.82 per BOE, $16.37 per BOE
and $13.77 per BOE, respectively. These companies
made purchases that included significant volumes of oil,
whereas purchasers that primarily bought gas reserves
posted below-average PRAC for the year.
FDC rose from $17.78 per BOE in 2010 to $19.38
per BOE in 2011, reflecting the higher cost of finding
and developing reserves in the current economic
environment. Spending associated with FDC was
essentially flat in 2011; however, total reserve additions
in 2011 were lower than in prior year. There was a 20%
increase in oil reserve additions in 2011, but this was
offset by a 23% decrease in gas reserve additions. Gas
extensions and discoveries decreased and negative
revisions were recorded in 2011.

Three-year (2009 – 2011) PRAC, FDC and RRC* —
leading companies ($ per BOE)
PRAC**
EOG Resources, Inc.

$ 4.82

EnCana Corporation

5.35

Plains Exploration & Production Company(1)

5.75

Forest Oil Corporation

5.78

Chevron Corporation

5.78

FDC
Range Resources Corporation

$ 5.20

Southwestern Energy Company

6.31

Rosetta Resources Inc.

6.35

EQT Corporation

6.58

Cabot Oil & Gas Corporation

7.78

RRC

$ 5.23
6.31


6.47

EQT Corporation

6.77


RRC were $18.34 per BOE in 2011 compared with
$15.25 per BOE in 2010.


7.78

* Based on companies with results for each year of the
three-year period.
** Based on companies with proved acquisition costs of at least
$50 million for the three-year period.
(1)


9

Oil
US — oil production replacement rates (a)
2007
All sources
Excluding purchases and sales

2008

2009

2010

2011

3-year

5-year

122%

1%

166%

230%

243%

213%

158%

120%

(11)%

164%

200%

235%

200%

147%

(a) Includes the 50 largest companies based on 2011 end-of-year oil and gas reserve estimates. Activity related to XTO Energy has also been
reflected as described on page 1.

Oil production replacement rates were strong
in 2011 at 243% for all sources and 235%
excluding purchases and sales. The increases
in rates from 2010 to 2011 were primarily
attributable to a 58% increase in extensions and
discoveries in 2011.
A combination of strong prices and everimproving technology has turned the growth
prospects for the US oil industry around over
the last few years. Most notable has been the
application of shale gas technology to shale oil
and/or tight oil resources.

2011 oil production replacement rates
by peer group
Excluding
purchases
and sales
All sources
Integrateds

113%

119%

Large
independents

326%

294%

Independents

460%

454%

Three-year (2009 – 2011) oil production
replacement rates — leading companies*
All sources

1,225%


1,016%

SandRidge Energy, Inc.

1,012%

QEP Resources, Inc.

894%

El Paso Corporation(1)

876%


1,226%


1,160%

QEP Resources, Inc.

900%


886%


882%

* Based on companies with at least 5 million barrels
of production for the three-year period and
companies that had results for each year of the
three-year period.
(1)

10


Gas
US — gas production replacement rates (a)
2007
All sources

2008

2009

2010

2011

3-year

5-year

260%

146%

151%

249%

147%

181%

189%

211%

122%

160%

249%

175%

194%

183%


Gas production replacement rates declined in
2011, but were still relatively strong at 147%
for all sources and 175% excluding purchases
and sales.
The decline in 2011 in the excluding and
purchases rate was primarily due to a 4%
decrease in extensions and discoveries,
combined with the recording of downward
revisions of 4.2 Tcf due to prices. Net sales
of 3.7 Tcf in 2011 further impacted the all
sources rate.
Continental Resources, whose business
strategy is primarily focused on crude oil,
posted the highest three-year (2009-2011)
all sources gas production replacement rate.
The company has been actively drilling in

the Bakken field in North Dakota and the
Anadarko Woodford play in Oklahoma. Its
high production replacement rate was driven
by growth in its associated gas reserves and
by the fact that the company has historically
produced a relatively low amount of gas.
2011 gas production replacement rates
by peer group

All sources

Excluding
purchases
and sales

Integrateds

139%

115%

Large
independents

116%

Independents

190%

Three-year (2009 – 2011) gas production
replacement rates — leading companies*
All sources
Continental Resources, Inc.

1,043%

EV Energy Partners, L.P.

932%

Talisman Energy Inc.

883%

CONSOL Energy Inc.

648%

Concho Resources Inc.

647%


1,041%


877%

175%


711%

Swift Energy Company

635%

230%

EQT Corporation

602%

* Based on companies that had results for each year of
the three-year period.

Production costs
US — production costs ($ per BOE) (a)
2007

2008

2009

2010

2011

3-year

5-year

$12.02

$15.03

$11.09

$12.02

$14.29

$12.51

$12.89


Production costs rose 19% in 2011,
increasing from $12.02 per BOE in 2010 to
$14.29 per BOE in 2011. Higher revenues
led to a $3.9 billion increase in production
taxes in 2011, while lease operating costs
rose 20%. The mix of oil vs. gas production
remained relatively constant, suggesting
the increase in lease operating costs was
primarily driven by a higher cost environment
typically seen when commodity prices (in this
case, oil) rise.

On a peer group basis, the integrateds
experienced the largest increase in costs —
their production costs per BOE rose 34% in
2011, compared with a 10% increase for the
large independents and an 8% increase for
the independents.

Three-year (2009 – 011) production costs —
2
leading companies ($ per BOE)
EQT Corporation

$2.84
5.50

EnCana Corporation

5.64

Comstock Resources, Inc.

5.85




5.87

11

Company statistics
US — capital expenditures for the latest fiscal year
Millions
Proved
properties

2,970.0

$ —

2,832.0

—

3,734.0

Berry Petroleum Company

149.2

6.6

0.6

544.1

—

700.5

Chevron Corporation
Cimarex Energy Co.

666.0

$

Total capital
expenditures

418.0


$

Other

116.0

Chaparral Energy, Inc.

610.0

Development

368.0

Bill Barrett Corporation

$

Exploration

Apache Corporation

BP p.l.c.

$ —

Unproved
properties

$

4,246.0

164.8

183.4

20.8

607.7

12.1

988.8

1,178.0

418.0

566.0

3,016.0

—

5,178.0

—

71.1

53.5

763.6

—

888.3

1.0

15.8

57.0

250.2

—

324.0

48.0

4,736.0

2,260.0

5,495.0

3.0

12,542.0

1,174.0

7,404.0

506.0

5,517.0

—

14,601.0

23.1

168.2

82.5

1,351.6

63.2

1,688.7


219.4

255.7

83.2

496.5

—

1,054.8


163.7

361.3

562.7

744.5

—

1,832.1

10.0

578.0

1,115.0

3,132.0

—

4,835.0

6.7

58.7

131.4

463.4

—

660.2

65.3

183.2

734.8

1,178.1

—

2,161.5

ConocoPhillips
CONSOL Energy Inc.
Denbury Resources Inc.

86.5

17.9

31.5

1,144.2

—

1,280.0


34.0

851.0

272.0

4,130.0

—

5,287.0

EnCana Corporation
Energen Corporation
EOG Resources, Inc.
EQT Corporation

—

45.0

858.0

706.0

25.0

1,634.0

52.0

53.0

181.0

2,242.0

—

2,528.0

215.0

91.9

190.9

623.8

—

1,121.5

4.2

295.2

311.4

5,410.4

—

6,021.1

108.7

41.1

2.3

928.3

—

1,080.4


408.6

43.9

6.1

78.0

—

536.7

EXCO Resources, Inc.

136.3

291.5

262.1

593.3

3.8

1,287.1


259.0

2,708.0

484.0

8,505.0

—

11,956.0

—

204.5

286.4

417.5

—

908.4


12


Proved
properties
Hess Corporation

$

525.0

$

Total capital
expenditures

2,951.0

$ —

188.4

0.1

639.4

2.4

2,158.6

128.0

11.0

159.0

—

310.0

3,271.0

782.0

889.0

—

6,724.0

28.8

Newfield Exploration Company

$

Other

1,782.0

National Fuel Gas Company

992.0

Development

12.0

Loews Corporation

$

Exploration

1,328.3

Linn Energy, LLC

6.0

Unproved
properties

$

4,474.0

20.0

62.7

519.3

12.1

642.9

72.0


361.0

980.0

795.0

—

2,208.0

392.0

Noble Energy, Inc.

942.0

241.0

1,511.0

—

3,086.0

3,185.0

1,311.0

400.0

4,100.0

—

8,996.0


76.8

708.5

2,210.8

173.8

—

3,169.9

Petroleum Development Corporation

79.6

95.1

5.5

301.0

—

481.1

Pioneer Natural Resources Company

7.6

124.3

560.0

1,470.4

—

2,162.3


9.2

52.1

1,323.7

725.7

—

2,110.7

0.1

48.0

36.5

1,267.8

—

1,352.4


QEP Resources, Inc.

—

220.6

308.3

1,060.4

24.1

1,613.4


—

10.6

98.8

369.9

—

479.3


—

1,417.0

3,147.0

3,046.0

—

7,610.0


58.2

320.4

98.8

1,296.9

—

1,774.3

—

55.2

177.5

1,320.6

—

1,553.3

0.0

262.9

63.4

1,633.8

—

1,960.1

—

52.8

—

540.7

—

593.5

SM Energy Company
Ultra Petroleum Corporation

208.0

51.0

14.0

1,427.0

35.0

1,735.0

—

92.0

49.0

1,372.8

—

1,513.8

4.3

191.5

400.8

1,245.2

—

1,841.8

WPX Energy, Inc.

Whiting Petroleum Corporation

—

45.0

31.0

1,461.0

—

1,537.0

All companies

$ 12,125.4

$ 30,769.5

$ 21,670.0

$ 84,416.9

$ 180.7

$ 149,162.4

Integrateds

$

2,627.0

$ 13,517.0

$

$ 26,167.0

$ —

$

Large independents

6,080.8

12,360.5

6,105.4

32,476.7

38.0

57,061.4

Independents

3,417.6

4,892.0

9,221.6

25,773.1

142.7

43,447.0

6,343.0

48,654.0

(1)


13

US — revenues and results of operations for the latest fiscal year (a)
Millions

Revenues (a)
Anadarko Petroleum Corporation(2)
Apache Corporation

$

9,430.0

Production
costs (b)
$

Exploration
expense

2,697.0

$

688.0

DD&A (c)
$

4,418.0

Other
(income)
expense (d)
$

—

Income taxes
$

590.2

$

1,036.8

6,103.0

1,486.0

—

1,634.0

97.0


884.7

271.1

5.3

839.4

—

(88.8)

(142.4)


766.5

187.5

3.6

406.0

—

61.8

107.5

19,840.0

5,256.0

1,065.0

2,488.0

4,688.0

2,152.0

4,191.0

922.5

208.3

36.4

343.1

—

160.4

174.2

BP p.l.c. (3)

1,025.0

Results of
operations
1,861.0

537.0

155.7

—

146.1

—

108.3

126.8

6,024.0

1,265.0

—

1,632.0

—

1,220.0

1,907.0

Chevron Corporation

18,319.0

4,265.0

207.0

3,500.0

128.0

3,728.0

6,491.0

Cimarex Energy Co.

1,703.5

435.3

—

367.5

11.5

329.2

560.0

434.4

78.7

10.1

351.6

—


ConocoPhillips
CONSOL Energy Inc.

(1.4)

(4.7)

1,716.6

308.0

11.8

428.8

3.0

369.5

595.5

15,241.0

6,591.0

404.0

2,654.0

226.0

1,922.0

3,444.0

818.7

395.2

—

206.8

—

86.7

130.0


1,647.4

283.0

27.9

492.8

—

321.4

522.2


2,321.6

645.8

—

393.5

26.0

477.4

778.9
1,764.0


5,418.0

1,414.0

—

1,201.0

34.0

1,005.0


1,594.0

389.0

—

590.0

—

222.0

393.0

EnCana Corporation

3,294.0

641.0

—

1,922.0

—

265.0

466.0

Energen Corporation

944.9

257.0

13.1

240.2

6.8

154.2

273.5

EOG Resources, Inc.

5,847.3

1,518.0

178.7

2,587.1

—

569.2

994.3

EQT Corporation

791.3

80.9

4.9

257.1

—

174.8

273.5


350.3

85.7

12.1

85.8

3.9

0.6

162.2


973.9

195.5

—

596.2

3.7

—

178.6

19,288.0

6,782.0

278.0

4,815.0

—

2,445.0

4,968.0

703.5

153.5

—

213.9

6.0

89.1

241.0


14


Revenues (a)
Hess Corporation

$

Linn Energy, LLC

3,371.0

Production
costs (b)
$

850.0

Exploration
expense
$

475.0

1,612.0

497.6


1,021.0

1,742.0


—

$

2.4

245.0

3,167.0


341.0

390.0

Loews Corporation

DD&A (c)
816.0

Other
(income)
expense (d)
$

320.1

—
(1.0)

Results of
operations

Income taxes
$

473.0
—

$

757.0
949.5

—

—

53.5

91.5

378.0

1,471.0

—

104.0

193.0

85.4

—

143.4

3.7

110.1

155.0

606.0

—

621.0

—

191.0

324.0

Noble Energy, Inc.

2,124.0

453.0

116.0

1,489.0

—

24.0

42.0


9,933.0

2,905.0

200.0

1,754.0

584.0

1,419.0

3,071.0


2,143.5

319.3

—

823.8

2.1

356.7

641.6


350.2

77.6

6.3

153.6

—

35.5

77.2


2,686.8

600.7

121.3

961.8

6.8

299.9

696.2


2,135.9

623.4

25.8

762.2

(28.8)

277.9

475.3

QEP Resources, Inc.

2,213.2

433.3

10.5

925.6

—

300.4

543.4


1,213.4

261.4

81.4

459.6

—

186.7

224.3

—


427.5

69.3

—

123.2


10,192.0

2,648.0

753.0

2,638.0

(900.0)

83.9

151.1

1,479.0

3,574.0


1,226.8

368.9

—

326.6

—

(20.1)

551.4

SM Energy Company

1,348.8

290.1

53.5

737.5

—

97.6

170.1


2,100.5

469.2

—

666.1

—

376.0

589.2


602.3

157.3

—

218.4

4.6

83.1

139.0


633.0

154.0

29.0

352.0

—

38.0

60.0
311.4


1,101.8

269.6

—

346.4

—

174.4


1,893.8

444.7

45.9

507.0

—

331.5

564.7

WPX Energy, Inc.

2,421.0

1,142.0

131.0

1,474.0

(119.0)

(205.0)

All companies

$ 181,442.1

$ 50,880.8

$

5,375.2

$ 50,900.3

$

4,903.2

$ 23,742.7

$ 45,639.8

Integrateds

$

$

$

(2.0)

86,251.0

$ 26,392.0

3,182.0

$ 16,911.0

4,142.0

$ 12,199.0

$ 23,425.0

Large independents

54,660.1

14,154.8

1,711.0

19,421.9

721.8

6,559.3

12,091.3

Independents

40,531.0

10,334.0

482.2

14,567.5

39.4

4,984.4

10,123.5

(a) Amounts are determined from the results of operations table if this disclosure is provided; otherwise, amounts are determined from the income statement.
(b) Includes production taxes, transportation cost and production-related general and administrative expenses.
(c) Includes impairments.
(d) Includes asset retirement obligations accretion for those companies that separately disclose this expense.


15

US — oil reserves for the latest fiscal year (a)
Million barrels

Beginning

Extensions
and
discoveries

Improved
recovery

Revisions

Purchases

Sales

(74.0)

—

(18.0)

—

897.0

(51.7)

5.7

(1.4)

—

794.0

(4.1)

(9.0)

13.2

—

—

185.9

4.7

(1.5)

8.0

—

—

30.6

27.0

2,858.0


805.0

72.0

—

Apache Corporation

759.0

89.6

—

(7.2)


166.2

19.6

—

13.0

6.4

—

BP p.l.c.
Chevron Corporation
Cimarex Energy Co.
ConocoPhillips
CONSOL Energy Inc.

2,919.0

1.0

97.0

9.5

13.6

—

93.4

6.4

1.1

112.0

Production

Other (b)

Ending

(162.0)

10.0

(34.0)

—

(0.1)

(1.4)

—

(1.1)

—

20.5

6.7

(5.0)

0.2

(2.4)

—

100.4

273.4

254.6

—

51.8

(31.7)

1.2

(3.8)

—

545.5

1,275.0

140.0

6.0

63.0

(170.0)

2.0

(5.0)

—

1,311.0

105.0

44.3

—

4.8

(16.0)

1.7

(1.6)

—

138.1

4.2

9.8

—

0.0

(0.8)

18.9

211.4

51.5

—

(10.0)

(14.7)

6.6

1,934.0

89.0

17.0

115.0

—

—

—

—
28.6
(1.9)

(139.0)

(6.6)
(8.0)

—

32.1

—

238.3

—

2,009.0

—

—

—

—

(16.5)

1.7

—

—

326.1

(22.2)

0.3

—

—

357.7

(50.0)

2.0

—

—

693.0

—

1.0

—


224.8

87.5

—


338.3

42.9

0.3


597.0

138.0

—

6.0


118.4

97.7

—

(0.8)

(7.6)

0.0

(9.1)

—

198.5

38.2

5.4

—

(0.7)

(3.5)

0.1

(1.3)

—

38.2

—

183.5

—

721.9

—

2.9

(0.8)

—

56.0

0.0

—

6.4

EnCana Corporation
Energen Corporation

143.9

34.2

—

(3.7)

(8.5)

17.6

EOG Resources, Inc.

505.9

267.8

—

14.8

(52.4)

—

2.3

—

—

0.8

(0.2)

0.1

40.4

0.9

—

0.6

(2.0)

16.9

7.4

0.9

—

(1.2)

(0.7)

—

EQT Corporation

16

2,303.0

55.0

—

53.0

63.7

26.1

—

(4.8)


—
(14.3)
—

(126.0)

2.0

(5.0)

(5.6)

—

(3.3)

(274.0)
—

2,008.0
76.0

Beginning

Extensions
and
discoveries

Improved
recovery

Revisions

Production

Purchases

Sales

Other (b)

Ending

Hess Corporation

304.0

70.0

—

33.0

(34.0)

—

—

—

373.0

Linn Energy, LLC

227.3

34.9

—

(8.3)

(11.7)

40.3

—

—

282.5

59.2

3.6

—

173.0

27.0

1.0

Loews Corporation
Noble Energy, Inc.

45.2

0.8

—

170.0

78.0

—

225.0

43.0

—

1,697.0

9.0

145.0

(7.5)
16.0
1.6

(3.0)

0.2

—

—

52.4

(27.0)

89.0

—

—

279.0

(2.9)

—

(1.4)

—

43.3

(13.0)

7.0

(5.0)

—

220.0

(5.0)

(19.0)

—

—

—

244.0

(71.0)

(109.0)

80.0

—

—

1,751.0
114.8

(17.0)


46.9

72.4

—

4.1

(7.6)

3.8

(4.8)

—


33.9

22.7

—

1.3

(2.8)

2.7

(0.5)

—

57.2


544.9

110.8

1.4

3.1

(23.0)

3.7

—

640.8


228.0

36.4

—

14.4

(19.1)

1.4

(11.5)

(0.1)

249.5

69.6

40.0

—

41.1

(6.5)

0.0

(0.2)

0.0

144.1

146.0

31.5

—

25.1

(7.5)

—

(21.0)

—

174.0

31.7

47.4

—

12.0

(4.5)

—

—

86.6

43.0

(77.0)

—

(7.0)

—

838.0

(9.3)

(11.8)

1.5

(43.3)

—

244.8

14.7

(11.6)

—

(9.3)

0.0

99.2

QEP Resources, Inc.

843.0

5.0

31.0


252.1

55.6

—

57.4

44.7

3.3

SM Energy Company
WPX Energy, Inc.

—

0.0

1.2

0.0

—

(0.1)

(0.1)

—

0.0

—

1.0

62.3

10.3

—

(5.4)

(5.2)

—

(5.3)

—

56.8

3.2

13.7

0.3

31.7

4.6

—

—
(1.8)

254.3

44.7

—

20.2

(0.5)

0.6

—

—

17.3

(1.4)

—

—

—

33.1

(20.4)

0.2

—

297.8

120.1

49.3

—

24.2

(12.8)

18,578.2

2,409.5

303.3

582.8

(1,403.5)

Integrateds

9,578.0

360.0

151.0

334.0

(708.0)

15.0

Large independents

5,621.6

1,030.9

147.7

119.8

(441.8)

182.3

(38.8)

Independents

3,378.6

1,018.6

4.6

129.0

(253.7)

142.7

(128.5)

All companies

0.3

(1.2)

339.9

—

—

181.1

(226.3)

(274.1)

20,310.0

(59.0)

(274.0)

9,397.0

—
(0.1)

6,621.7
4,291.2

(a) Includes condensate and natural gas liquids.
(b) Includes transfers, reclassifications and other.
(1)


17

US — gas reserves for the latest fiscal year
Bcf

Beginning

Extensions
and
discoveries

Improved
recovery


8,117.0

614.0

—

Apache Corporation

3,273.0

169.5

—

630.2

66.0

—

1,040.4

172.7

—

13,743.0

219.0

2,644.2

628.5

335.2

40.9

15,455.0
2,472.0

BP p.l.c.
Chevron Corporation

Revisions

Production

Purchases

(852.0)

—

(64.0)

—

8,365.0

(7.7)

(315.6)

67.6

(210.5)

—

2,976.2

(146.3)

550.0

Sales

Other (a)

Ending

(23.9)

8.4

—

—

534.3

15.6

(97.9)

50.2

—

—

1,181.1

597.0

—

(737.0)

93.0

(363.0)

—

13,552.0

—

22.0

(178.8)

—

(205.9)

—

2,909.9

—

(12.9)

(21.6)

0.8

(7.1)

—

335.3

4,156.0

—

(361.0)

(1,004.0)

23.0

(2,754.0)

—

15,515.0

287.0

—

217.0

(466.0)

1,231.0

(95.0)

—

3,646.0

Cimarex Energy Co.

1,254.2

321.4

—

(36.0)

(120.1)

13.5


1,025.6

169.2

—

(36.2)

(90.6)

50.6

672.2

209.8

—

36.0

(53.7)

35.7

10,479.0

174.0

6.0

201.0

(708.0)

3,731.6

517.2

—

(83.8)

(153.5)


839.6

447.1

—

(158.2)

(36.7)

2.1


357.9

52.3

—

(13.6)

(10.8)

239.3

9,065.0

1,410.0

—

(244.0)

(740.0)

16.0

—

32.0

(248.0)

—

(153.0)

—

2,701.0

(685.0)

23.0

(927.0)

—

6,511.0

ConocoPhillips
CONSOL Energy Inc.


2,551.0

519.0

—

EnCana Corporation

7,183.0

1,121.0

—

(204.0)

(216.5)

—

1,216.4

—

1,118.6

(10.6)

—

889.3

7.0

(11.0)

—

10,148.0

—

(531.4)

—

3,480.0

—

—

1,093.8

—

—

625.2

—

9,507.0

—

Energen Corporation

954.4

68.2

—

(12.8)

(71.7)

19.4

—

957.4

EOG Resources, Inc.

6,491.5

634.6

—

(344.0)

(415.7)

3.0

(323.6)

—

6,045.8

EQT Corporation

5,205.7

694.2

—

(393.1)

(197.6)

39.4

(1.2)

—

5,347.4


18

—

575.2

6.4

—

(20.2)

(29.2)

277.6

(1.0)

—

808.7

1,455.0

195.6

—

(237.7)

(178.3)

62.5

(5.6)

—

1,291.5

26,111.0

1,779.0

—

(235.0)

(1,559.0)

303.0

(33.0)

—

26,366.0

1,433.7

144.1

—

(91.7)

(88.5)

—

(1.1)

—

1,396.5


Beginning

Extensions
and
discoveries

Improved
recovery

Production

Purchases

Hess Corporation

280.0

85.0

—

36.0

(42.0)

1.0

—

—

360.0

Linn Energy, LLC

1,233.0

240.0

—

(71.0)

(64.0)

337.0

—

—

1,675.0

(107.0)

Loews Corporation

945.0

26.0

—


745.0

109.0

—


Revisions

18.0

Sales

Other (a)

Ending

(45.0)

—

—

—

819.0

(119.0)

119.0

—

—

872.0

428.4

249.4

—

26.4

(50.5)

44.8

(23.6)

—

674.9


2,492.0

276.0

—

(175.0)

(182.0)

9.0

(91.0)

—

2,329.0

Noble Energy, Inc.

1,626.0

326.0

—

(241.0)

(141.0)

406.0

—

—

1,976.0


3,034.0

35.0

222.0

(369.0)

(285.0)

728.0

—


3,110.1

1,326.1

—

(800.3)

(311.2)

42.7


657.3

176.7

—

(161.7)

(30.9)

32.8


2,635.7

269.7

—

(248.4)

(143.2)

4.6


1,219.4

233.5

—

(64.1)

(125.8)

17.5

QEP Resources, Inc.

2,612.9

641.9

—

(270.1)

(236.4)

1.9

(0.8)

—

2,749.4


3,566.5

1,304.3

—

(157.0)

—

(777.8)

—

4,009.7

73.6

—

3,365.0

(12.2)

—

3,355.1

(2.1)

—

672.1

—

2,518.4

—
(229.5)

(1.5)

1,049.4


289.0

210.0

—

61.0

(33.0)

—

(81.0)

—

446.0


2,745.0

694.0

3.0

399.0

(368.0)

—

(214.0)

—

3,259.0


1,762.7

299.8

—

(164.8)

(69.3)

2.9

(476.2)

—

1,355.1

640.0

223.5

14.8

(76.7)

(100.3)

—

(37.3)

0.0

664.0

4,930.0

1,459.4

—

34.5

(499.4)

0.0

(37.3)

—

5,887.2

(64.8)

SM Energy Company

423.0

286.0

—

4.3

(31.8)

—

—

616.8


1,257.9

799.4

—

66.8

(141.9)

3.6

—

—

1,985.8


4,200.2

1,112.1

—

(296.9)

(236.8)

—

—

—

4,778.6

303.5

23.2

—

(7.2)

(26.4)

1.6

(9.8)

—

285.0

3,914.2

769.7

—

(279.4)

(416.8)

8.0

(12.8)

—

3,982.9

172,146.3

25,992.4

(4,177.7)

(12,940.0)

4,326.3

(7,984.8)

WPX Energy, Inc.
All companies

842.8

618.0

(1.6)

178,203.7

Integrateds

55,830.0

3,238.0

606.0

(3,880.0)

1,635.0

(716.0)

—

57,331.0

Large independents

58,883.1

9,644.2

222.0

(1,384.3)

(4,842.5)

1,393.8

(4,279.1)

—

59,637.2

Independents

57,433.2

13,110.2

14.8

(3,411.4)

(4,217.6)

1,297.6

(2,989.7)

(1.6)

61,235.5

(a) Includes transfers, reclassifications and other.


19

US — performance measures (three-year averages) (a)
Costs in $ per BOE, production replacement rates in %
Oil

PRAC
Apache Corporation

$

8.73

FDC
$

11.98

RRC
$

All
sources

Gas
Excluding
purchases
and sales

All
sources

Excluding
purchases
and sales
113%

Production
costs

11.87

199%

207%

110%

15.75

34.31

23.18

320

153

153

49

$

13.37

11.19

9.84

29.40

17.91

351

191

(169)

(90)

18.35


10.09

13.66

13.24

858

616

245

228

9.37

BP p.l.c.

38.10

16.21

17.24

78

100

61

85

12.35


11.45

7.78

7.78

454

494

355

420

7.19

9.16

11.50

11.32

477

479

45

29

16.55

13.82

13.26

13.26

786

804

252

406

6.31

Chevron Corporation

5.78

43.60

32.74

70

71

134

59

15.36

Cimarex Energy Co.

7.20

12.68

12.53

341

351

140

192

10.84

8.04

12.44

11.72

1,064

435

370

349

5.85



14.81

16.06

15.63

570

402

647

429

11.71

ConocoPhillips

25.07

13.18

13.25

119

126

67

74

19.95

9.59

10.07

9.91

—

—

648

537

15.28

30.01

9.33

9.46

674

668

1,043

1,041

11.38

CONSOL Energy Inc.

12.34

22.95

15.75

410

213

408

304

23.90


11.71

12.75

12.74

253

285

152

165

8.26

7.78

8.90

8.86

876

882

161

186

7.62

32

135

195

5.64

277

62

39

12.10
10.81

EnCana Corporation

5.35

10.89

10.74

(21)

Energen Corporation

9.68

23.03

16.94

521

EOG Resources, Inc.
EQT Corporation

4.82

13.30

12.57

561

564

192

193

18.47

6.58

6.77

289

277

611

602

2.84

7.18

20.91

7.99

965

164

932

10

12.52

10.55

24.56

22.68

(382)

51

(29)

158

7.88


8.57

41.06

18.72

175

90

553

148

15.64


5.78

21.24

21.07

(35)

58

6.89

20


354

(6)

Oil

PRAC

FDC

RRC

All
sources

Gas
Excluding
purchases
and sales

All
sources

Excluding
purchases
and sales

Production
costs

Hess Corporation

$ 24.49

$ 34.48

$ 33.81

259 %

241 %

166 %

155%

Linn Energy, LLC

12.51

10.86

11.93

687

290

616

170

14.37

Loews Corporation

14.25

(8.62)

(9.02)

(227)

(197)

(389)

(189)

21.28


16.21

71.15

44.43

235

123

46

36

19.13

6.78

12.53

12.00

70

63

536

519

8.26


$

18.21

12.57

18.02

452

442

140

157

11.80

47.57

26.49

184

191

127

8

10.39

17.10


18.30

6.38

Noble Energy, Inc.

34.34

25.60

166

108

128

(1)

16.04


8.97

11.31

11.27

1,016

1,160

381

456

5.87


9.54

13.37

12.45

806

672

110

100

9.13


3.06

14.51

14.18

436

431

7

11

11.82

Plains Exploration & Production
Company(1)

5.75

23.83

23.14

223

241

198

272

14.07

QEP Resources, Inc.

8.79

10.44

10.44

894

900

218

218

7.13


6.30

5.20

5.23

637

886

518

711

6.56


11.50

6.35

6.47

1,225

1,226

160

271

7.73


1.27

24.89

24.12

195

199

171

182

15.28


13.40

27.67

19.89

1,012

623

(134)

SM Energy Company

22.20

16.98

16.98

297

386

144

182

10.67


14.57

6.31

6.31

(30)

(30)

409

417

5.50


13.28

—

13.66

13.66

31

64

546

635

14.44

66.21

11.27

12.02

2,967

2,750

883

877

6.33


(9)

—

10.96

10.96

250

250

331

331

6.92

20.87

18.95

19.00

315

315

16

21

16.30

9.18

16.58

15.43

753

674

73

57

12.39

15.65

213%

200%

181%

194%

$

12.51

231%

109%

$

15.65

WPX Energy, Inc.
All companies

$

Integrateds

$

10.60

$

8.91

$

17.03

$

27.65

$

20.48

121%

113%

Large independents

14.02

15.64

15.43

255

255

84

193

10.44

Independents

11.20

12.10

11.96

478

422

262

279

10.27

(a) Performance measures are based on less than three years of results for companies that have been in operation less than three years.
(1)


21

US — rankings for the latest fiscal year

Oil reserves

Gas reserves

Total capital
expenditures

Results of
operations

Beginning

Ending

Beginning

Ending


12

10

7

6

6

6

Apache Corporation

13

8

8

8

15

19


42

49

24

25

42

46


39

43

43

44

33

32

9

3

1

1

3

3


41

35

44

45

19

20


49

42

30

32

47

49

2

7

14

12

2

2

BP p.l.c.


1

1

5

5

24

14

Cimarex Energy Co.

Chevron Corporation

27

20

29

30

30

31


38

48

46

43

34

33


24

17

21

22

39

37

ConocoPhillips

10

5

3

2

4

4

CONSOL Energy Inc.

43

41

—

—

13

15


19

23

20

15

37

34


35

13

12

14

46

44

8

9

9

10

5

5

El Paso Corporation

28

26

28

24

22

22

EnCana Corporation

16

25

39

41

7

7

Energen Corporation

36

29

26

26

35

36


EOG Resources, Inc.

7

11

11

9

8

8

EQT Corporation

37

30

48

48

9

10


46

37

38

38

43

40


34

34

45

47

27

30

3

2

2

3

1

1

Exxon Mobil Corporation

22


Oil reserves

Gas reserves

Total capital
expenditures

Results of
operations

Beginning

Ending

Beginning

Ending


40

31

32

35

28

28

Hess Corporation

11

14

13

13

50

48

Linn Energy, LLC

20

12

18

17

31

27

Loews Corporation

50

44

34

39

36

39

6

33

22

18

38

38


44

38

37

40

44

41


17

27

23

23

23

24

Noble Energy, Inc.

15

47

19

21

26

26


4

6

4

4

17

16



14

16

36

31

16

17


47

45

40

36

40

42


18

15

10

11

20

23

Plains Exploration & Production Company

21

24

17

19

32

35

QEP Resources, Inc.

33

22

31

29

21

21


29

32

25

28

14

12


48

39

41

34

49

47

5

4

6

7

18

18


25

21

16

20

25

29

SM Energy Company

30

36

35

33

41

43


22

18

49

49

10

9


45

40

33

37

45

45


26

46

47

46

29

25


32

28

42

42

11

11


23

19

15

16

48

50

WPX Energy, Inc.

31

50

27

27

12

13

Royal Dutch Shell plc


23

Peer groups
Integrateds

Independents

BP p.l.c.
Chevron Corporation
ConocoPhillips
Exxon Mobil Corporation
Hess Corporation
Royal Dutch Shell plc

Cimarex Energy Co.
CONSOL Energy Inc.
El Paso Corporation
Energen Corporation
EQT Corporation
Linn Energy, LLC
Loews Corporation
Plains Exploration & Production Company
QEP Resources, Inc.
SM Energy Company
WPX Energy, Inc.

Large independents
Apache Corporation
EnCana Corporation
EOG Resources, Inc.
Noble Energy, Inc.

24


Company footnotes
(1) Amounts presented for El Paso,

ExxonMobil, Plains Exploration &
Production and Royal Dutch Shell
include investments accounted for by
the equity method.
(2) Revenues and results of operations

amounts presented for Anadarko
Petroleum exclude Deepwater
Horizon settlement and related costs
that were included by the company in
its results of operations disclosure.
(3) Revenues and results of operations

amounts presented for BP do not
reflect any costs relating to the Gulf
of Mexico oil spill.

Ernst & Young Americas
oil and gas services
Ernst & Young has established itself as one
of the most effective professional service
firms working in the energy and energy
services industries. Our Energy Center, which
is a multidisciplinary team of Ernst & Young
professionals, focuses exclusively on serving
the energy industry and enables us to
quickly and effectively address our energy
clients’ complex issues. Our exploration and
production specialty practice leverages the
extensive industry experience and technical
knowledge of our professionals.
Our commitment is to provide exploration
and production clients with a comprehensive
approach that integrates our knowledge of
the industry and our experience in assurance,
tax transactions and advisory to provide
customized and efficient services.

For more information, contact:
Americas Oil & Gas Sector Leader
Marcela Donadio
+1 713 750 1276
marcela.donadio@ey.com
Americas Oil & Gas Center
Jim Hammond
+1 713 750 1398
james.hammond@ey.com
Assurance
John Russell
+1 713 750 1492
john.russell2@ey.com
Transaction Advisory Services
Jon McCarter
+1 713 750 1395
jon.mccarter@ey.com
Tax
Deborah Byers
+1 713 750 8138
deborah.byers@ey.com
Performance Improvement
Carlos Assis
+55 21 3263 7212
carlos.assis@br.ey.com


25

Ernst & Young
Assurance | Tax | Transactions | Advisory
About Ernst & Young
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© 2012 Ernst & Young LLP.
All Rights Reserved.
SCORE No. DW0172
BSC No. 1205-1361019
This publication contains information in summary form and is
therefore intended for general guidance only. It is not intended to
be a substitute for detailed research or the exercise of professional
judgment. Neither Ernst & Young LLP nor any other member of the
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