Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTAL DISCLOSURES ABOUT NATURAL GAS PRODUCING ACTIVITIES (Tables)

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SUPPLEMENTAL DISCLOSURES ABOUT NATURAL GAS PRODUCING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2021
Extractive Industries [Abstract]  
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure
Capitalized costs related to Tellurian’s natural gas producing activities are summarized as follows (in thousands):
December 31,
2021 2020 2019
Proved properties $ 113,950  $ 62,718  $ 142,494 
Unproved properties —  —  — 
Gross capitalized costs 113,950  62,718  142,494 
Accumulated DD&A (48,637) (37,639) (21,010)
Net capitalized costs $ 65,313  $ 25,079  $ 121,484 
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure
Costs incurred in natural gas property acquisition (inclusive of producing well costs), exploration and development activities are summarized as follows (in thousands):
Year Ended December 31,
2021 2020 2019
Property acquisitions:
Proved $ 3,409  $ 1,307  $ 45,484 
Unproved —  —  — 
Exploration costs —  —  — 
Development 28,955  —  800 
Costs incurred $ 32,364  $ 1,307  $ 46,284 
Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure
The following table includes revenues and expenses directly associated with our natural gas and condensate producing activities. It does not include any interest costs or indirect general and administrative costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of our natural gas operations. Tellurian’s results of operations from natural gas and condensate producing activities for the periods presented are as follows (in thousands):
Year Ended December 31,
2021 2020 2019
Natural gas sales $ 51,499  $ 30,441  $ 28,774 
Operating costs 20,576  15,814  14,923 
Depreciation, depletion and amortization 10,998  16,703  19,736 
Impairment charge —  81,065  — 
Total operating costs and expenses 31,574  113,582  34,659 
Results of operations $ 19,925  $ (83,141) $ (5,885)
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities
Gas
(MMcf)		 Condensate
(Mbbl)		 Gas Equivalent
(MMcfe)
Proved reserves:
December 31, 2018 264,854  7  264,899 
Extensions, discoveries and other additions 12,848  —  12,848 
Revisions of previous estimates 4,737  (6) 4,696 
Production (13,901) (1) (13,905)
Sale of reserves-in-place —  —  — 
Purchases of reserves-in-place —  —  — 
December 31, 2019 268,538  —  268,538 
Extensions, discoveries and other additions —  —  — 
Revisions of previous estimates (152,132) —  (152,132)
Production (16,898) —  (16,898)
Sale of reserves-in-place —  —  — 
Purchases of reserves-in-place —  —  — 
December 31, 2020 99,508  —  99,508 
Extensions, discoveries and other additions 202,897  —  202,897 
Revisions of previous estimates 35,237  —  35,237 
Production (14,306) —  (14,306)
Sale of reserves-in-place —  —  — 
Purchases of reserves-in-place —  —  — 
December 31, 2021 323,336  —  323,336 
Proved developed reserves:
December 31, 2019 30,699  —  30,699 
December 31, 2020 26,593  —  26,593 
December 31, 2021 73,927  —  73,927 
Proved undeveloped reserves:
December 31, 2019 237,839  —  237,839 
December 31, 2020 72,915  —  72,915 
December 31, 2021 249,409  —  249,409 
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure
The following summary sets forth our future net cash flows relating to proved natural gas and condensate reserves based on the standardized measure (in thousands):
Year Ended December 31,
2021 2020 2019
Future cash inflows $ 945,651  $ 132,563  $ 534,577 
Future production costs (133,909) (34,624) (102,268)
Future development costs (211,836) (71,557) (287,111)
Future income tax provisions (54,401) —  (6,612)
Future net cash flows 545,505  26,382  138,586 
Less effect of a 10% discount factor (181,302) (19,497) (85,415)
Standardized measure of discounted future net cash flows $ 364,203  $ 6,885  $ 53,171 
The following table sets forth the changes in the standardized measure of discounted future net cash flows (in thousands):
December 31, 2018 $ 145,811 
Sales and transfers of gas and condensate produced, net of production costs (21,704)
Net changes in prices and production costs (134,366)
Extensions, discoveries, additions and improved recovery, net of related costs 2,019 
Development costs incurred 23,485 
Revisions of estimated development costs 6,165 
Revisions of previous quantity estimates (12,660)
Accretion of discount 17,821 
Net change in income taxes 28,316 
Purchases of reserves in place — 
Sales of reserves in place — 
Changes in timing and other (1,716)
December 31, 2019 $ 53,171 
Sales and transfers of gas and condensate produced, net of production costs (20,211)
Net changes in prices and production costs (58,136)
Extensions, discoveries, additions and improved recovery, net of related costs — 
Development costs incurred — 
Revisions of estimated development costs — 
Revisions of previous quantity estimates 26,133 
Accretion of discount 5,725 
Net change in income taxes 4,077 
Purchases of reserves in place — 
Sales of reserves in place — 
Changes in timing and other (3,874)
December 31, 2020 $ 6,885 
Sales and transfers of gas and condensate produced, net of production costs (39,806)
Net changes in prices and production costs 110,850 
Extensions, discoveries, additions and improved recovery, net of related costs 255,246 
Development costs incurred — 
Revisions of estimated development costs 10,643 
Revisions of previous quantity estimates 35,012 
Accretion of discount 688 
Net change in income taxes (27,455)
Purchases of reserves in place — 
Sales of reserves in place — 
Changes in timing and other 12,140 
December 31, 2021 $ 364,203