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## Index to Financial Statements Our Operations 

## Northeast Appalachia 

Northeast Appalachia represented 49% of our total 2018 net production and 37% of our total reserves as of December 31, 2018. In 2018, our reserves in Northeast Appalachia increased by 240 Bcf, which included net additions of 551 Bcf, net upward price revisions of 41 Bcf and net upward performance revisions of 107 Bcf, partially offset by production of 459 Bcf. As of December 31, 2018, we had approximately 184,024 net acres in Northeast Appalachia and had spud or acquired 680 operated wells, 597 of which were on production. Below is a summary of Northeast Appalachia’s operating results for the latest three years: 

<img src='content_image/1029631.jpg'>

(1) Our undeveloped acreage position as of December 31, 2018 had an average royalty interest of 15%. 

(2) The decrease in our net undeveloped acres in 2017 as compared to 2016 is due to leasehold expirations in areas we did not plan on developing. 

(3) Our proved undeveloped reserve locations increased significantly in 2017, as compared to 2016, primarily through our successful drilling program in less developed areas and improved realized commodity pricing. 

(4) Includes 394 proved developed producing and 10 proved developed non-producing wells in which we only have an overriding royalty interest. 

For 2018 as compared to 2017: 

· Our average completed well cost increased primarily due to the drilling of longer lateral wells, new infrastructure due to increased activity in delineation areas and more complex hydraulic fracturing designs. 

Our ability to bring our Northeast Appalachia production to market depends on a number of factors including the construction of and/or the availability of capacity on gathering systems and pipelines that we do not own. We refer you to “Midstream”  in Item 1 of Part I of this Annual Report for a discussion of our gathering and transportation arrangements for Northeast Appalachia production. 

