We are an independent oil and gas company engaged in development, production, acquisition and exploration activities primarily in the Rocky Mountains region of the United States. We were incorporated in the state of Delaware in 2003 in connection with our initial public offering.
Since our inception, we have built a strong asset base through a combination of property acquisitions, development of proved reserves and exploration activities. Our current operations and capital programs are focused on organic drilling opportunities and on the development of previously acquired properties, specifically on projects that we believe provide the greatest potential for repeatable success and production growth, while selectively pursuing acquisitions that complement our existing core properties, such as the acquisition discussed below under “Acquisitions and Divestitures,” and exploring other basins where we can apply our existing knowledge and expertise to build production and add proved reserves. As a result of lower crude oil prices during 2016 and 2017, we significantly reduced our level of capital spending and focused our drilling activity on projects that provide the highest rate of return, while closely aligning our capital spending with cash flows generated from operations. During 2018, we continued to focus on high-return projects in our asset portfolio that added production and reserves while generating free cash flows from operations. In 2019, we expect to continue to closely align our capital spending with cash flows generated from operations while focusing on developing our large resource play in the Williston Basin of North Dakota and Montana. We continually evaluate our property portfolio and sell properties when we believe that the sales price realized will provide an above average rate of return for the property or when the property no longer matches the profile of properties we desire to own, such as the asset sales discussed below under “Acquisitions and Divestitures”.
As of December 31, 2018, our estimated proved reserves totaled 520.1 MMBOE and our 2018 average daily production was 128.0 MBOE/d, which results in an average reserve life of approximately 11.1 years.