Discontinued Operations and Assets Held for Sale

9 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

Discontinued Operations and Assets Held for Sale

Kansas Reporting Unit

On March 10, 2021, the Company entered into a PSA to divest of the Kansas Reporting Unit for an agreed upon purchase price of $3.5 million before certain closing adjustments. In addition, the Company also agreed to assign to the buyer its lease associated with Tengasco's former corporate office in Greenwood Village, Colorado. With Tengasco qualifying as a business and the Kansas Reporting Unit making up a significant portion of the assets of Tengasco, the Company concluded that the transaction met the requirements of assets held for sale and discontinued operations upon the acquisition date. The effective date of the sale was March 1, 2021 and the sale closed on April 2, 2021 for the agreed upon purchase price, plus approximately $0.2 million in net closing adjustments.

The following table presents the amounts reported in the condensed consolidated statement of operations as discontinued operations as of the three and nine months ended June 30, 2021:

	Tengasco
	Three Months Ended June 30, 2021		Nine Months Ended June 30, 2021
	(In thousands)
Oil and natural gas sales	$	—	$	—
Total revenues	—		—
Lease operating expenses	—		115
Goodwill impairment	—		18,516
Total expenses	—		18,631
Other expense	882		882
Loss from discontinued operations before income taxes	(882)		(19,513)
Income tax expense	(85)		(60)
Net loss from discontinued operations, net of tax	$	(967)	$	(19,573)

For further discussion of revenues and expenses included in discontinued operations, see further discussion in Note 4 - Acquisitions and Divestitures.