Asset Retirement Obligations

12 Months Ended

Dec. 31, 2019

Asset Retirement Obligation [Abstract]

Asset Retirement Obligations

QEP records ARO associated with the retirement of tangible, long-lived assets. The Company's ARO liability applies primarily to abandonment costs associated with oil and gas wells and certain other properties. The fair values of such costs are estimated by Company personnel based on abandonment costs of similar assets and depreciated over the life of the related assets. Revisions to the ARO estimates result from changes in expected cash flows or material changes in estimated asset retirement costs. The ARO liability is adjusted to present value each period through an accretion calculation using a credit-adjusted risk-free interest rate.

The Consolidated Balance Sheet line items of QEP's ARO liability are presented in the table below:

	Asset Retirement Obligations
	December 31,
	2019		2018
Balance Sheet line item	(in millions)
Current:
Asset retirement obligations, current liability	$	6.0	$	5.1
Long-term:
Asset retirement obligations	94.9		96.9
Other long-term liabilities held for sale	—		57.6
Total ARO Liability	$	100.9	$	159.6

The following is a reconciliation of the changes in the Company's ARO for the periods specified below:

	Asset Retirement Obligations
	2019			2018
	(in millions)
ARO liability at January 1,	$	159.6		$	214.1
Accretion	5.2			6.4
Additions	1.1			4.1
Revisions	(2.2		)	(4.9		)
Liabilities related to assets sold(1)	(60.7		)	(56.8		)
Liabilities settled	(2.1		)	(3.3		)
ARO liability at December 31,	$	100.9		$	159.6

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Liabilities related to assets sold for the year ended December 31, 2019, includes $57.6 million related to the Haynesville Divestiture. Liabilities related to assets sold for the year ended December 31, 2018, includes $51.0 million related to the Uinta Basin Divestiture. Refer to Note 3 – Acquisitions and Divestitures for more information.