Assets Held for Sale

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale

Divestitures

The Company reviews portfolio opportunities on an ongoing basis and has engaged in various divestiture transactions over recent years.

Williston Non-Op Divestiture. On July 10, 2018, the Company completed the initial closing for the sale of certain non-operated oil and gas properties in the Williston Basin (the “Williston Non-Op Divestiture”). The transaction had an effective date of March 1, 2018, and the final closing statement was completed in the fourth quarter of 2018. The Company recognized a $18.1 million net gain on sale of properties, which includes customary post close adjustments, in its Consolidated Statements of Operations for the year ended December 31, 2018. During the year ended December 31, 2019, the Company recognized an additional $1.2 million net loss on sale of properties, which includes customary closing adjustments, in its Consolidated Statements of Operations. The divested properties were in the Company’s exploration and production segment.

Foreman Butte Divestiture. On July 31, 2018, the Company completed the initial closing for the sale of oil and gas properties and certain other property and equipment primarily located in the Foreman Butte area of the Williston Basin (the “Foreman Butte Divestiture”). The transaction had an effective date of March 1, 2018, and the final closing statement was completed in January 2019. During the second quarter of 2018, the Company recorded an impairment loss of $383.4 million, which was included in impairment on the Company’s Consolidated Statements of Operations, to adjust the carrying value of these assets to their estimated fair value, determined based on the expected sales price as negotiated with the purchaser, less costs to sell. The Company recognized a $10.7 million net loss on sale of properties, which includes customary post close adjustments, in its Consolidated Statements of Operations for the year ended December 31, 2018. During the year ended December 31, 2019, the Company recognized an additional $2.8 million net loss on sale of properties, which includes customary closing adjustments, in its Consolidated Statements of Operations. The Foreman Butte Divestiture consisted of oil and gas properties in the Company’s exploration and production segment and included certain other property and equipment in the Company’s midstream segment.

Other Williston Divestiture. On August 17, 2018, the Company completed the initial closing for the sale of additional non-strategic oil and gas properties in the Williston Basin (the “Other Williston Divestiture”). The transaction had an effective date of March 1, 2018, and the final closing statement was completed in March 2019. The Company recognized a $19.0 million net gain on sale of properties, which includes, and is subject to further, customary post close adjustments, in its Consolidated Statements of Operations for the year ended December 31, 2018. The divested properties were in the Company’s exploration and production segment.

The Company determined that the Williston Non-Op Divestiture, Foreman Butte Divestiture and Other Williston Divestiture did not represent a strategic shift in its operations or have a significant impact on its financial position or results of operations; therefore, the Company did not account for these divestitures as discontinued operations.

In addition to the aforementioned divestitures, the Company also sold partial interests in certain oil and gas properties in the Company’s exploration and production segment. During the year ended December 31, 2019, the Company recognized a $0.4 million net loss on sale of properties, which includes customary closing adjustments, in its Consolidated Statements of Operations.

Subsequent event. In January 2020, the Company completed the initial closing to sell certain oil and gas properties in the Williston Basin for total cash proceeds of $10.4 million. The transaction had an effective date of October 1, 2019, and the final closing statements for the transaction will be completed in July 2020. Upon the initial closing, the Company recognized a $10.4 million net gain on sale of properties, which includes customary closing adjustments, subsequent to the year ended December 31, 2019.

Assets Held for SaleDuring the fourth quarter of 2019, the Company decided to pursue an exit from the well services business (the “Well Services Exit”) and began an active program to locate buyers for certain well services inventory and equipment included within the Company’s well services business segment. In March 2020, the Company intends to transition its well fracturing services from OWS to a third-party provider who will provide services to the Company under a long-term agreement. The assets expected to

be sold related to the Well Services Exit met the criteria for assets held for sale and are classified as such as of December 31, 2019.

During the year ended December 31, 2019, the Company recorded an impairment loss of $4.4 million, which was included in impairment on the Company’s Consolidated Statements of Operations, to adjust the carrying value of these assets to their estimated fair value less costs to sell, determined primarily based on indicative bids and indicative market pricing. The Company considered all available information at the time the estimates were made; however, the fair value that will be ultimately realized upon the sale of the assets to be divested may differ from the estimated fair values reflected in the consolidated financial statements. The expected sale of assets related to the Well Services Exit does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, and therefore, is not reported as discontinued operations.

The Company did not have any assets or liabilities classified as held for sale as of December 31, 2018. The following table presents balance sheet data related to the assets held for sale related to the Well Services Exit as of December 31, 2019:

	December 31, 2019
	(In thousands)
Inventory	$	3,124
Other property and equipment	95,560
Less: Accumulated depreciation and impairment	(77,056)
Total assets held for sale, net	$	21,628