XML 20 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Divestiture
3 Months Ended
Mar. 31, 2017
Business Combinations And Disposal Groups [Abstract]  
Divestiture
On January 17, 2017, the Company completed the sale of 2,900 net acres and working interests in 16 producing vertical wells in the Midland Basin to a third-party buyer for a purchase price of $59.6 million. After transaction costs reflecting an economic effective date of October 1, 2016, the proceeds were $59.4 million net of working capital and closing adjustments. A portion of these proceeds were used to pay down borrowings on the Senior Secured Credit Facility. The purchase price was recorded as an adjustment to oil and natural gas properties pursuant to the rules governing full cost accounting.
Effective at closing, the operations and cash flows of these properties were eliminated from the ongoing operations of the Company, and the Company has no continuing involvement in the properties. This divestiture does not represent a strategic shift and will not have a major effect on the Company's operations or financial results.