XML 27 R17.htm IDEA: XBRL DOCUMENT v3.23.2
Asset Retirement Obligations
6 Months Ended
Jun. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

(9) ASSET RETIREMENT OBLIGATIONS

Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well lives. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for the six months ended June 30, 2023 and the year ended December 31, 2022 is as follows (in thousands):

 

 

 

Six Months
Ended
June 30,
 2023

 

 

Year
Ended
December 31,
2022

 

Beginning of period

 

$

109,851

 

 

$

95,836

 

Liabilities incurred

 

 

1,698

 

 

 

2,589

 

Liabilities settled

 

 

(2,139

)

 

 

(10,650

)

Accretion expense

 

 

2,944

 

 

 

6,569

 

Change in estimate

 

 

219

 

 

 

15,507

 

End of period

 

 

112,573

 

 

 

109,851

 

Less current portion

 

 

(4,570

)

 

 

(4,570

)

Long-term asset retirement obligations

 

$

108,003

 

 

$

105,281

 

 

Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations.