XML 31 R21.htm IDEA: XBRL DOCUMENT v3.23.2
Exit Costs
6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Exit Costs

(13) EXIT COSTS

Exit Costs

In third quarter 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030. These are contracts where we will not realize any future benefit. The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets. In second quarter 2023, we recorded a net adjustment of $37.8 million to increase this obligation primarily for higher rates due to inflation. In second quarter 2022, we recorded a net adjustment of $24.8 million to increase the obligation for a change in our forecasted drilling plans of the buyer. In first six months 2023, we recorded accretion expense of $21.0 million compared to $22.1 million in the same period of the prior year. The estimated discounted divestiture contract obligation was $400.0 million at June 30, 2023.

In second quarter 2020, we negotiated capacity releases on certain transportation pipelines in Pennsylvania effective May 31, 2020 and extending through the remainder of the contract. The estimated remaining discounted obligation for these transportation capacity releases as of June 30, 2023 was $3.8 million.

The following summarizes our exit costs for the three and six months ended June 30, 2023 and 2022 (in thousands):

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Transportation contract capacity releases
  (including accretion of discount)

$

95

 

 

$

162

 

 

$

203

 

 

$

323

 

Divestiture contract obligation (including accretion
   of discount)

 

48,559

 

 

 

35,907

 

 

 

60,774

 

 

 

46,861

 

 

$

48,654

 

 

$

36,069

 

 

$

60,977

 

 

$

47,184

 

 

The following details the accrued exit cost liability activity for the six months ended June 30, 2023 (in thousands):

 

 

Exit
Costs
(a)

 

Balance at December 31, 2022

 

$

395,680

 

Accretion of discount

 

 

21,216

 

Changes in estimate

 

 

39,761

 

Payments

 

 

(52,868

)

Balance at June 30, 2023

 

$

403,789

 

 

(a)

Includes the divestiture contract obligation and the transportation contract capacity release obligation.