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Properties and Equipment
 3 Months Ended
Mar. 31, 2019
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment Disclosure PROPERTIES AND EQUIPMENT

The following table presents the components of properties and equipment, net of accumulated depreciation, depletion and amortization ("DD&A"):

 
March 31, 2019
 
December 31, 2018
 
(in thousands)
Properties and equipment, net:
 
 
 
Crude oil and natural gas properties
 
 
 
Proved
$
5,681,685

 
$
5,452,613

Unproved
485,571

 
492,594

Total crude oil and natural gas properties
6,167,256

 
5,945,207

Infrastructure and other
59,510

 
60,612

Land and buildings
12,497

 
11,243

Construction in progress
404,229

 
356,095

Properties and equipment, at cost
6,643,492

 
6,373,157

Accumulated DD&A
(2,521,843
)
 
(2,370,295
)
Properties and equipment, net
$
4,121,649

 
$
4,002,862

 
 
 
 


Classification of Assets and Liabilities as Held-for-Sale. During the fourth quarter of 2018, as part of our plans to divest certain of our Delaware Basin crude oil gathering, natural gas gathering and produced water gathering and disposal assets, we began actively marketing the assets for sale; therefore, these assets are classified as held-for-sale as they met the criteria for such classification at March 31, 2019 and December 31, 2018. The planned disposition of our Delaware Basin crude oil gathering, natural gas gathering and produced water gathering and disposal assets does not represent a strategic shift in our operations or have a significant impact on our operations or financial results; therefore, we will not account for the disposition as a discontinued operation. Also included in assets held-for-sale are certain non-core Delaware Basin crude oil and natural gas properties.

The following table presents balance sheet data related to assets and liabilities held-for-sale:
 
March 31, 2019
 
December 31, 2018
 
(in thousands)
Assets
 
 
 
  Properties and equipment, net
$
150,360

 
$
137,448

  Other assets
2,487

 
3,257

Total assets
$
152,847

 
$
140,705

 
 
 
 
Liabilities
 
 
 
  Asset retirement obligation
$
4,614

 
$
4,111

Total liabilities
$
4,614

 
$
4,111


    
The following table presents impairment charges recorded for crude oil and natural gas properties:
 
Three Months Ended March 31,
 
2019
 
2018
 
(in thousands)

 
 
 
Impairment of proved and unproved properties
$
7,875

 
$
33,130

Amortization of individually insignificant unproved properties
—

 
58

Impairment of crude oil and natural gas properties
$
7,875

 
$
33,188


    
During the three months ended March 31, 2019 and 2018, we recorded impairment charges totaling $7.9 million and $26.9 million, respectively, related to the divestiture of leaseholds and the then-current and anticipated near-term leasehold expirations within our non-focus areas of the Delaware Basin and made the determination that we would no longer pursue plans
to develop these properties. We determined the fair value of the properties based upon estimated future discounted cash flow, a Level 3 input, using estimated production and prices at which we reasonably expect the crude oil and natural gas will be sold.

During the three months ended March 31, 2018, we also corrected an error in our calculation of the unproved properties and goodwill impairment originally reported in the quarter ended September 30, 2017. The correction of the error resulted in an additional impairment charge of $6.3 million, recorded in the three months ended March 31, 2018, which we have included in the impairment of properties and equipment expense line in our condensed consolidated statement of operations. We evaluated the error under the guidance of Accounting Standards Codification 250, Accounting Changes and Error Corrections ("ASC 250"). Based on the guidance in ASC 250, we determined that the impact of the error did not have a material impact on our previously-issued financial statements or those of the period of correction.
    
Suspended Well Costs. The following table presents the capitalized exploratory well cost pending determination of proved reserves and included in properties and equipment, net on the condensed consolidated balance sheets:

    
 
 
March 31, 2019
 
December 31, 2018
 
 
(in thousands, except for number of wells)
 
 
 
 
 
Beginning balance
 
$
12,188

 
$
15,448

Additions to capitalized exploratory well costs pending the determination of proved reserves
 
12,853

 
35,127

   Reclassifications to proved properties
 
—

 
(38,387
)
Ending balance
 
$
25,041

 
$
12,188

 
 
 
 
 
Number of wells pending determination at period end
 
2

 
2