Asset Retirement Obligations

9 Months Ended

Sep. 30, 2022

Asset Retirement Obligation Disclosure [Abstract]

The following table presents the changes in carrying amounts of the asset retirement obligations associated with our working interests in crude oil and natural gas properties for the nine months ended September 30, 2022:


	(in thousands)
Asset retirement obligations at beginning of period	$	159,672
Obligations incurred with development activities and other	3,654
Obligations incurred with acquisition	23,442
Accretion expense	9,823
Revisions in estimated cash flows	(284)

Obligations discharged with asset retirements and divestitures	(19,322)
Asset retirement obligations at end of period	176,985

Current portion (1)	(24,276)
Long-term portion	$	152,709

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(1) The current portion of the asset retirement obligation is included in other accrued expenses on our condensed consolidated balance sheets. Our estimated asset retirement obligations liability is based on historical experience in plugging and abandoning wells, estimated economic lives and estimated plugging, abandonment and surface reclamation costs considering federal and state regulatory requirements in effect at the time that the obligation is incurred. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred or revised. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligations liability, a corresponding adjustment is made to the properties and equipment balance. Changes in the liability due to the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense.