Divestitures

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment Impairment or Disposal [Abstract]

Divestitures

DIVESTITURES

Oil and Natural Gas

On March 30, 2021, the company entered into a purchase and sale agreement to which we agreed to sell substantially all of our wells and the leases related thereto located in Reno and Stafford Counties, Kansas for $7.1 million, subject to customary closing and post-closing adjustments. This divestiture closed on May 6, 2021, with an effective date of February 1, 2021. The sale of these assets will not result in a significant alteration of the full cost pool, and therefore no gain or loss will be recognized.

We sold $1.7 million of non-core oil and natural gas assets, net of related expenses, during the first three months of the Successor Period 2021, compared to $0.6 million during the first three months of the Predecessor Period 2020. These proceeds reduced the net book value of our full cost pool with no gain or loss recognized.