Asset Retirement Obligations

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS

We are required to record the estimated fair value of the liabilities relating to the future retirement of our long-lived assets. Our oil and natural gas wells are plugged and abandoned when the oil and natural gas reserves in those wells are depleted or the wells are no longer able to produce. The plugging and abandonment liability for a well is recorded in the period in which the obligation is incurred (at the time the well is drilled or acquired). None of our assets are restricted for purposes of settling these AROs. All our AROs relate to the plugging costs associated with our oil and gas wells.

The following table shows certain information about our estimated AROs for the periods indicated:


	Successor		Predecessor
	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
	(In thousands)
ARO liability, January 1:	$	23,356	$	66,627
Accretion of discount	461		596
Liability incurred	—		314
Liability settled	(16)		(319)
Liability sold	(2)		(15)
Revision of estimates (1)	44		(3,384)
ARO liability, March 31:	23,843		63,819
Less current portion	2,161		1,470
Total long-term ARO	$	21,682	$	62,349

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1.Plugging liability estimates were revised in 2020 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments.