Related-Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related-Party Transactions

Related-Party Transactions

Severance Payments Due to Former CEO

The Company’s former CEO is entitled to the severance benefits set forth in Section 4(b) of his Amended and Restated Employment Agreement with the Company, dated March 11, 2016 and filed with the SEC on March 14, 2016. The majority of such benefits were expensed during 2016 and included severance payments of approximately $10.4 million, certain medical benefits, and immediate vesting of the outstanding Restricted Stock Units (“RSU”) and Performance Based Options (“PBO”) previously granted. In accordance with applicable regulations, payment of the benefits, stock settlement of the vested RSU, and distribution of deferred compensation balances discussed below, were completed in April of 2017.

Deferred Compensation

The Company has agreements with its executive management to defer compensation into Rabbi Trust accounts held in the name of the Company. The total value of the deferred compensation obligation for all participants at March 31, 2017 and December 31, 2016 was $27.2 million and $27.3 million, respectively. These totals include a fair value of $775,000 and $839,000 of the Company’s common stock, for each of the respective periods, with the balance in various publicly traded equities, bonds, and cash. In conjunction with the termination of the Company’s former CEO, assets with a value of $23.2 million at March 31, 2017 were distributed from the trust accounts in April 2017.

Deferred compensation expense included in general, administrative, and other costs in the accompanying condensed consolidated statements of operations and comprehensive income or loss for the three months ended March 31, 2017 and 2016 was a recovery of $82,000 and expense of $191,000, respectively.

Sale of Oil and Gas Assets

During the three months ended March 31, 2017, the Company sold the majority of its remaining oil and gas lease assets to the service agent the Company had contracted with to operate and manage such oil and gas operations. The Company received book value for the majority of the assets sold resulting in no significant gain or loss on the transaction. The service agent continues to provide management services to the Company in conjunction with the wind-down of the remaining operations.