Asset Retirement Obligations

12 Months Ended

Dec. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Note 6. Asset Retirement Obligations

The following table summarizes the changes in our asset retirement obligations:


	Successor				Predecessor
	Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020
In thousands
Beginning asset retirement obligations	$	186,281	$	163,368	$	181,760
Liabilities incurred and assumed during period	43,701		738		736
Revisions in estimated retirement obligations	69,059		22,660		3,592
Liabilities settled and sold during period	(10,783)		(3,439)		(10,041)
Accretion expense	14,353		2,954		11,329
Fresh start accounting adjustment	—		—		(24,008)
Ending asset retirement obligations	302,611		186,281		163,368
Less: current asset retirement obligations(1)	(18,373)		(6,943)		(4,930)
Long-term asset retirement obligations	$	284,238	$	179,338	$	158,438

(1)Included in “Accounts payable and accrued liabilities” in our Consolidated Balance Sheets.

Liabilities assumed relate to our March 2021 acquisition of Wyoming property interests (see Note 3, Acquisition and Divestitures), with liabilities incurred generally relating to wells and facilities. Revisions during 2021 primarily related to increased well abandonment cost estimates at certain of these fields and an acceleration in the estimated timing of certain future abandonment activities.

We have escrow accounts that are legally restricted for certain of our asset retirement obligations. The balances of these escrow accounts were $55.6 million and $55.2 million as of December 31, 2021 and 2020, respectively. These balances are primarily invested in U.S. Treasury bonds, recorded at amortized cost, and money market accounts, which investments are included in “Other assets” in our Consolidated Balance Sheets. A portion of these investments are included in cash, cash equivalents, and restricted cash balances on our Consolidated Statements of Cash Flows (see Note 1, Nature of Operations and Summary of Significant Accounting Policies – Cash, Cash Equivalents, and Restricted Cash). The carrying values of these investments approximate their estimated fair market value as of December 31, 2021 and 2020.