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Fresh Start Accounting (Tables)
 12 Months Ended
Dec. 31, 2022
Reorganizations [Abstract]  
Schedule of Reconciliation of Reorganization Value
The following table reconciles the enterprise value to the equity value of the Successor as of the Emergence Date:
In thousandsSept. 18, 2020
Enterprise value$1,280,856 
Plus: Cash and cash equivalents45,585 
Less: Total debt(231,022)
Equity value$1,095,419 

The following table reconciles enterprise value to reorganization value of the Successor (i.e., value of the reconstituted entity) and total reorganization value:
In thousandsSept. 18, 2020
Enterprise value$1,280,856 
Plus: Cash and cash equivalents45,585 
Plus: Current liabilities excluding current maturities of long-term debt239,738 
Plus: Non-interest-bearing noncurrent liabilities185,228 
Reorganization value of the reconstituted Successor$1,751,407 
Schedule of Reorganization Adjustments
The following table summarizes the losses (gains) on reorganization items, net:
Period from
Jan. 1, 2020 through
Sept. 18, 2020
In thousands
Gain on settlement of liabilities subject to compromise$(1,024,864)
Fresh start accounting adjustments1,834,423 
Professional service provider fees and other expenses11,267 
Success fees for professional service providers9,700 
Loss on rejected contracts and leases10,989 
Valuation adjustments to debt classified as subject to compromise757 
Debtor-in-possession credit agreement fees3,107 
Acceleration of Predecessor stock compensation expense4,601 
Total reorganization items, net$849,980 
Schedule of Fresh-Start Adjustments
The following illustrates the effects on the Company’s consolidated balance sheet due to the reorganization and fresh start accounting adjustments. The explanatory notes following the table below provide further details on the adjustments, including the assumptions and methods used to determine fair value for its assets, liabilities, and warrants.
As of September 18, 2020
In thousandsPredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
Assets
Current assets 
Cash and cash equivalents$73,372 $(27,787)
(1)
$— $45,585 
Restricted cash— 10,662 
(2)
— 10,662 
Accrued production receivable112,832 — — 112,832 
Trade and other receivables, net36,221 — — 36,221 
Derivative assets32,635 — — 32,635 
Other current assets12,968 (539)
(3)
— 12,429 
Total current assets268,028 (17,664)— 250,364 
Property and equipment 
Oil and natural gas properties (using full cost accounting)
Proved properties11,723,546 — (10,941,313)782,233 
Unevaluated properties650,553 — (538,570)111,983 
CO2 properties
1,198,515 — (1,011,169)187,346 
Pipelines2,339,864 — (2,207,246)132,618 
Other property and equipment201,565 — (104,152)97,413 
Less accumulated depletion, depreciation, amortization and impairment(12,864,141)— 12,864,141 — 
Net property and equipment3,249,902 — (1,938,309)
(10)
1,311,593 
Operating lease right-of-use assets1,774 — 69 
(10)
1,843 
Derivative assets501 — — 501 
Intangible assets, net20,405 — 79,678 
(11)
100,083 
Other assets81,809 8,241 
(4)
(3,027)
(12)
87,023 
Total assets$3,622,419 $(9,423)$(1,861,589)$1,751,407 
As of September 18, 2020
In thousandsPredecessorReorganization AdjustmentsFresh Start AdjustmentsSuccessor
Liabilities and Stockholders’ Equity
Current liabilities 
Accounts payable and accrued liabilities$67,789 $102,793 
(5)
$3,738 
(13)
$174,320 
Oil and gas production payable39,372 16,705 
(6)
— 56,077 
Derivative liabilities8,613 — — 8,613 
Current maturities of long-term debt— 73,199 
(6)
364 
(14)
73,563 
Operating lease liabilities— 757 
(6)
(29)
(10)
728 
Total current liabilities115,774 193,454 4,073 313,301 
Long-term liabilities 
Long-term debt, net of current portion140,000 42,610 
(6)
(25,151)
(14)
157,459 
Asset retirement obligations2,727 180,408 
(6)
(24,697)
(10)
158,438 
Derivative liabilities295 — — 295 
Deferred tax liabilities, net— 417,951 
(6)(15)
(414,120)
(15)
3,831 
Operating lease liabilities— 515 
(6)
10 
(10)
525 
Other liabilities— 3,540 
(6)
18,599 
(16)
22,139 
Total long-term liabilities not subject to compromise143,022 645,024 (445,359)342,687 
Liabilities subject to compromise2,823,506 (2,823,506)
(6)
— — 
Commitments and contingencies (Note 14)
Stockholders’ equity
Predecessor preferred stock— — — — 
Predecessor common stock510 (510)
(7)
— — 
Predecessor paid-in capital in excess of par2,764,915 (2,764,915)
(7)
— — 
Predecessor treasury stock, at cost(6,202)6,202 
(7)
— — 
Successor preferred stock— — — — 
Successor common stock— 50 
(8)
— 50 
Successor paid-in capital in excess of par— 1,095,369 
(8)
— 1,095,369 
Accumulated deficit(2,219,106)3,639,409 
(9)
(1,420,303)
(17)
— 
Total stockholders’ equity
540,117 1,975,605 (1,420,303)1,095,419 
Total liabilities and stockholders’ equity$3,622,419 $(9,423)$(1,861,589)$1,751,407 

Reorganization Adjustments

(1)Represents the net cash payments that occurred on the Emergence Date as follows:
In thousands
Sources:
Cash proceeds from Successor Bank Credit Agreement$140,000 
Total cash proceeds140,000 
Uses:
Payment in full of DIP Facility and pre-petition revolving bank credit facility(140,000)
Retained professional service provider fees paid to escrow account(10,662)
Non-retained professional service provider fees paid(7,420)
Accrued interest and fees on DIP Facility(1,464)
Debt issuance costs related to Successor Bank Credit Agreement(8,241)
Total cash uses(167,787)
Net uses$(27,787)
(2)Represents the transfer of funds to a restricted cash account utilized for the payment of fees to retained professional service providers assisting in the bankruptcy process.

(3)Represents the write-off of costs related to the DIP Facility and a run-off policy for directors’ and officers’ insurance coverage, partially offset by the recording of prepaid amounts for non-retained professional service provider fees.

(4)Represents debt issuance costs related to the Successor Bank Credit Agreement.

(5)Adjustments to accounts payable and accrued liabilities as follows:
In thousands
Accrual of professional service provider fees$2,826 
Payment of accrued interest and fees on DIP Facility(1,464)
Reinstatement of accounts payable and accrued liabilities from liabilities subject to compromise101,431 
Accounts payable and accrued liabilities$102,793 

(6)Liabilities subject to compromise were settled as follows in accordance with the Plan:
In thousands
Liabilities subject to compromise prior to the Emergence Date:
Settled liabilities subject to compromise
Senior secured second lien notes$1,629,457 
Convertible senior notes234,015 
Senior subordinated notes251,480 
Total settled liabilities subject to compromise2,114,952 
Reinstated liabilities subject to compromise
Current maturities of long-term debt73,199 
Accounts payable and accrued liabilities101,431 
Oil and gas production payable16,705 
Operating lease liabilities, current757 
Long-term debt, net of current portion42,610 
Asset retirement obligations180,408 
Deferred tax liabilities289,389 
Operating lease liabilities, long-term515 
Other long-term liabilities3,540 
Total reinstated liabilities subject to compromise708,554 
Total liabilities subject to compromise2,823,506 
Issuance of New Common Stock to second lien note holders(1,014,608)
Issuance of New Common Stock to convertible note holders(53,400)
Issuance of series A warrants to convertible note holders(15,683)
Issuance of series B warrants to senior subordinated note holders (6,398)
Reinstatement of liabilities subject to compromise(708,553)
Gain on settlement of liabilities subject to compromise$1,024,864 

(7)Represents the cancellation of the Predecessor’s common stock, treasury stock, and related components of the Predecessor’s paid-in capital in excess of par. Paid-in capital in excess of par includes $4.6 million as a result of terminated Predecessor stock compensation plans.
(8)Represents the Successor’s common stock and additional paid-in capital as follows:
In thousands
Capital in excess of par value of 47,499,999 issued and outstanding shares of New Common Stock issued to holders of the senior secured second lien note claims
$1,014,608 
Capital in excess of par value of 2,500,000 issued and outstanding shares of New Common Stock issued to holders of the convertible senior note claims
53,400 
Fair value of series A warrants issued to convertible senior note holders15,683 
Fair value of series B warrants issued to senior subordinated note holders6,398 
Fair value of series B warrants issued to Predecessor equity holders5,330 
Total change in Successor common stock and additional paid-in capital1,095,419 
Less: Par value of Successor common stock(50)
Change in Successor additional paid-in capital$1,095,369 

(9)Reflects the cumulative net impact of the effects on accumulated deficit as follows:
In thousands
Cancellation of Predecessor common stock, paid-in capital in excess of par, and treasury stock$2,763,824 
Gain on settlement of liabilities subject to compromise1,024,864 
Acceleration of Predecessor stock compensation expense(4,601)
Recognition of tax expenses related to reorganization adjustments(128,556)
Professional service provider fees recognized at emergence(9,700)
Issuance of series B warrants to Predecessor equity holders(5,330)
Other(1,092)
Net impact to Predecessor accumulated deficit$3,639,409 

Fresh Start Adjustments

(10)Reflects fair value adjustments to our (i) oil and natural gas properties, CO2 properties, pipelines, and other property and equipment, as well as the elimination of accumulated depletion, depreciation, and amortization, (ii) operating lease right-of-use assets and liabilities, and (iii) asset retirement obligations.

(11)Reflects fair value adjustments to our long-term contracts to sell CO2 to industrial customers.

(12)Reflects fair value adjustments to our other assets as follows:
In thousands
Fair value adjustment for CO2 and oil pipeline line-fill
$(3,698)
Fair value adjustments for escrow accounts671 
Fair value adjustments to other assets$(3,027)

(13)Reflects fair value adjustments to accounts payable and accrued liabilities as follows:
In thousands
Fair value adjustment for the current portion of an unfavorable vendor contract$3,500 
Fair value adjustment for the current portion of Predecessor asset retirement obligation689 
Write-off accrued interest on NEJD pipeline financing(451)
Fair value adjustments to accounts payable and accrued liabilities$3,738 
(14)Represents adjustments to current and long-term maturities of debt associated with pipeline lease financings. The cumulative effect is as follows:
In thousands
Fair value adjustment for Free State pipeline lease financing$(24,699)
Fair value adjustment for NEJD pipeline lease financing(88)
Fair value adjustments to current and long-term maturities of debt$(24,787)

Our pipeline lease financings were restructured in late October 2020 (see Note 8, Long-Term Debt – Restructuring of Pipeline Financing Transactions).

(15)Represents (i) adjustment to deferred taxes, including the recognition of tax expenses related to reorganization adjustments as a result of the cancellation of debt and retaining tax attributes for the Successor and the reinstatement of deferred tax liabilities subject to compromise totaling $128.6 million and (ii) adjustments to deferred tax liabilities related to fresh start accounting of $414.1 million.

(16)Represents a fair value adjustment for the long-term portion of an unfavorable vendor contract.

(17)Represents the cumulative effect of the fresh start accounting adjustments discussed above.