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Exit Costs

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Exit Costs

(14) Exit Costs

In August 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030. These are contracts where we will not realize any future benefit. The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets. In the year ended December 31, 2024, we recorded accretion expense of $39.2 million compared to $41.9 million in 2023 and $43.6 million in 2022. In 2024, we recorded a net adjustment of $2.1 million to decrease the obligation mainly due to a decrease in forecasted electricity costs. In 2023, we recorded net adjustments of $57.7 million to increase this obligation primarily for higher rates due to inflation and to increase the obligation for a change to our forecasted drilling plans of the buyer. The present value of our estimated obligations related to these assets was initially recorded in 2020 as an exit cost at a total of $479.8 million. There are inherent uncertainties surrounding the retained obligation and, as a result, the determination of the accrued obligation required judgment and estimation. The actual settlement amount and timing may differ from our estimates. The estimated discounted value for this divestiture contract obligation was $344.3 million at December 31, 2024, of which $87.0 million is classified as short-term.

In second quarter 2020, we negotiated capacity releases on certain transportation pipelines in Pennsylvania effective May 31, 2020 and extending through the remainder of the contract. As a result of these releases, we recorded exit costs of $10.4 million in 2020 which represented the discounted present value of our remaining obligations to the third party. As of December 31, 2024, this obligation is complete and has no remaining carrying value.

The following summarizes our exit costs for the three years ended December 31, 2024, 2023 and 2022 (in thousands):

	Year Ended December 31,
	2024				2023				2022
Transportation contract capacity releases		126			$	345			$	579
Divestiture contract obligation		37,088				99,595				69,758
Total exit costs	$	37,214			$	99,940			$	70,337

The following details the accrued exit cost liability activity for the years ended December 31, 2024 and 2023 (in thousands):

	Exit Costs
	Louisiana				Pennsylvania Pipeline
Balance at December 31, 2022	$	390,620			$	5,060
Accretion of discount		41,860				345
Changes in estimate		57,735				—
Payments		(92,766	)			(2,865	)
Balance at December 31, 2023		397,449				2,540
Accretion of discount		39,185				126
Changes in estimate		(2,097	)			—
Payments		(90,229	)			(2,666	)
Balance at December 31, 2024	$	344,308			$	—

As of December 31, 2024, our estimated settlement of the remaining divestiture contract obligation based on a discounted value is as follows (in thousands):

	Divestiture Contract Obligation
2025	$	86,991
2026		68,458
2027		58,781
2028		53,756
2029		48,814
Thereafter		27,508
	$	344,308

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- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 420
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4.e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 420
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482017/420-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 420
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482017/420-10-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 420
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-URI https://asc.fasb.org/420/tableOfContent

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 420
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482017/420-10-50-1

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