Divestitures and Assets Held for Sale

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

The Company reviews portfolio opportunities on an ongoing basis and has engaged in various divestiture transactions over recent years. During the nine months ended September 30, 2019, the Company completed the final closing statements for the sale of non-strategic oil and gas properties and certain other property and equipment primarily located in the Foreman Butte area of the Williston Basin. The Company recognized an additional $3.2 million net loss on sale of properties, which includes customary closing adjustments, in its Condensed Consolidated Statements of Operations for the nine months ended September 30, 2019. In addition, the Company also sold partial interests in certain oil and gas properties in the Company’s exploration and production segment. During the three and nine months ended September 30, 2019, the Company recognized a $0.7 million net loss on sale of properties, which includes customary closing adjustments, in its Condensed Consolidated Statements of Operations.

Assets Held for Sale

Assets and liabilities held for sale represent the assets that are expected to be sold and the liabilities that are expected to be assumed by the purchaser, respectively. In October 2019, the Company completed the closings for two separate purchase and sale agreements to sell partial interests in certain non-operated oil and gas properties in the Williston Basin (the “2019 Divestitures”), which includes reimbursements for exploration and production capital expenditures of $6.7 million for the three and nine months ended September 30, 2019 and total cash proceeds of $0.5 million. The assets and liabilities held for sale are in the Company’s exploration and production segment. The transactions had effective dates of January 1, 2019 and June 1, 2019, and the final closing statements for the transactions were completed in October 2019. Upon closing these transactions, the Company recognized a $0.5 million net gain on sale of properties, which includes customary closing adjustments, subsequent to the quarter ended September 30, 2019.

The assets and liabilities sold in the 2019 Divestitures were classified as held for sale as of September 30, 2019. The Company did not have any assets or liabilities classified as held for sale as of December 31, 2018. The following table presents balance sheet data related to the assets and liabilities held for sale related to the 2019 Divestitures as of September 30, 2019:


	September 30, 2019
	(In thousands)
Assets:
Oil and gas properties (successful efforts method)	$	6,700
Less: accumulated depreciation, depletion, amortization and impairment	—
Total assets held for sale, net	$	6,700
Liabilities:
Accrued liabilities	$	6,700
Total liabilities held for sale	$	6,700