Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

The following table sets forth the Company’s property, plant and equipment:


	December 31,
	2019		2018

	(In thousands)
Proved oil and gas properties⁽¹⁾	$	8,724,376	$	7,878,104
Less: Accumulated depreciation, depletion, amortization and impairment	(3,601,019)		(2,853,353)
Proved oil and gas properties, net	5,123,357		5,024,751
Unproved oil and gas properties	738,662		1,034,085
Other property and equipment⁽²⁾	1,279,653		1,151,772
Less: Accumulated depreciation	(163,896)		(183,499)
Other property and equipment, net	1,115,757		968,273
Total property, plant and equipment, net	$	6,977,776	$	7,027,109

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(1)Included in the Company’s proved oil and gas properties are estimates of future asset retirement costs of $42.3 million and $40.5 million at December 31, 2019 and 2018, respectively.

(2)Included in the Company’s other property and equipment are estimates of future asset retirement costs of $1.4 million and $1.3 million at December 31, 2019 and 2018, respectively.

Impairment. The Company reviews its property, plant and equipment for impairment by asset group whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred. If events occur that indicate an asset group may not be recoverable, the asset group is tested for recoverability. For its proved oil and gas properties, the Company estimates the expected undiscounted future cash flows of its proved oil and gas properties by field and then compares such amount to the carrying amount of the proved oil and gas properties in the applicable field to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the proved oil and gas properties to fair value. The factors used to determine fair value are subject to management’s judgment and expertise and include, but are not limited to, recent sales prices of comparable properties, the present value of future cash flows net of estimated operating and development costs using estimates of proved reserves, future commodity pricing, future production estimates, anticipated capital expenditures and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected. These assumptions represent Level 3 inputs, as further discussed under Note 7 — Fair Value Measurements.

The Company reports assets held for sale at the lower of their carrying amount or estimated fair value less costs to sell, with an impairment loss recognized to the extent the carrying amount exceeds this value. During the year ended December 31, 2019, the Company recorded an impairment loss of $4.4 million to adjust the carrying value of certain inventory and equipment held for sale to their estimated fair value (see Note 12—Assets Held for Sale). As of December 31, 2018, the Company sold certain proved and unproved oil and gas properties (see Note 11—Divestitures). For the year ended December 31, 2018, the Company recorded an impairment loss of $383.4 million, which was included in its exploration and production segment to adjust the carrying amount of these assets, net of the associated ARO liabilities, to their estimated fair value. For the years ended, December 31, 2019 and 2017, the Company did not record impairment of proved oil and gas properties.

In addition, as a result of expiring leases, periodic assessments and drilling plan uncertainty on certain acreage of unproved properties, the Company recorded non-cash impairment charges on its unproved oil and gas properties of $5.4 million, $0.9 million and $6.9 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company reviews its other property and equipment for impairment whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred.