Property, Plant and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

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


	March 31, 2020		December 31, 2019

	(In thousands)
Proved oil and gas properties⁽¹⁾	$	8,954,843	$	8,724,376
Less: Accumulated depreciation, depletion, amortization and impairment	(8,193,662)		(3,601,019)
Proved oil and gas properties, net	761,181		5,123,357
Unproved oil and gas properties	366,546		738,662
Other property and equipment⁽²⁾	1,383,856		1,279,653
Less: Accumulated depreciation and impairment	(362,904)		(163,896)
Other property and equipment, net	1,020,952		1,115,757
Total property, plant and equipment, net	$	2,148,679	$	6,977,776

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(1)Included in the Company’s proved oil and gas properties are estimates of future asset retirement costs of $42.1 million and $42.3 million at March 31, 2020 and December 31, 2019, respectively.

(2)Included in the Company’s other property and equipment are estimates of future asset retirement costs of $1.4 million at both March 31, 2020 and December 31, 2019.

Impairment

The Company reviews its long-lived assets for impairment by asset group whenever events and circumstances indicate that a decline in the recoverability of their carrying value may have occurred.

Proved oil and gas properties. As a result of the significant decline in expected future commodity prices coupled with liquidity concerns due to the Company’s current expectation that it will be unable to comply with a covenant under the Oasis Credit Facility beginning with the fourth quarter of 2020, and the resulting decrease in estimated proved reserves, the Company reviewed its proved oil and gas properties in both the Williston Basin and the Delaware Basin for impairment. As of March 31, 2020, the Company recorded impairment charges of $4.4 billion, including $3.8 billion related to the Williston Basin and $637.3 million related to the Delaware Basin, to reduce the carrying values of its proved oil and gas properties to their estimated fair values (see Note 6 — Fair Value Measurements). For the three months ended March 31, 2019, the Company did not record impairment charges on its proved oil and gas properties.

Unproved oil and gas properties. The Company assessed its unproved oil and gas properties for impairment and recorded impairment charges on its unproved oil and gas properties of $291.3 million and $0.6 million for the three months ended March 31, 2020 and 2019, respectively, as a result of leases expiring or expected to expire as well as drilling plan uncertainty on certain acreage of unproved properties.

Other property and equipment. Due to the significant decline in expected future commodity prices, the Company and other crude oil and natural gas producers are changing their development plans, resulting in lower forecasted throughput volumes for

the Company’s midstream assets. As a result, the Company reviewed its midstream assets, grouped by commodity for each basin, for impairment. The carrying amounts exceeded the estimated undiscounted future cash flows for certain midstream asset groups in the Williston Basin and the Delaware Basin, and consequently, the Company recorded impairment charges of $108.3 million as of March 31, 2020 to reduce the carrying values to their estimated fair values. No impairment charges were recorded on the Company’s midstream assets for the three months ended March 31, 2019.