Divestitures and Assets Held for Sale

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

The Company sold certain oil and gas properties located in the Williston Basin through various transactions and recognized a net gain on sale of properties of $1.5 million and $12.0 million in its Condensed Consolidated Statements of Operations during three and nine months ended September 30, 2020, respectively. The divested properties were included in the Company’s exploration and production segment.

During the fourth quarter of 2019, the Company decided to pursue an exit from its well services business (the “Well Services Exit”) and began an active program to locate buyers for certain well services inventory and equipment included within the Company’s well services business segment. The Company completed various agreements for the sales of certain well services equipment related to the Well Services Exit and recognized a net loss on sale of properties of $0.3 million in its Condensed Consolidated Statements of Operations during the nine months ended September 30, 2020. The divested assets were included in the Company’s exploration and production segment, as the Company eliminated its well services business segment during the first quarter of 2020 in conjunction with the Well Services Exit.

Assets Held for Sale

The assets expected to be sold related to the Well Services Exit met the criteria for assets held for sale at December 31, 2019 and were classified as such. During the nine months ended September 30, 2020, the Company recorded charges in impairment on its Condensed Consolidated Statements of Operations of $15.9 million to write-off certain well services equipment no longer probable to be sold within one year and to adjust the carrying value of the remaining equipment held for sale to its estimated fair value less costs to sell. In addition, the Company recorded a non-cash charge of $1.5 million to adjust the carrying value of inventory held for sale to its net realizable value, which was included in other services expenses on the Company’s Condensed Consolidated Statements of Operations for the nine months ended September 30, 2020.

As of September 30, 2020, certain remaining assets related to the Well Services Exit met the criteria to be classified as assets held for sale. There are no restrictions on the sale of these assets related to the Chapter 11 Cases.

The Company’s assets held for sale consists of the following:


	September 30, 2020		December 31, 2019

	(In thousands)
Inventory	$	580	$	3,124
Other property and equipment	67,617		95,560
Less: Accumulated depreciation and impairment	(66,817)		(77,056)
Total assets held for sale	$	1,380	$	21,628