Assets Held for Sale

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

During the fourth quarter of 2019, the Company began an active program to locate buyers for certain well services inventory and equipment in connection with the Well Services Exit. The assets expected to be sold related to the Well Services Exit met the criteria for assets held for sale and were classified as such as of December 31, 2019. The Well Services Exit did not represent a strategic shift that would have a major effect on the Company’s operations and financial results, and therefore, was not reported as discontinued operations. During the year ended December 31, 2019 (Predecessor), the Company recorded an impairment loss of $4.4 million, which was included in impairment on its Consolidated Statements of Operations, to adjust the carrying value of the assets held for sale to their estimated fair value less costs to sell, determined primarily based on indicative bids and indicative market pricing.

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 $0.7 million in its Consolidated Statements of Operations during the period from January 1, 2020 through November 19, 2020 (Predecessor). The divested assets were included in the Company’s E&P segment, as the Company eliminated its well services business segment during the first quarter of 2020 in conjunction with the Well Services Exit.

During the period from January 1, 2020 through November 19, 2020 (Predecessor), the Company recorded an impairment loss of $15.9 million, which was included in impairment on its Consolidated Statements of Operations, 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 Consolidated Statements of Operations for the period from January 1, 2020 through November 19, 2020 (Predecessor).

Upon emergence from bankruptcy and the adoption of fresh start accounting, the Company’s assets held for sale were adjusted to their estimated fair value, less estimated costs to sell. Refer to Note 3—Fresh Start Accounting for more information on Fresh Start Adjustments.

The Company’s assets held for sale consists of the following (in thousands):


	Successor		Predecessor
	December 31, 2020		December 31, 2019

Inventory	$	580	$	3,124
Other property and equipment	4,920		95,560
Less: Accumulated depreciation and impairment	—		(77,056)
Total assets held for sale, net	$	5,500	$	21,628

In 2018 (Predecessor), certain oil and gas properties included in the 2018 Divestitures were classified as held for sale, and the Company recorded a loss of $383.4 million, which was included in impairment on its Consolidated Statements of Operations, to adjust the carrying value of these assets, net of the associated ARO liabilities, to their estimated fair value, less costs to sell.