Asset Retirement Obligations

12 Months Ended

Dec. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

The following table reflects the changes in the Company’s ARO (in thousands):



Asset retirement obligation as of December 31, 2018 (Predecessor)	$	52,449
Liabilities incurred during period	1,519
Liabilities settled during period(1)	(770)
Accretion expense during period	2,939
Revisions to estimates	647
Asset retirement obligation as of December 31, 2019 (Predecessor)	$	56,784
Liabilities incurred during period	535
Liabilities settled during period(1)	(196)
Accretion expense during period	2,775


Fresh start adjustment(2)	(11,681)
Asset retirement obligation as of November 19, 2020 (Predecessor)	$	48,217


Asset retirement obligation as of November 20, 2020 (Successor)	$	48,217
Liabilities incurred during period	35
Accretion expense during period	342

Asset retirement obligation as of December 31, 2020 (Successor)	$	48,594

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(1)Liabilities settled during the period from January 1, 2020 through November 19, 2020 and the year ended December 31, 2019 included ARO related to sold properties (see Note 12—Acquisitions and Divestitures).

(2)Upon emergence from bankruptcy and the adoption of fresh start accounting, ARO liabilities were adjusted to their estimated fair value. Refer to Note 3—Fresh Start Accounting for more information on Fresh Start Adjustments.

Accretion expense is included in depreciation, depletion and amortization on the Company’s Consolidated Statements of Operations. At December 31, 2020 (Successor), November 19, 2020 (Predecessor) and December 31, 2019 (Predecessor), the current portion of the total ARO balance was approximately $2.2 million, $0.3 million and $0.5 million, respectively, and is included in accrued liabilities on the Company’s Consolidated Balance Sheets.