Asset Retirement Obligations

12 Months Ended

Dec. 31, 2021

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, 2019 (Predecessor)	$	54,909
Liabilities incurred during period	535
Liabilities settled during period	(196)
Accretion expense during period	2,696
Fresh start adjustment(1)	(10,552)
Asset retirement obligation as of November 19, 2020 (Predecessor)	$	47,392


Asset retirement obligation as of November 20, 2020 (Successor)	$	47,392
Liabilities incurred during period	35
Accretion expense during period	336
Asset retirement obligation as of December 31, 2020 (Successor)	$	47,763
Liabilities incurred through acquisitions	14,850
Liabilities incurred during period	729
Liabilities settled during period(2)	(5,193)
Accretion expense during period	4,068
Revisions to estimates	199
Asset retirement obligation as of December 31, 2021 (Successor)	$	62,416

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(1)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.

(2)Includes $4.9 million related to liabilities settled during the period related to properties sold in the Permian Basin Sale (see Note 13—Acquisitions and Divestitures).

Accretion expense is included in depreciation, depletion and amortization on the Company’s Consolidated Statements of Operations. At December 31, 2021 and 2020, the current portion of the total ARO balance was approximately $4.8 million and $2.2 million, respectively, and is included in accrued liabilities on the Company’s Consolidated Balance Sheets.