Divestitures and Assets Held for Sale

9 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

2024 Divestitures and Assets Held for Sale

Assets held for sale. During the third quarter of 2024, the Company entered into an agreement to divest certain of its non-core properties located outside of the Williston Basin. The transaction closed on October 25, 2024 for estimated net cash proceeds (including purchase price adjustments) of $36.1 million. As of September 30, 2024, the Company classified the assets and liabilities associated with these properties as held for sale on its Condensed Consolidated Balance Sheet.

The following table presents balance sheet data related to the assets held for sale:


	September 30, 2024

	(In thousands)
Assets:
Oil and gas properties	$	39,367
Less: accumulated depreciation, depletion and amortization	(1,169)
Total property, plant and equipment, net	38,198
Inventory	357
Prepaid expenses	43
Total current assets held for sale	$	38,598
Liabilities:
Assets retirement obligations	$	1,587
Revenues and production taxes payable	1,158
Total current liabilities held for sale	$	2,745
Net assets	$	35,853

Other divestitures. During the three and nine months ended September 30, 2024, the Company completed certain non-operated wellbore divestitures in the Williston Basin for total net cash proceeds of $0.9 million and $21.3 million, respectively.

2023 Divestitures

Non-core properties. During the year ended December 31, 2023, the Company entered into separate agreements with multiple buyers to sell certain of its non-core properties located outside of the Williston Basin (the “Non-core Asset Sales”). As of December 31, 2023, the Company had completed these Non-core Asset Sales and received total net cash proceeds (including purchase price adjustments) of $39.1 million, subject to customary post-closing adjustments. As of December 31, 2023, the Company recorded a pre-tax net loss on sale of assets of $8.4 million for the Non-core Asset Sales and an impairment loss of $5.6 million to adjust the carrying value of the assets held for sale to their estimated fair value less costs to sell. The impairment loss was recorded within exploration and impairment expenses on the Condensed Consolidated Statements of Operations.

Other divestitures. During the year ended December 31, 2023, the Company completed certain non-operated wellbore divestitures in the Williston Basin for total net cash proceeds of $12.1 million.