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PROPERTY AND EQUIPMENT | 6 Months Ended
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Jun. 30, 2021
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated DD&A and impairment as of June 30, 2021 and December 31, 2020 are as follows:
| Successor |  |  | Predecessor
| June 30, 2021 |  |  | December 31, 2020
Proved oil and natural gas properties | $ | 1,737,778 |  |  |  | $ | 9,359,866 |
Unproved properties | 224,214 |  |  |  | 1,457,043 |
Other depreciable property and equipment | 5,407 |  |  |  | 85,530 |
Land | 1,507 |  |  |  | 3,008 |
Total property and equipment | 1,968,906 |  |  |  | 10,905,447 |
Accumulated DD&A and impairment | (150,175) |  |  |  | (8,819,178) |
Property and equipment, net | $ | 1,818,731 |  |  |  | $ | 2,086,269 |
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At June 30, 2021, the net book value of the Company's oil and gas properties was above the calculated ceiling for the period leading up to June 30, 2021. As a result, the Company recorded impairment of its oil and natural gas properties of $117.8 million for the Successor Period. No impairments were recorded in either of the Current Predecessor Quarter or the Current Predecessor YTD Period. The Company recorded an impairment of its oil and natural gas properties of $532.9 million and $1.1 billion for the Prior Predecessor Quarter and the Prior Predecessor YTD Period, respectively, as a result of the significant decrease in commodity prices. Certain general and administrative costs are capitalized to the full cost pool and represent management’s estimate of costs incurred directly related to exploration and development activities. All general and administrative costs not capitalized are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $2.2 million for the Successor Period, $2.5 million, for the Current Predecessor Quarter, and $8.0 million for Current Predecessor YTD Period. Capitalized general and administrative costs were approximately $8.2 million and $13.6 million for the Prior Predecessor Quarter and the Prior Predecessor YTD Period, respectively. The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule. The following table summarizes the Company’s unevaluated properties excluded from amortization by area at June 30, 2021:
| Successor
| June 30, 2021
| (In thousands)
Utica | $ | 186,036 |
SCOOP | 38,178 |
Total unproved properties | $ | 224,214 |
Impairment of Other Property and Equipment During the Current Predecessor YTD Period, the Company recorded an impairment of $14.6 million related to its corporate headquarters as a result of changes in the expected future use. Asset Retirement Obligation The following table provides a reconciliation of the Company’s asset retirement obligation for the periods presented:
Asset retirement obligation at January 1, 2021 (Predecessor) |  | $ | 63,566 |
Liabilities incurred |  | 546 |
Accretion expense |  | 1,229 |
Ending balance as of May 17, 2021 (Predecessor) |  | 65,341 |
Fresh start adjustments(1) |  | (46,257) |
Asset retirement obligation at May 18, 2021 (Successor) |  | 19,084 |
Liabilities incurred |  | 37 |
Accretion expense |  | 226 |
Asset retirement obligation at June 30, 2021 |  | $ | 19,347 |

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- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=120429125&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99779-112916 + Details
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