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PROPERTY AND EQUIPMENT | 9 Months Ended
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Sep. 30, 2022
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 September 30, 2022 and December 31, 2021 are as follows (in thousands):
| Successor
| September 30, 2022 |  | December 31, 2021
Proved oil and natural gas properties | $ | 2,303,728 |  |  | $ | 1,917,833 |
Unproved properties | 184,075 |  |  | 211,007 |
Other depreciable property and equipment | 5,767 |  |  | 4,943 |
Land | 386 |  |  | 386 |
Total property and equipment | 2,493,956 |  |  | 2,134,169 |
Accumulated DD&A and impairment | (467,485) |  |  | (278,341) |
Property and equipment, net | $ | 2,026,471 |  |  | $ | 1,855,828 |
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 September 30, 2022, the net book value of the Company's oil and gas properties was below the calculated ceiling for the period leading up to September 30, 2022. As a result, the Company did not record an impairment of its oil and natural gas properties for the Current Successor Quarter. The Company recorded impairment of its oil and natural gas properties of $117.8 million for the Prior Successor Period. Upon the application of fresh start accounting, the value of the Company's oil and natural gas properties were determined using forward strip oil and natural gas prices as of the Emergence Date. These prices were higher than the 12-month weighted average prices used in the full cost ceiling limitation at June 30, 2021, which led to the Prior Successor Period impairment charge. 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 $4.9 million and $5.1 million for the Current Successor Quarter and Prior Successor Quarter, respectively. Capitalized general and administrative costs were approximately $14.6 million, $7.3 million, and $8.0 million for the Current Successor YTD Period, Prior Successor Period, and 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 non-producing properties excluded from amortization by area as of September 30, 2022:
| Successor
| September 30, 2022
| (In thousands)
Utica | $ | 151,856 |
SCOOP | 32,219 |
Total unproved properties | $ | 184,075 |
Asset Retirement Obligation The following table provides a reconciliation of the Company’s asset retirement obligation for the Current Successor YTD Period (in thousands):
Asset retirement obligation at January 1, 2022 (Successor) |  | $ | 28,264 |
Liabilities incurred |  | 53 |
Liabilities removed due to divestitures |  | (7) |
Accretion expense |  | 2,057 |
Asset retirement obligation at September 30, 2022 |  | $ | 30,367 |
The following table provides a reconciliation of the Company’s asset retirement obligation for the Prior Predecessor YTD Period and Prior Successor Period (in thousands):
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 |  | 56 |
Accretion expense |  | 714 |
Asset retirement obligation at September 30, 2021 |  | $ | 19,854 |
_____________________ (1) The Company recorded its asset retirement obligation at fair value as of the Emergence Date.

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