ASSET RETIREMENT OBLIGATIONS

6 Months Ended

Jun. 30, 2024

Asset Retirement Obligation Disclosure [Abstract]

We recognize an estimated liability for future costs associated with the abandonment of our crude oil and natural gas properties, including facilities requiring decommissioning. A liability for the fair value of an asset retirement obligation and corresponding increase to the carrying value of the related long-lived asset are recorded at the time a well is drilled or acquired, or a facility is constructed. The increase in carrying value is included in proved properties in the accompanying balance sheets. We deplete the amount added to proved properties and recognize expense in connection with the accretion of the discounted liability over the remaining estimated economic lives of the respective long-lived assets. Cash paid to settle asset retirement obligations is included in the cash flows from operating activities section of our statements of cash flows.

Our estimated asset retirement obligation liability is based on historical experience plugging and abandoning wells, estimated economic lives, estimated plugging and abandonment cost, and regulatory requirements. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred or revised.

A roll-forward of our asset retirement obligation is as follows (in thousands):


	Amount
Balance as of December 31, 2023	$	336,832
Additional liabilities incurred with development activities and other	4,092
Additional liabilities incurred with acquisitions	40,157
Liabilities settled	(15,915)
Accretion expense	11,812

Obligations discharged with divestitures	(27,976)
Balance as of June 30, 2024	$	349,002
Current portion(1)	$	31,116
Long-term portion	$	317,886

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(1)The current portion of the asset retirement obligation is included in other liabilities on the accompanying balance sheets.