Property, Plant and Equipment

9 Months Ended

Sep. 30, 2023

Note 3 — Property, Plant and Equipment

Proved Properties

During the three and nine months ended September 30, 2023 and 2022, the Company’s ceiling test computations did not result in a write-down of its U.S. oil and natural gas properties. At September 30, 2023, the Company’s ceiling test computation was based on SEC pricing of $80.46 per Bbl of oil, $3.58 per Mcf of natural gas and $20.44 per Bbl of NGLs.

Asset Retirement Obligations

The asset retirement obligations included in the Condensed Consolidated Balance Sheets in current and non-current liabilities, and the changes in that liability were as follows (in thousands):


Asset retirement obligations at December 31, 2022	$	541,661
Obligations assumed(1)		258,858
Obligations incurred		297
Obligations settled		(71,097	)
Obligations divested		(19,417	)
Accretion expense		63,430
Changes in estimate		43,116
Asset retirement obligations at September 30, 2023	$	816,848
Less: Current portion at September 30, 2023		69,288
Long-term portion at September 30, 2023	$	747,560

(1)

Assumed in connection with the EnVen Acquisition. See further discussion in Note 2 — Acquisitions and Divestitures.

At September 30, 2023, the Company has (1) restricted cash of $101.8 million inclusive of interest earned to date, held in escrow and (2) the P&A Notes Receivable of $15.8 million to settle future asset retirement obligations. These assets are discussed in Note 1 — Organization, Nature of Business and Basis of Presentation. During the three and nine months ended September 30, 2023, the Company recognized interest income of $0.4 million and $1.0 million, respectively, related to the P&A Notes Receivable.