Property, Plant and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property, plant and equipment consists of the following (in thousands):



	March 31, 2017			December 31, 2016
Oil and natural gas properties
Proved	$	882,946		$	840,201
Unproved	110,941			74,937
Total oil and natural gas properties	993,887			915,138
Less accumulated depreciation, depletion and impairment	(377,280		)	(353,030		)
Net oil and natural gas properties capitalized costs	616,607			562,108
Land	5,200			5,100
Non-oil and natural gas equipment	159,178			166,010
Buildings and structures	88,503			88,603
Total	252,881			259,713
Less accumulated depreciation and amortization	(7,063		)	(3,889		)
Other property, plant and equipment, net	245,818			255,824
Total property, plant and equipment, net	$	862,425		$	817,932

The Company recorded an impairment on its oil and natural gas properties of $108.4 million during the three-month period ended March 31, 2016 as a result of its quarterly full cost ceiling analysis.

At March 31, 2017, the Company classified its remaining drilling and oilfield services assets as held for sale in the other current assets line of the unaudited condensed consolidated balance sheet. The net realizable value of the assets was determined to be $4.4 million based on expected sales prices obtained from a third party. The carrying value of these assets exceeded the net realizable value by $2.5 million, resulting in an impairment for the three-month period ended March 31, 2017. The Company expects to dispose of these assets prior to the fourth quarter of 2017.

Drilling Carry Commitments. Under the terms of an agreement with Repsol E&P USA, Inc. (“Repsol”), the Predecessor Company had agreed to carry Repsol’s drilling and completion costs totaling up to approximately $31.0 million for wells drilled in an area of mutual interest. The Predecessor Company incurred $5.2 million toward this obligation during the three-month period ended March 31, 2016. Repsol filed a bankruptcy claim for this commitment, which was settled by the Company in the fourth quarter of 2016 for approximately $1.2 million. The Company was released from the remaining obligation by the Bankruptcy Court in conjunction with its bankruptcy proceedings.