Property, Plant and Equipment

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

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



	June 30, 2017			December 31, 2016
Oil and natural gas properties
Proved	$	934,248		$	840,201
Unproved	111,202			74,937
Total oil and natural gas properties	1,045,450			915,138
Less accumulated depreciation, depletion and impairment	(404,143		)	(353,030		)
Net oil and natural gas properties capitalized costs	641,307			562,108
Land	5,200			5,100
Non-oil and natural gas equipment	158,944			166,010
Buildings and structures	88,503			88,603
Total	252,647			259,713
Less accumulated depreciation and amortization	(10,356		)	(3,889		)
Other property, plant and equipment, net	242,291			255,824
Total property, plant and equipment, net	$	883,598		$	817,932

The Predecessor Company recorded impairments on its oil and natural gas properties of $251.0 million and $359.4 million during the three and six-month periods ended June 30, 2016 as a result of its quarterly full cost ceiling analysis. No full cost ceiling impairments have been recorded in the 2017 period.

In the first quarter of 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, resulting in impairments of $0.4 million and $3.0 million for the three and six-month periods ended June 30, 2017. The Company disposed of approximately $0.7 million of these assets during the second quarter of 2017 and expects to dispose of the remaining assets during 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 $1.0 million and $6.2 million toward this obligation during the three and six-month periods ended June 30, 2016. Effective June 6, 2016, the Bankruptcy Court issued orders allowing the Company to reject certain long- term contracts, including this drilling carry commitment. 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.