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Property, Plant and Equipment | 9 Months Ended
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Sep. 30, 2017
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands):
| September 30, 2017 |  | December 31, 2016
Oil and natural gas properties |  |  |
Proved | $ | 1,004,370 |  |  | $ | 840,201 |
Unproved | 103,533 |  |  | 74,937 |
Total oil and natural gas properties | 1,107,903 |  |  | 915,138 |
Less accumulated depreciation, depletion and impairment | (432,564 | ) |  | (353,030 | )
Net oil and natural gas properties capitalized costs | 675,339 |  |  | 562,108 |
Land | 5,200 |  |  | 5,100 |
Electrical infrastructure | 131,100 |  |  | 130,242 |
Other non-oil and natural gas equipment | 26,956 |  |  | 35,768 |
Buildings and structures | 88,503 |  |  | 88,603 |
Total | 251,759 |  |  | 259,713 |
Less accumulated depreciation and amortization | (13,339 | ) |  | (3,889 | )
Other property, plant and equipment, net | 238,420 |  |  | 255,824 |
Total property, plant and equipment, net | $ | 913,759 |  |  | $ | 817,932 |
Impairments. The Predecessor Company recorded impairments on its oil and natural gas properties of $298.0 million and $657.4 million during the three and nine-month periods ended September 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 $0.5 million and $3.5 million for the three and nine-month periods ended September 30, 2017. The Company disposed of approximately $0.8 million of these assets during the nine-month period ended September 30, 2017, and expects to dispose of the majority of the remaining assets during the fourth quarter of 2017. The Company reviews non-oil and natural gas equipment and buildings and structures for recoverability whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. The Company recognizes an impairment loss if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. During the third quarter of 2016, the electrical transmission system was reviewed and was determined to not be recoverable due to a decrease in projected Mid-Continent production volumes supporting the system’s usage. Further, the carrying value exceeded its fair value. The Company recorded an impairment of $55.6 million on its electrical transmission system during the three and nine-month periods ended September 30, 2016, and a $1.7 million impairment on compressors and various other midstream services equipment during the nine-month period ended September 30, 2016, due primarily to the determination that their future use was limited. Fair value measurements for the electrical asset impairment discussed above were based on replacement cost. As the fair value was estimated using the cost approach, inputs were based on the cost to a market participant buyer to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. These inputs were not observable in the market and were classified as Level 3 in the fair value hierarchy. The Company disposed of certain drilling and oilfield services assets previously classified as held for sale during 2016 and recorded losses on the sale of those assets of $0.1 million and $1.7 million for the three and nine-month periods ended September 30, 2016, which are included in other operating (income) expense in the accompanying unaudited condensed consolidated statements of operations. 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. 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.

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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