Supplemental Disclosures to the Financial Statements

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Disclosures to the Financial Statements

Other current assets reported on the condensed consolidated balance sheets included the following:


	September 30, 2021		December 31, 2020
	(in thousands)
Assets held for sale	$	32,326	$	—
Prepaid expenses	25,024		3,592

Materials and supplies	9,711		11,666
Oil inventories	3,272		3,490
Other	226		652
Total other current assets	$	70,559	$	19,400

Other non-current assets at September 30, 2021, included approximately $10.4 million of costs in escrow for the C&J Acquisition (see Note 9) and $5 million of deferred financing costs, net of amortization. At December 31, 2020, other non-current assets included approximately $7 million of deferred financing costs, net of amortization.

Accounts payable and accrued expenses on the condensed consolidated balance sheets included the following:


	September 30, 2021		December 31, 2020
	(in thousands)
Accounts payable-trade	$	11,762	$	11,055
Accrued expenses	58,095		43,452
Royalties payable	20,469		15,150
Greenhouse gas liability - current portion	—		35,554
Taxes other than income tax liability	14,671		10,118
Accrued interest	3,597		10,783
Dividends payable	4,803		—
Asset retirement obligations - current portion	20,000		25,000
Liabilities related to assets held for sale	20,428		—
Other	766		873
Total accounts payable and accrued expenses	$	154,591	$	151,985

The decrease of $20 million in the long-term portion of the asset retirement obligations from $135 million at December 31, 2020 to $115 million at September 30, 2021 was due to a $20 million reclassification of long-term to current liabilities related to assets held for sale, $12 million of liabilities settled during the period, and a $2 million reduction related to property sales. These decreases were offset by $8 million of accretion, a $5 million change from short-term to long-term liabilities due to changes in anticipated spending and $1 million of liabilities incurred.

Other non-current liabilities at September 30, 2021 included approximately $25 million greenhouse gas liability.

Supplemental Information on the Statement of Operations

For the three months ended September 30, 2021, other operating expenses was $4 million and mainly consisted of expensing $3 million of unamortized debt issuance costs related to the termination of the 2017 RBL Facility. For the three months ended September 30, 2020, other operating expenses was $2 million and mainly consisted of excess abandonment costs and oil tank storage fees.

For the nine months ended September 30, 2021 and 2020, other operating expenses were $5 million and $3 million, respectively. For the nine months ended September 30, 2021, other operating expenses mainly consisted of expensing $3 million of unamortized debt issuance costs related to the termination of the 2017 RBL Facility, approximately $3 million of supplemental property tax assessments, royalty audit charges and tank rental costs and $1 million of various other costs such as abandonment costs and legal fees, partially offset by $2 million of income from employee retention credits. For the nine months ended September 30, 2020, other operating expenses included $2 million of excess abandonment costs, $1 million of oil tank storage fees, and $1 million of drilling rig standby charges, partially offset by $1 million of taxes and other refunds.

Supplemental Cash Flow Information

Supplemental disclosures to the condensed consolidated statements of cash flows are presented below:




	Nine Months Ended September 30,
	2021		2020
	(in thousands)
Supplemental Disclosures of Significant Non-Cash Investing Activities:
Material inventory transfers to oil and natural gas properties	$	2,916	$	1,013
Supplemental Disclosures of Cash Payments (Receipts):
Interest, net of amounts capitalized	$	29,114	$	29,962
Income taxes payments	$	294	$	222

Cash and cash equivalents consist primarily of highly liquid investments with original maturities of three months or less and are stated at cost, which approximates fair value. As part of our cash management system, we use a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued but not yet presented to banks may result in overdraft balances for accounting purposes and have been included in “accounts payable and accrued expenses” in the condensed consolidated balance sheets, amounts are none as of September 30, 2021 and approximately $2 million as of December 31, 2020.