Discontinued Operations and Assets Held For Sale

6 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held For Sale

Discontinued Operations and Assets Held For Sale

Kansas Reporting Unit

On March 10, 2021, the Company entered into a PSA to divest of the Kansas Reporting Unit for an agreed upon purchase price of $3.5 million before certain closing adjustments. In addition, the Company also agreed to assign to the buyer its lease associated with Tengasco's former corporate office in Greenwood Village, Colorado. With Tengasco qualifying as a business and the Kansas Reporting Unit making up a significant portion of the assets of Tengasco, the Company concluded that the transaction met the requirements of assets held for sale and discontinued operations upon the acquisition date. The effective date of the sale was March 1, 2021 and the sale closed on April 2, 2021 for the agreed upon purchase price, plus approximately $0.2 million in net closing adjustments.

The following table presents the amounts reported in the condensed consolidated statement of operations as discontinued operations:

Three Months Ended March 31, 2021	Tengasco
	($ in thousands)
Oil and natural gas sales	$	—
Total revenues	—
Lease operating expenses	115
Goodwill impairment	18,516
Total expenses	18,631
Loss from discontinued operations before income taxes	(18,631)
Income tax benefit	25
Net loss from discontinued operations, net of tax	$	(18,606)

For further discussion of revenues and expenses included in discontinued operations, see further discussion in Note 4 - Business Combinations.

The following table presents the carrying amount of assets and liabilities associated with discontinued operations reported on the condensed consolidated balance sheets as of March 31, 2021:

	Tengasco
Assets	($ in thousands)
Accounts receivable	$	2
Prepaid expenses and other current assets	101
Total Current Assets Associated with Discontinued Operations	103
Oil and natural gas properties, net (successful efforts)	4,526
Goodwill	540
Total Non-Current Assets Associated with Discontinued Operations	5,066
Total Assets Associated with Discontinued Operations	$	5,169
Liabilities
Accounts Payable	$	63
Accrued liabilities	32
Total Current Liabilities Associated with Discontinued Operations	95
Asset retirement obligations	1,607
Total Non-Current Liabilities Associated with Discontinued Operations	1,607
Total Liabilities Associated with Discontinued Operations	$	1,702