Asset Retirement Obligations

9 Months Ended

Sep. 30, 2015

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Note 7. Asset Retirement Obligations

The Company has asset retirement obligations associated with the future plugging and abandonment of oil and natural gas properties and related facilities. The accretion of the asset retirement obligation is included in “Lease operating expense” in the Condensed Consolidated Statements of Operations. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives, and the discount rate.

The following table summarizes the Company’s asset retirement obligation transactions recorded during the nine months ended September 30, 2015, and in accordance with the provisions of FASB ASC Topic 410, Asset Retirement and Environmental Obligations (in thousands):

	2015
Asset retirement obligations at December 31, 2014	$	6,078
Liabilities incurred		104
Accretion expense		425
Property dispositions		(403	)
Liabilities settled		(65	)
Revision of estimates		24
Asset retirement obligations at September 30, 2015	$	6,163

Based on expected timing of settlement, $0.3 million of the asset retirement obligation is classified as current at September 30, 2015.