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DIVESTITURES
9 Months Ended
Sep. 30, 2019
DIVESTITURES [Abstract]  
DIVESTITURES

NOTE 5. DIVESTITURES

During January 2019, the Company sold all of its 4.2 million shares of common stock of Magnolia Oil & Gas Corporation (NYSE: MGY) (“Magnolia”) for net proceeds of $51.7 million.

In January 2019, the Company closed on the sale of certain oil and gas properties in the Mid-Continent area to a third party for total consideration of $1.8 million, net of purchase price adjustments. The Company did not record a gain, loss or impairment related to this sale.

 

In April 2019, the Company closed on the sale of its (i) oil and gas properties in the San Juan Basin and (ii) membership interests in EnerVest Mesa, LLC, a wholly-owned subsidiary of EV Properties, L.P., to a third party for total consideration of $36.9 million, net of preliminary purchase price adjustments. The transaction had an effective date of October 1, 2018. The Company recognized an impairment of $25.3 million for these properties during the nine months ended September 30, 2019.

 

Also, during the second quarter of 2019, the Company closed on the sale of certain oil and gas properties in the Mid-Continent area to a third party for total consideration of $2.3 million, net of preliminary purchase price adjustments, which included $0.9 million of preferential rights to purchase that were exercised by other working interest owners. The transaction, excluding the preferential rights, closed in April 2019 and had an effective date of October 1, 2018. The sale of the assets associated with the preferential rights closed in June 2019. The Company recognized an impairment of $1.7 million for these properties during the nine months ended September 30, 2019.

 

In July 2019, the Company entered into a definitive agreement to sell substantially all of its interests in the Barnett Shale to a third party for total consideration of $72.0 million (subject to purchase price adjustments). In September 2019, the Company closed on the sale of the majority of these properties in the Barnett Shale for total consideration of $62.4 million, net of preliminary purchase price adjustments. The sale of the remaining oil and gas properties in the Barnett Shale are expected to close during the fourth quarter of 2019 for total consideration of $6.4 million (subject to purchase price adjustments). The Company recognized an impairment of $75.3 million for these properties during the nine months ended September 30, 2019. As of September 30, 2019, the remaining oil and gas properties in the Barnett Shale were classified as assets held for sale; $6.7 million of the assets held for sale and $0.3 million of the asset retirement obligations classified as liabilities related to assets held for sale in the unaudited condensed consolidated balance sheet were attributable to these unsold properties.

 

In September 2019, the Company closed on the sale of certain oil and gas properties in the Mid-Continent area to a third party for total consideration of $5.3 million, net of preliminary purchase price adjustments. The Company recognized a gain of $0.6 million related to this sale.

 

Additionally, in September 2019, the Company entered into a definitive agreement to sell all of its interest in the Monroe Field in Northern Louisiana for total consideration of $0.2 million (subject to purchase price adjustments). The transaction closed in November 2019. The Company recognized an impairment of $1.6 million for these properties during the nine months ended September 30, 2019. As of September 30, 2019, these oil and gas properties were classified as assets held for sale; $2.6 million of the assets held for sale and $2.4 million of the asset retirement obligations classified as liabilities held for sale in the unaudited condensed consolidated balance sheet were attributable to these properties.

 

In October 2019, the Company entered into a definitive agreement to sell all of its interest in the Permian Basin for total consideration of $3.0 million (subject to purchase price adjustments). The transaction is expected to close during the fourth quarter of 2019. The Company recognized an impairment of $8.1 million for these properties during the nine months ended September 30, 2019.