Asset Retirement Obligations

12 Months Ended

Dec. 31, 2019

Asset Retirement Obligation Disclosure [Abstract]

Note 9. Asset Retirement Obligations

The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment of wells and related facilities. The following table presents the changes in the asset retirement obligations for the years ended December 31, 2019 and 2018, the period from May 5, 2017 through December 31, 2017 and the period from January 1, 2017 through May 4, 2017 (in thousands):

				Successor						Predecessor
	For the			For the			Period from			Period from
	Year Ended			Year Ended			May 5, 2017			January 1, 2017
	December 31,			December 31,			through			through
	2019			2018			December 31, 2017			May 4, 2017
Asset retirement obligations at beginning of period	$	76,344		$	100,173		$	96,127		$	155,702
Liabilities added from acquisition or drilling (1)		9,497			89			191			6
Liabilities removed upon sale of wells		—			(15,702	)		—			—
Liabilities settled		(259	)		(767	)		(633	)		(164	)
Accretion expense		5,559			5,711			4,384			3,407
Revision of estimates (2)		(52	)		(13,160	)		104			104
Asset retirement obligation at end of period		91,089			76,344			100,173			159,055
Fresh start adjustment (3)		—			—			—			(62,928	)
Less: Current Portion		623			477			713			941
Asset retirement obligations - long-term portion	$	90,466		$	75,867		$	99,460		$	95,186

(1)	The increase in liabilities added from acquisition or drilling for the year ended December 31, 2019, is primarily due to the Merger with Midstates.

(2)	The decrease in revision of estimates for the year ended December 31, 2018 is primarily due to receiving new cost estimates from third parties regarding the estimated plugging and abandonment costs.

(3)	As a result of the application of fresh start accounting, the Successor recorded its asset retirement obligation at fair value as of the Effective Date.