Sales of Oil and Natural Gas Properties

12 Months Ended

Dec. 31, 2019

Gain (Loss) on Disposition of Oil and Gas Property [Abstract]

Sales of Oil And Natural Gas Properties

In 2019, the Company closed sales of certain leasehold acreage for proceeds of $38.5 million, including customary purchase price adjustments. Upon closing these sales, the Company recognized no gain or loss in accordance with the guidance for partial sales of oil and natural gas properties under ASC Topic 932, Extractive Activities—Oil and Gas (“ASC 932”).

In 2019, the Company completed the sale of certain property, plant and equipment for proceeds of $2.8 million. The Company recognized a $2.1 million gain on the sale.

In 2018, the Company closed the sale of certain leasehold, surface and mineral acreage for proceeds of $34.4 million, subject to customary purchase price adjustments. The Company recognized a $5.2 million gain on the sale.

In 2018, the Company also closed sales of certain leasehold acreage for proceeds of $188.2 million, including customary purchase price adjustments. As of December 31, 2017, the Company classified certain of these assets as held for sale. Upon closing these sales, the Company recognized no gain or loss in accordance with the guidance for partial sales of oil and natural gas properties under ASC 932.

In 2018, Pacesetter closed the sale of all of its physical assets for consideration equivalent to $13.1 million, consisting of $11.0 million in cash and a $2.1 million term loan that was repaid in the first quarter of 2019. Upon the liquidation of Pacesetter, its remaining assets will be distributed to its members, including Parsley Energy Operations, LLC (“Parsley Energy Operations”), a wholly owned subsidiary of Parsley LLC. The Company recognized a $1.2 million gain on the sale.

In 2017, the Company sold 21,939 gross (7,476 net) acres for total proceeds of $30.5 million and recognized a $14.3 million loss on the divestitures.