Asset Retirement Obligations

3 Months Ended

Mar. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONSFor the Company, asset retirement obligations represent the future abandonment costs of tangible assets, namely the plugging and abandonment of wells and land remediation. The fair value of a liability for an asset’s retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made and the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period. If the liability is settled for an amount other than the recorded amount, the difference is recorded in Other income (expense) in the Company’s condensed consolidated statements of operations.

The following table summarizes the changes in the Company’s asset retirement obligations for the three months ended March 31, 2020 (in thousands):

	March 31, 2020
Asset retirement obligations, beginning of period	$	23,439
Additional liabilities incurred	3,584
Accretion expense	435
Liabilities settled upon plugging and abandoning wells	(1,059)
Disposition of wells	(66)
Revision of estimates	2,780
Asset retirement obligations, end of period	$	29,113