Assets Held for Sale and Discontinued Operations

6 Months Ended

Jun. 30, 2019

Discontinued Operations And Disposal Groups [Abstract]

Assets Held for Sale and Discontinued Operations

Note 6—Assets Held for Sale and Discontinued Operations

Assets Held for Sale

As a result of the BRMR Merger, the Company acquired certain assets that met the criteria for assets held for sale at the acquisition date, comprised of the net assets of Magnum Hunter Production, Inc. (“MHP”), a wholly-owned subsidiary of BRMR.  These assets are located primarily in Kentucky and Tennessee.

The following summarizes assets and liabilities held for sale at June 30, 2019:

(in thousands)	June 30, 2019
Accounts receivable	$	1,582
Other current assets		892
Total current assets held for sale	$	2,474
Proved oil and gas properties, net	$	8,540
Other noncurrent assets		208
Total noncurrent assets held for sale	$	8,748
Accounts payable	$	2,685
Accrued liabilities		1,619
Other current liabilities		539
Total current liabilities associated with assets held for sale	$	4,843
Asset retirement obligations	$	6,191
Other liabilities		581
Total noncurrent liabilities associated with assets held for sale	$	6,772

Discontinued Operations

The Company determined that the planned divestiture of MHP met the assets held for sale criteria and the criteria for classification as discontinued operations as of June 30, 2019.  The Company included the results of operations for MHP for the three and six months ended June 30, 2019 in discontinued operations as follows:

(in thousands)	For the Three Months Ended June 30, 2019			For the Six Months Ended June 30, 2019
Revenues	$	2,579		$	3,529
Depreciation, depletion, amortization and accretion		(160	)		(212	)
Other operating expenses		276			(804	)
Other income		10			10
Income from discontinued operations, net of tax		2,705			2,523
Gain on disposal of discontinued operations, net of tax		—			—
Income from discontinued operations, net of tax	$	2,705		$	2,523

The Company had maintained an accrued liability of $3.5 million related to litigation involving MHP and a third-party regarding certain royalty and overriding royalty deductions and related payments under several farm-out agreements.  The litigation concluded in April 2019 and, as a result, the Company removed the accrued liability and recognized corresponding income from discontinued operations for the three and six months ended June 30, 2019.

Total operating and investing cash flows of discontinued operations for the six months ended June 30, 2019 were as follows:

(in thousands)	For the Six Months Ended June 30, 2019
Net cash provided by operating activities	$	1,521
Net cash provided by investing activities	$	14