Assets Held for Sale and Discontinued Operations

9 Months Ended

Sep. 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 September 30, 2019:

(in thousands)	September 30, 2019
Accounts receivable	$	605
Other current assets		880
Total current assets held for sale	$	1,485

Proved oil and gas properties, net	$	8,552
Other noncurrent assets		172
Total noncurrent assets held for sale	$	8,724

Accounts payable	$	3,489
Accrued liabilities		525
Other current liabilities		554
Total current liabilities associated with assets held for sale	$	4,568

Asset retirement obligations	$	6,346
Other liabilities		554
Total noncurrent liabilities associated with assets held for sale	$	6,900

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 September 30, 2019. The Company included the results of operations for MHP for the three and nine months ended September 30, 2019 in discontinued operations as follows:

(in thousands)	For the Three Months Ended September 30, 2019			For the Nine Months Ended September 30, 2019
Revenues	$	1,874		$	5,402
Depreciation, depletion, amortization and accretion		(168	)		(380	)
Other operating expenses		(2,943	)		(3,738	)
Other income		—			2
Income (loss) from discontinued operations, net of tax		(1,237	)		1,286
Gain on disposal of discontinued operations, net of tax		—			—
Income (loss) from discontinued operations, net of tax	$	(1,237	)	$	1,286

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 nine months ended September 30, 2019.

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

(in thousands)

For the Nine Months Ended

September 30, 2019

Net cash provided by operating activities

1,189

Net cash provided by investing activities