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Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Note 15—Commitments and Contingencies

(a) Legal Matters

From time to time, the Company may be a party to legal proceedings arising in the ordinary course of business. Management does not believe that a material loss is probable as a result of such proceedings.

During the nine months ended September 30, 2019, the Company removed an accrued liability related to certain litigation involving MHP (See Note 6— Assets Held for Sale and Discontinued Operations).

(b) Environmental Matters

The Company is subject to numerous laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. To the extent laws are enacted or other governmental action is taken that restricts drilling or imposes environmental protection requirements that result in increased costs to the oil and natural gas industry in general, the business and prospects of the Company could be adversely affected.

As a result of the BRMR Merger, effective as of February 28, 2019, the Company assumed commitments related to certain firm transportation and gas processing, gathering and compression service agreements entered into by Triad Hunter, LLC (“Triad Hunter”), a wholly owned subsidiary of BRMR, as shown below (in thousands):

	Firm transportation⁽ⁱ⁾		Gas processing, gathering, and compression services⁽ⁱⁱ⁾		Total
Year Ending December 31:
2019	$	14,562	$	12,873	$	27,435
2020		19,416		17,133		36,549
2021		19,416		17,087		36,503
2022		19,416		17,087		36,503
2023		18,047		16,561		34,608
Thereafter		92,395		139,545		231,940
Total	$	183,252	$	220,286	$	403,538

(i)

Firm transportation - Firm transportation agreements with various pipelines to facilitate the delivery of production to market. These contracts commit the Company to transport minimum daily natural gas volumes at a negotiated rate or pay for any deficiencies at a specified reservation fee rate. The amounts in this table represent the minimum daily volumes at the reservation fee rate. The values in the table represent the gross amounts that the Company is committed to pay and does not deduct amounts that other parties are responsible for as a result of cost sharing arrangements with working interest partners. The Company will record in its Consolidated Financial Statements its proportionate share of costs based on its working interest.

(ii)

Gas processing, gathering, and compression services - Contractual commitments for gas processing, gathering and compression service agreements represent minimum commitments under long-term gas processing and gathering agreements as well as various gas compression agreements. The values in the table represent the gross amounts that the Company is committed to pay and does not deduct amounts that other parties are responsible for as a result of cost sharing arrangements with working interest partners. The Company will record in its Consolidated Financial Statements its proportionate share of costs based on its working interest.