Assets Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2019

Discontinued Operations And Disposal Groups [Abstract]

Assets Held for Sale and Discontinued Operations

Note 5—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 December 31, 2019:

(in thousands)	December 31, 2019
Accounts receivable	$	343
Other current assets		704
Total current assets held for sale	$	1,047
Proved oil and gas properties, net	$	9,528
Other noncurrent assets		137
Total noncurrent assets held for sale	$	9,665
Accounts payable	$	2,067
Accrued liabilities		570
Other current liabilities		178
Total current liabilities associated with assets held    for sale	$	2,815
Asset retirement obligations	$	6,488
Other liabilities		525
Total noncurrent liabilities associated with assets    held for sale	$	7,013

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 December 31, 2019.  The Company included the results of operations for MHP for the year ended December 31, 2019 in discontinued operations as follows:

(in thousands)	For the Year Ended December 31, 2019
Revenues	$	7,160
Depreciation, depletion, amortization and accretion		(550	)
Other operating expenses		(5,296	)
Other income		2
Income from discontinued operations, net of tax		1,316
Gain on disposal of discontinued operations, net of tax		—
Income from discontinued operations, net of tax	$	1,316

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 year ended December 31, 2019.

Total operating and investing cash flows of discontinued operations for the year ended December 31, 2019 were as follows:

(in thousands)	For the Year Ended December 31, 2019
Net cash provided by operating activities	$	425
Net cash provided by investing activities	$	26