Assets Held for Sale and Discontinued Operations

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019:

(in thousands)	March 31, 2020		December 31, 2019
Accounts receivable	$	370	$	343
Other current assets		473		704
Total current assets held for sale	$	843	$	1,047
Proved oil and gas properties, net	$	2,800	$	9,528
Other noncurrent assets		107		137
Total noncurrent assets held for sale	$	2,907	$	9,665
Accounts payable	$	1,700	$	2,067
Accrued liabilities		719		570
Other current liabilities		86		178
Total current liabilities associated with assets held    for sale	$	2,505	$	2,815
Asset retirement obligations	$	6,645	$	6,488
Other liabilities		524		525
Total noncurrent liabilities associated with assets    held for sale	$	7,169	$	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 the three months ended March 31, 2020 and 2019.  The Company included the results of operations for MHP for the three months ended March 31, 2020 and 2019 in discontinued operations as follows:

(in thousands)	For the Three Months Ended March 31,
	2020			2019
Revenues	$	1,519		$	949
Impairment of proved properties		(6,849	)		—
Depreciation, depletion, amortization and accretion		(169	)		(52	)
Other operating expenses		(2,258	)		(1,079	)
Loss from discontinued operations, net of tax		(7,757	)		(182	)
Gain on disposal of discontinued operations, net of tax		—			—
Loss from discontinued operations, net of tax	$	(7,757	)	$	(182	)

During the first quarter of 2020, the Company determined that due to the depressed commodity price environment, the carrying value of MHP’s proved oil and gas properties was no longer fully recoverable.  The Company recorded an impairment of $6.8 million of its proved oil and gas properties in order to present the net assets and liabilities of MHP at the lower of carrying value and fair market value less costs to sell as of March 31, 2020.

Total operating and investing cash flows of discontinued operations for the three months ended March 31, 2020 and 2019 were as follows:

(in thousands)	Three Months Ended March 31,
	2020			2019
Net cash provided by operating activities	$	373		$	1,046
Net cash provided by (used in) investing activities	$	(66	)	$	1