Property and Equipment

6 Months Ended

Jun. 30, 2020

Property and Equipment

Property and Equipment

(8) Property and Equipment

The Company’s investment in property and equipment for the periods presented is as follows:

	Estimated	December 31,		June 30,
(in thousands)	useful lives	2019		2020
Land	n/a	$	23,549		23,582
Gathering systems and facilities	40-50 years(1)		2,375,241		2,577,408
Permanent buried pipelines and equipment	7-20 years		602,230		537,173
Surface pipelines and equipment	1-7 years		48,594		42,919
Landfill	n/a(2)		1,244		1,244
Heavy trucks and equipment	3-5 years		6,617		5,919
Above ground storage tanks	5-10 years		3,418		1,868
Construction-in-progress	n/a		300,165		163,575
Total property and equipment			3,361,058		3,353,688
Less accumulated depreciation			(87,648)		(104,045)
Property and equipment, net		$	3,273,410		3,249,643

(1) Gathering systems and facilities are recognized as a single-leased asset with no residual value.

(2) Amortization of landfill costs is recorded over the life of the landfill on a units-of-consumption basis.

Due to the decline in commodity prices and industry environment, the Company evaluated its assets for impairment during the first quarter of 2020. As a result of this evaluation, the Company recorded an impairment expense of $89 million, which included an $83 million impairment expense to its permanent buried pipelines and equipment and a $6 million impairment expense to its surface pipelines and equipment.