Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Pirate Divestiture

On March 22, 2019, Lonestar completed the divestiture of its Pirate assets in Wilson County for an adjusted cash purchase price of $11.5 million, after closing adjustments, to a private third-party. The assets were comprised of 3,400 net undeveloped acres, six producing wells, held seven proved undeveloped locations as of the closing date, and were producing approximately 200 BOE/d. The Company recognized a loss of $33.5 million during the first quarter of 2019 in conjunction with the sale of the assets.

Sooner Acquisition

On November 15, 2018, Lonestar completed the acquisition of oil and gas properties in the Sugarkane Field in DeWitt County, Texas, for $38.7 million, before closing adjustments, from Sabine Oil & Gas Corporation and Alerion Gas AXA, LLC (the “Sooner Acquisition”). The acquisition was financed with funds available from the Company's Credit Facility, as well as cash from operations. The Sooner Acquisition was accounted for as an asset acquisition. As such, the properties were recorded based on the fair value of the total consideration transferred on the acquisition date, and all of the value of the transaction was allocated to proved oil and gas properties. Transaction costs of $0.3 million were capitalized as a component of the cost of the assets acquired.

Corporate Headquarters

On August 2, 2017, Lonestar closed on the purchase of an office building in Fort Worth, Texas, with an acquisition price approximating $10 million, to which the Company relocated its corporate operations in February 2018. In light of the relocation, the Company recorded an impairment charge of $1.6 million in Other Expense during the first quarter of 2018, primarily reflecting the remaining future minimum rentals of the lease for the Company’s prior corporate office from the date of relocation to the end of the remaining lease term. In February 2019, the Company acquired an adjacent property for $2.0 million.