Asset Retirement Obligations

12 Months Ended

Dec. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

Lonestar recognizes its asset retirement obligations related to the plugging, abandonment and remediation of oil and gas producing properties. The present value of the estimated asset retirement costs has been capitalized as part of the carrying amount of the related long-lived assets. The liability has been accreted to its present value as of December 31, 2020 (Successor).

The following provides a reconciliation of activity in the asset retirement obligations for 2020 and 2019:


	Successor		Predecessor
In thousands	Month Ended December 31, 2020		Eleven Months Ended November 30, 2020		Year Ended December 31, 2019
Beginning asset retirement obligations	$	4,358	$	7,055	$	7,195
Wells drilled during the year	—		4		26


Wells sold during the year	—		—		(388)
Accretion expense	38		316		300
Revisions in estimated retirement obligations(1)	177		(3,017)		191
Wells plugged and abandoned during the year	—		—		(269)
Ending asset retirement obligations	$	4,573	$	4,358	$	7,055

(1)Revisions of previous estimates during months ended December 31, 2020 (Successor) and the year ended December 31, 2019 (Predecessor) are primarily attributable to changes in estimates of the timing of future costs for oilfield services required to plug and abandon wells. Revisions of previous estimates during the eleven months ended November 30, 2020 (Predecessor) are primarily due to the change in fair value resulting from the Company's fresh-start accounting (see Note 3. Fresh-Start Accounting)