Supplemental Disclosures to the Financial Statements

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Disclosures to the Financial Statements

Other current assets reported on the condensed consolidated balance sheets included the following:


	September 30, 2020		December 31, 2019
	(in thousands)
Prepaid expenses	$	4,526	$	4,577

Materials and supplies	11,731		10,544
Oil inventories	3,409		3,432
Other	652		846
Total other current assets	$	20,318	$	19,399

Other non-current assets at September 30, 2020 and December 31, 2019, included approximately $8 million and $11 million of deferred financing costs, net of amortization, respectively.

Accounts payable and accrued expenses on the condensed consolidated balance sheets included the following:


	September 30, 2020		December 31, 2019
	(in thousands)
Accounts payable-trade	$	6,596	$	13,986
Accrued expenses	45,841		57,078
Royalties payable	12,282		25,385

Taxes other than income tax liability	12,390		9,150
Accrued interest	3,500		10,500
Dividends payable	5		9,888
Asset retirement obligation - current portion	13,700		25,208
Other	923		616
Total accounts payable and accrued expenses	$	95,237	$	151,811

We reclassified certain accrued expenses to accounts payable trade accounts for the prior period to conform to the current year presentation. These reclassifications had no impact on the financial statements.

The increase in the long-term portion of the asset retirement obligation from $124 million at December 31, 2019 to $136 million at September 30, 2020 was due to $7 million of accretion, $6 million of liabilities incurred and

reclassification of $12 million from the current to long-term portion due to changes in anticipated spending and regulatory requirements. These increases were partially offset by $12 million of liabilities settled during the period.

Other non-current liabilities at September 30, 2020 and December 31, 2019 included approximately $35 million and $33 million of greenhouse gas liability, respectively.

Supplemental Information on the Statement of Operations

For the three months ended September 30, 2020, other operating expense was $2 million and mainly consisted of excess abandonment costs and oil tank storage fees. For three months ended September 30, 2019 other operating income was $1 million and mainly consisted of proceeds from the sale of assets, partially offset by excess abandonment costs in 2019.

For the nine months ended September 30, 2020 and 2019 other operating expenses were $3 million and $4 million, respectively. These other operating expenses mainly consist of excess abandonment costs, oil tank storage fees, and drilling rig standby charges, partially offset by tax and other refunds in 2020 and excess abandonment costs in 2019.

Supplemental Cash Flow Information

Supplemental disclosures to the condensed consolidated statements of cash flows are presented below:




	Nine Months Ended September 30,
	2020		2019
	(in thousands)
Supplemental Disclosures of Significant Non-Cash Investing Activities:
Material inventory transfers to oil and natural gas properties	$	1,013	$	8,474
Supplemental Disclosures of Cash Payments (Receipts):
Interest, net of amounts capitalized	$	29,962	$	30,136
Income taxes	$	222	$	—

Cash and cash equivalents consist primarily of highly liquid investments with original maturities of three months or less and are stated at cost, which approximates fair value. As part of our cash management system, we use a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued but not yet presented to banks may result in overdraft balances for accounting purposes and have been included in "accounts payable and accrued expenses" in the condensed consolidated balance sheets, amounts are immaterial for these periods.