Property and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

The historical costs of our property and equipment and related accumulated depreciation balances were as follows at the dates indicated (in thousands):


	Estimated
	Useful Life	December 31,
	in Years	2018		2017

Tractors and trailers ⁽¹⁾	5 – 6	$	96,523	$	88,065
Field equipment	2 – 5	20,725		18,490
Buildings	5 – 39	15,746		15,727
Office equipment	2 – 5	1,863		1,929
Land		1,790		1,790
Construction in progress		2,794		275
Total		139,441		126,276
Less accumulated depreciation		(94,818)		(96,914)
Property and equipment, net		$	44,623	$	29,362

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(1) Amounts include tractors held under capital leases in our crude oil marketing segment. At December 31, 2018 and 2017, gross property and equipment associated with assets held under capital leases were $4.7 million and $1.8 million, respectively. Accumulated amortization associated with assets held under capital leases were $0.7 million and $0.1 million at December 31, 2018 and 2017, respectively (see Note 15 for further information).

Components of depreciation, depletion and amortization expense were as follows for the periods indicated (in thousands):


	Year Ended December 31,
	2018		2017		2016
Depreciation, depletion and amortization, excluding amounts
under capital leases	$	10,112	$	13,478	$	18,792
Amortization of property and equipment under capital leases	542		121		—
Total depreciation, depletion and amortization	$	10,654	$	13,599	$	18,792

Asset Acquisition

On October 1, 2018, we completed the purchase of a trucking company for $10.0 million that owned approximately 113 tractors and 126 trailers operating in the Red River area in North Texas and South Central Oklahoma. This acquisition is included in our crude oil marketing segment from the date of the acquisition. We incurred approximately $0.3 million of acquisition costs in connection with this acquisition, which was included in the allocation of the purchase price to the assets acquired. The purchase price of approximately $10.3 million was allocated on October 1, 2018 as follows (in thousands):



Tractors	$	4,799
Trailers	4,901
Field equipment	381
Materials and supplies	191
Total	$	10,272

Gains on Sales of Assets

We sold certain used trucks and equipment and recorded net pre-tax gains as follows for the periods indicated (in thousands):


	Year Ended December 31,
	2018		2017		2016

Gains on sales of used trucks and equipment	$	1,240	$	594	$	1,966

Crude Oil and Natural Gas Exploration and Production Assets

Our subsidiary that owned the upstream crude oil and natural gas exploration and production assets was deconsolidated effective with its bankruptcy filing in April 2017 and subsequently accounted for as a cost method investment (see Note 4). These upstream crude oil and natural gas exploration and production assets were sold during the third quarter of 2017. We have no further interest in these assets.

Impairment provisions included in upstream crude oil and natural gas exploration and production segment operating losses were as follows for the periods indicated (in thousands):


	Year Ended December 31,
	2018		2017		2016

Producing property impairments	$	—	$	—	$	30
Non-producing property impairments	—		3		283
Total crude oil and natural gas impairments	$	—	$	3	$	313

Asset Retirement Obligations

We record AROs for the estimated retirement costs associated with certain tangible long-lived assets. The estimated fair value of AROs are recorded in the period in which they are incurred and the corresponding cost capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the asset. If the liability is settled for an amount other than the recorded amount, an increase or decrease to expense is recognized. A summary of our AROs is presented as follows for the periods indicated (in thousands):


	Year Ended December 31,
	2018		2017		2016

ARO liability beginning balance	$	1,273	$	2,329	$	2,469
Liabilities incurred	252		18		162
Accretion of discount	36		58		92
Liabilities settled	(36)		(261)		(394)
Deconsolidation of subsidiary ⁽¹⁾	—		(871)		—
ARO liability ending balance	$	1,525	$	1,273	$	2,329

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(1) Relates to our upstream crude oil and natural gas exploration and production subsidiary that was deconsolidated in April 2017 as a result of its bankruptcy filing (see Note 4 for further information).