Property and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

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

	Estimated
	Useful Life	December 31,
	in Years	2020		2019
Tractors and trailers	5 – 6	$	101,813	$	110,153
Field equipment	2 – 5	22,139		21,780
Finance lease ROU assets (1)	3 – 6	20,266		8,854
Pipeline and related facilities	20 – 25	21,265		—
Linefill and base gas (2)	N/A	3,333		—
Buildings	5 – 39	14,977		16,055
Office equipment	2 – 5	1,893		1,951
Land	N/A	1,790		1,790
Construction in progress	N/A	1,626		3,661
Total property and equipment, at cost		189,102		164,244
Less accumulated depreciation and amortization		(94,968)		(95,198)
Property and equipment, net		$	94,134	$	69,046

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(1)Our finance lease right-of-use (“ROU”) assets arise from leasing arrangements for the right to use various classes of underlying assets including tractors, trailers, a tank storage and throughput arrangement and office equipment (see Note 16 for further information). Accumulated amortization of the assets presented as “Finance lease ROU assets” was $5.0 million and $2.5 million as of December 31, 2020 and 2019, respectively.

(2)Linefill and base gas represents crude oil in the VEX pipeline (Note 6) and storage tanks we own, and the crude oil is recorded at historical cost.

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

	Year Ended December 31,
	2020		2019		2018
Depreciation and amortization, excluding amounts
under finance leases	$	16,026	$	14,833	$	10,112
Amortization of property and equipment under finance leases	2,547		1,808		542
Total depreciation and amortization	$	18,573	$	16,641	$	10,654

Gains on Sales of Assets

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

	Year Ended December 31,
	2020		2019		2018
Gains on sales of used tractors, trailers and equipment	$	1,859	$	1,400	$	1,240

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 is 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. The following table reflects a summary of our AROs for the periods indicated (in thousands):

	Year Ended December 31,
	2020		2019		2018
ARO liability at beginning of year	$	1,573	$	1,525	$	1,273
Liabilities incurred	—		17		252
Accretion of discount	49		48		36
Liabilities settled	(38)		(17)		(36)
AROs related to pipeline acquisition (see Note 6)	723		—		—
ARO liability at end of year	$	2,307	$	1,573	$	1,525