Asset Retirement Obligations

12 Months Ended

Dec. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

(8)Asset Retirement Obligations

Our asset retirement obligations (“ARO”) primarily represent the present value of the estimated amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well lives. The inputs are calculated based on historical data as well as current estimated costs. The following is a reconciliation of our liability for plugging and abandonment costs as of December 31, 2021 and 2020 (in thousands):

	2021			2020
Beginning of period	$	79,822		$	251,076
Liabilities incurred		73			1,483
Acquisitions		—			123
Liabilities settled		(8,197	)		(4,634	)
Disposition of wells		—			(176,748	)
Accretion expense		5,511			7,518
Change in estimate		18,627			1,004
End of period		95,836			79,822
Less current portion		(5,310	)		(6,689	)
Long-term asset retirement obligations	$	90,526		$	73,133

Accretion expense is recognized as an increase to depreciation, depletion and amortization expense in the accompanying consolidated statements of operations.