Asset Retirement Obligations

12 Months Ended

Dec. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

(8)

Asset Retirement Obligations

ARO primarily represents 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, 2022 and 2021 (in thousands):


	2022			2021
Beginning of period	$	95,836		$	79,822
Liabilities incurred		2,589			73
Liabilities settled		(10,650	)		(8,197	)
Accretion expense		6,569			5,511
Change in estimate		15,507			18,627
End of period		109,851			95,836
Less current portion		(4,570	)		(5,310	)
Long-term asset retirement obligations	$	105,281		$	90,526

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