Asset Retirement Obligations

3 Months Ended

Mar. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

(9) ASSET RETIREMENT OBLIGATIONS

Our asset retirement obligations primarily represent the estimated present value of the 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. A reconciliation of our liability for plugging and abandonment costs for three months ended March 31, 2023 and the year ended December 31, 2022 is as follows (in thousands):


	Three Months Ended March 31, 2023			Year Ended December 31, 2022
Beginning of period	$	109,851		$	95,836
Liabilities incurred		920			2,589
Liabilities settled		(104	)		(10,650	)
Accretion expense		1,455			6,569
Change in estimate		(129	)		15,507
End of period		111,993			109,851
Less current portion		(4,570	)		(4,570	)
Long-term asset retirement obligations	$	107,423		$	105,281

Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations.