(4)

Goodwill

Our goodwill relates to the excess of purchase price over amounts assigned to assets and liabilities from the MRD Merger. In fourth quarter 2016, we reviewed our goodwill balance for impairment in accordance with our accounting policy. Based on the length of time between the closing of the MRD Merger and November 1 (the date of our annual impairment analysis), we performed a qualitative assessment to assess whether it was more likely than not that the fair value of our reporting unit was less than the carrying value by examining the relevant events and circumstances that could have a negative impact on goodwill, such as macroeconomic conditions, industry and market conditions, including current commodity prices, earnings and cash flows, overall financial performance and other relevant entity specific events. Based on our qualitative assessment of these circumstances, we concluded it was not more likely than not, that the fair value of our reporting unit was less than the carrying value and therefore, a full impairment test was not warranted.