Asset Retirement Obligations

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

(10) 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 the three months ended March 31, 2021 and the year ended December 31, 2020 is as follows (in thousands):

	Three Months Ended March 31, 2021			Year Ended December 31, 2020
Beginning of period	$	79,822		$	251,076
Liabilities incurred		28			1,483
Acquisitions		—			123
Liabilities settled		(720	)		(4,634	)
Disposition of wells		—			(176,748	)
Accretion expense		1,375			7,518
Change in estimate		811			1,004
End of period		81,316			79,822
Less current portion		(6,689	)		(6,689	)
Long-term asset retirement obligations	$	74,627		$	73,133

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