DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 4 — DISCONTINUED OPERATIONS

Refer to Note 1, General - Upstream Sale, for background. The carrying amounts of the major classes of assets and liabilities of the disposal group related to discontinued operations are as follows:

	June 30, 2024		December 31, 2023
Current assets:
Upstream Pipe	$	—	$	4,279
Total current assets of discontinued operations	—		4,279
Non-current assets:
Property, plant and equipment, net	—		376,649
Total non-current assets of discontinued operations	—		376,649
Current liabilities:
Upstream accrued liabilities	—		7,584
Total current liabilities of discontinued operations	—		7,584
Non-current liabilities:
Asset retirement obligations	—		3,103
Total non-current liabilities of discontinued operations	$	—	$	3,103

Discontinued operations are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Natural gas sales	$	15,586	$	31,987	$	41,058	$	82,922
Operating expenses	9,040		20,848		22,161		38,293
Depreciation, depletion and amortization	16,517		24,489		36,664		45,981
General and administrative expenses	5,209		3,065		8,176		6,755
Interest expense, net	1,981		3		3,629		3
Loss on sale of upstream assets	84,185		—		84,185		—
Other Income, net	—		(1,075)		1,698		(1,192)
Loss from discontinued operations before tax	(101,346)		(15,343)		(115,455)		(6,918)
Income tax benefit (provision)	—		—		—		—
Loss from discontinued operations, net of tax	$	(101,346)	$	(15,343)	$	(115,455)	$	(6,918)

We recognized a loss on sale of upstream assets of approximately $84.2 million based on the preliminary settlement statement net proceeds. The final settlement statement will be executed during the fourth quarter of 2024.

DD&A, capital expenditures and significant operating and investing non-cash items related to discontinued operations are as follows:

	Six Months Ended June 30,
	2024		2023
Depreciation, depletion and amortization	$	36,664	$	45,981
Loss on sale of upstream assets	84,185		—
Acquisition and development of natural gas properties, net	9,625		95,231
Net proceeds from sale of upstream assets	249,421		—