Asset Retirement Obligations

9 Months Ended

Sep. 30, 2013

Asset Retirement Obligations [Abstract]

(4) Asset Retirement Obligations

The following table reconciles the beginning and ending aggregate recorded amount of our asset retirement obligations.


	Nine Months Ended
	September 30, 2013
	(in thousands)
Balance at December 31, 2012	$	235,110
Accretion expense		18,464
Liabilities assumed in acquisitions		10,355
Liabilities incurred		1,187
Revisions		63,462
Liabilities associated with assets sold		(3,965)
Liabilities settled		(36,843)
Balance at September 30, 2013		287,770
Less: End of period, current portion		47,482
End of period, noncurrent portion	$	240,288

During the three months ended September 30, 2013, we recorded a revision to our estimated asset retirement obligations (“ARO”) of $21.8 million related to our only remaining four non-producing wellbores in our non-operated deepwater properties. These increased deepwater abandonment costs are primarily attributable to changes in regulatory interpretations and enforcement by the Bureau of Safety and Environmental Enforcement in the deepwater that increased the required scope of work. As a result, we recorded an associated $21.8 million loss on abandonment activities, which is included in Other costs and expenses in our condensed consolidated statements of operations for the three and nine months ended September 30, 2013.

We revise our estimates of ARO as information about material changes to the liability becomes known. During the three months ended September 30, 2013, we recorded revisions to our ARO liability related to our shallower-water assets of $31.0 million. This does not affect current results of operations, but increases the carrying amount of our assets and will result in higher depreciation, depletion and amortization and accretion expense in future periods.