Asset Retirement Obligations

12 Months Ended

Dec. 31, 2019

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS

We are required to record the estimated fair value of the liabilities relating to the future retirement of our long-lived assets (AROs). Our oil and natural gas wells are plugged and abandoned when the oil and natural gas reserves in those wells are depleted or the wells are no longer able to produce. The plugging and abandonment liability for a well is recorded in the period in which the obligation is incurred (at the time the well is drilled or acquired). None of our assets are restricted for purposes of settling these AROs. All of our AROs relate to plugging costs associated with our oil and gas wells.

The following table shows certain information about our AROs for the periods indicated:


	2019		2018
	(In thousands)
ARO liability, January 1:	$	64,208	$	69,444
Accretion of discount	2,343		2,393
Liability incurred	4,373		2,632
Liability settled	(3,261)		(4,493)
Liability sold	(2,953)		(281)
Revision of estimates ⁽¹⁾	1,917		(5,487)
ARO liability, December 31:	66,627		64,208
Less current portion	2,920		1,437
Total long-term ARO liability	$	63,707	$	62,771

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1.Plugging liability estimates were revised in both 2019 and 2018 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments and changes in estimated timing of cash flows.