Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2019

Acquisitions and Divestitures [Abstract]

Acquisitions and Divestitures

ACQUISITIONS AND DIVESTITURES

Acquisitions

Oil and Natural Gas

During the Successor Period of 2020, there was no significant acquisition activity. During the Predecessor Period of 2020, we had $0.4 million in acquisitions, while for 2019, we had approximately $3.7 million in acquisitions.

Mid-Stream

There was no significant acquisition activity in 2020.

In December 2019, we closed on an acquisition for $16.1 million that included approximately 572 miles of pipeline and related compressor stations. The transaction closed on December 30, 2019 with an effective date of December 01, 2019 and was accounted for as an asset acquisition.

Divestitures

Oil and Natural Gas

We had non-core asset sales with proceeds, net of related expenses, of $0.4 million, $1.2 million and $21.8 million in the Successor Period and Predecessor Period of 2020 and the year 2019, respectively. Proceeds from these dispositions reduced the net book value of the full cost pool with no gain or loss recognized.

Contract Drilling

During 2019, we sold six of the drilling rigs and other equipment to unaffiliated third parties. The proceeds of those sales, less costs to sell, was more than the $5.7 million net book value resulting in a gain of $1.1 million. Seven drilling rigs and equipment remained classified as assets held for sale and were to be marketed for sale throughout the next twelve months. The net book value of those assets was $5.9 million.

During the first quarter of 2020, due to market conditions, it was determined those assets would not be sold in the next twelve months and were reclassified to long-lived assets. As of December 31, 2020, we have no assets that meet the criteria to be classified as held for sale. We do have plans to sell drilling rigs but they have zero net book value after fresh start so they are not reported as assets held for sale.