ACQUISITIONS AND DIVESTITURES

12 Months Ended

Dec. 31, 2020

Acquisitions and Divestitures [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

Oil and Natural Gas

There was no significant acquisition activity during the year ended December 31, 2021 or the four months ended December 31, 2020. We acquired $0.4 million of producing and other oil and natural gas properties during the eight months ended August 31, 2020.

The company initiated an asset divestiture program at the beginning of 2021 to sell certain non-core oil and gas properties and reserves (the “Divestiture Program”). On October 4, 2021, the company announced that it is expanding the Divestiture Program to now include the potential sale of additional properties, including up to all of UPC’s oil and gas properties and reserves. On January 20, 2022, the company announced that it has retained a financial advisor and launched the process.

On March 8, 2022, the company closed on the sale of wells and related leases located near the Oklahoma Panhandle for $5.0 million, subject to customary closing and post-closing adjustments with an effective date of December 1, 2021. No gain or loss was recognized as the sale of these assets did not result in a significant alteration of the full cost pool.

On August 16, 2021, the company closed on the sale of substantially all of our wells and related leases located near Oklahoma City, Oklahoma for $19.5 million, subject to customary closing and post-closing adjustments. No gain or loss was recognized as the sale of these assets did not result in a significant alteration of the full cost pool.

On May 6, 2021, the company closed on the sale of substantially all of our wells and related leases located in Reno and Stafford Counties, Kansas for $7.1 million, subject to customary closing and post-closing adjustments. No gain or loss was recognized as the sale of these assets did not result in a significant alteration of the full cost pool.

We also sold $5.0 million of other non-core oil and natural gas assets, net of related expenses, during the year ended December 31, 2021, compared to $0.4 million during the four months ended December 31, 2020, and $1.2 million during the eight months ended August 31, 2020. No gain or loss was recognized as the sale of these assets did not result in a significant alteration of the full cost pool.

Contract Drilling

There was no significant acquisition activity during the year ended December 31, 2021, the four months ended December 31, 2020, or eight months ended August 31, 2020.

We sold non-core contract drilling assets for proceeds of $12.7 million, net of related expenses, during the year ended December 31, 2021, compared to $1.3 million during the four months ended December 31, 2020, and $4.8 million during the eight months ended August 31, 2020. These proceeds resulted in net gains of $10.1 million during the year ended December 31, 2021, compared to $0.5 million during the four months ended December 31, 2020, and $1.4 million during the eight months ended August 31, 2020.

Mid-Stream

In November 2021, we closed on an acquisition for $13.0 million, subject to customary closing and post-closing adjustments, that included a cryogenic processing plant, approximately 1,620 miles of low-pressure gathering pipeline, and related compressor stations located in southern Kansas. The transaction was accounted for as an asset acquisition.

There was no significant acquisition activity during the year ended December 31, 2020.

There was no significant divestiture activity during the year ended December 31, 2021, the four months ended December 31, 2020, or eight months ended August 31, 2020.

Corporate and Other

In September 2021, we closed the sale of our corporate headquarters building and land for $35.0 million resulting in a gain of $0.9 million, net of $2.2 million of transaction costs. In conjunction with the closing, we entered into a multi-year lease for a portion of the building.