Asset Retirement Obligations

6 Months Ended

Jun. 30, 2022

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONSWe are required to record the estimated fair value of the liabilities relating to the future retirement of our long-lived assets. 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 our AROs relate to the plugging costs associated with our oil and gas wells.

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


	Six Months Ended June 30,
	2022		2021
	(In thousands)
ARO liability, beginning of period	$	25,688	$	23,356
Accretion of discount	974		931
Liability incurred	17		1
Liability settled	(86)		(302)
Liability sold	(2,671)		(721)
Revision of estimates (1)	1,484		(93)
ARO liability, end of period	25,406		23,172
Less: current portion	2,707		2,132
Total long-term ARO	$	22,699	$	21,040

1.Plugging liability estimates were revised in 2022 and 2021 for updates in the cost of services used to plug wells over the preceding year as well as estimated inflation and discount rates. We had various upward and downward adjustments.