Asset Retirement Obligations

3 Months Ended

Mar. 31, 2023

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. 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 when the well is drilled or acquired and the obligation is incurred. 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 presents activity for our estimated AROs during the periods indicated:


	Three Months Ended March 31,
	2023		2022
	(In thousands)
ARO liability, beginning of period	$	23,440	$	25,688
Accretion of discount	467		493
Liability incurred	10		—
Liability settled	(245)		(55)
Liability sold	(14)		(2,670)
Revision of estimates (1)	261		1,483
ARO liability, end of period	23,919		24,939
Less: current portion	2,631		2,654
Long-term ARO liability	$	21,288	$	22,285

1.Plugging liability estimates were revised in 2023 and 2022 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.