Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2022

Property, Plant And Equipment [Abstract]

(6) Property, Plant and Equipment, Net

A summary of property, plant and equipment, net is as follows (in thousands):


	June 30, 2022			December 31, 2021
Machinery and equipment	$	368,220		$	360,353
Buildings, improvements and leasehold improvements		77,529			75,374
Automobiles, trucks, tractors and trailers		6,550			6,450
Furniture and fixtures		19,707			19,668
Construction-in-progress		5,078			6,700
Land		28,446			28,671
Oil and gas producing assets		-			44,700
Total		505,530			541,916
Accumulated depreciation and depletion		(218,603	)		(185,642	)
Property, plant and equipment, net	$	286,927		$	356,274

Depreciation and depletion expense associated with our property, plant and equipment for the three and six months ended June 30, 2022 was $20.4 million and $51.6 million respectively. Depreciation and depletion expense, excluding depreciation and depletion related to assets held for sale, for the three months ended June 30, 2021, the Successor Period and Predecessor Period was $57.6 million, $96.5 million and $7.8 million, respectively. Gains and losses on disposals of assets are recognized within other (gains) and losses, net in our statement of operations.

During the second quarter of 2022, changes in estimates regarding the timing and the cost of decommissioning our oil and gas property under a reef-in-place program resulted in a reduction in the carrying value of our decommissioning liability and related note receivable, as well as impacted the carrying value of our oil and gas producing assets. Due to the reduction in both costs and timing, our decommissioning liability was reduced by $53.0 million and the related note receivable was increased by $2.6 million. Additionally, in accordance with ASC 410, the carrying value of our oil and gas producing assets, which included capitalized oil and gas reserves and capitalized asset retirement costs, was reduced by $38.2 million, which represented the net book value of all of our oil and gas assets at the time of the reduction. In connection with these changes, we recognized a gain of approximately $17.4 million which is included in other (gains) and losses, net in our statement of operations.