Divestitures |
12 Months Ended |
|---|---|
Dec. 31, 2020 | |
| Business Combinations [Abstract] | |
| Divestitures | DIVESTITURES Sale of Water Infrastructure Assets
On January 2, 2020, the Company closed on the sale of its SCOOP water infrastructure assets to a third-party water service provider. The Company received $50.0 million in cash proceeds upon closing and has an opportunity to earn potential additional incentive payments over the next 15 years, subject to the Company's ability to meet certain thresholds which will be driven by, among other things, the Company's future development program and water production levels. The agreement contained no minimum volume commitments. The fair value of the contingent consideration as of the closing date was $23.1 million. See Note 15 for additional discussion of the fair value of the contingent consideration.
The divested assets were included in the amortization base of the full cost pool and no gain or loss was recognized in the accompanying consolidated statements of operations as a result of the sale.
Sale of Non-operated Utica Interests
In December 2019, the Company entered into an agreement to divest certain non-operated interests in the Utica for approximately $29.0 million in cash subject to customary closing terms and adjustments. This sale closed on December 30, 2019.
Sale of Bakken Overriding Royalty Interests
During 2019, the Company announced the sale of certain overriding royalty interests associated with assets the Company held in the Bakken. The sale closed on December 11, 2019 and, net of purchase price adjustments, the Company received approximately $7.0 million of total proceeds.
Sale of Southern Louisiana Assets
In December 2018, the Company entered into an agreement to sell its non-core assets located in the West Cote Blanche Bay and Hackberry fields of southern Louisiana to an undisclosed third party for a purchase price of approximately $19.7 million. The sale closed on July 3, 2019, subject to customary post-closing terms and conditions, with an effective date of August 15, 2018. The Company received approximately $9.2 million in cash and retained contingent overriding royalty interests. In addition, the Company could also receive contingent payments based on commodity prices exceeding specified thresholds over the two years following the closing date. See Note 13 for further discussion of the contingent consideration arrangement, which was determined to be an embedded derivative. The buyer assumed all plugging and abandonment liabilities associated with these assets which totaled approximately $30.0 million at the divestiture date.
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