Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.22.1
Property, Plant and Equipment
3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment.  
Property, Plant and Equipment

4.Property, Plant and Equipment

Property, plant and equipment (“PP&E”) is stated at cost, less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful service life of the asset.

PP&E consists of the following:

(in thousands)

    

March 31, 

December 31, 

    

2022

2021

Wells, Facilities, Water Ponds, and Related Equipment

$

310,254

$

329,935

Pipelines

324,647

327,140

Land

2,063

2,063

Vehicles, Equipment, Computers and Office Furniture

17,147

17,359

Assets Subject to Depreciation

654,111

676,497

Projects and Construction in Progress

42,164

24,259

Total Property, Plant and Equipment

696,275

700,756

Accumulated Depreciation

(68,160)

(67,749)

Total Property, Plant and Equipment, Net

$

628,115

$

633,007

Asset Exchanges

During the three months ended March 31, 2022, we completed multiple nonmonetary transactions. The transactions included exchanges of wells, facilities, permits and other assets. The total net book value of the

divested assets and liabilities was $3.8 million. The acquired assets were recorded at a total fair value of $3.2 million, which resulted in a total pre-tax loss of $0.6 million.

Assets Held for Sale

Management has committed to a plan to sell certain of our assets located in the Midland Basin and has determined that as of March 31, 2022, these assets met all the criteria for classification as assets held for sale. We anticipate these assets will be sold in 2022. These assets have been re-measured at their fair values less costs to sell, which resulted in the recognition of pre-tax impairment expense of $15.6 million. We estimated the fair value of the assets using indicative bids, which were representative of a Level 2 fair value measurement. The assets have been reclassified as held for sale in the condensed consolidated balance sheet at March 31, 2022, and we have ceased recording depreciation on the assets.