| DISCONTINUED OPERATIONS |
NOTE 4 — DISCONTINUED OPERATIONS
Refer to Note 1, General - Upstream Sale, for background. The carrying amounts of the major classes of assets and liabilities of the disposal group related to discontinued operations are as follows:
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June 30, 2024 |
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December 31, 2023 |
| Current assets: |
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| Upstream Pipe |
$ |
— |
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$ |
4,279 |
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| Total current assets of discontinued operations |
— |
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4,279 |
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| Non-current assets: |
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| Property, plant and equipment, net |
— |
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376,649 |
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| Total non-current assets of discontinued operations |
— |
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376,649 |
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| Current liabilities: |
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| Upstream accrued liabilities |
— |
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7,584 |
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| Total current liabilities of discontinued operations |
— |
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7,584 |
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| Non-current liabilities: |
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| Asset retirement obligations |
— |
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3,103 |
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| Total non-current liabilities of discontinued operations |
$ |
— |
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$ |
3,103 |
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Discontinued operations are as follows:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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| Natural gas sales |
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$ |
15,586 |
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$ |
31,987 |
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$ |
41,058 |
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$ |
82,922 |
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| Operating expenses |
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9,040 |
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20,848 |
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22,161 |
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38,293 |
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| Depreciation, depletion and amortization |
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16,517 |
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24,489 |
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36,664 |
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45,981 |
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| General and administrative expenses |
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5,209 |
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3,065 |
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8,176 |
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6,755 |
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| Interest expense, net |
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1,981 |
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3 |
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3,629 |
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3 |
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| Loss on sale of upstream assets |
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84,185 |
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— |
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84,185 |
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— |
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| Other Income, net |
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— |
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(1,075) |
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1,698 |
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(1,192) |
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| Loss from discontinued operations before tax |
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(101,346) |
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(15,343) |
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(115,455) |
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(6,918) |
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| Income tax benefit (provision) |
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— |
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— |
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— |
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— |
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| Loss from discontinued operations, net of tax |
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$ |
(101,346) |
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$ |
(15,343) |
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$ |
(115,455) |
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$ |
(6,918) |
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We recognized a loss on sale of upstream assets of approximately $84.2 million based on the preliminary settlement statement net proceeds. The final settlement statement will be executed during the fourth quarter of 2024.
DD&A, capital expenditures and significant operating and investing non-cash items related to discontinued operations are as follows:
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Six Months Ended June 30, |
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2024 |
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2023 |
| Depreciation, depletion and amortization |
$ |
36,664 |
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$ |
45,981 |
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| Loss on sale of upstream assets |
84,185 |
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— |
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| Acquisition and development of natural gas properties, net |
9,625 |
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95,231 |
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| Net proceeds from sale of upstream assets |
249,421 |
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— |
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