Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]  
The major categories of property and equipment and related accumulated DD&A and impairment as of March 31, 2022 and December 31, 2021 are as follows (in thousands):
March 31, 2022 December 31, 2021
Proved oil and natural gas properties $ 2,030,289  $ 1,917,833 
Unproved properties 203,678  211,007 
Other depreciable property and equipment 5,034  4,943 
Land 386  386 
Total property and equipment 2,239,387  2,134,169 
Accumulated DD&A and impairment (340,709) (278,341)
Property and equipment, net $ 1,898,678  $ 1,855,828 
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At March 31, 2022, the net book value of the Company's oil and gas properties was below the calculated ceiling for the period leading up to March 31, 2022. As a result, the Company did not record an impairment of its oil and natural gas properties for the Successor Quarter. The Company did not record impairment of its oil and natural gas properties for the Predecessor Quarter.
Certain general and administrative costs are capitalized to the full cost pool and represent management’s estimate of costs incurred directly related to exploration and development activities. All general and administrative costs not capitalized are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $4.7 million and $5.5 million for the Successor Quarter and Predecessor Quarter, respectively.
The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule.
The following table summarizes the Company’s non-producing properties excluded from amortization by area as of March 31, 2022:
March 31, 2022
(In thousands)
Utica $ 168,809 
SCOOP 34,865 
Total unproved properties $ 203,678 
Asset Retirement Obligation
The following table provides a reconciliation of the Company’s asset retirement obligation for the Successor and Predecessor Quarters (in thousands):
Successor Predecessor
Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
Asset retirement obligation, beginning of period $ 28,264  $ 63,566 
Liabilities incurred 16  483 
Accretion expense 692  805 
Total asset retirement obligation as of end of period $ 28,972  $ 64,854 
Less: amounts reclassified to liabilities subject to compromise $ —  $ (64,854)
Total asset retirement obligation reflected as non-current liabilities $ 28,972  $ —