Quarterly report pursuant to Section 13 or 15(d)

Exit Activities

v3.7.0.1
Exit Activities
3 Months Ended
Mar. 31, 2017
Restructuring and Related Activities [Abstract]  
Exit Activities
Exit Activities
Prior to the Effective Date, the Predecessor committed to a number of actions, or exit activities, the most significant of which are described below.
Reductions in Force
In connection with efforts to reduce our administrative costs, we took certain actions to reduce our total employee headcount. In 2016, we reduced our total employee headcount by 53 employees including 10 of whom were terminated in the the three months ended March 31, 2016. We incurred charges of $0.7 million in connection with this action and paid a total of $0.4 million in severance and termination benefits during the three months ended March 31, 2016. We recognized an immaterial credit adjustment to the remaining obligation of less than $0.1 million during the three months ended March 31, 2017. There were no payments under these obligations during the three months ended March 31, 2017.
The costs associated with these reduction-in-force actions are included as a component of our “General and administrative” expenses in our Condensed Consolidated Statements of Operations. The related obligation is included in “Accounts payable and accrued liabilities” on our Condensed Consolidated Balance Sheet.
Drilling Rig Termination
In connection with the suspension of our 2016 drilling program in the Eagle Ford, we terminated a drilling rig contract and incurred $0.4 million in early termination charges during the three months ended March 31, 2016. As this obligation represented a pre-petition liability of the Predecessor, it was discharged in connection with our emergence from bankruptcy. The vendor recovered a portion of the amount in the form of Successor common stock.
Firm Transportation Obligation
We had a contractual obligation for certain firm transportation capacity in the Appalachian region that was scheduled to expire in 2022 and, as a result of the sale of our natural gas assets in this region in 2012, we no longer had production available to satisfy this commitment. We originally recognized a liability in 2012 representing this obligation for the estimated discounted future net cash outflows over the remaining term of the contract. The accretion of the obligation through the Petition Date, net of any recoveries from periodic sales of our contractual capacity, was charged as an offset to Other revenue. During the three months ended March 31, 2016, we paid a total of $0.5 million and recognized accretion expense of $0.2 million attributable to the underlying obligation. In connection with our emergence from bankruptcy, we rejected the underlying contract.