|6 Months Ended|
Jun. 30, 2017
|Restructuring and Related Activities [Abstract]|
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 28 of whom were terminated in the six months ended June 30, 2016. We incurred charges of $1.1 million in connection with this action and paid a total of $0.7 million in severance and termination benefits during the six months ended June 30, 2016. We recognized an immaterial credit adjustment to the remaining obligation of less than $0.1 million during the period ended June 30, 2017. There were no payments under these obligations during the six months ended June 30, 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 $1.3 million in early termination charges during the six months ended June 30, 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 six months ended June 30, 2016, we paid a total of $1.1 million and recognized accretion expense of $0.3 million attributable to the underlying obligation. In connection with our emergence from bankruptcy, we rejected the underlying contract.
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.
Reference 1: http://www.xbrl.org/2003/role/presentationRef