Executive Retirement and Exit Activities
|12 Months Ended|
Dec. 31, 2018
|Restructuring and Related Activities [Abstract]|
|Executive Retirement and Exit Activities||
Effective February 28, 2018, Mr. Harry Quarls retired from his position as a director and Executive Chairman of the Company. In connection with his retirement, we entered into a separation and consulting agreement (“Separation Agreement”) whereby Mr. Quarls provided transition and support services to us through December 31, 2018. We paid Mr. Quarls $0.3 million for such services. The Separation Agreement included a general release of claims and provided for the accelerated vesting of certain share-based compensation awards for which we recognized expense of $0.6 million during the year ended December 31, 2018 (see Note 17). The costs associated with the Separation Agreement, including the share-based compensation charges, are included as a component of “G&A expenses” in our Consolidated Statements of Operations.
During 2016, we committed to a number of actions, or exit activities. The most significant of those activities were attributable to an overall reduction in the scope and scale of our organization and required payments to satisfy obligations associated with the underlying commitments. The following summarizes the most significant exit activities.
Reductions in Force
In 2016, we reduced our total employee headcount by 53 employees. We paid a total of $2.1 million, including $1.4 million in severance and termination benefits and $0.7 million in retention bonuses during the year ended December 31, 2016. The costs associated with these reduction-in-force and retention actions are included as a component of our “General and administrative” expenses in our Consolidated Statements of Operations.
Drilling Rig Termination
In connection with the suspension of our 2016 drilling program, we terminated a drilling rig contract and incurred $1.7 million in early termination charges. As this obligation represented a pre-petition liability of the Predecessor, it was discharged in connection with our emergence from bankruptcy and included in “Reorganization items, net” in our Consolidated Statements of Operations.
Firm Transportation Obligation
We had a contractual obligation with a carrying value of $10.8 million 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” in our Consolidated Statement of Operations. In connection with our emergence from bankruptcy, we rejected the underlying contract and the obligation was included in “Reorganization items, net” in our Consolidated Statements of Operations.
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://fasb.org/us-gaap/role/ref/legacyRef