Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.21.1
Property and Equipment
3 Months Ended
Mar. 31, 2021
Property and Equipment  
Property and Equipment

(6) Property and Equipment

The Company’s investment in property and equipment for the periods presented is as follows:

(Unaudited)

Estimated

December 31,

March 31,

(in thousands)

    

useful lives

    

2020

2021

Land

    

n/a

    

$

23,582

    

23,272

Gathering systems and facilities

40-50 years (1)

2,643,927

2,653,975

Permanent buried pipelines and equipment

7-20 years

545,419

551,983

Surface pipelines and equipment

1-7 years

50,916

51,743

Heavy trucks and equipment

3-5 years

5,919

5,919

Above ground storage tanks

5-10 years

2,483

2,483

Construction-in-progress

n/a

 

139,506

144,909

Total property and equipment

3,411,752

3,434,284

Less accumulated depreciation

(157,708)

(184,558)

Property and equipment, net

$

3,254,044

3,249,726

(1) Gathering systems and facilities are recognized as a single-leased asset with no residual value.

Due to the decline in the industry environment as a result of low commodity prices, the Company evaluated its assets for impairment during the first quarter of 2020. As a result of this evaluation, the Company recorded an impairment expense of $89 million, which included an $83 million impairment expense to its permanent buried pipelines and equipment and a $6 million impairment expense to its surface pipelines and equipment.

Additionally, the Company incurred $9 million and $1 million in facility idling costs for the care and maintenance of its wastewater treatment facility and related landfill (collectively, the “Clearwater Facility”) during the three months ended March 31, 2020 and 2021, respectively. The Clearwater Facility was fully impaired when it was idled in September 2019.