Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.20.4
Property and Equipment
12 Months Ended
Dec. 31, 2020
Property and Equipment  
Property and Equipment

(8)  Property and Equipment

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

Estimated

December 31,

(in thousands)

    

useful lives

    

2019

2020

Land

    

n/a

    

$

23,549

    

23,582

Gathering systems and facilities

40-50 years (1)

2,375,241

2,643,927

Permanent buried pipelines and equipment

7-20 years

602,230

545,419

Surface pipelines and equipment

1-7 years

48,594

50,916

Landfill

n/a (2)

1,244

Heavy trucks and equipment

3-5 years

6,617

5,919

Above ground storage tanks

5-10 years

3,418

2,483

Construction-in-progress

n/a

 

300,165

139,506

Total property and equipment

3,361,058

3,411,752

Less accumulated depreciation

(87,648)

(157,708)

Property and equipment, net

$

3,273,410

3,254,044

(1) Gathering systems and facilities are recognized as a single-leased asset with no residual value.
(2) Amortization of landfill costs is recorded over the life of the landfill on a units-of-consumption basis.

During the years ended December 31, 2019 and 2020, the Company recorded impairment expense of $409 million and $7 million, respectively, for the Clearwater Facility. See Note 4—Clearwater Facility Idling to our consolidated financial statements for more information. During the first quarter of 2020, the Company evaluated its assets for impairment due to the decline in the industry environment as a result of low commodity prices. 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.