Property And Equipment, Net

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

4. Property and Equipment, Net

At March 31, 2013 and December 31, 2012, property and equipment, net consisted of the following:



	March 31, 2013			December 31, 2012
	(In thousands)
Proved oil and gas properties	$	1,905,658		$	1,713,827
Accumulated depreciation, depletion and amortization	(606,320		)	(561,279		)
Proved oil and gas properties, net	1,299,338			1,152,548
Unproved properties, not being amortized
Unevaluated leasehold costs	281,197			238,833
Exploratory wells in progress	33,415			43,803
Capitalized interest	43,660			41,052
Total unproved properties, not being amortized	358,272			323,688
Other property and equipment	20,098			17,079
Accumulated depreciation	(5,983		)	(5,641		)
Other property and equipment, net	14,115			11,438
Total property and equipment, net	$	1,671,725		$	1,487,674

Utica Shale Joint Venture. On January 15, 2013, we exercised our option for an additional 40% in the remaining properties held through our joint venture with ACP II Marcellus LLC (“ACP II”), which is also one of our joint venture partners in the Marcellus Shale, and ACP III Utica LLC (“ACP III”), both affiliates of Avista Capital Holdings, LP, a private equity firm (collectively with ACP II and ACP III, “Avista”) by paying $63.1 million. Following the option exercise, the Company has the right to maintain a participating interest in subsequently acquired properties within an area of mutual interest at 10%, in which case Avista’s participating interest would be 90%, or the Company may elect at its option to acquire additional properties on a 50/50 basis with Avista. If the Company elects to acquire only a 10% participating interest, it also holds an additional option to increase such 10% interest in such subsequently acquired properties to 50% at 8.625% above Avista’s acreage cost and associated improvements (compounded monthly following Avista’s contribution of purchase proceeds). This additional option will expire May 31, 2013. The Company's right to receive distributions associated with the properties owned by ACP III through its B Units in ACP III terminated upon the consummation of the Company’s January 15, 2013 option to increase its interest in the Avista Utica joint venture properties.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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