Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 11   Discontinued Operations

We determined that the plan of sale criteria in the ASC Topic relating to the Presentation of Financial Statements for Assets Sold or Held for Sale had been met during the third quarter of 2010 for our oil and gas assets in the Horn River basin in Canada and in the Llanos basin in Colombia. At Septemer 30, 2010, these assets also included our 49.7% and 50.0% ownership interests in our investments of Remora Energy International, LP (“Remora”) in Colombia and Stone Mountain Ventures Partnership (“SMVP”) in Canada, respectively, which we had accounted for using the equity method of accounting. All of these assets are included in our oil and gas operating segment. Accordingly, we reclassified wholly owned oil and gas assets from our property, plant and equipment, net, as well as our investment balances for Remora and SMVP from investments in unconsolidated affiliates to assets held for sale, in our consolidated balance sheet at September 30, 2010.

During the three months ended June 30, 2011, we sold some of our wholly owned oil and gas assets in Colombia to an unrelated third party. We received proceeds of $91.4 million from this sale and recognized a gain of approximately $42.7 million. Additionally, during the three months ended June 30, 2011, Remora completed sales of some of their oil and gas assets in Colombia. Remora received gross proceeds of approximately $279 million from these sales and made a distribution of cash to us in the amount of $119.2 million during the second quarter of 2011. Remora has entered into additional agreements with respect to the sale of the remaining oil and gas assets, which are expected to close during the third quarter of 2011.

In June 2011, the equity owners of SMVP dissolved the partnership and a proportionate share of the assets and liabilities were conveyed to us in exchange for our ownership interest. The exchange was not a material transaction to us and we accounted for it as a business combination. We continue to market these assets for sale and although market conditions in Canada have weakened since we initially classified these assets as held for sale at September 30, 2010, we continue to believe that these assets are properly reflected in our assets held for sale balances at June 30, 2011 and December 31, 2010.

The operating results from our oil and gas assets in Canada and Colombia that we have classified as held for sale have been retroactively presented as discontinued operations in the accompanying unaudited consolidated balance sheets and statements of income (loss) and the respective accompanying notes to the consolidated financial statements. Our condensed statements of income (loss) from discontinued operations for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Condensed Statements of Income (Loss) from Discontinued Operations	2011			2010			2011			2010
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates	$	89,980	(1)	$	10,402		$	98,282	(1)	$	17,124
Income (loss) from discontinued operations:
Income (loss) from discontinued operations	$	79,698		$	(1,501	)	$	76,800		$	(4,568	)
Gain (loss) on disposal of wholly owned assets		42,717			—			42,717			—
Less: income tax expense (benefit)		(1,491	)		(592	)		(2,219	)		762
Income (loss) from discontinued operations, net of tax	$	123,906		$	(909	)	$	121,736		$	(5,330	)

(1) Includes approximately $85 million of equity in earnings during the three months ended June 30, 2011 for our proportionate share of Remora’s net income, inclusive of the gains they recognized for asset sales closed during the second quarter of 2011.