Assets Held-for-Sale and Discontinued Operations

6 Months Ended

Jun. 30, 2013

Assets Held-for-Sale and Discontinued Operations

Assets Held-for-Sale and Discontinued Operations

Note 12 Assets Held-for-Sale and Discontinued Operations

Assets Held-for-Sale

Assets held-for-sale included the following:

	June 30,			December 31,
Assets Held-for-Sale	2013			2012
	(In thousands)
Oil and Gas (1)	$	351,263	(2)	$	377,625
Rig Services	—		(3)	6,232
	$	351,263		$	383,857

(1) Oil and Gas represents a former operating segment of the Company.  We began marketing efforts during 2010 to sell our oil and gas investments.  As of December 2012, all remaining assets relating to oil and gas are classified as held-for-sale.

(2) During the six months ended June 30, 2013, the carrying value of these assets was adjusted by $34.4 million to reflect the sales price or current fair value.  In July 2013, we sold some of our gas and oil assets and received initial proceeds of $90 million, subject to customary post-closing adjustments.

(3) On April 1, 2013, we sold our business that provides logistics services for onshore drilling using helicopter and fixed-wing aircraft for a price of $9.3 million.

Discontinued Operations

Our condensed statements of income (loss) from discontinued operations for each operating segment were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates
Oil and Gas	$	12,050		$	2,919		$	22,039		$	6,220
Rig Services	$	934		$	5,554		$	4,971		$	10,416
Income (loss) from Oil and Gas discontinued operations:
Income (loss) from discontinued operations	$	(4,742	)	$	(2,791	)	$	(2,672	)	$	(8,279	)
Impairment charges or other gains and losses on sale of wholly owned assets	(40,193		)(1)	41,597			(42,193		)(1)	36,468
Less: income tax expense (benefit)	(10,715		)	7,042			(10,692		)	4,227
Income (loss) from Oil and Gas discontinued operations, net of tax	$	(34,220	)	$	31,764		$	(34,173	)	$	23,962
Income (loss) from Rig Services discontinued operations:
Income (loss) from discontinued operations	$	6,905		$	(4,149	)	$	9,823		$	(5,505	)
Impairment charges or other gains and losses on sale of long-lived assets	1,382			(5,283		)	1,129			(5,256		)
Less: income tax expense (benefit)	2,071			(2,358		)	2,737			(2,694		)
Income (loss) from Rig Services discontinued operations, net of tax	$	6,216		$	(7,074	)	$	8,215		$	(8,067	)

(1) The carrying value of some assets was adjusted. Refer to discussion above.

We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing.  At June 30, 2013, our undiscounted contractual commitments for these contracts approximated $290 million, and we had liabilities of $177 million, $58 million of which were classified as current and are included in accrued liabilities.  At December 31, 2012, we had liabilities of $206 million, $69 million of which were classified as current and were included in accrued liabilities. These amounts represent our best estimate of the fair value of the excess capacity of the pipeline commitments calculated using a discounted cash flow model, when considering our disposal plan, current production levels, natural gas prices and expected utilization of the pipeline over the remaining contractual term.  Decreases in actual production or natural gas prices could result in future charges related to excess pipeline commitments.