Assets Held-for-Sale and Discontinued Operations

3 Months Ended

Mar. 31, 2014

Assets Held-for-Sale and Discontinued Operations

Assets Held-for-Sale and Discontinued Operations

Note 12 Assets Held-for-Sale and Discontinued Operations

	March 31,		December 31,
Assets Held-for-Sale	2014		2013
	(In thousands)
Oil and Gas	$	231,880	$	239,936
Rig Services	—		3,328
	$	231,880	$	243,264

We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing.  At March 31, 2014, our undiscounted contractual commitments for these contracts approximated $145.4 million and we had liabilities of $64.9 million, $29.4 million of which were classified as current and were included in accrued liabilities.  At December 31, 2013, we had liabilities of $113.6 million, $64.4 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.

Discontinued Operations

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

	Three Months Ended March 31,
	2014		2013
	(In thousands)
Operating revenues
Oil and Gas	$	5,057	$	9,989
Rig Services	$	—	$	47,204
Income (loss) from Oil and Gas discontinued operations:
Income (loss) from discontinued operations	$	2,618	$	2,070
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets	1,002		2,000
Less: Income tax expense (benefit)	101		(283		)
Income (loss) from Oil and Gas discontinued operations, net of tax	$	1,515	$	353
Income (loss) from Rig Services discontinued operations:
Income (loss) from discontinued operations	$	—	$	9,371
Less: Impairment charges or other (gains) and losses on sale of long-lived assets	—		323
Less: Income tax expense (benefit)	—		2,390
Income (loss) from Rig Services discontinued operations, net of tax	$	—	$	6,658