Assets Held-for-Sale and Discontinued Operations

6 Months Ended

Jun. 30, 2014

Assets Held-for-Sale and Discontinued Operations

Assets Held-for-Sale and Discontinued Operations

Note 12 Assets Held-for-Sale and Discontinued Operations

	June 30,		December 31,
	2014		2013
	(In thousands)
Oil and Gas	$	233,163	$	239,936
Rig Services	—		3,328
	$	233,163	$	243,264

We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing.  At June 30, 2014, our undiscounted contractual commitments for these contracts approximated $139.2 million and we had liabilities of $63.1 million, $28.8 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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)
Operating revenues
Oil and Gas	$	3,471		$	12,050		$	8,528		$	22,039
Income (loss) from Oil and Gas discontinued operations:
Income (loss) from discontinued operations	$	(1,082	)	$	(10,272	)	$	1,536		$	(8,202	)
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets	409			34,663			1,411			36,663
Less: Income tax expense (benefit)	(459		)	(10,882		)	(358		)	(11,165		)
Income (loss) from Oil and Gas discontinued operations, net of tax	$	(1,032	)	$	(34,053	)	$	483		$	(33,700	)

During the three and six months ended June 30, 2013, Rig Services contributed operating revenues of $34.6 million and $81.8 million, respectively.  Income from discontinued operations, net of tax was $7.2 million and $13.8 million, respectively, for the same period.