Assets Held-for-Sale and Discontinued Operations

6 Months Ended

Jun. 30, 2015

Assets Held-for-Sale and Discontinued Operations

Assets Held-for-Sale and Discontinued Operations

Note 14 Assets Held-for-Sale and Discontinued Operations

Assets Held-for-Sale

Assets held for sale of $136.7 million and $146.5 million as of June 30, 2015 and December 31, 2014, respectively, consisted solely of our oil and gas holdings in the Horn River basin in western Canada.

We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing. At June 30, 2015, our undiscounted contractual commitments for these contracts approximated $43.2 million and we had liabilities of $25.0 million, $7.8 million of which were classified as current and were included in accrued liabilities. At December 31, 2014, we had liabilities of $40.2 million, $19.6 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						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
	(In thousands)
Operating revenues
Oil and Gas	$	855		$	3,471		$	2,305		$	8,528
Income (loss) from Oil and Gas discontinued operations:
Income (loss) from discontinued operations	$	(1,129	)	$	(1,082	)	$	(2,515	)	$	1,536
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets and obligations	1,031			409			1,031			1,411
Less: Income tax expense (benefit)	(7,185		)	(459		)	(7,754		)	(358		)
Income (loss) from Oil and Gas discontinued operations, net of tax	$	5,025		$	(1,032	)	$	4,208		$	483