Assets Held-for-Sale and Discontinued Operations

9 Months Ended

Sep. 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 as of September 30, 2015 and December 31, 2014 included the following:

	September 30,			December 31,
	2015			2014
	(In thousands)
Oil and Gas	$	76,300	(1)	$	146,467
Other	2,100			—
	$	78,400		$	146,467

(1)As of September 30, 2015, the carrying value of these assets was reduced by $51.0 million to reflect current fair value. The impairment charge is reflected in income (loss) from discontinued operations, net of tax in our consolidated statements of income (loss) as outlined below.

We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing. At September 30, 2015, our undiscounted contractual commitments for these contracts approximated $35.3 million and we had liabilities of $20.3 million, $5.9 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 were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(In thousands)
Operating revenues (1)	$	432		$	2,314		$	2,737		$	10,842
Income (loss) from discontinued operations:
Income (loss) from discontinued operations	$	(1,388	)	$	(509	)	$	(3,903	)	$	1,027
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets and obligations	55,044		(2)	(7,312		)(3)	56,075			(5,901		)
Less: Income tax expense (benefit)	(11,157		)	2,798			(18,911		)	2,440
Income (loss) from discontinued operations, net of tax	$	(45,275	)	$	4,005		$	(41,067	)	$	4,488

(1) Reflects operating revenues of our historical oil and gas operating segment.

(2) Reflects a $51.0 million impairment charge due to the deterioration of economic conditions in the dry gas market in western Canada as well as an impairment charge for a note receivable of $4.0 million remaining from the sale of one of our former Canada subsidiaries that provided logistics services.

(3) Reflects a gain related to our pipeline contractual commitments resulting from mitigation agreements to transfer pipeline/processing capacity.