Assets Held for Sale and Discontinued Operations

6 Months Ended

Jun. 30, 2016

Assets Held for Sale and Discontinued Operations

Assets Held for Sale and Discontinued Operations

Note 10 Assets Held for Sale and Discontinued Operations

Assets Held for Sale

Assets held for sale as of June 30, 2016 and December 31, 2015 was $86.6million and $75.7 million, respectively. These assets consisted primarily of our oil and gas holdings which are mainly in the Horn River basin in western Canada of $78.5 million and $73.6 million as of the periods noted above and the operating results have been reflected in discontinued operations. The remainder represents assets that meet the criteria to be classified as assets held for sale, but do not represent a disposal of a component of an entity or a group of components of an entity representing a strategic shift that has or will have a major effect on the entity's operations and financial results.

We have contracts with pipeline companies to pay specified fees based on committed volumes for gas transport and processing regarding our oil and gas properties classified as discontinued operations.  At June 30,2016, our undiscounted contractual commitments for these contracts approximated $21.4 million and we had liabilities of $15.2 million, $5.6million of which were classified as current and were included in accrued liabilities.  At December 31,2015, our undiscounted contractual commitments for these contracts approximated $23.3 million and we had liabilities of $16.1 million, $5.2million 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				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(In thousands)
Operating revenues (1)	$	384	$	855	$	761	$	2,305
Income (loss) from Oil & Gas discontinued operations:
Income (loss) from discontinued operations	$	(1,335)	$	(1,129)	$	(2,661)	$	(2,515)
Less: Impairment charges or other (gains) and losses on sale of wholly owned assets		—		1,031		—		1,031
Less: Income tax expense (benefit)		(351)		(7,185)		(751)		(7,754)
Income (loss) from Oil and Gas discontinued operations, net of tax	$	(984)	$	5,025	$	(1,910)	$	4,208

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