Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

At second quarter-end 2016, we have exited substantially all of our oil and gas working interest properties with the sale of the remaining Bakken/Three Forks properties which closed in second quarter 2016. As a result of this significant change in our operations, we have reported the results of operations and financial position of these assets as discontinued operations within the consolidated statements of income (loss) and comprehensive income (loss) and consolidated balance sheets for all periods presented. In addition, in second quarter 2016, we changed the name of the oil and gas segment to mineral resources to reflect the strategic shift from oil and gas working interest investments to owned mineral interests.

Summarized results from discontinued operations were as follows:

	Second Quarter						First Six Months
	2016			2015			2016			2015
	(In thousands)
Revenues	$	1,377		$	13,805		$	5,647		$	24,236
Cost of sales	(1,521		)	(69,874		)	(6,485		)	(81,028		)
Other operating expenses	(1,066		)	(2,242		)	(2,389		)	(7,008		)
Loss from discontinued operations before income taxes	$	(1,210	)	$	(58,311	)	$	(3,227	)	$	(63,800	)
Gain (loss) on disposal before income taxes	(3,596		)	(322		)	(14,573		)	854
Income tax benefit (expense)	2,758			21,641			7,536			23,234
Loss from discontinued operations, net of taxes	$	(2,048	)	$	(36,992	)	$	(10,264	)	$	(39,712	)

In first quarter 2016, we recorded a net loss of $10,977,000 on the sale of 190,960 net mineral acres leased from others and 185 gross (66 net) producing oil and gas working interest wells in Nebraska, Kansas, Oklahoma and North Dakota for total proceeds of $32,227,000, which includes $3,269,000 in reimbursement of capital costs incurred on in-progress wells that were assumed by the buyer.

In second quarter 2016, we recorded a net loss of $3,596,000 on the sale of nearly 8,100 net mineral acres leased from others and 175 gross (16 net) producing oil and gas working interest wells principally in North Dakota for total sales proceeds of $46,986,000.

The major classes of assets and liabilities of discontinued operations held for sale at second quarter-end 2016 and year-end 2015 are as follows:

	Second Quarter-End		Year-End
	2016		2015
	(In thousands)
Assets of Discontinued Operations:
Receivables, net of allowance for bad debt	$	1,276	$	4,632
Oil and gas properties and equipment, net	438		79,733
Goodwill and other intangible assets	—		19,673
Prepaid expenses	31		96
Other assets	100		833
	$	1,845	$	104,967
Liabilities of Discontinued Operations:
Accounts payable	$	751	$	342
Accrued property taxes	—		259
Other accrued expenses	1,979		8,924
Other liabilities	386		1,667
	$	3,116	$	11,192

Significant operating activities and investing activities of discontinued operations are as follows:

	First Six Months
	2016			2015
	(In thousands)
Operating activities:
Asset impairments	$	612		$	25,035
Dry hole and unproved leasehold impairment charges	—			30,663
Loss (gain) on sale of assets	14,573			(854		)
Depreciation, depletion and amortization	2,147			15,157
	$	17,332		$	70,001
Investing activities:
Oil and gas properties and equipment	$	(567	)	$	(40,286	)
Proceeds from sales of assets	75,944			2,524
	$	75,377		$	(37,762	)