Discontinued Operations

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

At year-end 2016, we have divested substantially all of our oil and gas working interest properties. 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:

	For the Year
	2016			2015			2014
Revenues	$	5,862		$	43,845		$	68,610
Cost of oil and gas producing activities	(6,578		)	(221,402		)	(94,581		)
Other operating expenses	(7,754		)	(10,363		)	(14,357		)
Loss from discontinued operations before income taxes	$	(8,470	)	$	(187,920	)	$	(40,328	)
Gain (loss) on sale of assets before income taxes	(13,664		)	(706		)	8,526
Income tax benefit	5,269			2,496			12,193
Loss from discontinued operations, net of taxes	$	(16,865	)	$	(186,130	)	$	(19,609	)

In 2016, we recorded a net loss of $13,664,000 on the sale of 199,263 net mineral acres leased from others and 379 gross (95 net) producing oil and gas working interest wells in Nebraska, Kansas, Oklahoma and North Dakota for total net proceeds of $80,374,000, which includes $3,269,000 in reimbursement of capital costs incurred on in-progress wells that were assumed by the buyer. Other operating expenses in 2016 include loss contingency charges of $2,990,000 related to litigation and $1,155,000 related to potential environmental liabilities to plug and abandon certain oil and gas wells in Wyoming. Please read Note 14—Litigation and Environmental Contingencies for additional information about these items.

In 2015, we recorded a net loss of $706,000 on the sale of 109,000 net mineral acres leased from others and the disposition of 39 gross (7 net) producing oil and gas wells in Nebraska, Texas, Colorado, North Dakota and Oklahoma for total net proceeds of $17,800,000.

In 2014, we recorded a net gain of $8,526,000 on the sale of 650 net mineral acres leased from others and 124 gross (18 net) producing oil and gas working interest wells in Nebraska, Kansas, Oklahoma and North Dakota for total net proceeds of $17,660,000.

Cost of sales includes non-cash impairment charges of $612,000 in 2016, $163,029,000 in 2015 and $32,665,000 in 2014 related to our proved properties and unproved leasehold oil and gas working interests.

The major classes of assets and liabilities of discontinued operations at year-end 2016 and 2015 are as follows:

	At Year-End
	2016		2015
	(In thousands)
Assets of Discontinued Operations:
Receivables, net of allowance for bad debt	$	6	$	4,632
Oil and gas properties and equipment, net	—		79,733
Goodwill and other intangible assets	—		19,673
Prepaid expenses	8		96
Other assets	—		833
	$	14	$	104,967
Liabilities of Discontinued Operations:
Accounts payable	$	67	$	342
Accrued property taxes	—		259
Other accrued expenses	5,228		8,924
Other liabilities	—		1,667
	$	5,295	$	11,192

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

	For the Year
	2016			2015			2014
	(In thousands)
Operating activities:
Asset impairments	$	612		$	105,337		$	15,535
Dry hole and unproved leasehold impairment charges	—			67,639			29,528
Loss (gain) on sale of assets	13,664			706			(8,526		)
Depreciation, depletion and amortization	2,202			28,391			28,758
	$	16,478		$	202,073		$	65,295
Investing activities:
Oil and gas properties and equipment	$	(579	)	$	(49,717	)	$	(101,145	)
Acquisition of oil and gas properties	—			—			(1,100		)
Proceeds from sales of assets	77,105			17,800			17,660
	$	76,526		$	(31,917	)	$	(84,585	)