Discontinued Operations

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

At year-end 2016, we had divested of 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.

Summarized results from discontinued operations were as follows:

	Second Quarter						First Six Months
	2017			2016			2017			2016
	(In thousands)
Revenues	$	4		$	1,377		$	13		$	5,647
Cost of sales	(4		)	(1,521		)	(10		)	(6,485		)
Other operating expenses	1,043			(1,066		)	989			(2,389		)
Income (loss) from discontinued operations before income taxes	$	1,043		$	(1,210	)	$	992		$	(3,227	)
Gain (loss) on sale of assets before income taxes	100			(3,596		)	100			(14,573		)
Income tax benefit	86			2,758			555			7,536
Income (loss) from discontinued operations, net of taxes	$	1,229		$	(2,048	)	$	1,647		$	(10,264	)

In second quarter 2017, other operating expenses include a benefit of $1,043,000 due to a reduction of an accrual resulting from a change in estimate related to potential environmental liabilities to plug and abandon certain oil and gas wells in Wyoming.

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. In addition, in first six months 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 net 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. A significant portion of the net loss on sale, $7,244,000, is related to write-off of allocated goodwill to sold producing oil and gas properties.

The major classes of assets and liabilities of discontinued operations at second quarter-end 2017 and year-end 2016 are as follows:

	Second Quarter-End		Year-End
	2017		2016
	(In thousands)
Assets of Discontinued Operations:
Receivables, net of allowance for bad debt	$	1	$	6
Prepaid expenses	—		8
	$	1	$	14
Liabilities of Discontinued Operations:
Accounts payable	$	—	$	67
Other accrued expenses	157		5,228
	$	157	$	5,295

Significant operating activities and investing activities of discontinued operations included in our consolidated statements of cash flows are as follows:

	First Six Months
	2017			2016
	(In thousands)
Operating activities:
Asset impairments	$	—		$	612
Accounts payable and other accrued liabilities	(3,000		)	—
Loss on sale of assets	—			14,573
Depreciation, depletion and amortization	—			2,147
	$	(3,000	)	$	17,332
Investing activities:
Oil and gas properties and equipment	$	—		$	(567	)
Proceeds from sales of assets	100			75,944
	$	100		$	75,377