Sale of Piceance and Arkoma Properties - Discontinued Operations (Arkoma properties)

12 Months Ended

Dec. 31, 2012

Arkoma properties

Sale of Piceance and Arkoma Properties - Discontinued Operations

Sale of Piceance and Arkoma Properties - Discontinued Operations

(3) Sale of Piceance and Arkoma Properties—Discontinued Operations

        On December 21, 2012 the Company completed the sale of its Piceance Basin assets. Proceeds from the sale of $316 million represent the purchase price of $325 million, adjusted for expenses of the sale and estimated income, expenses, and capital costs related to the Piceance Basin properties from the October 1, 2012 effective date of the sale through December 21, 2012. The Company had a loss of $364 million on the sale of the Piceance Basin assets. The purchaser also assumed all of the Company's Rocky Mountain firm transportation obligations. Because of the sale of the Piceance Basin assets, the Company also liquidated its hedge positions related to the Piceance Basin and realized additional proceeds from these transactions of approximately $100 million.

        On June 29, 2012 the Company completed its sale of its Arkoma Basin assets and the commodity hedges associated with the Arkoma assets. Proceeds from the sale of $427 million represent the purchase price of $445 million adjusted for expenses of the sale and estimated income, expenses, and capital costs from the effective date of the sale through the closing date of June 29, 2012. The Company had a loss of $432 million on the sale of the Arkoma Basin assets. The Company's Arkoma Basin midstream operations, which were sold on November 5, 2010, are also included in discontinued operations through the date of the sale. The Company realized a gain in 2010 of $148 million on the sale of those midstream operations.

        Results of operations and the loss on the sale of the Piceance Basin and Arkoma Basin assets are shown as discontinued operations on the accompanying Consolidated Statement of Operations and Comprehensive Income (Loss) and are comprised of the following (in thousands):

	Year ended December 31
	2010			2011			2012
Sales of oil, natural gas, and natural gas liquids	$	159,031			196,705			125,396
Commodity derivative fair value gains		166,685			180,130			46,358
Gas gathering and processing revenue		20,554			—			—
Gain on sale of midstream assets		147,559			—			—
Total revenues		493,829			376,835			171,754
Lease operating expenses		24,353			26,037			19,901
Gathering, compression, and transportation		36,572			50,453			45,089
Production taxes		5,892			6,307			2,967
Exploration expenses		22,444			5,842			664
Impairment of unproved properties		29,783			6,387			962
Depletion, depreciation, and amortization		115,433			114,805			88,720
Accretion of asset retirement obligations		306			359			404
Loss on sale of assets		—			—			795,945
Total expenses		234,783			210,190			954,652
Income (loss) from discontinued operations before income taxes		259,046			166,645			(782,898	)
Income tax (expense) benefit		(29,070	)		(45,155	)		272,553
Net income (loss)		229,976			121,490			(510,345	)
Noncontrolling interest in net income of consolidated subsidiary		(1,564	)		—			—
Net income (loss) from discontinued operations attributable to Antero equity owners	$	228,412			121,490			(510,345	)