Asset Retirement Obligations

6 Months Ended

Jun. 30, 2014

Asset Retirement Obligations [Abstract]

NOTE 7 – ASSET RETIREMENT OBLIGATIONS

We record the estimated asset retirement obligation (“ARO”) as a liability on our consolidated balance sheet and capitalize the cost in the “Oil and natural gas properties, using the full cost method of accounting” or “Other property, plant and equipment” balance sheet captions during the period in which the obligation is incurred. We record the accretion of our ARO liabilities in “Accretion of asset retirement obligations” in our consolidated statements of operations. Payments to settle asset retirement obligations occur over the lives of the oil and natural gas properties and other property, plant and equipment.

Changes in our asset retirement obligations for the six months ended June 30, 2014 are presented in the following table:


		Six Months Ended
		June 30, 2014
Beginning of period	$	155,321
Assumed in acquisition		1,249
Divested		(186)
Revisions to previous estimates		690
Liabilities incurred		686
Liabilities settled		(1,270)
Accretion expense		4,313
End of period	$	160,803
Less: Current portion of asset retirement obligations		(4,356)
Asset retirement obligations - non-current	$	156,447