Sale of Oil and Natural Gas Property Interests

12 Months Ended

Dec. 31, 2016

Discontinued Operations And Disposal Groups [Abstract]

Sale of Oil and Natural Gas Property Interests

Note 5—Sale of Oil and Natural Gas Property Interests

Asset Sales

During the year ended December 31, 2014, the Company sold a central processing facility for proceeds of $16.8 million, of which $15.5 million had been received by December 31, 2014.  The proceeds exceeded the Company’s cost basis in the facility, resulting in a gain of approximately $1.0 million during 2014.

During the year ended December 31, 2015, the Company sold a second central processing facility and certain pipelines.  The transaction resulted in proceeds of $36.0 million and a gain on sale of assets of $4.8 million, which was recorded during the year ended December 31, 2015.  These assets were classified as assets held for sale as of December 31, 2014.

Additional pipeline assets were sold during the year ended December 31, 2015, which resulted in proceeds of approximately $2.8 million and a loss on sale of assets of approximately $0.1 million.

During the year ended December 31, 2016, the Company completed the sale of its Conventional oil and gas properties and related equipment for approximately $4.7 million.  As of December 31, 2015, the Company was actively negotiating the sale of these assets and the costs related to these properties of approximately $21.8 million and corresponding asset retirement obligations of approximately $19.1 million were classified as held for sale in the consolidated balance sheets as of December 31, 2015.  In addition, approximately $0.2 million of pipeline assets were classified as held for sale as of December 31, 2015.  As a result of this sale, the Company recognized a gain of approximately $1.1 million.

During the year ended December 31, 2016, the Company sold additional pipeline assets, which resulted in proceeds of approximately $0.4 million and a loss of less than $0.1 million.

During the year ended December 31, 2016, the Company received $3.9 million from the sale of mineral interests related primarily to unproved properties to a third party.  No gain or loss was recognized for this transaction, which was recorded as a reduction of oil and gas properties.

During the year ended December 31, 2016, the Company received $4.8 million from the sale of unproved leases to a third party.  No gain or loss was recognized for this transaction, which was recorded as a reduction of oil and gas properties.

During the year ended December 31, 2016, the Company received approximately $63.8 million from a completed asset sale with a third party totaling approximately 9,900 acres.  As a result of this sale, the Company recognized a loss of approximately $7.6 million.

Acreage Trades

During the year ended December 31, 2015, the Company completed acreage trades with various working interest owners totaling approximately 10,500 acres.  The exchanges were accounted for at net book value, with no gain or loss recognized.  One of the trades involved the exchange of approximately 7,000 acres and the Company received a credit of $17.5 million related to reimbursement of capital expenditures, which was recorded as a reduction of oil and natural gas properties.  No other trades involved more than 1,500 acres and no significant cash was paid or received related to these other trades.

During the year ended December 31, 2016, the Company received approximately $1.6 million from completed acreage trades with various working interest owners totaling approximately 249.5 acres.  No gain or loss was recognized for this transaction, which was recorded as a reduction of oil and gas properties.