(3)	Acquisitions and Dispositions

We recognized a pretax net loss on the sale of assets of $406.9 million in the year ended December 31, 2015 compared to a gain of $285.6 million in 2014 and a gain of $92.3 million in 2013. The following describes the significant divestitures that are included in our consolidated results of operations for each of three years ended December 31, 2015, 2014 and 2013.

2015 Dispositions

Virginia and West Virginia. In December 2015, we sold the majority of our producing properties and gathering assets in Virginia and West Virginia for cash proceeds of $876.0 million, before closing adjustments. We recorded a pretax loss of $407.7 million related to this sale. We recognized $52.3 million of field net operating income (defined as natural gas, oil and NGLs sales plus net brokered margin less direct operating expenses, production and ad valorem taxes, transportation expense, exploration expense and divisional office general and administrative expense) for these assets for the period from January 1, 2015 to December 30, 2015 compared to $98.3 million in the year ended December 31, 2014 and $46.1 million in the year ended December 31, 2013.

West Texas. In February 2015, we sold certain of our West Texas properties for cash proceeds of $10.5 million and we recognized a pretax loss of $101,000.

Other. During 2015, we also sold miscellaneous inventory, surface acreage and unproved property for proceeds of $4.4 million and recorded a gain of $943,000.

2014 Dispositions

Conger Exchange Transaction. In April 2014, we entered into an exchange agreement with EQT Corporation and certain of its affiliates (collectively, “EQT”) in which we sold our Conger assets in Glasscock and Sterling Counties, Texas in exchange for producing properties and gas gathering assets in Virginia and $145.0 million in cash, before closing adjustments (“the Conger Exchange”). We closed the exchange transaction in June 2014 and recognized a pretax gain of $272.7 million, after selling expenses of $5.0 million, which is recognized as a gain on sale of assets in our consolidated statements of operations for the year ended December 31, 2014. For the period from January 1, 2014 through June 16, 2014, we recognized $21.9 million of field net operating income (defined as natural gas, oil and NGLs sales plus net brokered margin less direct operating expenses, production and ad valorem taxes and transportation expenses) for our Conger assets compared to $48.7 million for the year ended December 31, 2013.

In connection with the Conger Exchange, we acquired the remaining 50% interest held by EQT in Nora Gathering, LLC (“NGLLC”), a natural gas gathering operation, which we had previously accounted for using the equity method of accounting. As of June 2014, we consolidated NGLLC into our consolidated financial statements. Our previous 50% membership interest in NGLLC was remeasured to fair value of $134.8 million on the acquisition date, resulting in a gain of $10.0 million which is recognized in gain on sale of assets in our consolidated statements of operations for the year ended December 31, 2014.

For the period from June 16, 2014 through December 31, 2014, we recognized $33.8 million of natural gas, oil and NGLs sales from the property interests acquired in the Conger Exchange and we recognized $25.7 million of field net operating income from the property interests acquired in the Conger Exchange.

Conger Exchange Fair Value. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (often referred to as the “exit price”). The fair value measurement is based on the assumptions of market participants and not those of the reporting entity. Therefore, entity-specific intentions do not impact the measurement of fair value unless those assumptions are consistent with market participant views.

The fair value of the Conger Exchange described above was based on an income approach which was supplemented by a market approach. For the natural gas and oil properties, the income approach uses significant inputs not observable in the market, which are Level 3 inputs. The significant inputs assumed include future production, costs and capital, commodity prices, risk-adjusted discount rates, natural gas and oil pricing differentials, and projected reserve recovery factors. The market approach uses inputs such as recent market transactions in a similar geographic region and with similar production. The income approach for the natural gas gathering operations was based on a discounted future net cash flow model, which uses Level 3 inputs and was supplemented by a market approach.

Other. During 2014, we also sold miscellaneous proved and unproved oil and gas properties, inventory and other property and equipment for proceeds of $35.5 million and recognized a pretax gain of $3.0 million.

2013 Dispositions

Southeast New Mexico and West Texas. In April 2013, we completed the sale of our Delaware and Permian Basin properties in Southeast New Mexico and West Texas for a price of $275.0 million and we recognized a pretax gain of $83.3 million, before selling expenses of $4.2 million.

Other. During 2013, we also sold miscellaneous proved and unproved oil and gas properties, inventory, and other property and equipment for proceeds of $40.5 million and recorded a pretax gain of $13.2 million.