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Subsequent Event
9 Months Ended
Sep. 30, 2012
Subsequent Event [Abstract]  
Subsequent Event

Note 15: Subsequent Event

On October 31, 2012, a subsidiary within our Chemical Business closed an acquisition of working interests in certain natural gas properties located in Wyoming County, Pennsylvania, within the Marcellus Shale. Our Chemical Business acquired from a private seller an average working interest of 9.7% (7.7% net revenue interest) in 14 proved producing natural gas wells, 7 proved non-producing natural gas wells and 36 proved undeveloped future drilling locations identified on the leasehold. Our Chemical Business purchases a significant amount of natural gas as a feedstock for the production of anhydrous ammonia. Management considers this acquisition as an economic hedge against a potential rise in natural gas prices in the future for a portion of our future natural gas production requirements. The purchase price was approximately $49 million, subject to certain adjustments, and was funded by utilizing cash on hand. We are considering financing a portion of the acquisition price in the near term.

 

Due to the limited time since the acquisition date, the initial accounting for this acquisition is incomplete at this time. As a result, we are unable to provide amounts recognized as of the acquisition date for major classes of assets and liabilities acquired, including the information required for goodwill and contingencies (preliminary purchase price allocation). Also because the initial accounting for this transaction is incomplete, we are unable to provide supplemental pro forma combined revenue and earnings information. We will include this information in our Annual Report on Form 10-K for the year ending December 31, 2012.