Acquisitions and Dispositions (Tables)

6 Months Ended

Jun. 30, 2012

Acquisitions and Dispositions [Abstract]

Discontinued Operations Balance Sheet and Income Statement Disclosures [Table Text Block]

As of June 30, 2012, all the properties in our North Sea geographical segment met the criteria for classification as held for sale in our consolidated balance sheets. Our consolidated statements of operations have been reclassified for all periods presented to reflect the operations of our North Sea geographical segment as discontinued. Upon reclassification as held for sale, depreciation, depletion, and amortization (DD&A) ceased. Our long-term debt is recorded at the consolidated level; therefore no interest expense has been allocated to discontinued operations.

North Sea assets and liabilities classified as held for sale were as follows:



	June 30, 2012
(millions)
Current Assets
Accounts Receivable, Net	$	19
Other Current Assets	11
Total Current Assets	30
Property, Plant and Equipment, Net	294
Total Assets Held for Sale	$	324
Accounts Payable - Trade	$	9
Asset Retirement Obligation	89
Deferred Tax Liability	136
Total Liabilities Related to Assets Held for Sale	$	234

Summarized results of discontinued operations are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
(millions)
Oil and Gas Sales	$	65	$	112	$	140	$	225
Income Before Income Taxes	39		69		79		137
Income Tax Expense	22		44		47		64
Discontinued Operations, Net of Tax	$	17	$	25	$	32	$	73

Purchase Price Allocation of Acquisition

As part of the joint venture transaction, we agreed to fund one-third of CONSOL’s 50% working interest share of future drilling and completion costs, capped at $400 million each year, up to approximately $2.1 billion (CONSOL Carried Cost Obligation), which is expected to be paid out over approximately eight years. The CONSOL Carried Cost Obligation is suspended if average Henry Hub natural gas prices fall and remain below $4.00 per MMBtu in any three consecutive month period and will remain suspended until average Henry Hub natural gas prices are above $4.00 per MMBtu for three consecutive months. The CONSOL Carried Cost Obligation is currently suspended due to low natural gas prices.

As a result of the transaction, we recorded the following:



	June 30, 2012
(millions)
Unproved Oil and Gas Properties	$	853
Proved Oil and Gas Properties	386
Investment in CONE Gathering LLC	69
Total Assets Acquired ⁽¹⁾	$	1,308


⁽¹⁾	Total reflects impact of $17 million imputed interest on CONSOL installment payments.

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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