XML 23 R12.htm IDEA: XBRL DOCUMENT v2.3.0.15
Inventory
9 Months Ended
Sep. 30, 2011
Inventory [Abstract] 
Inventory

(4)   INVENTORY

 

Inventory recorded in current assets includes $10.8 million at September 30, 2011 and $10.0 million at December 31, 2010, for natural gas in underground storage owned by the Company's E&P segment, and $35.7 million at September 30, 2011 and $25.1 million at December 31, 2010, for tubulars and other equipment used in the E&P segment.

 

The Company has one natural gas storage facility. The current portion of the natural gas is classified in inventory and carried at the lower of cost or market. The non-current portion of the natural gas is classified in property and equipment and carried at cost. The carrying value of the non-current natural gas is evaluated for recoverability whenever events or changes in circumstances indicate that it may not be recoverable. Withdrawals of current natural gas in underground storage are accounted for by a weighted average cost method whereby natural gas withdrawn from storage is relieved at the weighted average cost of current natural gas remaining in the facility.

 

Other Assets include $18.0 million at September 30, 2011 and $20.6 million at December 31, 2010 for inventory held by the Midstream Services segment consisting primarily of pipe that will be used to construct gathering systems for the Fayetteville Shale and Marcellus Shale plays.

 

Tubulars and other equipment are carried at the lower of cost or market and are accounted for by a moving weighted average cost method that is applied within specific classes of inventory items. Purchases of inventory are recorded at cost and inventory is relieved at the weighted average cost of items remaining within a specified class.