Property and Equipment

12 Months Ended

Dec. 31, 2012

(5) Property and Equipment

The following table summarizes our property and equipment.


	December 31,
		2012		2011
	(In thousands)
Proved oil and natural gas properties	$	1,982,657	$	1,049,140
Unproved oil and natural gas properties		36,992		29,382
Other		5,998		3,726
Total property and equipment	$	2,025,647	$	1,082,248

Substantially all of our oil and natural gas properties serve as collateral under our credit facility.

We recognized impairments of $8.9 million, $32.5 million and $26.1 million in the years ended December 31, 2012, 2011 and 2010, respectively.

Impairments for the year ended December 31, 2012 were primarily due to the decline in our estimate of future natural gas prices affecting certain of our natural gas producing fields and to reservoir performance at two of those fields. These fields were determined to have future net cash flows less than their carrying values resulting in the write down of these properties to their estimated fair values. We also recorded impairments for undeveloped leases that are expiring in 2013 for which we have no development plans.

Impairments for the year ended December 31, 2011 were primarily related to our natural gas producing fields and our deepwater producing well (primarily natural gas). Impairments related to our deepwater producing well were primarily due to the decline in our estimate of future natural gas prices, reservoir performance and higher estimated operating costs. Additional impairments for the year ended December 31, 2011 were primarily related to reservoir performance at other natural gas producing fields.

Impairments for the year ended December 31, 2010 were primarily related to the decline in our estimate of future natural gas prices as of September 30, 2010 as compared to June 30, 2010 affecting two producing fields, including our deepwater producing well, and to reservoir performance of one of these fields and one additional producing field. These producing fields were determined to have future net cash flows less than their carrying values resulting in the write down of these properties to their estimated fair values during the year ended December 31, 2010.

At December 31, 2012 and 2011, we did not have any exploratory projects that were suspended for a period greater than one year.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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