ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS

The tables below set forth selected financial information related to net assets divested and operating results related to discontinued operations. Net assets held for sale represents the assets that were or are expected to be sold, net of liabilities, that were or are expected to be assumed by the purchaser. While the reclassification of revenues and expenses related to discontinued operations for prior periods had no impact upon previously reported net earnings, the consolidated statement of operations table presents the revenues and expenses that were reclassified from the specified consolidated statement of operations line items to discontinued operations.

The following table presents consolidated balance sheet data related to net assets held for sale:

Consolidated balance sheet	As of December 31, 2013
	(In thousands)
Assets
Properties and equipment, net	$	2,785
Liabilities
Asset retirement obligation	2,061
Net Assets	$	724

The following table presents consolidated statement of operations data related to our discontinued operations:

	Year Ended December 31,
Consolidated statements of operations - discontinued operations	2013			2012			2011
	(in thousands)
Revenues
Crude oil, natural gas and NGLs sales	$	20,398		$	36,422		$	80,860
Sales from natural gas marketing	2,825			1,708			2,949
Well operations, pipeline income and other	890			1,888			2,542
Total revenues	24,113			40,018			86,351
Costs, expenses and other
Production costs	7,975			22,453			30,885
Cost of natural gas marketing	2,673			1,529			2,634
Impairment of crude oil and natural gas properties	3			162,254			22,858
Depreciation, depletion and amortization	2,258			48,101			47,521
Other	2,528			2,084			1,054
(Gain) loss on sale of properties and equipment	2,330			(19,920		)	(3,854		)
Total costs, expenses and other	17,767			216,501			101,098
Income (loss) from discontinued operations	6,346			(176,483		)	(14,747		)
Provision for income taxes	(2,175		)	67,466			5,620
Income (loss) from discontinued operations, net of tax	$	4,171		$	(109,017	)	$	(9,127	)

Appalachian Basin. In October 2013, we executed a purchase and sale agreement for the sale of our shallow Upper Devonian (non-Marcellus Shale) Appalachian Basin crude oil and natural gas properties owned directly by us, as well as through our proportionate share of PDCM. The properties consisted of approximately 3,500 gross shallow producing wells, related facilities and associated leasehold acreage, limited to the Upper Devonian and shallower formations. Substantially all of the divestiture closed in December 2013 for aggregate consideration of approximately $20.6 million, of which our share of the proceeds was approximately $5.1 million, subject to certain post-closing adjustments. We received our proportionate share of cash proceeds of $0.9 million and recorded our proportionate share of a note receivable and account receivable from the buyer of $3.3 million and $0.8 million, respectively. The remaining assets and related liabilities were classified as held for sale in the consolidated balance sheet as of December 31, 2013. Concurrent with the closing of the transaction, our $6.7 million irrevocable standby letter of credit and an agreement for firm transportation services was released and novated to the buyer. We retained all zones, formations and intervals below the Upper Devonian formation including the Marcellus Shale, Utica Shale and Huron Shale. The divestiture of these assets did not meet the requirements to be accounted for as discontinued operations.

Piceance Basin and NECO. In February 2013, we entered into a purchase and sale agreement pursuant to which we agreed to sell to Caerus our Piceance Basin, NECO and certain other non-core Colorado oil and gas properties, leasehold mineral interests and related assets. Additionally, certain firm transportation obligations and natural gas hedging positions were assumed by the buyer. In June 2013, this divestiture was completed with total consideration of approximately $177.6 million, with an additional $17.0 million paid to our non-affiliated investor partners in our affiliated partnerships. The sale resulted in a pre-tax loss of $2.3 million. The proceeds from the asset divestiture were used to pay down our revolving credit facility and to fund a portion of our 2013 capital budget. Following the sale to Caerus, we do not have significant continuing involvement in the operations of, or cash flows from, the Piceance Basin and NECO oil and gas properties. Accordingly, the results of operations related to these assets have been separately reported as discontinued operations in the consolidated statement of operations for all periods presented. The sale of our other non-core Colorado oil and gas properties did not meet the requirements to be accounted for as discontinued operations.

Permian Basin. During the fourth quarter of 2011, we completed the sale of our non-core Permian assets to unrelated third parties for a total of $13.2 million. Additionally, on December 20, 2011, we executed a purchase and sale agreement with COG, a wholly owned subsidiary of Concho Resources Inc., for the sale of our core Permian Basin assets for a sale price of $173.9 million, subject to certain post-closing adjustments. The effective date of the transaction was November 1, 2011. Following the sale to COG, we do not have significant continuing involvement in the operations of, or cash flows from, these assets; accordingly, the Permian assets were reclassified as held for sale as of December 31, 2011, and the results of operations related to those assets have been separately reported as discontinued operations in the 2012 and 2011 consolidated statements of operations. On February 28, 2012, the divestiture closed. After final post-closing adjustments, total proceeds received were $189.2 million, resulting in a pre-tax gain on sale of $19.9 million.