Properties and Equipment

9 Months Ended

Sep. 30, 2014

Oil and Gas Property [Abstract]

Property, Plant and Equipment Disclosure

PROPERTIES AND EQUIPMENT

The following table presents the components of properties and equipment, net of accumulated depreciation, depletion and amortization ("DD&A"):

	September 30, 2014			December 31, 2013
	(in thousands)
Properties and equipment, net:
Crude oil and natural gas properties
Proved	$	1,976,930		$	1,677,271
Unproved	288,208			253,464
Total crude oil and natural gas properties	2,265,138			1,930,735
Equipment and other	30,428			28,832
Land and buildings	12,668			13,434
Construction in progress	146,324			41,180
Properties and equipment, at cost	2,454,558			2,014,181
Accumulated DD&A	(670,761		)	(529,543		)
Properties and equipment, net	$	1,783,797		$	1,484,638

The following table presents impairment charges recorded for crude oil and natural gas properties:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands)
Continuing operations:
Impairment of proved properties	$	—	$	3,750	$	—	$	48,750
Impairment of individually significant unproved properties	—		—		—		517
Amortization of individually insignificant unproved properties	1,085		486		2,843		2,527
Other	778		—		778		—
Total continuing operations	1,863		4,236		3,621		51,794
Discontinued operations:
Impairment of individually significant unproved properties	—		154		—		462
Amortization of individually insignificant unproved properties	274		82		433		180
Total discontinued operations	274		236		433		642
Total impairment of crude oil and natural gas properties	$	2,137	$	4,472	$	4,054	$	52,436

During the first quarter of 2013, we recognized an impairment charge of approximately $45.0 million related to all of our shallow Upper Devonian (non-Marcellus Shale) Appalachian Basin producing properties located in West Virginia and Pennsylvania previously owned directly by us, as well as through our proportionate share of PDCM. The impairment charge represented the excess of the carrying value of the assets over the estimated fair value, less the cost to sell. The fair value of the assets was determined based upon estimated future cash flows from unrelated third-party bids, a Level 3 input. Pursuant to a purchase and sale agreement entered into in October 2013, we determined that the carrying value of the above-mentioned properties exceeded the transaction sales price, a Level 3 input, less costs to sell. As a result, we recognized an additional impairment charge of approximately $3.8 million in the third quarter of 2013 to reduce the carrying value of the net assets to reflect the current net sales price. The impairment charge was included in the condensed consolidated statement of operations line item impairment of crude oil and natural gas properties.