Divestitures and Discontinued Operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS

In October 2014, we completed the sale of our entire 50% ownership interest in PDCM to an unrelated third-party for aggregate consideration, after our share of PDCM's debt repayment and other working capital adjustments, of approximately $192 million, comprised of approximately $153 million in net cash proceeds and a promissory note due in 2020 of approximately $39 million. The transaction included the buyer's assumption of our share of the firm transportation commitment related to the assets owned by PDCM, as well as our share of PDCM's natural gas hedging positions for the years 2014 through 2017. The divestiture resulted in a pre-tax gain of $76.3 million. Proceeds from the divestiture were used to reduce outstanding borrowings on our revolving credit facility and to fund a portion of our 2014 capital budget. The divestiture represents a strategic shift that will have a major effect on our operations in that our organizational structure will no longer have joint venture partners and we no longer have dry gas assets. Therefore, our proportionate share of PDCM's Marcellus Shale results of operations have been separately reported as discontinued operations in the condensed consolidated statements of operations for the three months ended March 31, 2014.

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

Condensed consolidated statements of operations - discontinued operations	Three Months Ended March 31, 2014
	(in thousands)
Revenues
Crude oil, natural gas and NGLs sales	$	9,831
Commodity price risk management loss, net	(2,248		)
Well operations, pipeline income and other	22
Total revenues	7,605
Costs, expenses and other
Production costs	3,121
Impairment of crude oil and natural gas properties	69
Depreciation, depletion and amortization	3,750
Other	1,148
Loss on sale of properties and equipment	146
Total costs, expenses and other	8,234
Interest expense	(647		)
Interest income	64
Loss from discontinued operations	(1,212		)
Provision for income taxes	493
Loss from discontinued operations, net of tax	$	(719	)

The following table presents supplemental cash flows information related to our 50% ownership interest in PDCM, which is classified as discontinued operations:

Supplemental cash flows information - discontinued operations	Three Months Ended March 31, 2014
	(in thousands)
Cash flows from investing activities:
Capital expenditures	$	(10,380	)
Significant non-cash investing items:
Change in accounts payable related to purchases of properties and equipment	(1,536		)

Assets held for sale of $2.9 million as of March 31, 2015 and December 31, 2014 represents the carrying value of approximately 12 acres of land located adjacent to our Bridgeport, West Virginia, regional headquarters.