Properties and Equipment, Net

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Properties and equipment, net are comprised of the following:



(In thousands)	June 30, 2017			December 31, 2016
Proved oil and gas properties	$	6,801,380		$	7,437,604
Unproved oil and gas properties	291,250			260,543
Gathering and pipeline systems	1,569			187,846
Land, building and other equipment	84,680			84,462
	7,178,879			7,970,455
Accumulated depreciation, depletion and amortization	(2,975,894		)	(3,720,330		)
	$	4,202,985		$	4,250,125

At June 30, 2017, the Company did not have any projects that had exploratory well costs capitalized for a period of greater than one year after drilling.

Divestitures

In February 2016, the Company completed the divestiture of certain proved and unproved oil and gas properties in east Texas for approximately $56.4 million resulting in a $0.5 million gain on sale of assets.

Assets Held for Sale

In June 2017, the Company agreed to sell certain proved and unproved oil and gas properties and related pipeline assets located in West Virginia, Virginia and Ohio for $41.3 million, subject to customary purchase price adjustments, and recorded an impairment of $68.6 million associated with the proposed sale of these properties. Accordingly, these assets were classified as held for sale as of June 30, 2017. The Company expects to close this transaction in the third quarter of 2017.

Balance sheet data related to the assets held for sale is as follows:



(In thousands)	June 30, 2017
ASSETS
Inventories	$	2,228
Properties and equipment, net	104,518
Deferred income taxes	6,803
	113,549
LIABILITIES
Asset retirement obligations	75,693
	75,693
Net assets	$	37,856

The fair value of the impaired properties was determined using a market approach that took into consideration the expected sales price included in the purchase and sale agreement the Company executed on June 29, 2017. Accordingly, the inputs associated with the fair value of the assets held for sale were considered Level 3 in the fair value hierarchy. Refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K for a description of the fair value hierarchy.