PROPERTIES AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2013

PROPERTIES AND EQUIPMENT, NET

PROPERTIES AND EQUIPMENT, NET

2. PROPERTIES AND EQUIPMENT, NET

Properties and equipment, net are comprised of the following:

	June 30,			December 31,
(In thousands)	2013			2012
Proved oil and gas properties	$	6,245,196		$	5,724,940
Unproved oil and gas properties	458,047			467,483
Gathering and pipeline systems	240,062			239,656
Land, building and other equipment	90,690			86,137
	7,033,995			6,518,216
Accumulated depreciation, depletion and amortization	(2,475,788		)	(2,207,239		)
	$	4,558,207		$	4,310,977

At June 30, 2013, the Company did not have any projects that had exploratory well costs that were capitalized for a period of greater than one year after drilling.

Divestitures

In June 2012, the Company sold a 35% non-operated working interest associated with certain of its Pearsall Shale undeveloped leaseholds in south Texas to a wholly-owned subsidiary of Osaka Gas Co., Ltd. (Osaka) for total consideration of approximately $251.0 million. The Company received $125.0 million in cash proceeds and Osaka agreed to fund 85% of the Company’s share of future drilling and completion costs associated with these leaseholds until it has paid approximately $126.0 million in accordance with a joint development agreement entered into at the closing. The Company recognized a $67.0 million gain on sale of assets associated with this sale. The drilling and completion carry under the joint development agreement will terminate two years after the closing of the transaction; however, based on the Company’s current drilling and completion activities in the Pearsall Shale, the Company expects that the carry will be fully satisfied in the second half of 2013.