Other Operating Revenues and Expenses

3 Months Ended

Mar. 31, 2014

Other Operating Revenues [Abstract]

Other Operating Revenues and Expenses

Other Operating Revenues and Expenses

Other operating revenues and expenses for the three months ended March 31, 2014 and March 31, 2013 are as follows:

	Three Months Ended March 31,
	2014			2013
	(In thousands)
Other operating revenues:
Gain on sales of assets	$	5,142		$	495
Marketing revenue	382			1,795
Total other operating revenues	$	5,524		$	2,290
Other operating expenses:
Loss on sales of assets	$	(492	)	$	(127	)
Impairment of inventory	(10		)	(6		)
Total other operating expenses	$	(502	)	$	(133	)

During the three months ended March 31, 2014, gain on sales of assets included the sale of certain non-core Austin Chalk/Eagle Ford assets in March 2014 and the sale of a property in Ward County, Texas in February 2014 (see Note 4).

We maintain an inventory of tubular goods and other well equipment for use in our exploration and development drilling activities.  Inventory is carried at the lower of average cost or estimated fair market value.  We categorize the measurement of fair value of inventory as Level 2 under applicable accounting standards.  To determine estimated fair value of inventory, we subscribe to market surveys and obtain quotes from equipment dealers for similar equipment.  We then correlate the data as needed to estimate the fair value of the specific items (or groups of similar items) in our inventory.  If the estimated fair values for those specific items (or groups of similar items) in our inventory are less than the related average cost, a provision for impairment is made.