Other Operating Revenues and Expenses

9 Months Ended

Sep. 30, 2014

Other Income and Expenses [Abstract]

Other Operating Revenues and Expenses

Other Operating Revenues and Expenses

Other operating revenues and expenses for the three months and nine months ended September 30, 2014 and September 30, 2013 are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
Other operating revenues:
Gain on sales of assets	$	1,080	$	1,971	$	11,289	$	2,738
Marketing revenue	1,774		—		3,351		1,795
Total other operating revenues	$	2,854	$	1,971	$	14,640	$	4,533
Other operating expenses:
Loss on sales of assets	$	1,480	$	39	$	2,210	$	1,084
Marketing expense	—		302		—		658
Impairment of inventory	—		122		10		127
Total other operating expenses	$	1,480	$	463	$	2,220	$	1,869

During the three months ended September 30, 2014, gain on sales of assets included an $0.8 million gain on sale of certain non-core Reeves County, Texas assets in July 2014 and loss on sales of assets included a loss of $0.8 million related to post-closing adjustments related to the sale of the Austin Chalk/Eagle Ford assets sold in March 2014. During the nine months ended September 30, 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.