Divestitures and Assets Held for Sale

3 Months Ended

Mar. 31, 2012

Divestitures and Assets Held for Sale Disclosure [Abstract]

Divestitures and Assets Held for Sale

Note 3 - Assets Held for Sale

Assets are classified as held for sale when the Company commits to a plan to sell the assets and there is reasonable certainty the sale will take place within one year. Upon classification as held for sale, long-lived assets are no longer depreciated or depleted and a measurement for impairment is performed to identify and expense any excess of carrying value over fair value less costs to sell. Subsequent changes to estimated fair value less the cost to sell will impact the measurement of assets held for sale for which fair value is determined to be less than the carrying value of the assets.

As of March 31, 2012, the accompanying condensed consolidated balance sheets (“accompanying balance sheets”) present $42.2 million of assets held for sale, net of accumulated depletion, depreciation, and amortization. A corresponding asset retirement obligation liability of $1.8 million is separately presented. These assets held for sale and asset retirement obligation liabilities include certain assets located in the Company’s Rocky Mountain region. ThCe Company determined these planned asset sales do not qualify for discontinued operations accounting under financial statement presentation authoritative guidance.

Subsequent to March 31, 2012, the Company began to re-market its Marcellus shale assets located in Pennsylvania and to market certain assets located in its Rocky Mountain region. The aggregate net book value of these assets, net of accumulated depletion, depreciation, and amortization is approximately $55 million. These assets were not classified as held for sale as of March 31, 2012.