Discontinued Operations
During the first quarter of 2012, our management signed an agreement to divest its holdings in the Barnett Shale and the Arkoma Basin. The transaction closed in second-quarter 2012. Total proceeds received from the sale were $306 million.
Summarized Results of Discontinued Operations
|
| | | | | | | | |
| | 2012 | | 2011 |
| (Millions) |
Revenues | | $ | 28 |
| | $ | 118 |
|
Income (loss) from discontinued operations before gain on sale, impairments and income taxes | | $ | (3 | ) | | $ | (15 | ) |
Gain on sale | | 38 |
| | — |
|
Impairments | | — |
| | (209 | ) |
Less: Provision (benefit) for income taxes | | 13 |
| | (82 | ) |
Income (loss) from discontinued operations | | $ | 22 |
| | $ | (142 | ) |
The impairments in 2011 reflect write-downs to estimates of fair value of our holdings in the Barnett Shale and the Arkoma Basin. Impairment charges on our Fort Worth (Barnett Shale) properties were $180 million in 2011. Impairment charges in Arkoma were $29 million in 2011. These nonrecurring fair value measurements, which fall within Level 3 of the fair value hierarchy, utilized a probability-weighted discounted cash flow analysis that was based on internal cash flow models.
