On a unit basis, DD&A from continuing operations was $1.05, $1.51 and $1.41 per Mcfe for the years ended December 31, 2013, 2012 and 2011, respectively.

⁽¹⁾ During 2012, the Company recorded a $2.9 billion non-cash write-down of the carrying value of the Company’s proved oil and gas properties as a result of ceiling test limitations, which is reflected within ceiling test and other impairments in the accompanying Consolidated Statements of Operations. The ceiling test was calculated based upon the average of quoted market prices in effect on the first day of the month for the preceding twelve month period at December 31, 2012, September 30, 2012 and June 30, 2012 for Henry Hub natural gas and West Texas Intermediate oil, adjusted for market differentials. The Company did not have any write-downs related to the full cost ceiling limitation in 2013.

⁽²⁾Interest is capitalized on the cost of unevaluated oil and natural gas properties that are excluded from amortization and actively being evaluated as well as on work in process relating to gathering systems that are not currently in service. For the years ended December 31, 2013 and 2012, total interest on outstanding debt was $103.5 million and $103.2 million, respectively, of which $2.0 million and $15.0 million, respectively, was capitalized on the cost of unevaluated oil and natural gas properties and work in process relating to gathering systems that are not currently in service.

⁽³⁾ On December 12, 2013 the Company, through its subsidiary, UPL Three Rivers Holdings, LLC, closed on the acquisition of crude oil assets (“the Assets”) located in Three Rivers Field in Uintah County, Utah. The acquisition leverages the Company’s technical expertise as the Uinta Basin has similar tight-sand geologic characteristics to the Pinedale filed. The Assets were acquired at a contract price, prior to adjustments, of $652.0 million from Axia Energy, LLC (“Axia”) and consist of producing wells, undeveloped acreage and water and gas gathering assets. A purchase and sale agreement was executed between the parties on October 18, 2013 with an effective date of October 1, 2013. The acquisition was financed through the issuance of $450.0 million of senior notes (See Note 5) and the remainder under the Company’s credit facility.

The transaction was accounted for as a business combination and the net purchase price was allocated to oil and gas properties ($640.6 million), acquired working capital ($4.5 million), gas and water gathering systems ($4.7 million), oil inventory ($1.7 million) and asset retirement obligations ($1.7 million). Since December 12, 2013, the Company has recognized $4.2 million and $3.4 million in revenues and earnings, respectively, in the Consolidated Statements of Operations. Had the Company owned the Assets for the year ended December 31, 2013, it would have recognized pro forma revenues of $979.6 million and pro forma net earnings of $248.3 million. Had the Company owned the Assets for the year ended December 31, 2012, it would have recognized pro forma revenues of $814.6 million and a pro forma net loss of $2.2 billion. The unaudited pro forma consolidated results reflect pro forma adjustments to recognize the issuance of $450.0 million in senior notes (See Note 5) and the associated interest expense; interest expense associated with the portion of debt incurred under the Company’s Credit Agreement to fund the purchase price; calculate the estimated incremental depreciation, depletion and amortization expense, using the units of production method, related to the purchase of the Assets and the accretion expense associated with the asset retirement obligation. These unaudited pro forma consolidated results are not necessarily indicative of what the Company’s consolidated results of operations actually would have been had the business combination been completed on January 1, 2012. In addition, the unaudited pro forma consolidated results do not purport to project future results of operations of the combined company.

Unproven Properties

The Company holds interests in domestic projects in which costs related to these interests are not being depleted pending determination of existence of estimated proved reserves. The Company will continue to assess and allocate the unproven properties over the next several years as proved reserves are established and as exploration dictates whether or not future areas will be developed.