Divestitures

Divestitures Recorded in Continuing Operations

For the three and six months ended June 30, 2015, the Company recorded net gains on disposition of assets in continuing operations of $2 million and $3 million, respectively, as compared to $4 million and $10 million for the same respective periods in 2014. The net gains attributable to the disposition of assets included the following:

•

Vertical drilling rigs. In March 2014, the Company completed the sale of Sendero Drilling Company, LLC ("Sendero") to Sendero's minority interest owner for cash proceeds of $31 million, which resulted in a gain of $1 million. As part of the sales agreement, the Company committed to a lease agreement with Sendero for 12 vertical rigs through December 31, 2015, and eight vertical rigs in 2016. During the three and six months ended June 30, 2015, the Company incurred $10 million and $20 million of idle drilling rig fees related to the leased Sendero rigs.


•	Permian Basin. During February 2014, the Company completed the sale of proved and unproved properties in Gaines and Dawson counties in the Spraberry field in West Texas for cash proceeds of $72 million, which resulted in a gain of $2 million.

Divestitures Recorded as Discontinued Operations

During 2014, the Company completed the sales of its (i) net assets in the Hugoton field in southwest Kansas for cash proceeds of $328 million, (ii) net assets in the Barnett Shale field in North Texas for cash proceeds of $150 million and (iii) capital stock in its Alaskan subsidiary ("Pioneer Alaska") for cash proceeds of $267 million. The Company has classified its Hugoton, Barnett Shale and Pioneer Alaska results of operations as loss from discontinued operations, net of tax, in the accompanying consolidated statements of operations.

The following table represents the components of the Company's discontinued operations for the three and six months ended June 30, 2015 and 2014:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in millions)

Revenues and other income (a)	$	—		$	66		$	—		$	184
Costs and expenses (b)	(1		)	(148		)	(6		)	(300		)
Loss from discontinued operations before income taxes	(1		)	(82		)	(6		)	(116		)
Current tax provision	—			—			—			(1		)
Deferred tax benefit	—			28			2			41
Loss from discontinued operations	$	(1	)	$	(54	)	$	(4	)	$	(76	)

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(a)	Primarily reflects oil and gas revenues and cash received associated with Alaskan Petroleum Production Tax credits on qualifying capital expenditures.

(b)

Costs and expenses during 2015 were primarily related to an arbitration award associated with plugging and abandonment obligations for two Gulf of Mexico wells from which Pioneer withdrew in 2009. Costs and expenses in 2014 were primarily comprised of oil and gas production costs and impairment charges. See Note D for information about impairment charges on the Barnett Shale assets and Pioneer Alaska.