XML 73 R21.htm IDEA: XBRL DOCUMENT v3.2.0.727
Acquisition and Disposition of Properties
 6 Months Ended
Jun. 30, 2015
Business Acquisitions and Dispositions [Abstract]  
Acquisition and Disposition of Properties
ACQUISITION AND DISPOSITION OF PROPERTIES

On March 31, 2015, Energen completed the sale of the majority of its natural gas assets in the San Juan Basin in New Mexico and Colorado (effective as of January 1, 2015) to Southland Royalty Company, LLC for an aggregate purchase price of $395 million. The sales proceeds were reduced by purchase price adjustments of approximately $11 million related to the operations of the San Juan Basin properties subsequent to December 31, 2014 and one-time adjustments related primarily to liabilities assumed by the buyer, which resulted in pre-tax proceeds to Energen of approximately $384 million before consideration of transaction costs of approximately $2.8 million. Energen recognized a pre-tax gain of $27.2 million on the sale. The purchase price is subject to further purchase price adjustments following closing. Energen used proceeds from the sale to reduce long-term indebtedness. At December 31, 2014, proved reserves associated with these San Juan Basin properties totaled 69,038 MBOE.

Summarized below are the consolidated results of operations for the three months and six months ended June 30, 2015 and 2014, on an unaudited pro forma basis which gives effect to the sale as if it had occurred at the beginning of each period presented. The pro forma financial information does not purport to be indicative of results of operations that would have occurred had the transaction occurred on the basis assumed above nor are they indicative of results of the future operations of the enterprises.

 
Three months ended
Six months ended
 
June 30,
June 30,
(in thousands, except per share data)
2015
2014
2015
2014
Total revenues
$
167,734

$
221,642

$
357,578

$
464,732

Loss from continuing operations
$
(110,362
)
$
(13,769
)
$
(149,203
)
$
(11,920
)
Net income (loss)
$
(110,362
)
$
(18,568
)
$
(149,203
)
$
20,950

Diluted earnings per average common share from continuing operations
$
(1.50
)
$
(0.19
)
$
(2.04
)
$
(0.16
)
Diluted earnings per average common share
$
(1.50
)
$
(0.25
)
$
(2.04
)
$
0.29

Basic earnings per average common share from continuing operations
$
(1.50
)
$
(0.19
)
$
(2.04
)
$
(0.16
)
Basic earnings per average common share
$
(1.50
)
$
(0.25
)
$
(2.04
)
$
0.29



Energen completed an estimated total of $46.0 million in various purchases of unproved leasehold during the six months ended June 30, 2015. During 2014, Energen completed a total of approximately $68.5 million in various purchases of unproved leasehold properties, including the October 2014, purchase of approximately 15,000 net acres of unproved leasehold in the Mancos formation oil play in the San Juan Basin for $22.8 million.