Divestitures

North Sea Properties During the first quarter of 2013, we closed the sale of our 13% non-operated working interest in the Cook field located in the UK sector of the North Sea. The sale resulted in a $37 million gain based on net sale proceeds of $38 million for the field.

We continue to market our remaining North Sea properties. As of March 31, 2013, all the properties remaining in our North Sea geographical segment are included in assets held for sale in our consolidated balance sheet. Our consolidated statements of operations have been reclassified for all periods presented to reflect the operations of our North Sea geographical segment as discontinued. Upon reclassification as held for sale, depreciation, depletion, and amortization (DD&A) ceased. Our long-term debt is recorded at the consolidated level; therefore no interest expense has been allocated to discontinued operations.

Summarized results of discontinued operations are as follows:



	Three Months Ended March 31,
	2013			2012
(millions)
Oil and Gas Sales	$	10		$	75
Income (Loss) Before Income Taxes	(1		)	39
Income Tax Expense	7			25
Operating Income (Loss), Net of Tax	(8		)	14
Gain on Sale, Net of Tax	37			—
Discontinued Operations, Net of Tax	$	29		$	14

Sale of Onshore US Properties During the first quarter of 2013, we closed the sales of certain crude oil and natural gas properties in the Gulf Coast area with an effective date of November 1, 2012. The information regarding the assets sold is as follows:



	Three Months Ended March 31,
	2013
(millions)
Sale Proceeds	$	55
Less
Net Book Value of Assets Sold	(28		)
Goodwill Allocated to Assets Sold	(3		)
Asset Retirement Obligations Associated with Assets Sold	5
Other Closing Adjustments ⁽¹⁾	(14		)
Gain on Divestitures	$	15

⁽¹⁾Other closing adjustments also include adjustments related to onshore US property sales completed during 2012.