Divestitures

North Sea Properties During the first six months of 2013, we closed two sales of non-operated working interest properties located in the UK and Netherlands sectors of the North Sea. The sales resulted in a $55 million gain based on net sales proceeds of $54 million for the fields. We continue to market our remaining North Sea properties.

As of June 30, 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 June 30,				Six Months Ended June 30,
	2013		2012		2013			2012
(millions)
Oil and Gas Sales	$	12	$	65	$	21		$	140
Income Before Income Taxes	5		39		4			79
Income Tax Expense	3		22		10			47
Operating Income (Loss), Net of Tax	2		17		(6		)	32
Gain on Sale, Net of Tax	17		—		55			—
Discontinued Operations, Net of Tax	$	19	$	17	$	49		$	32

Onshore US Properties During the first six months of 2013, we closed the sales of certain crude oil and natural gas properties in Kansas, Oklahoma and the Gulf Coast areas. The information regarding the assets sold is as follows:



	Six Months Ended June 30,
	2013
(millions)
Sales Proceeds	$	60
Less
Net Book Value of Assets Sold	(53		)
Goodwill Allocated to Assets Sold	(4		)
Asset Retirement Obligations Associated with Assets Sold	5
Other Closing Adjustments	4
Gain on Divestitures	$	12