Segment Information

12 Months Ended

Dec. 31, 2013

Segment Information [Abstract]

Segment Information

(14) SEGMENT INFORMATION

The Company’s reportable business segments have been identified based on the differences in products or services provided. Revenues for the E&P segment are derived from the production and sale of natural gas and oil. The Midstream Services segment generates revenue through the marketing of both Company and third-party produced natural gas volumes and through gathering fees associated with the transportation of natural gas to market.

Summarized financial information for the Company’s reportable segments is shown in the following table.  The accounting policies of the segments are the same as those described in Note 1. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs and expenses. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense and other income (loss), net. The “Other” column includes items not related to the Company’s reportable segments including real estate and corporate items.

	Exploration
	and			Midstream
	Production			Services		Other		Total
	(in thousands)
2013
Revenues from external customers	$	2,398,214		$	972,832	$	99	$	3,371,145
Intersegment revenues		5,951			2,373,851		241		2,380,043
Operating income (loss)		878,701			325,435		(513)		1,203,623
Other income (loss), net		2,741			(1)		(533)		2,207
Gain (loss) on derivatives		25,670			480		(9)		26,141
Depreciation, depletion and amortization expense		735,215			50,940		457		786,612
Interest expense(2)		30,244			10,619		731		41,594
Provision (benefit) for income taxes(2)		368,320			119,223		(669)		486,874
Assets		6,356,799	(3)		1,427,294		263,633		8,047,726
Capital investments(4)		2,052,148			157,635		25,014		2,234,797
2012
Revenues from external customers	$	1,964,624		$	765,255	$	114	$	2,729,993
Intersegment revenues		(1,452)			1,598,225		2,751		1,599,524
Operating income (loss) (1)		(1,396,261)			294,302		1,333		(1,100,626)
Other income (loss), net		(1,156)			132		2,054		1,030
Loss on derivatives		(14,950)			–		–		(14,950)
Depreciation, depletion and amortization expense		765,368			44,395		1,190		810,953
Impairment of natural gas and oil properties		1,939,734			–		–		1,939,734
Interest expense(2)		20,315			14,341		1,001		35,657
Provision for income taxes(2)		(548,556)			104,522		895		(443,139)
Assets		5,193,733	(3)		1,273,228		270,566		6,737,527
Capital investments(4)		1,860,681			164,978		54,860		2,080,519
2011
Revenues from external customers	$	2,087,189		$	864,096	$	47	$	2,951,332
Intersegment revenues		11,725			1,995,423		3,221		2,010,369
Operating income		823,564			247,952		1,711		1,073,227
Other income (loss), net		328			(91)		27		264
Gain on derivatives		1,574			–		–		1,574
Depreciation, depletion and amortization expense		666,125			37,261		1,125		704,511
Interest expense(2)		9,026			15,049		–		24,075
Provision for income taxes(2)		322,714			90,221		286		413,221
Assets		6,547,117	(3)		1,119,861		235,919		7,902,897
Capital investments(4)		1,977,493			160,776		68,905		2,207,174

(1)The operating loss for the E&P segment for the twelve months ended December 31, 2012 includes a $1,939.7 million non-cash ceiling test impairment of our natural gas and oil properties.

(2)  Interest expense and the provision (benefit) for income taxes by segment are an allocation of corporate amounts as they are incurred at the corporate level.

(3)Includes office, technology, drilling rigs and other ancillary equipment not directly related to natural gas and oil property acquisition, exploration and development activities.

(4)Capital investments include a decrease of $24.9 million for 2013, a decrease of $36.9 million for 2012 and an increase of $4.3 million for 2011 related to the change in accrued expenditures between years.

Included in intersegment revenues of the Midstream Services segment are approximately  $2.0 billion, $1.3 billion and $1.7 billion for 2013, 2012 and 2011, respectively, for marketing of the Company’s E&P sales.  Corporate assets include cash and cash equivalents, restricted cash, furniture and fixtures, prepaid debt and other costs. Corporate general and administrative costs, depreciation expense and taxes other than income are allocated to the segments. For 2013, 2012,  and 2011, capital investments within the E&P segment include $35.4 million,  $11.6 million, and $18.7respectively, related to the Company’s activities in Canada. As of December 31, 2013,  2012, and 2011, E&P assets include $79.2 million, $44.4 million, $28.4 million related to the Company’s activities in Canada.