Segment Information

3 Months Ended

Mar. 31, 2014

Segment Information [Abstract]

Segment Information

(15) 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 crude 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 of the Notes to Consolidated Financial Statements included in Item 8 of the 2013 Annual Report on Form 10-K. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. 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 interest and other income (loss). 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)
Three months ended March 31, 2014:
Revenues from external customers	$	795,413	$	317,326	$	38		$	1,112,777
Intersegment revenues		6,405		912,081		41			918,527
Operating income (loss)		352,140		82,639		(160)			434,619
Other income (loss), net		1,512		47		(366)			1,193
Loss on derivatives		(99,242)		(362)		(116)			(99,720)
Depreciation, depletion and amortization expense		211,080		13,953		43			225,076
Interest expense(1)		9,116		3,597		194			12,907
Provision (benefit) for income taxes(1)		97,767		31,507		(279)			128,995
Assets		6,621,342		1,543,944		257,878	(2)		8,423,164
Capital investments(3)		498,907		38,553		4,476			541,936
Three months ended March 31, 2013:
Revenues from external customers	$	510,094	$	223,534	$	21		$	733,649
Intersegment revenues		1,508		497,373		54			498,935
Operating income (loss)(1)		175,758		76,307		(105)			251,960
Other income (loss), net		(378)		(155)		–			(533)
Loss on derivatives		(29,794)		–		–			(29,794)
Depreciation, depletion and amortization expense		167,450		11,912		105			179,467
Interest expense(1)		6,176		2,645		200			9,021
Provision (benefit) for income taxes(1)		55,816		29,403		(122)			85,097
Assets		5,389,728		1,278,256		248,807	(2)		6,916,791
Capital investments(3)		475,333		38,467		4,256			518,056

⁽¹⁾ Interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level.

⁽²⁾ Other assets represent corporate assets not allocated to segments and assets, including restricted cash and investments in cash equivalents, for non reportable segments.

⁽³⁾ Capital investments includes increases of $5.6 million and $32.9 million for the three-month periods ended March 31, 2014 and 2013, respectively, relating to the change in accrued expenditures between periods.

Included in intersegment revenues of the Midstream Services segment are$823.5 million and $419.5 million for the three months ended March 31, 2014 and 2013, respectively, for marketing of the Company’s E&P sales. Corporate assets include cash and cash equivalents, 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 the three months ended March 31, 2014 and 2013, capital investments within the E&P segment include$4.1million and $2.3 million, respectively, related to the Company’s activities in Canada.  At March 31, 2014, E&P segment assets include $79.9 million and at March 31, 2013, assets include $45.9  million related to the Company’s activities in Canada.