Note 4 — Oil and Gas Properties

Results of Discontinued Operations

The following summarized financial information relates to ERT, which is reported as “Income from discontinued operations, net of tax” in the accompanying condensed consolidated statements of operations:


		Three Months Ended
		March 31,
		2013 ⁽¹⁾		2012

Revenues	$	48,847	$	178,085
Costs:
Production (lifting) costs		16,017		37,020
Exploration expenses		3,514		754
Depreciation, depletion, amortization and accretion		1,226		47,843
Proved property impairment and abandonment charges (credits)		(152)		3,241
Loss on sale of oil and gas properties		-		1,478
Loss on commodity derivative contracts		-		2,339
Selling, general and administrative expenses		1,229		3,281
Net interest expense and other ⁽²⁾		2,732		7,277
Total costs		24,566		103,233
Pretax income from discontinued operations		24,281		74,852
Income tax provision		8,499		25,999
Income from operations of discontinued operations		15,782		48,853
Loss on sale of business, net of tax		(14,724)		-
Income from discontinued operations, net of tax	$	1,058	$	48,853

(1) Results for the first quarter of 2013 were through February 6, 2013 when ERT was sold.

(2) Net interest expense of $2.7 million and $7.2 million for the three-month periods ended March 31, 2013 and 2012, respectively, was allocated to ERT primarily based on interest associated with indebtedness directly attributed to the substantial oil and gas acquisition made in 2006. This includes interest related to debt required to be paid upon the disposition of ERT.