Assets Held for Sale Assets Held for Sale

3 Months Ended

Mar. 31, 2016

Assets held for sale [Abstract]

Assets Held for Sale

Note 3 – Assets Held for Sale

Assets are classified as held for sale when the Company commits to a plan to sell the assets and there is reasonable certainty the sale will take place within one year. Upon classification as held for sale, long-lived assets are no longer depreciated or depleted, and a measurement for impairment is performed to identify and expense any excess of carrying value over fair value less costs to sell. Any subsequent decreases to the estimated fair value less costs to sell impact the measurement of assets held for sale.

As of March 31, 2016, the accompanying condensed consolidated balance sheets (“accompanying balance sheets”) present $152.7 million of assets held for sale, net of accumulated depletion, depreciation, and amortization expense, which consists of certain non-core assets in each of the Company’s operating regions. A corresponding asset retirement obligation liability of $33.9 million is separately presented. Certain of these assets were written down by $68.3 million to reflect fair value, less estimated costs to sell, upon reclassification to assets held for sale, as of March 31, 2016. The Company is actively marketing its assets held for sale and expects to close the transactions prior to December 31, 2016. During the quarter ended March 31, 2015, the Company recorded write-downs to fair value less estimated costs to sell, of $30.0 million for certain of its Mid-Continent region assets held for sale as of March 31, 2015.

The write-downs to fair value less estimated costs to sell, are reflected in the net loss on divestiture activity line item in the accompanying condensed consolidated statements of operations (“accompanying statements of operations”).

The Company determined that these planned asset sales do not qualify for discontinued operations accounting under financial statement presentation authoritative guidance.