Divestitures

6 Months Ended

Jun. 30, 2011

Divestitures

Divestitures

Divestitures

Constellation Energy Partners LLC

In June 2011, we agreed to sell all of our interests in Constellation Energy Partners LLC (CEP) to PostRock Energy Corporation (PostRock). Under the terms of that agreement, PostRock would receive all of our voting rights, including our right to appoint two of the five members of CEP's board of directors. In return, we would receive cash, PostRock common stock and warrants to acquire additional shares of PostRock common stock at a premium to the market price at the closing of the transaction. At the date of this filing, we are discussing with PostRock potential modifications to the transaction. We expect this transaction to close in 2011.

Quail Run Energy Center

In December 2010, we signed an agreement to sell our Quail Run Energy Center (Quail Run), a 550 MW natural gas plant in west Texas, to High Plains Diversified Energy Corporation (HPDEC). This agreement was contingent upon HPDEC obtaining financing through the sale of municipal bonds.

        In June 2011, we terminated the agreement to sell Quail Run based on the buyer's inability to satisfy all of the conditions for the sale.