Property, Plant and Equipment

9 Months Ended

Sep. 30, 2012

4. Property, Plant and Equipment

The following table sets forth the Company’s property, plant and equipment:


	September 30, 2012			December 31, 2011
	(In thousands)
Proved oil and gas properties (1)	$	2,004,433		$	1,152,532
Less: Accumulated depreciation, depletion, amortization and impairment		(314,787	)		(174,948	)

Proved oil and gas properties, net		1,689,646			977,584
Unproved oil and gas properties		74,583			82,825

Oil and gas properties, net		1,764,229			1,060,409
Other property and equipment		45,261			20,859
Less: Accumulated depreciation		(5,691	)		(1,313	)

Other property and equipment, net		39,570			19,546

Total property, plant and equipment, net	$	1,803,799		$	1,079,955

(1)

Included in the Company’s proved oil and gas properties are estimates of future asset retirement costs of $18.5 million and $11.4 million at September 30, 2012 and December 31, 2011, respectively. In addition, the Company’s proved oil and gas properties include cumulative capitalized interest of $5.6 million and $3.1 million at September 30, 2012 and December 31, 2011, respectively.

As a result of expiring leases and periodic assessments of unproved properties, the Company recorded non-cash impairment charges on its unproved oil and gas properties of $36,000 and $2.6 million for the three and nine months ended September 30, 2012, respectively, and $0.4 million and $3.3 million for the three and nine months ended September 30, 2011, respectively. No impairment charges on proved oil and natural gas properties were recorded for the three and nine months ended September 30, 2012 or 2011.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details