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Acquisitions and Divestitures | 12 Months Ended
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Dec. 31, 2015
Business Combinations [Abstract] |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions The following table summarizes the consideration paid, including customary post close adjustments, for the Company’s 2013 acquisitions and the fair value of the assets acquired and liabilities assumed as of the acquisition dates.
| West Williston |  | East Nesson
| (In thousands)
Consideration given to the sellers: |  |  |
Cash | $ | 1,475,361 |  |  | $ | 56,793 |
Forgiveness of debt | — |  |  | (43 | )
Total consideration | 1,475,361 |  |  | 56,750 |
Recognized amounts of identifiable assets acquired and liabilities assumed: |  |  |
Assets acquired: |  |  |
Proved developed properties | 519,712 |  |  | 32,053 |
Proved undeveloped properties | 165,907 |  |  | 1,807 |
Unproved lease acquisition costs | 787,589 |  |  | 23,369 |
Other property and equipment | 13,157 |  |  | — |
Inventory | 3,181 |  |  | 148 |
Accounts receivable | 276 |  |  | — |
Total assets acquired | 1,489,822 |  |  | 57,377 |
Liabilities assumed: |  |  |
Asset retirement obligations | 6,598 |  |  | 307 |
Revenues payable | 7,863 |  |  | 320 |
Total liabilities assumed | 14,461 |  |  | 627 |
Total identifiable net assets | $ | 1,475,361 |  |  | $ | 56,750 |
West Williston acquisition. On October 1, 2013, the Company completed a purchase and sale agreement with two undisclosed private sellers (the “Sellers”), pursuant to which the Company agreed to purchase approximately 136,000 net acres in its West Williston area in the Williston Basin for aggregate consideration of $1,475.4 million in cash (the “West Williston Acquisition”). The West Williston Acquisition qualified as a business combination, and as such, the Company estimated the fair value of the assets acquired and liabilities assumed as of the October 1, 2013 acquisition date. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements also utilize assumptions of market participants. The Company used a discounted cash flow model and made market assumptions as to future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates and risk adjusted discount rates. These assumptions represent Level 3 inputs, as further discussed under Note 3 — Fair Value Measurements. The Company recorded the assets acquired and liabilities assumed in the West Williston Acquisition at their estimated fair value of $1,475.4 million, which the Company considers to be representative of the price paid by a typical market participant. This measurement resulted in no goodwill or bargain purchase being recognized. The results of operations for the West Williston Acquisition have been included in the Company’s consolidated financial statements since the October 1, 2013 closing date, including approximately $57.6 million of total revenue and $14.9 million of operating income for the year ended December 31, 2013. In addition, the Company included $2.0 million of costs related to the West Williston Acquisition in general and administrative expenses on its Consolidated Statement of Operations for the year ended December 31, 2013. Summarized below are the consolidated results of operations for the year ended December 31, 2013, on an unaudited pro forma basis, as if the acquisition and related financing had occurred on January 1, 2012. The unaudited pro forma financial information was derived from the historical consolidated statement of operations of the Company and the statement of revenues and direct operating expenses for the West Williston Acquisition properties, which were derived from the historical accounting records of the Sellers. The unaudited pro forma financial information does not purport to be indicative of results of operations that would have occurred had the acquisition and related financing occurred on the basis assumed above, nor is such information indicative of the Company’s expected future results of operations.
| Year Ended December 31, 2013
| (In thousands)
| Unaudited
Revenues | $ | 1,297,545 |
Net income | 231,217 |
East Nesson acquisitions. On September 26, 2013, the Company acquired certain oil and natural gas assets totaling approximately 25,000 net acres in its East Nesson area in the Williston Basin for total consideration of $56.8 million (the “East Nesson Acquisitions,” and together with the West Williston Acquisition, the “2013 Acquisitions”). As part of the East Nesson Acquisitions, the Company also agreed to invest, expend and/or incur expenses of $8.2 million in connection with drilling and completion activities for certain wells and was obligated to pay the seller the remaining committed amount of $3.2 million not fulfilled as of July 1, 2015. The results of operations for the East Nesson Acquisitions have been included in the Company’s consolidated financial statements since the September 26, 2013 closing date. Pro forma information is not presented as the pro forma results would not be materially different from the information presented in the Company’s Consolidated Statement of Operations. The Company did not have any significant acquisitions for the years ended December 31, 2015 and 2014. Divestitures On March 5, 2014, the Company completed the sale of certain non-operated properties in and around its Sanish position (the “Sanish Divestiture”) for cash proceeds of approximately $324.9 million, which includes customary post close adjustments. The Company recognized a $187.0 million gain on sale of properties in its Consolidated Statement of Operations for the year ended December 31, 2014. The transaction was structured as an Internal Revenue Code Section 1031 like-kind exchange for tax purposes and as such did not give rise to any current taxable gain.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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