Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies (As Restated) |
|
Principles of Consolidation. The accompanying consolidated financial statements include the accounts of Swift Energy and its wholly owned subsidiaries, which are engaged in the exploration, development, acquisition, and operation of oil and gas properties, with a focus on inland waters and onshore oil and natural gas reserves in Louisiana and Texas. Our undivided interests in oil and gas properties are accounted for using the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. Intercompany balances and transactions have been eliminated in preparing the accompanying consolidated financial statements. |
|
Discontinued Operations. Unless otherwise indicated, information presented in the notes to the consolidated financial statements relates only to Swift Energy’s continuing operations. Information related to discontinued operations is included in Note 8 and in some instances, where appropriate, is included as a separate disclosure within the individual footnotes. |
|
Subsequent Events. We have evaluated subsequent events of our consolidated financial statements. There were no material subsequent events requiring additional disclosure in these financial statements. |
|
Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the reported amounts of certain revenues and expenses during each reporting period. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these financial statements include: |
|
| | | | | | | | | | | | | | | | | |
• | the estimated quantities of proved oil and natural gas reserves used to compute depletion of oil and natural gas properties and the related present value of estimated future net cash flows there-from, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates related to the collectability of accounts receivable and the credit worthiness of our customers, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates of the counterparty bank risk related to letters of credit that our customers may have issued on our behalf, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates of future costs to develop and produce reserves, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | accruals related to oil and gas sales, capital expenditures and lease operating expenses, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates of insurance recoveries related to property damage, and the solvency of insurance providers, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates in the calculation of share-based compensation expense, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates of our ownership in properties prior to final division of interest determination, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | the estimated future cost and timing of asset retirement obligations, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates made in our income tax calculations, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates in the calculation of the fair value of hedging assets and liabilities, and | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
• | estimates in the assessment of current litigation claims against the company. | | | | | | | | | | | | | | | | |
|
While we are not aware of any material revisions to any of our estimates, there will likely be future revisions to our estimates resulting from matters such as new accounting pronouncements, changes in ownership interests, payouts, joint venture audits, re-allocations by purchasers or pipelines, or other corrections and adjustments common in the oil and gas industry, many of which require retroactive application. These types of adjustments cannot be currently estimated and will be recorded in the period during which the adjustments occur. |
|
We are subject to legal proceedings, claims, liabilities and environmental matters that arise in the ordinary course of business. We accrue for losses when such losses are considered probable and the amounts can be reasonably estimated. |
|
Property and Equipment. We follow the “full-cost” method of accounting for oil and natural gas property and equipment costs. Under this method of accounting, all productive and nonproductive costs incurred in the exploration, development, and acquisition of oil and natural gas reserves are capitalized. Such costs may be incurred both prior to and after the acquisition of a property and include lease acquisitions, geological and geophysical services, drilling, completion, and equipment. Internal costs incurred that are directly identified with exploration, development, and acquisition activities undertaken by us for our own account, and which are not related to production, general corporate overhead, or similar activities, are also capitalized. For the years ended December 31, 2013, 2012 and 2011, such internal costs capitalized totaled $31.8 million, $31.1 million and $29.3 million, respectively. Interest costs are also capitalized to unproved oil and natural gas properties. For the years ended December 31, 2013, 2012 and 2011, capitalized interest on unproved properties totaled $7.2 million, $7.9 million and $7.7 million, respectively. Interest not capitalized and general and administrative costs related to production and general corporate overhead are expensed as incurred. |
|
The “Property and Equipment” balances on the accompanying consolidated balance sheets are summarized for presentation purposes. The following is a detailed breakout of our “Property and Equipment” balances. |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(in thousands) | December 31, 2013 (As Restated) | | December 31, 2012 (As Restated) | | | | | | | | | | |
Property and Equipment | | | | | | | | | | | | | |
Proved oil and gas properties | $ | 5,600,279 | | | $ | 5,058,524 | | | | | | | | | | | |
| | | | | | | | | |
Unproved oil and gas properties | 71,452 | | | 92,579 | | | | | | | | | | | |
| | | | | | | | | |
Furniture, fixtures, and other equipment | 42,368 | | | 41,690 | | | | | | | | | | | |
| | | | | | | | | |
Less – Accumulated depreciation, depletion, and amortization | (3,125,282 | ) | | (2,824,839 | ) | | | | | | | | | | |
Property and Equipment, Net | $ | 2,588,817 | | | $ | 2,367,954 | | | | | | | | | | | |
| | | | | | | | | |
|
No gains or losses are recognized upon the sale or disposition of oil and natural gas properties, except in transactions involving a significant amount of reserves or where the proceeds from the sale of oil and natural gas properties would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a cost center. Internal costs associated with selling properties are expensed as incurred. |
|
Future development costs are estimated property-by-property based on current economic conditions and are amortized to expense as our capitalized oil and gas property costs are amortized. |
|
We compute the provision for depreciation, depletion, and amortization (“DD&A”) of oil and natural gas properties using the unit-of-production method. Under this method, we compute the provision by multiplying the total unamortized costs of oil and gas properties—including future development costs, gas processing facilities, and both capitalized asset retirement obligations and undiscounted abandonment costs of wells to be drilled, net of salvage values, but excluding costs of unproved properties—by an overall rate determined by dividing the physical units of oil and natural gas produced during the period by the total estimated units of proved oil and natural gas reserves at the beginning of the period. This calculation is done on a country-by-country basis, and the period over which we will amortize these properties is dependent on our production from these properties in future years. Furniture, fixtures, and other equipment are recorded at cost and are depreciated by the straight-line method at rates based on the estimated useful lives of the property, which range between two and 20 years. Repairs and maintenance are charged to expense as incurred. Renewals and betterments are capitalized. |
|
Geological and geophysical (“G&G”) costs incurred on developed properties are recorded in “Proved properties” and therefore subject to amortization. G&G costs incurred that are directly associated with specific unproved properties are capitalized in “Unproved properties” and evaluated as part of the total capitalized costs associated with a prospect. The cost of unproved properties not being amortized is assessed quarterly, on a property-by-property basis, to determine whether such properties have been impaired. In determining whether such costs should be impaired, we evaluate current drilling results, lease expiration dates, current oil and gas industry conditions, international economic conditions, capital availability, and available geological and geophysical information. Any impairment assessed is added to the cost of proved properties being amortized. |
|
Full-Cost Ceiling Test. At the end of each quarterly reporting period, the unamortized cost of oil and natural gas properties (including natural gas processing facilities, capitalized asset retirement obligations, net of related salvage values and deferred income taxes, and excluding the recognized asset retirement obligation liability) is limited to the sum of the estimated future net revenues from proved properties (excluding cash outflows from recognized asset retirement obligations, including future development and abandonment costs of wells to be drilled, using the preceding 12-months’ average price based on closing prices on the first day of each month, adjusted for price differentials, discounted at 10%, and the lower of cost or fair value of unproved properties) adjusted for related income tax effects (“Ceiling Test”). This calculation is done on a country-by-country basis. |
|
The calculations of the Ceiling Test and provision for DD&A are based on estimates of proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production, timing, and plan of development. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimates. Accordingly, reserves estimates are often different from the quantities of oil and natural gas that are ultimately recovered. |
|
Due to the effects of pricing, timing of projects and changes in our reserves product mix, in 2013 we reported a non-cash write-down on a before-tax basis of $46.9 million (restated) on our oil and natural gas properties. |
|
It is reasonably possible that our estimate of discounted future net cash flows from proved oil and natural gas reserves could change in the near term and that additional non-cash write-downs of oil and natural gas properties would occur in the future. If future capital expenditures out pace future discounted net cash flows in our reserve calculations, if we have significant declines in our oil and natural gas reserves volumes (which also reduces our estimate of discounted future net cash flows from proved oil and natural gas reserves) or if oil or natural gas prices decline, non-cash write-downs of our oil and natural gas properties could occur in the future. We cannot control and cannot predict what future prices for oil and natural gas will be, thus we cannot estimate the amount or timing of any potential future non-cash write-down of our oil and natural gas properties due to decreases in oil or natural gas prices. |
|
Revenue Recognition. Oil and gas revenues are recognized when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collectability of the revenue is probable. Swift Energy uses the entitlement method of accounting in which we recognize our ownership interest in production as revenue. If our sales exceed our ownership share of production, the natural gas balancing payables are reported in “Accounts payable and accrued liabilities” on the accompanying consolidated balance sheets. Natural gas balancing receivables are reported in “Other current assets” on the accompanying consolidated balance sheets when our ownership share of production exceeds sales. As of December 31, 2013 and 2012, we did not have any material natural gas imbalances. |
|
Reclassification of Prior Period Balances. Certain reclassifications have been made to prior period amounts to conform to the current-year presentation. |
|
Accounts Receivable. We assess the collectability of accounts receivable, and based on our judgment, we accrue a reserve when we believe a receivable may not be collected. At December 31, 2013 and 2012, we had an allowance for doubtful accounts of approximately $0.1 million. The allowance for doubtful accounts has been deducted from the total “Accounts receivable” balance on the accompanying consolidated balance sheets. |
|
At December 31, 2013, our “Accounts receivable” balance included $56.9 million for oil and gas sales, $1.6 million for joint interest owners, $11.6 million for severance tax credit receivables and $0.8 million for other receivables. At December 31, 2012, our “Accounts receivable” balance included $57.2 million (restated) for oil and gas sales, $3.6 million for joint interest owners, $6.4 million (restated) for severance tax credit receivables and $4.0 million (restated) for other receivables. |
|
Debt Issuance Costs. Legal fees, accounting fees, underwriting fees, printing costs, and other direct expenses associated with extensions of our bank credit facility and public debt offerings were capitalized and are amortized on an effective interest basis over the life of each of the respective senior note offerings and credit facility. |
|
The 7.125% senior notes due in 2017 mature on June 1, 2017, and the remaining balance of their issuance costs at December 31, 2013, was $1.8 million. The 8.875% senior notes due in 2020 mature on January 15, 2020, and the remaining balance of their issuance costs at December 31, 2013, was $3.6 million. The 7.875% senior notes due in 2022 mature on March 1, 2022, and the balance of their remaining issuance costs at December 31, 2013, was $6.5 million. The remaining balance of revolving credit facility issuance costs at December 31, 2013, was $3.3 million. |
|
Price-Risk Management Activities. The Company follows FASB ASC 815-10, which requires that changes in the derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteria are met. The guidance also establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) is recorded in the consolidated balance sheets as either an asset or a liability measured at its fair value. Hedge accounting for a qualifying hedge allows the gains and losses on derivatives to offset related results on the hedged item in the statement of operations and requires that a company formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. |
|
Prior to January 1, 2013, the Company had elected hedge accounting on all qualifying derivative instruments. As of December 31, 2012, the Company did not have any outstanding derivatives. For all derivatives entered into after January 1, 2013, the Company elected not to apply hedge accounting. The changes in the fair value of our derivatives initiated after January 1, 2013 are recognized in "Price-risk management and other, net” on the accompanying consolidated statements of operations. |
|
We have a price-risk management policy to use derivative instruments to protect against declines in oil and natural gas prices, mainly through the purchase of price floors, calls, swaps, collars and participating collars. Prior to January 1, 2013, all hedges were designated as a hedge of the variability in cash flows associated with the forecasted sale of oil and natural gas production. Changes in the fair value of a hedge that was highly effective and was designated, documented and qualified as a cash flow hedge, to the extent that the hedge was effective, were recorded in “Accumulated other comprehensive income, net of income tax” on the accompanying consolidated balance sheets. When the hedged transactions were recorded upon the actual sale of the oil and natural gas, those gains or losses were reclassified from “Accumulated other comprehensive income, net of income tax” and were recorded in “Price-risk management and other, net” on the accompanying consolidated statements of operations. Changes in the fair value of derivatives that did not meet the criteria for hedge accounting, and the ineffective portion of the hedge for which hedge accounting was elected, were recognized in "Price-risk management and other, net." |
|
For the years ended December 31, 2013, 2012 and 2011, we recognized net gains (losses) of ($0.9) million, $2.3 million and ($0.9) million, respectively, relating to our derivative activities. These amounts include an unrealized loss of $0.1 million for the year ended December 31, 2013. Had these amounts been recognized in the oil and gas sales account they would not have materially changed our per unit sales prices received. The ineffectiveness for the years ended December 31, 2012 and 2011, was not material. The effects of our derivatives are included in the "Other" section of our operating activities on the accompanying consolidated statements of cash flows. |
|
The fair values of our derivatives are computed using commonly accepted industry-standard models and are periodically verified against quotes from brokers. The fair value of our derivative assets at December 31, 2013 was $0.8 million which was recognized on the accompanying consolidated balance sheet in “Other current assets.” The fair value of our derivative liabilities at December 31, 2013 was $0.9 million which was recognized on the accompanying consolidated balance sheet in “Accounts payable and accrued liabilities.” |
|
The Company uses an International Swap and Derivatives Association "ISDA" master agreement for all derivative contracts. This is an industry standardized contract containing the general conditions of our derivative transactions including provisions relating to netting derivative settlement payments under certain circumstances (such as default). For reporting purposes, the Company has elected to not offset the asset and liability fair value amounts of its derivatives on the accompanying balance sheets. If all counterparties were in a default situation, the Company, under the right of set-off, would show a net derivative fair value liability of $0.1 million at December 31, 2013. For further discussion related to the fair value of the Company's derivatives, refer to Note 10 of these consolidated financial statements. |
|
At December 31, 2013, we had less than $0.1 million in receivables for settled derivatives which were recognized on the accompanying balance sheet in “Accounts receivable” and were subsequently collected in January 2014. At December 31, 2013, we also had $0.2 million in payables for settled derivatives which were recognized on the accompanying balance sheet in "Accounts payable and accrued liabilities" and were subsequently paid in January 2014. |
|
The following tables summarize the weighted average prices and future production volumes for various derivative contracts the Company had in place as of December 31, 2013. |
|
| | | | | | | | | | | | | | | | | |
| | | | | | | Collars |
Oil Derivatives | Total Volumes (Bbls) | | Swap Fixed Price | | Purchased Call Price | | Floor | | Ceiling Price |
(NYMEX WTI Settlements) | Price |
| | | | | | | | | |
2014 Contracts | | | | | | | | | |
Swaps | 462,000 | | $ | 98.19 | | | | | | | |
|
Calls | 87,000 | | | | $ | 116.6 | | | | | |
|
Collars | 87,000 | | | | | | $ | 95 | | | $ | 107.3 | |
|
|
| | | | |
| | | | | | | | | | | | | | | | | |
| | | | | Collars | | | | |
Natural Gas Derivatives | Total Volumes (MMBtu) | | Swap Fixed Price | | Floor | | Ceiling Price | | | | |
(NYMEX Henry Hub Settlements) | Price | | | | |
| | | | | | | | | | | |
2014 Contracts | | | | | | | | | | | |
Swaps | 7,460,000 | | $ | 4.1 | | | | | | | | | |
| | | |
Collars | 3,075,000 | | | | $ | 4.13 | | | $ | 4.44 | | | | | |
| | | |
| | | | | | | | | | | |
2015 Contracts | | | | | | | | | | | |
Swaps | 900,000 | | $ | 4.42 | | | | | | | | | |
| | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Natural Gas Basis Derivatives | Total Volumes (MMBtu) | | Swap Fixed Price | | | | | | | | | | | | |
(East Texas Houston Ship Channel Settlements) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
2014 Contracts | | | | | | | | | | | | | | | |
Swaps | 2,030,000 | | $ | 0.085 | | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Supervision Fees. Consistent with industry practice, we charge a supervision fee to the wells we operate including our wells in which we own up to a 100% working interest. Supervision fees are recorded as a reduction to “General and administrative, net”, on the accompanying consolidated statements of operations. Our supervision fees are based on COPAS industry guidelines. The amount of supervision fees charged for the years ended December 31, 2013, 2012 and 2011, respectively, did not exceed our actual costs incurred. The total amount of supervision fees charged to the wells we operated was $11.6 million, $11.3 million and $12.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
|
Inventories. Inventories consist primarily of tubulars and other equipment and supplies that we expect to place in service in production operations. Inventories carried at cost (weighted average method) are included in “Other current assets” on the accompanying consolidated balance sheets totaling $3.5 million and $5.6 million at December 31, 2013 and 2012, respectively. |
|
For the year ended December 31, 2011, we recorded a charge of $2.1 million related to inventory obsolescence in “Price-risk management and other, net” on the accompanying consolidated statement of operations. |
|
Income Taxes. Under guidance contained in FASB ASC 740-10, deferred taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities, given the provisions of the enacted tax laws. |
|
We follow the recognition and disclosure provisions under guidance contained in FASB ASC 740-10-25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Our policy is to record interest and penalties relating to uncertain tax positions in income tax expense. |
|
Accounts Payable and Accrued Liabilities. The “Accounts payable and accrued liabilities” balances on the accompanying consolidated balance sheets are summarized below (in thousands): |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| December 31, 2013 (As Restated) | | December 31, 2012 (As Restated) | | | | | | | | | | |
Trade accounts payable (1) | $ | 30,769 | | | $ | 31,128 | | | | | | | | | | | |
| | | | | | | | | |
Accrued operating expenses | 16,016 | | | 16,479 | | | | | | | | | | | |
| | | | | | | | | |
Accrued payroll costs | 10,938 | | | 12,297 | | | | | | | | | | | |
| | | | | | | | | |
Asset retirement obligation – current portion | 15,859 | | | 7,134 | | | | | | | | | | | |
| | | | | | | | | |
Accrued taxes | 5,845 | | | 5,473 | | | | | | | | | | | |
| | | | | | | | | |
Other payables | 2,891 | | | 4,799 | | | | | | | | | | | |
| | | | | | | | | |
Total accounts payable and accrued liabilities | $ | 82,318 | | | $ | 77,310 | | | | | | | | | | | |
| | | | | | | | | |
(1) Included in “trade accounts payable” are liabilities of approximately $26.1 million and $13.3 million at December 31, 2013 and 2012, respectively, for outstanding checks. |
|
Cash and Cash Equivalents. We consider all highly liquid instruments with an initial maturity of three months or less to be cash equivalents. |
|
Credit Risk Due to Certain Concentrations. We extend credit, primarily in the form of uncollateralized oil and gas sales and joint interest owners' receivables, to various companies in the oil and gas industry, which results in a concentration of credit risk. The concentration of credit risk may be affected by changes in economic or other conditions within our industry and may accordingly impact our overall credit risk. However, we believe that the risk of these unsecured receivables is mitigated by the size, reputation, and nature of the companies to which we extend credit. From certain customers we also obtain letters of credit or parent company guaranties, if applicable, to reduce risk of loss. For the years ended December 31, 2013, 2012 and 2011, Shell Oil Company and affiliates accounted for 33%, 46% and 49% of our total oil and gas gross receipts, respectively. BP America accounted for approximately 21% of our total oil and gas gross receipts in 2013 while Southcross Energy accounted for approximately 11% of our total oil and gas gross receipts in 2012. Credit losses in each of the last three years were immaterial. |
|
Restricted Cash. These balances primarily include amounts held in escrow accounts to satisfy plugging and abandonment obligations. As of December 31, 2013 and 2012, these assets were approximately $1.0 million, respectively. These amounts are restricted as to their current use, and will be released when we have satisfied all plugging and abandonment obligations in certain fields. Restricted cash balances are reported in “Other Long-Term Assets” on the accompanying consolidated balance sheets. |
|
Asset Retirement Obligation. We record these obligations in accordance with the guidance contained in FASB ASC 410-20. This guidance requires entities to record the fair value of a liability for legal obligations associated with the retirement obligations of tangible long-lived assets in the period in which it is incurred. When the liability is initially recorded, the carrying amount of the related long-lived asset is increased. The liability is discounted from the expected date of abandonment. Over time, accretion of the liability is recognized each period, and the capitalized cost is depreciated on a unit-of-production basis as part of depreciation, depletion, and amortization expense for our oil and gas properties. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement which is included in the “Property and Equipment” balance on our accompanying consolidated balance sheets. This guidance requires us to record a liability for the fair value of our dismantlement and abandonment costs, excluding salvage values. |
|
The following provides a roll-forward of our asset retirement obligation (in thousands): |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Asset Retirement Obligation as of December 31, 2011 | $ | 76,393 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Accretion expense | 5,121 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Liabilities incurred for new wells and facilities construction | 2,195 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Reductions due to sold and abandoned wells and facilities | (2,824 | ) | | | | | | | | | | | | | | |
Revisions in estimates | 5,892 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Asset Retirement Obligation as of December 31, 2012 | $ | 86,777 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Accretion expense | 6,181 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Liabilities incurred for new wells and facilities construction | 1,588 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Reductions due to sold and abandoned wells and facilities | (16,394 | ) | | | | | | | | | | | | | | |
Revisions in estimates | 932 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Asset Retirement Obligation as of December 31, 2013 | $ | 79,084 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
|
Effective May 1, 2013, we sold our Brookeland field in Texas. This sale included the buyer's assumption of our plugging and abandonment liability for which we were carrying an $11.3 million asset retirement obligation. This decrease is shown above in “Reductions due to sold and abandoned wells and facilities.” |
|
At December 31, 2013 and 2012, approximately $15.9 million and $7.1 million, respectively, of our asset retirement obligation was classified as a current liability in “Accounts payable and accrued liabilities” on the accompanying consolidated balance sheets. |
|
New Accounting Pronouncements. There are no material new accounting pronouncements that have been issued but not yet adopted as of December 31, 2013. |