impairments of proved and unproved properties of $33.6 million ($21.9 million after income taxes), loss on early extinguishment of debt of $17.9 million ($11.6 million after income taxes), losses on our oil derivatives of $8.4 million ($5.5 million after income taxes) and losses on sales of properties of $2.0 million ($1.3 million after income taxes) which were offset in part by gains on sales of marketable securities of $7.9 million ($5.1 million after income taxes). The loss in 2012 included impairments of proved and unproved properties of $86.7 million ($56.3 million after income taxes) which were offset in part by gains on sales of properties of $24.3 million ($15.8 million after income taxes), sales of marketable securities of $26.6 million ($17.3 million after income taxes) and gains on our oil derivatives of $21.3 million ($13.8 million after tax). Net income from discontinued operations for 2013 of $147.8 million, or $3.07 per share, included a gain on the sale of our West Texas oil and gas properties of $230.0 million ($148.6 million after income taxes). Excluding the gain, the net loss from discontinued operations for the year ended December 31, 2013 was $0.8 million as compared to net income of $3.0 million for the year ended December 31, 2012. Our operating data for 2011 and 2012 is summarized below: (1) Includes ad valorem taxes. (2) Represents depreciation, depletion and amortization of oil and gas properties only. Oil and gas sales. Our oil and gas sales decreased $49.6 million (11%) in 2012 to $384.8 million from sales of $434.4 million in 2011. Our oil production in 2012 increased by 114% while our natural gas production decreased by 10% from our 2011 production levels. On an equivalent unit basis, our production in 2012 decreased by 3% over 2011. Our successful drilling program grew our oil production which offset the decline in natural gas production. Prices realized for oil sales increased by 6% in 2012 as compared to 2011 while the average price we realized for natural gas sales decreased by 36% in 2012 as compared to 2011. Production taxes. Production taxes increased $8.0 million or 220% to $11.7 million in 2012 from $3.7 million in 2011. The increase in 2012 is due to the significant growth in our oil sales during the year. Much of our natural gas sales in 2011 and 2012 qualified for exemption from state production taxes. 50 Year Ended December 31, 2011 2012 Oil & Gas Sales (in thousands): Oil sales .............................................. $80,244 $181,163 Natural gas sales ........................................ 354,123 203,651 Total oil and gas sales ................................. $434,367 $384,814 Net Production Data: Natural gas (MMcf) ..................................... 90,593 81,762 Oil (MBbls) ........................................... 838 1,792 Natural gas equivalent (MMcfe) ........................... 95,622 92,515 Average Sales Price: Oil ($/Bbl) ............................................ $95.73 $101.09 Natural gas ($/Mcf) ..................................... $3.91 $2.49 Average equivalent price ($/Mcfe) ......................... $4.54 $4.16 Expenses ($ per Mcfe): Production taxes ........................................ $0.04 $0.13 Gathering and transportation .............................. $0.30 $0.28 Lease operating (1) ....................................... $0.48 $0.55 Depreciation, depletion and amortization (2) ................... $3.00 $3.76 Year Ended December 31, 2012 Compared to Year Ended December 31, 2011