Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured. GMX Resources's intangible assets for the quarter that ended in Sep. 2012 was €0.00 Mil.
GMX Resources Intangible Assets Historical Data
The historical data trend for GMX Resources's Intangible Assets can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured. Examples of intangible assets include trade secrets, copyrights, patents, trademarks. If a company acquires assets at the prices above the book value, it may carry goodwill on its balance sheet. Goodwill reflects the difference between the price the company paid and the book value of the assets.
If a company (company A) received a patent through their own work, though it has value, it does not show up on its balance sheet as an intangible asset. However, if company A sells this patent to company B, it will show up on company B's balance sheet as an intangible asset.
The same applies to brand names, trade secrets etc. For instance, Coca-Cola's brand is extremely valuable, but the brand does not appear on its balance sheet, because the brand was never acquired.
Some intangibles are amortized. Amortization is the depreciation of intangible assets.
Many intangibles are not amortized. They may still be written down when the company decides the asset is impaired.
Whenever you see an increase in goodwill over a number of years, you can assume it's because the company is out buying other businesses above book value. GOOD if buying businesses with durable competitive advantage.
If goodwill stays the same, the company when acquiring other companies is either paying less than book value or not acquiring. Businesses with moats never sell for less than book value.
Intangibles acquired are on balance sheet at fair value.
Internally developed brand names (Coke, Wrigleys, Band-Aid) however are not reflected on the balance sheet.
One of the reasons competitive advantage power can remain hidden for so long.
Be Aware
Companies may change the way intangible assets are amortized, and this will affect their reported earnings.
GMX Resources Intangible Assets Related Terms
Thank you for viewing the detailed overview of GMX Resources's Intangible Assets provided by GuruFocus.com. Please click on the following links to see related term pages.
GMX Resources Inc. is an oil and gas company, which is engaged in the exploration, development and production of oil and natural gas from the Haynesville/Bossier Shale and Cotton Valley Sands in its core area, the Sabine Uplift of the Carthage, North Field of Harrison and Panola counties of East Texas. It also has properties located in Lea and Roosevelt counties, and New Mexico. During the first half of 2011, the company acquired all of the working interest and an average greater than 80% net revenue interest in approximately 35,000 undeveloped net acres of oil and gas leases located in Billings, Stark, McKenzie and Dunn Counties of North Dakota, and Richland, Sheridan and Wibaux Counties of Montana. The company holds Williston Basin leases in approximately 150 1,280-acre units and expects to be the operator in approximately 31 of those units, providing a minimum of 172 operated locations. At the same time it acquired all of the working interest and an 80% net revenue interest in approximately 40,000 undeveloped net acres of oil and gas leases located in Platte, Goshen and Laramie Counties of Wyoming. During 2011, it acquired approximately 35,000 net acres in the Bakken/Three Forks oil resource play, which provides it with over 400 potential horizontal locations. The company intends to continue its multi-year drilling program in 2012, expanding to a multi-rig program based on available liquidity and capital resources. It has three subsidiaries: Diamond Blue Drilling Co. (Diamond Blue), which previously owned three drilling rigs, Endeavor Pipeline Inc. (Endeavor Pipeline), which operates its water supply and salt water disposal systems in its East Texas area, and Endeavor Gathering, LLC (Endeavor Gathering), which owns the natural gas gathering system and related equipment operated by Endeavor Pipeline. Kinder Morgan Endeavor LLC (KME) owns 40% membership interest in Endeavor Gathering. During 2011 and the first two months of 2012, the company successfully drilled and completed five Bakken Petroleum System wells, all in North Dakota. The Wock 21-2-1H, Frank 31-4-1H and the Marsh 21-16 TFH wells are located in Stark County, while the Taboo 1-25-36H and the Evoniuk 21-2-1H are located in McKenzie and Billings County, North Dakota.
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