115064128 17320000 44476000 9166300086 43282000 8872842000 370000 700000 13262000 0 0.01 500000000 125135994 1251000 76637000 1424769000 192542000 2924939000 1472000 5167000 152231000 17713000 16874000 481850000 64323000 119281000 132166000 9239000 1134000 63830000 40337000 108360000 47645000 310551000 28777000 43348000 119077000 8872842000 16706000 579759000 2978819000 89631000 2671508000 7631859000 6929000 248336000 68177000 168598000 19870000 158775000 10105381000 875226000 3451455000 11113561 426598000 197986000 3541086000 5566000 1251000 76637000 2924939000 875226000 -426598000 114022000 89631000 12171000 9161785000 0 759000 34284000 0 0.01 500000000 124566963 1246000 88788000 1501459000 322688000 2909735000 22464000 4410000 206794000 3618000 0 486911000 48337000 147905000 177236000 6510000 553000 59622000 72594000 49561000 20584000 310563000 60573000 43247000 76901000 9161785000 0 694997000 2899241000 103963000 2511401000 7860002000 14951000 269896000 93694000 187409000 12464000 161266000 10167220000 988786000 3576896000 10020502 411659000 204183000 3680859000 5491000 1246000 88788000 2909735000 988786000 -411659000 114546000 103963000 25962000 1.30 1.29 0.00 -52246000 7797000 1961000 370247000 108937000 -1741000 26108000 3901000 881000 3901000 35596000 0 149343000 276545000 1.24 1.23 7351000 0.06 0.06 120975000 32744000 84474000 18922000 9326000 16489000 14471000 -166000 41670000 1401000 0 6853000 -313941000 333050000 156694000 97327000 635123000 8427000 -227971000 -103354000 -331325000 8275000 6887000 562000 0 16841000 1031000 319341000 8240000 19145000 165978000 23998000 13640000 4905000 186998000 0 45658000 119370000 118363000 -39457000 -5191000 -14461000 1034000 646792000 112251000 8268000 162921000 6227000 7351000 155570000 -65050000 -12804000 -6181000 -7851000 19847000 -0.80 -0.80 0.00 -89089000 6921000 2753000 598586000 -41761000 -39000 21618000 53000 0 53000 33275000 0 -94323000 -139243000 -0.82 -0.82 2731000 0.02 0.02 -44398000 4062000 -11720000 5554000 13140000 15677000 23219000 16147000 43475000 16075000 170224000 -115316000 -88744000 223907000 -91592000 84793000 370692000 14146000 -3032000 3032000 0 36715000 88598000 280000 5060000 4679000 4475000 77623000 14663000 -364000 0 0 3542000 1581000 102000000 15000000 23715000 113979000 113979000 -36975000 -40863000 -14786000 9705000 459343000 165943000 9926000 -92114000 -522000 2731000 -94845000 -95146000 -6057000 -312000 -159520000 31111000 2.38 2.37 0.14 -14123000 14094000 3904000 733885000 171310000 404000 63293000 4578000 1908000 4578000 72117000 0 270262000 481678000 2.26 2.25 14391000 0.12 0.12 204451000 -1169000 98535000 28112000 9402000 3154000 40643000 -1103000 81948000 1859000 0 11860000 -491481000 510732000 284653000 190140000 1177166000 3788000 -317807000 -153785000 -471592000 20190000 31911000 27512000 0 16893000 12377000 616608000 20646000 13255000 165978000 615998000 145773000 5782000 732775000 0 83546000 118816000 118149000 -78936000 -7186000 -48972000 4582000 1215563000 216888000 17248000 291618000 6965000 14391000 277227000 -26189000 -12066000 -14464000 -15516000 10-Q false N.A. 2022-06-30 PIONEER NATURAL RESOURCES CO 0001038357 PXD --12-31 Yes No Yes Large Accelerated Filer 4696000 15986000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE R.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Discontinued Operations</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">During the three months ended June 30, 2009, the Company committed to a plan to sell its shelf properties in the Gulf of Mexico and sold its Mississippi assets. The Company completed the sale of its shelf properties in the Gulf of Mexico on August 6, 2009. Pursuant to SFAS 144, the Company has reflected the results of operations of these transactions as discontinued operations, rather than as a component of continuing operations. Additionally, in April 2006 and November 2007, the Company completed the sale of its Argentine assets and Canadian subsidiaries. During the three and six months ended June 30, 2008, the Company continued to realize certain revenues and costs and expense increments associated with these divestitures. The following table represents the components of the Company’s discontinued operations for the three and six month periods ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="73%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Revenues and other income:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,736</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,186</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">11,722</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">34,619</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest and other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">86</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,989</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Gain (loss) on disposition of assets, net (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">306</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(72</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">306</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(6</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,042</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,200</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">12,028</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">36,602</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Costs and expenses:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas production</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,109</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,469</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,649</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,275</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Production and ad valorem taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">74</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">118</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">214</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Depletion, depreciation and amortization (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(551</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,428</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,862</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,418</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Exploration and abandonments (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">22</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,980</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">283</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,472</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">General and administrative</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(21</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(36</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">215</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of discount on asset retirement obligations (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">220</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">199</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">442</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">398</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(433</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(389</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,839</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,715</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,318</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,603</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income from discontinued operations before income taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,203</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,485</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,710</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">19,999</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income tax benefit (provision):</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">348</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(171</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Deferred (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,472</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,482</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(949</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(5,437</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income from discontinued operations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,731</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,351</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,761</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">14,391</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Represents the significant noncash components of discontinued operations.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">At June 30, 2009, the carrying values of the assets and liabilities of the Company’s Gulf of Mexico shelf operations are included in discontinued operations held for sale in the accompanying consolidated balance sheet and are comprised of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="93%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Composition of assets included in discontinued operations held for sale:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Current assets</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,870</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Property, plant and equipment, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">13,385</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other assets, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">619</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total assets</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,874</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Composition of liabilities included in discontinued operations held for sale</b> (a)<b>:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Current liabilities</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,850</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other liabilities</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">13,856</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total liabilities</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,706</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Asset retirement obligations comprised $1.3 million of current liabilities and $13.0 million of other liabilities.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> -0.93 -0.93 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE J.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Commitments and Contingencies</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Legal actions.</i></b> The Company is party to the legal actions that are described below. The Company is also a party to other proceedings and claims incidental to its business. While many of these matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to such other proceedings and claims will not have a material adverse effect on the Company’s consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company will continue to evaluate its litigation on a quarter-by-quarter basis and will establish and adjust any litigation reserves as appropriate to reflect its assessment of the then current status of litigation.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>MOSH Holding</i><b><i>.</i></b> On April 11, 2005, the Company and its principal United States subsidiary, Pioneer Natural Resources USA, Inc., were named as defendants in <i>MOSH Holding, L.P. v Pioneer Natural Resources Company; Pioneer Natural Resources USA, Inc.; Woodside Energy (USA) Inc.; and JPMorgan Chase Bank, N.A.,</i> as Trustee of the Mesa Offshore Trust (the “Trust”), which is before the Judicial District Court of Harris County, Texas (334th Judicial District) (the “Court”).</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">On April 27, 2009, the Company and all parties in the lawsuit reached an agreement to settle the lawsuit. Under the terms of the settlement agreement, the Company will pay to the Trust the sum of $13 million in exchange for a full and final release of all claims made or that could have been made in the lawsuit. The Company will also contribute to the Trust proceeds obtained from the Company’s sale of its complete interest, including its working interest, in the Brazos Block A-39 tract, which will be sold in conjunction with the Trust’s sale of its assets.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The settlement agreement is subject to customary conditions, including a condition that the settlement is not final until it is approved by the Court and the Court issues a final, non-appealable judgment disposing of all claims. On August 6, 2009, the Court issued an Interlocutory Judgment approving the settlement agreement. The Interlocutory Judgment, together with the settlement agreement and Findings of Fact and Conclusions of Law, disposes of all claims and claimants except five individuals who intervened in this lawsuit. Pioneer intends to file a motion seeking dismissal of the intervenors’ claims. Assuming Pioneer’s motion is granted, the intervenors’ claims will be dismissed, and a final judgment will be entered. Once such final judgment becomes non-appealable (or any timely appeals are resolved), then the settlement agreement will become final. Assuming that the intervenors’ claims are dismissed and no appeals are filed, it is expected that the settlement agreement will become final in the third or fourth quarter of 2009.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Colorado Notice of Violation.</i> On May 13, 2008, the Company was served with a Notice of Violation/Cease and Desist Order by the State of Colorado Department of Public Health and Environmental Water Quality Control Division. The Notice alleges violations of stormwater discharge permits in the Company’s Raton Basin and Lay Creek</font> <font face="Times New Roman" size="2">operations, specifically deficiencies in the Company’s stormwater management plans, failure to implement and maintain best management practices to protect stormwater runoff and failure to conduct inspections of the stormwater management system. The Company has filed an answer to the Notice asserting defenses to the allegations. The Company does not believe that the outcome of this proceeding will materially impact the Company’s liquidity, financial position or future results of operations.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>SemGroup accounts receivable.</i></b> The Company is a creditor in the bankruptcy of SemGroup, L.P. and certain of its subsidiaries (collectively, “SemGroup”), which filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on July 22, 2008 in the U.S. Bankruptcy Court for the District of Delaware. In total, the Company had delinquent receivables from SemGroup of $29.6 million, representing claims for condensate sold pre-petition to SemGroup.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company determined that it was probable that the collection of the pre-petition claims would not occur for a protracted period of time and that some of its claims may have been uncollectible. Consequently, the Company recorded a bad debt expense of approximately $19.6 million during the third quarter 2008, which reduced the carrying value of the claims to approximately $10.0 million.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In April 2009, the Company sold all of its pre-petition claims against SemGroup to a third party for approximately $10.1 million, pursuant to a purchase agreement that contains customary representations, warranties and other provisions. If a portion of the claims become impaired due to circumstances arising from a breach of such representations and warranties, then the Company may be required to repurchase such impaired portion of the claims.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Obligations following divestitures.</i></b> In April 2006, the Company provided the purchaser of its Argentine assets certain indemnifications. The Company remains responsible for certain contingent liabilities related to such indemnifications, subject to defined limitations. The Company does not believe that these obligations, which primarily pertain to matters of litigation, environmental contingencies, royalty obligations and income taxes, are probable of having a material impact on its liquidity, financial position or future results of operations.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company has also retained certain liabilities and indemnified buyers for certain matters in connection with other divestitures, including the sale in 2007 of its Canadian assets.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 0.04 -118348000 -3918000 13529000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE H.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Asset Retirement Obligations</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. The Company does not provide for a market risk premium associated with asset retirement obligations because a reliable estimate cannot be determined. The Company has no assets that are legally restricted for purposes of settling asset retirement obligations. The following table summarizes the Company’s asset retirement obligation transactions during the three and six months ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="68%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Beginning asset retirement obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">173,516</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">200,371</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">172,433</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">208,183</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Liabilities assumed in acquisitions</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">New wells placed on production and changes in estimates (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">15,327</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">630</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">15,366</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(7,791</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Liabilities reclassified to discontinued operations held for sale</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(14,353</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(14,353</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Disposition of wells</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(246</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(246</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Liabilities settled</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(23,046</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(17,271</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(24,976</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(18,804</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of discount on continuing operations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,753</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,961</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,505</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,904</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of discount on discontinued operations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">220</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">199</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">442</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">398</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ending asset retirement obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">154,171</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">185,911</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">154,171</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">185,911</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">During the six months ended June 30, 2008, the Company recorded a $9.0 million decrease in the abandonment estimates and associated insurance recovery estimates for the East Cameron facility that was destroyed by Hurricane Rita in 2005.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company records the current and noncurrent portions of asset retirement obligations in other current liabilities and other liabilities, respectively, in the accompanying consolidated balance sheets. As of June 30, 2009 and December 31, 2008, the current portions of the Company’s asset retirement obligations were $22.7 million and $29.9 million, respectively.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 5505000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE C.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Exploratory Well Costs</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company capitalizes exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. The capitalized exploratory well costs are presented in proved properties in the consolidated balance sheets. If the exploratory well is determined to be impaired, the well costs are charged to exploration and abandonments expense.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table reflects the Company’s capitalized exploratory well activity during the three and six months ended June 30, 2009:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="92%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30, 2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Six Months Ended<br /> June 30, 2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="6"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Beginning capitalized exploratory well costs</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">123,839</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">124,014</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Additions to exploratory well costs pending the determination of proved reserves</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">12,196</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26,338</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Reclassification due to determination of proved reserves</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(17,811</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(27,201</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Exploratory well costs charged to exploration expense</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(4,227</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(9,154</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ending capitalized exploratory well costs</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">113,997</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">113,997</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table provides an aging, as of June 30, 2009 and December 31, 2008, of capitalized exploratory well costs and the number of projects for which exploratory well costs have been capitalized for a period greater than one year, based on the date drilling was completed:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="92%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>    June 30, 2009    </b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>December 31, 2008</b></font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="5"><font face= "Times New Roman" size= "1"><b>(in thousands, except project counts)</b></font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Capitalized exploratory well costs that have been suspended:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">One year or less</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,471</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">54,423</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">More than one year</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">93,526</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">69,591</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">113,997</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">124,014</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Number of projects with exploratory well costs that have been suspended for a period greater than one year</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table provides an aging of capitalized costs of exploration projects that have been suspended for more than one year as of June 30, 2009:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="67%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Total</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2007</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2006</b></font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="15"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="4" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">United States:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Cosmopolitan Unit</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,495</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,834</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,344</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">51,488</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">829</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,525</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(282</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,807</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Tunisia</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">30,506</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,261</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,866</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,434</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,945</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">93,526</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,813</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">30,017</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">55,922</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,774</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b>Cosmopolitan Unit.</b> The Company owns a 100 percent working interest in, and is the operator of, the Cosmopolitan Unit in the Cook Inlet of Alaska. During 2007, the Company drilled the Hansen #1A L1 well, a lateral sidetrack from an existing wellbore, to appraise the resource potential of the unit. The initial unstimulated production test results were encouraging. As a result, the Company began permitting and facilities planning during 2008 to further evaluate the unit’s resource potential. During 2009, the Company plans to continue with permitting, progress engineering studies and develop plans for a second well to be drilled in 2010 to further delineate the extent of the unit’s resource potential.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b>Tunisia - Cherouq.</b> The Company has $17.6 million and $5.0 million of suspended well costs recorded for the Hayaat #1 and Hilal #1 wells, respectively, in the Company’s Cherouq production concession area, which is operated by the Company. The Hayaat #1 well began drilling in April 2008 to test several targeted formations. Mechanical failures were encountered during the testing of the well that did not allow completion of the formation assessments. The Company is analyzing seismic and other data to determine the optimal plan forward for completing the well, which may utilize the existing wellbore or a new wellbore adjacent to the existing well. The Company expects to finalize its Hayaat #1 plans and complete its assessment activities during 2010 or 2011.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Hilal #1 well was originally drilled as an exploration well during 2007. The well was unsuccessful; however, the well is being re-completed to a formation that will be used for water disposal in support of other Cherouq operations. The Company recorded a $1.5 million dry hole charge for the Hilal #1 during 2007, representing the portion of the well costs that will not be used in disposal operations. Installation of the surface equipment is underway and disposal operations are planned to start during the second half of 2009.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b>Tunisia - Borj El Khadra prospects.</b> The Company has $7.9 million of suspended well costs attributable to the Nahkil #1 and Abir #1 wells in the Borj El Khadra exploration permit area, which is operated by a third-party. The Nahkil #1 well encountered oil-bearing sands and the Abir #1 well encountered gas-bearing sands. The Company does not record proved reserves associated with discoveries in exploration permit areas until a production concession is granted. Infrastructure planning is underway and further exploration of the permit area is planned to occur in 2009 or 2010.</font></p> </div> 987565000 -52793000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE G.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Derivative Financial Instruments</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company uses financial derivative contracts to manage exposures to commodity price, interest rate and foreign currency fluctuations. The Company generally does not enter into derivative financial instruments for speculative or trading purposes. The Company also may enter physical delivery contracts to effectively provide commodity price protection. Because these contracts are not expected to be net cash settled, they are considered to be normal sales contracts and not derivatives. Therefore, physical delivery contracts are not accounted for as derivative financial instruments in the financial statements.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">All derivatives are recorded on the balance sheet at estimated fair value. Fair value is determined in accordance with SFAS 157 and is generally determined based on the credit-adjusted present value difference between the fixed contract price and the underlying market price at the determination date. Effective February 1, 2009, the Company discontinued hedge accounting on all existing derivative instruments and since that date has accounted for derivative instruments using the mark-to-market accounting method. Therefore, the Company will recognize all future changes in the fair values of its derivative contracts as gains or losses in the earnings of the period in which they occur.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Changes in the fair value of effective cash flow hedges prior to the Company’s discontinuance of hedge accounting on February 1, 2009 were recorded as a component of AOCI - Hedging, which has been or will be transferred to earnings when the hedged transaction is recognized in earnings. Any ineffective portion of changes in the fair value of hedge derivatives prior to February 1, 2009 was recorded in the earnings of the period of change. The ineffective portion was calculated as the difference between the change in fair value of the hedge derivative and the estimated change in cash flows from the item hedged.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Fair value derivatives.</i></b> The Company monitors the debt capital markets and interest rate trends to identify opportunities to enter into and terminate interest rate derivative contracts, with the objective of reducing the Company’s costs of capital. As of June 30, 2009 and December 31, 2008, the Company was not a party to any fair value hedges.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Cash flow derivatives.</i></b> The Company utilizes commodity swap and collar contracts to (i) reduce the effect of price volatility on the commodities the Company produces and sells, (ii) support the Company’s annual capital budgeting and expenditure plans and (iii) reduce commodity price risk associated with certain capital projects. The Company also, from time to time, utilizes interest rate contracts to reduce the effect of interest rate volatility on the Company’s indebtedness and forward currency exchange agreements to reduce the effect of exchange rate volatility.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Oil prices.</i> All material physical sales contracts governing the Company’s oil production have been tied directly or indirectly to the NYMEX prices. The following table sets forth the volumes in Bbls underlying the Company’s outstanding oil derivative contracts and the weighted average NYMEX prices per Bbl for those contracts as of June 30, 2009:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="65%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>First<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Second<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Third<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fourth<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Outstanding<br /> Average</b></font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Average daily oil production non-hedge derivatives (a):</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,500</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,500</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,000</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">74.72</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">62.99</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">67.02</font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Collar Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">70.38</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">70.38</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">70.38</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52.00</font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Collar Contracts with Short Puts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">15,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">17,500</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">62.38</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">69.72</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">65.52</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">51.40</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">51.47</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">51.43</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Short Put</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">44.70</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">41.47</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">43.31</font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 - Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">98.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">98.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">98.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">98.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">98.32</font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 - Collar Contracts with Short Puts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,000</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">83.46</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">83.46</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">83.46</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">83.46</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">83.46</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">66.08</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">66.08</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">66.08</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">66.08</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">66.08</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Short</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53.42</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53.42</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53.42</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53.42</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53.42</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2011 - Collar Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,000</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">170.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">170.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">170.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">170.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">170.00</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">115.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">115.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">115.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">115.00</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">115.00</font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2011 - Collar Contracts with Short Puts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">19,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">19,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">19,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">19,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">19,000</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">93.31</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">93.31</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">93.31</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">93.31</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">93.31</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">72.37</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">72.37</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">72.37</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">72.37</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">72.37</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Short Put</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">58.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">58.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">58.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">58.32</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">58.32</font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Subsequent to June 30, 2009, the Company entered into additional swap contracts for (i) 750 Bbls per day of the Company’s fourth quarter 2009 production at an average price of $69.35 per Bbl, (ii) 500 Bbls per day of the Company’s 2010 production at an average price of $73.45 per Bbl, (iii) 750 Bbls per day of the Company’s 2011 production at an average price of $77.25 per Bbl and (iv) 3,000 Bbls per day of the Company’s 2012 and 2013 production at an average price of $79.32 and $81.02, respectively. Additionally, the Company entered into collar contracts with short puts for (i) 1,000 Bbls per day of the Company’s 2010 production with a ceiling price of $87.75 per Bbl, a floor price of $70.00 Bbl and a short put price of $55.00 per Bbl, (ii) 6,000 Bbls per day of the Company’s 2011 production with a ceiling price of $98.70 per Bbl, a floor price of $74.17 per Bbl and a short put price of $59.17 per Bbl and (iii) 1,000 Bbls of the Company’s 2012 and 2013 production with a ceiling price of $103.50 per Bbl and $111.50 per Bbl, respectively, a floor price of $80.00 per Bbl and $83.00 per Bbl, respectively, and a short put price of $65.00 per Bbl and $68.00 per Bbl, respectively.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company reports average oil prices per Bbl including the effects of oil quality adjustments, amortization of deferred volumetric production payment (“VPP”) revenue and the net effect of oil hedges. The following table sets forth (i) the Company’s oil prices from continuing operations, both reported (including hedge results and amortization of deferred VPP revenue) and realized (excluding hedge results and amortization of deferred VPP revenue), (ii) amortization of deferred VPP revenue to oil revenue from continuing operations and (iii) the net effect of settlements of oil price hedges on oil revenue from continuing operations for the three and six month periods ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="74%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="4" height="8"></td> <td colspan="3" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Average price reported per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">70.89</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">88.27</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">61.83</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">82.55</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Average price realized per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53.91</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">123.80</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">45.44</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">111.52</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">VPP increase to oil revenue (in millions)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24.7</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26.0</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">49.2</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52.0</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Increase (decrease) to oil revenue from hedging activity (in millions)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23.9</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(119.9</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">46.3</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(199.3</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Natural gas liquids prices.</i> All material physical sales contracts governing the Company’s NGL production have been tied directly or indirectly to Mont Belvieu prices. The following table sets forth the volumes in Bbls under outstanding NGL derivative contracts and the weighted average Mont Belvieu-posted-prices per Bbl for those contracts as of June 30, 2009:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="70%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>First<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Second<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Third<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fourth<br /> Quarter</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Outstanding<br /> Average</b></font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Average daily NGL production non-hedge derivatives (a):</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,750</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,750</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,750</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">34.28</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">34.28</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">34.28</font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 - Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (Bbl)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,250</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,250</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,250</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,250</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,250</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">47.36</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">47.37</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">47.38</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">47.38</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">47.38</font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Subsequent to June 30, 2009, the Company entered into additional swap contracts for 750 Bbls per day of the Company’s 2011 and 2012 production at an average price of $34.65 per Bbl and $35.03 per Bbl, respectively.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company reports average NGL prices per Bbl including the effects of NGL quality adjustments and the net effect of NGL derivatives. The following table sets forth (i) the Company’s NGL prices from continuing operations, both reported (including hedge results) and realized (excluding hedge results) and (ii) the net effect of NGL price hedges on NGL revenue from continuing operations for the three- and six-month periods ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="76%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size= "1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Average price reported per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26.78</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">56.28</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24.69</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">55.10</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Average price realized per Bbl</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">25.42</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">57.10</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23.45</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">55.71</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Increase (decrease) to NGL revenue from hedging activity (in millions)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2.4</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1.5</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4.7</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2.2</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Gas prices.</i> All material physical sales contracts governing the Company’s gas production have been tied directly or indirectly to regional index prices where the gas is produced. The Company uses derivative contracts to mitigate gas price volatility and reduce basis risk between NYMEX prices and actual index prices upon which the gas is sold. The following table sets forth the volumes in MMBtus under outstanding gas derivative contracts and the weighted average index prices per MMBtu for those contracts as of June 30, 2009:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="60%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>First<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Second<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Third<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fourth<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Outstanding<br /> Average</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Average daily gas production non-hedge derivatives (a):</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">135,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">135,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">135,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.25</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.16</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.21</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Collar Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.90</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.90</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.90</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Collar Contracts with Short Puts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">150,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">150,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">150,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.35</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.35</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.35</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4.18</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4.18</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4.18</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Short Put</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3.18</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3.18</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3.18</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 - Basis Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">285,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">285,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">285,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.96</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.96</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.96</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 - Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">125,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">125,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">125,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">125,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">125,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.60</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.60</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.60</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.60</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.60</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 - Collar Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">30,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">30,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">30,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">30,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">30,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.52</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.52</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.52</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.52</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.52</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 - Collar Contracts with Short Puts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">95,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">95,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">95,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">95,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">95,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.94</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.94</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.94</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.94</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.94</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Short Put</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 - Basis Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">205,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">205,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">205,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">205,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">205,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.80</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.80</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.80</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.80</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.80</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2011 - Collar Contracts with Short Puts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">50,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">50,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">50,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">50,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">50,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ceiling</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9.36</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9.36</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9.36</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9.36</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9.36</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Floor</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 7em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Short Put</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6.00</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2011 - Basis Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.82</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.82</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.82</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.82</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.82</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2012 - Basis Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.78</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.78</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.78</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.78</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.78</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2013 - Basis Swap Contracts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Volume (MMBtu)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Price per MMBtu</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.71</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.71</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.71</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.71</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(0.71</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Subsequent to June 30, 2009, the Company entered into additional swap contracts for (i) 815 MMBtu per day and 2,500 MMBtu per day of the Company’s third and fourth quarter production, respectively, at an average price of $4.48 per MMBtu, (ii) 27,295 MMBtu per day of the Company’s 2010 production at an average price of $5.59 per MMBtu and (iii) 2,500 MMBtu per day of the Company’s 2011, 2012 and 2013 production at an average price of $6.65 per MMBtu, $6.77 per MMBtu and $6.89 per MMBtu, respectively. Subsequent to June 30, 2009 the Company also entered into additional collar contracts with short puts for 50,000 MMBtu per day at a ceiling price of $8.55 per MMBtu, a floor price of $6.00 per MMBtu and a short put price of $4.50 per MMBtu. Subsequent to June 30, 2009, the Company also entered into additional basis swap contracts for (i) 10,000 MMBtu per day of the Company’s 2010 production at an average price differential of $0.26 per MMBtu and (ii) 40,000 MMBtu per day of the Company’s 2011 production at an average price differential of $0.54 per MMBtu.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company reports average gas prices per Mcf including the effects of Btu content, gas processing, shrinkage adjustments, amortization of deferred VPP revenue and the net effect of gas hedges. The following table sets forth (i) the Company’s gas prices from continuing operations, both reported (including hedge results and amortization of deferred VPP revenue) and realized (excluding hedge results and amortization of deferred VPP revenue), (ii) amortization of deferred VPP revenue to gas revenue from continuing operations and (iii) the net effect of settlements of gas price hedges on gas revenue from continuing operations for the three- and six-month periods ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="80%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size= "1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="4" height="8"></td> <td colspan="3" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Average price reported per Mcf</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3.43</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8.70</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3.90</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8.21</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Average price realized per Mcf</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3.02</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9.54</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3.31</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8.44</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">VPP increase to gas revenue (in millions)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">12.3</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">13.5</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24.5</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26.9</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Increase (decrease) to gas revenue from hedging activity (in millions)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2.3</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(42.2</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">19.0</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(42.7</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Interest rate.</i> During January 2008, the Company entered into interest rate swap contracts and designated the contracts as cash flow hedges of the forecasted interest rate risk associated with a portion of the Company’s Credit Facility indebtedness. The interest rate swap contracts are variable-for-fixed-rate swaps on $400 million notional amount of debt at a weighted average fixed annual rate of 2.87 percent, excluding any applicable margins. The interest rate swaps had an effective start date of February 2008, with $200 million terminating during February 2010 and $200 million during February 2011.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Hedge ineffectiveness.</i></b> On February 1, 2009, the Company discontinued hedge accounting. As a result, the Company only recorded ineffectiveness during January 2009, which was nominal. During the three and six months ended June 30, 2008, the Company recorded net ineffectiveness income of $.9 million and $1.9 million, respectively. Hedge ineffectiveness represents the ineffective portions of changes in the fair values of the Company’s cash flow hedging instruments. The primary causes of hedge ineffectiveness were changes in forecasted hedged sales volumes and commodity price correlations.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Tabular disclosure of derivative fair value.</i></b> Effective February 1, 2009, the Company discontinued hedge accounting on all existing derivative instruments, and since that date forward has accounted for derivative instruments</font> <!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face= "Times New Roman" size="2">using the mark-to-market accounting method. All of the Company’s derivatives were made up of non-hedge derivatives as of June 30, 2009 and both hedge derivatives and non-hedge derivatives as of December 31, 2008. The following tables provide disclosure of the Company’s derivative instruments:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="40%"></td> <td valign="bottom" width="2%"></td> <td width="20%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td width="20%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" align="middle" colspan="11"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Fair Value of Derivative Instruments as of June 30, 2009</b></font></p> </td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="4"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Asset Derivatives (a)</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="4"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Liability Derivatives (a)</b></font></p> </td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> <p style="WIDTH: 17pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Type</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"> <font face="Times New Roman" size= "1"><b>Balance Sheet</b></font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Location</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fair</b></font><br /> <font face="Times New Roman" size="1"><b>Value</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"> <font face="Times New Roman" size= "1"><b>Balance Sheet</b></font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Location</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fair</b></font><br /> <font face="Times New Roman" size="1"><b>Value</b></font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Derivatives not designated as hedging instruments under SFAS 133</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">90,654</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">127,382</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,803</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">56,663</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">62,231</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,739</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Total derivatives not designated as hedging instruments under SFAS 133</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">147,317</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">199,155</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Total derivatives</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">147,317</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">199,155</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="37%"></td> <td valign="bottom" width="3%"></td> <td width="20%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td width="20%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" align="middle" colspan="11"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Fair Value of Derivative Instruments as of December 31, 2008</b></font></p> </td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="4"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Asset Derivatives (a)</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="4"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Liability Derivatives (a)</b></font></p> </td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> <p style="WIDTH: 17pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Type</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"> <font face="Times New Roman" size= "1"><b>Balance Sheet</b></font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Location</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fair</b></font><br /> <font face="Times New Roman" size="1"><b>Value</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"> <font face="Times New Roman" size= "1"><b>Balance Sheet</b></font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 1px" align="center"> <font face="Times New Roman" size="1"><b>Location</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fair</b></font><br /> <font face="Times New Roman" size="1"><b>Value</b></font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Derivatives not designated as hedging instruments under SFAS 133</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,606</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,233</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,972</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Total derivatives not designated as hedging instruments under SFAS 133</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,578</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,233</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td height="8"></td> <td colspan="2" height="8"></td> <td colspan="3" height="8"></td> <td colspan="2" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Derivatives designated as hedging instruments under SFAS 133</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">57,367</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,195</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - current</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,484</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">68,622</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">17,165</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivatives - noncurrent</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,419</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Total derivatives designated as hedging instruments under SFAS 133</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">125,989</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">51,263</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Total derivatives</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">133,567</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">71,496</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Derivative assets and liabilities shown in the tables above are presented as gross assets and liabilities, without regard to master netting arrangements which are considered in the presentations of derivative assets and liabilities in the accompanying consolidated balance sheets.</font></p> </td> </tr> </tbody> </table> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(b)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Represent derivative obligations under terminated hedge arrangements.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="52%"></td> <td valign="bottom" width="2%"></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"> <p style="WIDTH: 200pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Derivatives in SFAS 133 Cash Flow Hedging Relationships</b></font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="14"><font face="Times New Roman" size= "1"><b>Amount of Gain/(Loss) Recognized in</b></font><br /> <font face="Times New Roman" size= "1"><b>AOCI on Effective Portion</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended</b></font><br /> <font face="Times New Roman" size= "1"><b>June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Six Months Ended</b></font><br /> <font face="Times New Roman" size= "1"><b>June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="2" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font face= "Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,420</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(433</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,101</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom" nowrap="nowrap" align="right"><font face= "Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(565,927</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,968</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(789,799</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font face= "Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(557,507</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,535</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(784,698</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="16"></td> <td colspan="2" height="16"></td> <td colspan="16" height="16"></td> </tr> <tr> <td valign="bottom" rowspan="3"> <p style="WIDTH: 200pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Derivatives in SFAS 133 Cash Flow Hedging Relationships</b></font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" rowspan="3"><font face="Times New Roman" size= "1"><b>Location of Gain/(Loss)<br /> Reclassified from AOCI<br /> into Earnings</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="14"><font face="Times New Roman" size= "1"><b>Amount of Gain/(Loss) Reclassified</b></font><br /> <font face="Times New Roman" size= "1"><b>from AOCI into Earnings</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended</b></font><br /> <font face="Times New Roman" size= "1"><b>June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Six Months Ended</b></font><br /> <font face="Times New Roman" size= "1"><b>June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="2" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Interest expense</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2,017</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(332</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(4,272</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(305</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Oil and gas revenue</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">28,490</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(163,527</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">69,912</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(244,214</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26,473</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(163,859</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">65,640</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(244,519</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="16"></td> <td colspan="2" height="16"></td> <td colspan="16" height="16"></td> </tr> <tr> <td valign="bottom" rowspan="3"> <p style="WIDTH: 200pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Derivatives in SFAS 133 Cash Flow Hedging Relationships</b></font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" rowspan="3"><font face="Times New Roman" size= "1"><b>Location of Gain/(Loss)<br /> Recognized in Earnings<br /> on Ineffective Portion</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="14"><font face="Times New Roman" size= "1"><b>Amount of Gain/(Loss) Recognized in</b></font><br /> <font face="Times New Roman" size= "1"><b>Earnings on Ineffective Portion</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="2" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivative gains, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">881</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,908</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td height="16"></td> <td colspan="2" height="16"></td> <td colspan="16" height="16"></td> </tr> <tr> <td valign="bottom" rowspan="3"> <p style="WIDTH: 234pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Derivatives Not Designated as Hedging Instruments under SFAS 133</b></font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" rowspan="3"><font face="Times New Roman" size= "1"><b>Location of Gain (Loss)<br /> Recognized in Earnings<br /> on Derivative</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="14"><font face="Times New Roman" size= "1"><b>Amount of Gain (Loss) Recognized in</b></font><br /> <font face="Times New Roman" size="1"><b>Earnings on Derivative</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="2" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivative losses, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2,319</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font face= "Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,251</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font face= "Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"> <p align="justify"><font face="Times New Roman" size= "2">Derivative losses, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(167,905</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom" nowrap="nowrap" align="right"><font face= "Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(67,110</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom" nowrap="nowrap" align="right"><font face= "Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total</font></p> </td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(170,224</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(70,361</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>AOCI - Hedging.</i></b> The fair value of the effective portion of the derivative contracts on January 31, 2009 is reflected in AOCI-Hedging and is being transferred to oil and gas revenue (for commodity derivatives) and interest expense (for interest rate derivatives) over the remaining term of the contracts. In accordance with the mark-to-market method of accounting, the Company will recognize all future changes in fair values of its derivative contracts as gains or losses in the earnings of the period in which they occur.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">As of June 30, 2009 and December 31, 2008, AOCI - Hedging represented net deferred gains of $76.6 million and $88.8 million, respectively. The AOCI - Hedging balance as of June 30, 2009 was comprised of $168.5 million of net deferred gains on the effective portions of discontinued commodity hedges, $9.3 million of net deferred losses on the effective portions of discontinued interest rate hedges, $45.4 million of associated net deferred tax provisions and a charge for $37.2 million of AOCI - Hedging attributable to noncontrolling interests. The $12.2 million decrease in net deferred hedge gains comprising AOCI—Hedging during the six months ended June 30, 2009 was primarily attributable to the transfer of net deferred hedge gains to earnings, partially offset by deferred fair value gains during January 2009 and a decrease in AOCI - Hedging attributable to noncontrolling interests. AOCI - Hedging attributable to noncontrolling interests represented $44.7 million of deferred gains, net of taxes as of December 31, 2008.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">During the twelve months ending June 30, 2010, the Company expects to reclassify approximately $95.0 million of AOCI - Hedging net deferred gains to oil and gas revenues and $5.2 million of AOCI - Hedging net deferred losses to interest expense. The Company also expects to reclassify approximately $12.1 million of net deferred income tax provisions associated with hedge derivatives during the year ending June 30, 2010 from AOCI - Hedging to income tax expense.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Discontinued commodity hedges.</i></b> Effective on February 1, 2009, the Company discontinued all of its commodity and interest rates hedges and began accounting for the associated derivatives using the mark-to-market accounting method. Prior to February 1, 2009, the Company periodically discontinued commodity hedges by terminating the derivative positions when the underlying commodity prices reached a point that the Company believed would be the high or low price of the commodity prior to the scheduled settlement of the open commodity position. This allowed the Company to lock in gains or minimize losses associated with the open hedge positions. At the time of hedge discontinuation, the amounts recorded in AOCI—Hedging are maintained and amortized to earnings over the periods the production was scheduled to occur.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table sets forth, as of June 30, 2009, the scheduled amortization of net deferred gains and (losses) on discontinued commodity hedges that will be recognized as increases or (decreases) to the Company’s future oil and gas revenues:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="92%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="60%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>First<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Second<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Third<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Fourth<br /> Quarter</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="18"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2009 net deferred hedge gains</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26,125</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,757</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">50,882</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010 net deferred hedge gains</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21,700</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">22,029</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">22,353</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">22,417</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">88,499</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2011 net deferred hedge gains</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,989</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,072</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,159</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,020</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">32,240</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2012 net deferred hedge losses</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(810</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(791</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(783</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(772</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,156</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE M.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Impairment of Oil and Gas Properties</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Oil and gas properties assessments.</i> During the first quarter of 2009, the downward adjustments to economically recoverable resource potential in the Company’s Uinta/Piceance area associated with declines in commodity prices and well performance led to the impairment of the net assets in the Company’s Uinta/Piceance area. The Company’s estimates of the undiscounted future cash flows attributed to the assets indicated that their carrying amounts were not expected to be recovered. Consequently, the Company recorded a $21.1 million noncash charge during the first quarter of 2009 to reduce the carrying value of the Uinta/Piceance area oil and gas properties. The impairment charge reduced the oil and gas properties’ carrying values to their estimated fair values, represented by the estimated discounted future cash flows attributable to the assets, which were derived from Level 2 fair value inputs.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company’s primary assumptions of the estimated future cash flows attributable to oil and gas properties are based on (i) proved reserves and risk-adjusted probable and possible reserves and (ii) management’s commodity price outlook.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Goodwill assessments.</i> In accordance with SFAS 142, the Company assesses its goodwill for impairment annually during the third quarter using a July 1 assessment date. The Company’s assessment of goodwill during the third quarter of 2008 indicated that it was not impaired. As a result of declines in commodity prices and a significant decline in the Company’s market capitalization during the second half of 2008, which the Company considered an event that might indicate impairment to the carrying value of goodwill, the Company has reassessed whether the fair value of its net assets supported the carrying value of the Company’s goodwill at its United States reporting unit at December 31, 2008 and quarterly thereafter. The Company’s quarterly reassessments have indicated that its goodwill was not impaired.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company’s assessments of goodwill for impairment include estimates of the fair value of its United States reporting unit and comparisons of those fair value estimates with the United States reporting unit’s carrying value. The Company’s estimates of the fair value of its United States reporting unit entailed estimating the fair values of the reporting unit’s assets and liabilities. The primary component of those assets and liabilities is comprised of the reporting unit’s oil and gas properties, whose estimated values were based on the estimated discounted future net cash flows expected to be recovered from the properties. The Company’s primary assumptions in preparing the estimated discounted future net cash flows expected to be recovered from the properties are based on (i) proved reserves and risk-adjusted probable reserves, (ii) management’s price outlook, including assumptions as to inflation of costs and expenses, (iii) the Company’s weighted average cost of capital and (iv) future income tax expense attributable to the net cash flows.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Due to the significant decline in the Company’s market capitalization, the Company expanded its assessment of goodwill impairment to consider the fair value of the United States reporting unit as determined using both the previously described discounted future net cash flow approach and a market approach. The Company assessed market capitalization over the 30-day and 60-day periods prior to June 30, 2009, March 31, 2009 and December 31, 2008 and performed sensitivity valuations of the United States reporting unit’s net assets based on varying valuation combinations of future discounted cash flow assumptions (including assessing future cash flows from proved properties only), market capitalization, control premiums, price inflation assumptions and discount rate assumptions. Those assessments indicated that the United States goodwill was not impaired as of June 30, 2009, March 31, 2009 and December 31, 2008. The Company will continue to assess its goodwill for impairment and such assessments may be affected by (i) additional United States reserve adjustments, both positive and negative, (ii) results of drilling activities, (iii) changes in management’s outlook on commodity prices and costs and expenses, (iv) changes in the Company’s market capitalization, (v) changes in the Company’s weighted average cost of capital and (vi) changes in income taxes.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> -3918000 52788000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE D.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Disclosures About Fair Value Measurements</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The valuation framework of SFAS 157 is based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. These two types of inputs are further prioritized into the following fair value input hierarchy:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td width="1%"><font size="1"> </font></td> <td valign="top" align="left" width="2%"><font face= "Times New Roman" size="2">•</font></td> <td valign="top" width="1%"><font size="1"> </font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Level 1 - quoted prices for identical assets or liabilities in active markets.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td width="1%"><font size="1"> </font></td> <td valign="top" align="left" width="2%"><font face= "Times New Roman" size="2">•</font></td> <td valign="top" width="1%"><font size="1"> </font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Level 2 - quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 6px; MARGIN-BOTTOM: 0px">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td width="1%"><font size="1"> </font></td> <td valign="top" align="left" width="2%"><font face= "Times New Roman" size="2">•</font></td> <td valign="top" width="1%"><font size="1"> </font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Level 3 - unobservable inputs for the asset or liability.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2009, for each of the fair value hierarchy levels:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="59%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="8"><font face="Times New Roman" size="1"><b>Fair Value Measurements at Reporting Date Using</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2" rowspan="2"><font face="Times New Roman" size= "1"><b>Fair Value at<br /> June 30, 2009</b></font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Quoted Prices in<br /> Active Markets for<br /> Identical Assets<br /> (Level 1)</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Significant Other<br /> Observable<br /> Inputs</b></font><br /> <font face="Times New Roman" size="1"><b>(Level 2)</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Significant<br /> Unobservable<br /> Inputs</b></font><br /> <font face="Times New Roman" size="1"><b>(Level 3)</b></font></td> <td valign="bottom"><font size="1">  </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="11"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Assets:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Trading securities</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">188</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">241</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">96,939</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,228</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">104,167</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Deferred compensation plan assets</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23,445</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23,445</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total assets</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23,498</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">97,127</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,228</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">127,853</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <tr> <td height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">144,701</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,762</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">146,463</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,542</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,542</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total liabilities</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">154,243</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,762</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">156,005</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following tables present the changes in the fair values of the Company’s net commodity derivative assets classified as Level 3 in the fair value hierarchy:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="70%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> <p style="WIDTH: 254pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Fair Value Measurements Using Significant Unobservable Inputs (Level 3)</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="14"><font face="Times New Roman" size= "1"><b>Three Months Ended June 30, 2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>NGL Swap<br /> Contracts</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>Gas<br /> Three-Way<br /> Collars</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>Oil<br /> Three-Way<br /> Collars</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,470</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,697</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,364</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,137</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total gains (losses) (a):</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Net unrealized losses included in earnings</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(8,666</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(8,666</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Net realized losses included in earnings</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(780</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(780</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Settlements</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,558</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,558</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Transfers into/out of Level 3</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,697</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,364</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,667</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,466</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,466</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">The hedge-effective portions of realized gains and losses on commodity derivatives in AOCI - Hedging are included in oil and gas revenues, while non-hedge derivatives or ineffective portions of realized and unrealized gains and losses are included in derivative losses, net in the accompanying consolidated statements of operations.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="70%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> <p style="WIDTH: 254pt; BORDER-BOTTOM: #000000 1px solid"> <font face="Times New Roman" size="1"><b>Fair Value Measurements Using Significant Unobservable Inputs (Level 3)</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="14"><font face="Times New Roman" size="1"><b>Six Months Ended June 30, 2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>NGL Swap<br /> Contracts</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>Gas<br /> Three-Way<br /> Collars</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" align="middle" colspan="2"><font face= "Times New Roman" size="1"><b>Oil<br /> Three-Way<br /> Collars</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,560</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,560</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total gains (losses):</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Net unrealized gains (losses) included in earnings (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(6,565</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,697</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,364</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(4,898</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Net derivative losses included in other comprehensive income</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,855</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,855</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Net realized losses included in earnings (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(371</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(371</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Settlements</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(4,303</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(4,303</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Transfers into/out of Level 3</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,697</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,364</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,667</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,466</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,466</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">The hedge-effective portions of realized gains and losses on commodity derivatives in AOCI - Hedging are included in oil and gas revenues, while non-hedge derivatives or ineffective portions of realized and unrealized gains and losses are included in derivative losses, net in the accompanying consolidated statements of operations.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table presents the carrying amounts and fair values of the Company’s financial instruments as of June 30, 2009 and December 31, 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="68%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size= "1"><b>June 30, 2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size= "1"><b>December 31, 2008</b></font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size="1"><b>Fair Value</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size="1"><b>Fair Value</b></font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="11"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Assets:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">104,167</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">104,167</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">132,216</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">132,216</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Trading securities</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">241</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">241</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">356</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">356</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Deferred compensation plan assets</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23,445</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23,445</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,276</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,276</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Notes receivable due 2008 to 2011</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,447</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,447</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">11,258</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">11,258</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Commodity price derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">146,463</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">146,463</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,242</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">60,242</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest rate derivatives</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,542</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,542</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,903</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,903</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Credit facility</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">982,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">937,032</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">913,000</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">868,597</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2.875% senior convertible notes due 2038</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">422,239</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">399,120</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">415,194</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">345,600</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">5.875 % senior notes due 2012</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,180</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,007</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,191</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,233</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">5.875 % senior notes due 2016</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">385,479</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">374,554</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">382,010</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">301,583</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">6.65 % senior notes due 2017</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">483,852</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">429,071</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">483,792</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">339,570</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">6.875 % senior notes due 2018</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">449,146</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">388,143</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">449,132</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">292,175</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">7.20 % senior notes due 2028</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">249,923</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">197,179</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">249,922</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">145,000</font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Trading securities and deferred compensation plan assets.</i></b> The Company’s trading securities represent equity securities that are not actively traded on major exchanges and, to a lesser extent, trading securities that are actively traded on major exchanges. The Company’s deferred compensation plan assets represent investments in equity and mutual fund securities that are actively traded on major exchanges plus unallocated contributions as of the measurement date. As of June 30, 2009, all significant inputs to these asset exchange values represented Level 1 independent active exchange market price inputs except inputs for trading securities that are not actively traded on major exchanges, which were provided by broker quotes representing Level 2 inputs.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Interest rate derivatives.</i></b> The Company’s interest rate derivative liabilities represent swap contracts for $400 million notional amount of debt, whereby the Company pays a fixed rate of interest and the counterparty pays a variable LIBOR-based rate. The net derivative liability values attributable to the Company’s interest rate derivative contracts as of June 30, 2009 are based on (i) the contracted notional amounts, (ii) LIBOR rate yield curves provided by counterparties and corroborated with forward active market-quoted LIBOR rate yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. The Company’s interest rate derivative asset measurements represent Level 2 inputs in the hierarchy priority.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Commodity derivatives.</i></b> The Company’s commodity derivatives represent oil, NGL and gas swap and collar contracts. The Company’s oil and gas swap, collar and three-way collar derivative contract asset and liability measurements represent Level 2 inputs in the hierarchy priority while NGL derivative contract asset and liability measurements represent Level 3 inputs in the hierarchy priority.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Oil derivatives.</i> The Company’s oil derivatives are swap, collar and three-way collar contracts for notional Bbls of oil at fixed (in the case of swap contracts) or interval (in the case of collar and three-way collar contracts) NYMEX West Texas Intermediate (“WTI”) oil prices. The asset and liability values attributable to the Company’s oil derivatives as of June 30, 2009 are based on (i) the contracted notional volumes, (ii) independent active NYMEX futures price quotes for WTI oil, (iii) the applicable estimated credit-adjusted risk-free rate yield curve and (iv) the implied rate of volatility inherent in the collar and three-way collar contracts. The implied rates of volatility inherent in the Company’s collar contracts were determined based on market-quoted volatility factors adjusted for estimated volatility skews and corroborated with average volatility factors provided by the Company’s counterparties.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>NGL derivatives.</i> The Company’s NGL derivatives are swap contracts for notional blended Bbls of Mont Belvieu-posted-price NGLs. The asset and liability values attributable to the Company’s NGL derivatives as of June 30, 2009 are based on (i) the contracted notional volumes, (ii) independent broker-supplied forward Mont Belvieu-posted-price quotes and (iii) the applicable credit-adjusted risk-free rate yield curve.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Gas derivatives.</i> The Company’s gas derivatives are swap, collar and three-way collar contracts for notional MMBtus of gas contracted at various posted price indexes, including NYMEX Henry Hub (“HH”) swap contracts coupled with basis swap contracts that convert the HH price index point to other price indexes. The asset and liability values attributable to the Company’s gas derivative contracts as of June 30, 2009 are based on (i) the contracted notional volumes, (ii) independent active NYMEX futures price quotes for HH gas, (iii) averages of forward posted price quotes supplied by independent brokers who are active in buying and selling gas derivatives at the indexes other than HH (iv) the applicable credit-adjusted risk-free rate yield curve and (v) the implied rate of volatility inherent in the collar and three-way collar contracts. The implied rates of volatility inherent in the Company’s collar contracts were determined based on market-quoted volatility factors adjusted for estimated volatility skews and corroborated with average volatility factors provided by the Company’s counterparties.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company corroborated independent broker-supplied forward price quotes by comparing price quote samples to alternate observable market data.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Credit facility</i>. The fair value of the Company’s credit facility is based on (i) contractual interest and fees, (ii) forward active market-quoted LIBOR rate yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. The Company’s credit facility measurements represent Level 2 inputs in the hierarchy priority.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><i>Senior notes</i>. The Company’s senior notes represent debt securities that are actively traded on major exchanges.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> -62000 0 -62000 67929000 21091000 -107958000 -149826000 -0.95 -0.95 1761000 0.02 0.02 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE E.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Income Taxes</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company accounts for income taxes in accordance with the provisions of SFAS No. 109, “Accounting for Income Taxes” (“SFAS 109”). SFAS 109 requires that the Company continually assess both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. Pioneer monitors Company-specific, oil and gas industry and worldwide economic factors to assess the likelihood that the Company’s net operating loss carryforwards (“NOLs”) and other deferred tax attributes in the U.S. federal, state and foreign tax jurisdictions will be utilized prior to their expiration. As of June 30, 2009 and December 31, 2008, the Company’s valuation allowances (relating primarily to foreign tax jurisdictions) were $42.0 million and $37.5 million, respectively.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company also accounts for income taxes in accordance with FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), which clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of June 30, 2009, the Company had no unrecognized tax benefits (as defined in FIN 48). In connection with the adoption of FIN 48, the Company established a policy to account for interest charges with respect to income taxes as interest expense and any penalties, with respect to income taxes, as other expense in the consolidated statements of operations. The Company files income tax returns in the U.S. federal and various state and foreign jurisdictions. With few exceptions, the Company believes that it is no longer subject to examinations by tax authorities for years before 2003. As of June 30, 2009, no adjustments had been proposed in any jurisdiction that would have a significant effect on the Company’s future results of operations or financial position.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">On June 30, 2009, pursuant to Tunisian law, the Company established an investment reserve equal to 20 percent of 2008 taxable profits on the Adam and Cherouq concessions and thereby reduced current taxes payable by $13.1 million with a corresponding offset to deferred income taxes in the Company’s accompanying consolidated balance sheets. The investment reserve will be used to fund future drilling activity or pipeline infrastructure projects in Tunisia.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Income tax (provisions) benefits.</i></b> The Company’s income tax (provisions) benefits attributable to income from continuing operations consisted of the following for the three and six months ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="70%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Current:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">U.S. federal</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(777</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">14,328</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">294</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,908</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">U.S. state</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(6,329</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(686</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(7,006</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,597</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,220</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(25,680</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(942</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(40,451</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,114</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(12,038</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(7,654</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(33,140</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Deferred:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">U.S. federal</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52,576</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(84,481</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">56,104</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(142,866</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">U.S. state</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,312</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(5,422</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,033</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2,993</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(16,604</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(19,034</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(9,344</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(25,452</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">42,284</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(108,937</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52,793</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(171,311</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income tax (provision) benefit</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">44,398</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(120,975</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">45,139</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(204,451</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Discontinued operations.</i></b> The Company’s income tax (provisions) benefits attributable to income from discontinued operations consisted of the following for three and six months ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="77%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Current:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">348</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(171</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">348</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(171</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Deferred:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">U.S. federal</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,472</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,529</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(949</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(6,307</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">47</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">870</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,472</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,482</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(949</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(5,437</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income tax provision</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(1,472</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(3,134</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(949</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(5,608</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> -45139000 -107388000 -53941000 14095000 -31796000 101000 57689000 14187000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE Q.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Insurance Claims</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">As a result of Hurricane Rita in September 2005, the Company’s East Cameron facility, located in the Gulf of Mexico shelf, was destroyed. As of June 30, 2009, the Company estimated that it will cost approximately $16 million to $21 million to complete the reclamation and abandonment of the East Cameron facility. The operations to reclaim and abandon the East Cameron facilities began in January 2007. The estimate of the remaining costs to reclaim and abandon the East Cameron facility is based upon an estimate by the Company.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The remaining estimated cost to reclaim and abandon the East Cameron facilities contains a number of assumptions that could cause the ultimate cost to be higher or lower than the estimate, as there are many uncertainties when working offshore and underwater with damaged equipment and wellbores. The Company has expended approximately $182.0 million on the reclamation and abandonment of the East Cameron facility through June 30, 2009. During the three months ended June 30, 2009, the Company recorded a $15.0 million noncash charge to hurricane activity, net in the accompanying statements of operations to increase its estimate of the total costs to reclaim and abandon the East Cameron facility.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company filed a claim with its insurance providers regarding the loss at East Cameron. Under the Company’s insurance policies, the East Cameron facility had the following coverages: (a) $14 million of scheduled property value for the platform, which was received in 2005, (b) $4 million of scheduled business interruption insurance after a deductible waiting period, which was received in 2006, (c) $100 million of well restoration and safety, in total, for all assets per occurrence and (d) $400 million for debris removal coverage for all assets per occurrence.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">For the six months ended June 30, 2009, the Company has received $11.6 million from one of its insurance providers related to debris removal, which reduced the Company’s recorded receivable. At the present, no recoveries have been reflected related to certain costs associated with plugging and abandonment and the well restoration and safety coverages. In 2007, the Company commenced legal actions against its insurance carriers regarding policy</font> <font face="Times New Roman" size="2">coverage issues, primarily related to debris removal, certain costs associated with plugging and abandonment, and the well restoration and safety coverages. The Company continues to expect that a substantial portion of the loss will be recoverable from insurance.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 84613000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE F.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Long-term Debt</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Lines of credit.</i></b> During April 2007, the Company entered into an Amended and Restated 5-Year Revolving Credit Agreement (the “Credit Facility”) that matures in April 2012, unless extended in accordance with the terms of the Credit Facility. The Credit Facility provides for initial aggregate loan commitments of $1.5 billion, which may be increased to a maximum aggregate amount of $2.0 billion if the lenders increase their loan commitments or if loan commitments of new financial institutions are added. As of June 30, 2009, the Company had $982.0 million of outstanding borrowings under the Credit Facility and $46.0 million of undrawn letters of credit, all of which were commitments under the Credit Facility, leaving the Company with $472.0 million of unused borrowing capacity under the Credit Facility.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Effective April 29, 2009, the Company and the lenders under the Company’s Credit Facility amended the Credit Facility to provide the Company additional financial flexibility. The Credit Facility contains certain financial covenants, one of which required the Company to maintain a ratio of the net present value of the Company’s oil and gas properties to total debt of at least 1.75 to 1.0 until the Company achieves an investment grade rating by Moody’s Investors Service, Inc. or Standard & Poors Ratings Group, Inc. The amendment changed that ratio to 1.5 to 1.0 through the period ending March 31, 2011, after which time the ratio would revert to 1.75 to 1.0, and provides that the Company may include in the calculation of the present value of its oil and gas properties 75 percent of the market value of its ownership of limited partner units of Pioneer Southwest. The covenant requiring the Company to maintain a ratio of total debt to total capitalization of no more than 0.60 to 1.0 was not changed.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The amendment also adjusted certain borrowing rates and commitment fees, and changed certain provisions relating to the consequences if a lender under the Credit Facility defaults in its obligations under the agreement. After taking into account the amendment, revolving loans under the Credit Facility bear interest, at the option of the Company, based on (a) a rate per annum equal to the higher of the prime rate announced from time to time by JPMorgan Chase Bank or the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System during the last preceding business day plus .5 percent plus a defined alternate base rate spread margin (“ABR Margin”), which is currently one percent based on the Company’s debt rating or (b) a base Eurodollar rate, substantially equal to LIBOR, plus a margin (the “Applicable Margin”), which is currently two percent and is also determined by the Company’s debt rating. Swing line loans under the Credit Facility bear interest at a rate per annum equal to the “ASK” rate for Federal funds periodically published by the Dow Jones Market Service plus the Applicable Margin. Letters of credit outstanding under the Credit Facility are subject to a per annum fee, representing the Applicable Margin plus .125 percent. The Company also pays commitment fees on undrawn amounts under the Credit Facility that are determined by the Company’s debt rating (currently 0.375 percent).</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">As of June 30, 2009, the Company was in compliance with all of its debt covenants.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>Senior convertible notes.</i></b> During January 2008, the Company issued $500 million principal amount of 2.875% Convertible Senior Notes, of which $480 million remains outstanding at June 30, 2009. Effective January 1, 2009, the Company adopted the provisions of FSP APB 14-1 and, in accordance therewith, the Company applied the provisions of FSP APB 14-1 on a retrospective basis. The initial adoption of FSP APB 14-1 decreased the carrying value of the 2.875% Convertible Senior Notes by $63.5 million, increased stockholders’ equity by $39.5 million and increased deferred tax liabilities by $24.0 million. For the three and six months ended June 30, 2009, the adoption of FSP APB 14-1 increased interest expense by $3.5 million and $7.0 million and increased the Company’s net loss by approximately $2.2 million ($.02 per diluted share) and $4.4 million ($.04 per diluted share).</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 16450000 70361000 10050000 27465000 -259807000 248328000 -106197000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE N.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Volumetric Production Payments</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">During 2005, the Company sold 27.8 MMBOE of proved reserves by means of three VPP agreements for net proceeds of $892.6 million, including the assignment of the Company’s obligations under certain derivative hedge agreements. Proceeds from the VPPs were used to reduce outstanding indebtedness. The first VPP sold 58 Bcf of gas volumes over an expected five-year term that began in February 2005. The second VPP sold 10.8 MMBbls of oil volumes over an expected seven-year term that began in January 2006. The third VPP sold 6.0 Bcf of gas volumes over an expected 32-month term from May 2005 through December 2007, and 6.2 MMBbls of oil volumes over an expected five-year term that began in January 2006.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company’s VPPs represent limited-term overriding royalty interests in oil and gas reserves that: (i) entitle the purchaser to receive production volumes over a period of time from specific lease interests, (ii) are free and clear of all associated future production costs and capital expenditures associated with the reserves, (iii) are nonrecourse to the Company (i.e., the purchaser’s only recourse is to the reserves acquired), (iv) transfer title of the reserves to the purchaser and (v) allow the Company to retain the remaining reserves after the VPPs volumetric quantities have been delivered.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Under SFAS No. 19, “Financial Accounting and Reporting by Oil and Gas Producing Companies,” a VPP is considered a sale of proved reserves. As a result, the Company (i) removed the proved reserves associated with the VPPs, (ii) recognized VPP proceeds as deferred revenue which are being amortized on a unit-of-production basis to oil and gas revenues over the term of each VPP, (iii) retained responsibility for 100 percent of the production costs and capital costs related to VPP interests and (iv) no longer recognizes production associated with the VPP volumes.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table provides information about the deferred revenue carrying values of the Company’s VPPs.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="84%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="71%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Gas</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Oil</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="10"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Deferred revenue at December 31, 2008</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">49,435</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">275,706</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">325,141</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Less: 2009 amortization</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(24,514</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(49,180</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(73,694</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Deferred revenue at June 30, 2009</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,921</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">226,526</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">251,447</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The above deferred revenue amounts will be recognized in oil and gas revenues in the consolidated statements of operations as noted below, assuming the related VPP production volumes are delivered as scheduled (in thousands):</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="84%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="89%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Remaining 2009</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">74,212</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2010</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">90,215</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2011</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">44,951</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">2012</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">42,069</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">251,447</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 195223000 738543000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE A.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Organization and Nature of Operations</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Pioneer is a Delaware corporation whose common stock is listed and traded on the New York Stock Exchange. The Company is a large independent oil and gas exploration and production company with continuing operations in the United States, South Africa and Tunisia.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 24840000 -19692000 33861000 14169000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE O.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Interest and Other Income</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table provides the components of the Company’s interest and other income:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="73%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="5"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="13"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="3" height="8"></td> <td colspan="3" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Alaskan Petroleum Production Tax credits (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">87,511</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,605</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">94,989</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">17,770</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest income</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">749</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">376</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,379</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">860</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other income</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">795</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">437</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">959</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,769</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Deferred compensation plan income</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">74</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">174</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">861</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,546</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Foreign currency remeasurement and exchange gains (b)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(735</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(988</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">617</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,526</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Credit card rebate</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">204</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">285</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">453</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">554</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Change in asset retirement estimate</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,391</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Legal settlements</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,495</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total interest and other income</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">88,598</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,887</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">99,258</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">31,911</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">The Company earns Alaskan Petroleum Production Tax (“PPT”) credits on qualifying capital expenditures. The Company recognizes income from PPT credits at the time they are realized through a cash refund or sale.</font></p> </td> </tr> </tbody> </table> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(b)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">The Company’s operations in Africa periodically recognize monetary assets and liabilities in currencies other than their functional currencies. Associated therewith, the Company realizes foreign currency remeasurement and transaction gains and losses.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </p> </div> 68104000 99258000 20399000 9900000 4679000 4475000 242150000 21399000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE I.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Postretirement Benefit Obligations</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">As of June 30, 2009 and December 31, 2008, the Company had $9.4 million and $9.6 million, respectively, of unfunded accumulated postretirement benefit obligations, the current and noncurrent portions of which are included in other current liabilities and other liabilities, respectively, in the consolidated balance sheets. These obligations are comprised of five plans of which four relate to predecessor entities that the Company acquired in prior years. These plans had no assets as of June 30, 2009 or December 31, 2008. Other than participants in the Company’s retirement plan, the participants of these plans are not current employees of the Company.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table reconciles changes in the Company’s unfunded accumulated postretirement benefit obligations during the three and six months ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="74%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Beginning accumulated postretirement benefit obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,504</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,401</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,612</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,494</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Net benefit payments</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(362</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(265</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(691</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(563</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Service costs</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">57</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">47</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">114</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">95</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of interest</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">165</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">158</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">329</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">315</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ending accumulated postretirement benefit obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,364</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,341</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,364</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,341</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> -699000 0 172000000 3742000 2535000 103000000 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tbody> <tr> <td valign="top" width="9%" align="left"><font size="2" face= "Times New Roman"><b>NOTE S.</b></font></td> <td valign="top" align="left"><font size="2" face= "Times New Roman"><b>Subsequent Events</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px" align="justify"><font size="2" face="Times New Roman">In accordance with SFAS 165, the Company has evaluated subsequent events through August 7, 2009, the date of issuance of the unaudited consolidated financial statements. The Company is not aware of any reportable subsequent events through August 7, 2009, except as disclosed in Notes J and R.</font></p> </div> <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE L.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Geographic Operating Segment Information</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company’s only operations are oil and gas exploration and producing activities; however, the Company is organizationally structured along geographic operating segments or regions. The Company has reportable operations in the United States, South Africa and Tunisia.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following tables provide the Company’s geographic operating segment data for the three and six months ended June 30, 2009 and 2008. Geographic operating segment income tax (provisions) benefits have been determined based on statutory rates existing in the various tax jurisdictions where the Company has oil and gas producing activities. The “Headquarters” table column includes income and expenses that are not routinely included in the earnings measures internally reported to management on a geographic operating segment basis and operations in Equatorial Guinea and Nigeria, where the Company concluded exploration activities during 2007.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="57%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>United<br /> States</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>South Africa</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Tunisia</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Headquarters</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Consolidated<br /> Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="18"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Three Months Ended June 30, 2009</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Revenues and other income:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">314,031</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,160</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">38,501</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">370,692</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest and other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">88,598</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">88,598</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Gain on disposition of assets, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">46</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">53</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">314,038</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,160</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">38,501</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">88,644</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">459,343</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Costs and expenses:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas production</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">75,389</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">445</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,959</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">84,793</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Production and ad valorem taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23,715</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">23,715</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Depletion, depreciation and amortization</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">132,482</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,446</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,750</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,265</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">165,943</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Exploration and abandonments</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">17,978</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">195</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,244</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">201</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21,618</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">General and administrative</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">33,275</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">33,275</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of discount on asset retirement obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,753</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,753</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">43,475</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">43,475</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Hurricane activity, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,075</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,075</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Derivative losses, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">170,224</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">170,224</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,864</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,768</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">14,083</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">36,715</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">284,503</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21,086</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21,721</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">271,276</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">598,586</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations before income taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">29,535</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2,926</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,780</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(182,632</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(139,243</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income tax benefit (provision)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(10,928</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">849</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(9,638</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">64,115</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">44,398</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,607</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2,077</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,142</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(118,517</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(94,845</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="58%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>United<br /> States</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>South Africa</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Tunisia</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Headquarters</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Consolidated<br /> Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="18"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Three Months Ended June 30, 2008</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom" colspan="17"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Revenues and other income:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">521,380</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">37,985</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">75,758</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">635,123</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Derivative gains, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">881</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">881</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest and other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,887</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,887</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Gain on disposition of assets, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">515</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,386</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,901</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">521,895</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">37,985</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">75,758</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">11,154</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">646,792</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Costs and expenses:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas production</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">82,936</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,369</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,022</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">97,327</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Production and ad valorem taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">45,658</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">45,658</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Depletion, depreciation and amortization</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">96,710</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,651</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,656</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7,234</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">112,251</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Exploration and abandonments</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,302</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,887</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,916</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26,108</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">General and administrative</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">35,596</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">35,596</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of discount on asset retirement obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,961</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,961</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">41,670</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">41,670</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Hurricane activity, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,401</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,401</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,975</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,300</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,275</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">253,982</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">13,023</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">12,565</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">90,677</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">370,247</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations before income taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">267,913</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,962</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">63,193</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(79,523</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">276,545</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income tax benefit (provision)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(99,128</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(7,239</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(37,092</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">22,484</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(120,975</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">168,785</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">17,723</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26,101</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(57,039</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">155,570</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="57%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>United<br /> States</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>South Africa</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Tunisia</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Headquarters</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Consolidated<br /> Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="18"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Six Months Ended June 30, 2009</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Revenues and other income:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">641,815</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">29,965</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">66,763</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">738,543</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest and other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">99,258</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">99,258</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Gain (loss) on disposition of assets, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">7</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(69</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(62</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">641,822</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">29,965</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">66,763</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">99,189</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">837,739</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Costs and expenses:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas production</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">173,498</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,941</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">17,784</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">195,223</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Production and ad valorem taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">51,414</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">51,414</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Depletion, depreciation and amortization</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">292,451</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">37,000</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,066</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">14,570</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">354,087</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Impairment of oil and gas properties</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21,091</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">21,091</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Exploration and abandonments</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">41,369</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">289</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,549</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">581</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52,788</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">General and administrative</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">67,929</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">67,929</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of discount on asset retirement obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,505</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,505</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">84,613</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">84,613</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Hurricane activity, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,450</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">16,450</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Derivative losses, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">70,361</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">70,361</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">39,150</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,768</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">25,186</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">68,104</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">635,423</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">41,230</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">42,167</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">268,745</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">987,565</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations before income taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,399</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(11,265</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">24,596</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(169,556</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(149,826</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income tax benefit (provision)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(2,368</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,267</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(14,684</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">58,924</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">45,139</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,031</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(7,998</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,912</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(110,632</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(104,687</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="57%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>United<br /> States</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>South Africa</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Tunisia</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Headquarters</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Consolidated<br /> Total</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="18"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Six Months Ended June 30, 2008</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom" colspan="17"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Revenues and other income:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">996,984</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">67,565</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">112,617</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,177,166</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Derivative gains, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,908</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,908</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest and other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">31,911</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">31,911</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Gain on disposition of assets, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">513</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,065</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,578</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">997,497</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">67,565</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">112,617</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">37,884</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,215,563</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Costs and expenses:</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Oil and gas production</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">162,530</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">18,349</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,261</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">190,140</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Production and ad valorem taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">83,546</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">83,546</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Depletion, depreciation and amortization</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">187,924</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,043</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,377</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">14,544</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">216,888</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Exploration and abandonments</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">44,634</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">52</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">13,001</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,606</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">63,293</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">General and administrative</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">72,117</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">72,117</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Accretion of discount on asset retirement obligations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,904</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,904</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Interest</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">81,948</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">81,948</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Hurricane activity, net</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,859</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,859</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">14,836</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,354</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,190</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">495,329</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">27,444</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">27,639</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">183,473</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">733,885</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations before income taxes</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">502,168</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">40,121</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">84,978</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(145,589</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">481,678</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income tax benefit (provision)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(185,802</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(11,635</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(51,249</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">44,235</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(204,451</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Income (loss) from continuing operations</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">316,366</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">28,486</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">33,729</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(101,354</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">277,227</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="16"></td> <td colspan="4" height="16"></td> <td colspan="4" height="16"></td> <td colspan="12" height="16"></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>June 30,<br /> 2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>December 31,<br /> 2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" colspan="10" rowspan="10"><font size= "1"> </font></td> <td valign="bottom" rowspan="10"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="6"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2"><b>Segment Assets:</b></font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"></td> <td valign="bottom" colspan="5"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">United States</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,320,069</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,524,622</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">South Africa</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">207,418</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">241,619</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Tunisia</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">289,212</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">299,168</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Headquarters</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">56,143</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">96,376</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total consolidated assets</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,872,842</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">9,161,785</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> -19223000 2535000 15000000 51414000 20399000 114116000 114116000 -73695000 -66920000 -44581000 27954000 837739000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE P.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Other Expense</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table provides the components of the Company’s other expense:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="73%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="14"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Idle rig related costs (a)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">22,632</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,975</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">42,918</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">14,836</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Transportation commitment loss (b)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,781</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,781</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Contingency and environmental accrual adjustments</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">262</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">63</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">6,086</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">507</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Well servicing operations (c)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">2,391</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">895</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">5,382</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,638</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Foreign currency remeasurement and exchange losses (d)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,408</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(35</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">4,733</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">338</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Inventory impairment (e)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">433</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,603</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">  </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">866</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(882</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,345</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(357</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Bad debt expense</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(58</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,259</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(744</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">3,228</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Total other expense</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">36,715</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">8,275</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">68,104</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">20,190</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style= "MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px; WIDTH: 10%; LINE-HEIGHT: 8px; BORDER-BOTTOM: #000000 0.5pt solid">  </p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(a)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Represents stacked drilling rig costs under contractual drilling rig commitments and costs incurred to terminate contractual drilling rig commitments prior to their contractual maturities.</font></p> </td> </tr> </tbody> </table> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(b)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Primarily represents transportation contract deficiency payment obligations not supported by future production.</font></p> </td> </tr> </tbody> </table> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(c)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Represents idle well servicing costs.</font></p> </td> </tr> </tbody> </table> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(d)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">The Company’s operations in Africa periodically recognize monetary assets and liabilities in currencies other than their functional currencies. Associated therewith, the Company realizes foreign currency remeasurement and transaction gains and losses.</font></p> </td> </tr> </tbody> </table> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="4%"><font face= "Times New Roman" size="2">(e)</font></td> <td valign="top" align="left"> <p align="justify"><font face="Times New Roman" size="2">Represents impairment charges to reduce the carrying value of excess lease and well equipment and supplies inventories to their estimated net realizable values.</font></p> </td> </tr> </tbody> </table> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 354087000 19223000 -102926000 3271000 1761000 -104687000 -122618000 -4270000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE B.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Basis of Presentation</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Presentation.</i></b> In the opinion of management, the consolidated financial statements of the Company as of June 30, 2009 and for the three and six months ended June 30, 2009 and 2008 include all adjustments and accruals, consisting only of normal recurring accrual adjustments, which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These consolidated financial statements should be read in connection with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Discontinued operations.</i></b> During the three months ended June 30, 2009, the Company committed to a plan to sell its shelf properties in the Gulf of Mexico and sold its Mississippi assets. The Company completed the sale of its shelf properties in the Gulf of Mexico on August 6, 2009. In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS 144”), the Company has classified the assets and liabilities of its shelf properties in the Gulf of Mexico as discontinued operations held for sale in the accompanying consolidated balance sheet as of June 30, 2009, and reflected the results of operations of both the planned and completed divestitures as discontinued operations, rather than as a component of continuing operations. In April 2006 and November 2007, the Company completed the sale of its Argentine assets and Canadian subsidiaries. During the three and six months ended June 30, 2008, the Company continued to realize certain revenues and costs and expense increments associated with these divestitures. See Note R for additional information regarding discontinued operations.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Allowances for doubtful accounts.</i></b> As of June 30, 2009 and December 31, 2008, the Company’s allowances for doubtful accounts totaled $12.2 million and $32.4 million, respectively. In accordance with SFAS No. 5, “Accounting for Contingencies,” the Company establishes allowances for bad debts equal to the estimable portions of accounts and notes receivables for which failure to collect is considered probable. The Company estimates the portions of joint interest receivables for which failure to collect is probable based on percentages of joint interest receivables that are past due. The Company estimates the portions of other receivables for which failure to collect is probable based on the relevant facts and circumstances surrounding the receivable. Allowances for doubtful accounts are recorded as reductions to the carrying values of the receivables included in the Company’s consolidated balance sheets and as charges to other expense in the consolidated statements of operations in the accounting periods during which failure to collect an estimable portion is determined to be probable.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="92%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Three Months Ended<br /> June 30, 2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>Six Months Ended<br /> June 30, 2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="middle" colspan="6"><font face= "Times New Roman" size="1"><b>(in thousands)</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Beginning allowance for doubtful accounts balance</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">31,600</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">32,365</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Amount recorded in other expense for bad debt expense (recoveries)</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(58</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(744</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Write-offs of uncollectible accounts</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(19,337</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2"> </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">(19,416</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2">) </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td> </td> </tr> <tr> <td height="8"></td> <td colspan="4" height="8"></td> <td colspan="4" height="8"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Ending allowance for doubtful accounts balance</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">12,205</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font face="Times New Roman" size= "2">$</font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">12,205</font></td> <td valign="bottom" nowrap="nowrap"><font face="Times New Roman" size="2"> </font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td> </td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Inventories.</i></b> Inventories consisted of $219.0 million and $158.7 million of materials and supplies and $3.8 million and $8.7 million of commodities as of June 30, 2009 and December 31, 2008, respectively. The Company’s materials and supplies inventory is primarily comprised of oil and gas drilling or repair items such as tubing, casing, chemicals, operating supplies and ordinary maintenance materials and parts. The materials and supplies inventory is</font> <font face= "Times New Roman" size="2">primarily acquired for use in future drilling operations or repair operations and is carried at the lower of cost or market, on a first-in, first-out cost basis. “Market,” in the context of inventory valuation, represents net realizable value, which is the amount that the Company is allowed to charge to the joint accounts when the inventory is used in joint operations under joint operating agreements to which the Company is a party. Any valuation reserve allowances of materials and supplies inventory are recorded as reductions to the carrying values of the materials and supply inventories in the Company’s consolidated balance sheets and as charges to other expense in the accompanying consolidated statements of operations. As of June 30, 2009 and December 31, 2008, the Company’s materials and supplies inventory was net of $6.1 million and $4.7 million, respectively, of valuation reserve allowances. The Company estimated that approximately $103.7 million and $90.2 million of its June 30, 2009 and December 31, 2008 materials and supplies inventories, respectively, would not be utilized within one year based on current drilling plans. Accordingly, those inventory values have been classified as other noncurrent assets in the accompanying consolidated balance sheets.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Commodities inventories are carried at the lower of average cost or market, on a first-in, first-out basis. The Company’s commodities inventories consist of oil and natural gas liquids (“NGLs”) held in storage. Any valuation allowances of commodities inventories are recorded as reductions to the carrying values of the commodities inventories included in the Company’s consolidated balance sheets and as charges to other expense in the consolidated statements of operations. As of December 31, 2008, the Company’s commodities inventories were net of $159 thousand of valuation allowances.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Derivatives and hedging.</i></b> Prior to December 2008, the Company had elected to designate the majority of its commodity derivative instruments as cash flow hedges. During December 2008, the Company began entering into commodity derivative contracts that were not designated as hedges under SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“SFAS 133”). Changes in the fair values of non-hedge derivative instruments are recognized as gains or losses in the earnings of the period in which they occur. Effective February 1, 2009, the Company discontinued hedge accounting on all existing hedge contracts. The effective portions of the discontinued deferred hedges as of January 31, 2009 are included in accumulated other comprehensive income - deferred hedge gains, net of tax (“AOCI - Hedging”), in the stockholders’ equity section of the accompanying consolidated balance sheets, and are being reclassified to earnings during the same periods in which the hedged transactions are recognized in the Company’s earnings. For the period from February 1, 2009 through June 30, 2009, the Company recognized, and in the future will recognize, all changes in the fair values of its derivative contracts as gains or losses in the earnings of the period in which they occur.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In accordance with Financial Accounting Standards Board (“FASB”) Interpretation No. 39, “Offsetting of Amounts Related to Certain Contracts” (“FIN 39”), the Company classifies the fair value amounts of derivative assets and liabilities executed under master netting arrangements as net derivative assets or net derivative liabilities by commodity, whichever the case may be. Net derivative asset values are determined, in part, by utilization of the derivative counterparties’ credit-adjusted risk-free rate curves and net derivative liabilities are determined, in part, by utilization of the Company’s credit-adjusted risk-free rate curve. The credit-adjusted risk-free rates are based on an independent market-quoted credit default swap rate curve for the Company’s or the counterparties’ debt plus the United States Treasury Bill yield curve as of June 30, 2009.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Goodwill.</i></b> In accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” goodwill is assessed for impairment whenever events or circumstances indicate that impairment of the carrying value of goodwill is likely, but no less often than annually. If the carrying value of goodwill is determined to be impaired, it is reduced for the impaired value with a corresponding charge to pretax earnings in the period in which it is determined to be impaired. During the third quarter of 2008, the Company performed its annual assessment of goodwill impairment and determined that there was no impairment. However, as a result of commodity prices and the market capitalization of the Company declining significantly during the second half of 2008, which the Company considered an event that might indicate impairment to the carrying value of goodwill, the Company reassessed goodwill for impairment at December 31, 2008 and quarterly thereafter and determined that there was no impairment. See Note M for additional information regarding the Company’s impairment assessments.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Noncontrolling interest in consolidated subsidiaries.</i></b> The Company owns a 0.1 percent general partner interest and a 68.3 percent limited partner interest in Pioneer Southwest. Pioneer Southwest owns interests in certain oil and gas properties previously owned by the Company in the Spraberry field in the Permian Basin of West Texas. The financial position, results of operations, and cash flows of Pioneer Southwest are consolidated with those of the Company.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size= "1"> </font><font size="1"> </font></p> <!-- 9 Repeat_Hdr_End * DO NOT REMOVE OR EDIT --> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In addition to Pioneer Southwest, the Company owns the majority interests in certain other subsidiaries with operations in the United States. Noncontrolling interest in the net assets of consolidated subsidiaries totaled $89.6 million and $104.0 million as of June 30, 2009 and December 31, 2008, respectively. The Company recorded a net loss attributable to the noncontrolling interests (principally related to Pioneer Southwest) for the three months ended June 30, 2009 of $522 thousand, net income of $3.3 million for the six months ended June 30, 2009, and net income of $6.2 million and $7.0 million for the three and six months ended June 30, 2008, respectively. See “New accounting pronouncements” and “Reclassifications and retrospective adjustments” for information regarding the Company’s adoption of SFAS No. 160, “Noncontrolling Interest in Consolidated Financial Statements, an amendment of ARB Statement No. 51” (“SFAS 160”).</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Stock-based compensation.</i></b> For stock-based compensation awards, compensation expense is being recognized in the Company’s financial statements on a straight line basis over the awards’ vesting periods based on their fair values on the dates of grant. The Company utilizes (i) the Black-Scholes option pricing model to measure the fair value of stock options, (ii) the stock price on the date of grant for the fair value of restricted stock awards and (iii) the Monte Carlo simulation method for the fair value of performance unit awards.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">For the three and six month periods ended June 30, 2009, the Company recorded $9.9 million and $19.2 million of stock-based compensation costs for all plans, respectively, as compared to $8.3 million and $17.2 million for the same respective periods of 2008.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In accordance with GAAP, the Company’s issued shares, as reflected in the consolidated balance sheets at June 30, 2009 and December 31, 2008, do not include 1,021,413 and 1,078,267, respectively, of issued but unvested shares awarded under stock-based compensation plans which have voting rights.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The following table summarizes all stock-based awards, lapses and forfeitures that occurred during the six months ended June 30, 2009:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="63%"></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"><font face="Times New Roman" size= "1"><b>Restricted Stock<br /> Shares</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"><font face="Times New Roman" size="1"><b>Restricted<br /> Stock Units</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"><font face="Times New Roman" size="1"><b>Performance<br /> Units</b></font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle"><font face="Times New Roman" size= "1"><b>Stock Options</b></font></td> </tr> <tr> <td height="8"></td> <td colspan="2" height="8"></td> <td colspan="2" height="8"></td> <td colspan="2" height="8"></td> <td colspan="2" height="8"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Awards</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">378,497</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">1,622,152</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">189,247</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">361,021</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Lapsed restrictions</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">424,453</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">144,578</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Exercises</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">131,911</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font face= "Times New Roman" size="2">Forfeitures</font></p> </td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">10,898</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">26,511</font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">—  </font></td> <td valign="bottom"><font size="1">  </font></td> <td valign="bottom" align="right"><font face="Times New Roman" size="2">99,118</font></td> </tr> <!-- 6 Last_Row * DO NOT REMOVE OR EDIT --></tbody> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">As of June 30, 2009, there was approximately $65.0 million of unrecognized compensation expense related to unvested share-based compensation plan awards, related to restricted stock, restricted stock units, performance unit awards and stock options. This compensation will be recognized over the remaining vesting periods of the awards, which on a weighted average basis is a period of less than three years.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2"><b><i>New accounting pronouncements.</i></b> In September 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 157, “Fair Value Measures” (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measures required under other accounting pronouncements, but does not change existing guidance as to whether or not an instrument is carried at fair value. During February 2008, the FASB issued FASB Staff Position No. 157-2, “FSP FAS 157-2” (“FSP FAS 157-2”). FSP FAS 157-2 delayed the effective date of SFAS 157 for nonfinancial assets and nonfinancial liabilities until fiscal years beginning after November 15, 2008, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis at least annually. On January 1, 2009, the Company adopted the remaining provisions of SFAS 157, for which delayed adoption was provided under FSP FAS 157-2.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations” (“SFAS 141(R)”). SFAS 141(R) replaces SFAS 141 and provides greater consistency in the accounting and financial reporting of business</font> <font face= "Times New Roman" size="2">combinations. SFAS 141(R) requires the acquiring entity in a business combination to recognize all assets acquired and liabilities assumed in the transaction and any noncontrolling interest in the acquired entity at the acquisition date, measured at their fair values as of the date that the acquirer achieves control over the business acquired. This includes the measurement of the acquirer’s shares issued in consideration for a business combination, the recognition of contingent consideration, the recognition of pre-acquisition contractual and certain non-contractual gain and loss contingencies, the recognition of capitalized research and development costs and the recognition of changes in the acquirer’s income tax valuation allowance and deferred taxes. The provisions of SFAS 141(R) also require that restructuring costs resulting from the business combination that the acquirer expects but is not required to incur and costs incurred to effect the acquisition be recognized separate from the business combination. SFAS 141(R) is effective for fiscal years and interim periods within those fiscal years, beginning on or after December 15, 2008, and is to be applied prospectively as of the beginning of the fiscal year in which the statement is applied. The Company became subject to the provisions of SFAS 141(R) on January 1, 2009.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In December 2007, the FASB issued SFAS 160. SFAS 160 amends Accounting Research Bulletin (“ARB”) No. 51, “Consolidated Financial Statements,” to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS 160 clarifies that a noncontrolling interest in a subsidiary, which is sometimes referred to as minority interest, is an ownership interest in the consolidated entity that should be reported as a component of equity in the consolidated financial statements. Among other requirements, SFAS 160 requires consolidated earnings to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. The Company adopted the provisions of SFAS 160 on January 1, 2009.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133” (“SFAS 161”). SFAS 161 changes the disclosure requirements for derivative instruments and hedging activities by requiring entities to provide enhanced disclosures about (i) how and why an entity uses derivative instruments, (ii) how derivative instruments and related hedged items are accounted for under SFAS 133 and (iii) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. SFAS 161 was adopted by the Company on January 1, 2009. See Note G for disclosures about the Company’s derivative instruments and hedging activities.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In May 2008, the FASB issued FASB Staff Position No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)” (“FSP APB 14-1”). FSP APB 14-1 specifies that issuers of such instruments should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. The Company adopted the provisions of FSP APB 14-1 on January 1, 2009. The adoption of FSP APB 14-1 increases the annual interest expense that the Company recognizes on its $480 million of 2.875% convertible senior notes due 2038 (“2.875% Convertible Senior Notes”) from an annual yield of 2.875 percent to 6.75 percent, the annual yield equivalent to a nonconvertible debt borrowing at the time of issuance. The adoption of FSP APB 14-1 also resulted in the reclassification of the estimated issuance date fair value of the 2.875% Convertible Senior Notes conversion privilege from long-term debt to shareholders’ equity in the accompanying consolidated balance sheets. See “Reclassifications and retrospective adjustments” and Note F for additional information regarding the Company’s adoption of FSP APB 14-1.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In June 2008, the FASB issued FASB Staff Position No. EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” (“FSP EITF 03-6-1”), which addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the net income (loss) allocation in computing basic and diluted earnings per share under the two class method prescribed under SFAS 128, “Earnings per Share”. The Company adopted the provisions of FSP EITF 03-6-1 on January 1, 2009 and, in accordance with FSP EITF 03-6-1, applied its provisions retrospectively to prior-period earnings per share computations. See Note K for additional information regarding the Company’s basic and diluted earnings per share computations for the three and six months ended June 30, 2009 and 2008.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In December 2008, the SEC released Final Rule, “Modernization of Oil and Gas Reporting” (the “Reserve Ruling”). The Reserve Ruling revises oil and gas reporting disclosures. The Reserve Ruling also permits the use of new technologies to determine proved reserves if those technologies have been demonstrated empirically to lead to reliable conclusions about reserves volumes. The Reserve Ruling will also allow companies to disclose their probable</font> <!-- 28 Begin_Flowing_Text * DO NOT REMOVE OR EDIT --><font face= "Times New Roman" size="2">and possible reserves to investors. In addition, the new disclosure requirements require companies to: (i) report the independence and qualifications of its reserves preparer or auditor, (ii) file reports when a third party is relied upon to prepare reserves estimates or conduct a reserves audit and (iii) report oil and gas reserves using an average price based upon the prior 12-month period rather than a year-end price. The Reserve Ruling becomes effective for annual reports on Forms 10-K for fiscal years ending on or after December 31, 2009. During February 2009, the FASB announced a project to amend SFAS No. 19, “Financial Accounting and Reporting by Oil and Gas Producing Companies” (“SFAS 19”) to conform to the Reserve Ruling. The Company is currently assessing the impact that adoption of the provisions of the Reserve Ruling will have on its financial position, results of operations and disclosures.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">In April 2009, the FASB issued FASB Staff Position No. FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP FAS 107-1”), which amends FASB Statement No. 107, “Disclosures about Fair Value of Financial Instruments” and Accounting Principles Board Opinion No. 28, “Interim Financial Reporting”. FSP FAS 107-1 requires fair value disclosures by publicly traded companies of financial instruments for interim reporting purposes. FSP FAS 107-1 was adopted by the Company during the second quarter of 2009. See Note D for disclosures about the fair values of the Company’s financial instruments.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size= "2"><b><i>Reclassifications and retrospective adjustments.</i></b> Certain reclassifications have been made to the 2008 amounts in order to conform to the 2009 presentation and for the retrospective application of the adoption of SFAS 160. The retrospective application of SFAS 160 resulted in the reclassification of $59.2 million from minority interest in consolidated subsidiaries and $44.8 million from AOCI - Hedging to Noncontrolling interest in consolidated subsidiaries at December 31, 2008. In addition, the adoption of FSP APB 14-1 and FSP EITF 03-6-1 required retrospective adjustments to the Company’s financial statements as of December 31, 2008 and the three and six months ended June 30, 2008. The retrospective adjustments related to the adoption of FSP APB 14-1 decreased the Company’s net income attributable to common stockholders by $2.1 million (approximately $.02 per diluted share) and $3.9 million (approximately $.03 per diluted share), respectively, for the three and six months ended June 30, 2008. The retrospective application of FSP APB 14-1 also increased additional paid-in capital by $49.5 million and decreased retained earnings by $10.0 million as of December 31, 2008. The retrospective application of the provisions of FSP EITF 03-6-1 to the reported per-share amounts of the three and six months ended June 30, 2008 reduced the Company’s diluted earnings of each period by approximately $.01 per share, exclusive of the effects from the adoption of FSP APB 14-1.</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 18px; MARGIN-BOTTOM: 0px">  </p> </div> 150000 <div> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tbody> <tr> <td valign="top" align="left" width="9%"><font face= "Times New Roman" size="2"><b>NOTE K.</b></font></td> <td valign="top" align="left"><font face="Times New Roman" size= "2"><b>Earnings Per Share From Continuing Operations</b></font></td> </tr> </tbody> </table> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">Basic earnings per share from continuing operations is computed by dividing earnings from continuing operations attributable to common stockholders by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share from continuing operations reflects the potential dilution that could occur if securities or other contracts to issue common stock that are dilutive to income from continuing operations were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Company. During periods that the Company realizes a loss from continuing operations attributable to common stockholders, securities or other contracts to issue common stock would not be dilutive to loss per share and conversion into common stock is assumed not to occur.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%" align="justify"><font face="Times New Roman" size="2">The Company’s earnings from continuing operations attributable to common stockholders is computed as income (loss) from continuing operations less participating share-based earnings. The following table is a reconciliation of the Company’s income (loss) from continuing operations to income (loss) from continuing operations attributable to common stockholders for the three- and six-month periods ended June 30, 2009 and 2008:</font></p> <p style="MARGIN-TOP: 0px; FONT-SIZE: 12px; MARGIN-BOTTOM: 0px">  </p> <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"><!-- 5 First_Row * DO NOT REMOVE OR EDIT --> <tbody> <tr> <td width="69%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1"> </font></td> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Three Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="6"><font face="Times New Roman" size="1"><b>Six Months Ended<br /> June 30,</b></font></td> <td valign="bottom"><font size="1"> </font></td> </tr> <tr> <td valign="bottom"><font size="1">  </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2009</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align= "middle" colspan="2"><font face="Times New Roman" size= "1"><b>2008</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font size="1"> </font></td> <td style="BORDER-BOTTOM: #000000 1px solid"