0000950134-09-004050.txt : 20120723 0000950134-09-004050.hdr.sgml : 20120723 ACCESSION NUMBER: 0000950134-09-004050 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 19 CONFORMED PERIOD OF REPORT: 20090227 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090227 DATE AS OF CHANGE: 20090227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SANDRIDGE ENERGY INC CENTRAL INDEX KEY: 0001349436 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 208084793 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33784 FILM NUMBER: 09644438 BUSINESS ADDRESS: STREET 1: 1601 NW EXPRESSWAY STREET 2: SUITE 1600 CITY: OKLAHOMA CITY STATE: OK ZIP: 73118 BUSINESS PHONE: 405-753-5500 MAIL ADDRESS: STREET 1: 1601 NW EXPRESSWAY STREET 2: SUITE 1600 CITY: OKLAHOMA CITY STATE: OK ZIP: 73118 FORMER COMPANY: FORMER CONFORMED NAME: RIATA ENERGY INC DATE OF NAME CHANGE: 20060111 8-K 1 d66597e8vk.htm FORM 8-K e8vk
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 2009 (February 27, 2009)
SANDRIDGE ENERGY, INC.
(Exact name of registrant as specified in its charter)
         
Delaware   1-33784   20-8084793
(State or Other Jurisdiction of   (Commission File Number)   (I.R.S. Employer
Incorporation or Organization)       Identification No.)
     
123 Robert S. Kerr Avenue   73102
Oklahoma City, Oklahoma   (Zip Code)
(Address of Principal Executive Offices)    
Registrant’s Telephone Number, including Area Code: (405) 429-5500
Not Applicable.
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 8.01 Other Events.
SandRidge Energy, Inc.’s (“SandRidge”) Annual Report on Form 10-K for the year ended December 31, 2008 (the “Form 10-K”), which was filed on February 26, 2009, indicated in its Exhibit List that certain XBRL (eXtensible Business Reporting Language) files were attached thereto. Such XBRL files were not attached to the Form 10-K.
Attached as Exhibit 100 to this Current Report on Form 8-K are the following materials from the Form 10-K, formatted in XBRL: (i) Consolidated Statements of Operations (Income); (ii) Consolidated Balance Sheets; (iii) Consolidated Statements of Cash Flows; (iv) Statement of Shareholders Equity and Other Comprehensive Income; (v) Consolidated Statements of Changes in Stockholders’ Equity; and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text. Users of this data are advised pursuant to Rule 401 of Regulation S-T that the financial information contained in the XBRL documents is unaudited, and these are not the official publicly-filed financial statements of SandRidge. Investors should continue to rely on the official filed version of the furnished documents and not rely on this information in making investment decisions.
In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including Exhibit 100 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
     
Exhibit No.   Description
100.INS
  XBRL Instance Document
100.SCH
  XBRL Taxonomy Extention Schema Document
100.CAL
  XBRL Taxonomy Extension Calculation Linkbase Document
100.LAB
  XBRL Taxonomy Extension Label Linkbase Document
100.PRE
  XBRL Taxonomy Extension Presentation Linkbase Document
100.DEF
  XBRL Taxonomy Extension Definition Linkbase Document


 

SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
 

SANDRIDGE ENERGY, INC.
(Registrant)
 
 
Date: February 27, 2009  By:   /s/ Dirk M. Van Doren    
    Dirk M. Van Doren   
    Executive Vice President and Chief
Financial Officer
 
 

 


 

         
EXHIBIT INDEX
     
Exhibit No.   Description
 
   
100.INS
  XBRL Instance Document
 
   
100.SCH
  XBRL Taxonomy Extention Schema Document
 
   
100.CAL
  XBRL Taxonomy Extension Calculation Linkbase Document
 
   
100.LAB
  XBRL Taxonomy Extension Label Linkbase Document
 
   
100.PRE
  XBRL Taxonomy Extension Presentation Linkbase Document
 
   
100.DEF
  XBRL Taxonomy Extension Definition Linkbase Document

 

EX-100.INS 2 sd-20081231.xml INSTANCE DOCUMENT 0001349436 us-gaap:TreasuryStockMember 2006-01-01 2006-12-31 0001349436 us-gaap:CommonStockMember 2006-01-01 2006-12-31 0001349436 us-gaap:TreasuryStockMember 2008-12-31 0001349436 us-gaap:RetainedEarningsMember 2008-12-31 0001349436 us-gaap:CommonStockMember 2008-12-31 0001349436 us-gaap:AdditionalPaidInCapitalMember 2008-12-31 0001349436 us-gaap:TreasuryStockMember 2007-12-31 0001349436 us-gaap:RetainedEarningsMember 2007-12-31 0001349436 us-gaap:CommonStockMember 2007-12-31 0001349436 us-gaap:AdditionalPaidInCapitalMember 2007-12-31 0001349436 us-gaap:TreasuryStockMember 2006-12-31 0001349436 us-gaap:RetainedEarningsMember 2006-12-31 0001349436 us-gaap:CommonStockMember 2006-12-31 0001349436 us-gaap:AdditionalPaidInCapitalMember 2006-12-31 0001349436 us-gaap:TreasuryStockMember 2005-12-31 0001349436 us-gaap:RetainedEarningsMember 2005-12-31 0001349436 us-gaap:CommonStockMember 2005-12-31 0001349436 us-gaap:AdditionalPaidInCapitalMember 2005-12-31 0001349436 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2005-12-31 0001349436 us-gaap:RetainedEarningsMember 2008-01-01 2008-12-31 0001349436 us-gaap:RetainedEarningsMember 2007-01-01 2007-12-31 0001349436 us-gaap:RetainedEarningsMember 2006-01-01 2006-12-31 0001349436 2006-12-31 0001349436 2005-12-31 0001349436 us-gaap:CommonStockMember 2008-01-01 2008-12-31 0001349436 us-gaap:CommonStockMember 2007-01-01 2007-12-31 0001349436 us-gaap:TreasuryStockMember 2008-01-01 2008-12-31 0001349436 us-gaap:AdditionalPaidInCapitalMember 2008-01-01 2008-12-31 0001349436 us-gaap:TreasuryStockMember 2007-01-01 2007-12-31 0001349436 us-gaap:AdditionalPaidInCapitalMember 2007-01-01 2007-12-31 0001349436 us-gaap:AdditionalPaidInCapitalMember 2006-01-01 2006-12-31 0001349436 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2006-01-01 2006-12-31 0001349436 2007-01-01 2007-12-31 0001349436 2006-01-01 2006-12-31 0001349436 2007-12-31 0001349436 2008-12-31 0001349436 2008-01-01 2008-12-31 iso4217:USD xbrli:shares <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Billings in Excess of Costs Incurred</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In June 2008, the Company entered into an agreement with a subsidiary of Occidental Petroleum Corporation (&#147;Occidental&#148;) to construct a CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> treating plant (the &#147;Century Plant&#148;) and associated compression and pipeline facilities for $800.0&#160;million. Occidental will pay a minimum of 100% of the contract price, plus any subsequent <FONT style="white-space: nowrap">agreed-upon</FONT> revisions, to the Company through periodic cost reimbursements based upon the percentage of the project completed. Upon <FONT style="white-space: nowrap">start-up,</FONT> the Century Plant, located in Pecos County, Texas, will be owned and operated by Occidental for the purpose of separating and removing CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> from delivered natural gas. The Company will deliver high CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> natural gas to the Century Plant. Pursuant to a <FONT style="white-space: nowrap">30-year</FONT> treating agreement executed simultaneously with the construction agreement, Occidental will remove CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> from the Company&#146;s delivered natural gas. The Company will retain all methane gas from the Century Plant and its other existing plants. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company accounts for construction of the Century Plant using the completed-contract method, under which contract revenues and costs are recognized when work under the contract is completed or substantially completed. In the interim, costs incurred on and billings related to contracts in process are accumulated on the balance sheet. Provisions for a contract loss are recognized when it is determined that a loss will be incurred. During 2008, the Company issued and received payment for progress billings totaling $112.0&#160;million. Billings in excess of costs incurred during 2008 were $14.1&#160;million and were reported as a current liability in the consolidated balance sheet at December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Other Current Assets</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Other current assets consist of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="81%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Prepaid insurance </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9,374 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9,379 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Prepaid drilling </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,657 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,924 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Materials and supplies </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,751 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deposits </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 26,806 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 60 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,415 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 673 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 41,407 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 20,787 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">13.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Other Long-Term Obligations</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has recorded a long-term obligation for amounts to be paid under a settlement agreement with Conoco, Inc. entered into in January 2007. The Company agreed to pay approximately $25.0&#160;million plus interest, payable in $5.0&#160;million increments on April&#160;1, 2007, July&#160;1, 2008, July&#160;1, 2009, July&#160;1, 2010 and July&#160;1, 2011. The payment made on July&#160;1, 2008 was included in accounts payable-trade in the consolidated balance sheet as of December&#160;31, 2007, and the payment to be made on July&#160;1, 2009 has been included in accounts payable-trade in the consolidated balance sheet as of December&#160;31, 2008. The non-current unpaid settlement amounts of $10.0&#160;million and $15.0&#160;million have been included in other long-term obligations in the consolidated balance sheets as of December&#160;31, 2008 and December&#160;31, 2007, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Restricted Deposits</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Restricted deposits represent bank trust and escrow accounts required by the Minerals Management Service of the United States Department of the Interior, surety bond underwriters, purchase agreements or other settlement agreements to satisfy the Company&#146;s eventual responsibility to plug and abandon wells and remove structures when certain offshore fields are no longer in use. These restricted deposits relate to properties acquired as part of the NEG acquisition in November 2006. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> One of the agreements requires the Company to deposit additional funds in an escrow account equal to 10% of the net proceeds, as defined, from certain of its offshore properties. In 2007, the Company was released from obligations under two of the escrow agreements. As a result, funds totaling $10.3&#160;million were released from escrow accounts and returned to the Company. During 2008 and 2007, the Company deposited approximately $0.8&#160;million and $7.4&#160;million, respectively, in escrow accounts. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Accounts Payable and Accrued Expenses</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Trade accounts payable and accrued expenses consist of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts payable </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 302,407 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 154,423 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Redeemable convertible preferred stock dividends </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Payroll and benefits </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,703 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,690 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Drilling advances </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,074 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,817 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Settlement agreement&#160;&#151;&#160;current (See Note&#160;12) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accrued interest </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 26,790 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 24,201 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,363 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,410 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total trade accounts payable and accrued expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 366,337 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,497 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <!-- NOTE 2 --> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Acquisitions and Dispositions</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">2006 Acquisitions and Dispositions</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company closed the following acquisitions in 2006: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In March 2006, the Company acquired from an executive officer and director an additional 12.5% interest in PetroSource Energy Company, LLC (&#147;PetroSource&#148;), a consolidated subsidiary. The acquisition consisted of the retirement of subordinated debt of approximately $1.0&#160;million and a $4.5&#160;million cash payment for the ownership interest acquired for a total acquisition price of approximately $5.5&#160;million. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In May 2006, the Company purchased certain leases in developed and undeveloped properties from an oil and gas company. The purchase price was approximately $40.9&#160;million in cash. The cash consideration was paid in July 2006. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In May 2006, the Company purchased several natural gas and crude oil properties from an oil and gas company. The purchase price was approximately $12.9&#160;million, comprised of $8.2&#160;million in cash, and 251,351&#160;shares of Company common stock, valued at $4.7&#160;million. The cash and equity consideration were paid in July 2006. </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In June 2006, the Company purchased certain producing well interests from an executive officer and director. The purchase price was approximately $9.0&#160;million in cash. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In June 2006, the Company acquired the remaining 1% interest in PetroSource from an oil and gas company. The purchase price was 27,749&#160;shares of Company common stock, valued at $0.5&#160;million. As a result of this acquisition, the Company became the 100% owner of PetroSource. </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The 2006 acquisitions described above were financed with approximately $63.7&#160;million in cash and the issuance of 279,100&#160;shares of common stock with an aggregate value of approximately $5.1&#160;million. Details are set forth below for each of the acquisition transactions (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="43%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="10%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=06 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=06 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=06 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=06 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=07 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=07 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=07 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=07 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consideration Paid</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Addition to<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Change in<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Retirement<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Common<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Property, Plant<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Minority<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>of Subordinated<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Stock No.<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Common<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Acquisition Transaction</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>&#038;Equipment</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Interest</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Debt(1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>of Shares</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Stock</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Cash</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> PetroSource additional interests </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,116 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,370 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,003 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5,489 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Purchased leases </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,960 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,960 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil properties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,850 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 251 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,650 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,200 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Producing well interest from executive officer and director </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 9,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 9,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> PetroSource additional interest (remaining 1% interest) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 85 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (393 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 478 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Totals </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 65,011 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,763 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,003 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 279 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5,128 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,649 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Includes retirement of subordinated debt of $972,000 and accrued interest of $31,000.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In July 2006, the Company sold leaseholds and lease and well equipment for $16.0&#160;million. The book basis of the assets at the time of the sale transaction was $3.7&#160;million resulting in a gain of $12.3&#160;million. The sale was accounted for as an adjustment to the full cost pool, with no gain recognized. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In November 2006, the Company acquired all of the outstanding membership interests in NEG Oil&#160;&#038; Gas LLC (&#147;NEG&#148;) for approximately $990.4&#160;million in cash, the assumption of $300.0&#160;million in debt, the receipt of cash of $21.1&#160;million and the issuance of 12,842,000&#160;shares of the Company&#146;s common stock, valued at approximately $231.2&#160;million. To finance the NEG acquisition, the Company entered into a $750.0&#160;million senior secured credit facility and an $850.0&#160;million senior unsecured bridge loan facility. The Company also issued $550.0&#160;million of redeemable convertible preferred stock and common units, consisting of shares of common stock and a warrant to purchase convertible preferred stock upon the surrender of the common stock, in a private placement to certain eligible purchasers. </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In the fourth quarter of 2007, the Company completed its valuation of assets acquired and liabilities assumed related to the NEG acquisition and allocated the appropriate fair values. Upon further refinement of the appraisal values, the Company increased its values assigned to the properties acquired and reduced the value assigned to goodwill of $26.2&#160;million. The allocation of the purchase price to specific assets and liabilities were based, in part, upon an appraisal of the fair value of NEG assets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table presents the final NEG acquisition purchase price allocation, including professional fees and other related acquisition costs, to the net assets acquired and liabilities assumed, based on the fair values at the acquisition date and including subsequent adjustments to the purchase price allocation (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="88%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,100 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts receivable </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30,840 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,025 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Property, plant and equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,524,072 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Restricted deposits </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,987 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 270 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,614,294 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts payable and other current liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46,082 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,189 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 281,641 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other long-term obligations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,357 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,343 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,242,682 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less: Cash and cash equivalents acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (21,100 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net amount paid for acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,221,582 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Pro Forma Information</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The unaudited financial information in the table below summarizes the combined results of operations of SandRidge and NEG, on a pro forma basis, as though the companies had been combined as of January&#160;1, 2006. The pro forma financial information is presented for informational purposes only and does not necessarily reflect the results of operations that would have been achieved if the acquisition had taken place on January&#160;1, 2006 or the results that may occur in the future. The pro forma adjustments include estimates and assumptions based on currently available information. The Company believes the estimates and assumptions are reasonable, and the significant effects of the transactions are properly reflected. However, actual results may have differed materially from this pro forma financial information. The following table presents the actual results for the year ended December&#160;31, 2006 and the respective unaudited pro forma information to reflect the NEG acquisition (in thousands, except per share amounts): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>Year Ended December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Actual</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Pro Forma</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>(Unaudited)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 388,242 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 565,256 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15,621 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 36,337 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Basic and diluted earnings per share available to common stockholders: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.21 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.40 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net income available to common stockholders </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.16 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.04 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">2007 Acquisitions</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company closed the following acquisitions in 2007: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In October 2007, the Company purchased developed and undeveloped properties located in West Texas from an oil and gas company. The purchase price was approximately $73.8&#160;million, comprised of $25.0&#160;million in cash and a $48.8&#160;million note payable. The $25.0&#160;million cash consideration paid was funded through a draw on the Company&#146;s senior credit facility. All principal and accrued interest (accruing at 7% annually) due on the note payable were repaid in November 2007 with proceeds from the Company&#146;s initial public offering of its common stock. For additional discussion of the Company&#146;s initial public offering, refer to Note&#160;20 herein. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In November 2007, the Company purchased a gas treatment plant and related gathering system located in Pecos County, Texas. The purchase price of approximately $10.0&#160;million was paid in cash. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In November 2007, the Company purchased leasehold acreage and producing well interests located predominantly in the West Texas Overthrust (&#147;WTO&#148;) from a group of entities controlled by a significant shareholder. The purchase price of approximately $32.0&#160;million was paid in cash. </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">2008 Acquisitions and Dispositions</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company closed the following acquisitions and dispositions in 2008: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In May 2008, the Company sold all of its assets located in the Piceance Basin of Colorado. Assets sold included undeveloped acreage, working interests in wells, gathering and compression systems and other facilities related to the wells. Net proceeds to the Company were approximately $147.2&#160;million after closing adjustments. The portion of the Company&#146;s net proceeds attributable to the disposed gathering and compression systems and facilities exceeded the book basis of those assets resulting in a gain on sale of approximately $7.2&#160;million after closing adjustments. The sale of the acreage and working interests in wells was accounted for as an adjustment to the full cost pool with no gain or loss recognized. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In July 2008, the Company purchased land, minerals, developed and undeveloped leasehold and interests in producing properties through various transactions for an aggregate purchase price of approximately $67.6&#160;million, which was paid in cash. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In October 2008, the Company purchased certain working interests and related reserves in Company wells owned by the Company&#146;s Chairman and Chief Executive Officer and certain of his affiliates. The purchase price of approximately $67.3&#160;million, after closing adjustments, was paid in cash. </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">18.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Commitments and Contingencies</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Operating Leases.</I>&#160;&#160;The Company has obligations under noncancelable operating leases, primarily for the use of office space. Total rental expense under operating leases for the years ended December&#160;31, 2008, 2007 and 2006 was approximately $2.4&#160;million, $2.3&#160;million and $1.1&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Future minimum lease payments under noncancelable operating leases (with initial lease terms in excess of one year) as of December&#160;31, 2008 are as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="92%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Years ending December 31: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,083 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 239 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 224 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2012 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 113 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2013 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 116 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Thereafter </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 48 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,823 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Rig Commitments.</I>&#160;&#160;The Company has contracts with third-party drilling rig operators for the use of their rigs at specified day rates. These commitments are not recorded in the consolidated balance sheets. Minimum future commitments as of December&#160;31, 2008 are $15.8&#160;million for 2009 and $1.2&#160;million for 2010. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Firm Transportation.</I>&#160;&#160;The Company has subscribed firm gas transportation service under two Transportation Service Agreements (TSA). The TSA terms run through 2012 on the Oasis Pipeline and through 2018 on the Midcontinent Express Pipeline. These commitments are not recorded in the consolidated balance sheets. Under the terms of the TSAs, the Company is obligated to pay a demand charge and in exchange, obtains the right to flow natural gas production through these pipelines to more competitive marketing areas. The amounts of the required payments for firm transportation as of December&#160;31, 2008 were as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="90%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Years ending December 31: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 22,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,195 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,320 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2012 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,406 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2013 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,392 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Thereafter </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84,688 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 231,811 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Litigation.</I>&#160;&#160;The Company is a defendant in lawsuits from time to time in the normal course of business. In management&#146;s opinion, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on the financial condition, operations or cash flows of the Company. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Loan to Equity Investee.</I>&#160;&#160;The Company, through its subsidiary Lariat, has entered into a revolving promissory note with Larclay for an aggregate principal amount of up to $15.0&#160;million. See Notes&#160;8 and 21. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">14.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Derivatives</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has entered into various derivative contracts including fixed price swaps, collars and basis swaps with counterparties. The contracts expire on various dates through December&#160;31, 2011. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> A counterparty to one of the Company&#146;s derivative contracts, Lehman Brothers, declared bankruptcy on October&#160;3, 2008. Due to Lehman Brothers&#146; bankruptcy and the declaration of bankruptcy by its parent, Lehman Brothers Holdings, Inc., on September&#160;15, 2008, the Company has not assigned any value to this derivative contract as of December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> At December&#160;31, 2008, the Company&#146;s open natural gas and crude oil commodity derivative contracts consisted of the following: </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Natural Gas</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="76%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Notional<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted Avg.<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Period and Type of Contract</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(MMcf)(1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fixed Price</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2009&#160;&#151; March 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,700 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9.14 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,300 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2009&#160;&#151; June 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,930 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7.96 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,470 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2009&#160;&#151; September 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,710 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.09 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,640 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2009&#160;&#151; December 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,400 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.54 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,640 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2010&#160;&#151; March 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,875 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.08 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,400 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2010&#160;&#151; June 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7.38 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,560 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2010&#160;&#151; September 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7.61 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,720 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2010&#160;&#151; December 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.03 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,720 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2011&#160;&#151; March 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2011&#160;&#151; June 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,365 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2011&#160;&#151; September 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,380 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2011&#160;&#151; December 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,380 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Assumes ratio of 1:1 for Mcf to MMBtu and excludes a total notional of 7,300&#160;MMcf from 2009 for the Lehman Brothers&#146; basis swap contract.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Crude Oil</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="76%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Notional<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted Avg.<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Period and Type of Contract</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(in MBbls)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fixed Price</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2009&#160;&#151; March 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.38 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2009&#160;&#151; June 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.71 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2009&#160;&#151; September 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.61 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2009&#160;&#151; December 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.51 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> These derivatives have not been designated as hedges. The Company records all derivatives in the consolidated balance sheets at fair value. Changes in derivative fair values are recognized in earnings. Cash settlements and valuation gains and losses are included in (gain) loss on derivative contracts in the consolidated statements of operations. The following table summarizes the cash settlements and valuation gains and losses on the commodity derivative contracts for the years ended December 31 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="67%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Realized loss (gain) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 12,981 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (34,494 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (14,169 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unrealized (gain) loss </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (224,420 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (26,238 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,878 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> (Gain) loss on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (211,439 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (60,732 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (12,291 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In January 2008, the Company entered into an interest rate swap to fix the variable LIBOR interest rate on its floating rate senior term loan at 6.26% per annum for the period April&#160;1, 2008 to April&#160;1, 2011. Due to the exchange of the floating rate senior term loan for Senior Floating Rate Notes, the interest rate swap is now being used to fix the variable LIBOR interest rate on the Senior Floating Rate Notes at 6.26% per annum through April 2011. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> An unrealized loss of $8.7&#160;million and realized gains of $1.3&#160;million related to the interest rate swap were included in interest expense in the consolidated statement of operations for the year ended December&#160;31, 2008. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Investment in Affiliated Companies</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company accounts for certain investments under the equity method when the Company owns more than 20% and has significant influence, but does not control the investee company. The Company&#146;s equity method investments include the following: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Grey Ranch, L.P.</I>&#160;&#160;Grey Ranch, L.P. (&#147;Grey Ranch&#148;) is primarily engaged in treating and transportation of natural gas. The Company purchased its investment during 2003. At December&#160;31, 2008 and 2007, the Company owned 50% of Grey Ranch and had approximately $6.1&#160;million and $4.2&#160;million, respectively, recorded in the consolidated balance sheets relating to this investment. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Larclay, L.P.</I>&#160;&#160;The Company and Clayton Williams Energy, Inc. (&#147;CWEI&#148;) each own a 50% interest in Larclay, L.P. (&#147;Larclay&#148;), a limited partnership formed to acquire drilling rigs and provide land drilling services. The Company serves as the operations manager of the partnership. CWEI was responsible for securing financing and the purchase of the rigs. The partnership financed the acquisition cost of the rigs with a loan from a third party, secured by the purchased rigs, and a loan from CWEI. In addition, CWEI has guaranteed a portion of the third party debt. As a result of current economic conditions and the resulting on-going cash shortfalls experienced by Larclay, the Company recorded an impairment for its investment in Larclay as of December&#160;31, 2008. See Note&#160;8 for a discussion of impairment. At December&#160;31, 2007, the Company had approximately $3.8&#160;million included in the consolidated balance sheets relating to this investment. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </DIV><!-- END PAGE WIDTH --> </HTML> <!-- NOTE 3 --> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Fair Value Measurements</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Effective January&#160;1, 2008, the Company implemented SFAS&#160;No.&#160;157 for its financial assets and liabilities measured on a recurring basis. SFAS&#160;No.&#160;157 applies to all financial assets and liabilities that are measured and reported on a fair value basis. In February 2008, the FASB issued <FONT style="white-space: nowrap">FSP&#160;157-2,</FONT> which delayed the effective date of SFAS&#160;No.&#160;157 by one year for certain nonfinancial assets and liabilities. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As defined in SFAS&#160;No.&#160;157, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS&#160;No.&#160;157 requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair measurements. SFAS&#160;No.&#160;157 requires fair value measurements to be classified and disclosed in one of the following categories: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="8%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="90%">&nbsp;</TD> <!-- colindex=02 type=maindata --> </TR> <!-- Table Width Row END --> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Level&#160;1: </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="top"> Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Level&#160;2: </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="top"> Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Level&#160;3: </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="top"> Measured based on prices or valuation models that required inputs that are both significant to the fair value measurement and less observable for objective sources (i.e., supported by little or no market activity). </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As required by SFAS&#160;No.&#160;157, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company&#146;s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values, stated below, takes into account the market for the Company&#146;s financial assets and liabilities, the associated credit risk and other factors as required under SFAS&#160;No.&#160;157. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As required by SFAS&#160;No.&#160;157, the Company has classified its derivative contracts into one of three levels based upon the data relied upon to determine the fair value. The fair values of the Company&#146;s natural gas and crude oil swaps, crude oil collars and interest rate swap are based upon quotes obtained from counterparties to the derivative contracts. The Company reviews other readily available market prices for its derivative contracts as there is an active market for these contracts; however, the Company does not have access to specific valuation models used by the counterparties. Included in these models are discount factors that the Company must estimate in its calculation. Additionally, the Company applies a credit default risk rating factor for its counterparties in determining the fair value of its derivative contracts. Based on the inputs for the fair value measurement, the Company classified its derivative contract assets and liabilities as Level&#160;3. The following table summarizes the valuation of the Company&#146;s financial assets and liabilities as of December&#160;31, 2008 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="43%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="13%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fair Value Measurements Using:</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Quoted Prices in<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Significant<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Active Markets for<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Other<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Significant<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Identical Assets<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Observable<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Unobservable<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Assets/<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>or Liabilities<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Inputs<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Inputs<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(Liabilities) at<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Description</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(Level 1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(Level 2)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(Level 3)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fair Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Assets (liabilities): </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Natural gas and crude oil derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 246,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 246,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Interest rate swap </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (8,745 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (8,745 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 237,903 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 237,903 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The table below sets forth a reconciliation of the Company&#146;s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level&#160;3)&#160;during the year ended December&#160;31, 2008 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Derivatives</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Balance of Level&#160;3, December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 22,228 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total gains or losses (realized/unrealized) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 203,998 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Purchases, issuances and settlements </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,677 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Transfers in and out of Level&#160;3 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Balance of Level&#160;3, December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 237,903 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Changes in unrealized gains (losses) on derivative contracts held as of December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,675 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Impairment</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Full Cost Ceiling Limitation.</I>&#160;&#160;Under the full cost method of accounting, the net book value of oil and gas properties, less related deferred income taxes, may not exceed a calculated &#147;ceiling.&#148; The ceiling limitation is the discounted estimated after-tax future net revenue from proved natural gas and crude oil properties, excluding future cash outflows associated with settling asset retirement obligations included in the net book value of natural gas and crude oil properties, plus the cost of properties not subject to amortization. In calculating future net revenues, prices and costs used are those as of the end of the appropriate period. These prices are not changed except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. The Company has entered into various commodity derivative contracts; however, these derivative contracts are not accounted for as cash flow hedges. Accordingly, the effect of these derivative contracts has not been considered in calculating the full cost ceiling limitation as of December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The net book value, less related deferred tax liabilities, is compared to the ceiling limitation on a quarterly and annual basis. Any excess of the net book value, less related deferred taxes, is written off as an expense. An expense recorded in one period may not be reversed in a subsequent period even though higher natural gas and crude oil prices may have increased the ceiling limitation in the subsequent period. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During the fourth quarter of 2008, the Company reduced the carrying value of its oil and gas properties by $1,855.0&#160;million due to the full cost ceiling limitations. The after-tax effect of this reduction in 2008 was $1,677.5&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Larclay, L.P.</I>&#160;&#160;Lariat and CWEI each own a 50% interest in Larclay, a limited partnership formed in 2006 to acquire drilling rigs and provide land drilling services. At December&#160;31, 2008, Lariat&#146;s investment in Larclay was $4.8&#160;million. During 2008, Larclay experienced cash shortfalls as a result of its principal payments due pursuant to its rig loan agreement. As permitted under the Larclay partnership agreement, Lariat provided loans to Larclay to offset the cash shortfalls. At December&#160;31, 2008, the notes outstanding to Larclay and related interest receivable were $7.5&#160;million and $0.2&#160;million, respectively. With the significant decline in natural gas and crude oil prices in the fourth quarter of 2008, the demand for Larclay&#146;s drilling rigs and land drilling services has decreased. Due to current economic conditions, current natural gas and crude oil prices and the continued cash shortfalls for Larclay, Lariat has fully impaired both the investment in and notes receivable due from Larclay as of December&#160;31, 2008. This resulted in an impairment expense of approximately $12.5&#160;million included in the consolidated statement of operations. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">16.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Income Taxes</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. As of December&#160;31, 2008, the Company had recorded a full valuation allowance against its net deferred tax asset. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Significant components of the Company&#146;s deferred tax assets and liabilities are as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred tax liabilities: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 85,645 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8,002 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Investment in partnerships </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 933 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Property, plant&#160;&#038; equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total deferred tax liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 85,645 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 54,472 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred tax assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Property, plant and equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 559,946 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Allowance for doubtful accounts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,414 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,744 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net operating loss carryforwards-acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,622 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,397 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Investment in and notes receivable from partnerships </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,880 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Stock-based compensation </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,691 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 961 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Minimum tax credit carryforward </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,297 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 528 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,870 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,312 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total deferred tax assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 575,720 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,942 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Valuation allowance </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (490,075 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net deferred tax liability </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 47,530 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The provisions for income taxes consisted of the following components for the years ended December 31 (in&#160;thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="71%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Current: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Federal </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,235 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> State </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,665 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 601 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,653 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 9,202 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 601 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,888 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Federal </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (46,180 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,121 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 345 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> State </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,350 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 802 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (47,530 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,923 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 348 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total (benefit) provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (38,328 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 29,524 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> A reconciliation of the provision for income taxes at the statutory federal tax rates to the Company&#146;s actual provision for income taxes is as follows for the years ended December 31 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="69%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Computed at federal statutory rates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (517,863 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 27,911 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7,650 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> State taxes, net of federal benefit </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (12,153 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 912 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,724 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Nondeductible expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 312 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Percentage depletion deduction </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,488 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Change in rate </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 326 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 646 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 389 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (60 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Change in valuation allowance </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 490,075 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total (benefit) provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (38,328 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 29,524 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company, as of December&#160;31, 2008, has approximately $1.3&#160;million of alternative minimum tax credits available that do not expire. In addition, the Company has approximately $1.6&#160;million of acquired federal net operating loss carryovers that expire during the years 2022 through 2025. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> There were no uncertain income tax positions required to be recorded pursuant to FASB Interpretation No.&#160;48 &#147;Accounting for Uncertainty in Income Taxes&#160;&#151; an interpretation of FASB Statement No.&#160;109&#148; (FIN&#160;48). The Company files income tax returns in the U.S.&#160;(federal and various state jurisdictions). Tax years 1994 to present remain open for the majority of taxing authorities due to net operating loss utilization. The Company&#146;s accounting policy is to recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company does not have an accrued liability for interest or penalties at December&#160;31, 2008. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">12.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Long-Term Debt</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Long-term obligations consist of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="75%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Senior credit facility </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 573,457 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other notes payable: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling rig fleet and related crude oil field services equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 33,030 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 47,836 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Mortgage </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,829 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 19,651 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other equipment and vehicles </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 162 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 8.625%&#160;Senior Term Loan </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 650,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Senior Floating Rate Term Loan </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 350,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 8.625%&#160;Senior Notes due 2015 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 650,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Senior Floating Rate Notes due 2014 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 350,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 8.0%&#160;Senior Notes due 2018 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 750,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,375,316 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,067,649 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less: Current maturities of long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,532 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,358,784 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,052,299 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Senior Credit Facility.</I>&#160;&#160;On November&#160;21, 2006, the Company entered into a $750.0&#160;million senior secured revolving credit facility (the &#147;senior credit facility&#148;). As discussed further below, the borrowing base has been increased and was $1.1&#160;billion at December&#160;31, 2008. The senior credit facility matures on November&#160;21, 2011 and is available to be drawn on and repaid without restriction so long as the Company is in compliance with its terms, including certain financial covenants. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The senior credit facility contains various covenants that limit the ability of the Company and certain of its subsidiaries to grant certain liens; make certain loans and investments; make distributions; redeem stock; redeem or prepay debt; merge or consolidate with or into a third party; or engage in certain asset dispositions, including a sale of all or substantially all of the Company&#146;s assets. Additionally, the senior credit facility limits the ability of the Company and certain of its subsidiaries to incur additional indebtedness with certain exceptions, including under the senior notes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The senior credit facility also contains financial covenants, including maintenance of agreed upon levels for the (i)&#160;ratio of total funded debt to EBITDAX (as defined in the senior credit facility), which may not exceed 4.5:1.0 calculated using the last four completed fiscal quarters, (ii)&#160;ratio of EBITDAX to interest expense plus current maturities of long-term debt, which must be at least 2.5:1.0 calculated using the last four completed fiscal quarters, and (iii)&#160;current ratio, which must be at least 1.0:1.0. In the current ratio calculation, as defined in the senior credit facility, any amounts available to be drawn under the senior credit facility are included in current assets, and unrealized assets and liabilities resulting from mark-to-market adjustments on the Company&#146;s derivative contracts are disregarded. As of December&#160;31, 2008, the Company was in compliance with all of the financial covenants under the senior credit facility. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The obligations under the senior credit facility are guaranteed by certain Company subsidiaries. Additionally, the obligations under the senior credit facility are secured by first priority liens on all shares of capital stock of each of the Company&#146;s present and future subsidiaries; all intercompany debt of the Company; and substantially all of the Company&#146;s assets, including proved natural gas and crude oil reserves representing at least 80% of the discounted present value (as defined in the senior credit facility) of proved natural gas and crude oil reserves reviewed in determining the borrowing base for the senior credit facility. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> At the Company&#146;s election, interest under the senior credit facility is determined by reference to (i)&#160;the London Interbank Offered Rate (&#147;LIBOR&#148;) plus an applicable margin between 1.25% and 2.00% per annum or (ii)&#160;the higher of the federal funds rate plus 0.5% or the prime rate plus, in either case, an applicable margin between 0.25% and 1.00% per annum. Interest is payable quarterly for prime rate loans and at the applicable maturity date for LIBOR loans, except that if the interest period for a LIBOR loan is six months, interest is paid at the end of each three-month period. The average interest rate paid on amounts outstanding under the senior credit facility was 3.82% for the year ended December&#160;31, 2008. The interest rate on the senior credit facility was 2.19% at December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Borrowings under the senior credit facility may not exceed the lower of the borrowing base or the committed loan amount, which was increased to $1.75&#160;billion in April 2008. The borrowing base of proved reserves was initially set at $300.0&#160;million. The borrowing base was subsequently increased to $400.0&#160;million in May 2007, $700.0&#160;million in September 2007 and $1.2&#160;billion in April 2008. As a result of the private placement of $750.0&#160;million of senior notes in May 2008, discussed below, the borrowing base was reduced to $1.1&#160;billion. The Company&#146;s borrowing base is redetermined in April and October of each year based on proved reserves. Our ability to develop properties and changes in commodity prices have an impact on the borrowing base. The Company incurred additional costs related to the senior credit facility as a result of changes to the borrowing base. These costs have been deferred and are included in other assets in the consolidated balance sheets. At December&#160;31, 2008, the Company had $573.5&#160;million outstanding and approximately $494.0&#160;million available to be drawn under this facility, excluding amounts to be funded by Lehman Brothers Commodity Services, Inc. (&#147;Lehman Brothers&#148;). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On October&#160;3, 2008, Lehman Brothers, a lender under the Company&#146;s senior credit facility, filed for bankruptcy. At the time that its parent, Lehman Brothers Holdings, Inc., declared bankruptcy on September&#160;15, 2008, Lehman Brothers elected not to fund its pro rata share, or 0.29%, of borrowings requested by the Company under the senior credit facility. Accordingly, the Company does not anticipate that Lehman Brothers will fund its pro rata share of any future borrowing requests. The Company currently does not expect this reduced availability of amounts under the senior credit facility to impact its liquidity or business operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Other Indebtedness.</I>&#160;&#160;The Company has financed a portion of its drilling rig fleet and related oil field services equipment through notes. At December&#160;31, 2008, the aggregate outstanding balance of these notes was $33.0&#160;million, with annual fixed interest rates ranging from 7.64% to 8.67%. The notes have a final maturity date of December&#160;1, 2011, require aggregate monthly installments of principal and interest in the amount of $1.2&#160;million and are secured by the equipment. The notes have a prepayment penalty (currently ranging from 1% to 2%) that is triggered if the Company repays the notes prior to maturity. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On November&#160;15, 2007, the Company entered into a note payable with a lending institution in the amount of $20.0&#160;million as a mortgage on the downtown Oklahoma City property purchased by the Company in July 2007 to serve as its corporate headquarters. This note is fully secured by one of the buildings and a parking garage located on the downtown property, bears interest at 6.08% annually and matures on November&#160;15, 2022. Payments of principal and interest in the amount of approximately $0.5&#160;million are due on a quarterly basis through the maturity date. During 2008, the Company made payments of principal and interest on this note totaling $0.8&#160;million and $1.2&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Prior to 2007, the Company financed the purchase of various vehicles, oil field services equipment and other equipment through various notes payable. The aggregate outstanding balance of these notes as of December&#160;31, 2006 was $4.5&#160;million. These notes were substantially repaid during 2007. As of December&#160;31, 2008, there were no amounts outstanding under these notes. The Company financed its insurance premium payment made in 2007. Also, in 2007, the Company repaid a $4.0&#160;million loan incurred in 2005 for the purpose of completing a gas processing plant and pipeline in Colorado. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>8.625%&#160;Senior Term Loan and Senior Floating Rate Term Loan.</I>&#160;&#160;On March&#160;22, 2007, the Company issued $1.0&#160;billion of unsecured senior term loans. The closing of the senior term loans was generally contingent upon closing the private placement of common equity as described in Note&#160;20. A portion of the proceeds from the senior term loans was used to repay the Company&#146;s $850.0&#160;million senior bridge facility, described below under &#147;&#151;&#160;Senior Bridge Facility,&#148; which was repaid in full in March 2007. The senior term loans included both a floating rate term loan and a fixed rate term loan, as described below. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company issued a $350.0&#160;million senior term loan at a variable rate with interest payable quarterly and principal due on April&#160;1, 2014. The variable rate term loan bore interest, at the Company&#146;s option, at LIBOR plus 3.625% or the higher of (i)&#160;the federal funds rate, as defined, plus 3.125% or (ii)&#160;a bank&#146;s prime rate plus 2.625%. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company issued a $650.0&#160;million senior term loan at a fixed rate of 8.625% with the principal due on April&#160;1, 2015. Under the terms of the fixed rate term loan, interest was payable quarterly and during the first four years interest was payable, at the Company&#146;s option, either entirely in cash or entirely with additional fixed rate term loans. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>8.625%&#160;Senior Notes Due 2015 and Senior Floating Rate Notes Due 2014.</I>&#160;&#160;In May 2008, the Company completed an offer to exchange its senior term loans for senior unsecured notes with registration rights, as required under the senior term loan credit agreement. The Company issued $650.0&#160;million of 8.625%&#160;Senior Notes due 2015 (&#147;8.625%&#160;Senior Notes&#148;) in exchange for an equal outstanding principal amount of its fixed rate senior term loan and $350.0&#160;million of Senior Floating Rate Notes due 2014 (&#147;Senior Floating Rate Notes&#148;) in exchange for an equal outstanding principal amount of its floating rate senior term loan. The exchange was made pursuant to a non-public exchange offer that commenced on March&#160;28, 2008 and expired on April&#160;28, 2008. The newly issued senior notes have terms that are substantially identical to those of the exchanged senior term loans, except that the senior notes were issued with registration rights. These senior notes are jointly and severally, unconditionally guaranteed on an unsecured basis by all of the Company&#146;s wholly owned subsidiaries, except certain minor subsidiaries. See Note&#160;24. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In conjunction with the issuance of the senior notes, the Company agreed to file a registration statement with the SEC in connection with its offer to exchange the notes for substantially identical notes that are registered under the Securities Act of 1933, as amended (&#147;Securities Act&#148;). The Company filed a registration statement relating to the exchange offer during the third quarter of 2008, and all unregistered notes were exchanged for registered notes by October&#160;27, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The 8.625%&#160;Senior Notes bear interest at a fixed rate of 8.625% per annum with the principal due on April&#160;1, 2015. Under the terms of the 8.625%&#160;Senior Notes, interest is payable semi-annually and, through the interest payment due on April&#160;1, 2011, interest may be paid, at the Company&#146;s option, either entirely in cash or entirely with additional fixed rate senior notes. If the Company elects to pay the interest due during any period in additional fixed rate senior notes, the interest rate will increase to 9.375% during that period. All interest payments made to date related to the fixed rate senior notes have been paid in cash. The Senior Floating Rate Notes bear interest at LIBOR plus 3.625% (7.51% at December&#160;31, 2008), except for the period from April&#160;1, 2008 to June&#160;30, 2008, for which the interest rate was 6.323%. Interest is payable quarterly with principal due on April&#160;1, 2014. The average interest rate paid on amounts outstanding under the Senior Floating Rate Notes for the year ended December&#160;31, 2008 was 7.27%. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In January 2008, the Company entered into an interest rate swap to fix the variable LIBOR interest rate on the floating rate senior term loan for the period from April&#160;1, 2008 to April&#160;1, 2011. As a result of the exchange of the floating rate senior term loan to Senior Floating Rate Notes, the interest rate swap is now being used to fix the variable LIBOR interest rate on the Senior Floating Rate Notes at an annual rate of 6.26% through April 2011. This swap has not been designated as a hedge. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company may redeem some or all of the Senior Floating Rate Notes at specified redemption prices on or after April&#160;1, 2009 and may redeem some or all of the 8.625%&#160;Senior Notes at specified redemption prices on or after April&#160;1, 2011. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company incurred $26.1&#160;million of debt issuance costs in connection with the senior term loans. As the senior term loans were exchanged for senior notes with substantially identical terms, the remaining unamortized debt issuance costs on the senior term loans will be amortized over the terms of the 8.625%&#160;Senior Notes and the Senior Floating Rate Notes. These costs are included in other assets in the consolidated balance sheets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>8.0%&#160;Senior Notes Due 2018.</I>&#160;&#160;In May 2008, the Company issued $750.0&#160;million of unsecured 8.0%&#160;Senior Notes due 2018 (&#147;8.0%&#160;Senior Notes&#148;). The Company used $478.0&#160;million of the $735.0&#160;million net proceeds from the offering to repay the total balance outstanding on the senior credit facility at that time. The remaining proceeds were used to fund a portion of the Company&#146;s 2008 capital expenditure program. The notes bear interest at a fixed rate of 8.0% per annum, payable semi-annually, with the principal due on June&#160;1, 2018. The notes are redeemable, in whole or in part, prior to their maturity at specified redemption prices. The 8.0%&#160;Senior Notes are jointly and severally, unconditionally guaranteed on an unsecured basis by all of the Company&#146;s wholly owned subsidiaries, except certain minor subsidiaries. See Note&#160;24. The notes became freely tradable on November&#160;17, 2008, 180&#160;days after their issuance, pursuant to Rule&#160;144 under the Securities Act. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company incurred $16.0&#160;million of debt issuance costs in connection with the offering of the 8.0%&#160;Senior Notes. These costs are included in other assets in the consolidated balance sheet and amortized over the term of the notes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The indentures governing all of the senior notes contain financial covenants similar to those of the senior credit facility and include limitations on the incurrence of indebtedness, payment of dividends, asset sales, certain asset purchases, transactions with related parties and consolidation or merger agreements. As of December&#160;31, 2008, the Company was in compliance with all of the covenants contained in the indentures governing the senior notes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Senior Bridge Facility.</I>&#160;&#160;On November&#160;21, 2006, the Company entered into an $850.0&#160;million senior unsecured bridge facility (the &#147;senior bridge facility&#148;). Together with borrowings under the senior credit facility, the proceeds from the senior bridge facility were used to (i)&#160;partially finance the NEG acquisition, (ii)&#160;refinance the existing senior secured revolving credit facility and NEG&#146;s existing credit facility<B>, </B>and (iii)&#160;pay fees and expenses related to the NEG acquisition and the existing credit facility. The senior bridge facility was repaid in March 2007 with a portion of the proceeds from the issuance of the Company&#146;s senior term loans. The Company expensed remaining unamortized debt issuance costs related to the senior bridge facility of approximately $12.5&#160;million to interest expense in March 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Maturities of Long-Term Debt.</I>&#160;&#160;Aggregate maturities of long-term debt during the next five years are as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="88%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Years ending December 31: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 16,532 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,005 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 580,751 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2012 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,051 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2013 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,120 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Thereafter </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,763,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,375,316 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">25.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Supplemental Information on Oil and Gas Producing Activities (Unaudited)</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Supplementary Information on Oil and Gas Producing Activities is presented as required by SFAS&#160;No.&#160;69, &#147;Disclosures about Oil and Gas Producing Activities.&#148; The supplemental information includes capitalized costs related to crude oil and gas producing activities; costs incurred for the acquisition of oil and gas producing activities, exploration and development activities; and the results of operations from oil and gas producing activities. Supplemental information is also provided for per unit production costs; oil and gas production and average sales prices; the estimated quantities of proved oil and gas reserves; the standardized measure of discounted future net cash flows associated with proved oil and gas reserves; and a summary of the changes in the standardized measure of discounted future net cash flows associated with proved oil and gas reserves. </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV > <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s capitalized costs consisted of the following (in thousands): </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Capitalized Costs Related to Oil and Gas Producing Activities</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="61%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil properties: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Proved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,676,072 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,848,531 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,636,832 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Unproved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 259,610 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 282,374 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total natural gas and crude oil properties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,891,770 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,108,141 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,919,206 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less accumulated depreciation and depletion </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,369,840 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (230,974 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (60,752 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net natural gas and crude oil properties capitalized costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,521,930 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,877,167 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,858,454 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Costs Incurred in Property Acquisition, Exploration and Development Activities</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="62%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Acquisitions of properties: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Proved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 366,275 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 303,282 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,311,029 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Unproved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,982 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 268,839 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration(1) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 391,672 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 361,973 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,612 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Development </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,132,078 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 485,348 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 115,153 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total cost incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,907,007 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,150,603 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,713,633 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> 2008 and 2007 amounts include seismic costs of $68.8&#160;million and $38.6&#160;million, respectively. 2008 amount also includes pipe inventory costs of $47.2&#160;million.</TD> </TR> </TABLE> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!--DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s results of operations from oil and gas producing activities for each of the years 2008, 2007 and 2006 are shown in the following table (in thousands): </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Results of Operations for Oil and Gas Producing Activities</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="87%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>For the Year Ended December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 101,252 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 39,803 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, depletion and amortization expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,723 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 65,526 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Income before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 35,726 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,718 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Results of operations for oil and gas producing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 25,008 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>For the Year Ended December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 477,612 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 125,749 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, depletion and amortization expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 169,392 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 295,141 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Income before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 182,471 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 65,690 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Results of operations for oil and gas producing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 116,781 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>For the Year Ended December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 908,689 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 189,598 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, depletion, amortization and impairment expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,140,685 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,330,283 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Loss before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,421,594 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Benefit of income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,819 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Results of operations for oil and gas producing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,384,775 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Proved oil and gas reserves are the estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, that is, prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions. Proved developed reserves are the quantities of oil, natural gas and natural gas liquids expected to be recovered through existing investments in wells and field infrastructure under current operating conditions. Proved undeveloped reserves require additional investments in wells and related infrastructure in order to recover the production. </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The table below represents the Company&#146;s estimate of proved natural gas and crude oil reserves attributable to the Company&#146;s net interest in oil and gas properties based upon the evaluation by the Company and its independent petroleum engineers of pertinent geological and engineering data in accordance with SEC regulations. Estimates of substantially all of the Company&#146;s proved reserves have been prepared by independent reservoir engineers and geoscience professionals and are reviewed by members of the Company&#146;s senior management with professional training in petroleum engineering to ensure that the Company consistently applies rigorous professional standards and the reserve definitions prescribed by the SEC. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Netherland, Sewell&#160;&#038; Associates, Inc. and DeGolyer and MacNaughton, independent crude oil and gas consultants, have prepared the estimates of proved reserves of natural gas and oil attributable to substantially all of the Company&#146;s net interest in natural gas and crude oil properties as of the end of one or more of 2008, 2007 and 2006. Netherland, Sewell&#160;&#038; Associates, Inc. and DeGolyer and MacNaughton are independent petroleum engineers, geologists, geophysicists and petrophysicists and do not own an interest in the Company or its properties and are not employed on a contingent basis. Netherland, Sewell&#160;&#038; Associates, Inc. prepared the estimates of proved reserves for a majority of the Company&#146;s properties other than those held by SandRidge Tertiary, LLC (formerly PetroSource Production Co), which constitute approximately 90% of the Company&#146;s total proved reserves as of December&#160;31, 2008. DeGolyer and MacNaughton prepared the estimates of proved reserves for SandRidge Tertiary, LLC, which constitute approximately 6% of our total proved reserves as of December&#160;31, 2008. The small remaining portion of estimates of proved reserves were based on Company estimates. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company believes the geologic and engineering data examined provides reasonable assurance that the proved reserves are recoverable in future years from known reservoirs under existing economic and operating conditions. Estimates of proved reserves are subject to change, either positively or negatively, as additional information is available and contractual and economic conditions change. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During 2008, 2007 and 2006, the Company recognized additional reserves attributable to extensions and discoveries as a result of successful drilling in the Pi&#241;on Field. Drilling expenditures of $129.8&#160;million, $97.1&#160;million and $18.6&#160;million resulted in the addition of 57.8&#160;Bcfe, 44.7&#160;Bcfe and 10.9&#160;Bcfe of net proved developed reserves by extending the field boundaries as well as proving the producing capabilities of formations not previously captured as proved reserves for 2008, 2007 and 2006, respectively. The remaining 136.5&#160;Bcfe, 55.1&#160;Bcfe and 83.1&#160;Bcfe of net proved reserves for 2008, 2007 and 2006, respectively, are proved undeveloped reserves associated with direct offsets to the drilling program extending the boundaries of the Pi&#241;on Field and zone identification. Changes in reserves associated with the development drilling have been accounted for in revisions of previous reserve estimates. </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Reserve Quantity Information</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Crude oil</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Nat. Gas</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(MBbls)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(MMcf)(a)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Proved developed and undeveloped reserves:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2005 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,436 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 237,413 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Revisions of previous estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 19,139 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Acquisitions of new reserves </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 13,753 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 514,170 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 58 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 93,396 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (322 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (13,410 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2006 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,175 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 850,708 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Revisions of previous estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,492 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 318,639 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Acquisitions of new reserves </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 53 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 75,139 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,849 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 104,501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,042 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,958 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,527 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,297,029 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Revisions of previous estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,738 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 412,155 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Acquisitions of new reserves </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 513 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,008 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,728 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 241,596 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Sales of reserves in place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (8 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,750 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,334 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (87,402 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 43,164 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,899,636 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Proved developed reserves:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2005 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 899 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 69,377 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2006 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,994 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 308,296 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,532 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 590,358 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,342 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 851,357 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (a) </TD> <TD></TD> <TD valign="bottom"> Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The standardized measure of discounted cash flows and summary of the changes in the standardized measure computation from year to year are prepared in accordance with SFAS&#160;No.&#160;69. The assumptions that underlie the computation of the standardized measure of discounted cash flows may be summarized as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> the standardized measure includes the Company&#146;s estimate of proved oil, natural gas and natural gas liquids reserves and projected future production volumes based upon year-end economic conditions; </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> pricing is applied based upon year-end market prices adjusted for fixed or determinable contracts that are in existence at year-end. The calculated weighted average per unit prices for the Company&#146;s proved reserves and future net revenues were as follows: </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="77%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="2%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="2%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="2%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="2%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="2%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="2%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>At December&#160;31,</B> </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas (per Mcf) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4.94 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6.46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5.32 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Crude oil (per barrel) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 39.42 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 87.47 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 54.62 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> future development and production costs are determined based upon actual cost at year-end; </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> the standardized measure includes projections of future abandonment costs based upon actual costs at year-end;&#160;and </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> a discount factor of 10% per year is applied annually to the future net cash flows. </TD> </TR> </TABLE> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Standardized Measure of Discounted Future Net Cash Flows Related to<BR> Proved Oil and Gas Reserves</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="86%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="10%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>As of December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future cash inflows from production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5,901,660 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,623,216 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future development costs(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (931,947 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future income tax expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (638,599 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Undiscounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,707,898 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> 10% annual discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,267,752 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Standardized measure of discounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,440,146 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>As of December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future cash inflows from production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 11,578,381 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,706,208 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future development costs(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,640,500 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future income tax expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,782,909 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Undiscounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,448,764 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> 10% annual discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,730,227 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Standardized measure of discounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,718,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>As of December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future cash inflows from production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 11,092,154 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,887,553 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future development costs(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,153,506 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future income tax expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (399,014 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Undiscounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,652,081 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> 10% annual discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,431,505 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Standardized measure of discounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,220,576 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (a) </TD> <TD></TD> <TD valign="bottom"> Includes abandonment costs.</TD> </TR> </TABLE> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table represents the Company&#146;s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands): </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Changes in the Standardized Measure of Discounted Future Net Cash Flows<BR> From Proved Oil and Gas Reserves</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="88%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2005</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 499,154 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Changes during the year: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revenues less production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (61,449 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in prices, production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (294,437 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Development costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 75,323 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in future development costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (75,466 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 126,061 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revisions of previous quantity estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 54,313 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Accretion of discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 73,643 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net change in income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,962 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Purchases of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,135,062 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Timing differences and other(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (55,096 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net change for the year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 940,992 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,440,146 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Changes during the year: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revenues less production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (351,863 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in prices, production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 800,630 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Development costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 485,348 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in future development costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (723,943 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 328,094 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revisions of previous quantity estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 998,729 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Accretion of discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 88,596 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net change in income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (537,835 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Purchases of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155,051 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Timing differences and other(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 35,584 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net change for the year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,278,391 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,718,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Changes during the year: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revenues less production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (719,091 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in prices, production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,747,962 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Development costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,132,078 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in future development costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,152,018 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 227,874 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revisions of previous quantity estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 757,939 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Accretion of discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 168,811 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net change in income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 794,001 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Purchases of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 47,767 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Sales of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,076 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Timing differences and other(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,284 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net change for the year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (497,961 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,220,576 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (a) </TD> <TD></TD> <TD valign="bottom"> The change in timing differences and other are related to revisions in the Company&#146;s estimated time of production and development.</TD> </TR> </TABLE> </DIV><!-- END PAGE WIDTH --> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">15.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Retirement and Deferred Compensation Plans</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Retirement Plan.</I>&#160;&#160;The Company maintains a 401(k) retirement plan for its employees. Under the plan, eligible employees may elect to defer a portion of their earnings up to the maximum allowed by regulations promulgated by the Internal Revenue Service. Prior to August 2006, the Company made matching contributions equal to 50% on the first 6% of employee deferred wages. The Company modified the 401(k) retirement plan in August 2006 to change the matching contributions to equal a match of 100% on the first 15% of employee deferred wages. The plan was also modified to make the matching contributions payable in Company common stock. Accrued payables for the employer matching contribution in the amounts of $0.3&#160;million and $5.2&#160;million are reflected in the consolidated balance sheets as of December&#160;31, 2008 and 2007, respectively. In February 2008, the Company satisfied its matching obligation related to employees&#146; contributions made in 2007 through a transfer of treasury stock. During June 2007, the Company satisfied its matching obligation related to employees&#146; contributions made in 2006 through a transfer of treasury stock. See Note&#160;20. For 2008, 2007 and 2006, retirement plan expense was approximately $7.8&#160;million, $4.9&#160;million and $1.5&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Deferred Compensation Plan.</I>&#160;&#160;Effective February&#160;1, 2007 the Company established a non-qualified deferred compensation plan that allows eligible highly compensated employees to elect to defer income in excess of the IRA annual limitations on qualified 401(k) retirement plans. The 2008 annual 401(k) deferral limit for employees under age&#160;50 was $15,500. Employees turning age&#160;50 or over in 2008 could defer up to $20,500. The Company makes matching contributions on non-qualified contributions up to a maximum of 15% of employee gross earnings. Accrued payables for the employer matching contribution in the amounts of $0.1&#160;million and $0.8&#160;million were included in the consolidated balance sheets as of December&#160;31, 2008 and 2007, respectively. In July 2008, the Company satisfied its matching obligation related to employees&#146; contributions made in 2007 and first quarter of 2008 through a transfer of treasury stock. See Note&#160;20. For 2008 and 2007, deferred compensation expense was approximately $2.3&#160;million and $0.6&#160;million, respectively. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Property, Plant and Equipment</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Property, plant and equipment consists of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="74%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil properties: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Proved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,676,072 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,848,531 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unproved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 259,610 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total natural gas and crude oil properties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,891,770 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,108,141 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less accumulated depreciation, depletion and impairment(1) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,369,840 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (230,974 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net natural gas and crude oil properties capitalized costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,521,930 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,877,167 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Land </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,149 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Non natural gas and crude oil equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 764,792 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 539,893 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Buildings and structures </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 71,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,288 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 847,901 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 579,330 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less accumulated depreciation, depletion and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (194,272 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (119,087 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net capitalized costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 653,629 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 460,243 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total property, plant and equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,175,559 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,337,410 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Includes ceiling limitation impairment charge of $1,855.0&#160;million at December&#160;31, 2008.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The amount of capitalized interest included in the above non natural gas and crude oil equipment balance at December&#160;31, 2008 and 2007 was approximately $3.8&#160;million and $3.4&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In July 2007, the Company purchased property to serve as its corporate headquarters. The 3.51-acre site contains four buildings and is located in downtown Oklahoma City, Oklahoma. The purchase price was approximately $29.5&#160;million in cash. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In May 2008, the Company completed the sale of all of its assets located in the Piceance Basin of Colorado. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The average composite rates used for depreciation, depletion and amortization were $2.82 per Mcfe in 2008, $2.64 per Mcfe in 2007 and $1.68 per Mcfe in 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Costs Excluded from Amortization</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Costs associated with unproved properties of $215.7&#160;million as of December&#160;31, 2008 were excluded from amounts subject to amortization. The following table summarizes the costs related to unproved properties which have been excluded from natural gas and crude oil properties being amortized at December&#160;31, 2008 and the year in which they were incurred: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="60%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Excluded<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Costs at<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Year Cost Incurred</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Property acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 179,888 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 35,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Exploration </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Development </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Capitalized interest </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 179,888 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 35,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company expects to complete the majority of the evaluation activities within six years from the applicable date of acquisition, contingent on the Company&#146;s capital expenditures and drilling program. In addition, the Company&#146;s internal engineers evaluate all properties on at least an annual basis. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">26.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Quarterly Financial Results (Unaudited)</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s operating results for each quarter of 2008 and 2007 are summarized below (in thousands, except per share data). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="54%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>First<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Second<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Third<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Fourth<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>2008:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 269,086 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 378,050 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 334,023 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 200,655 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (62,811 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (11,795 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 401,287 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,664,828 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (56,625 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (20,343 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 230,346 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,594,658 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income (applicable) available to common stockholders </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (66,207 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (26,993 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 230,346 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,594,658 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net (loss) income per share (applicable) available to common stockholders(1): </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Basic </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.17 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1.41 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (9.78 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Diluted </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.17 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1.40 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (9.78 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> <B>2007:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 149,064 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 159,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 153,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,677 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,468 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 75,160 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 59,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 48,515 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (19,493 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 34,564 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 20,920 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 14,230 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income available (applicable) to common stockholders </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (28,459 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 22,270 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 11,607 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,915 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basic and diluted: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net (loss) income per share (applicable) available to common stockholders(1) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.31 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.21 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.11 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.04 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Income (loss) available (applicable) to common stockholders for each quarter is computed using the weighted-average number of shares outstanding during the quarter, while earnings per share for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of income (loss) available (applicable) to common stockholders for each of the four quarters may not equal the fiscal year amount.</TD> </TR> </TABLE> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">21.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Related Party Transactions</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During the ordinary course of business, the Company has transactions with certain shareholders and other related parties. These transactions primarily consist of purchases of drilling equipment and sales of oil field service supplies. Following is a summary of significant transactions with related parties for the years ended December 31 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="71%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="3%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="3%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="3%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Sales to and reimbursements from related parties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 90,170 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 118,631 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 14,102 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Purchases of services from related parties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 59,951 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,555 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,811 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In August 2006, the Company sold various non-energy related assets to the Company&#146;s former President and Chief Operating Officer for approximately $6.1&#160;million in cash. The sale transaction resulted in a $0.8&#160;million gain recognized in earnings by the Company in August 2006. The gain is included in gain on sale of assets in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In September 2006, the Company entered into a facilities lease with a company owned by a member of its Board of Directors. The Company believes that the payments to be made under this lease are at fair market rates. Rent expense related to the lease totaled $1.4 million, $1.3&#160;million and $0.3&#160;million for the years ended December&#160;31, 2008, 2007 and 2006, respectively. The lease extends to August 2009. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In May 2007, the Company purchased leasehold acreage from a partnership controlled by a director. The purchase price was approximately $8.3&#160;million in cash. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In June 2007, the Company purchased certain producing well interests from a director. The purchase price was approximately $3.5&#160;million in cash. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In October 2008, the Company purchased certain working interests and related reserves in company wells owned by its Chairman and Chief Executive Officer and certain of his affiliates. The purchase price was approximately $67.3&#160;million. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Larclay, L.P.</I>&#160;&#160;Lariat and CWEI each own a 50% interest in Larclay. Larclay currently owns twelve rigs, one of which has not yet been assembled. Larclay financed the acquisition cost of its twelve rigs with a loan from a third party, secured by the purchased rigs, and a loan from CWEI. In addition, CWEI has guaranteed a portion of the third party debt. Lariat operates the rigs owned by the partnership. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> If Larclay has an operating shortfall, Lariat and CWEI are obligated to provide loans to the partnership. In April 2008, Lariat and CWEI each made loans of $2.5&#160;million to Larclay under promissory notes. The notes bear interest at a floating rate based on a LIBOR average plus 3.25% (5.1875% at December&#160;31, 2008)&#160;as provided in the Larclay partnership agreement. In June 2008, Larclay executed a $15.0&#160;million revolving promissory note with each Lariat and CWEI. Amounts drawn under each revolving promissory note bear interest at a floating rate based on a LIBOR average plus 3.25% (5.1875% at December&#160;31, 2008)&#160;as provided in the Larclay partnership agreement. Lariat advanced $5.0&#160;million to Larclay under the revolving promissory note during the year ended December&#160;31, 2008. Total advances outstanding to Larclay were $7.5&#160;million ($2.5&#160;million promissory note and $5.0&#160;million drawn on revolving promissory note) at December&#160;31, 2008. The cash shortfalls experienced by Larclay in 2008 were the result of principal payments due pursuant to its rig loan agreement. As a result of current economic conditions and continued cash shortfalls for Larclay, the Company has impaired both its investment in and notes receivable due from Larclay as of December&#160;31, 2008. See Note&#160;8. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table summarizes the Company&#146;s other transactions with Larclay for the years ended December&#160;31, 2008, 2007 and 2006 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="72%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Sales to and reimbursements from Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 42,757 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 53,256 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,592 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Purchases of services from Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 34,747 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 33,297 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 33 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="73%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts receivable from Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,060 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 16,625 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts payable to Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 152 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 274 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> See Note&#160;2 for a discussion of additional related party transactions. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Accounts Receivable</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> A summary of trade accounts receivable is as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="80%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil sales </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 72,266 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 72,393 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and oil services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,476 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,622 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Joint interest billing </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 13,816 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,874 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 62 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 90 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 106,620 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 96,979 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less allowance for doubtful accounts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,874 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,238 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total trade accounts receivable, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 102,746 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 94,741 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table shows the balance in the allowance for doubtful accounts and activity for the years ended December&#160;31, 2006, 2007 and 2008 (in thousands). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="53%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Additions<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Balance at<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Charged to<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Balance at<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Beginning<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Costs and<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>End of<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Allowance for Doubtful Accounts</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>of Period</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Expenses</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Deductions(1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Period</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Year ended December&#160;31, 2006 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 851 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,528 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (354 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,025 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Year ended December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,025 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (787 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,238 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Year ended December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,238 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,748 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (112 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,874 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Deductions represent the write-off of receivables.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s customer, SemGroup, L.P. and certain of its subsidiaries (collectively, &#147;SemGroup&#148;), filed for bankruptcy on July&#160;22, 2008. During the third quarter of 2008, the Company established an allowance in the amount of $1.5&#160;million for all amounts due from SemGroup. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">24.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Financial Information</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company is providing condensed consolidating financial information for its subsidiaries that are guarantors of its public debt. Subsidiary guarantors are wholly owned and have, jointly and severally, unconditionally guaranteed on an unsecured basis the Company&#146;s 8.625%&#160;Senior Notes due 2015, Senior Floating Rate Notes due 2014 and 8.0%&#160;Senior Notes due 2018. The subsidiary guarantees (i)&#160;rank equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii)&#160;rank senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii)&#160;are effectively subordinated in right of payment to any existing or future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; and (iv)&#160;are structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors who are not themselves guarantors. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has not presented separate financial and narrative information for each of the subsidiary guarantors because it believes that such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the guarantees. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following condensed consolidating financial information represents the financial information of SandRidge Energy, Inc. and its wholly owned subsidiary guarantors, prepared on the equity basis of accounting. The non-guarantor subsidiaries are minor and, therefore, not presented separately. The information is presented in accordance with the requirements of <FONT style="white-space: nowrap">Rule&#160;3-10</FONT> under the SEC&#146;s <FONT style="white-space: nowrap">Regulation&#160;S-X.</FONT> The financial information may not necessarily be indicative of the financial position, results of operations, or cash flows had the subsidiary guarantors operated as independent entities. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Balance Sheet</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="32%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=06 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=06 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=06 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=06 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=07 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=07 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=07 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=07 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=08 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=08 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=08 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=08 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=09 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=09 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=09 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=09 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31, 2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31, 2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="30" align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD colspan="33" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>ASSETS</B> </DIV> </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Current assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 18 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 618 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 636 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 62,967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 168 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,135 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Accounts and notes receivable, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 863,129 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 66,463 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 109,073 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 557,527 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 85,947 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 114,759 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 201,111 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 201,111 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,958 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,958 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,194 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 41,899 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,093 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,936 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,664 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 26,600 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,067,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 108,980 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 355,913 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 648,388 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 106,779 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 226,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Property, plant and equipment, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,106,623 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,068,936 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,175,559 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 967,259 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,370,151 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,337,410 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Investment in subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,002,336 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,002,336 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,817,330 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,817,330 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 135,161 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 39,809 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 123,586 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 77,614 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,474 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 66,704 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,311,572 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,217,725 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,874,239 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,655,058 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,510,591 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,517,404 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,397,429 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,630,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Current liabilities: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Accounts payable and accrued expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 163,068 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,024,018 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 366,567 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 224,015 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 520,592 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,892 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Other current liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,106 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30,951 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,057 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,214 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,214 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total current liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 168,174 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,054,969 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 402,624 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 224,015 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 536,806 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 232,106 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,323,458 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 86,710 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,358,784 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,000,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 103,683 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,052,299 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Asset retirement obligation </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,759 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 71,738 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84,497 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,620 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 53,096 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 57,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 13,660 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,942 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,602 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,817 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,817 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Deferred income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,518,051 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,215,359 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (871,903 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,861,507 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,292,985 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 695,402 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (580,099 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,408,288 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Minority interest </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,672 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,672 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Redeemable convertible preferred stock </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 450,715 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 450,715 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Stockholders&#146; equity </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 793,521 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,002,336 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,002,336 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 793,521 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,766,891 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,817,330 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,817,330 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,766,891 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total liabilities and stockholders&#146; equity </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,311,572 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,217,725 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,874,239 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,655,058 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,510,591 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,517,404 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,397,429 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,630,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Statements of Operations</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>Year Ended December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 329,109 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 855,184 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,479 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,181,814 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Direct operating expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 72,473 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 323,172 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,479 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 393,166 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> General and administrative </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,638 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 68,734 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 109,372 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Depreciation, depletion, amortization and impairment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 957,509 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,271,353 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,228,862 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Gain on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (211,439 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (211,439 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 859,181 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,663,259 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,479 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,519,961 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> (Loss) income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (530,072 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (808,075 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,338,147 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Equity earnings from subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (809,594 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 809,594 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Interest expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (142,843 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (4,184 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (147,027 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other income (expense), net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,709 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> (Loss) income before income tax (benefit) expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,479,652 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (809,550 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 809,594 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,479,608 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income tax (benefit) expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (38,372 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 44 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (38,328 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Net (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,441,280 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (809,594 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 809,594 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,441,280 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>Year Ended December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 139,281 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 538,171 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 677,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Direct operating expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 33,643 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 228,793 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 262,436 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> General and administrative </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 32,446 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,334 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 61,780 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Depreciation, depletion, and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 43,257 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 183,852 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 227,109 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Gain on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (26,183 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (34,549 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (60,732 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 83,163 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 407,430 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 490,593 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income (loss) from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 56,118 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 130,741 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 186,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Equity earnings from subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 137,515 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (137,515 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Interest expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (113,838 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,347 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (117,185 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other (expense) income, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (81 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,152 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,071 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income (loss) before income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 79,714 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 137,546 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (137,515 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 79,745 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,493 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,524 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Net income (loss) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 50,221 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 137,515 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (137,515 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 50,221 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>Year Ended December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,041 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 325,201 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 388,242 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Direct operating expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,773 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 226,519 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 252,292 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> General and administrative </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,904 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 23,730 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 55,634 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Depreciation, depletion, and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 24,500 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,126 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 55,626 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> (Gain) loss on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (12,327 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (12,291 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 69,850 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 281,411 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 351,261 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> (Loss) income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (6,809 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 43,790 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,981 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Equity earnings from subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,470 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,470 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Interest expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (14,222 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,682 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (16,904 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other income (expense), net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 425 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,355 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,780 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income (loss) before income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,864 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 42,463 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,470 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 243 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,993 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Net income (loss) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15,621 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 36,470 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (36,470 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15,621 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Statements of Cash Flows</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="51%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Year Ended December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash (used in) provided by operating activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (309,359 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 888,548 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 579,189 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash used in investing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,042,633 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (866,810 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,909,443 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash provided by (used in) financing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,289,043 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (21,288 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,267,755 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net (decrease) increase in cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (62,949 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 450 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (62,499 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at beginning of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 62,967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 168 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 63,135 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at end of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 18 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 618 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 636 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Year Ended December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash (used in) provided by operating activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (301,288 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 667,724 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (8,984 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 357,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash used in investing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (728,697 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (656,884 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,385,581 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash provided by (used in) financing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,061,505 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (18,173 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,984 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,052,316 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net increase (decrease) in cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,520 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (7,333 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 24,187 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at beginning of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,447 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,948 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at end of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 62,967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 168 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,135 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Year Ended December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash (used in) provided by operating activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (33,775 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 94,570 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,554 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 67,349 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash used in investing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,212,910 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (127,657 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,340,567 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash provided by (used in) financing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,233,555 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 39,434 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (6,554 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,266,435 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net (decrease) increase in cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (13,130 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,347 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (6,783 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at beginning of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 44,577 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,154 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,731 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at end of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 31,447 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7,501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 38,948 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">17.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Earnings (Loss) Per Share</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Basic earnings per share are computed using the weighted average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted average shares outstanding during the year, but also include the dilutive effect of awards of restricted stock. The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share for the years ended December 31 (in thousands). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="72%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Weighted average basic common shares outstanding </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155,619 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 108,828 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 73,727 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Effect of dilutive securities: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Restricted stock </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,213 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 937 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Weighted average diluted common and potential common shares outstanding </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155,619 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 110,041 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 74,664 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> For the year ended December&#160;31, 2008, restricted stock awards covering approximately 3.0&#160;million shares were excluded from the computation of net loss per share because their effect would have been antidilutive. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In computing diluted earnings per share, the Company evaluated the if-converted method with respect to its outstanding redeemable convertible preferred stock. Under this method, the Company assumes the conversion of the preferred stock to common stock and determines if this is more dilutive than including the preferred stock dividends (paid and unpaid) in the computation of income available to common stockholders. The Company determined the if-converted method is not more dilutive and has included preferred stock dividends in the determination of income available to common stockholders for the years ended December&#160;31, 2008 and 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">19.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Redeemable Convertible Preferred Stock</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In November 2006, the Company sold 2,136,667&#160;shares of redeemable convertible preferred stock to finance a portion of the NEG acquisition and received net proceeds of approximately $439.5&#160;million after deducting offering expenses of approximately $9.3&#160;million. Each holder of redeemable convertible preferred stock was entitled to quarterly cash dividends at the annual rate of 7.75% of the accreted value, or $210 per share, of their redeemable convertible preferred stock. Each share of redeemable convertible preferred stock was initially convertible into ten shares, and ultimately convertible into 10.2&#160;shares, of common stock at the option of the holder, subject to certain anti-dilution adjustments. A summary of dividends declared and paid on the redeemable convertible preferred stock is as follows (in thousands, except per share data): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="25%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="39%">&nbsp;</TD> <!-- colindex=02 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="2%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="19%">&nbsp;</TD> <!-- colindex=05 type=maindata --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Dividends<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Declared</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Dividend Period</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>per Share</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Total</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Payment Date</B> </DIV> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> November 21, 2006&#160;&#151; February 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3.21 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 15, 2007 </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> May&#160;8, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 2, 2007&#160;&#151; May 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3.97 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,550 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 15, 2007 </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> June&#160;8, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 2, 2007&#160;&#151; August 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.10 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> August 15, 2007 </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> September&#160;24, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> August 2, 2007&#160;&#151; November 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.10 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> November 15, 2007 </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> December&#160;16, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> November 2, 2007&#160;&#151; February 1, 2008 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.10 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 15, 2008 </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> March&#160;7, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 2, 2008&#160;&#151; May 1, 2008 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.01 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,095 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> (1) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> May&#160;7, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 2, 2008&#160;&#151; May 7, 2008 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.01 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 7, 2008 </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Includes $0.6&#160;million of prorated dividends paid to holders of redeemable convertible preferred shares at the time their shares converted to common stock in March 2008. The remaining dividends of $7.5&#160;million were paid during May 2008.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On March&#160;30, 2007, certain holders of the Company&#146;s common units (consisting of shares of common stock and a warrant to purchase redeemable convertible preferred stock upon the surrender of common stock) exercised warrants to purchase redeemable convertible preferred stock. The holders converted 526,316&#160;shares of common stock into 47,619&#160;shares of redeemable convertible preferred stock. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During March 2008, holders of 339,823&#160;shares of the Company&#146;s redeemable convertible preferred stock elected to convert those shares into 3,465,593&#160;shares of the Company&#146;s common stock. Additionally, during May&#160;2008, the Company converted the remaining outstanding 1,844,464&#160;shares of its redeemable convertible preferred stock into 18,810,260&#160;shares of its common stock as permitted under the terms of the redeemable convertible preferred stock. These conversions resulted in increases to additional paid-in capital totaling $452.2&#160;million, which represents the difference between the par value of the common stock issued and the carrying value of the redeemable convertible shares converted. The Company also recorded charges to retained earnings totaling $7.2&#160;million in accelerated accretion expense related to the converted redeemable convertible preferred shares. Prorated dividends totaling $0.5&#160;million for the period from May&#160;2, 2008 to the date of conversion (May&#160;7, 2008)&#160;were paid to the holders of the converted shares on May&#160;7, 2008. On and after the conversion date, dividends ceased to accrue and the rights of common unit holders to exercise outstanding warrants to purchase redeemable convertible preferred shares terminated. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Approximately $8.6&#160;million and $38.5&#160;million in paid and unpaid dividends have been included in the Company&#146;s earnings per share calculations for the years ended December&#160;31, 2008 and 2007, respectively, as presented in the consolidated statements of operations. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">22.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Subsequent Events</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Private Placement of Convertible Perpetual Preferred Stock.</I>&#160;&#160;In January 2009, the Company commenced and completed a private placement of 2,650,000&#160;shares of a new series of 8.5% convertible perpetual preferred stock to qualified institutional buyers eligible under Rule&#160;144A under the Securities Act. Net proceeds from the offering were approximately $243.9&#160;million after applying a discount to the purchase price of the stock and deducting offering expenses of approximately $8.0&#160;million. The Company will use the net proceeds of the offering to repay outstanding borrowings under its senior credit facility and for general corporate purposes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Marketing of Midstream Assets.</I>&#160;&#160;In January 2009, the Company announced its intent to offer for sale certain of its gas gathering and related assets located in the WTO. The carrying value of these assets was $228.8&#160;million at December&#160;31, 2008. This process is ongoing as of the date of this filing. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">23.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Industry Segment Information</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company operates in four related business segments: exploration and production, drilling and oil field services, midstream gas services and other ancillary business activities. These segments represent the Company&#146;s four main business units, each offering different products and services. The exploration and production segment is engaged in the development, acquisition and production of natural gas and crude oil properties. The drilling and oil field services segment is engaged in the land contract drilling of natural gas and crude oil wells. The midstream gas services segment is engaged in the purchasing, gathering, processing and treating of natural gas. The other segment includes transporting CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> to market for use in tertiary oil recovery operations by the Company and third parties and other miscellaneous operations. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (Note&#160;1). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Management evaluates the performance of the Company&#146;s business segments based on operating income (loss), which is defined as segment operating revenues less operating expenses and depreciation, depletion, amortization and impairment. Summarized financial information concerning the Company&#146;s segments is shown in the following table (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="64%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 912,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 479,321 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 106,990 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 220 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 574 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 577 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production, net of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 912,496 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 478,747 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 106,413 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 434,963 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 261,818 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 211,055 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 387,972 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 188,616 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 72,398 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services, net of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46,991 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 73,202 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 138,657 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 688,071 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 285,065 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 192,960 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 483,933 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 177,487 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 70,068 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services, net of inter-segment revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 204,138 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 107,578 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 122,892 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 22,791 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,286 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,411 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,602 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,361 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,131 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other, net of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,189 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,925 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,280 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,181,814 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 677,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 388,242 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Operating (loss) income: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,263,249 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 198,913 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 17,069 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,393 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,473 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 32,946 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,087 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,783 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,528 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (71,592 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (29,310 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (16,562 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total operating (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,338,147 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 186,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,981 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Interest expense, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (143,458 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (111,762 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (15,795 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other income (expense), net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,997 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 671 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,479,608 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 79,745 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,986,070 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,143,137 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,091,459 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 275,164 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 271,563 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 175,169 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 284,281 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 127,822 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 75,606 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 109,543 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 88,044 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46,150 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,655,058 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,630,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,388,384 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Capital Expenditures(1): </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,909,078 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,046,552 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 170,872 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 52,869 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 123,232 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 89,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 160,460 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 63,828 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,975 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 55,440 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 47,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,884 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total capital expenditures </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,177,847 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,280,848 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 306,541 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, Depletion and Amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 293,625 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 175,565 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 28,104 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 42,077 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 37,792 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,268 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,241 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,641 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,180 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,422 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,111 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,074 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total depreciation, depletion and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 361,365 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 227,109 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 55,626 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> On an accrual basis.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Major Customer.</I>&#160;&#160;During 2008 and 2007, the Company had sales in excess of 10% of total revenues to a natural gas and oil purchaser ($124.6&#160;million or 10.5% of total revenues and $76.1&#160;million or 11.2% of total revenues, respectively). There were no customers that accounted for 10% or more of total revenues in 2006. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <html> <!-- NOTE 1 --> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Summary of Significant Accounting Policies</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Nature of Business.</I>&#160;&#160;SandRidge Energy, Inc. (successor to Riata Energy, Inc.) and its subsidiaries (collectively, the &#147;Company&#148; or &#147;SandRidge&#148;) is an independent natural gas and oil company concentrating on exploration, development and production activities. The Company also owns and operates natural gas gathering and treating facilities and CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> treating and transportation facilities and has marketing and tertiary oil recovery operations. In addition, Lariat Services, Inc. (&#147;Lariat&#148;), a wholly owned subsidiary, owns and operates drilling rigs and a related oil field services business. The Company&#146;s primary exploration, development and production areas are concentrated in West Texas. The Company also operates interests in the Mid-Continent, the Cotton Valley Trend in East Texas, the Gulf Coast and the Gulf of Mexico. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Principles of Consolidation.</I>&#160;&#160;The consolidated financial statements include the accounts of SandRidge Energy, Inc. and its wholly owned or majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Reclassifications.</I>&#160;&#160;Certain reclassifications have been made to prior period financial statements to conform to current period presentation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Use of Estimates.</I>&#160;&#160;The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Estimates of natural gas and crude oil reserves and their values, future production rates and future costs and expenses are inherently uncertain for numerous reasons, including many factors beyond the Company&#146;s control. Reservoir engineering is a subjective process of estimating underground accumulations of natural gas and crude oil that cannot be measured in an exact manner. The accuracy of any reserve estimate is a function of the quality of data available and of engineering and geological interpretation and judgment. In addition, estimates of reserves may be revised based on actual production, results of subsequent exploration and development activities, prevailing commodity prices, operating costs and other factors. These revisions may be material and could materially affect the Company&#146;s future depletion, depreciation and amortization expenses. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for natural gas and crude oil, each of which depend on numerous factors beyond the Company&#146;s control such as economic conditions, regulatory developments and competition from other energy sources. The energy markets historically have been volatile and natural gas and crude oil prices may be subject to significant fluctuations in the future. A substantial or extended decline in natural gas and crude oil prices could have a material adverse effect on the Company&#146;s financial position, results of operations, cash flows and quantities of natural gas and crude oil reserves that may be economically produced. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Cash and Cash Equivalents.</I>&#160;&#160;The Company considers all highly-liquid instruments with a maturity of three months or less when purchased to be cash equivalents as these instruments are readily convertible to known amounts of cash and bear insignificant risk of changes in value due to their short maturity period. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Accounts Receivable, Net.</I>&#160;&#160;The Company has receivables for sales of natural gas, crude oil and natural gas liquids, as well as receivables related to the exploration and treating services for natural gas, crude oil and natural gas liquids. Management has established an allowance for doubtful accounts. The allowance is evaluated by management and is based on management&#146;s review of the collectability of the receivables in light of historical experience, the nature and volume of the receivables and other subjective factors. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Inventories.</I>&#160;&#160;Inventories consist of oil field services supplies and are stated at the lower of cost or market with cost determined on an average cost basis. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Investments.</I>&#160;&#160;Investments in affiliated companies are accounted for under the equity method in circumstances where the Company is deemed to exercise significant influence over the operating and investing policies of the investee but does not have control. Under the equity method, the Company recognizes its share of the investee&#146;s earnings in its consolidated statements of operations. Investments in affiliated companies not accounted for under the equity method are accounted for under the cost method. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Debt Issuance Costs.</I>&#160;&#160;The Company amortizes debt issuance costs related to its long-term debt as interest expense over the scheduled maturity period of the debt. Unamortized debt issuance costs were approximately $38.2&#160;million as of December&#160;31, 2008 and approximately $26.0&#160;million as of December&#160;31, 2007. The Company includes the unamortized costs in other assets in its consolidated balance sheets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Revenue Recognition and Gas Balancing.</I>&#160;&#160;Natural gas and crude oil revenues are recorded when title passes to the customer, net of royalties, discounts and allowances, as applicable. The Company accounts for natural gas and crude oil production imbalances using the sales method, whereby the Company recognizes revenue on all natural gas and crude oil sold to its customers notwithstanding the fact that its ownership may be less than 100% of the natural gas and crude oil sold. Liabilities are recorded by the Company for imbalances greater than the Company&#146;s proportionate share of remaining estimated natural gas and crude oil reserves. The Company has recorded a liability for gas imbalance positions related to natural gas properties with insufficient proved reserves of $1.7&#160;million and $1.6&#160;million at December&#160;31, 2008 and 2007, respectively. The Company includes the gas imbalance positions in other long-term obligations in its consolidated balance sheets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company recognizes revenues and expenses generated from daywork drilling contracts as the services are performed as the Company does not bear the risk of completion of the well. Under turnkey contracts, the Company bears the risk of completion of the well; therefore, revenues and expenses are recognized when the well is substantially completed. Under this method, substantial completion is determined when the well bore reaches the depth stated in the contract. The duration of daywork and turnkey contracts typically ranges from 20 to 90&#160;days. The entire amount of a loss, if any, is recorded when the loss is determinable. The costs of uncompleted drilling contracts include expenses incurred to date on turnkey contracts that are still in process at the end of the period. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company may receive lump-sum fees for the mobilization of equipment and personnel. Mobilization fees received and costs incurred to mobilize a rig from one market to another are recognized over the term of the related drilling contract. The contract terms typically range from 20 to 90&#160;days. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Revenues from the midstream services segment are derived from providing gathering, compression, treating, balancing and sales services for producers and wholesale customers on its natural gas gathering systems. Midstream gas services are primarily undertaken to realize incremental margins on natural gas purchased at the wellhead and provide value-added services to customers. In general, natural gas purchased and sold by the midstream gas business is priced at a published daily or monthly index price plus or minus a negotiated differential. Sales to wholesale customers typically incorporate a premium for managing their transmission and balancing requirements. Revenues are recognized upon delivery of natural gas to customers <FONT style="white-space: nowrap">and/or</FONT> when services are rendered, pricing is determinable and collectability is reasonably assured. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Revenue from sales of CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> is recognized when the product is delivered to the customer. The Company recognizes service fees related to the transportation of CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> as revenue when the related service is provided. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Environmental Costs.</I>&#160;&#160;Environmental expenditures are expensed or capitalized, as appropriate, depending on future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments <FONT style="white-space: nowrap">and/or</FONT> remediation activities are probable and costs can be reasonably estimated. Environmental costs accrued at December&#160;31, 2008 and 2007 were not material. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Natural Gas and Crude Oil Operations.</I>&#160;&#160;The Company uses the full cost method to account for its natural gas and crude oil properties. Under full cost accounting, all costs directly associated with the acquisition, and development of natural gas and crude oil reserves are capitalized into a full cost pool. These capitalized costs include costs of all unproved properties, internal costs directly related to the Company&#146;s acquisition, exploration and development activities and capitalized interest. During 2008, the Company capitalized internal costs of $19.1&#160;million to the full cost pool. The Company did not capitalize any interest expense to the full cost pool in 2008. During 2007, the Company capitalized internal costs and interest expense of $4.6&#160;million and $0.3&#160;million, respectively, to the full cost pool. No internal costs or interest expense were capitalized to the full cost pool in 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Capitalized costs are amortized using a unit-of-production method. Under this method, the provision for depreciation, depletion and amortization is computed at the end of each quarter by multiplying total production for the quarter by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the quarter. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Costs associated with unproved properties are excluded from the total unamortized cost base until a determination has been made as to the existence of proved reserves. Unproved properties are reviewed at the end of each quarter to determine whether the costs incurred should be reclassified to the full cost pool and, thereby, subjected to amortization. Sales and abandonments of natural gas and crude oil properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized, unless the adjustments would significantly alter the relationship between capitalized costs and proved natural gas and crude oil reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the reserve quantities of a cost center. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Under the full cost method of accounting, total capitalized costs of natural gas and crude oil properties, net of accumulated depreciation, depletion and amortization, less related deferred income taxes may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unevaluated properties, plus estimated salvage value, less the related tax effects (the &#147;ceiling limitation&#148;). A ceiling limitation calculation is performed at the end of each quarter. If total capitalized costs, net of accumulated depreciation, depletion and amortization, less related deferred taxes are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a non-cash charge that reduces earnings and impacts stockholders&#146; equity in the period of occurrence and typically results in lower depreciation, depletion and amortization expense in future periods. Once incurred, a write-down is not reversible at a later date. See Note&#160;8. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The ceiling limitation calculation uses natural gas and crude oil prices in effect as of the balance sheet date, as adjusted for basis or location differentials as of the balance sheet date and held constant over the life of the reserves (&#147;net wellhead prices&#148;). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of natural gas and crude oil. The Company may, from time-to-time, use derivative financial instruments to hedge against the volatility of natural gas and crude oil prices. Derivative contracts that qualify and are designated as cash flow hedges are included in estimated future cash flows. Historically, the Company has not designated any of its derivative contracts as cash flow hedges and has therefore not included its derivative contracts in estimating future cash flows. The future cash outflows associated with future development or abandonment of wells are included in the computation of the discounted present value of future net revenues for purposes of the ceiling limitation calculation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The costs associated with unproved properties, initially excluded from the amortization base, relate to unproved leasehold acreage, wells and production facilities in progress and wells pending determination of the existence of proved reserves, together with capitalized interest costs for these projects. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well once a determination of the existence of proved reserves has been made or upon impairment of a lease. Costs of seismic data are allocated to various unproved leaseholds and transferred to the amortization base with the associated leasehold costs on a specific project basis. Costs associated with wells in progress and completed wells that have yet to be evaluated are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property. Costs of dry holes are transferred to the amortization base immediately upon determination that the well is unsuccessful. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> All items classified as unproved property are assessed on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Property, Plant and Equipment, Net.</I>&#160;&#160;Other capitalized costs, including drilling equipment, natural gas gathering and treating equipment, transportation equipment and other property and equipment are carried at cost. Renewals and improvements are capitalized while repairs and maintenance are expensed. Depreciation of such property and equipment is computed using the straight-line method over the estimated useful lives of the assets ranging from 3 to 39&#160;years. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Realization of the carrying value of property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are considered to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset including disposal value, if any, is less than the carrying amount of the asset. If any asset is considered impaired, the loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> When property and equipment components are disposed of, the cost and the related accumulated depreciation are removed and any resulting gain or loss is reflected in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Asset Retirement Obligation.</I>&#160;&#160;The Company owns natural gas and crude oil properties that require expenditures to plug and abandon the wells when the natural gas and crude oil reserves in the wells are depleted. These expenditures are recorded in the period in which the liability is incurred (at the time the wells are drilled or acquired). Asset retirement obligations are recorded as a liability at their estimated present value at the asset&#146;s inception, with the offsetting increase to property cost. Periodic accretion expense of the estimated liability is recorded in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Asset retirement obligations primarily represent the Company&#146;s estimate of fair value to plug, abandon and remediate the natural gas and crude oil properties at the end of their productive lives, in accordance with applicable state laws. The Company determines its asset retirement obligations by calculating the present value of estimated expenses related to the liability. Estimating the future asset retirement obligations requires management to make estimates and judgments regarding timing, existence of a liability and what constitutes adequate restoration. Inherent in the present value calculation rates are the timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the related asset. The following shows the activity of the asset retirement obligation for the years ended December 31 (in thousands). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="71%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation, January 1 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 58,580 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 45,216 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,979 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Liability incurred upon acquiring and drilling wells </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,707 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,265 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,996 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> NEG acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,343 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revisions in estimated cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,976 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,971 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,700 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Liability settled in current period </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (764 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (9 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accretion of discount expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,273 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,137 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 598 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation, December 31 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84,772 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 58,580 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,216 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less: current portion </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 275 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 864 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation, net of current </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 84,497 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 57,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 45,216 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The revisions in estimated cash flows for 2008 are primarily due to changes in reserve lives based on lower natural gas and crude oil prices at December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Income Taxes.</I>&#160;&#160;Deferred income taxes are recorded for temporary differences between financial reporting purposes and income tax bases. Temporary differences are differences between the amounts of assets and liabilities reported for financial reporting purposes and their tax bases. Deferred tax assets are recognized for temporary differences that will be deductible in future years&#146; tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years&#146; tax returns. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company accounts for uncertain tax positions in accordance with Financial Accounting Standards Board (&#147;FASB&#148;) Interpretation No.&#160;48 (&#147;FIN&#160;48&#148;), &#147;Accounting for Uncertainty in Income Taxes&#148;. Accordingly, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has elected an accounting policy in which interest and penalties on income tax related balances are presented as a component of income taxes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Minority Interest.</I>&#160;&#160;At December&#160;31, 2008 and 2007, minority interest in the Company&#146;s consolidated subsidiaries included a 1.29% interest in Cholla Pipeline, LP. At December&#160;31, 2007, minority interest in the Company&#146;s consolidated subsidiaries also included a 26.19% interest in Sagebrush Pipeline, LLC (&#147;Sagebrush&#148;). As a result of the sale of Sagebrush&#146;s assets in May 2008, the minority interest in Sagebrush was distributed. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Concentration of Risk.</I>&#160;&#160;The Company maintains cash balances at several financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. From time to time, the Company may have balances in these accounts that exceed the federally insured limit. The Company does not anticipate any loss associated with balances in excess of the federally insured limit. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> All of the Company&#146;s hedging transactions have been carried out in the over-the-counter market. The use of hedging transactions involves the risk that the counterparties may be unable to meet the financial terms of the transactions. The counterparties for all of the Company&#146;s hedging transactions have an &#147;investment grade&#148; credit rating. The Company monitors on an ongoing basis the credit ratings of its hedging counterparties and considers its counterparties&#146; credit default risk rating in determining the fair value of its derivative contracts. At December&#160;31, 2008, Barclays Capital, JPMorgan Chase Bank, Bank of America, Morgan Stanley, Bank of Montreal and Credit Suisse were the counterparties with respect to 81.7% of the Company&#146;s hedged future production. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The purchasers of the Company&#146;s natural gas and crude oil production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. The Company has not experienced any significant losses from uncollectible accounts. In 2008 and 2007, the Company had one individual purchaser accounting for 10.5% and 11.2%, respectively, of its total sales. In 2006, the Company had no individual purchasers accounting for more than 10% of its total sales. The Company believes other purchasers are available in its areas of operations and does not believe the loss of any one of its purchasers would materially affect the Company&#146;s ability to sell the natural gas and crude oil it produces. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Fair Value of Financial Instruments.</I>&#160;&#160;The fair values of the Company&#146;s cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. The fair value for the Company&#146;s publicly traded senior notes, which was based on market prices, was $961.3&#160;million (carrying value of $1.750&#160;billion) at December&#160;31, 2008. The Company&#146;s carrying value for its senior credit facility and remaining fixed rate debt instruments approximates fair value based on current rates applicable to similar instruments. The Company measured fair value of its long-term debt in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.&#160;157, &#147;Fair Value Measurements,&#148; giving consideration to the effect of the Company&#146;s credit risk. The estimated fair values of derivative contracts are based on quotes obtained from the counterparties to the derivative contracts. See Note&#160;3. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Derivative Financial Instruments.</I>&#160;&#160;To manage risks related to increases in interest rates and changes in natural gas and crude oil prices, the Company enters into interest rate swaps and natural gas and crude oil derivative contracts. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company recognizes all of its derivative instruments as either assets or liabilities at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based on the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. None of the Company&#146;s derivatives was designated as hedging instruments during 2008, 2007 and 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Stock-Based Compensation.</I>&#160;&#160;Effective January&#160;1, 2006, the Company adopted SFAS No.&#160;123R, &#147;Share-Based Payment.&#148; SFAS&#160;No.&#160;123R establishes the accounting for equity instruments exchanged for employee services. Under SFAS&#160;No.&#160;123R, stock-based compensation cost is measured based on the calculated fair value of the award on the grant date. The expense is recognized over the employee&#146;s requisite service period, generally the vesting period of the award. SFAS&#160;No.&#160;123R also requires the related excess tax benefit received upon exercise of stock options or vesting of restricted stock, if any, to be reflected in the statement of cash flows as a financing activity rather than as an operating activity. As of December&#160;31, 2008, the Company had $4.6&#160;million of excess tax benefits related to stock-based compensation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Recent Accounting Pronouncements.</I>&#160;&#160;Effective January&#160;1, 2008, SandRidge implemented SFAS&#160;No.&#160;157 for its financial assets and liabilities measured on a recurring basis. SFAS&#160;No.&#160;157 defines fair value, establishes a framework for measuring fair value and expands required disclosures about fair value measurements. SFAS&#160;No.&#160;157 did not have an effect on the Company&#146;s financial statements on the date of adoption other than requiring additional disclosures regarding fair value measurements. See Note&#160;3. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In February 2008, the FASB issued Staff Position <FONT style="white-space: nowrap">FAS&#160;157-2,</FONT> &#147;Effective Date of FASB Statement No.&#160;157&#148; <FONT style="white-space: nowrap">(&#147;FSP&#160;157-2&#148;).</FONT> <FONT style="white-space: nowrap">FSP&#160;157-2</FONT> delays the effective date of SFAS&#160;No.&#160;157 to fiscal years beginning after November&#160;15, 2008 for all nonfinancial assets and nonfinancial liabilities, except those recognized or disclosed at fair value in the financial statements on a recurring basis, at least annually. The Company plans to implement this standard on January&#160;1, 2009. The adoption of <FONT style="white-space: nowrap">FSP&#160;157-2</FONT> is not expected to have a material impact on the Company&#146;s financial condition, operations or cash flows. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Effective upon issuance, the FASB issued Staff Position <FONT style="white-space: nowrap">FAS&#160;157-3,</FONT> &#147;Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active,&#148; <FONT style="white-space: nowrap">(&#147;FSP&#160;157-3&#148;)</FONT> in October 2008. <FONT style="white-space: nowrap">FSP&#160;157-3</FONT> clarifies the application of SFAS&#160;No.&#160;157 in determining the fair value of a financial asset when the market for that financial asset is not active. As of December&#160;31, 2008, the Company had no financial assets with a market that was not active. Accordingly, <FONT style="white-space: nowrap">FSP&#160;157-3</FONT> had no effect on the Company&#146;s current financial statements. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In December 2007, the FASB issued SFAS&#160;No.&#160;141(R), &#147;Business Combinations,&#148; which replaces SFAS&#160;No.&#160;141. SFAS&#160;No.&#160;141(R) establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired. SFAS&#160;No.&#160;141(R) also establishes disclosure requirements that will enable users to evaluate the nature and financial effects of the business combination. SFAS&#160;No.&#160;141(R) is effective for business combinations with acquisition dates on or after fiscal years beginning after December&#160;15, 2008. The Company will evaluate this standard with respect to business combinations with acquisition dates on or after January&#160;1, 2009. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In December 2007, the FASB issued SFAS&#160;No.&#160;160, &#147;Noncontrolling Interests in Consolidated Financial Statements&#160;&#151; an Amendment of Accounting Research Bulletin&#160;No.&#160;51,&#148; which establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a parent&#146;s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS&#160;No.&#160;160 also establishes disclosure requirements to clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS&#160;No.&#160;160 is effective for fiscal years beginning after December&#160;15, 2008. The Company plans to implement this standard on January&#160;1, 2009. The implementation of SFAS&#160;No.&#160;160 is not expected to have a material impact on the Company&#146;s financial condition or operations as the effect will be on presentation and disclosure. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In March 2008, the FASB issued SFAS&#160;No.&#160;161, &#147;Disclosures about Derivative Instruments and Hedging Activities,&#148; which changes disclosure requirements for derivative instruments and hedging activities. SFAS&#160;No.&#160;161 requires enhanced disclosure, including qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. SFAS&#160;No.&#160;161 is effective for fiscal years beginning after November&#160;15, 2008. The Company plans to implement this standard on January&#160;1, 2009. As SFAS&#160;No.&#160;161 pertains to disclosure requirements, no effect to the Company&#146;s financial condition, operations or cash flows is expected. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On December&#160;31, 2008, the Securities and Exchange Commission (&#147;SEC&#148;) issued Release <FONT style="white-space: nowrap">No.&#160;33-8995,</FONT> &#147;Modernization of Oil and Gas Reporting,&#148; which revises disclosure requirements for oil and gas companies. In addition to changing the definition and disclosure requirements for oil and gas reserves, the new rules change the requirements for determining oil and gas reserve quantities. These rules permit the use of new technologies to determine proved reserves under certain criteria and allow companies to disclose their probable and possible reserves. The new rules also require companies to report the independence and qualifications of their reserves preparer or auditor and file reports when a third party is relied upon to prepare reserves estimates or conducts a reserves audit. The new rules also require that oil and gas reserves be reported and the full cost ceiling limitation be calculated using a twelve-month average price rather than period-end prices. The use of a twelve-month average price could have had an effect on the Company&#146;s 2008 depletion rates for its natural gas and crude oil properties. The new rule is effective for annual reports on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for fiscal years ending on or after December&#160;31, 2009, pending the potential alignment of certain accounting standards by the FASB with the new rule. The Company plans to implement the new requirements in its Annual Report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2009. The Company is currently evaluating the impact of this new rule on its consolidated financial statements. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">20.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Stockholders&#146; Equity</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table presents information regarding SandRidge&#146;s common stock (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="81%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Shares authorized </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 400,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 400,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Shares outstanding at end of period </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 166,046 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 141,843 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Shares held in treasury </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,326 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,456 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company is authorized to issue 50,000,000&#160;shares of preferred stock, $0.001&#160;par value, of which 2,625,000&#160;shares are designated as redeemable convertible preferred stock. As of December&#160;31, 2007, there were 2,184,286&#160;shares of redeemable convertible preferred stock outstanding and no other shares of preferred stock were outstanding. All shares of redeemable convertible preferred stock outstanding were converted to shares of the Company&#146;s common stock during 2008. See Note&#160;19. There were no shares of preferred stock outstanding as of December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Common Stock Issuance.</I>&#160;&#160;In January 2006, the Company issued 239,630&#160;shares of common stock upon exercise of an over-allotment option related to a December 2005 private placement of its common stock. The Company issued these shares at a price of $15.00 per share after deducting the purchasers&#146; fee of $0.3&#160;million. The Company received net proceeds from the sale of approximately $3.3&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In November 2006, the Company sold 5.3&#160;million common units (consisting of shares of common stock, $18.00 per share, and a warrant, $1.00 per share, to purchase convertible preferred stock upon the surrender of the common stock) as part of the NEG acquisition and received net proceeds from this sale of approximately $97.4&#160;million after deducting the offering expenses of approximately $3.9&#160;million. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In March 2007, the Company sold approximately 17.8&#160;million shares of common stock for net proceeds of $318.7&#160;million after deducting offering expenses of approximately $1.4&#160;million. The stock was sold in private sales to various investors including the Company&#146;s Chairman and Chief Executive Officer, who invested $61.4&#160;million in exchange for approximately 3.4&#160;million shares of common stock. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On November&#160;9, 2007, the Company completed the initial public offering of its common stock. The Company sold 32,379,500&#160;shares of its common stock, including 4,710,000&#160;shares sold directly to an entity controlled by the Company&#146;s Chairman and Chief Executive Officer, at a price of $26.00 per share. After deducting underwriting discounts of approximately $44.0&#160;million and offering expenses of approximately $3.1&#160;million, the Company received net proceeds of approximately $794.7&#160;million. The Company used the net proceeds from the offering as follows (in millions): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="92%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Repayment of outstanding balance and accrued interest on senior credit facility </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 515.9 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Repayment of note payable and accrued interest incurred in connection with recent acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49.1 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Excess cash to fund future capital expenditures </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 229.7 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 794.7 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During March 2008, the Company issued 3,465,593&#160;shares of common stock upon the conversion of 339,823&#160;shares of its redeemable convertible preferred stock. In May 2008, the Company converted the remaining outstanding 1,844,464&#160;shares of its redeemable convertible preferred stock into 18,810,260&#160;shares of its common stock as permitted under the terms of the redeemable convertible preferred stock. See additional discussion in Note&#160;19. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Treasury Stock.</I>&#160;&#160;The Company makes required tax payments on behalf of employees when their restricted stock awards vest and then withholds a number of vested shares having a value on the date of vesting equal to the tax obligation. As a result of such transactions, the Company withheld 80,724&#160;shares at a total value of $3.6&#160;million and 44,649&#160;shares at a total value of $0.8&#160;million during the years ended December&#160;31, 2008 and 2007, respectively. These shares were accounted for as treasury stock. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On June&#160;28, 2007, the Company purchased 39,844&#160;shares of its common stock into treasury through an open market repurchase transaction in order to fund a portion of its 401(k) matching obligation as described below. Cash consideration for these shares of approximately $0.8&#160;million was paid in July 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On June&#160;29, 2007, the Company transferred 72,044&#160;shares of its treasury stock to an account established for the benefit of the Company&#146;s 401(k) Plan. The transfer was made in order to satisfy the Company&#146;s $1.3&#160;million payable to match employee contributions made to the plan during 2006. Historical cost of the shares transferred totaled approximately $0.9&#160;million, resulting in an increase to the Company&#146;s additional paid-in capital of approximately $0.4&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In February 2008, the Company transferred 184,484&#160;shares of its treasury stock into an account established for the benefit of the Company&#146;s 401(k) Plan. The transfer was made in order to satisfy the Company&#146;s $5.0&#160;million accrued payable to match employee contributions made to the plan during 2007. The historical cost of the shares transferred totaled approximately $2.4&#160;million and resulted in an increase to the Company&#146;s additional paid-in capital of approximately $2.6&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During July 2008, the Company transferred 26,058&#160;shares of its treasury stock into an account established for the benefit of the Company&#146;s non-qualified deferred compensation plan. This transfer was made in order to satisfy the Company&#146;s $1.0&#160;million accrued payable to match participant contributions made to the non-qualified plan through March&#160;31, 2008. The historical cost of the shares transferred totaled approximately $0.4&#160;million and resulted in an increase to the Company&#146;s additional paid-in capital of approximately $0.6&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Restricted Stock.</I>&#160;&#160;The Company issues restricted stock awards under incentive compensation plans which vest over specified periods of time. Awards issued prior to 2006 had vesting periods of one, four or seven years. All awards issued during and after 2006 have four year vesting periods. Shares of restricted common stock are subject to restriction on transfer and certain conditions for vesting. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company granted restricted stock awards of approximately 1.6&#160;million shares in December 2005. The stock awards included (i)&#160;153,667&#160;shares scheduled to vest on December&#160;31, 2006, (ii)&#160;904,833&#160;shares scheduled to vest on June&#160;30, 2010, and (iii)&#160;493,667&#160;shares scheduled to vest on June&#160;30, 2013. In June 2006, the Company modified the vesting periods of the one year period and four year period restricted stock awards. One year restricted stock awards were modified to vest on October&#160;1, 2006, rather than December&#160;31, 2006, and four year restricted stock awards were modified to vest 25% each January&#160;1, for four years, beginning January&#160;1, 2007, rather than all vesting on June&#160;30, 2010. The Company recognized compensation cost related to these modifications of $17,250 in June 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Additionally, the Company modified the vesting period related to restricted shares awarded to certain executive officers who resigned in June 2006 and August 2006 as a component of their separations from the Company. The Board of Directors agreed to immediately vest all of the executive officers&#146; restricted stock, a total of 222,000&#160;shares, including 20,334&#160;shares which would have vested in 2006, 150,000&#160;shares which would have vested in 2010, and 51,666&#160;shares which would have vested in 2013. The Company recognized compensation cost related to these modifications of $2.3&#160;million in the year ended December&#160;31, 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In December 2006, the Company accelerated the vesting of 39,960 restricted shares on behalf of certain employees who resigned from the Company in late December 2006. These shares were scheduled to vest on January&#160;1, 2007. The Company recognized additional compensation cost in December 2006 for these shares of approximately $0.1&#160;million due to the modification. Other restricted shares held by these employees were forfeited. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Restricted stock activity for the year ended December&#160;31, 2008 was as follows (shares in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="74%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="11%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Number of<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average Grant<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Shares</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Date Fair Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unvested restricted shares outstanding at December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,927 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 19.25 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Granted </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,638 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 41.15 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Vested </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (440 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 30.47 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Canceled </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (132 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 19.41 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unvested restricted shares outstanding at December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,993 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 30.71 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> For the years ended December&#160;31, the Company recognized stock-based compensation expense related to restricted stock of approximately $18.8&#160;million in 2008, $7.2&#160;million in 2007 and $8.8&#160;million in 2006. Stock-based compensation expense is reflected in general and administrative expense in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As of December&#160;31, 2008, there was approximately $73.3&#160;million of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 3.0&#160;years. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> false --12-31 2008-12-31 10-K 0001349436 167625519 No Large Accelerated Filer 8000000000 SANDRIDGE ENERGY, INC. No No &#x00A0; &#x00A0; 157000 1421000 7636000 0.21 0.46 -9.26 -0.05 -0.37 -0.1 0.16 0.09 -9.36 14885000 -14885000 1296000 379000 917000 5966000 3167000 2799000 -9651000 -9650000 -1000 458351000 458328000 23000 26321000 173568000 290917000 21958000 201111000 270000 45537000 0 5106000 0 3639000 98436000 44211000 26186000 -1051000 -7445000 -781000 -956000 -4372000 -1398000 5023000 1496000 -151000 -1354000 -402000 -230974000 -2369840000 -7500000 -12291000 -60732000 -211439000 115076000 94253000 186655000 &#x00A0; &#x00A0; 2877167000 2521930000 460243000 653629000 35149000 106192000 159004000 4654000 19557000 30594000 2848531000 4676072000 &#x00A0; &#x00A0; 8956000 0.001 0.001 10328000 3343000 3343000 94741000 102746000 215497000 366337000 259610000 215698000 1878000 -26238000 -215675000 395000 230000 1686113000 2170986000 3900000 3900000 4500000 4500000 4594000 4594000 299000 15998000 5623000 1867497000 864000 275000 57716000 84497000 3630566000 3655058000 226452000 355913000 0 14144000 119432000 21100000 0 0 45731000 38948000 63135000 636000 -6783000 24187000 -62499000 0.001 0.001 400000000 400000000 143299000 167372000 141843000 166046000 140000 163000 351261000 490593000 2519961000 348000 28923000 -47530000 1820000 0 49350000 0 55626000 227109000 361365000 20018000 6327000 4594000 -1023000 -1777000 -9273000 122896000 107765000 207602000 55634000 61780000 109372000 21857000 79745000 -1479608000 967000 4372000 1398000 1599000 2371000 2191000 6236000 29524000 -38328000 12046000 75299000 41165000 14144000 -938000 -1730000 307000 -22238000 12374000 -20603000 -2131000 -5069000 127000 -2648000 -19061000 3735000 2373000 -157000 -157000 -1421000 -1421000 -7636000 -7636000 -16904000 -117185000 -147027000 991000 4694000 3569000 15079000 83567000 131183000 3993000 3686000 1408288000 2861507000 3630566000 3655058000 313628000 232106000 402624000 15350000 16532000 1052299000 2358784000 4672000 30000 -296000 276000 -855000 1266435000 1052316000 1267755000 -1340567000 -1385581000 -1909443000 67349000 357452000 579189000 15621000 15621000 50221000 50221000 -1441280000 -1441280000 11654000 10333000 -1457512000 -15124000 -107114000 -141461000 101252000 477612000 908689000 36981000 186859000 -1338147000 20787000 41407000 26818000 39118000 29305000 53541000 70448000 16817000 11963000 7956000 6088000 118000 729000 1454000 25045000 18878000 18324000 -500000 -1661000 -3553000 -15749000 -26540000 -17904000 -1054075000 -116650000 -3388000 -1528000 -306541000 -1280848000 -2058415000 -618000 -144000 -5497000 -42277000 -42277000 -8596000 -8596000 -33321000 -17552000 3967000 39888000 16232000 0.001 0.001 47375000 47375000 0 0 0 0 0 0 100776000 1114660000 439486000 1261910000 1331541000 3252209000 2373000 19742000 9034000 158781000 2528000 1748000 450715000 0 2625000 2625000 2184000 0 2184000 0 -518870000 -1332219000 -1944542000 31660000 32843000 99216000 -1358296000 139049000 73197000 47199000 388242000 677452000 1181814000 8792000 8792000 7202000 7202000 18784000 18784000 289002000 -14885000 243920000 73000 77229000 -17335000 649818000 574868000 92000 92693000 -17835000 1766891000 1686113000 140000 99216000 -18578000 793521000 2170986000 163000 -1358296000 -19332000 236284000 236284000 236271000 13000 97433000 97427000 6000 1113364000 1113314000 50000 -18578000 -19332000 -500000 -500000 -1661000 -1000 -1660000 -3553000 -3553000 74664000 110041000 155619000 73727000 108828000 155619000 203000 EX-100.SCH 3 sd-20081231.xsd SCHEMA DOCUMENT 148601- Statement - Consolidated Statements of Changes in Stockholders Equity link:presentationLink 152221 Statement - Consolidated Statements of Cash Flows (Parenthetical) link:presentationLink 104021 Statement - Consolidated Balance Sheets (Parenthetical) link:presentationLink 995410 - Document Document and Entity Information link:presentationLink link:presentationLink EX-100.CAL 4 sd-20081231_cal.xml CALCULATION LINKBASE DOCUMENT EX-100.LAB 5 sd-20081231_lab.xml LABELS LINKBASE DOCUMENT EX-100.PRE 6 sd-20081231_pre.xml PRESENTATION LINKBASE DOCUMENT EX-100.DEF 7 sd-20081231_def.xml DEFINITION LINKBASE DOCUMENT XML 8 R8.xml IDEA: Document and Entity Information 1.0.0.3 false Document and Entity Information (USD $) In Billions, except Share data false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 0 sd_DocumentEntityInformation sd false na duration string Document and Entity Information false false false false false true false false false 1 false false 0 0 false false Document and Entity Information false 3 1 dei_EntityRegistrantName dei false na duration normalizedstring No definition available. false false false false false false false false false 1 false false 0 0 SANDRIDGE ENERGY, INC. SANDRIDGE ENERGY, INC. false false No definition available. No authoritative reference available. false 4 1 dei_EntityCentralIndexKey dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 0001349436 0001349436 false false No definition available. No authoritative reference available. false 5 1 dei_DocumentType dei false na duration normalizedstring No definition available. false false false false false false false false false 1 false false 0 0 10-K 10-K false false No definition available. No authoritative reference available. false 6 1 dei_DocumentPeriodEndDate dei false na duration date No definition available. false false false false false false false false false 1 false false 0 0 2008-12-31 2008-12-31 false false No definition available. No authoritative reference available. false 7 1 dei_AmendmentFlag dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 false false false false No definition available. No authoritative reference available. false 8 1 dei_CurrentFiscalYearEndDate dei false na duration monthday No definition available. false false false false false false false false false 1 false false 0 0 --12-31 --12-31 false false No definition available. No authoritative reference available. false 9 1 dei_EntityWellKnownSeasonedIssuer dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 No No false false No definition available. No authoritative reference available. false 10 1 dei_EntityVoluntaryFilers dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 No No false false No definition available. No authoritative reference available. false 11 1 dei_EntityCurrentReportingStatus dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 No No false false No definition available. No authoritative reference available. false 12 1 dei_EntityFilerCategory dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Large Accelerated Filer Large Accelerated Filer false false No definition available. No authoritative reference available. false 13 1 dei_EntityPublicFloat dei false credit instant monetary No definition available. false false false false false false false false false 1 true true 8000000000 8 false false No definition available. No authoritative reference available. false 14 1 dei_EntityCommonStockSharesOutstanding dei false na instant shares No definition available. false false false false false false false false false 1 false true 167625519 167625519.00 false false No definition available. No authoritative reference available. false false 1 13 false Billions NoRounding UnKnown false true XML 9 R3.xml IDEA: Consolidated Balance Sheets (Parenthetical) 1.0.0.3 false Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 0 sd_ConsolidatedBalanceSheetsParenthetical sd false na duration string Consolidated Balance Sheets (Parenthetical) false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false Consolidated Balance Sheets (Parenthetical) false 3 1 sd_RedeemableConvertiblePreferredStockParOrStatedValuePerShare sd false credit instant monetary Par value per share of redeemable convertible preferred stock. false false false false false false false false false 1 true true 0.001 0.001 false false 2 true true 0.001 0.001 false false Par value per share of redeemable convertible preferred stock. No authoritative reference available. false 4 1 us-gaap_RedeemableConvertiblePreferredStockSharesAuthorized us-gaap true na instant shares The maximum number of redeemable convertible preferred shares permitted to be issued by an entity's charter and bylaws. false false false false false false false false false 1 false true 2625000 2625 false false 2 false true 2625000 2625 false false The maximum number of redeemable convertible preferred shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 false 5 1 us-gaap_RedeemableConvertiblePreferredStockSharesIssued us-gaap true na instant shares The number of redeemable convertible preferred shares that have been sold (or granted) to the entity's shareholders. Shares... false false false false false false false false false 1 false true 0 0 false false 2 false true 2184000 2184 false false The number of redeemable convertible preferred shares that have been sold (or granted) to the entity's shareholders. Shares issued includes shares outstanding and shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 false 6 1 us-gaap_RedeemableConvertiblePreferredStockSharesOutstanding us-gaap true na instant shares The number of redeemable convertible preferred shares that have been issued and are held by the entity's shareholders. Shares... false false false false false false false false false 1 false true 0 0 false false 2 false true 2184000 2184 false false The number of redeemable convertible preferred shares that have been issued and are held by the entity's shareholders. Shares outstanding equals shares issued minus shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 false 7 1 us-gaap_PreferredStockParOrStatedValuePerShare us-gaap true na instant decimal Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of... false false false false false false false false false 1 false true 0.001 0.001 false false 2 false true 0.001 0.001 false false Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 false 8 1 us-gaap_PreferredStockSharesAuthorized us-gaap true na instant shares The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer)... false false false false false false false false false 1 false true 47375000 47375 false false 2 false true 47375000 47375 false false The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 false 9 1 us-gaap_PreferredStockSharesIssued us-gaap true na instant shares Total number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) issued to... false false false false false false false false false 1 false true 0 0 false false 2 false true 0 0 false false Total number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) issued to shareholders (includes also preferred shares that have been repurchased). May be all or portion of the number of preferred shares authorized. These shares represent the ownership interest of the preferred shareholders. Excludes preferred shares that are classified as debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 false 10 1 us-gaap_PreferredStockSharesOutstanding us-gaap true na instant shares Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the... false false false false false false false false false 1 false true 0 0 false false 2 false true 0 0 false false Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 false 11 1 us-gaap_CommonStockParOrStatedValuePerShare us-gaap true na instant decimal Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. false false false false false false false false false 1 false true 0.001 0.001 false false 2 false true 0.001 0.001 false false Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 12 1 us-gaap_CommonStockSharesAuthorized us-gaap true na instant shares The maximum number of common shares permitted to be issued by an entity's charter and bylaws. false false false false false false false false false 1 false true 400000000 400000 false false 2 false true 400000000 400000 false false The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 13 1 us-gaap_CommonStockSharesIssued us-gaap true na instant shares Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that have... false false false false false false false false false 1 false true 167372000 167372 false false 2 false true 143299000 143299 false false Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that have been repurchased). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued includes shares outstanding and shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 14 1 us-gaap_CommonStockSharesOutstanding us-gaap true na instant shares Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized.... false false false false false false false false false 1 false true 166046000 166046 false false 2 false true 141843000 141843 false false Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Excludes common shares repurchased by the entity and held as Treasury shares. Shares outstanding equals shares issued minus shares held in treasury. Does not include common shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false false 2 13 false Thousands Thousands UnKnown false true XML 10 R4.xml IDEA: Consolidated Statements of Cash Flows 1.0.0.3 false Consolidated Statements of Cash Flows (USD $) In Thousands false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 3 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 8 6 us-gaap_IncomeLossFromContinuingOperationsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 9 7 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 true true -1441280000 -1441280 false false 2 true true 50221000 50221 false false 3 true true 15621000 15621 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 false 13 9 us-gaap_AdjustmentForAmortizationAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 14 10 us-gaap_ProvisionForDoubtfulAccounts us-gaap true debit duration monetary Amount of the current period expense charged against operations, the offset which is generally to the allowance for doubtful... false false false false false false false false false 1 false true 1748000 1748 false false 2 false false 0 0 false false 3 false true 2528000 2528 false false Amount of the current period expense charged against operations, the offset which is generally to the allowance for doubtful accounts for the purpose of reducing receivables, including notes receivable, to an amount that approximates their net realizable value (the amount expected to be collected). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 5 -Article 5 false 15 9 us-gaap_DepreciationAndAmortization us-gaap true debit duration monetary The current period expense charged against earnings on long-lived, physical assets used in the normal conduct of business and... false false false false false false false false false 1 false true 361365000 361365 false false 2 false true 227109000 227109 false false 3 false true 55626000 55626 false false The current period expense charged against earnings on long-lived, physical assets used in the normal conduct of business and not intended for resale to allocate or recognize the cost of assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset. Examples include buildings, production equipment and customer lists. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 4, 5 true 16 8 us-gaap_AssetImpairmentCharges us-gaap true debit duration monetary The charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair... false false false false false false false false false 1 false true 1867497000 1867497 false false 2 false false 0 0 false false 3 false false 0 0 false false The charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 45, 46, 47 true 17 8 us-gaap_AmortizationOfFinancingCostsAndDiscountsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 18 9 us-gaap_AmortizationOfFinancingCosts us-gaap true debit duration monetary The component of interest expense comprised of the periodic charge against earnings over the life of the financing... false false false false false false false false false 1 false true 5623000 5623 false false 2 false true 15998000 15998 false false 3 false true 299000 299 false false The component of interest expense comprised of the periodic charge against earnings over the life of the financing arrangement to which such costs relate. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 8 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 8 -Article 9 false 19 8 us-gaap_DeferredIncomeTaxesAndTaxCreditsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 20 9 us-gaap_DeferredIncomeTaxExpenseBenefit us-gaap true debit duration monetary The component of income tax expense for the period representing the net change in the entity's deferred tax assets and... false false false false false false false false false 1 false true -47530000 -47530 false false 2 false true 28923000 28923 false false 3 false true 348000 348 false false The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph b false 21 8 us-gaap_AssetImpairmentChargesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 22 9 us-gaap_WriteOffOfInventory us-gaap true debit duration monetary The charge against earnings that represents the reduction of the currently-stated financial value of inventory items based on... false false false false false false false false false 1 false false 0 0 false false 2 false true 203000 203 false false 3 false false 0 0 false false The charge against earnings that represents the reduction of the currently-stated financial value of inventory items based on a determination that future worth is less than the acquisition cost due to obsolescence or market changes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 24 9 us-gaap_UnrealizedGainLossOnDerivativesAndCommodityContractsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 25 10 sd_UnrealizedLossgainOnDerivativeContracts sd false credit duration monetary The (increases) decreases in the market value of derivative contracts which were included in earnings in the period. false false false false false false false false false 1 false true -215675000 -215675 false false 2 false true -26238000 -26238 false false 3 false true 1878000 1878 false false The (increases) decreases in the market value of derivative contracts which were included in earnings in the period. No authoritative reference available. false 26 8 us-gaap_GainLossOnSaleOfPropertyPlantEquipmentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 27 9 us-gaap_GainLossOnSaleOfPropertyPlantEquipment us-gaap true credit duration monetary The difference between the sale price or salvage price and the book value of a property, plant, and equipment asset that was... false false false false false false false false false 1 false true -9273000 -9273 false false 2 false true -1777000 -1777 false false 3 false true -1023000 -1023 false false The difference between the sale price or salvage price and the book value of a property, plant, and equipment asset that was sold or retired during the reporting period. This element refers to the gain (loss). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 28 8 sd_InterestIncomeRestrictedDeposits sd false debit duration monetary Interest earned on cash and equivalents whose use in whole or in part is restricted for the long-term, generally by... false false false false false false false false false 1 false true -402000 -402 false false 2 false true -1354000 -1354 false false 3 false true -151000 -151 false false Interest earned on cash and equivalents whose use in whole or in part is restricted for the long-term, generally by contractual agreements or regulatory requirements. No authoritative reference available. false 29 8 us-gaap_IncomeLossFromEquityMethodInvestmentsNetOfDividendsOrDistributionsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 30 9 sd_IncomeFromEquityInvestments sd false credit duration monetary Income from equity method investments based on entity's ownership percentage. false false false false false false false false false 1 false true -1398000 -1398 false false 2 false true -4372000 -4372 false false 3 false true -956000 -956 false false Income from equity method investments based on entity's ownership percentage. No authoritative reference available. false 32 9 us-gaap_ShareBasedCompensationAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 33 10 us-gaap_ShareBasedCompensation us-gaap true debit duration monetary The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options,... false false false false false false false false false 1 false true 18784000 18784 false false 2 false true 7202000 7202 false false 3 false true 8792000 8792 false false The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 34 8 us-gaap_MinorityInterestInNetIncomeLossOfConsolidatedEntities us-gaap true debit duration monetary Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one... false false false false false false false false false 1 false true 855000 855 false false 2 false true -276000 -276 false false 3 false true 296000 296 false false Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 18 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 10 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 14 -Subparagraph (e) -Article 9 false 37 9 us-gaap_IncreaseDecreaseInReceivablesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 38 10 us-gaap_IncreaseDecreaseInReceivables us-gaap true credit duration monetary The net change during the reporting period in the total amount due within one year (or one operating cycle) from all parties,... false false false false false false false false false 1 false true 3735000 3735 false false 2 false true -19061000 -19061 false false 3 false true -2648000 -2648 false false The net change during the reporting period in the total amount due within one year (or one operating cycle) from all parties, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 39 9 us-gaap_IncreaseDecreaseInInventoriesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 40 10 us-gaap_IncreaseDecreaseInInventories us-gaap true credit duration monetary The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated... false false false false false false false false false 1 false true 307000 307 false false 2 false true -1730000 -1730 false false 3 false true -938000 -938 false false The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 41 9 us-gaap_IncreaseDecreaseInOtherOperatingAssets us-gaap true credit duration monetary The net change during the reporting period in other operating assets not otherwise defined in the taxonomy. false false false false false false false false false 1 false true -20603000 -20603 false false 2 false true 12374000 12374 false false 3 false true -22238000 -22238 false false The net change during the reporting period in other operating assets not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 45 11 us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 46 12 us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet us-gaap true credit duration monetary For entities with classified balance sheets, the net change during the reporting period in the value of other assets or... false false false false false false false false false 1 false true 127000 127 false false 2 false true -5069000 -5069 false false 3 false true -2131000 -2131 false false For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 47 10 us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities us-gaap true debit duration monetary The net change during the reporting period in the aggregate amount of obligations and expenses incurred but not paid. false false false false false false false false false 1 false true 41165000 41165 false false 2 false true 75299000 75299 false false 3 false true 12046000 12046 false false The net change during the reporting period in the aggregate amount of obligations and expenses incurred but not paid. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 48 9 us-gaap_IncreaseDecreaseInBillingInExcessOfCostOfEarnings us-gaap true debit duration monetary The net change during the reporting period in the liability reflecting cash payments received before the related costs have... false false false false false false false false false 1 false true 14144000 14144 false false 2 false false 0 0 false false 3 false false 0 0 false false The net change during the reporting period in the liability reflecting cash payments received before the related costs have been incurred. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 49 5 us-gaap_NetCashProvidedByUsedInOperatingActivities us-gaap true na duration monetary The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the... false false false false false false false false false 1 false true 579189000 579189 false false 2 false true 357452000 357452 false false 3 false true 67349000 67349 false false The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 53 7 us-gaap_PaymentsToAcquireProductiveAssetsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 54 8 us-gaap_PaymentsToAcquireProductiveAssets us-gaap true credit duration monetary The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software,... false false false false false false false false false 1 false true -2058415000 -2058415 false false 2 false true -1280848000 -1280848 false false 3 false true -306541000 -306541 false false The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c true 55 7 us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquiredAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 56 8 us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired us-gaap true credit duration monetary The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. false false false false false false false false false 1 false false 0 0 false false 2 false true -116650000 -116650 false false 3 false true -1054075000 -1054075 false false The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 true 58 8 us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipmentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 59 9 us-gaap_ProceedsFromSaleOfProductiveAssets us-gaap true debit duration monetary The cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets. false false false false false false false false false 1 false true 158781000 158781 false false 2 false true 9034000 9034 false false 3 false true 19742000 19742 false false The cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph c true 60 9 us-gaap_ProceedsFromSaleMaturityAndCollectionsOfInvestments us-gaap true debit duration monetary The cash inflow associated with the sale, maturity and collection of all investments such as debt, security and so forth... false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false true 2373000 2373 false false The cash inflow associated with the sale, maturity and collection of all investments such as debt, security and so forth during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16 true 61 9 us-gaap_ProceedsFromSaleOfWaterAndWasteWaterSystemsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 62 10 us-gaap_PaymentsToAcquireEquityMethodInvestments us-gaap true credit duration monetary The cash outflow associated with the purchase of or advances to an equity method investments, which are investments in joint... false false false false false false false false false 1 false true -1528000 -1528 false false 2 false false 0 0 false false 3 false true -3388000 -3388 false false The cash outflow associated with the purchase of or advances to an equity method investments, which are investments in joint ventures and entities in which the entity has an equity ownership interest normally of 20 to 50 percent and exercises significant influence. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph b false 63 7 sd_LoansToUnconsolidatedInvestees sd false debit duration monetary Cash outflow associated with long-term loans to investees (such as unconsolidated subsidiaries and joint ventures) to which... false false false false false false false false false 1 false true -7500000 -7500 false false 2 false false 0 0 false false 3 false false 0 0 false false Cash outflow associated with long-term loans to investees (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. No authoritative reference available. false 64 6 us-gaap_PaymentsForProceedsFromInvestmentsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 65 7 sd_RefundsRestrictedDeposits sd false credit duration monetary Refunds of restricted deposits false false false false false false false false false 1 false false 0 0 false false 2 false true 10328000 10328 false false 3 false false 0 0 false false Refunds of restricted deposits No authoritative reference available. false 66 7 sd_FundingsRestrictedDeposits sd false credit duration monetary Fundings of restricted deposits false false false false false false false false false 1 false true -781000 -781 false false 2 false true -7445000 -7445 false false 3 false true -1051000 -1051 false false Fundings of restricted deposits No authoritative reference available. false 67 7 us-gaap_IncreaseDecreaseInRestrictedCash us-gaap true credit duration monetary The net cash inflow (outflow) for the net change associated with funds that are not available for withdrawal or use (such as... false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false true 2373000 2373 false false The net cash inflow (outflow) for the net change associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16, 17 false 68 5 us-gaap_NetCashProvidedByUsedInInvestingActivities us-gaap true debit duration monetary The net cash inflow (outflow) from investing activity. false false false false false false false false false 1 false true -1909443000 -1909443 false false 2 false true -1385581000 -1385581 false false 3 false true -1340567000 -1340567 false false The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 74 9 us-gaap_ProceedsFromIssuanceOfLongTermDebtAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 75 10 us-gaap_ProceedsFromIssuanceOfLongTermDebt us-gaap true debit duration monetary The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. false false false false false false false false false 1 false true 3252209000 3252209 false false 2 false true 1331541000 1331541 false false 3 false true 1261910000 1261910 false false The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b true 77 9 us-gaap_RepaymentsOfLongTermDebtAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 78 10 us-gaap_RepaymentsOfLongTermDebt us-gaap true credit duration monetary The cash outflow for debt initially having maturity due after one year or beyond the normal operating cycle, if longer. false false false false false false false false false 1 false true -1944542000 -1944542 false false 2 false true -1332219000 -1332219 false false 3 false true -518870000 -518870 false false The cash outflow for debt initially having maturity due after one year or beyond the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b true 80 7 us-gaap_PaymentsOfOrdinaryDividendsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 81 8 us-gaap_PreferredStockDividends us-gaap true debit duration monetary The amount of dividends declared or paid in the period to preferred shareholders, or the amount for which the obligation to... false false false false false false false false false 1 false true -17552000 -17552 false false 2 false true -33321000 -33321 false false 3 false false 0 0 false false The amount of dividends declared or paid in the period to preferred shareholders, or the amount for which the obligation to pay them dividends arose in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph b false 82 6 us-gaap_ProceedsFromPaymentsToMinorityShareholdersAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 83 7 us-gaap_PaymentsToMinorityShareholders us-gaap true credit duration monetary The cash outflow to return capital to noncontrolled interest, which generally occurs when minority shareholders reduce their... false false false false false false false false false 1 false true -5497000 -5497 false false 2 false true -144000 -144 false false 3 false true -618000 -618 false false The cash outflow to return capital to noncontrolled interest, which generally occurs when minority shareholders reduce their ownership stake (in a subsidiary of the entity). This element does not include dividends paid to minority shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 85 7 us-gaap_ProceedsFromIssuanceOrSaleOfEquityAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 86 8 us-gaap_ProceedsFromIssuanceOfCommonStock us-gaap true debit duration monetary The cash inflow from the additional capital contribution to the entity. false false false false false false false false false 1 false false 0 0 false false 2 false true 1114660000 1114660 false false 3 false true 100776000 100776 false false The cash inflow from the additional capital contribution to the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a false 87 8 us-gaap_ProceedsFromIssuanceOfConvertiblePreferredStock us-gaap true debit duration monetary The cash inflow from issuance of preferred stocks identified as being convertible into another form of financial instrument,... false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false true 439486000 439486 false false The cash inflow from issuance of preferred stocks identified as being convertible into another form of financial instrument, typically the entity's common stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a false 88 7 us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities us-gaap true debit duration monetary Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation)... false false false false false false false false false 1 false true 4594000 4594 false false 2 false false 0 0 false false 3 false false 0 0 false false Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A240 -Subparagraph i Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 00-15 -Paragraph 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 2 false 89 7 us-gaap_PaymentsForRepurchaseOfEquityAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 90 8 us-gaap_PaymentsForRepurchaseOfEquity us-gaap true credit duration monetary The cash outflow to reacquire common and preferred stock. false false false false false false false false false 1 false true -3553000 -3553 false false 2 false true -1661000 -1661 false false 3 false true -500000 -500 false false The cash outflow to reacquire common and preferred stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a true 92 8 us-gaap_PaymentsOfFinancingCostsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 93 9 us-gaap_PaymentsOfDebtIssuanceCosts us-gaap true credit duration monetary The cash outflow paid to third parties in connection with debt origination, which will be amortized over the remaining... false false false false false false false false false 1 false true -17904000 -17904 false false 2 false true -26540000 -26540 false false 3 false true -15749000 -15749 false false The cash outflow paid to third parties in connection with debt origination, which will be amortized over the remaining maturity period of the associated long-term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 95-13 false 94 5 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary The net cash inflow (outflow) from financing activity for the period. false false false false false false false false false 1 false true 1267755000 1267755 false false 2 false true 1052316000 1052316 false false 3 false true 1266435000 1266435 false false The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 95 4 us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease us-gaap true na duration monetary The net change between the beginning and ending balance of cash and cash equivalents false false false false false false false false false 1 false true -62499000 -62499 false false 2 false true 24187000 24187 false false 3 false true -6783000 -6783 false false The net change between the beginning and ending balance of cash and cash equivalents Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 96 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of... false false false false false false true false false 1 false true 63135000 63135 false false 2 false true 38948000 38948 false false 3 false true 45731000 45731 false false Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Subparagraph fn1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 false 97 3 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of... false false false false false false false true false 1 false true 636000 636 false false 2 false true 63135000 63135 false false 3 false true 38948000 38948 false false Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Subparagraph fn1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 false 98 3 us-gaap_IncomeTaxesPaidNetAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 99 4 us-gaap_InterestPaidNet us-gaap true credit duration monetary The amount of cash paid during the current period for interest owed on money borrowed, net of interest capitalized. false false false false false false false false false 1 false true 131183000 131183 false false 2 false true 83567000 83567 false false 3 false true 15079000 15079 false false The amount of cash paid during the current period for interest owed on money borrowed, net of interest capitalized. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph e true 100 4 us-gaap_IncomeTaxesPaidNet us-gaap true credit duration monetary The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net... false false false false false false false false false 1 false true 2191000 2191 false false 2 false true 2371000 2371 false false 3 false true 1599000 1599 false false The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph (f) true 101 3 us-gaap_ScheduleOfConversionsOfStockTextBlock us-gaap true na duration string This text block may be used to disclose all or some of the information related to converting stock into another financial... false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false This text block may be used to disclose all or some of the information related to converting stock into another financial instrument(s) in a noncash (or part noncash) transaction. It may include a description sufficient information to understand the nature and purpose of the conversion, as well as the financial instruments converted from and to (for example, preferred, common, treasury, etc.). Noncash is defined as transactions during a period that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period. false 102 4 us-gaap_CapitalExpendituresIncurredButNotYetPaid us-gaap true credit duration monetary Future cash outflow to pay for purchases of fixed assets that have occurred. false false false false false false false false false 1 false true 119432000 119432 false false 2 false false 0 0 false false 3 false false 0 0 false false Future cash outflow to pay for purchases of fixed assets that have occurred. No authoritative reference available. false 103 4 sd_RedeemableConvertiblePreferredStockDividendsNetDividendsPaid sd false na duration monetary Redeemable convertible preferred stock dividends, net of dividends paid false false false false false false false false false 1 false false 0 0 false false 2 false true 8956000 8956 false false 3 false false 0 0 false false Redeemable convertible preferred stock dividends, net of dividends paid No authoritative reference available. false 104 4 us-gaap_ConversionOfStockTable us-gaap true na duration string This table may be used to disclose all the information related to converting stock into another financial instrument(s) in a... false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false This table may be used to disclose all the information related to converting stock into another financial instrument(s) in a noncash (or part noncash) transaction. It may include a description sufficient information to understand the nature and purpose of the conversion, as well as the financial instruments converted from and to (for example, preferred, common, treasury, etc.) the amounts converted, the new shares issued, and the value of the new shares issued, if applicable. Noncash is defined as transactions during a period that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period. false 105 5 sd_InsurancePremiumsFinanced sd false credit duration monetary Insurance premiums financed false false false false false false false false false 1 false false 0 0 false false 2 false true 1496000 1496 false false 3 false true 5023000 5023 false false Insurance premiums financed No authoritative reference available. false 106 5 us-gaap_ConversionOfStockLineItems us-gaap true na duration string Line Items are concepts that are used for one or more categories which are presented in the form of a table. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false Line Items are concepts that are used for one or more categories which are presented in the form of a table. false 107 6 sd_AccretionOnRedeemableConvertiblePreferredStock sd false debit duration monetary Accretion on redeemable convertible preferred stock false false false false false false false false false 1 false true 7636000 7636 false false 2 false true 1421000 1421 false false 3 false true 157000 157 false false Accretion on redeemable convertible preferred stock No authoritative reference available. false 108 6 us-gaap_StockIssued us-gaap true debit duration monetary The fair value of stock issued in noncash financing activities. false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false true 236284000 236284 false false The fair value of stock issued in noncash financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 false 109 6 us-gaap_LiabilitiesAssumed us-gaap true debit duration monetary The fair value of liabilities assumed in Noncash investing or financing activities. false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 true true 313628000 313628 false false The fair value of liabilities assumed in Noncash investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 false false 3 79 false Thousands UnKnown UnKnown false true XML 11 R9.xml IDEA: Notes to Consolidated Financial Statements 1.0.0.3 false Notes to Consolidated Financial Statements false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 0 sd_FinancialNotes sd false na duration string Financial Notes false false false false false true false false false 1 false false 0 0 false false Financial Notes false 3 1 us-gaap_SignificantAccountingPoliciesTextBlock us-gaap true na duration string This element may be used to describe all significant accounting policies of the reporting entity. false false false false false false false false false 1 false false 0 0 <html> <!-- NOTE 1 --> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Summary of Significant Accounting Policies</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Nature of Business.</I>&#160;&#160;SandRidge Energy, Inc. (successor to Riata Energy, Inc.) and its subsidiaries (collectively, the &#147;Company&#148; or &#147;SandRidge&#148;) is an independent natural gas and oil company concentrating on exploration, development and production activities. The Company also owns and operates natural gas gathering and treating facilities and CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> treating and transportation facilities and has marketing and tertiary oil recovery operations. In addition, Lariat Services, Inc. (&#147;Lariat&#148;), a wholly owned subsidiary, owns and operates drilling rigs and a related oil field services business. The Company&#146;s primary exploration, development and production areas are concentrated in West Texas. The Company also operates interests in the Mid-Continent, the Cotton Valley Trend in East Texas, the Gulf Coast and the Gulf of Mexico. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Principles of Consolidation.</I>&#160;&#160;The consolidated financial statements include the accounts of SandRidge Energy, Inc. and its wholly owned or majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Reclassifications.</I>&#160;&#160;Certain reclassifications have been made to prior period financial statements to conform to current period presentation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Use of Estimates.</I>&#160;&#160;The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Estimates of natural gas and crude oil reserves and their values, future production rates and future costs and expenses are inherently uncertain for numerous reasons, including many factors beyond the Company&#146;s control. Reservoir engineering is a subjective process of estimating underground accumulations of natural gas and crude oil that cannot be measured in an exact manner. The accuracy of any reserve estimate is a function of the quality of data available and of engineering and geological interpretation and judgment. In addition, estimates of reserves may be revised based on actual production, results of subsequent exploration and development activities, prevailing commodity prices, operating costs and other factors. These revisions may be material and could materially affect the Company&#146;s future depletion, depreciation and amortization expenses. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s revenue, profitability and future growth are substantially dependent upon the prevailing and future prices for natural gas and crude oil, each of which depend on numerous factors beyond the Company&#146;s control such as economic conditions, regulatory developments and competition from other energy sources. The energy markets historically have been volatile and natural gas and crude oil prices may be subject to significant fluctuations in the future. A substantial or extended decline in natural gas and crude oil prices could have a material adverse effect on the Company&#146;s financial position, results of operations, cash flows and quantities of natural gas and crude oil reserves that may be economically produced. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Cash and Cash Equivalents.</I>&#160;&#160;The Company considers all highly-liquid instruments with a maturity of three months or less when purchased to be cash equivalents as these instruments are readily convertible to known amounts of cash and bear insignificant risk of changes in value due to their short maturity period. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Accounts Receivable, Net.</I>&#160;&#160;The Company has receivables for sales of natural gas, crude oil and natural gas liquids, as well as receivables related to the exploration and treating services for natural gas, crude oil and natural gas liquids. Management has established an allowance for doubtful accounts. The allowance is evaluated by management and is based on management&#146;s review of the collectability of the receivables in light of historical experience, the nature and volume of the receivables and other subjective factors. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Inventories.</I>&#160;&#160;Inventories consist of oil field services supplies and are stated at the lower of cost or market with cost determined on an average cost basis. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Investments.</I>&#160;&#160;Investments in affiliated companies are accounted for under the equity method in circumstances where the Company is deemed to exercise significant influence over the operating and investing policies of the investee but does not have control. Under the equity method, the Company recognizes its share of the investee&#146;s earnings in its consolidated statements of operations. Investments in affiliated companies not accounted for under the equity method are accounted for under the cost method. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Debt Issuance Costs.</I>&#160;&#160;The Company amortizes debt issuance costs related to its long-term debt as interest expense over the scheduled maturity period of the debt. Unamortized debt issuance costs were approximately $38.2&#160;million as of December&#160;31, 2008 and approximately $26.0&#160;million as of December&#160;31, 2007. The Company includes the unamortized costs in other assets in its consolidated balance sheets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Revenue Recognition and Gas Balancing.</I>&#160;&#160;Natural gas and crude oil revenues are recorded when title passes to the customer, net of royalties, discounts and allowances, as applicable. The Company accounts for natural gas and crude oil production imbalances using the sales method, whereby the Company recognizes revenue on all natural gas and crude oil sold to its customers notwithstanding the fact that its ownership may be less than 100% of the natural gas and crude oil sold. Liabilities are recorded by the Company for imbalances greater than the Company&#146;s proportionate share of remaining estimated natural gas and crude oil reserves. The Company has recorded a liability for gas imbalance positions related to natural gas properties with insufficient proved reserves of $1.7&#160;million and $1.6&#160;million at December&#160;31, 2008 and 2007, respectively. The Company includes the gas imbalance positions in other long-term obligations in its consolidated balance sheets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company recognizes revenues and expenses generated from daywork drilling contracts as the services are performed as the Company does not bear the risk of completion of the well. Under turnkey contracts, the Company bears the risk of completion of the well; therefore, revenues and expenses are recognized when the well is substantially completed. Under this method, substantial completion is determined when the well bore reaches the depth stated in the contract. The duration of daywork and turnkey contracts typically ranges from 20 to 90&#160;days. The entire amount of a loss, if any, is recorded when the loss is determinable. The costs of uncompleted drilling contracts include expenses incurred to date on turnkey contracts that are still in process at the end of the period. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company may receive lump-sum fees for the mobilization of equipment and personnel. Mobilization fees received and costs incurred to mobilize a rig from one market to another are recognized over the term of the related drilling contract. The contract terms typically range from 20 to 90&#160;days. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Revenues from the midstream services segment are derived from providing gathering, compression, treating, balancing and sales services for producers and wholesale customers on its natural gas gathering systems. Midstream gas services are primarily undertaken to realize incremental margins on natural gas purchased at the wellhead and provide value-added services to customers. In general, natural gas purchased and sold by the midstream gas business is priced at a published daily or monthly index price plus or minus a negotiated differential. Sales to wholesale customers typically incorporate a premium for managing their transmission and balancing requirements. Revenues are recognized upon delivery of natural gas to customers <FONT style="white-space: nowrap">and/or</FONT> when services are rendered, pricing is determinable and collectability is reasonably assured. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Revenue from sales of CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> is recognized when the product is delivered to the customer. The Company recognizes service fees related to the transportation of CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> as revenue when the related service is provided. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Environmental Costs.</I>&#160;&#160;Environmental expenditures are expensed or capitalized, as appropriate, depending on future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities related to future costs are recorded on an undiscounted basis when environmental assessments <FONT style="white-space: nowrap">and/or</FONT> remediation activities are probable and costs can be reasonably estimated. Environmental costs accrued at December&#160;31, 2008 and 2007 were not material. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Natural Gas and Crude Oil Operations.</I>&#160;&#160;The Company uses the full cost method to account for its natural gas and crude oil properties. Under full cost accounting, all costs directly associated with the acquisition, and development of natural gas and crude oil reserves are capitalized into a full cost pool. These capitalized costs include costs of all unproved properties, internal costs directly related to the Company&#146;s acquisition, exploration and development activities and capitalized interest. During 2008, the Company capitalized internal costs of $19.1&#160;million to the full cost pool. The Company did not capitalize any interest expense to the full cost pool in 2008. During 2007, the Company capitalized internal costs and interest expense of $4.6&#160;million and $0.3&#160;million, respectively, to the full cost pool. No internal costs or interest expense were capitalized to the full cost pool in 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Capitalized costs are amortized using a unit-of-production method. Under this method, the provision for depreciation, depletion and amortization is computed at the end of each quarter by multiplying total production for the quarter by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the quarter. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Costs associated with unproved properties are excluded from the total unamortized cost base until a determination has been made as to the existence of proved reserves. Unproved properties are reviewed at the end of each quarter to determine whether the costs incurred should be reclassified to the full cost pool and, thereby, subjected to amortization. Sales and abandonments of natural gas and crude oil properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized, unless the adjustments would significantly alter the relationship between capitalized costs and proved natural gas and crude oil reserves. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25% of the reserve quantities of a cost center. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Under the full cost method of accounting, total capitalized costs of natural gas and crude oil properties, net of accumulated depreciation, depletion and amortization, less related deferred income taxes may not exceed an amount equal to the present value of future net revenues from proved reserves, discounted at 10% per annum, plus the lower of cost or fair value of unevaluated properties, plus estimated salvage value, less the related tax effects (the &#147;ceiling limitation&#148;). A ceiling limitation calculation is performed at the end of each quarter. If total capitalized costs, net of accumulated depreciation, depletion and amortization, less related deferred taxes are greater than the ceiling limitation, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a non-cash charge that reduces earnings and impacts stockholders&#146; equity in the period of occurrence and typically results in lower depreciation, depletion and amortization expense in future periods. Once incurred, a write-down is not reversible at a later date. See Note&#160;8. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The ceiling limitation calculation uses natural gas and crude oil prices in effect as of the balance sheet date, as adjusted for basis or location differentials as of the balance sheet date and held constant over the life of the reserves (&#147;net wellhead prices&#148;). If applicable, these net wellhead prices would be further adjusted to include the effects of any fixed price arrangements for the sale of natural gas and crude oil. The Company may, from time-to-time, use derivative financial instruments to hedge against the volatility of natural gas and crude oil prices. Derivative contracts that qualify and are designated as cash flow hedges are included in estimated future cash flows. Historically, the Company has not designated any of its derivative contracts as cash flow hedges and has therefore not included its derivative contracts in estimating future cash flows. The future cash outflows associated with future development or abandonment of wells are included in the computation of the discounted present value of future net revenues for purposes of the ceiling limitation calculation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The costs associated with unproved properties, initially excluded from the amortization base, relate to unproved leasehold acreage, wells and production facilities in progress and wells pending determination of the existence of proved reserves, together with capitalized interest costs for these projects. Unproved leasehold costs are transferred to the amortization base with the costs of drilling the related well once a determination of the existence of proved reserves has been made or upon impairment of a lease. Costs of seismic data are allocated to various unproved leaseholds and transferred to the amortization base with the associated leasehold costs on a specific project basis. Costs associated with wells in progress and completed wells that have yet to be evaluated are transferred to the amortization base once a determination is made whether or not proved reserves can be assigned to the property. Costs of dry holes are transferred to the amortization base immediately upon determination that the well is unsuccessful. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> All items classified as unproved property are assessed on a quarterly basis for possible impairment or reduction in value. Properties are assessed on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Property, Plant and Equipment, Net.</I>&#160;&#160;Other capitalized costs, including drilling equipment, natural gas gathering and treating equipment, transportation equipment and other property and equipment are carried at cost. Renewals and improvements are capitalized while repairs and maintenance are expensed. Depreciation of such property and equipment is computed using the straight-line method over the estimated useful lives of the assets ranging from 3 to 39&#160;years. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Realization of the carrying value of property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are considered to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset including disposal value, if any, is less than the carrying amount of the asset. If any asset is considered impaired, the loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> When property and equipment components are disposed of, the cost and the related accumulated depreciation are removed and any resulting gain or loss is reflected in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Asset Retirement Obligation.</I>&#160;&#160;The Company owns natural gas and crude oil properties that require expenditures to plug and abandon the wells when the natural gas and crude oil reserves in the wells are depleted. These expenditures are recorded in the period in which the liability is incurred (at the time the wells are drilled or acquired). Asset retirement obligations are recorded as a liability at their estimated present value at the asset&#146;s inception, with the offsetting increase to property cost. Periodic accretion expense of the estimated liability is recorded in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Asset retirement obligations primarily represent the Company&#146;s estimate of fair value to plug, abandon and remediate the natural gas and crude oil properties at the end of their productive lives, in accordance with applicable state laws. The Company determines its asset retirement obligations by calculating the present value of estimated expenses related to the liability. Estimating the future asset retirement obligations requires management to make estimates and judgments regarding timing, existence of a liability and what constitutes adequate restoration. Inherent in the present value calculation rates are the timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the related asset. The following shows the activity of the asset retirement obligation for the years ended December 31 (in thousands). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="71%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation, January 1 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 58,580 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 45,216 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,979 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Liability incurred upon acquiring and drilling wells </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,707 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,265 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,996 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> NEG acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,343 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revisions in estimated cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,976 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,971 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,700 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Liability settled in current period </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (764 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (9 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accretion of discount expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,273 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,137 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 598 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation, December 31 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84,772 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 58,580 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,216 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less: current portion </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 275 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 864 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation, net of current </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 84,497 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 57,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 45,216 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The revisions in estimated cash flows for 2008 are primarily due to changes in reserve lives based on lower natural gas and crude oil prices at December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Income Taxes.</I>&#160;&#160;Deferred income taxes are recorded for temporary differences between financial reporting purposes and income tax bases. Temporary differences are differences between the amounts of assets and liabilities reported for financial reporting purposes and their tax bases. Deferred tax assets are recognized for temporary differences that will be deductible in future years&#146; tax returns and for operating loss and tax credit carryforwards. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years&#146; tax returns. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company accounts for uncertain tax positions in accordance with Financial Accounting Standards Board (&#147;FASB&#148;) Interpretation No.&#160;48 (&#147;FIN&#160;48&#148;), &#147;Accounting for Uncertainty in Income Taxes&#148;. Accordingly, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has elected an accounting policy in which interest and penalties on income tax related balances are presented as a component of income taxes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Minority Interest.</I>&#160;&#160;At December&#160;31, 2008 and 2007, minority interest in the Company&#146;s consolidated subsidiaries included a 1.29% interest in Cholla Pipeline, LP. At December&#160;31, 2007, minority interest in the Company&#146;s consolidated subsidiaries also included a 26.19% interest in Sagebrush Pipeline, LLC (&#147;Sagebrush&#148;). As a result of the sale of Sagebrush&#146;s assets in May 2008, the minority interest in Sagebrush was distributed. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Concentration of Risk.</I>&#160;&#160;The Company maintains cash balances at several financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. From time to time, the Company may have balances in these accounts that exceed the federally insured limit. The Company does not anticipate any loss associated with balances in excess of the federally insured limit. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> All of the Company&#146;s hedging transactions have been carried out in the over-the-counter market. The use of hedging transactions involves the risk that the counterparties may be unable to meet the financial terms of the transactions. The counterparties for all of the Company&#146;s hedging transactions have an &#147;investment grade&#148; credit rating. The Company monitors on an ongoing basis the credit ratings of its hedging counterparties and considers its counterparties&#146; credit default risk rating in determining the fair value of its derivative contracts. At December&#160;31, 2008, Barclays Capital, JPMorgan Chase Bank, Bank of America, Morgan Stanley, Bank of Montreal and Credit Suisse were the counterparties with respect to 81.7% of the Company&#146;s hedged future production. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The purchasers of the Company&#146;s natural gas and crude oil production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. The Company has not experienced any significant losses from uncollectible accounts. In 2008 and 2007, the Company had one individual purchaser accounting for 10.5% and 11.2%, respectively, of its total sales. In 2006, the Company had no individual purchasers accounting for more than 10% of its total sales. The Company believes other purchasers are available in its areas of operations and does not believe the loss of any one of its purchasers would materially affect the Company&#146;s ability to sell the natural gas and crude oil it produces. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Fair Value of Financial Instruments.</I>&#160;&#160;The fair values of the Company&#146;s cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. The fair value for the Company&#146;s publicly traded senior notes, which was based on market prices, was $961.3&#160;million (carrying value of $1.750&#160;billion) at December&#160;31, 2008. The Company&#146;s carrying value for its senior credit facility and remaining fixed rate debt instruments approximates fair value based on current rates applicable to similar instruments. The Company measured fair value of its long-term debt in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.&#160;157, &#147;Fair Value Measurements,&#148; giving consideration to the effect of the Company&#146;s credit risk. The estimated fair values of derivative contracts are based on quotes obtained from the counterparties to the derivative contracts. See Note&#160;3. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Derivative Financial Instruments.</I>&#160;&#160;To manage risks related to increases in interest rates and changes in natural gas and crude oil prices, the Company enters into interest rate swaps and natural gas and crude oil derivative contracts. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company recognizes all of its derivative instruments as either assets or liabilities at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based on the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. None of the Company&#146;s derivatives was designated as hedging instruments during 2008, 2007 and 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Stock-Based Compensation.</I>&#160;&#160;Effective January&#160;1, 2006, the Company adopted SFAS No.&#160;123R, &#147;Share-Based Payment.&#148; SFAS&#160;No.&#160;123R establishes the accounting for equity instruments exchanged for employee services. Under SFAS&#160;No.&#160;123R, stock-based compensation cost is measured based on the calculated fair value of the award on the grant date. The expense is recognized over the employee&#146;s requisite service period, generally the vesting period of the award. SFAS&#160;No.&#160;123R also requires the related excess tax benefit received upon exercise of stock options or vesting of restricted stock, if any, to be reflected in the statement of cash flows as a financing activity rather than as an operating activity. As of December&#160;31, 2008, the Company had $4.6&#160;million of excess tax benefits related to stock-based compensation. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Recent Accounting Pronouncements.</I>&#160;&#160;Effective January&#160;1, 2008, SandRidge implemented SFAS&#160;No.&#160;157 for its financial assets and liabilities measured on a recurring basis. SFAS&#160;No.&#160;157 defines fair value, establishes a framework for measuring fair value and expands required disclosures about fair value measurements. SFAS&#160;No.&#160;157 did not have an effect on the Company&#146;s financial statements on the date of adoption other than requiring additional disclosures regarding fair value measurements. See Note&#160;3. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In February 2008, the FASB issued Staff Position <FONT style="white-space: nowrap">FAS&#160;157-2,</FONT> &#147;Effective Date of FASB Statement No.&#160;157&#148; <FONT style="white-space: nowrap">(&#147;FSP&#160;157-2&#148;).</FONT> <FONT style="white-space: nowrap">FSP&#160;157-2</FONT> delays the effective date of SFAS&#160;No.&#160;157 to fiscal years beginning after November&#160;15, 2008 for all nonfinancial assets and nonfinancial liabilities, except those recognized or disclosed at fair value in the financial statements on a recurring basis, at least annually. The Company plans to implement this standard on January&#160;1, 2009. The adoption of <FONT style="white-space: nowrap">FSP&#160;157-2</FONT> is not expected to have a material impact on the Company&#146;s financial condition, operations or cash flows. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Effective upon issuance, the FASB issued Staff Position <FONT style="white-space: nowrap">FAS&#160;157-3,</FONT> &#147;Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active,&#148; <FONT style="white-space: nowrap">(&#147;FSP&#160;157-3&#148;)</FONT> in October 2008. <FONT style="white-space: nowrap">FSP&#160;157-3</FONT> clarifies the application of SFAS&#160;No.&#160;157 in determining the fair value of a financial asset when the market for that financial asset is not active. As of December&#160;31, 2008, the Company had no financial assets with a market that was not active. Accordingly, <FONT style="white-space: nowrap">FSP&#160;157-3</FONT> had no effect on the Company&#146;s current financial statements. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In December 2007, the FASB issued SFAS&#160;No.&#160;141(R), &#147;Business Combinations,&#148; which replaces SFAS&#160;No.&#160;141. SFAS&#160;No.&#160;141(R) establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired. SFAS&#160;No.&#160;141(R) also establishes disclosure requirements that will enable users to evaluate the nature and financial effects of the business combination. SFAS&#160;No.&#160;141(R) is effective for business combinations with acquisition dates on or after fiscal years beginning after December&#160;15, 2008. The Company will evaluate this standard with respect to business combinations with acquisition dates on or after January&#160;1, 2009. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In December 2007, the FASB issued SFAS&#160;No.&#160;160, &#147;Noncontrolling Interests in Consolidated Financial Statements&#160;&#151; an Amendment of Accounting Research Bulletin&#160;No.&#160;51,&#148; which establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a parent&#146;s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS&#160;No.&#160;160 also establishes disclosure requirements to clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS&#160;No.&#160;160 is effective for fiscal years beginning after December&#160;15, 2008. The Company plans to implement this standard on January&#160;1, 2009. The implementation of SFAS&#160;No.&#160;160 is not expected to have a material impact on the Company&#146;s financial condition or operations as the effect will be on presentation and disclosure. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In March 2008, the FASB issued SFAS&#160;No.&#160;161, &#147;Disclosures about Derivative Instruments and Hedging Activities,&#148; which changes disclosure requirements for derivative instruments and hedging activities. SFAS&#160;No.&#160;161 requires enhanced disclosure, including qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. SFAS&#160;No.&#160;161 is effective for fiscal years beginning after November&#160;15, 2008. The Company plans to implement this standard on January&#160;1, 2009. As SFAS&#160;No.&#160;161 pertains to disclosure requirements, no effect to the Company&#146;s financial condition, operations or cash flows is expected. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On December&#160;31, 2008, the Securities and Exchange Commission (&#147;SEC&#148;) issued Release <FONT style="white-space: nowrap">No.&#160;33-8995,</FONT> &#147;Modernization of Oil and Gas Reporting,&#148; which revises disclosure requirements for oil and gas companies. In addition to changing the definition and disclosure requirements for oil and gas reserves, the new rules change the requirements for determining oil and gas reserve quantities. These rules permit the use of new technologies to determine proved reserves under certain criteria and allow companies to disclose their probable and possible reserves. The new rules also require companies to report the independence and qualifications of their reserves preparer or auditor and file reports when a third party is relied upon to prepare reserves estimates or conducts a reserves audit. The new rules also require that oil and gas reserves be reported and the full cost ceiling limitation be calculated using a twelve-month average price rather than period-end prices. The use of a twelve-month average price could have had an effect on the Company&#146;s 2008 depletion rates for its natural gas and crude oil properties. The new rule is effective for annual reports on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for fiscal years ending on or after December&#160;31, 2009, pending the potential alignment of certain accounting standards by the FASB with the new rule. The Company plans to implement the new requirements in its Annual Report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2009. The Company is currently evaluating the impact of this new rule on its consolidated financial statements. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> &nbsp; 1.&#160;&#160; Summary of Significant Accounting Policies &nbsp; Nature of Business.&#160;&#160;SandRidge Energy, Inc. (successor to Riata false false This element may be used to describe all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8 false 4 1 us-gaap_BusinessCombinationDisclosureTextBlock us-gaap true na duration string Description of a business acquisition (or series of individually immaterial business combinations) planned, initiated, or... false false false false false false false false false 1 false false 0 0 <!-- NOTE 2 --> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Acquisitions and Dispositions</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">2006 Acquisitions and Dispositions</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company closed the following acquisitions in 2006: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In March 2006, the Company acquired from an executive officer and director an additional 12.5% interest in PetroSource Energy Company, LLC (&#147;PetroSource&#148;), a consolidated subsidiary. The acquisition consisted of the retirement of subordinated debt of approximately $1.0&#160;million and a $4.5&#160;million cash payment for the ownership interest acquired for a total acquisition price of approximately $5.5&#160;million. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In May 2006, the Company purchased certain leases in developed and undeveloped properties from an oil and gas company. The purchase price was approximately $40.9&#160;million in cash. The cash consideration was paid in July 2006. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In May 2006, the Company purchased several natural gas and crude oil properties from an oil and gas company. The purchase price was approximately $12.9&#160;million, comprised of $8.2&#160;million in cash, and 251,351&#160;shares of Company common stock, valued at $4.7&#160;million. The cash and equity consideration were paid in July 2006. </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In June 2006, the Company purchased certain producing well interests from an executive officer and director. The purchase price was approximately $9.0&#160;million in cash. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In June 2006, the Company acquired the remaining 1% interest in PetroSource from an oil and gas company. The purchase price was 27,749&#160;shares of Company common stock, valued at $0.5&#160;million. As a result of this acquisition, the Company became the 100% owner of PetroSource. </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The 2006 acquisitions described above were financed with approximately $63.7&#160;million in cash and the issuance of 279,100&#160;shares of common stock with an aggregate value of approximately $5.1&#160;million. Details are set forth below for each of the acquisition transactions (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="43%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="10%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=06 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=06 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=06 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=06 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=07 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=07 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=07 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=07 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consideration Paid</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Addition to<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Change in<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Retirement<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Common<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Property, Plant<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Minority<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>of Subordinated<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Stock No.<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Common<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Acquisition Transaction</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>&#038;Equipment</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Interest</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Debt(1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>of Shares</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Stock</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Cash</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> PetroSource additional interests </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,116 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,370 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,003 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5,489 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Purchased leases </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,960 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,960 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil properties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,850 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 251 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,650 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,200 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Producing well interest from executive officer and director </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 9,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 9,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> PetroSource additional interest (remaining 1% interest) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 85 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (393 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 478 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Totals </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 65,011 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,763 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,003 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 279 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5,128 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,649 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Includes retirement of subordinated debt of $972,000 and accrued interest of $31,000.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In July 2006, the Company sold leaseholds and lease and well equipment for $16.0&#160;million. The book basis of the assets at the time of the sale transaction was $3.7&#160;million resulting in a gain of $12.3&#160;million. The sale was accounted for as an adjustment to the full cost pool, with no gain recognized. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In November 2006, the Company acquired all of the outstanding membership interests in NEG Oil&#160;&#038; Gas LLC (&#147;NEG&#148;) for approximately $990.4&#160;million in cash, the assumption of $300.0&#160;million in debt, the receipt of cash of $21.1&#160;million and the issuance of 12,842,000&#160;shares of the Company&#146;s common stock, valued at approximately $231.2&#160;million. To finance the NEG acquisition, the Company entered into a $750.0&#160;million senior secured credit facility and an $850.0&#160;million senior unsecured bridge loan facility. The Company also issued $550.0&#160;million of redeemable convertible preferred stock and common units, consisting of shares of common stock and a warrant to purchase convertible preferred stock upon the surrender of the common stock, in a private placement to certain eligible purchasers. </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In the fourth quarter of 2007, the Company completed its valuation of assets acquired and liabilities assumed related to the NEG acquisition and allocated the appropriate fair values. Upon further refinement of the appraisal values, the Company increased its values assigned to the properties acquired and reduced the value assigned to goodwill of $26.2&#160;million. The allocation of the purchase price to specific assets and liabilities were based, in part, upon an appraisal of the fair value of NEG assets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table presents the final NEG acquisition purchase price allocation, including professional fees and other related acquisition costs, to the net assets acquired and liabilities assumed, based on the fair values at the acquisition date and including subsequent adjustments to the purchase price allocation (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="88%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,100 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts receivable </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30,840 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,025 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Property, plant and equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,524,072 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Restricted deposits </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,987 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 270 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,614,294 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts payable and other current liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46,082 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,189 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 281,641 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other long-term obligations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,357 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Asset retirement obligation </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,343 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,242,682 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less: Cash and cash equivalents acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (21,100 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net amount paid for acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,221,582 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Pro Forma Information</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The unaudited financial information in the table below summarizes the combined results of operations of SandRidge and NEG, on a pro forma basis, as though the companies had been combined as of January&#160;1, 2006. The pro forma financial information is presented for informational purposes only and does not necessarily reflect the results of operations that would have been achieved if the acquisition had taken place on January&#160;1, 2006 or the results that may occur in the future. The pro forma adjustments include estimates and assumptions based on currently available information. The Company believes the estimates and assumptions are reasonable, and the significant effects of the transactions are properly reflected. However, actual results may have differed materially from this pro forma financial information. The following table presents the actual results for the year ended December&#160;31, 2006 and the respective unaudited pro forma information to reflect the NEG acquisition (in thousands, except per share amounts): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>Year Ended December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Actual</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Pro Forma</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>(Unaudited)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 388,242 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 565,256 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15,621 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 36,337 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Basic and diluted earnings per share available to common stockholders: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.21 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.40 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net income available to common stockholders </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.16 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.04 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">2007 Acquisitions</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company closed the following acquisitions in 2007: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In October 2007, the Company purchased developed and undeveloped properties located in West Texas from an oil and gas company. The purchase price was approximately $73.8&#160;million, comprised of $25.0&#160;million in cash and a $48.8&#160;million note payable. The $25.0&#160;million cash consideration paid was funded through a draw on the Company&#146;s senior credit facility. All principal and accrued interest (accruing at 7% annually) due on the note payable were repaid in November 2007 with proceeds from the Company&#146;s initial public offering of its common stock. For additional discussion of the Company&#146;s initial public offering, refer to Note&#160;20 herein. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In November 2007, the Company purchased a gas treatment plant and related gathering system located in Pecos County, Texas. The purchase price of approximately $10.0&#160;million was paid in cash. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In November 2007, the Company purchased leasehold acreage and producing well interests located predominantly in the West Texas Overthrust (&#147;WTO&#148;) from a group of entities controlled by a significant shareholder. The purchase price of approximately $32.0&#160;million was paid in cash. </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">2008 Acquisitions and Dispositions</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company closed the following acquisitions and dispositions in 2008: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In May 2008, the Company sold all of its assets located in the Piceance Basin of Colorado. Assets sold included undeveloped acreage, working interests in wells, gathering and compression systems and other facilities related to the wells. Net proceeds to the Company were approximately $147.2&#160;million after closing adjustments. The portion of the Company&#146;s net proceeds attributable to the disposed gathering and compression systems and facilities exceeded the book basis of those assets resulting in a gain on sale of approximately $7.2&#160;million after closing adjustments. The sale of the acreage and working interests in wells was accounted for as an adjustment to the full cost pool with no gain or loss recognized. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In July 2008, the Company purchased land, minerals, developed and undeveloped leasehold and interests in producing properties through various transactions for an aggregate purchase price of approximately $67.6&#160;million, which was paid in cash. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> In October 2008, the Company purchased certain working interests and related reserves in Company wells owned by the Company&#146;s Chairman and Chief Executive Officer and certain of his affiliates. The purchase price of approximately $67.3&#160;million, after closing adjustments, was paid in cash. </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 2.&#160;&#160; Acquisitions and Dispositions &nbsp; 2006 Acquisitions and Dispositions &nbsp; The Company closed the following acquisitions in 2006: false false Description of a business acquisition (or series of individually immaterial business combinations) planned, initiated, or completed during the period, including background, timing, and allocation of acquisition costs. This element may be used as a single block of text to encapsulate the all disclosures (including data and tables) regarding business combinations including leverage buyout transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 false 5 1 us-gaap_FairValueDisclosuresTextBlock us-gaap true na duration string This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including... false false false false false false false false false 1 false false 0 0 <!-- NOTE 3 --> <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Fair Value Measurements</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Effective January&#160;1, 2008, the Company implemented SFAS&#160;No.&#160;157 for its financial assets and liabilities measured on a recurring basis. SFAS&#160;No.&#160;157 applies to all financial assets and liabilities that are measured and reported on a fair value basis. In February 2008, the FASB issued <FONT style="white-space: nowrap">FSP&#160;157-2,</FONT> which delayed the effective date of SFAS&#160;No.&#160;157 by one year for certain nonfinancial assets and liabilities. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As defined in SFAS&#160;No.&#160;157, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS&#160;No.&#160;157 requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair measurements. SFAS&#160;No.&#160;157 requires fair value measurements to be classified and disclosed in one of the following categories: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="8%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="90%">&nbsp;</TD> <!-- colindex=02 type=maindata --> </TR> <!-- Table Width Row END --> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Level&#160;1: </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="top"> Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Level&#160;2: </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="top"> Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Level&#160;3: </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="top"> Measured based on prices or valuation models that required inputs that are both significant to the fair value measurement and less observable for objective sources (i.e., supported by little or no market activity). </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As required by SFAS&#160;No.&#160;157, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company&#146;s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values, stated below, takes into account the market for the Company&#146;s financial assets and liabilities, the associated credit risk and other factors as required under SFAS&#160;No.&#160;157. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As required by SFAS&#160;No.&#160;157, the Company has classified its derivative contracts into one of three levels based upon the data relied upon to determine the fair value. The fair values of the Company&#146;s natural gas and crude oil swaps, crude oil collars and interest rate swap are based upon quotes obtained from counterparties to the derivative contracts. The Company reviews other readily available market prices for its derivative contracts as there is an active market for these contracts; however, the Company does not have access to specific valuation models used by the counterparties. Included in these models are discount factors that the Company must estimate in its calculation. Additionally, the Company applies a credit default risk rating factor for its counterparties in determining the fair value of its derivative contracts. Based on the inputs for the fair value measurement, the Company classified its derivative contract assets and liabilities as Level&#160;3. The following table summarizes the valuation of the Company&#146;s financial assets and liabilities as of December&#160;31, 2008 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="43%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="13%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fair Value Measurements Using:</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Quoted Prices in<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Significant<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Active Markets for<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Other<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Significant<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Identical Assets<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Observable<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Unobservable<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Assets/<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>or Liabilities<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Inputs<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Inputs<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(Liabilities) at<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Description</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(Level 1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(Level 2)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(Level 3)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fair Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Assets (liabilities): </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Natural gas and crude oil derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 246,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 246,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Interest rate swap </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (8,745 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (8,745 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 237,903 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 237,903 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The table below sets forth a reconciliation of the Company&#146;s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level&#160;3)&#160;during the year ended December&#160;31, 2008 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Derivatives</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Balance of Level&#160;3, December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 22,228 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total gains or losses (realized/unrealized) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 203,998 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Purchases, issuances and settlements </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,677 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Transfers in and out of Level&#160;3 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Balance of Level&#160;3, December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 237,903 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Changes in unrealized gains (losses) on derivative contracts held as of December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,675 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 3.&#160;&#160; Fair Value Measurements &nbsp; Effective January&#160;1, 2008, the Company implemented SFAS&#160;No.&#160;157 for its financial assets and false false This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 false 6 1 us-gaap_ScheduleOfAccountsAndNotesReceivableTextBlock us-gaap true na duration string Disclosure itemizing the various types of trade accounts and notes receivable, and for each the gross carrying value,... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Accounts Receivable</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> A summary of trade accounts receivable is as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="80%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil sales </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 72,266 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 72,393 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and oil services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,476 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,622 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Joint interest billing </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 13,816 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,874 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 62 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 90 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 106,620 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 96,979 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less allowance for doubtful accounts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,874 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,238 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total trade accounts receivable, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 102,746 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 94,741 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table shows the balance in the allowance for doubtful accounts and activity for the years ended December&#160;31, 2006, 2007 and 2008 (in thousands). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="53%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Additions<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Balance at<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Charged to<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Balance at<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Beginning<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Costs and<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>End of<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Allowance for Doubtful Accounts</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>of Period</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Expenses</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Deductions(1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Period</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Year ended December&#160;31, 2006 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 851 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,528 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (354 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,025 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Year ended December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,025 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (787 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,238 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Year ended December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,238 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,748 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (112 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,874 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Deductions represent the write-off of receivables.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s customer, SemGroup, L.P. and certain of its subsidiaries (collectively, &#147;SemGroup&#148;), filed for bankruptcy on July&#160;22, 2008. During the third quarter of 2008, the Company established an allowance in the amount of $1.5&#160;million for all amounts due from SemGroup. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> 4.&#160;&#160; Accounts Receivable &nbsp; A summary of trade accounts receivable is as follows (in thousands): &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; false false Disclosure itemizing the various types of trade accounts and notes receivable, and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the valuation allowance for receivables is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of origination fees and costs, including the amortization method for net deferred fees or costs (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status and (7) the treatment of foreclosures or repossessions (8) the nature and amount of any guarantees to repurchase receivables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 false 7 1 sd_OtherCurrentAssetsTextblock sd false na duration string Other Current Assets. false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Other Current Assets</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Other current assets consist of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="81%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Prepaid insurance </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9,374 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9,379 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Prepaid drilling </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,657 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,924 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Materials and supplies </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,751 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deposits </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 26,806 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 60 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,415 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 673 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 41,407 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 20,787 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 5.&#160;&#160; Other Current Assets &nbsp; Other current assets consist of the following (in thousands): &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; false false Other Current Assets. No authoritative reference available. false 8 1 us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock us-gaap true na duration string Disclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Property, Plant and Equipment</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Property, plant and equipment consists of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="74%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil properties: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Proved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,676,072 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,848,531 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unproved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 259,610 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total natural gas and crude oil properties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,891,770 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,108,141 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less accumulated depreciation, depletion and impairment(1) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,369,840 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (230,974 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net natural gas and crude oil properties capitalized costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,521,930 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,877,167 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Land </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,149 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Non natural gas and crude oil equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 764,792 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 539,893 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Buildings and structures </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 71,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,288 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 847,901 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 579,330 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less accumulated depreciation, depletion and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (194,272 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (119,087 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net capitalized costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 653,629 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 460,243 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total property, plant and equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,175,559 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,337,410 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Includes ceiling limitation impairment charge of $1,855.0&#160;million at December&#160;31, 2008.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The amount of capitalized interest included in the above non natural gas and crude oil equipment balance at December&#160;31, 2008 and 2007 was approximately $3.8&#160;million and $3.4&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In July 2007, the Company purchased property to serve as its corporate headquarters. The 3.51-acre site contains four buildings and is located in downtown Oklahoma City, Oklahoma. The purchase price was approximately $29.5&#160;million in cash. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In May 2008, the Company completed the sale of all of its assets located in the Piceance Basin of Colorado. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The average composite rates used for depreciation, depletion and amortization were $2.82 per Mcfe in 2008, $2.64 per Mcfe in 2007 and $1.68 per Mcfe in 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Costs Excluded from Amortization</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Costs associated with unproved properties of $215.7&#160;million as of December&#160;31, 2008 were excluded from amounts subject to amortization. The following table summarizes the costs related to unproved properties which have been excluded from natural gas and crude oil properties being amortized at December&#160;31, 2008 and the year in which they were incurred: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="60%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Excluded<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Costs at<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Year Cost Incurred</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Property acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 179,888 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 35,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Exploration </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Development </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Capitalized interest </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 179,888 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 35,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company expects to complete the majority of the evaluation activities within six years from the applicable date of acquisition, contingent on the Company&#146;s capital expenditures and drilling program. In addition, the Company&#146;s internal engineers evaluate all properties on at least an annual basis. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 6.&#160;&#160; Property, Plant and Equipment &nbsp; Property, plant and equipment consists of the following (in thousands): &nbsp; &nbsp; &nbsp; false false Disclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 4, 5 false 9 1 us-gaap_EquityMethodInvestmentsDisclosureTextBlock us-gaap true na duration string Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name... false false false false false false false false false 1 false false 0 0 <HTML> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Investment in Affiliated Companies</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company accounts for certain investments under the equity method when the Company owns more than 20% and has significant influence, but does not control the investee company. The Company&#146;s equity method investments include the following: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Grey Ranch, L.P.</I>&#160;&#160;Grey Ranch, L.P. (&#147;Grey Ranch&#148;) is primarily engaged in treating and transportation of natural gas. The Company purchased its investment during 2003. At December&#160;31, 2008 and 2007, the Company owned 50% of Grey Ranch and had approximately $6.1&#160;million and $4.2&#160;million, respectively, recorded in the consolidated balance sheets relating to this investment. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Larclay, L.P.</I>&#160;&#160;The Company and Clayton Williams Energy, Inc. (&#147;CWEI&#148;) each own a 50% interest in Larclay, L.P. (&#147;Larclay&#148;), a limited partnership formed to acquire drilling rigs and provide land drilling services. The Company serves as the operations manager of the partnership. CWEI was responsible for securing financing and the purchase of the rigs. The partnership financed the acquisition cost of the rigs with a loan from a third party, secured by the purchased rigs, and a loan from CWEI. In addition, CWEI has guaranteed a portion of the third party debt. As a result of current economic conditions and the resulting on-going cash shortfalls experienced by Larclay, the Company recorded an impairment for its investment in Larclay as of December&#160;31, 2008. See Note&#160;8 for a discussion of impairment. At December&#160;31, 2007, the Company had approximately $3.8&#160;million included in the consolidated balance sheets relating to this investment. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </DIV><!-- END PAGE WIDTH --> </HTML> 7.&#160;&#160; Investment in Affiliated Companies &nbsp; The Company accounts for certain investments under the equity method when the Company owns more false false Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 false 10 1 us-gaap_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock us-gaap true na duration string Describes an entity's accounting policy for recognizing and measuring the impairment of long-lived assets. An entity also may... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Impairment</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Full Cost Ceiling Limitation.</I>&#160;&#160;Under the full cost method of accounting, the net book value of oil and gas properties, less related deferred income taxes, may not exceed a calculated &#147;ceiling.&#148; The ceiling limitation is the discounted estimated after-tax future net revenue from proved natural gas and crude oil properties, excluding future cash outflows associated with settling asset retirement obligations included in the net book value of natural gas and crude oil properties, plus the cost of properties not subject to amortization. In calculating future net revenues, prices and costs used are those as of the end of the appropriate period. These prices are not changed except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. The Company has entered into various commodity derivative contracts; however, these derivative contracts are not accounted for as cash flow hedges. Accordingly, the effect of these derivative contracts has not been considered in calculating the full cost ceiling limitation as of December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The net book value, less related deferred tax liabilities, is compared to the ceiling limitation on a quarterly and annual basis. Any excess of the net book value, less related deferred taxes, is written off as an expense. An expense recorded in one period may not be reversed in a subsequent period even though higher natural gas and crude oil prices may have increased the ceiling limitation in the subsequent period. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During the fourth quarter of 2008, the Company reduced the carrying value of its oil and gas properties by $1,855.0&#160;million due to the full cost ceiling limitations. The after-tax effect of this reduction in 2008 was $1,677.5&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Larclay, L.P.</I>&#160;&#160;Lariat and CWEI each own a 50% interest in Larclay, a limited partnership formed in 2006 to acquire drilling rigs and provide land drilling services. At December&#160;31, 2008, Lariat&#146;s investment in Larclay was $4.8&#160;million. During 2008, Larclay experienced cash shortfalls as a result of its principal payments due pursuant to its rig loan agreement. As permitted under the Larclay partnership agreement, Lariat provided loans to Larclay to offset the cash shortfalls. At December&#160;31, 2008, the notes outstanding to Larclay and related interest receivable were $7.5&#160;million and $0.2&#160;million, respectively. With the significant decline in natural gas and crude oil prices in the fourth quarter of 2008, the demand for Larclay&#146;s drilling rigs and land drilling services has decreased. Due to current economic conditions, current natural gas and crude oil prices and the continued cash shortfalls for Larclay, Lariat has fully impaired both the investment in and notes receivable due from Larclay as of December&#160;31, 2008. This resulted in an impairment expense of approximately $12.5&#160;million included in the consolidated statement of operations. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 8.&#160;&#160; Impairment &nbsp; Full Cost Ceiling Limitation.&#160;&#160;Under the full cost method of accounting, the net book value of oil and gas false false Describes an entity's accounting policy for recognizing and measuring the impairment of long-lived assets. An entity also may disclose its accounting policy for long-lived assets to be sold. This policy excludes goodwill and intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 7-15, 26, 30-37 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section CC -Paragraph 3 -Subparagraph false 11 1 sd_RestrictedDepositsTextBlock sd false na duration string Restricted Deposits. false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="3%"></TD> <TD width="97%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Restricted Deposits</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Restricted deposits represent bank trust and escrow accounts required by the Minerals Management Service of the United States Department of the Interior, surety bond underwriters, purchase agreements or other settlement agreements to satisfy the Company&#146;s eventual responsibility to plug and abandon wells and remove structures when certain offshore fields are no longer in use. These restricted deposits relate to properties acquired as part of the NEG acquisition in November 2006. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> One of the agreements requires the Company to deposit additional funds in an escrow account equal to 10% of the net proceeds, as defined, from certain of its offshore properties. In 2007, the Company was released from obligations under two of the escrow agreements. As a result, funds totaling $10.3&#160;million were released from escrow accounts and returned to the Company. During 2008 and 2007, the Company deposited approximately $0.8&#160;million and $7.4&#160;million, respectively, in escrow accounts. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> 9.&#160;&#160; Restricted Deposits &nbsp; Restricted deposits represent bank trust and escrow accounts required by the Minerals Management Service of the false false Restricted Deposits. No authoritative reference available. false 12 1 us-gaap_AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock us-gaap true na duration string Description and amounts of accounts payable and accrued disclosure at the end of the reporting period. This element may be... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Accounts Payable and Accrued Expenses</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Trade accounts payable and accrued expenses consist of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts payable </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 302,407 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 154,423 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Redeemable convertible preferred stock dividends </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Payroll and benefits </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,703 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,690 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Drilling advances </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,074 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,817 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Settlement agreement&#160;&#151;&#160;current (See Note&#160;12) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accrued interest </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 26,790 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 24,201 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,363 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,410 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total trade accounts payable and accrued expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 366,337 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,497 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 10.&#160;&#160; Accounts Payable and Accrued Expenses &nbsp; Trade accounts payable and accrued expenses consist of the following (in thousands): &nbsp; false false Description and amounts of accounts payable and accrued disclosure at the end of the reporting period. This element may be used for the entire disclosure as a single block of text. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20, 24 -Article 5 false 13 1 sd_BillingsInExcessCostsIncurred sd false na duration string Billings in Excess of Costs Incurred false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Billings in Excess of Costs Incurred</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In June 2008, the Company entered into an agreement with a subsidiary of Occidental Petroleum Corporation (&#147;Occidental&#148;) to construct a CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> treating plant (the &#147;Century Plant&#148;) and associated compression and pipeline facilities for $800.0&#160;million. Occidental will pay a minimum of 100% of the contract price, plus any subsequent <FONT style="white-space: nowrap">agreed-upon</FONT> revisions, to the Company through periodic cost reimbursements based upon the percentage of the project completed. Upon <FONT style="white-space: nowrap">start-up,</FONT> the Century Plant, located in Pecos County, Texas, will be owned and operated by Occidental for the purpose of separating and removing CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> from delivered natural gas. The Company will deliver high CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> natural gas to the Century Plant. Pursuant to a <FONT style="white-space: nowrap">30-year</FONT> treating agreement executed simultaneously with the construction agreement, Occidental will remove CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> from the Company&#146;s delivered natural gas. The Company will retain all methane gas from the Century Plant and its other existing plants. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company accounts for construction of the Century Plant using the completed-contract method, under which contract revenues and costs are recognized when work under the contract is completed or substantially completed. In the interim, costs incurred on and billings related to contracts in process are accumulated on the balance sheet. Provisions for a contract loss are recognized when it is determined that a loss will be incurred. During 2008, the Company issued and received payment for progress billings totaling $112.0&#160;million. Billings in excess of costs incurred during 2008 were $14.1&#160;million and were reported as a current liability in the consolidated balance sheet at December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> 11.&#160;&#160; Billings in Excess of Costs Incurred &nbsp; In June 2008, the Company entered into an agreement with a subsidiary of Occidental Petroleum false false Billings in Excess of Costs Incurred No authoritative reference available. false 14 1 us-gaap_LongTermDebtTextBlock us-gaap true na duration string This element may be used as a single block of text to encapsulate the entire disclosure for long-term borrowings including... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">12.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Long-Term Debt</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Long-term obligations consist of the following (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="75%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Senior credit facility </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 573,457 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other notes payable: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling rig fleet and related crude oil field services equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 33,030 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 47,836 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Mortgage </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,829 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 19,651 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other equipment and vehicles </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 162 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 8.625%&#160;Senior Term Loan </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 650,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Senior Floating Rate Term Loan </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 350,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 8.625%&#160;Senior Notes due 2015 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 650,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Senior Floating Rate Notes due 2014 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 350,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 8.0%&#160;Senior Notes due 2018 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 750,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,375,316 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,067,649 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less: Current maturities of long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,532 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,358,784 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,052,299 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Senior Credit Facility.</I>&#160;&#160;On November&#160;21, 2006, the Company entered into a $750.0&#160;million senior secured revolving credit facility (the &#147;senior credit facility&#148;). As discussed further below, the borrowing base has been increased and was $1.1&#160;billion at December&#160;31, 2008. The senior credit facility matures on November&#160;21, 2011 and is available to be drawn on and repaid without restriction so long as the Company is in compliance with its terms, including certain financial covenants. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The senior credit facility contains various covenants that limit the ability of the Company and certain of its subsidiaries to grant certain liens; make certain loans and investments; make distributions; redeem stock; redeem or prepay debt; merge or consolidate with or into a third party; or engage in certain asset dispositions, including a sale of all or substantially all of the Company&#146;s assets. Additionally, the senior credit facility limits the ability of the Company and certain of its subsidiaries to incur additional indebtedness with certain exceptions, including under the senior notes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The senior credit facility also contains financial covenants, including maintenance of agreed upon levels for the (i)&#160;ratio of total funded debt to EBITDAX (as defined in the senior credit facility), which may not exceed 4.5:1.0 calculated using the last four completed fiscal quarters, (ii)&#160;ratio of EBITDAX to interest expense plus current maturities of long-term debt, which must be at least 2.5:1.0 calculated using the last four completed fiscal quarters, and (iii)&#160;current ratio, which must be at least 1.0:1.0. In the current ratio calculation, as defined in the senior credit facility, any amounts available to be drawn under the senior credit facility are included in current assets, and unrealized assets and liabilities resulting from mark-to-market adjustments on the Company&#146;s derivative contracts are disregarded. As of December&#160;31, 2008, the Company was in compliance with all of the financial covenants under the senior credit facility. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The obligations under the senior credit facility are guaranteed by certain Company subsidiaries. Additionally, the obligations under the senior credit facility are secured by first priority liens on all shares of capital stock of each of the Company&#146;s present and future subsidiaries; all intercompany debt of the Company; and substantially all of the Company&#146;s assets, including proved natural gas and crude oil reserves representing at least 80% of the discounted present value (as defined in the senior credit facility) of proved natural gas and crude oil reserves reviewed in determining the borrowing base for the senior credit facility. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> At the Company&#146;s election, interest under the senior credit facility is determined by reference to (i)&#160;the London Interbank Offered Rate (&#147;LIBOR&#148;) plus an applicable margin between 1.25% and 2.00% per annum or (ii)&#160;the higher of the federal funds rate plus 0.5% or the prime rate plus, in either case, an applicable margin between 0.25% and 1.00% per annum. Interest is payable quarterly for prime rate loans and at the applicable maturity date for LIBOR loans, except that if the interest period for a LIBOR loan is six months, interest is paid at the end of each three-month period. The average interest rate paid on amounts outstanding under the senior credit facility was 3.82% for the year ended December&#160;31, 2008. The interest rate on the senior credit facility was 2.19% at December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Borrowings under the senior credit facility may not exceed the lower of the borrowing base or the committed loan amount, which was increased to $1.75&#160;billion in April 2008. The borrowing base of proved reserves was initially set at $300.0&#160;million. The borrowing base was subsequently increased to $400.0&#160;million in May 2007, $700.0&#160;million in September 2007 and $1.2&#160;billion in April 2008. As a result of the private placement of $750.0&#160;million of senior notes in May 2008, discussed below, the borrowing base was reduced to $1.1&#160;billion. The Company&#146;s borrowing base is redetermined in April and October of each year based on proved reserves. Our ability to develop properties and changes in commodity prices have an impact on the borrowing base. The Company incurred additional costs related to the senior credit facility as a result of changes to the borrowing base. These costs have been deferred and are included in other assets in the consolidated balance sheets. At December&#160;31, 2008, the Company had $573.5&#160;million outstanding and approximately $494.0&#160;million available to be drawn under this facility, excluding amounts to be funded by Lehman Brothers Commodity Services, Inc. (&#147;Lehman Brothers&#148;). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On October&#160;3, 2008, Lehman Brothers, a lender under the Company&#146;s senior credit facility, filed for bankruptcy. At the time that its parent, Lehman Brothers Holdings, Inc., declared bankruptcy on September&#160;15, 2008, Lehman Brothers elected not to fund its pro rata share, or 0.29%, of borrowings requested by the Company under the senior credit facility. Accordingly, the Company does not anticipate that Lehman Brothers will fund its pro rata share of any future borrowing requests. The Company currently does not expect this reduced availability of amounts under the senior credit facility to impact its liquidity or business operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Other Indebtedness.</I>&#160;&#160;The Company has financed a portion of its drilling rig fleet and related oil field services equipment through notes. At December&#160;31, 2008, the aggregate outstanding balance of these notes was $33.0&#160;million, with annual fixed interest rates ranging from 7.64% to 8.67%. The notes have a final maturity date of December&#160;1, 2011, require aggregate monthly installments of principal and interest in the amount of $1.2&#160;million and are secured by the equipment. The notes have a prepayment penalty (currently ranging from 1% to 2%) that is triggered if the Company repays the notes prior to maturity. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On November&#160;15, 2007, the Company entered into a note payable with a lending institution in the amount of $20.0&#160;million as a mortgage on the downtown Oklahoma City property purchased by the Company in July 2007 to serve as its corporate headquarters. This note is fully secured by one of the buildings and a parking garage located on the downtown property, bears interest at 6.08% annually and matures on November&#160;15, 2022. Payments of principal and interest in the amount of approximately $0.5&#160;million are due on a quarterly basis through the maturity date. During 2008, the Company made payments of principal and interest on this note totaling $0.8&#160;million and $1.2&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Prior to 2007, the Company financed the purchase of various vehicles, oil field services equipment and other equipment through various notes payable. The aggregate outstanding balance of these notes as of December&#160;31, 2006 was $4.5&#160;million. These notes were substantially repaid during 2007. As of December&#160;31, 2008, there were no amounts outstanding under these notes. The Company financed its insurance premium payment made in 2007. Also, in 2007, the Company repaid a $4.0&#160;million loan incurred in 2005 for the purpose of completing a gas processing plant and pipeline in Colorado. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>8.625%&#160;Senior Term Loan and Senior Floating Rate Term Loan.</I>&#160;&#160;On March&#160;22, 2007, the Company issued $1.0&#160;billion of unsecured senior term loans. The closing of the senior term loans was generally contingent upon closing the private placement of common equity as described in Note&#160;20. A portion of the proceeds from the senior term loans was used to repay the Company&#146;s $850.0&#160;million senior bridge facility, described below under &#147;&#151;&#160;Senior Bridge Facility,&#148; which was repaid in full in March 2007. The senior term loans included both a floating rate term loan and a fixed rate term loan, as described below. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company issued a $350.0&#160;million senior term loan at a variable rate with interest payable quarterly and principal due on April&#160;1, 2014. The variable rate term loan bore interest, at the Company&#146;s option, at LIBOR plus 3.625% or the higher of (i)&#160;the federal funds rate, as defined, plus 3.125% or (ii)&#160;a bank&#146;s prime rate plus 2.625%. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company issued a $650.0&#160;million senior term loan at a fixed rate of 8.625% with the principal due on April&#160;1, 2015. Under the terms of the fixed rate term loan, interest was payable quarterly and during the first four years interest was payable, at the Company&#146;s option, either entirely in cash or entirely with additional fixed rate term loans. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>8.625%&#160;Senior Notes Due 2015 and Senior Floating Rate Notes Due 2014.</I>&#160;&#160;In May 2008, the Company completed an offer to exchange its senior term loans for senior unsecured notes with registration rights, as required under the senior term loan credit agreement. The Company issued $650.0&#160;million of 8.625%&#160;Senior Notes due 2015 (&#147;8.625%&#160;Senior Notes&#148;) in exchange for an equal outstanding principal amount of its fixed rate senior term loan and $350.0&#160;million of Senior Floating Rate Notes due 2014 (&#147;Senior Floating Rate Notes&#148;) in exchange for an equal outstanding principal amount of its floating rate senior term loan. The exchange was made pursuant to a non-public exchange offer that commenced on March&#160;28, 2008 and expired on April&#160;28, 2008. The newly issued senior notes have terms that are substantially identical to those of the exchanged senior term loans, except that the senior notes were issued with registration rights. These senior notes are jointly and severally, unconditionally guaranteed on an unsecured basis by all of the Company&#146;s wholly owned subsidiaries, except certain minor subsidiaries. See Note&#160;24. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In conjunction with the issuance of the senior notes, the Company agreed to file a registration statement with the SEC in connection with its offer to exchange the notes for substantially identical notes that are registered under the Securities Act of 1933, as amended (&#147;Securities Act&#148;). The Company filed a registration statement relating to the exchange offer during the third quarter of 2008, and all unregistered notes were exchanged for registered notes by October&#160;27, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The 8.625%&#160;Senior Notes bear interest at a fixed rate of 8.625% per annum with the principal due on April&#160;1, 2015. Under the terms of the 8.625%&#160;Senior Notes, interest is payable semi-annually and, through the interest payment due on April&#160;1, 2011, interest may be paid, at the Company&#146;s option, either entirely in cash or entirely with additional fixed rate senior notes. If the Company elects to pay the interest due during any period in additional fixed rate senior notes, the interest rate will increase to 9.375% during that period. All interest payments made to date related to the fixed rate senior notes have been paid in cash. The Senior Floating Rate Notes bear interest at LIBOR plus 3.625% (7.51% at December&#160;31, 2008), except for the period from April&#160;1, 2008 to June&#160;30, 2008, for which the interest rate was 6.323%. Interest is payable quarterly with principal due on April&#160;1, 2014. The average interest rate paid on amounts outstanding under the Senior Floating Rate Notes for the year ended December&#160;31, 2008 was 7.27%. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In January 2008, the Company entered into an interest rate swap to fix the variable LIBOR interest rate on the floating rate senior term loan for the period from April&#160;1, 2008 to April&#160;1, 2011. As a result of the exchange of the floating rate senior term loan to Senior Floating Rate Notes, the interest rate swap is now being used to fix the variable LIBOR interest rate on the Senior Floating Rate Notes at an annual rate of 6.26% through April 2011. This swap has not been designated as a hedge. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company may redeem some or all of the Senior Floating Rate Notes at specified redemption prices on or after April&#160;1, 2009 and may redeem some or all of the 8.625%&#160;Senior Notes at specified redemption prices on or after April&#160;1, 2011. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company incurred $26.1&#160;million of debt issuance costs in connection with the senior term loans. As the senior term loans were exchanged for senior notes with substantially identical terms, the remaining unamortized debt issuance costs on the senior term loans will be amortized over the terms of the 8.625%&#160;Senior Notes and the Senior Floating Rate Notes. These costs are included in other assets in the consolidated balance sheets. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>8.0%&#160;Senior Notes Due 2018.</I>&#160;&#160;In May 2008, the Company issued $750.0&#160;million of unsecured 8.0%&#160;Senior Notes due 2018 (&#147;8.0%&#160;Senior Notes&#148;). The Company used $478.0&#160;million of the $735.0&#160;million net proceeds from the offering to repay the total balance outstanding on the senior credit facility at that time. The remaining proceeds were used to fund a portion of the Company&#146;s 2008 capital expenditure program. The notes bear interest at a fixed rate of 8.0% per annum, payable semi-annually, with the principal due on June&#160;1, 2018. The notes are redeemable, in whole or in part, prior to their maturity at specified redemption prices. The 8.0%&#160;Senior Notes are jointly and severally, unconditionally guaranteed on an unsecured basis by all of the Company&#146;s wholly owned subsidiaries, except certain minor subsidiaries. See Note&#160;24. The notes became freely tradable on November&#160;17, 2008, 180&#160;days after their issuance, pursuant to Rule&#160;144 under the Securities Act. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company incurred $16.0&#160;million of debt issuance costs in connection with the offering of the 8.0%&#160;Senior Notes. These costs are included in other assets in the consolidated balance sheet and amortized over the term of the notes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The indentures governing all of the senior notes contain financial covenants similar to those of the senior credit facility and include limitations on the incurrence of indebtedness, payment of dividends, asset sales, certain asset purchases, transactions with related parties and consolidation or merger agreements. As of December&#160;31, 2008, the Company was in compliance with all of the covenants contained in the indentures governing the senior notes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Senior Bridge Facility.</I>&#160;&#160;On November&#160;21, 2006, the Company entered into an $850.0&#160;million senior unsecured bridge facility (the &#147;senior bridge facility&#148;). Together with borrowings under the senior credit facility, the proceeds from the senior bridge facility were used to (i)&#160;partially finance the NEG acquisition, (ii)&#160;refinance the existing senior secured revolving credit facility and NEG&#146;s existing credit facility<B>, </B>and (iii)&#160;pay fees and expenses related to the NEG acquisition and the existing credit facility. The senior bridge facility was repaid in March 2007 with a portion of the proceeds from the issuance of the Company&#146;s senior term loans. The Company expensed remaining unamortized debt issuance costs related to the senior bridge facility of approximately $12.5&#160;million to interest expense in March 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Maturities of Long-Term Debt.</I>&#160;&#160;Aggregate maturities of long-term debt during the next five years are as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="88%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Years ending December 31: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 16,532 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,005 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 580,751 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2012 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,051 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2013 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,120 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Thereafter </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,763,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,375,316 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 12.&#160;&#160; Long-Term Debt &nbsp; Long-term obligations consist of the following (in thousands): &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; false false This element may be used as a single block of text to encapsulate the entire disclosure for long-term borrowings including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 false 15 1 sd_OtherLongtermObligations sd false na duration string Other Long-Term Obligations false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">13.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Other Long-Term Obligations</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has recorded a long-term obligation for amounts to be paid under a settlement agreement with Conoco, Inc. entered into in January 2007. The Company agreed to pay approximately $25.0&#160;million plus interest, payable in $5.0&#160;million increments on April&#160;1, 2007, July&#160;1, 2008, July&#160;1, 2009, July&#160;1, 2010 and July&#160;1, 2011. The payment made on July&#160;1, 2008 was included in accounts payable-trade in the consolidated balance sheet as of December&#160;31, 2007, and the payment to be made on July&#160;1, 2009 has been included in accounts payable-trade in the consolidated balance sheet as of December&#160;31, 2008. The non-current unpaid settlement amounts of $10.0&#160;million and $15.0&#160;million have been included in other long-term obligations in the consolidated balance sheets as of December&#160;31, 2008 and December&#160;31, 2007, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> 13.&#160;&#160; Other Long-Term Obligations &nbsp; The Company has recorded a long-term obligation for amounts to be paid under a settlement agreement false false Other Long-Term Obligations No authoritative reference available. false 16 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration string Description of risk management strategies, derivatives in hedging activities and nonhedging derivative instruments, the... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">14.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Derivatives</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has entered into various derivative contracts including fixed price swaps, collars and basis swaps with counterparties. The contracts expire on various dates through December&#160;31, 2011. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> A counterparty to one of the Company&#146;s derivative contracts, Lehman Brothers, declared bankruptcy on October&#160;3, 2008. Due to Lehman Brothers&#146; bankruptcy and the declaration of bankruptcy by its parent, Lehman Brothers Holdings, Inc., on September&#160;15, 2008, the Company has not assigned any value to this derivative contract as of December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> At December&#160;31, 2008, the Company&#146;s open natural gas and crude oil commodity derivative contracts consisted of the following: </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Natural Gas</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="76%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Notional<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted Avg.<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Period and Type of Contract</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(MMcf)(1)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fixed Price</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2009&#160;&#151; March 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,700 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9.14 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,300 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2009&#160;&#151; June 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,930 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7.96 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,470 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2009&#160;&#151; September 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,710 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.09 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,640 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2009&#160;&#151; December 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,400 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.54 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,640 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.74 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2010&#160;&#151; March 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,875 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.08 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,400 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2010&#160;&#151; June 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7.38 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,560 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2010&#160;&#151; September 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7.61 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,720 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2010&#160;&#151; December 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8.03 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14,720 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2011&#160;&#151; March 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2011&#160;&#151; June 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,365 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2011&#160;&#151; September 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,380 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2011&#160;&#151; December 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basis swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,380 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Assumes ratio of 1:1 for Mcf to MMBtu and excludes a total notional of 7,300&#160;MMcf from 2009 for the Lehman Brothers&#146; basis swap contract.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Crude Oil</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="76%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Notional<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted Avg.<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Period and Type of Contract</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>(in MBbls)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fixed Price</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January 2009&#160;&#151; March 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.38 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> April 2009&#160;&#151; June 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.71 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> July 2009&#160;&#151; September 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.61 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> October 2009&#160;&#151; December 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Price swap contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 126.51 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> These derivatives have not been designated as hedges. The Company records all derivatives in the consolidated balance sheets at fair value. Changes in derivative fair values are recognized in earnings. Cash settlements and valuation gains and losses are included in (gain) loss on derivative contracts in the consolidated statements of operations. The following table summarizes the cash settlements and valuation gains and losses on the commodity derivative contracts for the years ended December 31 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="67%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Realized loss (gain) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 12,981 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (34,494 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (14,169 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unrealized (gain) loss </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (224,420 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (26,238 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,878 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> (Gain) loss on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (211,439 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (60,732 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (12,291 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In January 2008, the Company entered into an interest rate swap to fix the variable LIBOR interest rate on its floating rate senior term loan at 6.26% per annum for the period April&#160;1, 2008 to April&#160;1, 2011. Due to the exchange of the floating rate senior term loan for Senior Floating Rate Notes, the interest rate swap is now being used to fix the variable LIBOR interest rate on the Senior Floating Rate Notes at 6.26% per annum through April 2011. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> An unrealized loss of $8.7&#160;million and realized gains of $1.3&#160;million related to the interest rate swap were included in interest expense in the consolidated statement of operations for the year ended December&#160;31, 2008. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 14.&#160;&#160; Derivatives &nbsp; The Company has entered into various derivative contracts including fixed price swaps, collars and basis swaps with false false Description of risk management strategies, derivatives in hedging activities and nonhedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44, 45, 46, 47 false 17 1 us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock us-gaap true na duration string Description containing the entire pension and other postretirement benefits disclosure as a single block of text. false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">15.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Retirement and Deferred Compensation Plans</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Retirement Plan.</I>&#160;&#160;The Company maintains a 401(k) retirement plan for its employees. Under the plan, eligible employees may elect to defer a portion of their earnings up to the maximum allowed by regulations promulgated by the Internal Revenue Service. Prior to August 2006, the Company made matching contributions equal to 50% on the first 6% of employee deferred wages. The Company modified the 401(k) retirement plan in August 2006 to change the matching contributions to equal a match of 100% on the first 15% of employee deferred wages. The plan was also modified to make the matching contributions payable in Company common stock. Accrued payables for the employer matching contribution in the amounts of $0.3&#160;million and $5.2&#160;million are reflected in the consolidated balance sheets as of December&#160;31, 2008 and 2007, respectively. In February 2008, the Company satisfied its matching obligation related to employees&#146; contributions made in 2007 through a transfer of treasury stock. During June 2007, the Company satisfied its matching obligation related to employees&#146; contributions made in 2006 through a transfer of treasury stock. See Note&#160;20. For 2008, 2007 and 2006, retirement plan expense was approximately $7.8&#160;million, $4.9&#160;million and $1.5&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Deferred Compensation Plan.</I>&#160;&#160;Effective February&#160;1, 2007 the Company established a non-qualified deferred compensation plan that allows eligible highly compensated employees to elect to defer income in excess of the IRA annual limitations on qualified 401(k) retirement plans. The 2008 annual 401(k) deferral limit for employees under age&#160;50 was $15,500. Employees turning age&#160;50 or over in 2008 could defer up to $20,500. The Company makes matching contributions on non-qualified contributions up to a maximum of 15% of employee gross earnings. Accrued payables for the employer matching contribution in the amounts of $0.1&#160;million and $0.8&#160;million were included in the consolidated balance sheets as of December&#160;31, 2008 and 2007, respectively. In July 2008, the Company satisfied its matching obligation related to employees&#146; contributions made in 2007 and first quarter of 2008 through a transfer of treasury stock. See Note&#160;20. For 2008 and 2007, deferred compensation expense was approximately $2.3&#160;million and $0.6&#160;million, respectively. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 15.&#160;&#160; Retirement and Deferred Compensation Plans &nbsp; Retirement Plan.&#160;&#160;The Company maintains a 401(k) retirement plan for its false false Description containing the entire pension and other postretirement benefits disclosure as a single block of text. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 74, 77, 78, 518 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 54, 56, 264 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-02 -Paragraph 8 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 88 -Paragraph 17, 48 false 18 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration string Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">16.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Income Taxes</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. As of December&#160;31, 2008, the Company had recorded a full valuation allowance against its net deferred tax asset. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Significant components of the Company&#146;s deferred tax assets and liabilities are as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred tax liabilities: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 85,645 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8,002 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Investment in partnerships </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 933 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Property, plant&#160;&#038; equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total deferred tax liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 85,645 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 54,472 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred tax assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Property, plant and equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 559,946 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Allowance for doubtful accounts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,414 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,744 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net operating loss carryforwards-acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,622 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,397 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Investment in and notes receivable from partnerships </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,880 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Stock-based compensation </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,691 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 961 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Minimum tax credit carryforward </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,297 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 528 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,870 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,312 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total deferred tax assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 575,720 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,942 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Valuation allowance </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (490,075 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net deferred tax liability </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 47,530 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The provisions for income taxes consisted of the following components for the years ended December 31 (in&#160;thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="71%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Current: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Federal </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,235 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> State </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,665 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 601 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,653 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 9,202 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 601 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,888 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Federal </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (46,180 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,121 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 345 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> State </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,350 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 802 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (47,530 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,923 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 348 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total (benefit) provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (38,328 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 29,524 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> A reconciliation of the provision for income taxes at the statutory federal tax rates to the Company&#146;s actual provision for income taxes is as follows for the years ended December 31 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="69%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Computed at federal statutory rates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (517,863 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 27,911 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7,650 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> State taxes, net of federal benefit </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (12,153 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 912 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,724 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Nondeductible expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 312 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Percentage depletion deduction </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,488 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Change in rate </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 326 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 646 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 389 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (60 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Change in valuation allowance </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 490,075 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total (benefit) provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (38,328 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 29,524 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company, as of December&#160;31, 2008, has approximately $1.3&#160;million of alternative minimum tax credits available that do not expire. In addition, the Company has approximately $1.6&#160;million of acquired federal net operating loss carryovers that expire during the years 2022 through 2025. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> There were no uncertain income tax positions required to be recorded pursuant to FASB Interpretation No.&#160;48 &#147;Accounting for Uncertainty in Income Taxes&#160;&#151; an interpretation of FASB Statement No.&#160;109&#148; (FIN&#160;48). The Company files income tax returns in the U.S.&#160;(federal and various state jurisdictions). Tax years 1994 to present remain open for the majority of taxing authorities due to net operating loss utilization. The Company&#146;s accounting policy is to recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense. The Company does not have an accrued liability for interest or penalties at December&#160;31, 2008. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 16.&#160;&#160; Income Taxes &nbsp; Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and false false Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 false 19 1 us-gaap_ScheduleOfEarningsPerShareBasicByCommonClassTextBlock us-gaap true na duration string This element may be used to capture the complete disclosure pertaining to an entity's basic earnings per share. false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">17.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Earnings (Loss) Per Share</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Basic earnings per share are computed using the weighted average number of common shares outstanding during the year. Diluted earnings per share are computed using the weighted average shares outstanding during the year, but also include the dilutive effect of awards of restricted stock. The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share for the years ended December 31 (in thousands). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="72%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Weighted average basic common shares outstanding </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155,619 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 108,828 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 73,727 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Effect of dilutive securities: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Restricted stock </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,213 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 937 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Weighted average diluted common and potential common shares outstanding </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155,619 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 110,041 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 74,664 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> For the year ended December&#160;31, 2008, restricted stock awards covering approximately 3.0&#160;million shares were excluded from the computation of net loss per share because their effect would have been antidilutive. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In computing diluted earnings per share, the Company evaluated the if-converted method with respect to its outstanding redeemable convertible preferred stock. Under this method, the Company assumes the conversion of the preferred stock to common stock and determines if this is more dilutive than including the preferred stock dividends (paid and unpaid) in the computation of income available to common stockholders. The Company determined the if-converted method is not more dilutive and has included preferred stock dividends in the determination of income available to common stockholders for the years ended December&#160;31, 2008 and 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> </HTML> 17.&#160;&#160; Earnings (Loss) Per Share &nbsp; Basic earnings per share are computed using the weighted average number of common shares outstanding false false This element may be used to capture the complete disclosure pertaining to an entity's basic earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 false 20 1 us-gaap_CommitmentsAndContingenciesDisclosureTextBlock us-gaap true na duration string Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">18.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Commitments and Contingencies</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Operating Leases.</I>&#160;&#160;The Company has obligations under noncancelable operating leases, primarily for the use of office space. Total rental expense under operating leases for the years ended December&#160;31, 2008, 2007 and 2006 was approximately $2.4&#160;million, $2.3&#160;million and $1.1&#160;million, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Future minimum lease payments under noncancelable operating leases (with initial lease terms in excess of one year) as of December&#160;31, 2008 are as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="92%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Years ending December 31: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,083 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 239 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 224 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2012 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 113 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2013 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 116 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Thereafter </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 48 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,823 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Rig Commitments.</I>&#160;&#160;The Company has contracts with third-party drilling rig operators for the use of their rigs at specified day rates. These commitments are not recorded in the consolidated balance sheets. Minimum future commitments as of December&#160;31, 2008 are $15.8&#160;million for 2009 and $1.2&#160;million for 2010. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Firm Transportation.</I>&#160;&#160;The Company has subscribed firm gas transportation service under two Transportation Service Agreements (TSA). The TSA terms run through 2012 on the Oasis Pipeline and through 2018 on the Midcontinent Express Pipeline. These commitments are not recorded in the consolidated balance sheets. Under the terms of the TSAs, the Company is obligated to pay a demand charge and in exchange, obtains the right to flow natural gas production through these pipelines to more competitive marketing areas. The amounts of the required payments for firm transportation as of December&#160;31, 2008 were as follows (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="90%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Years ending December 31: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2009 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 22,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2010 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,195 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2011 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,320 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2012 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,406 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> 2013 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,392 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Thereafter </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84,688 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 231,811 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Litigation.</I>&#160;&#160;The Company is a defendant in lawsuits from time to time in the normal course of business. In management&#146;s opinion, the Company is not currently involved in any legal proceedings which, individually or in the aggregate, could have a material effect on the financial condition, operations or cash flows of the Company. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Loan to Equity Investee.</I>&#160;&#160;The Company, through its subsidiary Lariat, has entered into a revolving promissory note with Larclay for an aggregate principal amount of up to $15.0&#160;million. See Notes&#160;8 and 21. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 18.&#160;&#160; Commitments and Contingencies &nbsp; Operating Leases.&#160;&#160;The Company has obligations under noncancelable operating leases, false false Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 false 21 1 us-gaap_ScheduleOfRedeemableConvertiblePreferredStockTextBlock us-gaap true na duration string Redeemable convertible preferred stock obligation is not included in permanent equity within Stockholders' equity and does... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">19.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Redeemable Convertible Preferred Stock</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In November 2006, the Company sold 2,136,667&#160;shares of redeemable convertible preferred stock to finance a portion of the NEG acquisition and received net proceeds of approximately $439.5&#160;million after deducting offering expenses of approximately $9.3&#160;million. Each holder of redeemable convertible preferred stock was entitled to quarterly cash dividends at the annual rate of 7.75% of the accreted value, or $210 per share, of their redeemable convertible preferred stock. Each share of redeemable convertible preferred stock was initially convertible into ten shares, and ultimately convertible into 10.2&#160;shares, of common stock at the option of the holder, subject to certain anti-dilution adjustments. A summary of dividends declared and paid on the redeemable convertible preferred stock is as follows (in thousands, except per share data): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="25%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="39%">&nbsp;</TD> <!-- colindex=02 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="2%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="19%">&nbsp;</TD> <!-- colindex=05 type=maindata --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Dividends<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Declared</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Dividend Period</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>per Share</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Total</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Payment Date</B> </DIV> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> January&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> November 21, 2006&#160;&#151; February 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3.21 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 15, 2007 </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> May&#160;8, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 2, 2007&#160;&#151; May 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3.97 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,550 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 15, 2007 </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> June&#160;8, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 2, 2007&#160;&#151; August 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.10 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> August 15, 2007 </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> September&#160;24, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> August 2, 2007&#160;&#151; November 1, 2007 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.10 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> November 15, 2007 </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> December&#160;16, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> November 2, 2007&#160;&#151; February 1, 2008 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.10 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,956 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 15, 2008 </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> March&#160;7, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> February 2, 2008&#160;&#151; May 1, 2008 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.01 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,095 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> (1) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="top"> <DIV style="text-indent: -10pt; margin-left: 10pt"> May&#160;7, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 2, 2008&#160;&#151; May 7, 2008 </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4.01 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD align="left" valign="bottom"> May 7, 2008 </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Includes $0.6&#160;million of prorated dividends paid to holders of redeemable convertible preferred shares at the time their shares converted to common stock in March 2008. The remaining dividends of $7.5&#160;million were paid during May 2008.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On March&#160;30, 2007, certain holders of the Company&#146;s common units (consisting of shares of common stock and a warrant to purchase redeemable convertible preferred stock upon the surrender of common stock) exercised warrants to purchase redeemable convertible preferred stock. The holders converted 526,316&#160;shares of common stock into 47,619&#160;shares of redeemable convertible preferred stock. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During March 2008, holders of 339,823&#160;shares of the Company&#146;s redeemable convertible preferred stock elected to convert those shares into 3,465,593&#160;shares of the Company&#146;s common stock. Additionally, during May&#160;2008, the Company converted the remaining outstanding 1,844,464&#160;shares of its redeemable convertible preferred stock into 18,810,260&#160;shares of its common stock as permitted under the terms of the redeemable convertible preferred stock. These conversions resulted in increases to additional paid-in capital totaling $452.2&#160;million, which represents the difference between the par value of the common stock issued and the carrying value of the redeemable convertible shares converted. The Company also recorded charges to retained earnings totaling $7.2&#160;million in accelerated accretion expense related to the converted redeemable convertible preferred shares. Prorated dividends totaling $0.5&#160;million for the period from May&#160;2, 2008 to the date of conversion (May&#160;7, 2008)&#160;were paid to the holders of the converted shares on May&#160;7, 2008. On and after the conversion date, dividends ceased to accrue and the rights of common unit holders to exercise outstanding warrants to purchase redeemable convertible preferred shares terminated. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Approximately $8.6&#160;million and $38.5&#160;million in paid and unpaid dividends have been included in the Company&#146;s earnings per share calculations for the years ended December&#160;31, 2008 and 2007, respectively, as presented in the consolidated statements of operations. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 19.&#160;&#160; Redeemable Convertible Preferred Stock &nbsp; In November 2006, the Company sold 2,136,667&#160;shares of redeemable convertible false false Redeemable convertible preferred stock obligation is not included in permanent equity within Stockholders' equity and does not fall under the classification of asset or liability under SFAS 150. Type of security with redemption features that are outside the control of the issuer, that are not mandatorily redeemably and the issuer cannot demonstrate that it would be able to deliver under the conversion option upon conversion in all cases. Includes preferred stock that has a fixed or determinable redemption date, is redeemable at the option of the holder, or has conditions for redemption that are outside the issuer's control. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 false 22 1 us-gaap_StockholdersEquityNoteDisclosureTextBlock us-gaap true na duration string Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1)... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">20.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Stockholders&#146; Equity</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table presents information regarding SandRidge&#146;s common stock (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="81%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Shares authorized </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 400,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 400,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Shares outstanding at end of period </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 166,046 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 141,843 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Shares held in treasury </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,326 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,456 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company is authorized to issue 50,000,000&#160;shares of preferred stock, $0.001&#160;par value, of which 2,625,000&#160;shares are designated as redeemable convertible preferred stock. As of December&#160;31, 2007, there were 2,184,286&#160;shares of redeemable convertible preferred stock outstanding and no other shares of preferred stock were outstanding. All shares of redeemable convertible preferred stock outstanding were converted to shares of the Company&#146;s common stock during 2008. See Note&#160;19. There were no shares of preferred stock outstanding as of December&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Common Stock Issuance.</I>&#160;&#160;In January 2006, the Company issued 239,630&#160;shares of common stock upon exercise of an over-allotment option related to a December 2005 private placement of its common stock. The Company issued these shares at a price of $15.00 per share after deducting the purchasers&#146; fee of $0.3&#160;million. The Company received net proceeds from the sale of approximately $3.3&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In November 2006, the Company sold 5.3&#160;million common units (consisting of shares of common stock, $18.00 per share, and a warrant, $1.00 per share, to purchase convertible preferred stock upon the surrender of the common stock) as part of the NEG acquisition and received net proceeds from this sale of approximately $97.4&#160;million after deducting the offering expenses of approximately $3.9&#160;million. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In March 2007, the Company sold approximately 17.8&#160;million shares of common stock for net proceeds of $318.7&#160;million after deducting offering expenses of approximately $1.4&#160;million. The stock was sold in private sales to various investors including the Company&#146;s Chairman and Chief Executive Officer, who invested $61.4&#160;million in exchange for approximately 3.4&#160;million shares of common stock. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On November&#160;9, 2007, the Company completed the initial public offering of its common stock. The Company sold 32,379,500&#160;shares of its common stock, including 4,710,000&#160;shares sold directly to an entity controlled by the Company&#146;s Chairman and Chief Executive Officer, at a price of $26.00 per share. After deducting underwriting discounts of approximately $44.0&#160;million and offering expenses of approximately $3.1&#160;million, the Company received net proceeds of approximately $794.7&#160;million. The Company used the net proceeds from the offering as follows (in millions): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="92%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Repayment of outstanding balance and accrued interest on senior credit facility </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 515.9 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Repayment of note payable and accrued interest incurred in connection with recent acquisition </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49.1 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Excess cash to fund future capital expenditures </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 229.7 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 794.7 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During March 2008, the Company issued 3,465,593&#160;shares of common stock upon the conversion of 339,823&#160;shares of its redeemable convertible preferred stock. In May 2008, the Company converted the remaining outstanding 1,844,464&#160;shares of its redeemable convertible preferred stock into 18,810,260&#160;shares of its common stock as permitted under the terms of the redeemable convertible preferred stock. See additional discussion in Note&#160;19. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Treasury Stock.</I>&#160;&#160;The Company makes required tax payments on behalf of employees when their restricted stock awards vest and then withholds a number of vested shares having a value on the date of vesting equal to the tax obligation. As a result of such transactions, the Company withheld 80,724&#160;shares at a total value of $3.6&#160;million and 44,649&#160;shares at a total value of $0.8&#160;million during the years ended December&#160;31, 2008 and 2007, respectively. These shares were accounted for as treasury stock. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On June&#160;28, 2007, the Company purchased 39,844&#160;shares of its common stock into treasury through an open market repurchase transaction in order to fund a portion of its 401(k) matching obligation as described below. Cash consideration for these shares of approximately $0.8&#160;million was paid in July 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On June&#160;29, 2007, the Company transferred 72,044&#160;shares of its treasury stock to an account established for the benefit of the Company&#146;s 401(k) Plan. The transfer was made in order to satisfy the Company&#146;s $1.3&#160;million payable to match employee contributions made to the plan during 2006. Historical cost of the shares transferred totaled approximately $0.9&#160;million, resulting in an increase to the Company&#146;s additional paid-in capital of approximately $0.4&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In February 2008, the Company transferred 184,484&#160;shares of its treasury stock into an account established for the benefit of the Company&#146;s 401(k) Plan. The transfer was made in order to satisfy the Company&#146;s $5.0&#160;million accrued payable to match employee contributions made to the plan during 2007. The historical cost of the shares transferred totaled approximately $2.4&#160;million and resulted in an increase to the Company&#146;s additional paid-in capital of approximately $2.6&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During July 2008, the Company transferred 26,058&#160;shares of its treasury stock into an account established for the benefit of the Company&#146;s non-qualified deferred compensation plan. This transfer was made in order to satisfy the Company&#146;s $1.0&#160;million accrued payable to match participant contributions made to the non-qualified plan through March&#160;31, 2008. The historical cost of the shares transferred totaled approximately $0.4&#160;million and resulted in an increase to the Company&#146;s additional paid-in capital of approximately $0.6&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Restricted Stock.</I>&#160;&#160;The Company issues restricted stock awards under incentive compensation plans which vest over specified periods of time. Awards issued prior to 2006 had vesting periods of one, four or seven years. All awards issued during and after 2006 have four year vesting periods. Shares of restricted common stock are subject to restriction on transfer and certain conditions for vesting. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company granted restricted stock awards of approximately 1.6&#160;million shares in December 2005. The stock awards included (i)&#160;153,667&#160;shares scheduled to vest on December&#160;31, 2006, (ii)&#160;904,833&#160;shares scheduled to vest on June&#160;30, 2010, and (iii)&#160;493,667&#160;shares scheduled to vest on June&#160;30, 2013. In June 2006, the Company modified the vesting periods of the one year period and four year period restricted stock awards. One year restricted stock awards were modified to vest on October&#160;1, 2006, rather than December&#160;31, 2006, and four year restricted stock awards were modified to vest 25% each January&#160;1, for four years, beginning January&#160;1, 2007, rather than all vesting on June&#160;30, 2010. The Company recognized compensation cost related to these modifications of $17,250 in June 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Additionally, the Company modified the vesting period related to restricted shares awarded to certain executive officers who resigned in June 2006 and August 2006 as a component of their separations from the Company. The Board of Directors agreed to immediately vest all of the executive officers&#146; restricted stock, a total of 222,000&#160;shares, including 20,334&#160;shares which would have vested in 2006, 150,000&#160;shares which would have vested in 2010, and 51,666&#160;shares which would have vested in 2013. The Company recognized compensation cost related to these modifications of $2.3&#160;million in the year ended December&#160;31, 2006. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In December 2006, the Company accelerated the vesting of 39,960 restricted shares on behalf of certain employees who resigned from the Company in late December 2006. These shares were scheduled to vest on January&#160;1, 2007. The Company recognized additional compensation cost in December 2006 for these shares of approximately $0.1&#160;million due to the modification. Other restricted shares held by these employees were forfeited. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Restricted stock activity for the year ended December&#160;31, 2008 was as follows (shares in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="74%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="11%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Number of<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average Grant<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Shares</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Date Fair Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unvested restricted shares outstanding at December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,927 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 19.25 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Granted </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,638 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 41.15 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Vested </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (440 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 30.47 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Canceled </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (132 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 19.41 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Unvested restricted shares outstanding at December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,993 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 30.71 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> For the years ended December&#160;31, the Company recognized stock-based compensation expense related to restricted stock of approximately $18.8&#160;million in 2008, $7.2&#160;million in 2007 and $8.8&#160;million in 2006. Stock-based compensation expense is reflected in general and administrative expense in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As of December&#160;31, 2008, there was approximately $73.3&#160;million of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 3.0&#160;years. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 20.&#160;&#160; Stockholders&#146; Equity &nbsp; The following table presents information regarding SandRidge&#146;s common stock (in thousands): &nbsp; false false Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (d) -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C, E Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12, 13 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 false 23 1 us-gaap_RelatedPartyTransactionsDisclosureTextBlock us-gaap true na duration string This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">21.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Related Party Transactions</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During the ordinary course of business, the Company has transactions with certain shareholders and other related parties. These transactions primarily consist of purchases of drilling equipment and sales of oil field service supplies. Following is a summary of significant transactions with related parties for the years ended December 31 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="71%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="3%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="3%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="3%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="3%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Sales to and reimbursements from related parties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 90,170 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 118,631 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 14,102 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Purchases of services from related parties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 59,951 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,555 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,811 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In August 2006, the Company sold various non-energy related assets to the Company&#146;s former President and Chief Operating Officer for approximately $6.1&#160;million in cash. The sale transaction resulted in a $0.8&#160;million gain recognized in earnings by the Company in August 2006. The gain is included in gain on sale of assets in the consolidated statements of operations. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In September 2006, the Company entered into a facilities lease with a company owned by a member of its Board of Directors. The Company believes that the payments to be made under this lease are at fair market rates. Rent expense related to the lease totaled $1.4 million, $1.3&#160;million and $0.3&#160;million for the years ended December&#160;31, 2008, 2007 and 2006, respectively. The lease extends to August 2009. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In May 2007, the Company purchased leasehold acreage from a partnership controlled by a director. The purchase price was approximately $8.3&#160;million in cash. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In June 2007, the Company purchased certain producing well interests from a director. The purchase price was approximately $3.5&#160;million in cash. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In October 2008, the Company purchased certain working interests and related reserves in company wells owned by its Chairman and Chief Executive Officer and certain of his affiliates. The purchase price was approximately $67.3&#160;million. See Note&#160;2. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Larclay, L.P.</I>&#160;&#160;Lariat and CWEI each own a 50% interest in Larclay. Larclay currently owns twelve rigs, one of which has not yet been assembled. Larclay financed the acquisition cost of its twelve rigs with a loan from a third party, secured by the purchased rigs, and a loan from CWEI. In addition, CWEI has guaranteed a portion of the third party debt. Lariat operates the rigs owned by the partnership. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> If Larclay has an operating shortfall, Lariat and CWEI are obligated to provide loans to the partnership. In April 2008, Lariat and CWEI each made loans of $2.5&#160;million to Larclay under promissory notes. The notes bear interest at a floating rate based on a LIBOR average plus 3.25% (5.1875% at December&#160;31, 2008)&#160;as provided in the Larclay partnership agreement. In June 2008, Larclay executed a $15.0&#160;million revolving promissory note with each Lariat and CWEI. Amounts drawn under each revolving promissory note bear interest at a floating rate based on a LIBOR average plus 3.25% (5.1875% at December&#160;31, 2008)&#160;as provided in the Larclay partnership agreement. Lariat advanced $5.0&#160;million to Larclay under the revolving promissory note during the year ended December&#160;31, 2008. Total advances outstanding to Larclay were $7.5&#160;million ($2.5&#160;million promissory note and $5.0&#160;million drawn on revolving promissory note) at December&#160;31, 2008. The cash shortfalls experienced by Larclay in 2008 were the result of principal payments due pursuant to its rig loan agreement. As a result of current economic conditions and continued cash shortfalls for Larclay, the Company has impaired both its investment in and notes receivable due from Larclay as of December&#160;31, 2008. See Note&#160;8. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table summarizes the Company&#146;s other transactions with Larclay for the years ended December&#160;31, 2008, 2007 and 2006 (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="72%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Sales to and reimbursements from Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 42,757 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 53,256 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,592 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Purchases of services from Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 34,747 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 33,297 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 33 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="73%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts receivable from Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,060 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 16,625 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts payable to Larclay </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 152 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 274 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> See Note&#160;2 for a discussion of additional related party transactions. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 21.&#160;&#160; Related Party Transactions &nbsp; During the ordinary course of business, the Company has transactions with certain shareholders and false false This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 1-4 false 24 1 us-gaap_ScheduleOfSubsequentEventsTextBlock us-gaap true na duration string Describes disclosed significant events or transactions that occurred after the balance sheet date, but before the issuance of... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">22.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Subsequent Events</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Private Placement of Convertible Perpetual Preferred Stock.</I>&#160;&#160;In January 2009, the Company commenced and completed a private placement of 2,650,000&#160;shares of a new series of 8.5% convertible perpetual preferred stock to qualified institutional buyers eligible under Rule&#160;144A under the Securities Act. Net proceeds from the offering were approximately $243.9&#160;million after applying a discount to the purchase price of the stock and deducting offering expenses of approximately $8.0&#160;million. The Company will use the net proceeds of the offering to repay outstanding borrowings under its senior credit facility and for general corporate purposes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Marketing of Midstream Assets.</I>&#160;&#160;In January 2009, the Company announced its intent to offer for sale certain of its gas gathering and related assets located in the WTO. The carrying value of these assets was $228.8&#160;million at December&#160;31, 2008. This process is ongoing as of the date of this filing. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 22.&#160;&#160; Subsequent Events &nbsp; Private Placement of Convertible Perpetual Preferred Stock.&#160;&#160;In January 2009, the Company commenced false false Describes disclosed significant events or transactions that occurred after the balance sheet date, but before the issuance of the financial statements. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, losses resulting from fire or flood, losses on receivables, significant realized and unrealized gains and losses that result from changes in quoted market prices of securities, declines in market prices of inventory, changes in authorized or issued debt (SEC), significant foreign exchange rate changes, substantial loans to insiders or affiliates, significant long-term investments, and substantial dividends not in the ordinary course of business. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 11 false 25 1 us-gaap_SegmentReportingDisclosureTextBlock us-gaap true na duration string This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">23.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Industry Segment Information</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company operates in four related business segments: exploration and production, drilling and oil field services, midstream gas services and other ancillary business activities. These segments represent the Company&#146;s four main business units, each offering different products and services. The exploration and production segment is engaged in the development, acquisition and production of natural gas and crude oil properties. The drilling and oil field services segment is engaged in the land contract drilling of natural gas and crude oil wells. The midstream gas services segment is engaged in the purchasing, gathering, processing and treating of natural gas. The other segment includes transporting CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB> to market for use in tertiary oil recovery operations by the Company and third parties and other miscellaneous operations. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (Note&#160;1). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Management evaluates the performance of the Company&#146;s business segments based on operating income (loss), which is defined as segment operating revenues less operating expenses and depreciation, depletion, amortization and impairment. Summarized financial information concerning the Company&#146;s segments is shown in the following table (in thousands): </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="64%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 912,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 479,321 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 106,990 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 220 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 574 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 577 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production, net of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 912,496 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 478,747 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 106,413 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 434,963 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 261,818 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 211,055 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 387,972 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 188,616 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 72,398 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services, net of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46,991 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 73,202 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 138,657 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 688,071 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 285,065 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 192,960 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 483,933 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 177,487 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 70,068 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services, net of inter-segment revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 204,138 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 107,578 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 122,892 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 22,791 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,286 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,411 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Elimination of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,602 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,361 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,131 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other, net of inter-segment revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,189 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 17,925 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,280 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,181,814 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 677,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 388,242 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Operating (loss) income: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,263,249 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 198,913 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 17,069 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,393 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,473 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 32,946 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,087 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,783 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,528 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (71,592 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (29,310 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (16,562 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total operating (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,338,147 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 186,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,981 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Interest expense, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (143,458 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (111,762 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (15,795 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other income (expense), net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,997 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 671 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,479,608 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 79,745 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,986,070 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,143,137 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,091,459 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 275,164 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 271,563 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 175,169 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 284,281 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 127,822 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 75,606 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 109,543 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 88,044 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 46,150 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,655,058 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,630,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,388,384 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Capital Expenditures(1): </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,909,078 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,046,552 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 170,872 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 52,869 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 123,232 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 89,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 160,460 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 63,828 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,975 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 55,440 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 47,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,884 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total capital expenditures </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,177,847 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,280,848 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 306,541 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, Depletion and Amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration and production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 293,625 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 175,565 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 28,104 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Drilling and oil field services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 42,077 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 37,792 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,268 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Midstream gas services </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,241 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,641 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,180 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,422 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,111 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,074 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total depreciation, depletion and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 361,365 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 227,109 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 55,626 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> On an accrual basis.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <I>Major Customer.</I>&#160;&#160;During 2008 and 2007, the Company had sales in excess of 10% of total revenues to a natural gas and oil purchaser ($124.6&#160;million or 10.5% of total revenues and $76.1&#160;million or 11.2% of total revenues, respectively). There were no customers that accounted for 10% or more of total revenues in 2006. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 23.&#160;&#160; Industry Segment Information &nbsp; The Company operates in four related business segments: exploration and production, drilling and oil false false This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 false 26 1 us-gaap_ScheduleOfCondensedFinancialStatementsTextBlock us-gaap true na duration string Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">24.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Financial Information</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company is providing condensed consolidating financial information for its subsidiaries that are guarantors of its public debt. Subsidiary guarantors are wholly owned and have, jointly and severally, unconditionally guaranteed on an unsecured basis the Company&#146;s 8.625%&#160;Senior Notes due 2015, Senior Floating Rate Notes due 2014 and 8.0%&#160;Senior Notes due 2018. The subsidiary guarantees (i)&#160;rank equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii)&#160;rank senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii)&#160;are effectively subordinated in right of payment to any existing or future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; and (iv)&#160;are structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors who are not themselves guarantors. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has not presented separate financial and narrative information for each of the subsidiary guarantors because it believes that such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the guarantees. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following condensed consolidating financial information represents the financial information of SandRidge Energy, Inc. and its wholly owned subsidiary guarantors, prepared on the equity basis of accounting. The non-guarantor subsidiaries are minor and, therefore, not presented separately. The information is presented in accordance with the requirements of <FONT style="white-space: nowrap">Rule&#160;3-10</FONT> under the SEC&#146;s <FONT style="white-space: nowrap">Regulation&#160;S-X.</FONT> The financial information may not necessarily be indicative of the financial position, results of operations, or cash flows had the subsidiary guarantors operated as independent entities. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Balance Sheet</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="32%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=06 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=06 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=06 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=06 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=07 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=07 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=07 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=07 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=08 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=08 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=08 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=08 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=09 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=09 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=09 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=09 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31, 2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31, 2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="30" align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD colspan="33" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>ASSETS</B> </DIV> </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Current assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 18 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 618 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 636 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 62,967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 168 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,135 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Accounts and notes receivable, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 863,129 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 66,463 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 109,073 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 557,527 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 85,947 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 114,759 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 201,111 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 201,111 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,958 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,958 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,194 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 41,899 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,093 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,936 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 20,664 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 26,600 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,067,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 108,980 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 355,913 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 648,388 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 106,779 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 226,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Property, plant and equipment, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,106,623 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,068,936 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,175,559 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 967,259 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,370,151 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,337,410 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Investment in subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,002,336 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,002,336 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,817,330 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,817,330 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 135,161 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 39,809 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 123,586 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 77,614 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,474 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 66,704 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,311,572 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,217,725 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,874,239 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,655,058 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,510,591 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,517,404 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,397,429 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,630,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Current liabilities: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Accounts payable and accrued expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 163,068 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,024,018 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 366,567 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 224,015 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 520,592 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,892 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Other current liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,106 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30,951 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,057 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,214 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,214 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total current liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 168,174 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,054,969 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (820,519 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 402,624 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 224,015 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 536,806 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (528,715 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 232,106 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Long-term debt </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,323,458 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 86,710 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,358,784 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,000,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 103,683 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,384 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,052,299 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Asset retirement obligation </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,759 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 71,738 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 84,497 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,620 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 53,096 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 57,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 13,660 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,942 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,602 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,817 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,817 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Deferred income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49,350 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,518,051 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,215,359 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (871,903 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,861,507 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,292,985 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 695,402 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (580,099 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,408,288 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Minority interest </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 30 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,672 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,672 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Redeemable convertible preferred stock </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 450,715 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 450,715 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Stockholders&#146; equity </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 793,521 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,002,336 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,002,336 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 793,521 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,766,891 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,817,330 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,817,330 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,766,891 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total liabilities and stockholders&#146; equity </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,311,572 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,217,725 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,874,239 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,655,058 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,510,591 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,517,404 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,397,429 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,630,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Statements of Operations</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="1%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="1%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 7pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>Year Ended December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 329,109 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 855,184 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (2,479 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,181,814 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Direct operating expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 72,473 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 323,172 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,479 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 393,166 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> General and administrative </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 40,638 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 68,734 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 109,372 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Depreciation, depletion, amortization and impairment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 957,509 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,271,353 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,228,862 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Gain on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (211,439 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (211,439 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 859,181 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,663,259 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,479 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,519,961 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> (Loss) income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (530,072 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (808,075 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,338,147 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Equity earnings from subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (809,594 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 809,594 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Interest expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (142,843 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (4,184 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (147,027 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other income (expense), net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,709 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> (Loss) income before income tax (benefit) expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,479,652 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (809,550 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 809,594 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,479,608 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income tax (benefit) expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (38,372 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 44 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (38,328 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Net (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,441,280 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (809,594 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 809,594 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,441,280 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>Year Ended December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 139,281 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 538,171 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 677,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Direct operating expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 33,643 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 228,793 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 262,436 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> General and administrative </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 32,446 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,334 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 61,780 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Depreciation, depletion, and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 43,257 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 183,852 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 227,109 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Gain on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (26,183 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (34,549 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (60,732 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 83,163 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 407,430 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 490,593 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income (loss) from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 56,118 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 130,741 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 186,859 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Equity earnings from subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 137,515 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (137,515 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Interest expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (113,838 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,347 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (117,185 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other (expense) income, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (81 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,152 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,071 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income (loss) before income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 79,714 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 137,546 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (137,515 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 79,745 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,493 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 29,524 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Net income (loss) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 50,221 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 137,515 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (137,515 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 50,221 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> <B>Year Ended December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,041 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 325,201 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 388,242 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Direct operating expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,773 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 226,519 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 252,292 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> General and administrative </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,904 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 23,730 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 55,634 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> Depreciation, depletion, and amortization </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 24,500 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,126 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 55,626 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 16pt"> (Gain) loss on derivative contracts </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (12,327 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (12,291 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 24pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 69,850 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 281,411 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 351,261 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> (Loss) income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (6,809 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 43,790 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,981 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Equity earnings from subsidiaries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,470 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,470 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Interest expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (14,222 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,682 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (16,904 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Other income (expense), net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 425 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,355 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,780 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income (loss) before income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,864 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 42,463 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,470 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,857 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Income tax expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 243 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,993 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,236 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -8pt; margin-left: 8pt"> Net income (loss) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15,621 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 36,470 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (36,470 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15,621 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Condensed Consolidating Statements of Cash Flows</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="51%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Parent<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Guarantor<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Company</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Subsidiaries</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Eliminations</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Consolidated</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Year Ended December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash (used in) provided by operating activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (309,359 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 888,548 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 579,189 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash used in investing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,042,633 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (866,810 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,909,443 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash provided by (used in) financing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,289,043 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (21,288 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,267,755 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net (decrease) increase in cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (62,949 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 450 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (62,499 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at beginning of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 62,967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 168 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 63,135 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at end of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 18 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 618 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 636 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Year Ended December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash (used in) provided by operating activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (301,288 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 667,724 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (8,984 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 357,452 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash used in investing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (728,697 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (656,884 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,385,581 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash provided by (used in) financing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,061,505 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (18,173 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,984 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,052,316 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net increase (decrease) in cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,520 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (7,333 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 24,187 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at beginning of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 31,447 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,948 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at end of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 62,967 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 168 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 63,135 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Year Ended December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash (used in) provided by operating activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (33,775 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 94,570 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,554 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 67,349 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash used in investing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,212,910 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (127,657 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,340,567 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net cash provided by (used in) financing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,233,555 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 39,434 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (6,554 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,266,435 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net (decrease) increase in cash and cash equivalents </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (13,130 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,347 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (6,783 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at beginning of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 44,577 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,154 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 45,731 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cash and cash equivalents at end of year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 31,447 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 7,501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 38,948 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </HTML> 24.&#160;&#160; Condensed Consolidating Financial Information &nbsp; The Company is providing condensed consolidating financial information for its false false Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph (c) -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph (c) -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 24 false 27 1 us-gaap_OilAndGasExplorationAndProductionIndustriesDisclosuresTextBlock us-gaap true na duration string This text block may contain all or parts of the required disclosures for oil and gas producing industries in tables or other... false false false false false false false false false 1 false false 0 0 <HTML> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">25.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Supplemental Information on Oil and Gas Producing Activities (Unaudited)</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Supplementary Information on Oil and Gas Producing Activities is presented as required by SFAS&#160;No.&#160;69, &#147;Disclosures about Oil and Gas Producing Activities.&#148; The supplemental information includes capitalized costs related to crude oil and gas producing activities; costs incurred for the acquisition of oil and gas producing activities, exploration and development activities; and the results of operations from oil and gas producing activities. Supplemental information is also provided for per unit production costs; oil and gas production and average sales prices; the estimated quantities of proved oil and gas reserves; the standardized measure of discounted future net cash flows associated with proved oil and gas reserves; and a summary of the changes in the standardized measure of discounted future net cash flows associated with proved oil and gas reserves. </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV > <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s capitalized costs consisted of the following (in thousands): </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Capitalized Costs Related to Oil and Gas Producing Activities</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="61%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas and crude oil properties: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Proved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,676,072 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,848,531 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,636,832 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Unproved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 215,698 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 259,610 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 282,374 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total natural gas and crude oil properties </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,891,770 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,108,141 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,919,206 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Less accumulated depreciation and depletion </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,369,840 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (230,974 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (60,752 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net natural gas and crude oil properties capitalized costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,521,930 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,877,167 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,858,454 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Costs Incurred in Property Acquisition, Exploration and Development Activities</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="62%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Acquisitions of properties: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Proved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 366,275 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 303,282 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,311,029 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Unproved </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,982 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 268,839 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Exploration(1) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 391,672 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 361,973 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,612 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Development </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,132,078 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 485,348 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 115,153 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total cost incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,907,007 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,150,603 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,713,633 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> 2008 and 2007 amounts include seismic costs of $68.8&#160;million and $38.6&#160;million, respectively. 2008 amount also includes pipe inventory costs of $47.2&#160;million.</TD> </TR> </TABLE> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!--DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s results of operations from oil and gas producing activities for each of the years 2008, 2007 and 2006 are shown in the following table (in thousands): </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Results of Operations for Oil and Gas Producing Activities</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="87%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>For the Year Ended December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 101,252 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 39,803 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, depletion and amortization expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,723 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 65,526 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Income before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 35,726 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,718 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Results of operations for oil and gas producing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 25,008 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>For the Year Ended December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 477,612 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 125,749 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, depletion and amortization expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 169,392 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 295,141 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Income before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 182,471 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Provision for income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 65,690 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Results of operations for oil and gas producing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 116,781 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>For the Year Ended December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 908,689 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expenses: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 189,598 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation, depletion, amortization and impairment expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,140,685 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,330,283 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Loss before income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,421,594 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Benefit of income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,819 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Results of operations for oil and gas producing activities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,384,775 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Proved oil and gas reserves are the estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, that is, prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions. Proved developed reserves are the quantities of oil, natural gas and natural gas liquids expected to be recovered through existing investments in wells and field infrastructure under current operating conditions. Proved undeveloped reserves require additional investments in wells and related infrastructure in order to recover the production. </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The table below represents the Company&#146;s estimate of proved natural gas and crude oil reserves attributable to the Company&#146;s net interest in oil and gas properties based upon the evaluation by the Company and its independent petroleum engineers of pertinent geological and engineering data in accordance with SEC regulations. Estimates of substantially all of the Company&#146;s proved reserves have been prepared by independent reservoir engineers and geoscience professionals and are reviewed by members of the Company&#146;s senior management with professional training in petroleum engineering to ensure that the Company consistently applies rigorous professional standards and the reserve definitions prescribed by the SEC. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Netherland, Sewell&#160;&#038; Associates, Inc. and DeGolyer and MacNaughton, independent crude oil and gas consultants, have prepared the estimates of proved reserves of natural gas and oil attributable to substantially all of the Company&#146;s net interest in natural gas and crude oil properties as of the end of one or more of 2008, 2007 and 2006. Netherland, Sewell&#160;&#038; Associates, Inc. and DeGolyer and MacNaughton are independent petroleum engineers, geologists, geophysicists and petrophysicists and do not own an interest in the Company or its properties and are not employed on a contingent basis. Netherland, Sewell&#160;&#038; Associates, Inc. prepared the estimates of proved reserves for a majority of the Company&#146;s properties other than those held by SandRidge Tertiary, LLC (formerly PetroSource Production Co), which constitute approximately 90% of the Company&#146;s total proved reserves as of December&#160;31, 2008. DeGolyer and MacNaughton prepared the estimates of proved reserves for SandRidge Tertiary, LLC, which constitute approximately 6% of our total proved reserves as of December&#160;31, 2008. The small remaining portion of estimates of proved reserves were based on Company estimates. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company believes the geologic and engineering data examined provides reasonable assurance that the proved reserves are recoverable in future years from known reservoirs under existing economic and operating conditions. Estimates of proved reserves are subject to change, either positively or negatively, as additional information is available and contractual and economic conditions change. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During 2008, 2007 and 2006, the Company recognized additional reserves attributable to extensions and discoveries as a result of successful drilling in the Pi&#241;on Field. Drilling expenditures of $129.8&#160;million, $97.1&#160;million and $18.6&#160;million resulted in the addition of 57.8&#160;Bcfe, 44.7&#160;Bcfe and 10.9&#160;Bcfe of net proved developed reserves by extending the field boundaries as well as proving the producing capabilities of formations not previously captured as proved reserves for 2008, 2007 and 2006, respectively. The remaining 136.5&#160;Bcfe, 55.1&#160;Bcfe and 83.1&#160;Bcfe of net proved reserves for 2008, 2007 and 2006, respectively, are proved undeveloped reserves associated with direct offsets to the drilling program extending the boundaries of the Pi&#241;on Field and zone identification. Changes in reserves associated with the development drilling have been accounted for in revisions of previous reserve estimates. </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Reserve Quantity Information</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Crude oil</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Nat. Gas</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(MBbls)</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(MMcf)(a)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Proved developed and undeveloped reserves:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2005 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,436 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 237,413 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Revisions of previous estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,250 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 19,139 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Acquisitions of new reserves </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 13,753 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 514,170 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 58 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 93,396 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (322 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (13,410 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2006 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25,175 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 850,708 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Revisions of previous estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,492 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 318,639 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Acquisitions of new reserves </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 53 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 75,139 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,849 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 104,501 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,042 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (51,958 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 36,527 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,297,029 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Revisions of previous estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,738 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 412,155 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Acquisitions of new reserves </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 513 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,008 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,728 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 241,596 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Sales of reserves in place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (8 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,750 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,334 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (87,402 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 43,164 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,899,636 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Proved developed reserves:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2005 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 899 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 69,377 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2006 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,994 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 308,296 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,532 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 590,358 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> As of December&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 15,342 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 851,357 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (a) </TD> <TD></TD> <TD valign="bottom"> Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The standardized measure of discounted cash flows and summary of the changes in the standardized measure computation from year to year are prepared in accordance with SFAS&#160;No.&#160;69. The assumptions that underlie the computation of the standardized measure of discounted cash flows may be summarized as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> the standardized measure includes the Company&#146;s estimate of proved oil, natural gas and natural gas liquids reserves and projected future production volumes based upon year-end economic conditions; </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> pricing is applied based upon year-end market prices adjusted for fixed or determinable contracts that are in existence at year-end. The calculated weighted average per unit prices for the Company&#146;s proved reserves and future net revenues were as follows: </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="77%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="2%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="2%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="2%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="2%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="2%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="2%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>At December&#160;31,</B> </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2006</B> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Natural gas (per Mcf) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4.94 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6.46 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5.32 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Crude oil (per barrel) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 39.42 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 87.47 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 54.62 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> future development and production costs are determined based upon actual cost at year-end; </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> the standardized measure includes projections of future abandonment costs based upon actual costs at year-end;&#160;and </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> a discount factor of 10% per year is applied annually to the future net cash flows. </TD> </TR> </TABLE> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Standardized Measure of Discounted Future Net Cash Flows Related to<BR> Proved Oil and Gas Reserves</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="86%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="10%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>As of December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future cash inflows from production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 5,901,660 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,623,216 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future development costs(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (931,947 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future income tax expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (638,599 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Undiscounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,707,898 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> 10% annual discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,267,752 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Standardized measure of discounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,440,146 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>As of December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future cash inflows from production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 11,578,381 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,706,208 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future development costs(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,640,500 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future income tax expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,782,909 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Undiscounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,448,764 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> 10% annual discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,730,227 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Standardized measure of discounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,718,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>As of December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future cash inflows from production </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 11,092,154 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future production costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,887,553 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future development costs(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,153,506 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Future income tax expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (399,014 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Undiscounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,652,081 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> 10% annual discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,431,505 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Standardized measure of discounted future net cash flows </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,220,576 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (a) </TD> <TD></TD> <TD valign="bottom"> Includes abandonment costs.</TD> </TR> </TABLE> </DIV><!-- END PAGE WIDTH --> <DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">SandRidge Energy, Inc. and Subsidiaries<BR> </FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <!-- DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Notes to Consolidated Financial Statements&#160;&#151;&#160;(Continued)</FONT></B> </DIV --> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table represents the Company&#146;s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands): </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Changes in the Standardized Measure of Discounted Future Net Cash Flows<BR> From Proved Oil and Gas Reserves</FONT></B> </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="88%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2005</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 499,154 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Changes during the year: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revenues less production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (61,449 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in prices, production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (294,437 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Development costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 75,323 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in future development costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (75,466 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 126,061 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revisions of previous quantity estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 54,313 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Accretion of discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 73,643 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net change in income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (36,962 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Purchases of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,135,062 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Timing differences and other(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (55,096 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net change for the year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 940,992 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2006</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,440,146 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Changes during the year: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revenues less production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (351,863 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in prices, production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 800,630 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Development costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 485,348 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in future development costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (723,943 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 328,094 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revisions of previous quantity estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 998,729 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Accretion of discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 88,596 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net change in income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (537,835 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Purchases of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 155,051 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Timing differences and other(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 35,584 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net change for the year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,278,391 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2007</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,718,537 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Changes during the year: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revenues less production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (719,091 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in prices, production and other costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,747,962 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Development costs incurred </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,132,078 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net changes in future development costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,152,018 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Extensions and discoveries </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 227,874 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Revisions of previous quantity estimates </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 757,939 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Accretion of discount </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 168,811 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net change in income taxes </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 794,001 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Purchases of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 47,767 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Sales of reserves in-place </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,076 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Timing differences and other(a) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,284 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net change for the year </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (497,961 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>Present value as of December&#160;31, 2008</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,220,576 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (a) </TD> <TD></TD> <TD valign="bottom"> The change in timing differences and other are related to revisions in the Company&#146;s estimated time of production and development.</TD> </TR> </TABLE> </DIV><!-- END PAGE WIDTH --> </HTML> 25.&#160;&#160; Supplemental Information on Oil and Gas Producing Activities (Unaudited) &nbsp; The Supplementary Information on Oil and Gas Producing false false This text block may contain all or parts of the required disclosures for oil and gas producing industries in tables or other formats. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 69 -Paragraph 10-38 false 28 1 us-gaap_QuarterlyFinancialInformationTextBlock us-gaap true na duration string This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a... false false false false false false false false false 1 false false 0 0 <HTML> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="5%"></TD> <TD width="95%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">26.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Quarterly Financial Results (Unaudited)</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s operating results for each quarter of 2008 and 2007 are summarized below (in thousands, except per share data). </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="54%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>First<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Second<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Third<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Fourth<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Quarter</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> <B>2008:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 269,086 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 378,050 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 334,023 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 200,655 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (62,811 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (11,795 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 401,287 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,664,828 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (56,625 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (20,343 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 230,346 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,594,658 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income (applicable) available to common stockholders </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (66,207 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (26,993 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 230,346 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (1,594,658 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net (loss) income per share (applicable) available to common stockholders(1): </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Basic </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.17 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1.41 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (9.78 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Diluted </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.47 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.17 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1.40 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (9.78 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> <B>2007:</B> </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total revenues </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 149,064 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 159,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 153,648 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 215,677 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Income from operations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,468 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 75,160 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 59,716 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 48,515 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Net (loss) income </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (19,493 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 34,564 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 20,920 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 14,230 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> (Loss) income available (applicable) to common stockholders </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (28,459 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 22,270 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 11,607 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,915 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Basic and diluted: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Net (loss) income per share (applicable) available to common stockholders(1) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> (0.31 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.21 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.11 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 0.04 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="2%"></TD> <TD width="1%"></TD> <TD width="97%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Income (loss) available (applicable) to common stockholders for each quarter is computed using the weighted-average number of shares outstanding during the quarter, while earnings per share for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Thus, the sum of income (loss) available (applicable) to common stockholders for each of the four quarters may not equal the fiscal year amount.</TD> </TR> </TABLE> </HTML> 26.&#160;&#160; Quarterly Financial Results (Unaudited) &nbsp; The Company&#146;s operating results for each quarter of 2008 and 2007 are summarized false false This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section G -Subsection 1 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 23, 24 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 30 -Subparagraph a-j Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 302 -Paragraph a false false 1 27 false UnKnown UnKnown UnKnown false true XML 12 R6.xml IDEA: Statement of Shareholders' Equity and Other Comprehensive Income 1.0.0.3 true Statement of Shareholders' Equity and Other Comprehensive Income (USD $) In Thousands false 1 $ true false false false Common Stock us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_CommonStockMember us-gaap_StatementEquityComponentsAxis explicitMember USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ true false false false Additional Paid-in Capital us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AdditionalPaidInCapitalMember us-gaap_StatementEquityComponentsAxis explicitMember USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 3 $ true false false false Treasury Stock us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_TreasuryStockMember us-gaap_StatementEquityComponentsAxis explicitMember USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 4 $ true false false false Retained Earnings (Accumulated Deficit) us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_RetainedEarningsMember us-gaap_StatementEquityComponentsAxis explicitMember USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 5 $ true false false false Deferred Compensation us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedDefinedBenefitPlansAdjustmentMember us-gaap_StatementEquityComponentsAxis explicitMember USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 6 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 6 4 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false true false false 1 true true 73000 73 true false 2 true true 243920000 243920 true false 3 true true -17335000 -17335 true false 4 true true 77229000 77229 true false 5 true true -14885000 -14885 true false 6 true true 289002000 289002 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 5 3 us-gaap_IncreaseDecreaseInStockholdersEquityRollForward us-gaap true na duration string A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 false false A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false 7 4 sd_StockOffering sd false debit duration monetary Stock offering false false false false false false false false false 1 false false 0 0 true false 2 false true 3343000 3343 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false true 3343000 3343 false false Stock offering No authoritative reference available. false 8 4 sd_ChangeInAccountingPrincipleStockbasedCompensation sd false debit duration monetary Change in accounting principle for stock-based compensation false false false false false false false false false 1 false false 0 0 true false 2 false true -14885000 -14885 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false true 14885000 14885 true false 6 false false 0 0 false false Change in accounting principle for stock-based compensation No authoritative reference available. false 9 4 us-gaap_StockIssuedDuringPeriodValueAcquisitions us-gaap true credit duration monetary Value of stock issued pursuant to acquisitions during the period. false false false false false false false false false 1 false true 13000 13 true false 2 false true 236271000 236271 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false true 236284000 236284 false false Value of stock issued pursuant to acquisitions during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 10 4 us-gaap_StockIssuedDuringPeriodValueNewIssues us-gaap true credit duration monetary Value of new stock issued during the period. false false false false false false false false false 1 false true 6000 6 true false 2 false true 97427000 97427 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false true 97433000 97433 false false Value of new stock issued during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 12 4 us-gaap_IncreaseInCarryingAmountOfRedeemablePreferredStock us-gaap true debit duration monetary Adjustment to retain earnings for the increase in carrying amount of redeemable preferred stock that is classified as... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -157000 -157 true false 5 false false 0 0 true false 6 false true -157000 -157 false false Adjustment to retain earnings for the increase in carrying amount of redeemable preferred stock that is classified as temporary equity. The initial carrying amount of redeemable preferred stock should be its fair value at date of issue. Where fair value at date of issue is less than the mandatory redemption amount, the carrying amount shall be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. The carrying amount shall be further periodically increased by amounts representing dividends not currently declared or paid, but which will be payable under the mandatory redemption features, or for which ultimate payment is not solely within the control of the registrant (e.g., dividends that will be payable out of future earnings). The accounting described would apply irrespective of whether the redeemable preferred stock may be voluntarily redeemed by the issuer prior to the mandatory redemption date, or whether it may be converted into another class of securities by the holder. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 3 -Section C false 14 4 us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeituresAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 false false No definition available. false 15 5 us-gaap_TreasuryStockValueAcquiredCostMethod us-gaap true debit duration monetary Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false true -500000 -500 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false true -500000 -500 false false Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b false 17 5 us-gaap_ShareBasedCompensation us-gaap true debit duration monetary The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options,... false false false false false false false false false 1 false false 0 0 true false 2 false true 8792000 8792 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false true 8792000 8792 false false The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 20 4 us-gaap_NetIncomeLossAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 false false No definition available. false 21 5 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true 15621000 15621 true false 5 false false 0 0 true false 6 false true 15621000 15621 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 true 23 4 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false false true false 1 false true 92000 92 true false 2 false true 574868000 574868 true false 3 false true -17835000 -17835 true false 4 false true 92693000 92693 true false 5 false false 0 0 true false 6 false true 649818000 649818 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 5 3 us-gaap_IncreaseDecreaseInStockholdersEquityRollForward us-gaap true na duration string A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 false false A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false 10 4 us-gaap_StockIssuedDuringPeriodValueNewIssues us-gaap true credit duration monetary Value of new stock issued during the period. false false false false false false false false false 1 false true 50000 50 true false 2 false true 1113314000 1113314 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true 1113364000 1113364 false false Value of new stock issued during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 11 4 sd_ConversionCommonStockToRedeemableConvertiblePreferredStock sd false debit duration monetary Conversion of common stock to redeemable convertible preferred stock false false false false false false false false false 1 false true -1000 -1 true false 2 false true -9650000 -9650 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true -9651000 -9651 false false Conversion of common stock to redeemable convertible preferred stock No authoritative reference available. false 12 4 us-gaap_IncreaseInCarryingAmountOfRedeemablePreferredStock us-gaap true debit duration monetary Adjustment to retain earnings for the increase in carrying amount of redeemable preferred stock that is classified as... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -1421000 -1421 true false 5 false false 0 0 false false 6 false true -1421000 -1421 false false Adjustment to retain earnings for the increase in carrying amount of redeemable preferred stock that is classified as temporary equity. The initial carrying amount of redeemable preferred stock should be its fair value at date of issue. Where fair value at date of issue is less than the mandatory redemption amount, the carrying amount shall be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. The carrying amount shall be further periodically increased by amounts representing dividends not currently declared or paid, but which will be payable under the mandatory redemption features, or for which ultimate payment is not solely within the control of the registrant (e.g., dividends that will be payable out of future earnings). The accounting described would apply irrespective of whether the redeemable preferred stock may be voluntarily redeemed by the issuer prior to the mandatory redemption date, or whether it may be converted into another class of securities by the holder. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 3 -Section C false 14 4 us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeituresAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 false false No definition available. false 15 5 us-gaap_TreasuryStockValueAcquiredCostMethod us-gaap true debit duration monetary Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. false false false false false false false false false 1 false true -1000 -1 true false 2 false false 0 0 true false 3 false true -1660000 -1660 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true -1661000 -1661 false false Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b false 16 5 sd_CommonStockIssuedUnderRetirementPlan sd false debit duration monetary Common stock issued under retirement plan false false false false false false false false false 1 false false 0 0 true false 2 false true 379000 379 true false 3 false true 917000 917 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true 1296000 1296 false false Common stock issued under retirement plan No authoritative reference available. false 17 5 us-gaap_ShareBasedCompensation us-gaap true debit duration monetary The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options,... false false false false false false false false false 1 false false 0 0 true false 2 false true 7202000 7202 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true 7202000 7202 false false The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 20 4 us-gaap_NetIncomeLossAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 false false No definition available. false 21 5 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true 50221000 50221 true false 5 false false 0 0 false false 6 false true 50221000 50221 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 true 22 4 us-gaap_PreferredStockDividend us-gaap true debit duration monetary Total dividends declared for each class of preferred stock. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -42277000 -42277 true false 5 false false 0 0 false false 6 false true -42277000 -42277 false false Total dividends declared for each class of preferred stock. No authoritative reference available. false 23 4 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false false true false 1 false true 140000 140 true false 2 false true 1686113000 1686113 true false 3 false true -18578000 -18578 true false 4 false true 99216000 99216 true false 5 false false 0 0 false false 6 false true 1766891000 1766891 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 5 3 us-gaap_IncreaseDecreaseInStockholdersEquityRollForward us-gaap true na duration string A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 false false A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false 12 4 us-gaap_IncreaseInCarryingAmountOfRedeemablePreferredStock us-gaap true debit duration monetary Adjustment to retain earnings for the increase in carrying amount of redeemable preferred stock that is classified as... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -7636000 -7636 true false 5 false false 0 0 false false 6 false true -7636000 -7636 false false Adjustment to retain earnings for the increase in carrying amount of redeemable preferred stock that is classified as temporary equity. The initial carrying amount of redeemable preferred stock should be its fair value at date of issue. Where fair value at date of issue is less than the mandatory redemption amount, the carrying amount shall be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. The carrying amount shall be further periodically increased by amounts representing dividends not currently declared or paid, but which will be payable under the mandatory redemption features, or for which ultimate payment is not solely within the control of the registrant (e.g., dividends that will be payable out of future earnings). The accounting described would apply irrespective of whether the redeemable preferred stock may be voluntarily redeemed by the issuer prior to the mandatory redemption date, or whether it may be converted into another class of securities by the holder. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 3 -Section C false 13 4 sd_ConversionRedeemableConvertiblePreferredStockToCommonStock sd false debit duration monetary Conversion of redeemable convertible preferred stock to common stock false false false false false false false false false 1 false true 23000 23 true false 2 false true 458328000 458328 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true 458351000 458351 false false Conversion of redeemable convertible preferred stock to common stock No authoritative reference available. false 14 4 us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeituresAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 false false No definition available. false 15 5 us-gaap_TreasuryStockValueAcquiredCostMethod us-gaap true debit duration monetary Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false true -3553000 -3553 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true -3553000 -3553 false false Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b false 16 5 sd_CommonStockIssuedUnderRetirementPlan sd false debit duration monetary Common stock issued under retirement plan false false false false false false false false false 1 false false 0 0 true false 2 false true 3167000 3167 true false 3 false true 2799000 2799 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true 5966000 5966 false false Common stock issued under retirement plan No authoritative reference available. false 17 5 us-gaap_ShareBasedCompensation us-gaap true debit duration monetary The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options,... false false false false false false false false false 1 false false 0 0 true false 2 false true 18784000 18784 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true 18784000 18784 false false The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 18 4 us-gaap_AdjustmentsToAdditionalPaidInCapitalAbstract us-gaap true na duration string A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 false false A roll forward is a reconciliation of an account balance from the beginning of a period to the end of a period. false 19 5 us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation us-gaap true credit duration monetary Tax benefit associated with any share-based compensation plan other than an employee stock ownership plan (ESOP). (ESOP). The... false false false false false false false false false 1 false false 0 0 true false 2 false true 4594000 4594 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false true 4594000 4594 false false Tax benefit associated with any share-based compensation plan other than an employee stock ownership plan (ESOP). (ESOP). The tax benefit results from the deduction by the entity on its tax return for an award of stock that exceeds the cumulative compensation cost for common stock or preferred stock recognized for financial reporting. Includes any resulting tax benefit that exceeds the previously recognized deferred tax asset (excess tax benefits). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 62 false 20 4 us-gaap_NetIncomeLossAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 false false No definition available. false 21 5 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -1441280000 -1441280 true false 5 false false 0 0 false false 6 false true -1441280000 -1441280 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 true 22 4 us-gaap_PreferredStockDividend us-gaap true debit duration monetary Total dividends declared for each class of preferred stock. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -8596000 -8596 true false 5 false false 0 0 false false 6 false true -8596000 -8596 false false Total dividends declared for each class of preferred stock. No authoritative reference available. false 23 4 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false false true false 1 true true 163000 163 true false 2 true true 2170986000 2170986 true false 3 true true -19332000 -19332 true false 4 true true -1358296000 -1358296 true false 5 false false 0 0 false false 6 true true 793521000 793521 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false false 6 38 false Thousands UnKnown UnKnown false true XML 13 R5.xml IDEA: Consolidated Statements of Cash Flows (Parenthetical) 1.0.0.3 false Consolidated Statements of Cash Flows (Parenthetical) (USD $) In Thousands false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 3 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 0 sd_ConsolidatedStatementsCashFlowsParenthetical sd false na duration string Consolidated Statements of Cash Flows (Parenthetical) false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false Consolidated Statements of Cash Flows (Parenthetical) false 3 1 us-gaap_CashAcquiredFromAcquisition us-gaap true debit duration monetary The cash inflow associated with the acquisition of business during the period (for example, cash that was held by the... false false false false false false false false false 1 true true 0 0 false false 2 true true 0 0 false false 3 true true 21100000 21100 false false The cash inflow associated with the acquisition of business during the period (for example, cash that was held by the acquired business). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16, 17 false false 3 2 false Thousands UnKnown UnKnown false true XML 14 defnref.xml IDEA: XBRL DOCUMENT Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 Other Long-Term Obligations No authoritative reference available. Noncurrent portion of the carrying amount of a liability for an asset retirement obligation. An asset retirement obligation is a legal obligation associated with the disposal or retirement of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 143 -Paragraph 3, 10, 22 Amount for accounts payable to related parties. For classified balance sheets, used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer); for unclassified balance sheets, used to reflect the total liabilities (regardless of due date). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 2 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Subparagraph (1) -Article 4 Total number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) issued to shareholders (includes also preferred shares that have been repurchased). May be all or portion of the number of preferred shares authorized. These shares represent the ownership interest of the preferred shareholders. Excludes preferred shares that are classified as debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph (f) Fair value as of the balance sheet date of assets resulting from derivative contracts expected to be settled within one year. No authoritative reference available. Change in accounting principle for stock-based compensation No authoritative reference available. The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 41, 42, 43 Revenue from oil and gas-related services including well services (such as drilling, rigs and analytic evaluations), transportation, and other supporting contractor services, during the reporting period. No authoritative reference available. The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 The charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 45, 46, 47 Description and amounts of accounts payable and accrued disclosure at the end of the reporting period. This element may be used for the entire disclosure as a single block of text. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20, 24 -Article 5 The charge against earnings that represents the reduction of the currently-stated financial value of inventory items based on a determination that future worth is less than the acquisition cost due to obsolescence or market changes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 The number of redeemable convertible preferred shares that have been sold (or granted) to the entity's shareholders. Shares issued includes shares outstanding and shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 The fair value of stock issued in noncash financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 Capitalized costs of oil and gas properties with associated proved reserves accounted for under the full cost method. No authoritative reference available. The net change during the reporting period in the total amount due within one year (or one operating cycle) from all parties, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section G -Subsection 1 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 23, 24 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 30 -Subparagraph a-j Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 302 -Paragraph a The component of interest expense comprised of the periodic charge against earnings over the life of the financing arrangement to which such costs relate. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 8 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 8 -Article 9 The cash inflow associated with the sale, maturity and collection of all investments such as debt, security and so forth during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16 The maximum number of redeemable convertible preferred shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 Other noncurrent investments not otherwise specified in the taxonomy, not including investments in marketable securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 12 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 1(f) -Article 7 Carrying value as of the balance sheet date of obligations incurred and payable to vendors (other than related parties) within one year for goods and services received that are used in an entity's business. No authoritative reference available. The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c Stock offering No authoritative reference available. No authoritative reference available. No authoritative reference available. Description containing the entire pension and other postretirement benefits disclosure as a single block of text. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 74, 77, 78, 518 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 54, 56, 264 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-02 -Paragraph 8 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 88 -Paragraph 17, 48 No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph (c) -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 05 -Paragraph (c) -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 12 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 06 -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 24 Interest earned on cash and equivalents whose use in whole or in part is restricted for the long-term, generally by contractual agreements or regulatory requirements. No authoritative reference available. The net cash inflow (outflow) for the net change associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16, 17 The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due within one year (or one business cycle). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 2 -Subparagraph d Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3 -Subparagraph a -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Subparagraph (2) -Article 4 Derivative contracts, current No authoritative reference available. Costs incurred to operate and maintain an entity's wells and related equipment and facilities. No authoritative reference available. Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Subparagraph fn1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 No authoritative reference available. No authoritative reference available. The aggregate value of preferred stock dividends and other adjustments necessary to derive net income apportioned to common stockholders. No authoritative reference available. Description of a business acquisition (or series of individually immaterial business combinations) planned, initiated, or completed during the period, including background, timing, and allocation of acquisition costs. This element may be used as a single block of text to encapsulate the all disclosures (including data and tables) regarding business combinations including leverage buyout transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 Cash and equivalents whose use in whole or in part is restricted for the long-term, generally by contractual agreements or regulatory requirements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 Number of basic shares determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 21 -Article 5 Accumulated depreciation and depletion of oil and gas property carried under the full cost method. No authoritative reference available. No authoritative reference available. No authoritative reference available. Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 24 -Article 5 The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 Billings in Excess of Costs Incurred No authoritative reference available. Interest earned on deposits in United States money market accounts and other United States interest earning accounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 4 -Article 9 Basic and Diluted Earnings Per Share,Net (loss) income No authoritative reference available. Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph A240 -Subparagraph i Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 00-15 -Paragraph 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 2 Redeemable convertible preferred stock obligation is not included in permanent equity within Stockholders' equity and does not fall under the classification of asset or liability under SFAS 150. Type of security with redemption features that are outside the control of the issuer, that are not mandatorily redeemably and the issuer cannot demonstrate that it would be able to deliver under the conversion option upon conversion in all cases. Includes preferred stock that has a fixed or determinable redemption date, is redeemable at the option of the holder, or has conditions for redemption that are outside the issuer's control. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 Capitalized assets classified as property, plant and equipment not otherwise defined in the taxonomy, net of associated accumulated depreciation and amortization. No authoritative reference available. Cash outflow associated with long-term loans to investees (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. No authoritative reference available. Disclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 4, 5 The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 The other noncash expense, not otherwise specified in the taxonomy, charged against earnings in the period to allocate the cost of tangible and intangible assets over their remaining economic lives. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 4, 5 Description of risk management strategies, derivatives in hedging activities and nonhedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44, 45, 46, 47 Sum of operating profit and nonoperating income (expense) before income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Subparagraph (1)(i) -Article 4 Costs incurred to provide drilling, oil services, and CO2 services No authoritative reference available. Value of common and preferred stock of an entity that have been repurchased by an entity. Treasury stock is issued but not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Technical Bulletin (FTB) -Number 85-6 -Paragraph 3 This text block may contain all or parts of the required disclosures for oil and gas producing industries in tables or other formats. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 69 -Paragraph 10-38 Liabilities due to billings on long term contracts that exceed the income recorded under the percentage of completion contract accounting method, or that exceed the accumulated costs under the completed contract accounting method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 45 -Paragraph 5, 12 Aggregate carrying amount, as of the balance sheet date, of current assets not separately disclosed in the balance sheet due to materiality considerations. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 8 -Article 5 This element may be used to describe all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8 Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (d) -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C, E Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12, 13 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Value of issued common stock that may be calculated differently depending on whether the stock is issued at par value, no par or stated value. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Article 5 Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 1 -Article 5 The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 Value of each class of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) that may be calculated differently depending on whether the stock is issued at par value, no par or stated value. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 The aggregate amount of income (expense) from ancillary business-related activities (that is to say, excluding major activities considered part of the normal operations of the business). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 7 -Article 5 Amount due from customers (other than related parties) within one year of the balance sheet date for good or services that have been delivered or sold in the normal course of business, less an allowance established for amounts deemed uncertain of collection. No authoritative reference available. Value of new stock issued during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Conversion of redeemable convertible preferred stock to common stock No authoritative reference available. Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes payable, bonds payable, debentures, mortgage loans, and commercial paper, which are scheduled to be repaid within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Article 5 Total dividends declared for each class of preferred stock. No authoritative reference available. The cash outflow to return capital to noncontrolled interest, which generally occurs when minority shareholders reduce their ownership stake (in a subsidiary of the entity). This element does not include dividends paid to minority shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 32 -Article 5 This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 1-4 Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. This caption alerts the reader that one or more notes to the financial statements disclose pertinent information about the entity's commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 17 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 25 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 19 -Article 7 The current period expense charged against earnings on long-lived, physical assets used in the normal conduct of business and not intended for resale to allocate or recognize the cost of assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset. Examples include buildings, production equipment and customer lists. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 4, 5 Conversion of common stock to redeemable convertible preferred stock No authoritative reference available. No authoritative reference available. No authoritative reference available. Revenue related to midstream and downstream gas activities. May include the following: gathering from wells, processing to remove impurities, storage, transmission, and the sale of natural gas and related products. No authoritative reference available. Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 8 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 34 -Paragraph 21 This element may be used as a single block of text to encapsulate the entire disclosure for long-term borrowings including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Disclosure itemizing the various types of trade accounts and notes receivable, and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the valuation allowance for receivables is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of origination fees and costs, including the amortization method for net deferred fees or costs (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status and (7) the treatment of foreclosures or repossessions (8) the nature and amount of any guarantees to repurchase receivables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 The cash inflow from the sale of property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph c The cash outflow for debt initially having maturity due after one year or beyond the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b Current portion of the carrying amount of a liability for an asset retirement obligation. An asset retirement obligation is a legal obligation associated with the disposal or retirement of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 143 -Paragraph 3, 10, 22 Value of stock issued pursuant to acquisitions during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 The difference between the sale price or salvage price and the book value of a property, plant, and equipment asset that was sold or retired during the reporting period. This element refers to the gain (loss). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Receivable Accounts Top Group No authoritative reference available. Future cash outflow to pay for purchases of fixed assets that have occurred. No authoritative reference available. Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 The net amount of other nonoperating income and expense, which does not qualify for separate disclosure on the income statement under materiality guidelines. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 9 -Article 5 Fair value as of the balance sheet date of assets resulting from derivative contracts expected to exist longer than one year. No authoritative reference available. The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. No authoritative reference available. Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 41, 42, 43 Amount of the current period expense charged against operations, the offset which is generally to the allowance for doubtful accounts for the purpose of reducing receivables, including notes receivable, to an amount that approximates their net realizable value (the amount expected to be collected). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 5 -Article 5 No authoritative reference available. No authoritative reference available. Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No authoritative reference available. Total costs of sales and operating expenses for the period. No authoritative reference available. The cash outflow paid to third parties in connection with debt origination, which will be amortized over the remaining maturity period of the associated long-term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 95-13 The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 Insurance premiums financed No authoritative reference available. The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 The cash outflow associated with the purchase of or advances to an equity method investments, which are investments in joint ventures and entities in which the entity has an equity ownership interest normally of 20 to 50 percent and exercises significant influence. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph b The cash inflow associated with the acquisition of business during the period (for example, cash that was held by the acquired business). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16, 17 Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. For classified balance sheets, used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer); for unclassified balance sheets, used to reflect the total liabilities (regardless of due date). No authoritative reference available. The net result for the period of deducting operating expenses from operating revenues. No authoritative reference available. The amount of dividends declared or paid in the period to preferred shareholders, or the amount for which the obligation to pay them dividends arose in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph b Gains and losses associated with derivative contracts. Includes realized and unrealized gains and losses. No authoritative reference available. Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 18 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 10 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 14 -Subparagraph (e) -Article 9 This element may be used to capture the complete disclosure pertaining to an entity's basic earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 Describes an entity's accounting policy for recognizing and measuring the impairment of long-lived assets. An entity also may disclose its accounting policy for long-lived assets to be sold. This policy excludes goodwill and intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 7-15, 26, 30-37 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section CC -Paragraph 3 -Subparagraph Describes disclosed significant events or transactions that occurred after the balance sheet date, but before the issuance of the financial statements. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, losses resulting from fire or flood, losses on receivables, significant realized and unrealized gains and losses that result from changes in quoted market prices of securities, declines in market prices of inventory, changes in authorized or issued debt (SEC), significant foreign exchange rate changes, substantial loans to insiders or affiliates, significant long-term investments, and substantial dividends not in the ordinary course of business. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 11 Common stock issued under retirement plan No authoritative reference available. The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 Other Current Assets. No authoritative reference available. Redeemable convertible preferred stock dividends, net of dividends paid No authoritative reference available. Fundings of restricted deposits No authoritative reference available. This item represents the entity's proportionate share for the period of the undistributed net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 19 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 9 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 6 -Subparagraph b Natural gas and crude oil properties, using full cost method of accounting No authoritative reference available. The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Basic and diluted (loss) income per share (applicable) available to common stockholders No authoritative reference available. The fair value of liabilities assumed in Noncash investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 Sum of the carrying values as of the balance sheet date of all long-term debt, which is debt initially having maturities due after one year or beyond the operating cycle, if longer, but excluding the portions thereof scheduled to be repaid within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Adjustment to retain earnings for the increase in carrying amount of redeemable preferred stock that is classified as temporary equity. The initial carrying amount of redeemable preferred stock should be its fair value at date of issue. Where fair value at date of issue is less than the mandatory redemption amount, the carrying amount shall be increased by periodic accretions, using the interest method, so that the carrying amount will equal the mandatory redemption amount at the mandatory redemption date. The carrying amount shall be further periodically increased by amounts representing dividends not currently declared or paid, but which will be payable under the mandatory redemption features, or for which ultimate payment is not solely within the control of the registrant (e.g., dividends that will be payable out of future earnings). The accounting described would apply irrespective of whether the redeemable preferred stock may be voluntarily redeemed by the issuer prior to the mandatory redemption date, or whether it may be converted into another class of securities by the holder. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 3 -Section C No authoritative reference available. No authoritative reference available. The net change during the reporting period in the aggregate amount of obligations and expenses incurred but not paid. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 9 -Article 5 The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph a, b Restricted Deposits. No authoritative reference available. The net change during the reporting period in the liability reflecting cash payments received before the related costs have been incurred. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 Natural gas and crude oil properties, using full cost method of accounting, net No authoritative reference available. Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). No authoritative reference available. Taxes assessed on oil and gas production No authoritative reference available. Income from equity method investments based on entity's ownership percentage. No authoritative reference available. Tax benefit associated with any share-based compensation plan other than an employee stock ownership plan (ESOP). (ESOP). The tax benefit results from the deduction by the entity on its tax return for an award of stock that exceeds the cumulative compensation cost for common stock or preferred stock recognized for financial reporting. Includes any resulting tax benefit that exceeds the previously recognized deferred tax asset (excess tax benefits). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 62 Accretion on redeemable convertible preferred stock No authoritative reference available. The sum of the capitalized costs of unproved properties excluded from amortization. No authoritative reference available. The number of redeemable convertible preferred shares that have been issued and are held by the entity's shareholders. Shares outstanding equals shares issued minus shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Article 5 The noncash expense charged against earnings to allocate the cost of tangible and intangible assets capitalized in the Full Cost Pool over the Pool's remaining useful life. No authoritative reference available. The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 Direct costs (e.g., legal and accounting fees) associated with issuing stock that is deducted from additional paid in capital. Also includes any direct costs associated with stock issues under a shelf registration. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Technical Practice Aid (TPA) -Number 4110 -Paragraph 1, 10 Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that have been repurchased). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued includes shares outstanding and shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 No authoritative reference available. No authoritative reference available. Carrying amount of redeemable convertible preferred stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Subparagraph b -Article 5 Net income (loss) apportioned to common stockholders after extraordinary items Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 9 The amount of cash paid during the current period for interest owed on money borrowed, net of interest capitalized. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph e Costs incurred to transport, treat, process and sell natural gas. No authoritative reference available. Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 The cash inflow from issuance of preferred stocks identified as being convertible into another form of financial instrument, typically the entity's common stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a Refunds of restricted deposits No authoritative reference available. No authoritative reference available. No authoritative reference available. Carrying amount of the equity interests owned by noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 27 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 20 -Article 7 The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 The net change during the reporting period in other operating assets not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 No authoritative reference available. No authoritative reference available. Revenue from the sale of oil and gas during the period. No authoritative reference available. The total amount of other operating income, not previously categorized, from items that are associated with the entity's normal revenue producing operation. No authoritative reference available. The (increases) decreases in the market value of derivative contracts which were included in earnings in the period. No authoritative reference available. Derivative contracts, noncurrent No authoritative reference available. Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 98-5 -Paragraph 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 62, 63 The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph b Basic and Diluted Earnings Per Share, Preferred stock dividends No authoritative reference available. No authoritative reference available. No authoritative reference available. Par value per share of redeemable convertible preferred stock. No authoritative reference available. The net change between the beginning and ending balance of cash and cash equivalents Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 The cash inflow from the additional capital contribution to the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Excludes common shares repurchased by the entity and held as Treasury shares. Shares outstanding equals shares issued minus shares held in treasury. Does not include common shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 The cash outflow to reacquire common and preferred stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a XML 15 R1.xml IDEA: Consolidated Statements of Operations (Income) 1.0.0.3 false Consolidated Statements of Operations (Income) (USD $) Share data in Thousands false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 3 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 14 12 us-gaap_OilAndGasRevenueAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 15 13 us-gaap_OilAndGasSalesRevenue us-gaap true credit duration monetary Revenue from the sale of oil and gas during the period. false false false false false false false false false 1 true true 908689000 908689000.00 false false 2 true true 477612000 477612000.00 false false 3 true true 101252000 101252000.00 false false Revenue from the sale of oil and gas during the period. No authoritative reference available. false 16 13 us-gaap_NaturalGasMidstreamRevenueAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 17 14 us-gaap_RevenueOilAndGasServices us-gaap true credit duration monetary Revenue from oil and gas-related services including well services (such as drilling, rigs and analytic evaluations),... false false false false false false false false false 1 false true 47199000 47199000.00 false false 2 false true 73197000 73197000.00 false false 3 false true 139049000 139049000.00 false false Revenue from oil and gas-related services including well services (such as drilling, rigs and analytic evaluations), transportation, and other supporting contractor services, during the reporting period. No authoritative reference available. false 18 14 us-gaap_GasGatheringTransportationMarketingAndProcessingRevenue us-gaap true credit duration monetary Revenue related to midstream and downstream gas activities. May include the following: gathering from wells, processing to... false false false false false false false false false 1 false true 207602000 207602000.00 false false 2 false true 107765000 107765000.00 false false 3 false true 122896000 122896000.00 false false Revenue related to midstream and downstream gas activities. May include the following: gathering from wells, processing to remove impurities, storage, transmission, and the sale of natural gas and related products. No authoritative reference available. false 19 12 us-gaap_OtherOperatingIncome us-gaap true credit duration monetary The total amount of other operating income, not previously categorized, from items that are associated with the entity's... false false false false false false false false false 1 false true 18324000 18324000.00 false false 2 false true 18878000 18878000.00 false false 3 false true 25045000 25045000.00 false false The total amount of other operating income, not previously categorized, from items that are associated with the entity's normal revenue producing operation. No authoritative reference available. false 20 11 us-gaap_Revenues us-gaap true credit duration monetary Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other... false false false false false false false false false 1 false true 1181814000 1181814000.00 false false 2 false true 677452000 677452000.00 false false 3 false true 388242000 388242000.00 false false Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 1 -Article 5 true 25 14 us-gaap_CostOfGoodsSoldOilAndGasAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 26 15 sd_Production sd false debit duration monetary Costs incurred to operate and maintain an entity's wells and related equipment and facilities. false false false false false false false false false 1 false true 159004000 159004000.00 false false 2 false true 106192000 106192000.00 false false 3 false true 35149000 35149000.00 false false Costs incurred to operate and maintain an entity's wells and related equipment and facilities. No authoritative reference available. false 29 13 us-gaap_TaxesOtherThanIncomeExciseProductionAndPropertyTaxesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 30 14 sd_ProductionTaxes sd false debit duration monetary Taxes assessed on oil and gas production false false false false false false false false false 1 false true 30594000 30594000.00 false false 2 false true 19557000 19557000.00 false false 3 false true 4654000 4654000.00 false false Taxes assessed on oil and gas production No authoritative reference available. false 31 13 us-gaap_MarketingAndAdvertisingExpenseAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 32 14 sd_DrillingServicesCost sd false debit duration monetary Costs incurred to provide drilling, oil services, and CO2 services false false false false false false false false false 1 false true 26186000 26186000.00 false false 2 false true 44211000 44211000.00 false false 3 false true 98436000 98436000.00 false false Costs incurred to provide drilling, oil services, and CO2 services No authoritative reference available. false 33 14 sd_MidstreamMarketingCost sd false debit duration monetary Costs incurred to transport, treat, process and sell natural gas. false false false false false false false false false 1 false true 186655000 186655000.00 false false 2 false true 94253000 94253000.00 false false 3 false true 115076000 115076000.00 false false Costs incurred to transport, treat, process and sell natural gas. No authoritative reference available. false 34 13 us-gaap_DepreciationAndAmortizationAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 35 14 sd_DepreciationDepletionAmortizationNaturalGasCrudeOil sd false debit duration monetary The noncash expense charged against earnings to allocate the cost of tangible and intangible assets capitalized in the Full... false false false false false false false false false 1 false true 290917000 290917000.00 false false 2 false true 173568000 173568000.00 false false 3 false true 26321000 26321000.00 false false The noncash expense charged against earnings to allocate the cost of tangible and intangible assets capitalized in the Full Cost Pool over the Pool's remaining useful life. No authoritative reference available. false 36 14 us-gaap_OtherDepreciationAndAmortization us-gaap true debit duration monetary The other noncash expense, not otherwise specified in the taxonomy, charged against earnings in the period to allocate the... false false false false false false false false false 1 false true 70448000 70448000.00 false false 2 false true 53541000 53541000.00 false false 3 false true 29305000 29305000.00 false false The other noncash expense, not otherwise specified in the taxonomy, charged against earnings in the period to allocate the cost of tangible and intangible assets over their remaining economic lives. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 4, 5 false 38 14 us-gaap_AssetImpairmentChargesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 39 15 us-gaap_AssetImpairmentCharges us-gaap true debit duration monetary The charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair... false false false false false false false false false 1 false true 1867497000 1867497000.00 false false 2 false false 0 0 false false 3 false false 0 0 false false The charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 45, 46, 47 true 41 13 us-gaap_GeneralAndAdministrativeExpenseAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 42 14 us-gaap_GeneralAndAdministrativeExpense us-gaap true debit duration monetary The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting... false false false false false false false false false 1 false true 109372000 109372000.00 false false 2 false true 61780000 61780000.00 false false 3 false true 55634000 55634000.00 false false The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. No authoritative reference available. true 43 12 us-gaap_GainLossOnDispositionOfAssetsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 44 13 sd_LossGainOnDerivativeContracts sd false credit duration monetary Gains and losses associated with derivative contracts. Includes realized and unrealized gains and losses. false false false false false false false false false 1 false true -211439000 -211439000.00 false false 2 false true -60732000 -60732000.00 false false 3 false true -12291000 -12291000.00 false false Gains and losses associated with derivative contracts. Includes realized and unrealized gains and losses. No authoritative reference available. false 45 12 us-gaap_GainLossOnSaleOfPropertyPlantEquipment us-gaap true credit duration monetary The difference between the sale price or salvage price and the book value of a property, plant, and equipment asset that was... false false false false false false false false false 1 false true -9273000 -9273000.00 false false 2 false true -1777000 -1777000.00 false false 3 false true -1023000 -1023000.00 false false The difference between the sale price or salvage price and the book value of a property, plant, and equipment asset that was sold or retired during the reporting period. This element refers to the gain (loss). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 46 11 us-gaap_CostsAndExpenses us-gaap true debit duration monetary Total costs of sales and operating expenses for the period. false false false false false false false false false 1 false true 2519961000 2519961000.00 false false 2 false true 490593000 490593000.00 false false 3 false true 351261000 351261000.00 false false Total costs of sales and operating expenses for the period. No authoritative reference available. true 47 10 us-gaap_OperatingIncomeLoss us-gaap true credit duration monetary The net result for the period of deducting operating expenses from operating revenues. false false false false false false false false false 1 false true -1338147000 -1338147000.00 false false 2 false true 186859000 186859000.00 false false 3 false true 36981000 36981000.00 false false The net result for the period of deducting operating expenses from operating revenues. No authoritative reference available. true 51 12 us-gaap_InvestmentIncomeInterestAndDividendAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 52 13 us-gaap_InterestIncomeDomesticDeposits us-gaap true credit duration monetary Interest earned on deposits in United States money market accounts and other United States interest earning accounts. false false false false false false false false false 1 false true 3569000 3569000.00 false false 2 false true 4694000 4694000.00 false false 3 false true 991000 991000.00 false false Interest earned on deposits in United States money market accounts and other United States interest earning accounts. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 4 -Article 9 true 53 12 us-gaap_InterestExpenseAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 54 13 us-gaap_InterestExpenseDebt us-gaap true debit duration monetary Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. false false false false false false false false false 1 false true -147027000 -147027000.00 false false 2 false true -117185000 -117185000.00 false false 3 false true -16904000 -16904000.00 false false Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 8 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 34 -Paragraph 21 false 55 10 us-gaap_MinorityInterestInNetIncomeLossOfConsolidatedEntitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 56 11 us-gaap_MinorityInterestInNetIncomeLossOfConsolidatedEntities us-gaap true debit duration monetary Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one... false false false false false false false false false 1 false true -855000 -855000.00 false false 2 false true 276000 276000.00 false false 3 false true -296000 -296000.00 false false Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 18 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 10 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 14 -Subparagraph (e) -Article 9 true 57 10 us-gaap_IncomeLossFromEquityMethodInvestments us-gaap true credit duration monetary This item represents the entity's proportionate share for the period of the undistributed net income (loss) of its investee... false false false false false false false false false 1 false true 1398000 1398000.00 false false 2 false true 4372000 4372000.00 false false 3 false true 967000 967000.00 false false This item represents the entity's proportionate share for the period of the undistributed net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 19 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 9 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 6 -Subparagraph b false 58 10 us-gaap_OtherNonoperatingIncomeExpenseAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 59 11 us-gaap_OtherNonoperatingIncomeExpense us-gaap true credit duration monetary The net amount of other nonoperating income and expense, which does not qualify for separate disclosure on the income... false false false false false false false false false 1 false true 1454000 1454000.00 false false 2 false true 729000 729000.00 false false 3 false true 118000 118000.00 false false The net amount of other nonoperating income and expense, which does not qualify for separate disclosure on the income statement under materiality guidelines. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 9 -Article 5 true 60 10 us-gaap_NonoperatingIncomeExpense us-gaap true credit duration monetary The aggregate amount of income (expense) from ancillary business-related activities (that is to say, excluding major... false false false false false false false false false 1 false true -141461000 -141461000.00 false false 2 false true -107114000 -107114000.00 false false 3 false true -15124000 -15124000.00 false false The aggregate amount of income (expense) from ancillary business-related activities (that is to say, excluding major activities considered part of the normal operations of the business). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 7 -Article 5 true 61 9 us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments us-gaap true credit duration monetary Sum of operating profit and nonoperating income (expense) before income taxes. false false false false false false false false false 1 false true -1479608000 -1479608000.00 false false 2 false true 79745000 79745000.00 false false 3 false true 21857000 21857000.00 false false Sum of operating profit and nonoperating income (expense) before income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Subparagraph (1)(i) -Article 4 true 62 8 us-gaap_IncomeTaxExpenseBenefitAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 63 9 us-gaap_IncomeTaxExpenseBenefit us-gaap true debit duration monetary The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing... false false false false false false false false false 1 false true -38328000 -38328000.00 false false 2 false true 29524000 29524000.00 false false 3 false true 6236000 6236000.00 false false The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph a, b true 64 5 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false true -1441280000 -1441280000.00 false false 2 false true 50221000 50221000.00 false false 3 false true 15621000 15621000.00 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 true 65 4 us-gaap_PreferredStockDividendsAndOtherAdjustmentsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 66 5 us-gaap_PreferredStockDividendsAndOtherAdjustments us-gaap true debit duration monetary The aggregate value of preferred stock dividends and other adjustments necessary to derive net income apportioned to common... false false false false false false false false false 1 false true 16232000 16232000.00 false false 2 false true 39888000 39888000.00 false false 3 false true 3967000 3967000.00 false false The aggregate value of preferred stock dividends and other adjustments necessary to derive net income apportioned to common stockholders. No authoritative reference available. true 67 4 us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic us-gaap true credit duration monetary Net income (loss) apportioned to common stockholders after extraordinary items false false false false false false false false false 1 false true -1457512000 -1457512000.00 false false 2 false true 10333000 10333000.00 false false 3 false true 11654000 11654000.00 false false Net income (loss) apportioned to common stockholders after extraordinary items Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 9 true 71 6 us-gaap_IncomeLossBeforeExtraordinaryItemsAndCumulativeEffectOfChangeInAccountingPrinciplePerDilutedShareAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 72 7 sd_BasicDilutedEarningsPerShareNetLossIncome sd false na duration monetary Basic and Diluted Earnings Per Share,Net (loss) income false false false false false false false false false 1 false true -9.26 -9.26 false false 2 false true 0.46 0.46 false false 3 false true 0.21 0.21 false false Basic and Diluted Earnings Per Share,Net (loss) income No authoritative reference available. false 73 7 sd_BasicDilutedEarningsPerSharePreferredStockDividends sd false na duration monetary Basic and Diluted Earnings Per Share, Preferred stock dividends false false false false false false false false false 1 false true -0.1 -0.1 false false 2 false true -0.37 -0.37 false false 3 false true -0.05 -0.05 false false Basic and Diluted Earnings Per Share, Preferred stock dividends No authoritative reference available. false 74 7 sd_BasicDilutedLossIncomePerShareApplicableAvailableToCommonStockholders sd false na duration monetary Basic and diluted (loss) income per share (applicable) available to common stockholders false false false false false false false false false 1 true true -9.36 -9.36 false false 2 true true 0.09 0.09 false false 3 true true 0.16 0.16 false false Basic and diluted (loss) income per share (applicable) available to common stockholders No authoritative reference available. false 75 4 us-gaap_EarningsPerShareBasicOtherDisclosuresAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 76 5 us-gaap_WeightedAverageNumberOfSharesOutstandingBasic us-gaap true na duration shares Number of basic shares determined by relating the portion of time within a reporting period that common shares have been... false false false false false false false false false 1 false true 155619000 155619 false false 2 false true 108828000 108828 false false 3 false true 73727000 73727 false false Number of basic shares determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 false 77 4 us-gaap_EarningsPerShareDilutedOtherDisclosuresAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 78 5 us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding us-gaap true na duration shares The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing... false false false false false false false false false 1 false true 155619000 155619 false false 2 false true 110041000 110041 false false 3 false true 74664000 74664 false false The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 false false 3 51 false NoRounding Thousands UnKnown false true XML 16 R2.xml IDEA: Consolidated Balance Sheets 1.0.0.3 false Consolidated Balance Sheets (USD $) In Thousands false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 8 6 us-gaap_CashAndCashEquivalentsAtCarryingValueAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 9 7 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of... false false false false false false false false false 1 true true 636000 636 false false 2 true true 63135000 63135 false false Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Subparagraph fn1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 true 10 5 sd_ReceivableAccountsTopGroup sd false na instant string Receivable Accounts Top Group false false false false false false false false false 1 false false 0 0 &#x00A0; &#x00A0; false false 2 false false 0 0 &#x00A0; &#x00A0; false false Receivable Accounts Top Group No authoritative reference available. false 11 5 us-gaap_ReceivablesNetCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 12 6 sd_Trade sd false debit instant monetary Amount due from customers (other than related parties) within one year of the balance sheet date for good or services that... false false false false false false false false false 1 false true 102746000 102746 false false 2 false true 94741000 94741 false false Amount due from customers (other than related parties) within one year of the balance sheet date for good or services that have been delivered or sold in the normal course of business, less an allowance established for amounts deemed uncertain of collection. No authoritative reference available. false 13 6 us-gaap_DueFromRelatedPartiesCurrent us-gaap true debit instant monetary The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant... false false false false false false false false false 1 false true 6327000 6327 false false 2 false true 20018000 20018 false false The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due within one year (or one business cycle). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 2 -Subparagraph d Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3 -Subparagraph a -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Subparagraph (2) -Article 4 false 14 5 us-gaap_DerivativeInstrumentsAndHedgesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 15 6 sd_DerivativeContracts sd false debit instant monetary Fair value as of the balance sheet date of assets resulting from derivative contracts expected to be settled within one... false false false false false false false false false 1 false true 201111000 201111 false false 2 false true 21958000 21958 false false Fair value as of the balance sheet date of assets resulting from derivative contracts expected to be settled within one year. No authoritative reference available. false 16 5 us-gaap_InventoryNetAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 17 6 us-gaap_InventoryNet us-gaap true debit instant monetary Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other... false false false false false false false false false 1 false true 3686000 3686 false false 2 false true 3993000 3993 false false Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). No authoritative reference available. true 18 5 us-gaap_DeferredTaxAssetsNetCurrent us-gaap true debit instant monetary The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from... false false false false false false false false false 1 false true 0 0 false false 2 false true 1820000 1820 false false The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 41, 42, 43 false 19 5 us-gaap_OtherAssetsCurrent us-gaap true debit instant monetary Aggregate carrying amount, as of the balance sheet date, of current assets not separately disclosed in the balance sheet due... false false false false false false false false false 1 false true 41407000 41407 false false 2 false true 20787000 20787 false false Aggregate carrying amount, as of the balance sheet date, of current assets not separately disclosed in the balance sheet due to materiality considerations. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 8 -Article 5 false 20 5 us-gaap_AssetsCurrent us-gaap true debit instant monetary Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or... false false false false false false false false false 1 false true 355913000 355913 false false 2 false true 226452000 226452 false false Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 9 -Article 5 true 23 6 us-gaap_PropertyPlantAndEquipmentGrossAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 24 7 sd_NaturalGasCrudeOilPropertiesUsingFullCostMethodAccounting sd false na instant string Natural gas and crude oil properties, using full cost method of accounting false false false false false false false false false 1 false false 0 0 &#x00A0; &#x00A0; false false 2 false false 0 0 &#x00A0; &#x00A0; false false Natural gas and crude oil properties, using full cost method of accounting No authoritative reference available. false 25 7 sd_Proved sd false debit instant monetary Capitalized costs of oil and gas properties with associated proved reserves accounted for under the full cost method. false false false false false false false false false 1 false true 4676072000 4676072 false false 2 false true 2848531000 2848531 false false Capitalized costs of oil and gas properties with associated proved reserves accounted for under the full cost method. No authoritative reference available. false 26 7 sd_Unproved sd false debit instant monetary The sum of the capitalized costs of unproved properties excluded from amortization. false false false false false false false false false 1 false true 215698000 215698 false false 2 false true 259610000 259610 false false The sum of the capitalized costs of unproved properties excluded from amortization. No authoritative reference available. false 27 6 sd_LessAccumulatedDepreciationDepletion sd false credit instant monetary Accumulated depreciation and depletion of oil and gas property carried under the full cost method. false false false false false false false false false 1 false true -2369840000 -2369840 false false 2 false true -230974000 -230974 false false Accumulated depreciation and depletion of oil and gas property carried under the full cost method. No authoritative reference available. false 28 6 sd_NaturalGasCrudeOilPropertiesUsingFullCostMethodAccountingNet sd false debit instant monetary Natural gas and crude oil properties, using full cost method of accounting, net false false false false false false false false false 1 false true 2521930000 2521930 false false 2 false true 2877167000 2877167 false false Natural gas and crude oil properties, using full cost method of accounting, net No authoritative reference available. false 29 6 sd_OtherPropertyPlantEquipmentNet sd false debit instant monetary Capitalized assets classified as property, plant and equipment not otherwise defined in the taxonomy, net of associated... false false false false false false false false false 1 false true 653629000 653629 false false 2 false true 460243000 460243 false false Capitalized assets classified as property, plant and equipment not otherwise defined in the taxonomy, net of associated accumulated depreciation and amortization. No authoritative reference available. false 30 5 us-gaap_DerivativeInstrumentsAndHedgesNoncurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 31 6 sd_DerivativeContractsAssetsNoncurrent sd false debit instant monetary Fair value as of the balance sheet date of assets resulting from derivative contracts expected to exist longer than one... false false false false false false false false false 1 false true 45537000 45537 false false 2 false true 270000 270 false false Fair value as of the balance sheet date of assets resulting from derivative contracts expected to exist longer than one year. No authoritative reference available. false 33 6 us-gaap_LongTermInvestmentsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 34 7 us-gaap_OtherLongTermInvestments us-gaap true debit instant monetary Other noncurrent investments not otherwise specified in the taxonomy, not including investments in marketable securities. false false false false false false false false false 1 false true 6088000 6088 false false 2 false true 7956000 7956 false false Other noncurrent investments not otherwise specified in the taxonomy, not including investments in marketable securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 12 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 1(f) -Article 7 false 35 5 us-gaap_RestrictedCashAndCashEquivalentsNoncurrent us-gaap true debit instant monetary Cash and equivalents whose use in whole or in part is restricted for the long-term, generally by contractual agreements or... false false false false false false false false false 1 false true 32843000 32843 false false 2 false true 31660000 31660 false false Cash and equivalents whose use in whole or in part is restricted for the long-term, generally by contractual agreements or regulatory requirements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 false 36 5 us-gaap_OtherAssetsNoncurrent us-gaap true debit instant monetary Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet... false false false false false false false false false 1 false true 39118000 39118 false false 2 false true 26818000 26818 false false Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 false 37 4 us-gaap_Assets us-gaap true debit instant monetary Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future... false false false false false false false false false 1 false true 3655058000 3655058 false false 2 false true 3630566000 3630566 false false Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 true 41 6 us-gaap_LongTermDebtCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 42 7 us-gaap_LongTermDebtCurrent us-gaap true credit instant monetary Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes... false false false false false false false false false 1 false true 16532000 16532 false false 2 false true 15350000 15350 false false Total of the portions of the carrying amounts as of the balance sheet date of long-term debt, which may include notes payable, bonds payable, debentures, mortgage loans, and commercial paper, which are scheduled to be repaid within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Article 5 true 43 6 sd_AccountsPayableAccruedExpenses sd false na instant string Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received)... false false false false false false false false false 1 false false 0 0 &#x00A0; &#x00A0; false false 2 false false 0 0 &#x00A0; &#x00A0; false false Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. For classified balance sheets, used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer); for unclassified balance sheets, used to reflect the total liabilities (regardless of due date). No authoritative reference available. false 44 6 us-gaap_AccountsPayableAndAccruedLiabilitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 45 7 sd_TradeCurrentLiabilities sd false credit instant monetary Carrying value as of the balance sheet date of obligations incurred and payable to vendors (other than related parties)... false false false false false false false false false 1 false true 366337000 366337 false false 2 false true 215497000 215497 false false Carrying value as of the balance sheet date of obligations incurred and payable to vendors (other than related parties) within one year for goods and services received that are used in an entity's business. No authoritative reference available. false 46 7 us-gaap_AccountsPayableRelatedParties us-gaap true credit instant monetary Amount for accounts payable to related parties. For classified balance sheets, used to reflect the current portion of the... false false false false false false false false false 1 false true 230000 230 false false 2 false true 395000 395 false false Amount for accounts payable to related parties. For classified balance sheets, used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer); for unclassified balance sheets, used to reflect the total liabilities (regardless of due date). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 2 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Subparagraph (1) -Article 4 false 48 7 us-gaap_LongTermDebtAndCapitalLeaseObligationsCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 49 8 sd_DerivativeContractsCurrent sd false credit instant monetary Derivative contracts, current false false false false false false false false false 1 false true 5106000 5106 false false 2 false true 0 0 false false Derivative contracts, current No authoritative reference available. false 50 6 us-gaap_AssetRetirementObligationCurrent us-gaap true credit instant monetary Current portion of the carrying amount of a liability for an asset retirement obligation. An asset retirement obligation is a... false false false false false false false false false 1 false true 275000 275 false false 2 false true 864000 864 false false Current portion of the carrying amount of a liability for an asset retirement obligation. An asset retirement obligation is a legal obligation associated with the disposal or retirement of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 143 -Paragraph 3, 10, 22 false 51 6 us-gaap_BillingsInExcessOfCost us-gaap true credit instant monetary Liabilities due to billings on long term contracts that exceed the income recorded under the percentage of completion... false false false false false false false false false 1 false true 14144000 14144 false false 2 false true 0 0 false false Liabilities due to billings on long term contracts that exceed the income recorded under the percentage of completion contract accounting method, or that exceed the accumulated costs under the completed contract accounting method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 45 -Paragraph 5, 12 false 52 6 us-gaap_LiabilitiesCurrent us-gaap true credit instant monetary Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or... false false false false false false false false false 1 false true 402624000 402624 false false 2 false true 232106000 232106 false false Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 21 -Article 5 true 56 8 us-gaap_LongTermNotesAndLoansAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 57 9 us-gaap_LongTermDebtNoncurrent us-gaap true credit instant monetary Sum of the carrying values as of the balance sheet date of all long-term debt, which is debt initially having maturities due... false false false false false false false false false 1 false true 2358784000 2358784 false false 2 false true 1052299000 1052299 false false Sum of the carrying values as of the balance sheet date of all long-term debt, which is debt initially having maturities due after one year or beyond the operating cycle, if longer, but excluding the portions thereof scheduled to be repaid within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 true 58 9 us-gaap_OtherLiabilitiesNoncurrent us-gaap true credit instant monetary Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance... false false false false false false false false false 1 false true 11963000 11963 false false 2 false true 16817000 16817 false false Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 24 -Article 5 false 59 6 sd_DerivativeContractsNoncurrent sd false credit instant monetary Derivative contracts, noncurrent false false false false false false false false false 1 false true 3639000 3639 false false 2 false true 0 0 false false Derivative contracts, noncurrent No authoritative reference available. false 60 6 us-gaap_AssetRetirementObligationsNoncurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 61 7 us-gaap_AssetRetirementObligationsNoncurrent us-gaap true credit instant monetary Noncurrent portion of the carrying amount of a liability for an asset retirement obligation. An asset retirement obligation... false false false false false false false false false 1 false true 84497000 84497 false false 2 false true 57716000 57716 false false Noncurrent portion of the carrying amount of a liability for an asset retirement obligation. An asset retirement obligation is a legal obligation associated with the disposal or retirement of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 143 -Paragraph 3, 10, 22 true 62 6 us-gaap_DeferredTaxLiabilitiesNoncurrent us-gaap true credit instant monetary Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net... false false false false false false false false false 1 false true 0 0 false false 2 false true 49350000 49350 false false Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 41, 42, 43 false 63 5 us-gaap_Liabilities us-gaap true credit instant monetary Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable... false false false false false false false false false 1 false true 2861507000 2861507 false false 2 false true 1408288000 1408288 false false Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No authoritative reference available. true 65 4 us-gaap_MinorityInterestAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 66 5 us-gaap_MinorityInterest us-gaap true credit instant monetary Carrying amount of the equity interests owned by noncontrolling shareholders, partners, or other equity holders in one or... false false false false false false false false false 1 false true 30000 30 false false 2 false true 4672000 4672 false false Carrying amount of the equity interests owned by noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 27 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 20 -Article 7 true 67 4 us-gaap_TemporaryEquityAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 68 5 us-gaap_RedeemableConvertiblePreferredStockCarryingAmount us-gaap true credit instant monetary Carrying amount of redeemable convertible preferred stock. false false false false false false false false false 1 false true 0 0 false false 2 false true 450715000 450715 false false Carrying amount of redeemable convertible preferred stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Subparagraph b -Article 5 false 69 4 us-gaap_StockholdersEquityAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 70 5 us-gaap_PreferredStockValue us-gaap true credit instant monetary Value of each class of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the... false false false false false false false false false 1 false true 0 0 false false 2 false true 0 0 false false Value of each class of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) that may be calculated differently depending on whether the stock is issued at par value, no par or stated value. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 1, 2, 3, 4, 5, 6, 7, 8 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29 -Article 5 false 71 5 us-gaap_CommonStockNumberOfSharesParValueAndOtherDisclosuresAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 72 6 us-gaap_CommonStockValue us-gaap true credit instant monetary Value of issued common stock that may be calculated differently depending on whether the stock is issued at par value, no par... false false false false false false false false false 1 false true 163000 163 false false 2 false true 140000 140 false false Value of issued common stock that may be calculated differently depending on whether the stock is issued at par value, no par or stated value. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Article 5 false 73 5 us-gaap_AdditionalPaidInCapitalAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 74 6 us-gaap_AdditionalPaidInCapital us-gaap true credit instant monetary Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions... false false false false false false false false false 1 false true 2170986000 2170986 false false 2 false true 1686113000 1686113 false false Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 98-5 -Paragraph 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 62, 63 true 75 5 us-gaap_TreasuryStockValue us-gaap true debit instant monetary Value of common and preferred stock of an entity that have been repurchased by an entity. Treasury stock is issued but not... false false false false false false false false false 1 false true -19332000 -19332 false false 2 false true -18578000 -18578 false false Value of common and preferred stock of an entity that have been repurchased by an entity. Treasury stock is issued but not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Technical Bulletin (FTB) -Number 85-6 -Paragraph 3 false 76 5 us-gaap_RetainedEarningsAccumulatedDeficitAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 77 6 us-gaap_RetainedEarningsAccumulatedDeficit us-gaap true credit instant monetary The cumulative amount of the reporting entity's undistributed earnings or deficit. false false false false false false false false false 1 false true -1358296000 -1358296 false false 2 false true 99216000 99216 false false The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 true 78 5 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false false false false false false false 1 false true 793521000 793521 false false 2 false true 1766891000 1766891 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 true 79 4 us-gaap_LiabilitiesAndStockholdersEquity us-gaap true credit instant monetary Total of all Liabilities and Stockholders' Equity items. false false false false false false false false false 1 true true 3655058000 3655058 false false 2 true true 3630566000 3630566 false false Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 32 -Article 5 true false 2 61 false Thousands UnKnown UnKnown false true XML 17 FilingSummary.xml IDEA: XBRL DOCUMENT 1.0.0.3 true Sheet 01 - Statement - Consolidated Statements of Operations (Income) Consolidated Statements of Operations (Income) R1.xml false Sheet 02 - Statement - Consolidated Balance Sheets Consolidated Balance Sheets R2.xml false Sheet 021 - Statement - Consolidated Balance Sheets (Parenthetical) Consolidated Balance Sheets (Parenthetical) R3.xml false Sheet 03 - Statement - Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows R4.xml false Sheet 031 - Statement - Consolidated Statements of Cash Flows (Parenthetical) Consolidated Statements of Cash Flows (Parenthetical) R5.xml false Sheet 148600 - Statement - Statement of Shareholders' Equity and Other Comprehensive Income Statement of Shareholders' Equity and Other Comprehensive Income R6.xml false Sheet 148700 - Statement - Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) R7.xml false Sheet 149998 - Document - Document and Entity Information Document and Entity Information R8.xml false Notes 149999 - Disclosure - Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements R9.xml false Book All Reports All Reports 1 37 5 0 2 185 false false BalanceAsOf_31Dec2005_Treasury_Stock__Member 1 TwelveMonthsEnded_31Dec2006_Additional_Paid_in_Capital 6 BalanceAsOf_31Dec2007_Treasury_Stock__Member 1 BalanceAsOf_31Dec2006_Treasury_Stock__Member 1 BalanceAsOf_31Dec2007_Additional_Paid_in_Capital__Member 1 TwelveMonthsEnded_31Dec2007_Additional_Paid_in_Capital__Member 5 TwelveMonthsEnded_31Dec2008_Common_Stock__Member 1 BalanceAsOf_31Dec2006_Retained_Earnings__Member 1 BalanceAsOf_31Dec2008_Common_Stock__Member 1 BalanceAsOf_31Dec2006 2 TwelveMonthsEnded_31Dec2006 76 TwelveMonthsEnded_31Dec2008_Treasury_Stock__Member 2 BalanceAsOf_31Dec2008_Treasury_Stock__Member 1 BalanceAsOf_31Dec2008_Additional_Paid_in_Capital__Member 1 TwelveMonthsEnded_31Dec2007_Common_Stock__Member 3 TwelveMonthsEnded_31Dec2008 110 TwelveMonthsEnded_31Dec2006_Common_Stock__Member 2 BalanceAsOf_31Dec2005_Retained_Earnings__Member 1 BalanceAsOf_31Dec2008 58 TwelveMonthsEnded_31Dec2007_Treasury_Stock__Member 2 BalanceAsOf_31Dec2005_Common_Stock__Member 1 TwelveMonthsEnded_31Dec2007_Retained_Earnings__Member 3 TwelveMonthsEnded_31Dec2006_Accumulated_Defined_Benefit_Plans_Adjustment__Member 1 BalanceAsOf_31Dec2006_Common_Stock__Member 1 BalanceAsOf_31Dec2006_Additional_Paid_in_Capital__Member 1 TwelveMonthsEnded_31Dec2006_Retained_Earnings__Member 2 BalanceAsOf_31Dec2007 56 BalanceAsOf_31Dec2007_Common_Stock__Member 1 TwelveMonthsEnded_31Dec2006_Treasury_Stock__Member 1 BalanceAsOf_31Dec2005_Accumulated_Defined_Benefit_Plans_Adjustment__Member 1 BalanceAsOf_31Dec2007_Retained_Earnings__Member 1 BalanceAsOf_31Dec2005_Additional_Paid_in_Capital__Member 1 TwelveMonthsEnded_31Dec2007 74 TwelveMonthsEnded_31Dec2008_Retained_Earnings__Member 3 TwelveMonthsEnded_31Dec2008_Additional_Paid_in_Capital__Member 4 BalanceAsOf_31Dec2008_Retained_Earnings__Member 1 BalanceAsOf_31Dec2005 2 true true EXCEL 18 Financial_Report.xls IDEA: XBRL DOCUMENT begin 644 Financial_Report.xls MT,\1X*&Q&N$`````````````````````/@`#`/[_"0`&```````````````# M`````0``````````$```4P$```$```#^____```````````"`````P```/__ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M_______________________]_____O____W____]____!0````8````'```` M"`````D````*````"P````P````-````#@````\````0````$0```!(````3 M````%````!4````6````%P```!@````9````&@```!L````<````'0```!X` M```?````(````"$````B````(P```"0````E````)@```"<````H````*0`` M`"H````K````+````"T````N````+P```#`````Q````,@```#,````T```` M-0```#8````W````.````#D````Z````.P```#P````]````/@```#\```!` M````00```$(```!#````1````$4```!&````1P```$@```!)````2@```$L` M``!,````30```$X```!/````4````%$```!2````4P```%0```!5````5@`` M`%<```!8````60```%H```!;````7````%T```!>````7P```&````!A```` M8@```&,```!D````90```&8```!G````:````&D```!J````:P```&P```!M M````;@```&\```!P````<0```'(```!S````=````'4```!V````=P```'@` M``!Y````>@```'L```!\````?0```'X```!_````@````%(`;P!O`'0`(`!% M`&X`=`!R`'D````````````````````````````````````````````````` M```````````6``4`__________\"```````````````````````````````` M`````````+!9KZ@JF````GP```*````"A M````H@```*,```"D````I0```*8```"G````J````*D```"J````JP```*P` M``"M````K@```*\```"P````L0```+(```"S````M````+4```"V````MP`` M`+@```"Y````N@```+L```"\````O0```+X```"_````P````,$```#"```` MPP```,0```#%````Q@```,<```#(````R0```,H```#+````S````,T```#. M````SP```-````#1````T@```-,```#4````U0```-8```#7````V````-D` M``#:````VP```-P```#=````W@```-\```#@````X0```.(```#C````Y``` M`.4```#F````YP```.@```#I````Z@```.L```#L````[0```.X```#O```` M\````/$```#R````\P```/0```#U````]@```/<```#X````^0```/H```#[ M````_````/T```#^````_P`````!```!`0```@$```,!```$`0``!0$```8! M```'`0``"`$```D!```*`0``"P$```P!```-`0``#@$```\!```0`0``$0$` M`!(!```3`0``%`$``!4!```6`0``%P$``!@!```9`0``&@$``!L!```<`0`` M'0$``!X!```?`0``(`$``"$!```B`0``(P$``"0!```E`0``)@$``"!$$`!@`>``$B M`"0`(@`C`"P`(P`C`#``7P`I`#L`6P!2`&4`9`!=`%P`*``@`"(`)``B`",` M+``C`",`,`!<`"``*0`>!$,`!P`?``$B`"0`(@`C`"P`(P`C`#``+@`P`#`` M7P`I`#L`7``H`"``(@`D`"(`(P`L`",`(P`P`"X`,``P`%P`(``I`!X$30`( M`"0``2(`)``B`",`+``C`",`,``N`#``,`!?`"D`.P!;`%(`90!D`%T`7``H M`"``(@`D`"(`(P`L`",`(P`P`"X`,``P`%P`(``I`!X$<0`J`#8``5\`*``B M`"0`(@`J`"``(P`L`",`(P`P`%\`*0`[`%\`*``B`"0`(@`J`"``7``H`"`` M(P`L`",`(P`P`%P`(``I`#L`7P`H`"(`)``B`"H`(``B`"T`(@!?`"D`.P!? M`"@`(`!``%\`(``I`!X$7P`I`"T``5\`*``J`"``(P`L`",`(P`P`%\`*0`[ M`%\`*``J`"``7``H`"``(P`L`",`(P`P`%P`(``I`#L`7P`H`"H`(``B`"T` M(@!?`"D`.P!?`"@`(`!``%\`(``I`!X$@0`L`#X``5\`*``B`"0`(@`J`"`` M(P`L`",`(P`P`"X`,``P`%\`*0`[`%\`*``B`"0`(@`J`"``7``H`"``(P`L M`",`(P`P`"X`,``P`%P`(``I`#L`7P`H`"(`)``B`"H`(``B`"T`(@`_`#\` M7P`I`#L`7P`H`"``0`!?`"``*0`>!&\`*P`U``%?`"@`*@`@`",`+``C`",` M,``N`#``,`!?`"D`.P!?`"@`*@`@`%P`*``@`",`+``C`",`,``N`#``,`!< M`"``*0`[`%\`*``J`"``(@`M`"(`/P`_`%\`*0`[`%\`*``@`$``7P`@`"D` M'@0C`*0`#P`!)``C`"P`(P`C`#``.P`H`"0`(P`L`",`(P`P`"D`'@0?`*4` M#0`!(P`L`",`(P`P`#L`*``C`"P`(P`C`#``*0`>!"L`I@`3``$C`"P`(P`C M`#``+@`C`",`.P`H`",`+``C`",`,``N`",`(P`I`!X$+P"G`!4``20`(P`L M`",`(P`P`"X`(P`C`#L`*``D`",`+``C`",`,``N`",`(P`I`.``%``````` M]?\@``````````````#`(.``%``!````]?\@``#T``````````!!(.``%``! M````]?\@``#T``````````!!(.``%``"````]?\@``#T``````````!!(.`` M%``"````]?\@``#T``````````!!(.``%```````]?\@``#T``````````!! M(.``%```````]?\@``#T``````````!!(.``%```````]?\@``#T```````` M``!!(.``%```````]?\@``#T``````````!!(.``%```````]?\@``#T```` M``````!!(.``%```````]?\@``#T``````````!!(.``%```````]?\@``#T M``````````!!(.``%```````]?\@``#T``````````!!(.``%```````]?\@ M``#T``````````!!(.``%```````]?\@``#T``````````!!(.``%``````` M`0`@``````````````#`(.``%``!`"L`]?\@``#X``````````!!(.``%``! M`"D`]?\@``#X``````````!!(.``%``!`"P`]?\@``#X``````````!!(.`` M%``!`"H`]?\@``#X``````````!!(.``%``!``D`]?\@``#X``````````!! M(.``%``%`````0`@```(``````````#`(.``%``%`````0`H```8```````` M``#`(.``%``%`````0`J```8``````````#`(.``%````````0`H```0```` M``````#`(.``%````*0``0`@```$``````````#`(.``%````*4``0`@```$ M``````````#`(.``%````*8``0`@```$``````````#`(.``%````*<``0`@ M```$``````````#`(.``%``&`*4``0`@```,``````````#`(.``%``&```` M`0`@```(``````````#`(.``%```````"0`@``````````````#`(.``%``` M````"0`H```0``````````#`(.``%```````"0`(```0``````````#`(.`` M%``&`*0``0`@```,``````````#`(),"!```@`#_DP($`!"``_^3`@0`$8`& M_Y,"!``2@`3_DP($`!.`!_^3`@0`%(`%_V`!`@```(4`1@`64`(````?`4,` M;P!N`',`;P!L`&D`9`!A`'0`90!D`"``4P!T`&$`=`!E`&T`90!N`'0```%/`&D`;``@`&$`;@!D`"``1P!A`',`(`!2`&4`=@!E`&X`=0!E`"`` M6P!!`&(``!E`',`(`!/`'0`:`!E`'(`(`!T`&@`80!N`"``20!N`&,`;P!M M`&4`+``@`$4`>`!C`&D``!E`',`(`!;`$$`8@!S M`'0`<@!A`&,`=`!=`!```5``<@!O`&0`=0!C`'0`:0!O`&X`(`!T`&$`>`!E M`',`+``!30!A`'(`:P!E`'0`:0!N`&<`(`!A`&X`9``@`$$`9`!V`&4`<@!T M`&D``!P`&4`;@!S`&4`(`!;`$$`8@!S`'0`<@!A`&,` M=`!=`!4``40`<@!I`&P`;`!I`&X`9P`@`&$`;@!D`"``@!A`'0`:0!O`&X`(`!;`$$`8@!S`'0`<@!A`&,`=`!= M`$(``40`90!P`'(`90!C`&D`80!T`&D`;P!N`"P`(`!D`&4`<`!L`&4`=`!I M`&\`;@`@`&$`;@!D`"``80!M`&\`<@!T`&D`>@!A`'0`:0!O`&X`+0!N`&$` M=`!U`'(`80!L`"``9P!A`',`(`!A`&X`9``*`&,`<@!U`&0`90`@`&\`:0!L M`"X``40`90!P`'(`90!C`&D`80!T`&D`;P!N`"P`(`!D`&4`<`!L`&4`=`!I M`&\`;@`@`&$`;@!D`"``80!M`&\`<@!T`&D`>@!A`'0`:0!O`&X`+0!O`'0` M:`!E`'(`(P`!00!S`',`90!T`"``20!M`'``80!I`'(`;0!E`&X`=``@`$,` M:`!A`'(`9P!E`',`(`!;`$$`8@!S`'0`<@!A`&,`=`!=``H``4D`;0!P`&$` M:0!R`&T`90!N`'0`+0`!1P!E`&X`90!R`&$`;``@`&$`;@!D`"``00!D`&T` M:0!N`&D`0`@`$D`;@!T`&4`<@!E`',` M=``@`&D`;@`@`$X`90!T`"``20!N`&,`;P!M`&4`(``H`$P`;P!S`',`*0`@ M`&\`9@`@`$,`;P!N`',`;P!L`&D`9`!A`'0`90!D`"``10!N`'0`:0!T`&D` M90!S`"``6P!!`&(``!P`&4`;@!S`&4`$0`!3@!E`'0`(``H`&P`;P!S`',`*0`@`&D` M;@!C`&\`;0!E`#H``5``<@!E`&8`90!R`'(`90!D`"``4P!T`&\`8P!K`"`` M1`!I`'8`:0!D`&4`;@!D`',`(`!A`&X`9``@`$\`=`!H`&4`<@`@`$$`9`!J M`'4`0`@`$D`=`!E M`&T``!E`',`%``!3P!T`&@` M90!R`"``8P!U`'(`<@!E`&X`=``*`&$`0`L`"``<`!L M`&$`;@!T`"``80!N`&0`(`!E`'$`=0!I`'``;0!E`&X`=``L`"``;@!E`'0` M.``!1`!E`'(`:0!V`&$`=`!I`'8`90`@`$D`;@!S`'0`<@!U`&T`90!N`'0` M0!A`&(`;`!E`"``80!N`&0`(`!A`&,` M8P!R`'4`90!D`"``90!X`'``90!N`',`90!S`#,``4$`8P!C`&\`=0!N`'0` M`!E`',`$0`! M5`!O`'0`80!L`"``;`!I`&$`8@!I`&P`:0!T`&D`90!S`!P``4T`:0!N`&\` M<@!I`'0`>0`@`$D`;@!T`&4`<@!E`',`=``@`%L`00!B`',`=`!R`&$`8P!T M`%T`&P`!5`!E`&T`<`!O`'(`80!R`'D`(`!%`'$`=0!I`'0`>0`@`%L`00!B M`',`=`!R`&$`8P!T`%T`Q0`!4@!E`&0`90!E`&T`80!B`&P`90`@`&,`;P!N M`'8`90!R`'0`:0!B`&P`90`@`'``<@!E`&8`90!R`'(`90!D`"``@!E`&0` M.P`@`&X`;P`@`',`:`!A`'(`90!S`"``:0!S`',`=0!E`&0`(`!A`&X`9``@ M`&\`=0!T`',`=`!A`&X`9`!I`&X`9P`@`&$`=``@`$0`90!C`&4`;0!B`&4` M<@`@`#,`,0`L``H`,@`P`#``.``@`&$`;@!D`"``,@`L`#$`.``T`"``0`@`%L`00!B`',`=`!R`&$`8P!T`%T`;@`!4`!R`&4`9@!E`'(`<@!E M`&0`(`!S`'0`;P!C`&L`+``*`"0`,``N`#``,``Q`"``<`!A`'(`(`!V`&$` M;`!U`&4`.P`@`#0`-P`L`#,`-P`U`"``0`J``%4`&\`=`!A`&P`(`!L`&D`80!B M`&D`;`!I`'0`:0!E`',`(`!A`&X`9``@`',`=`!O`&,`:P!H`&\`;`!D`&4` M<@!S`"<`(`!E`'$`=0!I`'0`>0`S``%#`&\`;@!S`&\`;`!I`&0`80!T`&4` M9``@`$(`80!L`&$`;@!C`&4`(`!3`&@`90!E`'0`@!E`&0`-0`!4@!E`&0`90!E`&T`80!B M`&P`90`@`&,`;P!N`'8`90!R`'0`:0!B`&P`90`@`'``<@!E`&8`90!R`'(` M90!D`"``@!E`&0`'@`!4`!R`&4`9@!E`'(`<@!E`&0`"@!S M`'0`;P!C`&L`+``@`',`:`!A`'(`90!S`"``:0!S`',`=0!E`&0`(P`!4`!R M`&4`9@!E`'(`<@!E`&0`(`!S`'0`;P!C`&L`+``@`',`:`!A`'(`90!S`"`` M;P!U`'0```@`$,`<@!E`&0`:0!T`',`(`!; M`$$`8@!S`'0`<@!A`&,`=`!=`"0``5``<@!O`'8`:0!S`&D`;P!N`"``9@!O M`'(`"@!I`&X`=@!E`&X`=`!O`'(`>0`@`&\`8@!S`&\`;`!E`',`8P!E`&X` M8P!E`$@``54`;@!R`&4`80!L`&D`>@!E`&0`(`!'`&$`:0!N`"``*`!,`&\` M@!E`&0`(``H`&<` M80!I`&X`*0`@`&P`;P!S`',`(`!O`&X`(`!D`&4`<@!I`'8`80!T`&D`=@!E M`"``8P!O`&X`=`!R`&$`8P!T`',`.@`!1P!A`&D`;@`@`"@`3`!O`',`0`@`%`` M;`!A`&X`=``@`$4`<0!U`&D`<`!M`&4`;@!T`"``6P!!`&(`0`@`$T` M90!T`&@`;P!D`"``20!N`'8`90!S`'0`;0!E`&X`=`!S`"P`(`!.`&4`=``@ M`&\`9@`@`$0`:0!V`&D`9`!E`&X`9`!S`"``;P!R`"``1`!I`',`=`!R`&D` M8@!U`'0`:0!O`&X`0!S`'0`90!M`',`(`!;`$$`8@!S`'0`<@!A`&,`=`!=`",``4,` M;P!N`'0`<@!I`&(`=0!T`&D`;P!N`',`(`!O`&X`(`!E`'$`=0!I`'0`>0`@ M`&D`;@!V`&4`0`@`&D`;@!V`&4`0!M`&4`;@!T M`',`(`!F`&\`<@`@`"@`4`!R`&\`8P!E`&4`9`!S`"``9@!R`&\`;0`I`"`` M20!N`'8`90!S`'0`;0!E`&X`=`!S`"``6P!!`&(` M``%2`&4`9@!U`&X`9`!S`"``;P!F``H`<@!E`',`=`!R`&D`8P!T`&4`9``@ M`&0`90!P`&\`0`*`&D`;@!T M`&4`<@!E`',`=``@`&0`:0!S`'0`<@!I`&(`=0!T`&D`;P!N`',`,P`!4`!R M`&\`8P!E`&4`9`!S`"``9@!R`&\`;0`@`$D`0`@`%L`00!B`',`=`!R M`&$`8P!T`%T`)@`!4`!R`&\`8P!E`&4`9`!S`"``9@!R`&\`;0`@`&D`0!M`&4`;@!T`',`(`!F`&\`<@`@`%(`90!P`'4`<@!C`&@`80!S`&4`(`!O M`&8`(`!%`'$`=0!I`'0`>0`@`%L`00!B`',`=`!R`&$`8P!T`%T`&@`!4`!U M`'(`8P!H`&$`0`@`&8`:0!N`&$`;@!C M`&D`;@!G`"``80!C`'0`:0!V`&D`=`!I`&4`0!E`&$` M<@`F``%#`$$`4P!(`"``00!.`$0`(`!#`$$`4P!(`"``10!1`%4`20!6`$$` M3`!%`$X`5`!3`"P`(`!E`&X`9``@`&\`9@`@`'D`90!A`'(`(0`!20!N`&,` M;P!M`&4`(`!4`&$`>`!E`',`(`!0`&$`:0!D`"P`(`!.`&4`=``@`%L`00!B M`',`=`!R`&$`8P!T`%T`,@`!0P!A`',`:``@`'``80!I`&0`(`!F`&\`<@`@ M`&D`;@!T`&4`<@!E`',`=``L``H`;@!E`'0`(`!O`&8`(`!A`&T`;P!U`&X` M=`!S`"``8P!A`'``:0!T`&$`;`!I`'H`90!D`!H``4,`80!S`&@`(`!P`&$` M:0!D`"``9@!O`'(`"@!I`&X`8P!O`&T`90`@`'0`80!X`&4``!P`&4`;@!D`&D` M=`!U`'(`90!S`$<``5(`90!D`&4`90!M`&$`8@!L`&4`(`!C`&\`;@!V`&4` M<@!T`&D`8@!L`&4`(`!P`'(`90!F`&4`<@!R`&4`9``@`',`=`!O`&,`:P`@ M`&0`:0!V`&D`9`!E`&X`9`!S`"P`(`!N`&4`=``@`&\`9@`*`&0`:0!V`&D` M9`!E`&X`9`!S`"``<`!A`&D`9``;``%#`&\`;@!V`&4`<@!S`&D`;P!N`"`` M;P!F`"``4P!T`&\`8P!K`"``6P!4`&$`8@!L`&4`70`;``%)`&X`0`@`%,`=`!O`&,`:P`-``H` M*0`!4@!E`'0`80!I`&X`90!D`"``10!A`'(`;@!I`&X`9P!S`"``*`!!`&,` M8P!U`&T`=0!L`&$`=`!E`&0`(`!$`&4`9@!I`&,`:0!T`"D`#0`*`!<``40` M90!F`&4`<@!R`&4`9``@`$,`;P!M`'``90!N`',`80!T`&D`;P!N``T`"@`' M``%4`&\`=`!A`&P`#0`*`"(``4(`90!G`&D`;@!N`&D`;@!G`"``0@!A`&P` M80!N`&,`90`@`&$`=``@`$0`90!C`"X`(``S`#$`+``@`#(`,``P`#4`.@`! M20!N`&,`<@!E`&$`0`@`%L` M4@!O`&P`;``@`$8`;P!R`'<`80!R`&0`70`.``%3`'0`;P!C`&L`(`!O`&8` M9@!E`'(`:0!N`&<`.P`!0P!H`&$`;@!G`&4`(`!I`&X`(`!A`&,`8P!O`'4` M;@!T`&D`;@!G`"``<`!R`&D`;@!C`&D`<`!L`&4`(`!F`&\`<@`@`',`=`!O M`&,`:P`M`&(`80!S`&4`9``@`&,`;P!M`'``90!N`',`80!T`&D`;P!N`"$` M`4D`0`@`"@`4`!A`'(`90!N`'0`:`!E`'0`:0!C`&$` M;``I`"``*`!5`%,`1``@`"0`*0`+``%)`&X`(`!-`&D`;`!L`&D`;P!N`',` M%P`!,0`O`#$`+P`R`#``,``W`"``+0`@`#$`,@`O`#,`,0`O`#(`,``P`#<` M#0`*`!<``3$`+P`Q`"\`,@`P`#``-@`@`"T`(``Q`#(`+P`S`#$`+P`R`#`` M,``V``T`"@!)``%#`&\`;@!S`&\`;`!I`&0`80!T`&4`9``@`%,`=`!A`'0` M90!M`&4`;@!T`',`(`!O`&8`(`!#`&@`80!N`&<`90!S`"``:0!N`"``4P!T M`&\`8P!K`&@`;P!L`&0`90!R`',`(`!%`'$`=0!I`'0`>0`*`"@`4`!A`'(` M90!N`'0`:`!E`'0`:0!C`&$`;``I`!<``4\`9@!F`&4`<@!I`&X`9P`@`&,` M;P!S`'0```%)`&X`(`!"`&D`;`!L`&D`;P!N`',`+``@ M`&4`>`!C`&4`<`!T`"``4P!H`&$`<@!E`"``9`!A`'0`80`?``%$`&\`8P!U M`&T`90!N`'0`(`!A`&X`9``*`$4`;@!T`&D`=`!Y`"``20!N`&8`;P!R`&T` M80!T`&D`;P!N`!8``44`;@!T`&D`=`!Y`"``4@!E`&<`:0!S`'0`<@!A`&X` M=``@`$X`80!M`&4`%@`!4P!!`$X`1`!2`$D`1`!'`$4`(`!%`$X`10!2`$<` M60`L`"``20!.`$,`+@`8``%%`&X`=`!I`'0`>0`@`$,`90!N`'0`<@!A`&P` M(`!)`&X`9`!E`'@`(`!+`&4`>0`*``$P`#``,``Q`#,`-``Y`#0`,P`V``T` M`40`;P!C`'4`;0!E`&X`=``@`%0`>0!P`&4`!``!,0`P`"T`2P`8``%$`&\` M8P!U`&T`90!N`'0`(`!0`&4`<@!I`&\`9``@`$4`;@!D`"``1`!A`'0`90`* M``$R`#``,``X`"T`,0`R`"T`,P`Q``X``4$`;0!E`&X`9`!M`&4`;@!T`"`` M1@!L`&$`9P`%``%F`&$`;`!S`&4`'``!0P!U`'(`<@!E`&X`=``@`$8`:0!S M`&,`80!L`"``60!E`&$`<@`@`$4`;@!D`"``1`!A`'0`90`'``$M`"T`,0`R M`"T`,P`Q`"$``44`;@!T`&D`=`!Y`"``5P!E`&P`;``M`&L`;@!O`'<`;@`@ M`%,`90!A`',`;P!N`&4`9``@`$D`0`@`%8`;P!L`'4`;@!T`&$`<@!Y`"``1@!I`&P`90!R`',`'P`! M10!N`'0`:0!T`'D`(`!#`'4`<@!R`&4`;@!T`"``4@!E`'``;P!R`'0`:0!N M`&<`(`!3`'0`80!T`'4`0`@`$8`:0!L`&4`<@`@ M`$,`80!T`&4`9P!O`'(`>0`7``%,`&$`<@!G`&4`(`!!`&,`8P!E`&P`90!R M`&$`=`!E`&0`(`!&`&D`;`!E`'(`$P`!10!N`'0`:0!T`'D`(`!0`'4`8@!L M`&D`8P`@`$8`;`!O`&$`=`!!``%%`&X`=`!I`'0`>0`*`$,`;P!M`&T`;P!N M`"``4P!T`&\`8P!K`"P`(`!3`&@`80!R`&4`0`@`&\`9@`@`%,`:0!G`&X`:0!F`&D`8P!A`&X` M=``@`$$`8P!C`&\`=0!N`'0`:0!N`&<`(`!0`&\`;`!I`&,`:0!E`',`@`P! M(``@``T`#0`)`"``,0`N`"``(``)`"``4P!U`&T`;0!A`'(`>0`@`&\`9@`@ M`%,`:0!G`&X`:0!F`&D`8P!A`&X`=``@`$$`8P!C`&\`=0!N`'0`:0!N`&<` M(`!0`&\`;`!I`&,`:0!E`',`(``@`"``(``-``T`#0`@`$X`80!T`'4`<@!E M`"``;P!F`"``0@!U`',`:0!N`&4`0`L`"``20!N`&,`+@`@`"@`0`L`"``20!N`&,` M+@`I`"``80!N`&0`(`!I`'0`0`L`"``=`!H`&4`(`!#`&\` M;0!P`&$`;@!Y`"``;P!R`"``4P!A`&X`9`!2`&D`9`!G`&4`*0`@`&D``!P`&P`;P!R`&$` M=`!I`&\`;@`L`"``9`!E`'8`90!L`&\`<`!M`&4`;@!T`"``80!N`&0`(`!P M`'(`;P!D`'4`8P!T`&D`;P!N`"``80!C`'0`:0!V`&D`=`!I`&4`0`@`%0`<@!E`&X`9``@`&D`;@`@`$4`80!S M`'0`(`!4`&4`>`!A`',`+``@`'0`:`!E`"``1P!U`&P`9@`@`$,`;P!A`',` M=``@`&$`;@!D`"``=`!H`&4`(`!'`'4`;`!F`"``;P!F`"``30!E`'@`:0!C M`&\`+@`@`"``#0`-``T`(`!0`'(`:0!N`&,`:0!P`&P`90!S`"``;P!F`"`` M0P!O`&X`0`@`&8`80!C`'0`;P!R`',`(`!B`&4`>0!O`&X`9``@`'0`:`!E`"``0P!O M`&T`<`!A`&X`>0!S`"``8P!O`&X`=`!R`&\`;``N`"``4@!E`',`90!R`'8` M;P!I`#P`&R`!<@`@`&4`;@!G`&D`;@!E`&4`<@!I`&X`9P`@`&D``!A`&,`=``@`&T`80!N`&X`90!R`"X`(`!4`&@` M90`@`&$`8P!C`'4`<@!A`&,`>0`@`&\`9@`@`&$`;@!Y`"``<@!E`',`90!R M`'8`90`@`&4``!P M`&P`;P!R`&$`=`!I`&\`;@`@`&$`;@!D`"``9`!E`'8`90!L`&\`<`!M`&4` M;@!T`"``80!C`'0`:0!V`&D`=`!I`&4``!P M`&4`;@!S`&4`0!S`"``<@!E`'8`90!N`'4`90`L`"``<`!R`&\`9@!I`'0`80!B`&D`;`!I M`'0`>0`@`&$`;@!D`"``9@!U`'0`=0!R`&4`(`!G`'(`;P!W`'0`:``@`&$` M<@!E`"``0`@`&0`90!P`&4`;@!D M`&4`;@!T`"``=0!P`&\`;@`@`'0`:`!E`"``<`!R`&4`=@!A`&D`;`!I`&X` M9P`@`&$`;@!D`"``9@!U`'0`=0!R`&4`(`!P`'(`:0!C`&4`0`@`&T`80!R`&L`90!T`',`(`!H`&D`0`@ M`&@`80!V`&4`(`!B`&4`90!N`"``=@!O`&P`80!T`&D`;`!E`"``80!N`&0` M(`!N`&$`=`!U`'(`80!L`"``9P!A`',`(`!A`&X`9``@`&,`<@!U`&0`90`@ M`&\`:0!L`"``<`!R`&D`8P!E`',`(`!M`&$`>0`@`&(`90`@`',`=0!B`&H` M90!C`'0`(`!T`&\`(`!S`&D`9P!N`&D`9@!I`&,`80!N`'0`(`!F`&P`=0!C M`'0`=0!A`'0`:0!O`&X``!I`&T`80!T`&4`;`!Y`"``)``Q`"X`,`!M`&D`;`!L`&D` M;P!N`"``80!N`&0`(`!A`"``)``T`"X`-0!M`&D`;`!L`&D`;P!N`"``8P!A M`',`:``@`'``80!Y`&T`90!N`'0`(`!F`&\`<@`@`'0`:`!E`"``;P!W`&X` M90!R`',`:`!I`'``(`!I`&X`=`!E`'(`90!S`'0`(`!A`&,`<0!U`&D`<@!E M`&0`(`!F`&\`<@`@`&$`(`!T`&\`=`!A`&P`(`!A`&,`<0!U`&D``!I`&T`80!T M`&4`;`!Y`"``)``U`"X`-0!M`&D`;`!L`&D`;P!N`"X`(``@`"``#0`-``T` M"0`@`"``(``)`"``20!N`"``30!A`'D`(``R`#``,``V`"P`(`!T`&@`90`@ M`$,`;P!M`'``80!N`'D`(`!P`'4`<@!C`&@`80!S`&4`9``@`&,`90!R`'0` M80!I`&X`(`!L`&4`80!S`&4``!I`&T`80!T M`&4`;`!Y`"``)``T`#``+@`Y`&T`:0!L`&P`:0!O`&X`(`!I`&X`(`!C`&$` M0`@`#(` M,``P`#8`+@`@`"``(``-``T`#0`)`"``(``@``D`(`!)`&X`(`!-`&$`>0`@ M`#(`,``P`#8`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0`@`'``=0!R`&,` M:`!A`',`90!D`"```!I`&T`80!T M`&4`;`!Y`"``)``Q`#(`+@`Y`&T`:0!L`&P`:0!O`&X`+``@`&,`;P!M`'`` M<@!I`',`90!D`"``;P!F`"``)``X`"X`,@!M`&D`;`!L`&D`;P!N`"``:0!N M`"``8P!A`',`:``L`"``80!N`&0`(``R`#4`,0`L`#,`-0`Q`',`:`!A`'(` M90!S`"``;P!F`"``0P!O`&T`<`!A`&X`>0`@`&,`;P!M`&T`;P!N`"``0`@`&,`;P!N`',`:0!D`&4`<@!A`'0`:0!O`&X`(`!W`&4`<@!E`"`` M<`!A`&D`9``@`&D`;@`@`$H`=0!L`'D`(``R`#``,``V`"X`(``@`"``(``- M``T`#0`)`"``"0`-``T`"0`@`"``(``)`"``20!N`"``2@!U`&X`90`@`#(` M,``P`#8`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0`@`'``=0!R`&,`:`!A M`',`90!D`"``8P!E`'(`=`!A`&D`;@`@`'``<@!O`&0`=0!C`&D`;@!G`"`` M=P!E`&P`;``@`&D`;@!T`&4`<@!E`',`=`!S`"``9@!R`&\`;0`@`&$`;@`@ M`&4`>`!E`&,`=0!T`&D`=@!E`"``;P!F`&8`:0!C`&4`<@`@`&$`;@!D`"`` M9`!I`'(`90!C`'0`;P!R`"X`(`!4`&@`90`@`'``=0!R`&,`:`!A`',`90`@ M`'``<@!I`&,`90`@`'<`80!S`"``80!P`'``<@!O`'@`:0!M`&$`=`!E`&P` M>0`@`"0`.0`N`#``;0!I`&P`;`!I`&\`;@`@`&D`;@`@`&,`80!S`&@`+@`@ M`"``(``-``T`#0`)`"``(``@``D`(`!)`&X`(`!*`'4`;@!E`"``,@`P`#`` M-@`L`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y`"``80!C`'$`=0!I`'(`90!D M`"``=`!H`&4`(`!R`&4`;0!A`&D`;@!I`&X`9P`@`#$`)0`@`&D`;@!T`&4` M<@!E`',`=``@`&D`;@`@`%``90!T`'(`;P!3`&\`=0!R`&,`90`@`&8`<@!O M`&T`(`!A`&X`(`!O`&D`;``@`&$`;@!D`"``9P!A`',`(`!C`&\`;0!P`&$` M;@!Y`"X`(`!4`&@`90`@`'``=0!R`&,`:`!A`',`90`@`'``<@!I`&,`90`@ M`'<`80!S`"``,@`W`"P`-P`T`#D``!I`&T`80!T`&4`;`!Y M`"``)``V`#,`+@`W`&T`:0!L`&P`:0!O`&X`(`!I`&X`(`!C`&$`0`L M`"``4`!L`&$`;@!T``T`"0`@`"``(``)`"``30!I`&X`;P!R`&D`=`!Y``T` M"0`@`"``(``)`"``;P!F`"``4P!U`&(`;P!R`&0`:0!N`&$`=`!E`&0`#0`) M`"``(``@``D`(`!3`'0`;P!C`&L`(`!.`&\`+@`-``D`(``@`"``"0`@`$,` M;P!M`&T`;P!N``T`"0`@`"``(``)``D`#0`-``T`(`!!`&,`<0!U`&D``!E`&,`=0!T`&D`=@!E`"``;P!F`&8`:0!C`&4`<@`@`&$` M;@!D`"``9`!I`'(`90!C`'0`;P!R`"``(``@``D`"0`@`"``(``)`"``.0`L M`#``,``P`"``(``)``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D` M(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)`"``(``@ M``D`"0`@`"``(``)``D`(``Y`"P`,``P`#``(``@``D`#0`-``T`(`!0`&4` M=`!R`&\`4P!O`'4`<@!C`&4`(`!A`&0`9`!I`'0`:0!O`&X`80!L`"``:0!N M`'0`90!R`&4`0`@`&\`;@!E`"``>0!E`&$`<@`@`&8`;P!R`"``8P!E M`'(`=`!A`&D`;@`@`&X`;P!N`&8`:0!N`&$`;@!C`&D`80!L`"``80!S`',` M90!T`',`(`!A`&X`9``@`&P`:0!A`&(`:0!L`&D`=`!I`&4`0`L`"``9@!O`'(` M(`!S`'4`8@!S`'0`80!N`'0`:0!A`&P`;`!Y`"``=`!H`&4`(`!F`'4`;`!L M`"``=`!E`'(`;0`@`&\`9@`@`'0`:`!E`"``80!S`',`90!T`"``;P!R`"`` M;`!I`&$`8@!I`&P`:0!T`'D`+@`@`"``(``-``T`#0`@`$P`90!V`&4`;``S M`#H`(``@`"``"0`)`"``30!E`&$`0`@`%,`1@!!`%,` M3@!O`"X`,0`U`#<`+``@`&8`:0!N`&$`;@!C`&D`80!L`"``80!S`',`90!T M`',`(`!A`&X`9``@`&P`:0!A`&(`:0!L`&D`=`!I`&4`0`@`&$`;@!D`"``=@!O`&P`=0!M`&4`(`!T`&\`(`!P M`'(`;P!V`&D`9`!E`"``<`!R`&D`8P!I`&X`9P`@`&D`;@!F`&\`<@!M`&$` M=`!I`&\`;@`@`&\`;@`@`&$`;@`@`&\`;@!G`&\`:0!N`&<`(`!B`&$`0!S`"``;@!A`'0`=0!R`&$`;``@`&<`80!S`"``80!N`&0`(`!C`'(`=0!D M`&4`(`!O`&D`;``@`',`=P!A`'``0`@`&$`=@!A`&D`;`!A`&(`;`!E`"``;0!A M`'(`:P!E`'0`(`!P`'(`:0!C`&4`0`L`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y`"``80!P M`'``;`!I`&4``!P`&4` M;@!S`&4`0!S`"``8P!U`',`=`!O`&T`90!R`"P` M(`!3`&4`;0!'`'(`;P!U`'``+``@`$P`+@!0`"X`(`!A`&X`9``@`&,`90!R M`'0`80!I`&X`(`!O`&8`(`!I`'0`0`L`"``4P!E`&T`1P!R M`&\`=0!P`"D`+``@`&8`:0!L`&4`9``@`&8`;P!R`"``8@!A`&X`:P!R`'4` M<`!T`&,`>0`@`&\`;@`@`$H`=0!L`'D`,@`R`"P`(``R`#``,``X`"X`(`!$ M`'4`<@!I`&X`9P`@`'0`:`!E`"``=`!H`&D`<@!D`"``<0!U`&$`<@!T`&4` M<@`@`&\`9@`@`#(`,``P`#@`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0`@ M`&4``@$@`"``#0`-``T`"0`@`#4`+@`@`"``"0`@`$\`=`!H`&4`<@`@ M`$,`=0!R`'(`90!N`'0`(`!!`',`@!A`'0`:0!O`&X`(``@`"`` M"0`)`"``(``@``D`(``H`#$`.0`T`"P`,@`W`#(`(``@``D`(``I`"``(``) M``D`(``@`"``"0`@`"@`,0`Q`#D`+``P`#@`-P`@`"``"0`@`"D`(``@`"`` M#0`-``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`- M``T`#0`@`$X`90!T`"``8P!A`'``:0!T`&$`;`!I`'H`90!D`"``8P!O`',` M=`!S`"``(``@``D`"0`@`"``(``)`"``-@`U`#,`+``V`#(`.0`@`"``"0`) M`"``(``@``D`"0`@`#0`-@`P`"P`,@`T`#,`(``@``D`#0`-``D`(``@`"`` M"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`-``T`#0`@`%0`;P!T M`&$`;``@`'``<@!O`'``90!R`'0`>0`L`"``<`!L`&$`;@!T`"``80!N`&0` M(`!E`'$`=0!I`'``;0!E`&X`=``@`"``(``)``D`(``D`"``(``)`"``,P`L M`#$`-P`U`"P`-0`U`#D`(``@``D`"0`@`"``(``)`"``)``@`"``"0`@`#,` M+``S`#,`-P`L`#0`,0`P`"``(``)``T`#0`)`"``(``@``D`"0`@`"``(``) M``D`(``@`"``"0`)`"``(``@``D`#0`-``D`(``)``T`#0`)`"``*``Q`"D` M(``@``D`"0`@`$D`;@!C`&P`=0!D`&4``!I`&T`80!T`&4`;`!Y M`"``)``S`"X`.`!M`&D`;`!L`&D`;P!N`"``80!N`&0`(``D`#,`+@`T`&T` M:0!L`&P`:0!O`&X`+``@`'(`90!S`'``90!C`'0`:0!V`&4`;`!Y`"X`(``@ M``T`#0`-`"``20!N`"``2@!U`&P`>0`@`#(`,``P`#<`+``@`'0`:`!E`"`` M0P!O`&T`<`!A`&X`>0`@`'``=0!R`&,`:`!A`',`90!D`"``<`!R`&\`<`!E M`'(`=`!Y`"``=`!O`"``0`@`#(`,``P`#@`+``@`'0`:`!E`"``0P!O`&T`<`!A M`&X`>0`@`&,`;P!M`'``;`!E`'0`90!D`"``=`!H`&4`(`!S`&$`;`!E`"`` M;P!F`"``80!L`&P`(`!O`&8`(`!I`'0``!C`&P`=0!D`&4`9``@`&8`<@!O`&T`(`!A M`&T`;P!U`&X`=`!S`#P`'"`!(`!S`'4`8@!J`&4`8P!T`"``=`!O`"``80!M M`&\`<@!T`&D`>@!A`'0`:0!O`&X`+@`@`%0`:`!E`"``9@!O`&P`;`!O`'<` M:0!N`&<`(`!T`&$`8@!L`&4`(`!S`'4`;0!M`&$`<@!I`'H`90!S`"``=`!H M`&4`(`!C`&\`@!E`&0`(`!A`'0`(`!$`&4`8P!E`&T`8@!E`'(`,P`Q M`"P`(``R`#``,``X`"``80!N`&0`(`!T`&@`90`@`'D`90!A`'(`(`!I`&X` M(`!W`&@`:0!C`&@`(`!T`&@`90!Y`"``=P!E`'(`90`@`&D`;@!C`'4`<@!R M`&4`9``Z`"``(``-``T`#0`)`"``(``)``D`(``@``D`"0`@`"``"0`)`"`` M(``)``D`(``@``D`"0`@`"``"0`)`"``(``)``D`(``@``D`#0`-``D`(``@ M`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)`"``(``@``D` M"0`@`$4`>`!C`&P`=0!D`&4`9``-``T`"0`@`"``(``)``D`(``@`"``"0`) M`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)`"``0P!O`',`=`!S`"`` M80!T``T`#0`)`"``(``@``D`(`!9`&4`80!R`"``0P!O`',`=``@`$D`;@!C M`'4`<@!R`&4`9``@`"``"0`)`"``(``@``D`(`!$`&4`8P!E`&T`8@!E`'(` M,P`Q`"P`#0`-``D`(``@`"``"0`@`#(`,``P`#8`(``@``D`"0`@`"``(``) M`"``,@`P`#``-P`@`"``"0`)`"``(``@``D`(``R`#``,``X`"``(``)``D` M(``@`"``"0`@`#(`,``P`#@`(``@``D`#0`-`"``4`!R`&\`<`!E`'(`=`!Y M`"``80!C`'$`=0!I`',`:0!T`&D`;P!N`"``(``@``D`"0`@`"0`(``@``D` M(``Q`#<`.0`L`#@`.``X`"``(``)``D`(``@`"``"0`@`"0`(``@``D`"0`@ M`"``(``)``D`(``D`"``(``)`"``,P`U`"P`.``Q`#``(``@``D`"0`@`"`` M(``)`"``)``@`"``"0`@`#(`,0`U`"P`-@`Y`#@`(``@``D`#0`-``T`(`!% M`'@`<`!L`&\`<@!A`'0`:0!O`&X`(``@`"``"0`)`"``(``@``D`"0`@`"`` M(``)``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`) M`"``(``@``D`"0`-``T`#0`@`$0`90!V`&4`;`!O`'``;0!E`&X`=``@`"`` M(``)``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`) M`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)``T`#0`-`"``0P!A`'`` M:0!T`&$`;`!I`'H`90!D`"``:0!N`'0`90!R`&4`0`@`&$`8P!C`&\`=0!N`'0`0`@`%(`80!N M`&,`:``L`"``3``N`%``+@`@`"@`1P!R`&4`>0`@`%(`80!N`&,`:``I`"`` M:0!S`"``<`!R`&D`;0!A`'(`:0!L`'D`(`!E`&X`9P!A`&<`90!D`"``:0!N M`"``=`!R`&4`80!T`&D`;@!G`"``80!N`&0`(`!T`'(`80!N`',`<`!O`'(` M=`!A`'0`:0!O`&X`(`!O`&8`(`!N`&$`=`!U`'(`80!L`"``9P!A`',`+@`@ M`%0`:`!E`"``0P!O`&T`<`!A`&X`>0`@`'``=0!R`&,`:`!A`',`90!D`"`` M:0!T`',`(`!I`&X`=@!E`',`=`!M`&4`;@!T`"``9`!U`'(`:0!N`&<`(``R M`#``,``S`"X`(`!!`'0`(`!$`&4`8P!E`&T`8@!E`'(`,P`Q`"P`(``R`#`` M,``X`"``80!N`&0`(``R`#``,``W`"P`(`!T`&@`90`@`$,`;P!M`'``80!N M`'D`(`!O`'<`;@!E`&0`(``U`#``)0`@`&\`9@`@`$<`<@!E`'D`(`!2`&$` M;@!C`&@`(`!A`&X`9``@`&@`80!D`"``80!P`'``<@!O`'@`:0!M`&$`=`!E M`&P`>0`@`"0`-@`N`#$`;0!I`&P`;`!I`&\`;@`@`&$`;@!D`"``)``T`"X` M,@!M`&D`;`!L`&D`;P!N`"P`(`!R`&4`0`L M`"``<@!E`&,`;P!R`&0`90!D`"``:0!N`"``=`!H`&4`(`!C`&\`;@!S`&\` M;`!I`&0`80!T`&4`9``@`&(`80!L`&$`;@!C`&4`(`!S`&@`90!E`'0`0`L`"``3``N M`%``+@!4`&@`90`@`$,`;P!M`'``80!N`'D`(`!A`&X`9``@`$,`;`!A`'D` M=`!O`&X`(`!7`&D`;`!L`&D`80!M`',`(`!%`&X`90!R`&<`>0`L`"``20!N M`&,`+@`@`"@`0P!7`$4`20`I`"``90!A`&,`:``@`&\`=P!N`"``80`@`#4` M,``E`"``:0!N`'0`90!R`&4`0`L M`"``3``N`%``+@`@`"@`3`!A`'(`8P!L`&$`>0`I`"P`(`!A`"``;`!I`&T` M:0!T`&4`9``@`'``80!R`'0`;@!E`'(``!P`&4`<@!I`&4`;@!C`&4`9``@`&(`>0`@`$P`80!R`&,` M;`!A`'D`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0`@`'(`90!C`&\`<@!D M`&4`9``@`&$`;@`@`&D`;0!P`&$`:0!R`&T`90!N`'0`(`!F`&\`<@`@`&D` M=`!S`"``:0!N`'8`90!S`'0`;0!E`&X`=``@`&D`;@`@`$P`80!R`&,`;`!A M`'D`(`!A`',`(`!O`&8`(`!$`&4`8P!E`&T`8@!E`'(`,P`Q`"P`(``R`#`` M,``X`"X`(`!3`&4`90`@`$X`;P!T`&4`.``@`&8`;P!R`"``80`@`&0`:0!S M`&,`=0!S`',`:0!O`&X`(`!O`&8`(`!I`&T`<`!A`&D`<@!M`&4`;@!T`"X` M(`!!`'0`(`!$`&4`8P!E`&T`8@!E`'(`,P`Q`"P`(``R`#``,``W`"P`(`!T M`&@`90`@`$,`;P!M`'``80!N`'D`(`!H`&$`9``@`&$`<`!P`'(`;P!X`&D` M;0!A`'0`90!L`'D`(``D`#,`+@`X`&T`:0!L`&P`:0!O`&X`(`!I`&X`8P!L M`'4`9`!E`&0`(`!I`&X`(`!T`&@`90`@`&,`;P!N`',`;P!L`&D`9`!A`'0` M90!D`"``8@!A`&P`80!N`&,`90`@`',`:`!E`&4`=`!S`"``<@!E`&P`80!T M`&D`;@!G`"``=`!O`"``=`!H`&D``!E`',`+``@`&T`80!Y`"``;@!O`'0`(`!E`'@` M8P!E`&4`9``@`&$`(`!C`&$`;`!C`'4`;`!A`'0`90!D`"``8P!E`&D`;`!I M`&X`9P`N`"``5`!H`&4`(`!C`&4`:0!L`&D`;@!G`"``;`!I`&T`:0!T`&$` M=`!I`&\`;@`@`&D`@!A`'0`:0!O`&X`+@`@`$D`;@`@`&,`80!L`&,`=0!L`&$`=`!I M`&X`9P`@`&8`=0!T`'4`<@!E`"``;@!E`'0`(`!R`&4`=@!E`&X`=0!E`',` M+``@`'``<@!I`&,`90!S`"``80!N`&0`(`!C`&\``!C`&4`<`!T`"``=P!H M`&4`<@!E`"``9`!I`&8`9@!E`'(`90!N`'0`(`!P`'(`:0!C`&4`0`@`&@`80!S`"``90!N M`'0`90!R`&4`9``@`&D`;@!T`&\`(`!V`&$`<@!I`&\`=0!S`"``8P!O`&T` M;0!O`&0`:0!T`'D`(`!D`&4`<@!I`'8`80!T`&D`=@!E`"``8P!O`&X`=`!R M`&$`8P!T`',`.P`@`&@`;P!W`&4`=@!E`'(`+``@`'0`:`!E`',`90`@`&0` M90!R`&D`=@!A`'0`:0!V`&4`(`!C`&\`;@!T`'(`80!C`'0`0`@`&X`;P!T`"``8@!E`"``<@!E`'8`90!R`',`90!D`"`` M:0!N`"``80`@`',`=0!B`',`90!Q`'4`90!N`'0`(`!P`&4`<@!I`&\`9``@ M`&4`=@!E`&X`(`!T`&@`;P!U`&<`:``@`&@`:0!G`&@`90!R`"``;@!A`'0` M=0!R`&$`;``@`&<`80!S`"``80!N`&0`(`!C`'(`=0!D`&4`(`!O`&D`;``@ M`'``<@!I`&,`90!S`"``;0!A`'D`(`!H`&$`=@!E`"``:0!N`&,`<@!E`&$` M0`L`"``3``N`%``+@!,`&$`<@!I M`&$`=``@`&$`;@!D`"``0P!7`$4`20`@`&4`80!C`&@`(`!O`'<`;@`@`&$` M(``U`#``)0`@`&D`;@!T`&4`<@!E`',`=``@`&D`;@`@`$P`80!R`&,`;`!A M`'D`+``@`&$`(`!L`&D`;0!I`'0`90!D`"``<`!A`'(`=`!N`&4`<@!S`&@` M:0!P`"``9@!O`'(`;0!E`&0`(`!I`&X`(``R`#``,``V`"``=`!O`"``80!C M`'$`=0!I`'(`90`@`&0`<@!I`&P`;`!I`&X`9P`@`'(`:0!G`',`(`!A`&X` M9``@`'``<@!O`'8`:0!D`&4`(`!L`&$`;@!D`"``9`!R`&D`;`!L`&D`;@!G M`"``0`@`'``80!R`'0`;@!E`'(`0`@`&$`;@!D`"`` M<@!E`&P`80!T`&4`9``@`&D`;@!T`&4`<@!E`',`=``@`'(`90!C`&4`:0!V M`&$`8@!L`&4`(`!W`&4`<@!E`"``)``W`"X`-0!M`&D`;`!L`&D`;P!N`"`` M80!N`&0`(``D`#``+@`R`&T`:0!L`&P`:0!O`&X`+``@`'(`90!S`'``90!C M`'0`:0!V`&4`;`!Y`"X`(`!7`&D`=`!H`"``=`!H`&4`(`!S`&D`9P!N`&D` M9@!I`&,`80!N`'0`(`!D`&4`8P!L`&D`;@!E`"``:0!N`"``;@!A`'0`=0!R M`&$`;``@`&<`80!S`"``80!N`&0`(`!C`'(`=0!D`&4`(`!O`&D`;``@`'`` M<@!I`&,`90!S`"``:0!N`"``=`!H`&4`(`!F`&\`=0!R`'0`:``@`'$`=0!A M`'(`=`!E`'(`(`!O`&8`(``R`#``,``X`"P`(`!T`&@`90`@`&0`90!M`&$` M;@!D`"``9@!O`'(`(`!,`&$`<@!C`&P`80!Y`',`(`!D`'(`:0!L`&P`:0!N M`&<`(`!R`&D`9P!S`"``80!N`&0`(`!L`&$`;@!D`"``9`!R`&D`;`!L`&D` M;@!G`"```!P`&4`;@!S`&4`(`!O`&8`(`!A`'``<`!R`&\`>`!I`&T`80!T`&4` M;`!Y`"``)``Q`#(`+@`U`&T`:0!L`&P`:0!O`&X`(`!I`&X`8P!L`'4`9`!E M`&0`(`!I`&X`(`!T`&@`90`@`&,`;P!N`',`;P!L`&D`9`!A`'0`90!D`"`` M0`@`'0`:`!E`"``30!I`&X`90!R`&$`;`!S`"``30!A`&X` M80!G`&4`;0!E`&X`=``@`%,`90!R`'8`:0!C`&4`(`!O`&8`(`!T`&@`90`@ M`%4`;@!I`'0`90!D`"``4P!T`&$`=`!E`',`(`!$`&4`<`!A`'(`=`!M`&4` M;@!T`"``;P!F`"``=`!H`&4`(`!)`&X`=`!E`'(`:0!O`'(`+``@`',`=0!R M`&4`=`!Y`"``8@!O`&X`9``@`'4`;@!D`&4`<@!W`'(`:0!T`&4`<@!S`"P` M(`!P`'4`<@!C`&@`80!S`&4`(`!A`&<`<@!E`&4`;0!E`&X`=`!S`"``;P!R M`"``;P!T`&@`90!R`"``0`@`&0`90!P`&\`0`@`"0`,``N`#@`;0!I`&P`;`!I`&\`;@`@`&$`;@!D`"`` M)``W`"X`-`!M`&D`;`!L`&D`;P!N`"P`(`!R`&4`0`L`"``:0!N`"``90!S`&,`<@!O`'<`(`!A`&,`8P!O`'4`;@!T`',` M+@`@`"``#0`-`"``)0`!00!C`&,`;P!U`&X`=`!S`"``4`!A`'D`80!B`&P` M90`@`&$`;@!D`"``00!C`&,`<@!U`&4`9``@`$4`>`!P`&4`;@!S`&4``!P`&4`;@!S`&4``!P`&4`;@!S`&4``!P`&4`;@!S`&4``!C`&4`0`@`&4`;@!T`&4`<@!E`&0`(`!I`&X`=`!O`"``80!N M`"``80!G`'(`90!E`&T`90!N`'0`(`!W`&D`=`!H`"``80`@`',`=0!B`',` M:0!D`&D`80!R`'D`(`!O`&8`(`!/`&,`8P!I`&0`90!N`'0`80!L`"``4`!E M`'0`<@!O`&P`90!U`&T`(`!#`&\`<@!P`&\`<@!A`'0`:0!O`&X`(``H`$\` M8P!C`&D`9`!E`&X`=`!A`&P`*0`@`'0`;P`@`&,`;P!N`',`=`!R`'4`8P!T M`"``80`@`$,`3P`R`"``=`!R`&4`80!T`&D`;@!G`"``<`!L`&$`;@!T`"`` M*`!T`&@`90`@`$,`90!N`'0`=0!R`'D`(`!0`&P`80!N`'0`*0`@`&$`;@!D M`"``80!S`',`;P!C`&D`80!T`&4`9``@`&,`;P!M`'``<@!E`',`0`@`&$`(`!M M`&D`;@!I`&T`=0!M`"``;P!F`"``,0`P`#``)0`@`&\`9@`@`'0`:`!E`"`` M8P!O`&X`=`!R`&$`8P!T`"``<`!R`&D`8P!E`"P`(`!P`&P`=0!S`"``80!N M`'D`(`!S`'4`8@!S`&4`<0!U`&4`;@!T`"``80!G`'(`90!E`&0`+0!U`'`` M;P!N`"``<@!E`'8`:0!S`&D`;P!N`',`+``@`'0`;P`@`'0`:`!E`"``0P!O M`&T`<`!A`&X`>0`@`'0`:`!R`&\`=0!G`&@`(`!P`&4`<@!I`&\`9`!I`&,` M(`!C`&\`0`L`"``5`!E`'@` M80!S`"P`(`!W`&D`;`!L`"``8@!E`"``;P!W`&X`90!D`"``80!N`&0`(`!O M`'``90!R`&$`=`!E`&0`(`!B`'D`(`!/`&,`8P!I`&0`90!N`'0`80!L`"`` M9@!O`'(`(`!T`&@`90`@`'``=0!R`'``;P!S`&4`(`!O`&8`(`!S`&4`<`!A M`'(`80!T`&D`;@!G`"``80!N`&0`(`!R`&4`;0!O`'8`:0!N`&<`(`!#`$\` M,@`@`&8`<@!O`&T`(`!D`&4`;`!I`'8`90!R`&4`9``@`&X`80!T`'4`<@!A M`&P`(`!G`&$``!E`&,`=0!T`&4`9``@`',`:0!M`'4`;`!T`&$` M;@!E`&\`=0!S`&P`>0`@`'<`:0!T`&@`(`!T`&@`90`@`&,`;P!N`',`=`!R M`'4`8P!T`&D`;P!N`"``80!G`'(`90!E`&T`90!N`'0`+``@`$\`8P!C`&D` M9`!E`&X`=`!A`&P`(`!W`&D`;`!L`"``<@!E`&T`;P!V`&4`(`!#`$\`,@`@ M`&8`<@!O`&T`(`!T`&@`90`@`$,`;P!M`'``80!N`'D`@!E`&0`(`!W`&@`90!N`"``:0!T`"``:0!S`"``9`!E`'0`90!R M`&T`:0!N`&4`9``@`'0`:`!A`'0`(`!A`"``;`!O`',``!C`&4`0`@`&D`;@`@`'0` M:`!E`"``8P!O`&X`0`I M`"X`(`!!`',`(`!D`&D`0`@`&,`;P!N`'0`80!I M`&X`0`@`&$`;`!L`"``;P!F`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y`',`(`!A M`',`0`@`&P`:0!M`&D`=`!S`"``=`!H`&4`(`!A`&(`:0!L`&D`=`!Y`"`` M;P!F`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y`"``80!N`&0`(`!C`&4`<@!T M`&$`:0!N`"``;P!F`"``:0!T`',`(`!S`'4`8@!S`&D`9`!I`&$`<@!I`&4` M0`I`"P`(`!W`&@`:0!C`&@`(`!M`&$`>0`@`&X`;P!T`"``90!X`&,` M90!E`&0`(``T`"X`-0`Z`#$`+@`P`"``8P!A`&P`8P!U`&P`80!T`&4`9``@ M`'4`0`L`"``80!N`'D`(`!A`&T`;P!U M`&X`=`!S`"``80!V`&$`:0!L`&$`8@!L`&4`(`!T`&\`(`!B`&4`(`!D`'(` M80!W`&X`(`!U`&X`9`!E`'(`(`!T`&@`90`@`',`90!N`&D`;P!R`"``8P!R M`&4`9`!I`'0`(`!F`&$`8P!I`&P`:0!T`'D`(`!A`'(`90`@`&D`;@!C`&P` M=0!D`&4`9``@`&D`;@`@`&,`=0!R`'(`90!N`'0`(`!A`',`0!S`"``9`!E`'(`:0!V`&$`=`!I`'8`90`@`&,`;P!N`'0` M<@!A`&,`=`!S`"``80!R`&4`(`!D`&D`0`@`'<`80!S`"``:0!N`"``8P!O M`&T`<`!L`&D`80!N`&,`90`@`'<`:0!T`&@`(`!A`&P`;``@`&\`9@`@`'0` M:`!E`"``9@!I`&X`80!N`&,`:0!A`&P`(`!C`&\`=@!E`&X`80!N`'0`0`N`"``(``-``T`#0`@`%0`:`!E`"``;P!B M`&P`:0!G`&$`=`!I`&\`;@!S`"``=0!N`&0`90!R`"``=`!H`&4`(`!S`&4` M;@!I`&\`<@`@`&,`<@!E`&0`:0!T`"``9@!A`&,`:0!L`&D`=`!Y`"``80!R M`&4`(`!G`'4`80!R`&$`;@!T`&4`90`\`!L@`60`(`!B`'D`(`!C`&4`<@!T M`&$`:0!N`"``0P!O`&T`<`!A`&X`>0`@`',`=0!B`',`:0!D`&D`80!R`&D` M90!S`"X`(`!!`&0`9`!I`'0`:0!O`&X`&P`!3P!T`&@`90!R`"``3`!O`&X` M9P`M`%0`90!R`&T`"@!/`&(`;`!I`&<`80!T`&D`;P!N`',`8P,!(``@``T` M#0`-``D`(``Q`#,`+@`@`"``"0`@`$\`=`!H`&4`<@`@`$P`;P!N`&<`+0!4 M`&4`<@!M`"``3P!B`&P`:0!G`&$`=`!I`&\`;@!S`"``(``@`"``#0`-``T` M(`!4`&@`90`@`$,`;P!M`'``80!N`'D`(`!H`&$`0`@`#(`,``P`#<`+@`@`%0`:`!E`"``0P!O`&T`<`!A M`&X`>0`@`&$`9P!R`&4`90!D`"``=`!O`"``<`!A`'D`(`!A`'``<`!R`&\` M>`!I`&T`80!T`&4`;`!Y`"``)``R`#4`+@`P`&T`:0!L`&P`:0!O`&X`(`!P M`&P`=0!S`"``:0!N`'0`90!R`&4`0!A`&(`;`!E`"`` M:0!N`"``)``U`"X`,`!M`&D`;`!L`&D`;P!N`"``:0!N`&,`<@!E`&T`90!N M`'0`0`Q`"P`(``R`#``,0`P`"``80!N`&0`(`!*`'4`;`!Y`#$` M+``@`#(`,``Q`#$`+@`@`%0`:`!E`"``<`!A`'D`;0!E`&X`=``@`&T`80!D M`&4`(`!O`&X`(`!*`'4`;`!Y`#$`+``@`#(`,``P`#@`(`!W`&$`0!M`&4`;@!T`"``=`!O`"``8@!E M`"``;0!A`&0`90`@`&\`;@`@`$H`=0!L`'D`,0`L`"``,@`P`#``.0`@`&@` M80!S`"``8@!E`&4`;@`@`&D`;@!C`&P`=0!D`&4`9``@`&D`;@`@`&$`8P!C M`&\`=0!N`'0`0`@ M`&@`80!S`"``90!N`'0`90!R`&4`9``@`&D`;@!T`&\`(`!V`&$`<@!I`&\` M=0!S`"``9`!E`'(`:0!V`&$`=`!I`'8`90`@`&,`;P!N`'0`<@!A`&,`=`!S M`"``:0!N`&,`;`!U`&0`:0!N`&<`(`!F`&D`>`!E`&0`(`!P`'(`:0!C`&4` M(`!S`'<`80!P`',`+``@`&,`;P!L`&P`80!R`',`(`!A`&X`9``@`&(`80!S M`&D`0`@`'0`;P`@`&\`;@!E`"``;P!F`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y M`',`(`!D`&4`<@!I`'8`80!T`&D`=@!E`"``8P!O`&X`=`!R`&$`8P!T`',` M+``@`$P`90!H`&T`80!N`"``0@!R`&\`=`!H`&4`<@!S`"P`(`!D`&4`8P!L M`&$`<@!E`&0`(`!B`&$`;@!K`'(`=0!P`'0`8P!Y`"``;P!N`"``3P!C`'0` M;P!B`&4`<@`S`"P`(``R`#``,``X`"X`(`!$`'4`90`@`'0`;P`@`$P`90!H M`&T`80!N`"``0@!R`&\`=`!H`&4`<@!S`"``8@!A`&X`:P!R`'4`<`!T`&,` M>0`@`&$`;@!D`"``=`!H`&4`(`!D`&4`8P!L`&$`<@!A`'0`:0!O`&X`(`!O M`&8`(`!B`&$`;@!K`'(`=0!P`'0`8P!Y`"``8@!Y`"``:0!T`',`(`!P`&$` M<@!E`&X`=``L`"``3`!E`&@`;0!A`&X`(`!"`'(`;P!T`&@`90!R`',`(`!( M`&\`;`!D`&D`;@!G`',`+``@`$D`;@!C`"X`+``@`&\`;@`@`%,`90!P`'0` M90!M`&(`90!R`#$`-0`L`"``,@`P`#``.``L`"``=`!H`&4`(`!#`&\`;0!P M`&$`;@!Y`"``:`!A`',`(`!N`&\`=``@`&$`0`@`#(`,``P`#D`(`!3`&4`<`!T`&4`;0!B M`&4`<@`@`#(`,``P`#D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D` M(``@`"``"0`)``T`#0`-`"``4`!R`&D`8P!E`"``0`@`#(`,``Q`#``(`!-`&$`<@!C`&@`(``R`#``,0`P M`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)`"``(``@``D`"0`-``T` M#0`@`%``<@!I`&,`90`@`',`=P!A`'``(`!C`&\`;@!T`'(`80!C`'0`0`@`#(`,``Q`#$`(`!3`&4`<`!T`&4`;0!B`&4`<@`@`#(` M,``Q`#$`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`) M``T`#0`-`"``0@!A`',`:0!S`"``0`@`&T`80!D`&4` M(`!M`&$`=`!C`&@`:0!N`&<`(`!C`&\`;@!T`'(`:0!B`'4`=`!I`&\`;@!S M`"``90!Q`'4`80!L`"``=`!O`"``-0`P`"4`(`!O`&X`(`!T`&@`90`@`&8` M:0!R`',`=``@`#8`)0`@`&\`9@`@`&4`;0!P`&P`;P!Y`&4`90`@`&0`90!F M`&4`<@!R`&4`9``@`'<`80!G`&4`0!E`&4`(`!D`&4`9@!E`'(`<@!E`&0`(`!W`&$`9P!E M`',`+@`@`%0`:`!E`"``<`!L`&$`;@`@`'<`80!S`"``80!L`',`;P`@`&T` M;P!D`&D`9@!I`&4`9``@`'0`;P`@`&T`80!K`&4`(`!T`&@`90`@`&T`80!T M`&,`:`!I`&X`9P`@`&,`;P!N`'0`<@!I`&(`=0!T`&D`;P!N`',`(`!P`&$` M>0!A`&(`;`!E`"``:0!N`"``0P!O`&T`<`!A`&X`>0`@`&,`;P!M`&T`;P!N M`"``0!E`&4`0!E`&4`0`@ M`"0`-P`N`#@`;0!I`&P`;`!I`&\`;@`L`"``)``T`"X`.0!M`&D`;`!L`&D` M;P!N`"``80!N`&0`(``D`#$`+@`U`&T`:0!L`&P`:0!O`&X`+``@`'(`90!S M`'``90!C`'0`:0!V`&4`;`!Y`"X`(``@``T`#0`-`"``1`!E`&8`90!R`'(` M90!D`"``0P!O`&T`<`!E`&X`0`@`&4`0!E`&4`0!E`'(`(`!M`&$`=`!C`&@`:0!N`&<`(`!C`&\`;@!T`'(`:0!B`'4` M=`!I`&\`;@`@`&D`;@`@`'0`:`!E`"``80!M`&\`=0!N`'0`0`N`"``20!N`"``2@!U`&P`>0`@`#(`,``P M`#@`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0`@`',`80!T`&D`0`@`"0`,@`N`#,`;0!I`&P` M;`!I`&\`;@`@`&$`;@!D`"``)``P`"X`-@!M`&D`;`!L`&D`;P!N`"P`(`!R M`&4`0`N`"``(``-``T`(``,``%)`&X`8P!O M`&T`90`*`%0`80!X`&4``!E`',`(``@`"``(``-``T`#0`@`$0` M90!F`&4`<@!R`&4`9``@`&D`;@!C`&\`;0!E`"``=`!A`'@`90!S`"``<@!E M`&8`;`!E`&,`=``@`'0`:`!E`"``;@!E`'0`(`!T`&$`>``@`&4`9@!F`&4` M8P!T`',`(`!O`&8`(`!T`&4`;0!P`&\`<@!A`'(`>0`@`&0`:0!F`&8`90!R M`&4`;@!C`&4`0!I`&X`9P`@`&$`;0!O`'4`;@!T`',`(`!O`&8`(`!A`',`@!E`&0`(`!B`&$`0!S`"``9`!E`&8`90!R`'(`90!D`"``=`!A`'@`(`!A`',`0`L`"``<`!L`&$`;@!T`"``90!Q`'4`:0!P`&T`90!N`'0` M(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`@`#0`-0`L M`#4`,P`W`"``(``)``T`#0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"`` M"0`)`"``(``@``D`#0`-``T`(`!4`&\`=`!A`&P`(`!D`&4`9@!E`'(`<@!E M`&0`(`!T`&$`>``@`&P`:0!A`&(`:0!L`&D`=`!I`&4```@`&,`<@!E`&0`:0!T`"``8P!A M`'(`<@!Y`&8`;P!R`'<`80!R`&0`(``@`"``"0`)`"``(``@``D`(``Q`"P` M,@`Y`#<`(``@``D`"0`@`"``(``)``D`(``U`#(`.``@`"``"0`-``T`#0`@ M`$\`=`!H`&4`<@`@`"``(``)``D`(``@`"``"0`@`#(`+``X`#<`,``@`"`` M"0`)`"``(``@``D`"0`@`#$`+``S`#$`,@`@`"``"0`-``T`"0`@`"``(``) M``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``T`#0`-`"``5`!O`'0` M80!L`"``9`!E`&8`90!R`'(`90!D`"``=`!A`'@`(`!A`',`0`@`"``(``)``D`(``D`"``(``)``D`(``@`"`` M"0`)`"``)``@`"``"0`@`#0`-P`L`#4`,P`P`"``(``)``T`#0`)`"``(``@ M``D`"0`@`"``(``)``D`(``@`"``"0`)`"``(``@``D`#0`-`"``5`!H`&4` M(`!P`'(`;P!V`&D`0!E`&$`<@!S`"``90!N`&0`90!D`"``1`!E`&,` M90!M`&(`90!R`"``,P`Q`"``*`!I`&X`=`!H`&\`=0!S`&$`;@!D`',`*0`Z M`"``(``-``T`#0`)`"``(``)``D`(``@``D`"0`@`"``"0`)`"``(``)``D` M(``@``D`"0`@`"``"0`-``T`"0`@`"``(``)`"``,@`P`#``.``@`"``"0`) M`"``(``@``D`(``R`#``,``W`"``(``)``D`(``@`"``"0`@`#(`,``P`#8` M(``@``D`#0`-`"``0P!U`'(`<@!E`&X`=``Z`"``(``@``D`"0`@`"``(``) M``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)``T` M#0`-`"``1@!E`&0`90!R`&$`;``@`"``(``)``D`(``D`"``(``)`"``-``L M`#4`,P`W`"``(``)``D`(``@`"``"0`@`"0`(``@``D`"0`@`"``(``)``D` M(``D`"``(``)`"``,P`L`#(`,P`U`"``(``)``T`#0`-`"``4P!T`&$`=`!E M`"``(``@``D`"0`@`"``(``)`"``-``L`#8`-@`U`"``(``)``D`(``@`"`` M"0`)`"``-@`P`#$`(``@``D`"0`@`"``(``)``D`(``R`"P`-@`U`#,`(``@ M``D`#0`-``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"`` M"0`)`"``(``@``D`"0`@`"``(``)``T`#0`)`"``(``@``D`"0`@`#D`+``R M`#``,@`@`"``"0`)`"``(``@``D`"0`@`#8`,``Q`"``(``)``D`(``@`"`` M"0`)`"``-0`L`#@`.``X`"``(``)``T`#0`)`"``(``@``D`"0`@`"``(``) M``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`-``T` M#0`@`$0`90!F`&4`<@!R`&4`9``Z`"``(``@``D`"0`@`"``(``)``D`(``@ M`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)``T`#0`-`"`` M1@!E`&0`90!R`&$`;``@`"``(``)``D`(``@`"``"0`@`"@`-``V`"P`,0`X M`#``(``@``D`(``I`"``(``)``D`(``@`"``"0`@`#(`.``L`#$`,@`Q`"`` M(``)``D`(``@`"``"0`)`"``,P`T`#4`(``@``D`#0`-``T`(`!3`'0`80!T M`&4`(``@`"``"0`)`"``(``@``D`(``H`#$`+``S`#4`,``@`"``"0`@`"D` M(``@``D`"0`@`"``(``)`"``.``P`#(`(``@``D`"0`@`"``(``)``D`(``S M`"``(``)``T`#0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)`"`` M(``@``D`"0`@`"``(``)``D`(``@`"``"0`-``T`"0`@`"``(``)``D`(``H M`#0`-P`L`#4`,P`P`"``(``)`"``*0`@`"``"0`)`"``(``@``D`(``R`#@` M+``Y`#(`,P`@`"``"0`)`"``(``@``D`"0`@`#,`-``X`"``(``)``T`#0`) M`"``(``@``D`"0`@`"``(``)``D`(``@`"``"0`)`"``(``@``D`"0`@`"`` M(``)``D`(``@`"``"0`-``T`#0`@`%0`;P!T`&$`;``@`"@`8@!E`&X`90!F M`&D`=``I`"``<`!R`&\`=@!I`',`:0!O`&X`(`!F`&\`<@`@`&D`;@!C`&\` M;0!E`"``=`!A`'@`90!S`"``(``@``D`"0`@`"0`(``@``D`(``H`#,`.``L M`#,`,@`X`"``(``)`"``*0`@`"``"0`)`"``)``@`"``"0`@`#(`.0`L`#4` M,@`T`"``(``)``D`(``@`"``"0`@`"0`(``@``D`(``V`"P`,@`S`#8`(``@ M``D`#0`-``D`(``@`"``"0`)`"``(``@``D`"0`@`"``(``)``D`(``@`"`` M"0`)`"``(``@``D`"0`@`"``(``)``T`#0`@`$$`(`!R`&4`8P!O`&X`8P!I M`&P`:0!A`'0`:0!O`&X`(`!O`&8`(`!T`&@`90`@`'``<@!O`'8`:0!S`&D` M;P!N`"``9@!O`'(`(`!I`&X`8P!O`&T`90`@`'0`80!X`&4`0`@`'(` M80!T`&4``!E`',`+``@`&X`90!T`"``;P!F`"`` M9@!E`&0`90!R`&$`;``@`&(`90!N`&4`9@!I`'0`(``@`"``"0`)`"``(``@ M``D`(``H`#$`,@`L`#$`-0`S`"``(``)`"``*0`@`"``"0`)`"``(``@``D` M(``Y`#$`,@`@`"``"0`)`"``(``@``D`"0`@`#$`+``W`#(`-``@`"``"0`- M``T`#0`@`$X`;P!N`&0`90!D`'4`8P!T`&D`8@!L`&4`(``9``%%`&$`<@!N M`&D`;@!G`',`(``H`$P`;P!S`',`*0`@`%``90!R`"``4P!H`&$`<@!E`%L' M`2``(``-``T`#0`)`"``,0`W`"X`(``@``D`(`!%`&$`<@!N`&D`;@!G`',` M(``H`$P`;P!S`',`*0`@`%``90!R`"``4P!H`&$`<@!E`"``(``@`"``#0`- M``T`(`!"`&$`0!E`&$`<@`L`"``8@!U M`'0`(`!A`&P``!I`&T` M80!T`&4`;`!Y`"``,P`N`#``;0!I`&P`;`!I`&\`;@`@`',`:`!A`'(`90!S M`"``=P!E`'(`90`@`&4`>`!C`&P`=0!D`&4`9``@`&8`<@!O`&T`(`!T`&@` M90`@`&,`;P!M`'``=0!T`&$`=`!I`&\`;@`@`&\`9@`@`&X`90!T`"``;`!O M`',`0!E`&$`<@!S M`"``90!N`&0`90!D`"``1`!E`&,`90!M`&(`90!R`#,`,0`L`"``,@`P`#`` M.``@`&$`;@!D`"``,@`P`#``-P`N`"``(``-``T`(``=``%#`&\`;0!M`&D` M=`!M`&4`;@!T`',`(`!A`&X`9``@`$,`;P!N`'0`:0!N`&<`90!N`&,`:0!E M`',`U0D!(``@``T`#0`-``D`(``Q`#@`+@`@`"``"0`@`$,`;P!M`&T`:0!T M`&T`90!N`'0`0`@`&@`80!S`"``;P!B`&P` M:0!G`&$`=`!I`&\`;@!S`"``=0!N`&0`90!R`"``;@!O`&X`8P!A`&X`8P!E M`&P`80!B`&P`90`@`&\`<`!E`'(`80!T`&D`;@!G`"``;`!E`&$`0!E`&$`<@!S`"``90!N`&0`90!D`"``1`!E`&,`90!M`&(`90!R M`#,`,0`L`"``,@`P`#``.``L`"``,@`P`#``-P`@`&$`;@!D`"``,@`P`#`` M-@`@`'<`80!S`"``80!P`'``<@!O`'@`:0!M`&$`=`!E`&P`>0`@`"0`,@`N M`#0`;0!I`&P`;`!I`&\`;@`L`"``)``R`"X`,P!M`&D`;`!L`&D`;P!N`"`` M80!N`&0`(``D`#$`+@`Q`&T`:0!L`&P`:0!O`&X`+``@`'(`90!S`'``90!C M`'0`:0!V`&4`;`!Y`"X`(``@``T`#0`-`"``1@!U`'0`=0!R`&4`(`!M`&D` M;@!I`&T`=0!M`"``;`!E`&$`0`@`&@`80!S`"``0`@`&D`0!M`&4`;@!T`',`(`!F`&\`<@`@`&8`:0!R`&T` M(`!T`'(`80!N`',`<`!O`'(`=`!A`'0`:0!O`&X`(`!A`',`(`!O`&8`(`!$ M`&4`8P!E`&T`8@!E`'(`,P`Q`"P`(``R`#``,``X`"``=P!E`'(`90`@`&$` M0`@`&D`0`@`&P`90!G`&$`;``@ M`'``<@!O`&,`90!E`&0`:0!N`&<`0`N`"``(``-``T`#0`@`$P` M;P!A`&X`(`!T`&\`(`!%`'$`=0!I`'0`>0`@`$D`;@!V`&4`0`L`"``=`!H`'(`;P!U`&<`:``@`&D` M=`!S`"``0`@`$P`80!R`&D`80!T`"P`(`!H M`&$`0`@`&X`;P!T`&4`(`!W M`&D`=`!H`"``3`!A`'(`8P!L`&$`>0`@`&8`;P!R`"``80!N`"``80!G`&<` M<@!E`&<`80!T`&4`(`!P`'(`:0!N`&,`:0!P`&$`;``@`&$`;0!O`'4`;@!T M`"``;P!F`"``=0!P`"``=`!O`"``)``Q`#4`+@`P`&T`:0!L`&P`:0!O`&X` M+@`@`%,`90!E`"``3@!O`'0`90!S`#@`(`!A`&X`9``@`#(`,0`N`"``(``- M``T`(``F``%2`&4`9`!E`&4`;0!A`&(`;`!E`"``0P!O`&X`=@!E`'(`=`!I M`&(`;`!E`"``4`!R`&4`9@!E`'(`<@!E`&0`(`!3`'0`;P!C`&L`@`P!(``@ M``T`#0`-``D`(``Q`#D`+@`@`"``"0`@`%(`90!D`&4`90!M`&$`8@!L`&4` M(`!#`&\`;@!V`&4`<@!T`&D`8@!L`&4`(`!0`'(`90!F`&4`<@!R`&4`9``@ M`%,`=`!O`&,`:P`@`"``(``@``T`#0`-`"``20!N`"``3@!O`'8`90!M`&(` M90!R`"``,@`P`#``-@`L`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y`"```!I`&T`80!T`&4`;`!Y`"``)``T`#,`.0`N`#4`;0!I`&P` M;`!I`&\`;@`@`&$`9@!T`&4`<@`@`&0`90!D`'4`8P!T`&D`;@!G`"``;P!F M`&8`90!R`&D`;@!G`"``90!X`'``90!N`',`90!S`"``;P!F`"``80!P`'`` M<@!O`'@`:0!M`&$`=`!E`&P`>0`@`"0`.0`N`#,`;0!I`&P`;`!I`&\`;@`N M`"``10!A`&,`:``@`&@`;P!L`&0`90!R`"``;P!F`"``<@!E`&0`90!E`&T` M80!B`&P`90`@`&,`;P!N`'8`90!R`'0`:0!B`&P`90`@`'``<@!E`&8`90!R M`'(`90!D`"``0`@`&,`80!S`&@`(`!D`&D`=@!I M`&0`90!N`&0`0`@`&,`;P!N`'8`90!R`'0`:0!B`&P` M90`@`&D`;@!T`&\`(`!T`&4`;@`@`',`:`!A`'(`90!S`"P`(`!A`&X`9``@ M`'4`;`!T`&D`;0!A`'0`90!L`'D`(`!C`&\`;@!V`&4`<@!T`&D`8@!L`&4` M(`!I`&X`=`!O`"``,0`P`"X`,@!S`&@`80!R`&4`0`@`&\`9@`@`&0`:0!V`&D`9`!E`&X`9`!S`"``9`!E`&,` M;`!A`'(`90!D`"``80!N`&0`(`!P`&$`:0!D`"``;P!N`"``=`!H`&4`(`!R M`&4`9`!E`&4`;0!A`&(`;`!E`"``8P!O`&X`=@!E`'(`=`!I`&(`;`!E`"`` M<`!R`&4`9@!E`'(`<@!E`&0`(`!S`'0`;P!C`&L`(`!I`',`(`!A`',`(`!F M`&\`;`!L`&\`=P!S`"``*`!I`&X`(`!T`&@`;P!U`',`80!N`&0`0`S`#$`+``@`#(`,``P`#<`(``@`"``"0`)`"``3@!O M`'8`90!M`&(`90!R`"``,@`Q`"P`(``R`#``,``V`"``1@!E`&(`<@!U`&$` M<@!Y`"``,0`L`"``,@`P`#``-P`@`"``"0`)`"``)``@`"``"0`@`#,`+@`R M`#$`(``@``D`"0`@`"``(``)`"``)``@`"``"0`@`#8`+``X`#4`.0`@`"`` M"0`)`"``(``@``D`(`!&`&4`8@!R`'4`80!R`'D`(``Q`#4`+``@`#(`,``P M`#<`(``@`"``#0`-``T`(`!-`&$`>0`X`"P`(``R`#``,``W`"``(``@``D` M"0`@`$8`90!B`'(`=0!A`'(`>0`@`#(`+``@`#(`,``P`#<`(`!-`&$`>0`@ M`#$`+``@`#(`,``P`#<`(``@``D`"0`@`"``(``)`"``,P`N`#D`-P`@`"`` M"0`)`"``(``@``D`"0`@`#@`+``U`#4`,``@`"``"0`)`"``(``@``D`(`!- M`&$`>0`@`#$`-0`L`"``,@`P`#``-P`@`"``(``-``T`#0`@`$H`=0!N`&4` M.``L`"``,@`P`#``-P`@`"``(``)``D`(`!-`&$`>0`@`#(`+``@`#(`,``P M`#<`(`!!`'4`9P!U`',`=``@`#$`+``@`#(`,``P`#<`(``@``D`"0`@`"`` M(``)`"``-``N`#$`,``@`"``"0`)`"``(``@``D`"0`@`#@`+``Y`#4`-@`@ M`"``"0`)`"``(``@``D`(`!!`'4`9P!U`',`=``@`#$`-0`L`"``,@`P`#`` M-P`@`"``(``-``T`#0`@`%,`90!P`'0`90!M`&(`90!R`#(`-``L`"``,@`P M`#``-P`@`"``(``)``D`(`!!`'4`9P!U`',`=``@`#(`+``@`#(`,``P`#<` M(`!.`&\`=@!E`&T`8@!E`'(`(``Q`"P`(``R`#``,``W`"``(``)``D`(``@ M`"``"0`@`#0`+@`Q`#``(``@``D`"0`@`"``(``)``D`(``X`"P`.0`U`#8` M(``@``D`"0`@`"``(``)`"``3@!O`'8`90!M`&(`90!R`"``,0`U`"P`(``R M`#``,``W`"``(``@``T`#0`-`"``1`!E`&,`90!M`&(`90!R`#$`-@`L`"`` M,@`P`#``-P`@`"``(``)``D`(`!.`&\`=@!E`&T`8@!E`'(`(``R`"P`(``R M`#``,``W`"``1@!E`&(`<@!U`&$`<@!Y`"``,0`L`"``,@`P`#``.``@`"`` M"0`)`"``(``@``D`(``T`"X`,0`P`"``(``)``D`(``@`"``"0`)`"``.``L M`#D`-0`V`"``(``)``D`(``@`"``"0`@`$8`90!B`'(`=0!A`'(`>0`@`#$` M-0`L`"``,@`P`#``.``@`"``(``-``T`#0`@`$T`80!R`&,`:``W`"P`(``R M`#``,``X`"``(``@``D`"0`@`$8`90!B`'(`=0!A`'(`>0`@`#(`+``@`#(` M,``P`#@`(`!-`&$`>0`@`#$`+``@`#(`,``P`#@`(``@``D`"0`@`"``(``) M`"``-``N`#``,0`@`"``"0`)`"``(``@``D`"0`@`#@`+``P`#D`-0`@`"`` M"0`)`"``(``@``D`(``H`#$`*0`@`"``(``-``T`#0`@`$T`80!Y`#<`+``@ M`#(`,``P`#@`(``@`"``"0`)`"``30!A`'D`(``R`"P`(``R`#``,``X`"`` M30!A`'D`(``W`"P`(``R`#``,``X`"``(``)``D`(``@`"``"0`@`#0`+@`P M`#$`(``@``D`"0`@`"``(``)``D`(``U`#``,0`@`"``"0`)`"``(``@``D` M(`!-`&$`>0`@`#<`+``@`#(`,``P`#@`(``@`"``(``-``T`"0`@``D`#0`- M``D`(``H`#$`*0`@`"``"0`)`"``20!N`&,`;`!U`&0`90!S`"``)``P`"X` M-@!M`&D`;`!L`&D`;P!N`"``;P!F`"``<`!R`&\`<@!A`'0`90!D`"``9`!I M`'8`:0!D`&4`;@!D`',`(`!P`&$`:0!D`"``=`!O`"``:`!O`&P`9`!E`'(` M`!E`'(`8P!I`',`90!D`"``=P!A`'(`<@!A`&X`=`!S M`"``=`!O`"``<`!U`'(`8P!H`&$`0`L`"``9`!U`'(`:0!N`&<`(`!-`&$`>0`R`#``,``X`"P` M(`!T`&@`90`@`$,`;P!M`'``80!N`'D`(`!C`&\`;@!V`&4`<@!T`&4`9``@ M`'0`:`!E`"``<@!E`&T`80!I`&X`:0!N`&<`(`!O`'4`=`!S`'0`80!N`&0` M:0!N`&<`(``Q`"P`.``T`#0`+``T`#8`-`!S`&@`80!R`&4`0`@`"``(``)``D`(``@`"``"0`@`#$`+``S`#(` M-@`@`"``"0`)`"``(``@``D`"0`@`#$`+``T`#4`-@`@`"``"0`-``T`(`!4 M`&@`90`@`$,`;P!M`'``80!N`'D`(`!I`',`(`!A`'4`=`!H`&\`<@!I`'H` M90!D`"``=`!O`"``:0!S`',`=0!E`"``-0`P`"P`,``P`#``+``P`#``,`!S M`&@`80!R`&4`0!S`"``8P!O`&T`;0!O`&X`(`!S`'0`;P!C M`&L`(`!D`'4`<@!I`&X`9P`@`#(`,``P`#@`+@`@`%,`90!E`"``3@!O`'0` M90`Q`#D`+@`@`%0`:`!E`'(`90`@`'<`90!R`&4`(`!N`&\`(`!S`&@`80!R M`&4`0`@`#(`,``P`#8`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X` M>0`@`&D``!E`'(`8P!I`',`90`@`&\`9@`@`&$`;@`@`&\`=@!E`'(`+0!A`&P`;`!O M`'0`;0!E`&X`=``@`&\`<`!T`&D`;P!N`"``<@!E`&P`80!T`&4`9``@`'0` M;P`@`&$`(`!$`&4`8P!E`&T`8@!E`'(`(``R`#``,``U`"``<`!R`&D`=@!A M`'0`90`@`'``;`!A`&,`90!M`&4`;@!T`"``;P!F`"``:0!T`',`(`!C`&\` M;0!M`&\`;@`@`',`=`!O`&,`:P`N`"``5`!H`&4`(`!#`&\`;0!P`&$`;@!Y M`"``:0!S`',`=0!E`&0`(`!T`&@`90!S`&4`(`!S`&@`80!R`&4`0`@`"0`,P`N`#,`;0!I`&P`;`!I`&\`;@`N M`"``(``-``T`#0`@`$D`;@`@`$X`;P!V`&4`;0!B`&4`<@`@`#(`,``P`#8` M+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0`@`',`;P!L`&0`(``U`"X`,P!M M`&D`;`!L`&D`;P!N`"``8P!O`&T`;0!O`&X`(`!U`&X`:0!T`',`(``H`&,` M;P!N`',`:0!S`'0`:0!N`&<`(`!O`&8`(`!S`&@`80!R`&4``!I`&T`80!T`&4`;`!Y`"``)``S`"X`.0!M`&D`;`!L`&D`;P!N`"X`(`!3 M`&4`90`@`$X`;P!T`&4`,@`N`"``(``-``T`#0`@`$D`;@`@`$T`80!R`&,` M:``@`#(`,``P`#<`+``@`'0`:`!E`"``0P!O`&T`<`!A`&X`>0`@`',`;P!L M`&0`(`!A`'``<`!R`&\`>`!I`&T`80!T`&4`;`!Y`"``,0`W`"X`.`!M`&D` M;`!L`&D`;P!N`"```!I`&T`80!T`&4`;`!Y M`"``)``Q`"X`-`!M`&D`;`!L`&D`;P!N`"X`(`!4`&@`90`@`',`=`!O`&,` M:P`@`'<`80!S`"``0!S`"``0P!H`&$`:0!R`&T`80!N`"``80!N`&0`(`!#`&@`:0!E`&8` M(`!%`'@`90!C`'4`=`!I`'8`90`@`$\`9@!F`&D`8P!E`'(`+``@`'<`:`!O M`"``:0!N`'8`90!S`'0`90!D`"``)``V`#$`+@`T`&T`:0!L`&P`:0!O`&X` M(`!I`&X`(`!E`'@`8P!H`&$`;@!G`&4`(`!F`&\`<@`@`&$`<`!P`'(`;P!X M`&D`;0!A`'0`90!L`'D`(``S`"X`-`!M`&D`;`!L`&D`;P!N`"``0`@`'0`;P`@`&$`;@`@`&4`;@!T`&D`=`!Y`"`` M8P!O`&X`=`!R`&\`;`!L`&4`9``@`&(`>0`@`'0`:`!E`"``0P!O`&T`<`!A M`&X`>0!S`"``0P!H`&$`:0!R`&T`80!N`"``80!N`&0`(`!#`&@`:0!E`&8` M(`!%`'@`90!C`'4`=`!I`'8`90`@`$\`9@!F`&D`8P!E`'(`+``@`&$`=``@ M`&$`(`!P`'(`:0!C`&4`(`!O`&8`(``D`#(`-@`N`#``,``@`'``90!R`"`` M`!I`&T`80!T`&4`;`!Y`"``)``T`#0`+@`P M`&T`:0!L`&P`:0!O`&X`(`!A`&X`9``@`&\`9@!F`&4`<@!I`&X`9P`@`&4` M>`!P`&4`;@!S`&4`0`@`'(`90!C`&4`:0!V`&4`9``@`&X`90!T`"``<`!R`&\`8P!E M`&4`9`!S`"``;P!F`"``80!P`'``<@!O`'@`:0!M`&$`=`!E`&P`>0`@`"0` M-P`Y`#0`+@`W`&T`:0!L`&P`:0!O`&X`+@`@`%0`:`!E`"``0P!O`&T`<`!A M`&X`>0`@`'4`0`@`"``(``)``D`(``D`"``(``)`"``-0`Q`#4`+@`Y M`"``(``)``T`#0`-`"``4@!E`'``80!Y`&T`90!N`'0`(`!O`&8`(`!N`&\` M=`!E`"``<`!A`'D`80!B`&P`90`@`&$`;@!D`"``80!C`&,`<@!U`&4`9``@ M`&D`;@!T`&4`<@!E`',`=``@`&D`;@!C`'4`<@!R`&4`9``@`&D`;@`@`&,` M;P!N`&X`90!C`'0`:0!O`&X`(`!W`&D`=`!H`"``<@!E`&,`90!N`'0`(`!A M`&,`<0!U`&D``!P`&4`;@!D`&D`=`!U`'(`90!S`"``(``@``D`"0`@`"``(``)`"``,@`R M`#D`+@`W`"``(``)``T`#0`)`"``(``@``D`"0`@`"``(``)``T`#0`-`"`` M5`!O`'0`80`\`!L@`6P`(``@`"``"0`)`"``)``@`"``"0`@`#<`.0`T`"X` M-P`@`"``"0`-``T`"0`@`"``(``)``D`(``@`"``"0`-``T`(`!$`'4`<@!I M`&X`9P`@`$T`80!R`&,`:``@`#(`,``P`#@`+``@`'0`:`!E`"``0P!O`&T` M<`!A`&X`>0`@`&D`0`@`%0`<@!A`&X`0`@`&@`80!S`"``=`!R`&$`;@!S`&$`8P!T`&D`;P!N M`',`(`!W`&D`=`!H`"``8P!E`'(`=`!A`&D`;@`@`',`:`!A`'(`90!H`&\` M;`!D`&4`<@!S`"``80!N`&0`(`!O`'0`:`!E`'(`(`!R`&4`;`!A`'0`90!D M`"``<`!A`'(`=`!I`&4`0`@`&,`;P!N`',`:0!S M`'0`(`!O`&8`(`!P`'4`<@!C`&@`80!S`&4`@!E`&0`(`!I`&X`(`!E`&$`<@!N`&D`;@!G`',`(`!B`'D` M(`!T`&@`90`@`$,`;P!M`'``80!N`'D`(`!I`&X`(`!!`'4`9P!U`',`=``@ M`#(`,``P`#8`+@`@`%0`:`!E`"``9P!A`&D`;@`@`&D`0`@ M`&4`;@!T`&4`<@!E`&0`(`!I`&X`=`!O`"``80`@`&8`80!C`&D`;`!I`'0` M:0!E`',`(`!L`&4`80!S`&4`(`!W`&D`=`!H`"``80`@`&,`;P!M`'``80!N M`'D`(`!O`'<`;@!E`&0`(`!B`'D`(`!A`"``;0!E`&T`8@!E`'(`(`!O`&8` M(`!I`'0`0!M`&4`;@!T`',`(`!T`&\`(`!B M`&4`(`!M`&$`9`!E`"``=0!N`&0`90!R`"``=`!H`&D`0!E`&$`<@!S`"``90!N`&0`90!D`"``1`!E`&,` M90!M`&(`90!R`#,`,0`L`"``,@`P`#``.``L`"``,@`P`#``-P`@`&$`;@!D M`"``,@`P`#``-@`L`"``<@!E`',`<`!E`&,`=`!I`'8`90!L`'D`+@`@`%0` M:`!E`"``;`!E`&$`0`@`"0`.``N`#,`;0!I`&P` M;`!I`&\`;@`@`&D`;@`@`&,`80!S`&@`+@`@`"``#0`-``T`(`!)`&X`(`!* M`'4`;@!E`"``,@`P`#``-P`L`"``=`!H`&4`(`!#`&\`;0!P`&$`;@!Y`"`` M<`!U`'(`8P!H`&$`0`@`'``=0!R`&,`:`!A M`',`90!D`"``8P!E`'(`=`!A`&D`;@`@`'<`;P!R`&L`:0!N`&<`(`!I`&X` M=`!E`'(`90!S`'0`0`@`"0`-@`W`"X`,P!M`&D`;`!L`&D`;P!N`"X`(`!3`&4` M90`@`$X`;P!T`&4`,@`N`"``(``-``T`#0`@`$P`80!R`&,`;`!A`'D`+``@ M`$P`+@!0`"X`3`!A`'(`:0!A`'0`(`!A`&X`9``@`$,`5P!%`$D`(`!E`&$` M8P!H`"``;P!W`&X`(`!A`"``-0`P`"4`(`!I`&X`=`!E`'(`90!S`'0`(`!I M`&X`(`!,`&$`<@!C`&P`80!Y`"X`(`!,`&$`<@!C`&P`80!Y`"``8P!U`'(` M<@!E`&X`=`!L`'D`(`!O`'<`;@!S`"``=`!W`&4`;`!V`&4`(`!R`&D`9P!S M`"P`(`!O`&X`90`@`&\`9@`@`'<`:`!I`&,`:``@`&@`80!S`"``;@!O`'0` M(`!Y`&4`=``@`&(`90!E`&X`(`!A`',`0`@`&8`:0!N`&$`;@!C`&4`9``@`'0`:`!E`"``80!C`'$` M=0!I`',`:0!T`&D`;P!N`"``8P!O`',`=``@`&\`9@`@`&D`=`!S`"``=`!W M`&4`;`!V`&4`(`!R`&D`9P!S`"``=P!I`'0`:``@`&$`(`!L`&\`80!N`"`` M9@!R`&\`;0`@`&$`(`!T`&@`:0!R`&0`(`!P`&$`<@!T`'D`+``@`',`90!C M`'4`<@!E`&0`(`!B`'D`(`!T`&@`90`@`'``=0!R`&,`:`!A`',`90!D`"`` M<@!I`&<`0`@ M`'``80!R`'0`;@!E`'(`0`@`"0`.``N`#``;0!I`&P` M;`!I`&\`;@`N`"``5`!H`&4`(`!#`&\`;0!P`&$`;@!Y`"``=P!I`&P`;``@ M`'4`0`@`&$`;@!D`"``9@!O`'(`(`!G`&4` M;@!E`'(`80!L`"``8P!O`'(`<`!O`'(`80!T`&4`(`!P`'4`<@!P`&\`0`@`&(`=0!S`&D`;@!E`',`0`@`&\`<`!E M`'(`80!T`&D`;P!N`',`(`!B`'D`(`!T`&@`90`@`$,`;P!M`'``80!N`'D` M(`!A`&X`9``@`'0`:`!I`'(`9``@`'``80!R`'0`:0!E`',`(`!A`&X`9``@ M`&\`=`!H`&4`<@`@`&T`:0!S`&,`90!L`&P`80!N`&4`;P!U`',`(`!O`'`` M90!R`&$`=`!I`&\`;@!S`"X`(`!4`&@`90`@`&$`8P!C`&\`=0!N`'0`:0!N M`&<`(`!P`&\`;`!I`&,`:0!E`',`(`!O`&8`(`!T`&@`90`@`',`90!G`&T` M90!N`'0`@!A`'0` M:0!O`&X`(`!A`&X`9``@`&D`;0!P`&$`:0!R`&T`90!N`'0`+@`@`%,`=0!M M`&T`80!R`&D`>@!E`&0`(`!F`&D`;@!A`&X`8P!I`&$`;``@`&D`;@!F`&\` M<@!M`&$`=`!I`&\`;@`@`&,`;P!N`&,`90!R`&X`:0!N`&<`(`!T`&@`90`@ M`$,`;P!M`'``80!N`'D`0`@ M`&D`0`@`&\`=P!N`&4` M9``@`&$`;@!D`"``:`!A`'8`90`L`"``:@!O`&D`;@!T`&P`>0`@`&$`;@!D M`"``0!M`&4`;@!T`"``=P!I`'0`:``@`&$`;`!L`"``;P!F`"``=`!H`&4` M(`!E`'@`:0!S`'0`:0!N`&<`(`!A`&X`9``@`&8`=0!T`'4`<@!E`"``0!M`&4`;@!T`"``=`!O`"``80!N`'D`(`!E M`'@`:0!S`'0`:0!N`&<`(`!O`'(`(`!F`'4`=`!U`'(`90`@`',`90!C`'4` M<@!E`&0`(`!O`&(`;`!I`&<`80!T`&D`;P!N`',`(`!O`&8`(`!T`&@`90`@ M`',`=0!B`',`:0!D`&D`80!R`'D`(`!G`'4`80!R`&$`;@!T`&\`<@!S`"`` M=`!O`"``=`!H`&4`(`!E`'@`=`!E`&X`=``@`&\`9@`@`'0`:`!E`"``=@!A M`&P`=0!E`"``;P!F`"``=`!H`&4`(`!A`',`0`@`&@`80!S`"``;@!O`'0`(`!P`'(`90!S`&4`;@!T`&4`9``@ M`',`90!P`&$`<@!A`'0`90`@`&8`:0!N`&$`;@!C`&D`80!L`"``80!N`&0` M(`!N`&$`<@!R`&$`=`!I`'8`90`@`&D`;@!F`&\`<@!M`&$`=`!I`&\`;@`@ M`&8`;P!R`"``90!A`&,`:``@`&\`9@`@`'0`:`!E`"``0`@`&<`=0!A`'(`80!N`'0`;P!R`',`(`!B`&4`8P!A`'4`0`@`&$`9`!D`&D`=`!I`&\`;@!A M`&P`(`!I`&X`9@!O`'(`;0!A`'0`:0!O`&X`(`!T`&@`80!T`"``=P!O`'4` M;`!D`"``8@!E`"``;0!A`'0`90!R`&D`80!L`"``:0!N`"``90!V`&$`;`!U M`&$`=`!I`&X`9P`@`'0`:`!E`"``0`@`&<` M=0!A`'(`80!N`'0`;P!R`',`+``@`'``<@!E`'``80!R`&4`9``@`&\`;@`@ M`'0`:`!E`"``90!Q`'4`:0!T`'D`(`!B`&$`0`N`"``5`!H`&4`(`!I`&X`9@!O`'(`;0!A`'0`:0!O`&X`(`!I`',`(`!P M`'(`90!S`&4`;@!T`&4`9``@`&D`;@`@`&$`8P!C`&\`<@!D`&$`;@!C`&4` M(`!W`&D`=`!H`"``=`!H`&4`(`!R`&4`<0!U`&D`<@!E`&T`90!N`'0`0`@`&X`;P!T`"``;@!E`&,`90!S`',`80!R`&D`;`!Y`"``8@!E M`"``:0!N`&0`:0!C`&$`=`!I`'8`90`@`&\`9@`@`'0`:`!E`"``9@!I`&X` M80!N`&,`:0!A`&P`(`!P`&\`0!S`"``8P!A`'``:0!T`&$`;`!I`'H`90!D`"``8P!O`',`=`!S M`"``8P!O`&X``!P`&P`;P!R`&$`=`!I M`&\`;@`@`&$`;@!D`"``1`!E`'8`90!L`&\`<`!M`&4`;@!T`"``00!C`'0` M:0!V`&D`=`!I`&4`0!E`&$`<@!S`"`` M,@`P`#``.``L`"``,@`P`#``-P`@`&$`;@!D`"``,@`P`#``-@`@`&$`<@!E M`"``0`@ M`$8`:0!N`&$`;@!C`&D`80!L`"``4@!E`',`=0!L`'0`0!S`"``;P!P`&4`<@!A`'0`:0!N M`&<`(`!R`&4`@!E`&0`(`!B`&4`;`!O`'<`(``H`&D` M;@`@`'0`:`!O`'4`0!E`&$`<@`@`&$`;0!O`'4`;@!T`"X`(``@`"``_P!"`0@` MH`L```P```#0#0``/`(``(`/``#L`P``TA$``#X&``#V$P``8@@``/(5``!> M"@``@!@``.P,``#^'```:A$``(`>``#L$@``^A\``&84``"`(@``[!8``"PD M``"8&```L"8``!P;``""*```[AP``.\M```[`@``T3```!T%```M,P``>0<` M`,4U```1"@``'3D``&D-``!5.P``H0\``$\^``";$@``\T```#\5```70P`` M8Q<``/5%``!!&@``4T@``)\<``#/2@``&Q\``#I.``!F`@``#%```#@$```( M4P``-`<``/I5```F"@``(E@``$X,```L60``6`T``'!:``"<#@``8W4``'`) M``!UN@``1`X``!<&`0"G&0``,$T!`&,````2G`$`!P\``*_O`0!'`@`````` M```````*````"0@0```&$`!&&,T'P8````8"```+`A@````````````U```` M`````!98`@#V7`(`#0`"``$`#``"`&0`#P`"``$`$0`"````$``(`/RI\=)- M8E`_7P`"``$`*@`"````*P`"````@@`"``$`@``(````````````)0($```` M_P"!``(`P004````%0```(,``@```(0``@```*$`(@`)`&0``0`!``$`1@!8 M`E@"````````X#\```````#@/P$`50`"``@`?0`,``````"V/`\````$`'T` M#``!``,`MA@/````!`!]``P`!`#_`"0)#P````0```(.```````U```````$ M````"`(0`````````/\````````!#P`(`A```0````,`_P````````$/``@" M$``"``````#_`````````0\`"`(0``,````#`/\````````!#P`(`A``!``` M````_P````````$/``@"$``%`````P#_`````````0\`"`(0``8````#`/\` M```````!#P`(`A``!P````,`_P````````$/``@"$``(`````P#_```````` M`0\`"`(0``D``````/\````````!#P`(`A``"@````,`_P````````$/``@" M$``+``````#_`````````0\`"`(0``P````#`/\````````!#P`(`A``#0`` M````_P````````$/``@"$``.`````P#_`````````0\`"`(0``\````#`/\` M```````!#P`(`A``$```````_P````````$/``@"$``1`````P#_```````` M`0\`"`(0`!(````#`/\````````!#P`(`A``$P``````_P````````$/``@" M$``4`````P#_`````````0\`"`(0`!4``````/\````````!#P`(`A``%@`` M``,`_P````````$/``@"$``7``````#_`````````0\`"`(0`!@````#`/\` M```````!#P`(`A``&0````,`_P````````$/``@"$``:`````P#_```````` M`0\`"`(0`!L````#`/\````````!#P`(`A``'```````_P````````$/``@" M$``=`````P#_`````````0\`"`(0`!X``````/\````````!#P`(`A``'P`` M``,`_P````````$/`/T`"@``````%P``````_0`*``$````7``$```#]``H` M`0`!`!<``@```/T`"@`!``(`%P`#````_0`*``$``P`7``0```#]``H``@`` M`!8`!0```/T`"@`#````&``&`````P(.``,``0`9`````#2_%,M!O0`2``,` M`@`9`((?WW$9`(+N(Q@#`/T`"@`$````%@`'````_0`*``4````8``@```"] M`!@`!0`!`!H`8LQ`"QH`(I=S$1H`HN`F(0,`_0`*``8````8``D```"]`!@` M!@`!`!H`0@5_,1H`(G2Q&1H``OI,'0,`_0`*``<````8``H```"]`!@`!P`! M`!H`@FA>!!H`PCB`!!H`(J#X!0,`_0`*``@````8``L````#`@X`"``!`!T` M````/$.!<#`/T`"@`/````&``2````O0`8 M``\``0`:`&*$@"P:`"*_>!8:`(*N;QL#`/T`"@`0````%@`3````_0`*`!$` M```8`!0```"]`!@`$0`!`!H`(BI<11H`X+"D01H`HH%&!@,`_0`*`!(````8 M`!4```"]`!@`$@`!`!H``L[+$!H`(N+##!H`HJ+\!@,`_0`*`!,````6`!8` M``#]``H`%````!@`%P````,"#@`4``$`'0````"*[]/;0;X`"@`4``(`'@`> M``,`_0`*`!4````6`!@```#]``H`%@```!@`&0```+T`&``6``$`'0""B1,: M'0""P+H.'0!"H4,-`P#]``H`%P```!8`&@```/T`"@`8````&``;`````P(. M`!@``0`:`````#";-*G!`P(.`!@``@`:``````"3]8S!`P(.`!@``P`:```` M``!W<6?!_0`*`!D````8`!P````#`@X`&0`!`!T``````-6O8<&]`!(`&0`" M`!T`:!T[P1T`,#@OP0,`_0`*`!H````8`!T````#`@X`&@`!`!T`````M7'& MXD&]`!(`&@`"`!T`HFOW=!T`(D6_4P,`_0`*`!L````8`!X````#`@X`&P`! M`!T`````+J#PT\&]`!(`&P`"`!T`XO>,+!T`(B31"`,`_0`*`!P````6`!\` M``#]``H`'0```!@`(````+T`&``=``$`'0"T.DM!'0#\YU%!'0`P/BY!`P#] M``H`'@```!8`(0```/T`"@`?````&``B`````P(.`!\``0`:`````'#HAJ'! M`P(.`!\``@`:`````*!G\)O!?@(*`!\``P`:`/0><,'7`$0`^`8``&P"#@`X M``X`-@`.`"H`*@`J`$``#@`J``X`*@`.`"H`*@`.`"H`*@`.`"X`#@`J``X` M1``V`#8`-@`.`"H`#@`(`A``(```````_P````````$/``@"$``A`````P#_ M`````````0\`"`(0`"(````#`/\````````!#P`(`A``(P``````_P`````` M``$/``@"$``D`````P#_`````````0\`"`(0`"4````#`/\````````!#P`( M`A``)@````,`_P````````$/``@"$``G``````#_`````````0\`"`(0`"@` M```#`/\````````!#P`(`A``*0````,`_P````````$/``@"$``J``````#_ M`````````0\`"`(0`"L````#`/\````````!#P`(`A``+`````,`_P`````` M``$/``@"$``M``````#_`````````0\`"`(0`"X````#`/\````````!#P`( M`A``+P````,`_P````````$/``@"$``P`````P#_`````````0\`"`(0`#$` M`````/\````````!#P`(`A``,@````,`_P````````$/``@"$``S``````#_ M`````````0\`"`(0`#0````#`/\````````!#P#]``H`(````!8`(P```/T` M"@`A````&``D````O0`8`"$``0`=`+`7*L$=`(#8$$$=```1$L$#`/T`"@`B M````&``E````O0`8`"(``0`:`/!4-4$:`(BM4$$:`+""+4$#`/T`"@`C```` M%@`F````_0`*`"0````8`"<```"]`!@`)``!`!T`L"\V01T`4#\F01T``,_\ M0`,`_0`*`"4````8`"@````#`@X`)0`!`!T`````$`S=H,$#`@X`)0`"`!T` M````0+B)F<%^`@H`)0`#`!T`Q-ALP?T`"@`F````&``I`````P(.`"8``0`= M`````+!!#-;!O0`2`"8``@`=`*(_`Q,=`*(+-@4#`/T`"@`G````%@`J```` M_0`*`"@````8`"L````#`@X`*``!`!T``````+9&@L&]`!(`*``"`!T`@@`* M!QT`V,E700,`_0`*`"D````8`"P````#`@X`*0`!`!T```````QZU<&]`!(` M*0`"`!T`(C_Y"QT`(FZY`P,`_0`*`"H````6`"T```#]``H`*P```!@`+@`` M`+T`&``K``$`'0#(]6Y!'0`D!8-!'0`,1$Y!`P#]``H`+````!@`+P````," M#@`L``$`'0````"0][?5P;T`$@`L``(`'0`BK78"'0#"3<<"`P#]``H`+0`` M`!8`,````/T`"@`N````&``Q````O0`8`"X``0`;``'PC,`;``$`1T`;``$` M-4`#`/T`"@`O````&``R````O0`8`"\``0`;``$`),`;``&`0L`;``$`%,`# M`/T`"@`P````&``S````O0`8`#```0`<``%`C<`<``$`(D`<``$`,$`#`/T` M"@`Q````%@`T````_0`*`#(````8`#4```"]`!@`,@`!`!H`&/\"01H`P)'Z M0!H`\/_Q0`,`_0`*`#,````6`#8```#]``H`-````!@`-P```+T`&``T``$` M&@`8_P)!&@"0W?I`&@"`.O)``P#7`"X`F`0``)`!#@`J`"H`#@`J`$``-@`. M`#8`-@`.`"H`-@`.`"H`*@`J``X`*@`.`#X"$@"V!@````!````````````` M``"@``0`9`!D`!T`#P`#`````````0````````#O``8````W````"@````D( M$```!A``1AC-!\&````&`@``"P(8````````````/P````````#!9`(`]6H" M``T``@`!``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`!`"H` M`@```"L``@```((``@`!`(``"````````````"4"!````/\`@0`"`,$$%``` M`!4```"#``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@```````.`_ M````````X#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`"`+88#P`` M``0`?0`,``,`_P`D"0\````$```"#@``````/P```````P````@"$``````` M``#_`````````0\`"`(0``$````"`/\````````!#P`(`A```@``````_P`` M``````$/``@"$``#`````@#_`````````0\`"`(0``0````"`/\````````! M#P`(`A``!0``````_P````````$/``@"$``&`````@#_`````````0\`"`(0 M``<````"`/\````````!#P`(`A``"```````_P````````$/``@"$``)```` M`@#_`````````0\`"`(0``H``````/\````````!#P`(`A``"P````(`_P`` M``````$/``@"$``,`````@#_`````````0\`"`(0``T````"`/\````````! M#P`(`A``#@````(`_P````````$/``@"$``/``````#_`````````0\`"`(0 M`!`````"`/\````````!#P`(`A``$0````(`_P````````$/``@"$``2```` M`@#_`````````0\`"`(0`!,````"`/\````````!#P`(`A``%`````(`_P`` M``````$/``@"$``5`````@#_`````````0\`"`(0`!8``````/\````````! M#P`(`A``%P````(`_P````````$/``@"$``8``````#_`````````0\`"`(0 M`!D````"`/\````````!#P`(`A``&@````(`_P````````$/``@"$``;```` M`@#_`````````0\`"`(0`!P````"`/\````````!#P`(`A``'0``````_P`` M``````$/``@"$``>`````@#_`````````0\`"`(0`!\````"`/\````````! M#P#]``H``````!<`.````/T`"@`!````%P`Y````_0`*``$``0`7`#H```#] M``H``0`"`!<`.P```/T`"@`"````%@`\````_0`*``,````8`#T```"]`!(` M`P`!`"(``."#0"(`X-/N0`(`_0`*``0````8`#X```#]``H`!``!`"$`/P`` M`/T`"@`$``(`(0`_````_0`*``4````6`$````#]``H`!@```!@`00```+T` M$@`&``$`&@"@%?E`&@!0(?=``@#]``H`!P```!@`0@```+T`$@`'``$`&@`` MM[A`&@"`C--``@#]``H`"````!8`0P```/T`"@`)````&`!$````O0`2``D` M`0`:`+B,"$$:`(!QU4`"`/T`"@`*````%@!%````_0`*``L````8`$8```"] M`!(`"P`!`!T``,RL0!T``#*O0`(`_0`*``P````8`$<```"]`!(`#``!`!H` M`````!H``'"<0`(`_0`*``T````8`$@```"]`!(`#0`!`!H`X#?D0!H`P$S4 M0`(`_0`*``X````8`$D```"]`!(`#@`!`!T`)+D501T`H*0+00(`_0`*``\` M```6`$H```#]``H`$````!@`2P```/T`"@`0``$`(0`_````_0`*`!```@`A M`#\```#]``H`$0```!@`3````+T`$@`1``$`&@"B9QT!&@!.W*T``@#]``H` M$@```!@`30```+T`$@`2``$`&@"05`I!&@#0L`]!`@#]``H`$P```!@`3@`` M`+T`$@`3``$`&@"8%$+!&@#P,0S!`@#]``H`%````!@`3P```+T`$@`4``$` M&@`J[9D`&@"^FZ\``@#]``H`%0```!@`4````+T`$@`5``$`&@#VY"<`&@!, M%QQ!`@#]``H`%@```!8`40```/T`"@`7````&`!2````O0`2`!<``0`:`"`\ MYD`:``#@<$`"`/T`"@`8````%@!3````_0`*`!D````8`%0```"]`!(`&0`! M`!H``,BW0!H``!2_0`(`_0`*`!H````8`%4```"]`!(`&@`!`!H`8`G@0!H` M`.O>0`(`_0`*`!L````8`%8```"]`!(`&P`!`!H`P!GC0!H`@##:0`(`_0`* M`!P````8`%<```"]`!(`'``!`!T`2A;?`!T`FI?=``(`_0`*`!T````6`%@` M``#]``H`'@```!@`60```+T`$@`>``$`'0``)=!`'0``^\U``@#]``H`'P`` M`!@`6@```/T`"@`?``$`(0`_````_0`*`!\``@`A`#\```#7`$0`4@8``&P" M#@`J``X`)``J``X`)``D``X`)``.`"0`)``D`"0`#@`J`"0`)``D`"0`)``. M`"0`#@`D`"0`)``D``X`)``(`A``(```````_P````````$/``@"$``A```` M`@#_`````````0\`"`(0`"(````"`/\````````!#P`(`A``(P``````_P`` M``````$/``@"$``D`````@#_`````````0\`"`(0`"4````"`/\````````! M#P`(`A``)@````(`_P````````$/``@"$``G`````@#_`````````0\`"`(0 M`"@``````/\````````!#P`(`A``*0````(`_P````````$/``@"$``J```` M`@#_`````````0\`"`(0`"L````"`/\````````!#P`(`A``+```````_P`` M``````$/``@"$``M`````@#_`````````0\`"`(0`"X````"`/\````````! M#P`(`A``+P````(`_P````````$/``@"$``P``````#_`````````0\`"`(0 M`#$````"`/\````````!#P`(`A``,@``````_P````````$/``@"$``S```` M`@#_`````````0\`"`(0`#0``````/\````````!#P`(`A``-0````(`_P`` M``````$/``@"$``V``````#_`````````0\`"`(0`#<````"`/\````````! M#P`(`A``.```````_P````````$/``@"$``Y`````@#_`````````0\`"`(0 M`#H````"`/\````````!#P`(`A``.P``````_P````````$/``@"$``\```` M`@#_`````````0\`"`(0`#T````"`/\````````!#P`(`A``/@````(`_P`` M``````$/`/T`"@`@````%@!;````_0`*`"$````8`$$```"]`!(`(0`!`!H` M!%P601H`2$X*00(`_0`*`"(````8`$(```"]`!(`(@`!`!H``,!L0!H``+!X M0`(`_0`*`",````6`%P```#]``H`)````!@`4@```+T`$@`D``$`&@``\K-` M&@```````@#]``H`)0```!@`70```+T`$@`E``$`&@``,'%`&@```(M``@#] M``H`)@```!@`7@```+T`$@`F``$`&@``H,M`&@```````@#]``H`)P```!@` M7P```+T`$@`G``$`'0``DQA!'0!050Q!`@#]``H`*````!8`8````/T`"@`I M````&`!A````O0`2`"D``0`=``#_04$=`"XZ0``"`/T`"@`J````&`!B```` MO0`2`"H``0`:`(!=QT`:`$!LT$`"`/T`"@`K````&`!2````O0`2`"L``0`: M``!NK$`:```````"`/T`"@`L````%@!C````_0`*`"T````8`%T```"]`!(` M+0`!`!T`$*'T0!T`@"[L0`(`_0`*`"X````8`&0```"]`!(`+@`!`!H````` M`!H`P!CH0`(`_0`*`"\````8`&4```"]`!(`+P`!`!T`#J>N`!T`('TU00(` M_0`*`#`````6`&8```#]``H`,0```!@`)````+T`$@`Q``$`'0```#Y`'0`` M0+)``@#]``H`,@```!8`9P```/T`"@`S````&`!H````O0`2`#,``0`:```` M```:`&R"&T$"`/T`"@`T````%@!I````_0`*`#4````8`&H```"]`!(`-0`! M`!H``````!H```````(`_0`*`#8````6`&L```#]``H`-P```!@`;````+T` M$@`W``$`&@``8&1`&@``@&%``@#]``H`.````!8`;0```/T`"@`Y````&`!N M````O0`2`#D``0`=`*J!A``=`(;I9@`"`/T`"@`Z````&`!O````O0`2`#H` M`0`:``#ATL`:`(`DTL`"`/T`"@`[````%@!P````_0`*`#P````8`'$```"] M`!(`/``!`!T`V+DTP1T``#GX0`(`_0`*`#T````8`'(```"]`!(`/0`!`!T` MQFXP`!T`KM=K``(`_0`*`#X````8`',```"]`!(`/@`!`"(`2A;?`"(`FI?= M``(`UP!"`.P%``!8`@X`)``D``X`)``D`"0`)``.`"0`)``D``X`)``D`"0` M#@`D``X`)``.`"0`#@`D``X`)``D``X`)``D`#X"$@"V``````!````````` M``````"@``0`9`!D`!T`#P`#`````````0````````#O``8````W````"@`` M``D($```!A``1AC-!\&````&`@``"P(4````````````#P````````#*;P(` M#0`"``$`#``"`&0`#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`" M````*P`"````@@`"``$`@``(````````````)0($````_P"!``(`P004```` M%0```(,``@```(0``@```*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\` M``````#@/P$`50`"``@`?0`,``````"V/`\````$`'T`#``!``(`MA@/```` M!`!]``P``P#_`"0)#P````0```(.```````/```````#````"`(0```````` M`/\````````!#P`(`A```0````(`_P````````$/``@"$``"``````#_```` M`````0\`"`(0``,````"`/\````````!#P`(`A``!`````(`_P````````$/ M``@"$``%`````@#_`````````0\`"`(0``8````"`/\````````!#P`(`A`` M!P````(`_P````````$/``@"$``(`````@#_`````````0\`"`(0``D````" M`/\````````!#P`(`A``"@````(`_P````````$/``@"$``+`````@#_```` M`````0\`"`(0``P````"`/\````````!#P`(`A``#0````(`_P````````$/ M``@"$``.`````@#_`````````0\`_0`*```````7`'0```#]``H``0```!<` M.0```/T`"@`!``$`%P`Z````_0`*``$``@`7`#L```#]``H``@```!8`=0`` M`/T`"@`#````&`!V`````P(.``,``0`<`/RI\=)-8E`_`P(.``,``@`<`/RI M\=)-8E`__0`*``0````8`'<```"]`!(`!``!`!H``(*D0!H``(*D0`(`_0`* M``4````8`'@```"]`!(`!0`!`!H``````!H``!"A0`(`_0`*``8````8`'D` M``"]`!(`!@`!`!H``````!H``!"A0`(`_0`*``<````8`'H````#`@X`!P`! M`!L`_*GQTDUB4#\#`@X`!P`"`!L`_*GQTDUB4#_]``H`"````!@`>P```+T` M$@`(``$`&@#@(>=`&@#@(>=``@#]``H`"0```!@`?````+T`$@`)``$`&@`` M````&@```````@#]``H`"@```!@`?0```+T`$@`*``$`&@``````&@`````` M`@#]``H`"P```!@`?@````,"#@`+``$`&P#\J?'236)0/P,"#@`+``(`&P#\ MJ?'236)0/_T`"@`,````&`!_````O0`2``P``0`:``!J&$$:``!J&$$"`/T` M"@`-````&`"`````O0`2``T``0`:`&!N!$$:`!A^`4$"`/T`"@`.````&`"! M````O0`2``X``0`:`/!$!$$:`)A0`4$"`-<`(@!,`P``&`$.`"H`#@`R`"0` M)``D`#(`)``D`"0`,@`D`"0`/@(2`+8``````$```````````````*``!`!D M`&0`'0`/``,````````!`````````.\`!@```#<````*````"0@0```&$`!& M&,T'P8````8"```+`AP```````````!1`````````(]W`@`Q?@(`Z8$"``T` M`@`!``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`!`"H``@`` M`"L``@```((``@`!`(``"````````````"4"!````/\`@0`"`,$$%````!4` M``"#``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@```````.`_```` M````X#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`#`+88#P````0` M?0`,``0`_P`D"0\````$```"#@``````40``````!`````@"$`````````#_ M`````````0\`"`(0``$````#`/\````````!#P`(`A```@``````_P`````` M``$/``@"$``#`````P#_`````````0\`"`(0``0``````/\````````!#P`( M`A``!0````,`_P````````$/``@"$``&`````P#_`````````0\`"`(0``<` M```#`/\````````!#P`(`A``"```````_P````````$/``@"$``)`````P#_ M`````````0\`"`(0``H``````/\````````!#P`(`A``"P````,`_P`````` M``$/``@"$``,``````#_`````````0\`"`(0``T````"`/\````````!#P`( M`A``#@``````_P````````$/``@"$``/`````P#_`````````0\`"`(0`!`` M`````/\````````!#P`(`A``$0````,`_P````````$/``@"$``2`````P#_ M`````````0\`"`(0`!,``````/\````````!#P`(`A``%`````,`_P`````` M``$/``@"$``5``````#_`````````0\`"`(0`!8````#`/\````````!#P`( M`A``%P````,`_P````````$/``@"$``8``````#_`````````0\`"`(0`!D` M```#`/\````````!#P`(`A``&@``````_P````````$/``@"$``;`````P#_ M`````````0\`"`(0`!P````#`/\````````!#P`(`A``'0``````_P`````` M``$/``@"$``>`````P#_`````````0\`"`(0`!\````#`/\````````!#P#] M``H``````!<`@@```/T`"@`!````%P`Y````_0`*``$``0`7``(```#]``H` M`0`"`!<``P```/T`"@`!``,`%P`$````_0`*``(````6`(,```#]``H``P`` M`!@`+````+T`&``#``$`&0``_C7!&0"@A>A`&0"`@LY``P#]``H`!````!8` MA````/T`"@`%````&`"%````?@(*``4``0`:``!0FT!^`@H`!0`#`!H``,"C M0/T`"@`&````&`"&````O0`8``8``0`=`%0.%D$=`"BY"T$=`$`IZT`#`/T` M"@`'````&``7````?@(*``<``0`=`*;[<0"^``H`!P`"`!X`'@`#`/T`"@`( M````%@"'````_0`*``D````8`(@```"]`!@`"0`!`!H``/>U0!H``#_/0!H` M`+!R0`,`_0`*``H````6`(D```#]``H`"P```!@`9````+T`&``+``$`&@!` M->?`&@#`/MQ`&@``P'5``P#]``H`#````!8`%@```/T`"@`-````&`"*```` M?@(*``T``@`:``!@:4#]``H`#@```!8`BP```/T`"@`/````&`",````O0`8 M``\``0`:`-A3"L$:`("?V<`:``!8G4`#`/T`"@`0````%@"-````_0`*`!$` M```8`!P```"]`!@`$0`!`!T`@!S"P!T``,2;P!T``/B/P`,`_0`*`!(````8 M`(X```"]`!@`$@`!`!H``"!YP!H``"B5P!H``.!BP`,`_0`*`!,````6`(\` M``#]``H`%````!@`D````+T`&``4``$`&@``V)7`&@``%+'`&@``X(W``P#] M``H`%0```!8`D0```/T`"@`6````&`"2````O0`8`!8``0`=``!8TD`=```B MO$`=```LP4`#`/T`"@`7````&``D````O0`8`!<``0`:``"XBD`:``!`<<`: M``"` M````&`"8````O0`8`!X``0`:``#`7T`:``#-L\`:``"FH,`#`/T`"@`?```` M&`"9````O0`8`!\``0`=`*`9Y$`=`#!B\D`=``"'QT`#`-<`1`!4!@``;`(. M`#@`#@`J``X`*@`J`"H`#@`J``X`*@`.`!P`#@`J``X`*@`J``X`*@`.`"H` M*@`.`"H`#@`J`"H`#@`J``@"$``@`````0#_`````````0\`"`(0`"$````# M`/\````````!#P`(`A``(@``````_P````````$/``@"$``C`````P#_```` M`````0\`"`(0`"0``````/\````````!#P`(`A``)0````,`_P````````$/ M``@"$``F``````#_`````````0\`"`(0`"<````#`/\````````!#P`(`A`` M*`````,`_P````````$/``@"$``I``````#_`````````0\`"`(0`"H````# M`/\````````!#P`(`A``*P````$`_P````````$/``@"$``L``````#_```` M`````0\`"`(0`"T````"`/\````````!#P`(`A``+@````,`_P````````$/ M``@"$``O`````P#_`````````0\`"`(0`#`````#`/\````````!#P`(`A`` M,0``````_P````````$/``@"$``R`````P#_`````````0\`"`(0`#,````` M`/\````````!#P`(`A``-`````,`_P````````$/``@"$``U``````#_```` M`````0\`"`(0`#8````"`/\````````!#P`(`A``-P``````_P````````$/ M``@"$``X`````P#_`````````0\`"`(0`#D``````/\````````!#P`(`A`` M.@````,`_P````````$/``@"$``[`````P#_`````````0\`"`(0`#P````! M`/\````````!#P`(`A``/0``````_P````````$/``@"$``^`````P#_```` M`````0\`"`(0`#\``````/\````````!#P#]``H`(````!@`F@```'X""@`@ M``$`&@``H,M`_0`*`"$````8`)L```"]`!@`(0`!`!T`UEDC`!T`,-$501T` M4''P0`,`_0`*`"(````6`)P```#]``H`(P```!@`G0````,"#@`C``$`'0`` M````KV@_P;T`$@`C``(`'0!0BS/!'0"TM1+!`P#]``H`)````!8`G@```/T` M"@`E````&`"?`````0(&`"4``0`>`'X""@`E``(`'0"@>OS``P(.`"4``P`= M``````![%3#!_0`*`"8````6`*````#]``H`)P```!@`H0```+T`&``G``$` M'0#H80-!'0``I<%`'0"`1]-``P#]``H`*````!@`H@```+X`"@`H``$`'@`> M``(`?@(*`"@``P`=``"*HD#]``H`*0```!8`HP```/T`"@`J````&`"D```` M?@(*`"H``0`:``#@E\!^`@H`*@`#`!H``'BJP/T`"@`K````&`"E````?@(* M`"L``0`:``!,O<#]``H`+````!8`I@```/T`"@`M````&`"G````?@(*`"T` M`@`:```LQ$#]``H`+@```!@`J````+T`&``N``$`&@``:(C`&@``%;W`&@`` M;)#``P#]``H`+P```!@`J0```'X""@`O``,`&@``BJ)`_0`*`#`````8`*H` M```#`@X`,``!`!T``````,,B/<$#`@X`,``"`!T``````&TD-<$#`@X`,``# M`!T``````)=T-,']``H`,0```!8`JP```/T`"@`R````&`"L````O0`8`#(` M`0`=`,9_Q@`=`%9%40`=`%H%30`#`/T`"@`S````%@"M````_0`*`#0````8 M`*X````#`@X`-``!`!T``````-ZK/<$#`@X`-``"`!T``````/M3-,%^`@H` M-``#`!T`6*L?P?T`"@`U````%@"O````_0`*`#8````8`+````"]`!(`-@`! M`!H``"31P!H`($7@P`(`_0`*`#<````6`+$```#]``H`.````!@`L@```+T` M&``X``$`&@``>;7`&@```&+`&@``4(/``P#]``H`.0```!8`LP```/T`"@`Z M````&`"T````O0`2`#H``@`:`"0",4$:`(":^$`#`/T`"@`[````&`"U```` M?@(*`#L``P`:`/C2&D']``H`/````!@`M@```'X""@`\``$`&@``\K%`_0`* M`#T````6`+<```#]``H`/@```!@`N````+T`&``^``$`'0``PJO`'0``])G` M'0``0'_``P#]``H`/P```!8`N0```-<`1`!:!@``;`(<`"H`#@`V``X`.``. M`"H`*@`.`"H`'``.`!P`*@`<`$0`#@`J``X`0``.`"0`#@`J``X`)``<`!P` M#@`J``@"$`!``````P#_`````````0\`"`(0`$$````#`/\````````!#P`( M`A``0@````,`_P````````$/``@"$`!#`````P#_`````````0\`"`(0`$0` M```#`/\````````!#P`(`A``10``````_P````````$/``@"$`!&`````P#_ M`````````0\`"`(0`$<````#`/\````````!#P`(`A``2```````_P`````` M``$/``@"$`!)`````0#_`````````0\`"`(0`$H````"`/\````````!#P`( M`A``2P``````_P````````$/``@"$`!,`````P#_`````````0\`"`(0`$T` M`````/\````````!#P`(`A``3@````,`_P````````$/``@"$`!/`````P#_ M`````````0\`"`(0`%`````#`/\````````!#P#]``H`0````!@`N@```+T` M&`!```$`&@``?-'`&@``Z]G`&@"`PL[``P#]``H`00```!@`NP```+T`&`!! M``$`'0"N8$T`'0"<#C!!'0`.3$T``P#]``H`0@```!@`O````+T`&`!"``$` M'0!@A.[`'0#`GM=`'0``?[K``P#]``H`0P```!@`O0```+T`&`!#``$`&@#@ MT^Y`&@"`!.-`&@!@5.9``P#]``H`1````!@`O@```+T`&`!$``$`&@``X(-` M&@#@T^Y`&@"`!.-``P#]``H`10```!8`OP```/T`"@!&````&`#`````O0`8 M`$8``0`=`'@#`$$=`/!F]$`=`(!SS4`#`/T`"@!'````&`#!````O0`8`$<` M`0`=```>H4`=``"&HD`=``#\F$`#`/T`"@!(````%@#"````_0`*`$D````8 M`,,```!^`@H`20`!`!H`@"C]0/T`"@!*````&`#$````?@(*`$H``@`:``!^ MP4#]``H`2P```!8`Q0```/T`"@!,````&`#&````O0`2`$P``@`:``!@ET`: M``"?LT`#`/T`"@!-````%@#'````_0`*`$X````8`,@```"]`!@`3@`!`!H` M`-2]0!H``#260!H``*!C0`,`_0`*`$\````8`,D```!^`@H`3P`#`!H`X-<, M0?T`"@!0````&`#*````?@(*`%```P`9`'`D$T'7`"8`<`,``$`!*@`J`"H` M*@`J``X`*@`J``X`'``<``X`)``.`"H`'``^`A(`M@``````0``````````` M````H``$`&0`9``=``\``P````````$`````````[P`&````-P````H````) M"!````80`$88S0?!@```!@(```L"%`````````````0`````````)(0"``T` M`@`!``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\``@`!`"H``@`` M`"L``@```((``@`!`(``"````````````"4"!````/\`@0`"`,$$%````!4` M``"#``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@```````.`_```` M````X#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`#`+88#P````0` M?0`,``0`_P`D"0\````$```"#@``````!```````!`````@"$`````````#_ M`````````0\`"`(0``$````#`/\````````!#P`(`A```@``````_P`````` M``$/``@"$``#`````P#_`````````0\`_0`*```````7`,L```#]``H``0`` M`!<`.0```/T`"@`!``$`%P`"````_0`*``$``@`7``,```#]``H``0`#`!<` M!````/T`"@`"````%@#,````_0`*``,````8`,T```"]`!@``P`!`!D````` M`!D``````!D``)O40`,`UP`,`,X````\``X`.``.`#X"$@"V``````!````` M``````````"@``0`9`!D`!T`#P`#`````````0````````#O``8````W```` M"@````D($```!A``1AC-!\&````&`@``"P(8````````````*`````````!7 MC0(`IX\"``T``@`!``P``@!D``\``@`!`!$``@```!``"`#\J?'236)0/U\` M`@`!`"H``@```"L``@```((``@`!`(``"````````````"4"!````/\`@0`" M`,$$%````!4```"#``(```"$``(```"A`"(`"0!D``$``0`!`$8`6`)8`@`` M`````.`_````````X#\!`%4``@`(`'T`#```````MCP/````!`!]``P``0`& M`+88#P````0`?0`,``<`_P`D"0\````$```"#@``````*```````!P````@" M$`````````#_`````````0\`"`(0``$````&`/\````````!#P`(`A```@`` M``8`_P````````$/``@"$``#``````#_`````````0\`"`(0``0````&`/\` M```````!#P`(`A``!0````4`_P````````$/``@"$``&````!@#_```````` M`0\`"`(0``<````&`/\````````!#P`(`A``"`````8`_P````````$/``@" M$``)``````#_`````````0\`"`(0``H````&`/\````````!#P`(`A``"P`` M``8`_P````````$/``@"$``,``````#_`````````0\`"`(0``T````&`/\` M```````!#P`(`A``#@````8`_P````````$/``@"$``/``````#_```````` M`0\`"`(0`!`````&`/\````````!#P`(`A``$0````8`_P````````$/``@" M$``2````!@#_`````````0\`"`(0`!,``````/\````````!#P`(`A``%``` M``8`_P````````$/``@"$``5````!@#_`````````0\`"`(0`!8````&`/\` M```````!#P`(`A``%P``````_P````````$/``@"$``8````!@#_```````` M`0\`"`(0`!D````&`/\````````!#P`(`A``&@````8`_P````````$/``@" M$``;``````#_`````````0\`"`(0`!P````&`/\````````!#P`(`A``'0`` M``8`_P````````$/``@"$``>``````#_`````````0\`"`(0`!\````&`/\` M```````!#P#]``H``````!<`S@```/T`"@`!````%P`Y````_0`*``$``0`7 M`,\```#]``H``0`"`!<`T````/T`"@`!``,`%P#1````_0`*``$`!``7`-(` M``#]``H``0`%`!<`TP```/T`"@`!``8`%P#4````_0`*``(````8`-4```"] M`"H``@`!`!D``$!20!D`@,8-01D`P.W0P!D`T-KR0!D`@!+-P!D`J*,1008` M_0`*``,````6`-8```#]``H`!````!@`UP```'X""@`$``(`&@``'JI`?@(* M``0`!@`:```>JD#]``H`!0```!@`V````'X""@`%``(`&@"`$LW`?@(*``4` M!0`:`(`2S4#]``H`!@```!@`V0```+T`$@`&``$`&@```"I`&@!XUPQ!`@!^ M`@H`!@`&`!H`X-<,0?T`"@`'````&`#:````O0`2``<``0`:````&$`:`##) M]T`"`'X""@`'``8`&@"0R?=`_0`*``@````8`,@```!^`@H`"``$`!H``*!C MP'X""@`(``8`&@``H&/`_0`*``D````6`-L```#]``H`"@```!@`W````'X" M"@`*``,`&@``0'_`?@(*``H`!@`:``!`?\#]``H`"P```!@`D@````$"!@`+ M``$`'@!^`@H`"P`"`!T``"S!0+X`#``+``,`'@`>`!X`!0!^`@H`"P`&`!T` M`"S!0/T`"@`,````%@#=````_0`*``T````8`"P```"^``P`#0`!`!X`'@`> M``,`?@(*``T`!``=`(""SD`!`@8`#0`%`!X`?@(*``T`!@`=`(""SD#]``H` M#@```!@`W@```+T`'@`.``$`&@```%=`&@`HBR%!&@#`:M'`&@!0H?9`!`!^ M`@H`#@`&`!H`M-0C0?T`"@`/````%@#6````_0`*`!`````8`-H```"]`!(` M$``!`!H```!)0!H`BO-#``(`?@(*`!``!@`:`!3],$']``H`$0```!@`WP`` M`+T`$@`1``$`&@```/"_&@``V<+``@!^`@H`$0`&`!H`@-G"P/T`"@`2```` M&`#(````?@(*`!(`!``:```TEL!^`@H`$@`&`!H``#26P/T`"@`3````%@#; M````_0`*`!0````8`-P```!^`@H`%``!`!H```#POWX""@`4``,`&@``\)G` M?@(*`!0`!@`:``#TF<#]``H`%0```!@`X````+T`$@`5``(`&@``L'=`&@`` MJ(Q``P!^`@H`%0`&`!H``$"40/T`"@`6````&`"2`````0(&`!8``0`>`'X" M"@`6``(`'0``(KQ`O@`,`!8``P`>`!X`'@`%`'X""@`6``8`'0``(KQ`_0`* M`!<````6`-T```#]``H`&````!@`+````+X`#``8``$`'@`>`!X``P!^`@H` M&``$`!T`H(7H0`$"!@`8``4`'@!^`@H`&``&`!T`H(7H0/T`"@`9````&`#A M````?@(*`!D`!``:`*"DY,!^`@H`&0`&`!H`H*3DP/T`"@`:````&`#B```` MO0`>`!H``0`:``"`84`:`(;I9@`:`(`DTL`:```Y^$`$`'X""@`:``8`&@"N MUVL`_0`*`!L````6`-8```#]``H`'````!@`R````'X""@`<``0`&@``U+W` M?@(*`!P`!@`:``#4O<#]``H`'0```!@`XP```+T`$@`=``$`&@```#=`&@!@ M^1M!`@!^`@H`'0`&`!H`O/D;0?T`"@`>````%@#;````_0`*`!\````8`-P` M``!^`@H`'P`#`!H``,*KP'X""@`?``8`&@``PJO`UP!$`-P'``!L`@X`8@`\ M``X`*@`J`#(`,@`J``X`*@!$``X`1``^``X`,@`R`"H`#@`X`#(`1``.`$0` M*@`^``X`*@`R``X`"`(0`"`````&`/\````````!#P`(`A``(0````8`_P`` M``````$/``@"$``B``````#_`````````0\`"`(0`",````&`/\````````! M#P`(`A``)```````_P````````$/``@"$``E````!@#_`````````0\`"`(0 M`"8````&`/\````````!#P`(`A``)P````8`_P````````$/`/T`"@`@```` M&`#@````O0`2`"```@`:``"^J$`:``#>I4`#`'X""@`@``8`&@``3K=`_0`* M`"$````8`)(````!`@8`(0`!`!X`?@(*`"$``@`=``!8TD"^``P`(0`#`!X` M'@`>``4`?@(*`"$`!@`=``!8TD#]``H`(@```!8`Y````/T`"@`C````&`"V M````?@(*`",``@`:``#RL4!^`@H`(P`&`!H``/*Q0/T`"@`D````%@#=```` M_0`*`"4````8`"P```"^``P`)0`!`!X`'@`>``,`?@(*`"4`!``=``#^-<$! M`@8`)0`%`!X`?@(*`"4`!@`=``#^-<']``H`)@```!@`X0```'X""@`F``0` M&@``RL#`?@(*`"8`!@`:``#*P,#]``H`)P```!@`Y0```+T`'@`G``$`&0`` M8&1`&0"J@80`&0``X=+`&0#8N33!!`!^`@H`)P`&`!D`QFXP`-<`%``(`@`` MC``R`$0`#@`J``X`1``J`#X"$@"V``````!```````````````"@``0`9`!D M`!T`#P`#`````````0````````#O``8````W````"@````D($```!A``1AC- M!\&````&`@``"P(4````````````!`````````"\D0(`#0`"``$`#``"`&0` M#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`"````*P`"````@@`" M``$`@``(````````````)0($````_P"!``(`P004````%0```(,``@```(0` M`@```*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\```````#@/P$`50`" M``@`?0`,``````"V/`\````$`'T`#``!``(`MA@/````!`!]``P``P#_`"0) M#P````0```(.```````$```````#````"`(0`````````/\````````!#P`( M`A```0````(`_P````````$/``@"$``"``````#_`````````0\`"`(0``,` M```"`/\````````!#P#]``H``````!<`Y@```/T`"@`!````%P#G````_0`* M``$``0`7`.@```#]``H``0`"`!<`Z0```/T`"@`"````%@#J````_0`*``,` M```8`.L```"]`!(``P`!`!D````00!D````00`(`UP`,`+H````\``X`*@`. M`#X"$@"V``````!```````````````"@``0`9`!D`!T`#P`#`````````0`` M``````#O``8````W````"@````D($```!A``1AC-!\&````&`@``"P(4```` M````````#P````````##E0(`#0`"``$`#``"`&0`#P`"``$`$0`"````$``( M`/RI\=)-8E`_7P`"``$`*@`"````*P`"````@@`"``$`@``(```````````` M)0($````_P"!``(`P004````%0```(,``@```(0``@```*$`(@`)`&0``0`! M``$`1@!8`E@"````````X#\```````#@/P$`50`"``@`?0`,``````"V/`\` M```$`'T`#``!``$`MA@/````!`!]``P``@#_`"0)#P````0```(.```````/ M```````"````"`(0`````````/\````````!#P`(`A```0````$`_P`````` M``$/``@"$``"``````#_`````````0\`"`(0``,````!`/\````````!#P`( M`A``!`````$`_P````````$/``@"$``%`````0#_`````````0\`"`(0``8` M```!`/\````````!#P`(`A``!P````$`_P````````$/``@"$``(`````0#_ M`````````0\`"`(0``D````!`/\````````!#P`(`A``"@````$`_P`````` M``$/``@"$``+`````0#_`````````0\`"`(0``P````!`/\````````!#P`( M`A``#0````$`_P````````$/``@"$``.`````0#_`````````0\`_0`*```` M```7`.P```#]``H``0```!<`[0```/T`"@`!``$`%P`"````_0`*``(````6 M`.X```#]``H``P```!@`[P```/T`"@`#``$`(0#P````_0`*``0````8`/$` M``#]``H`!``!`"$`\@```/T`"@`%````&`#S````_0`*``4``0`A`/0```#] M``H`!@```!@`]0```/T`"@`&``$`(0#V````_0`*``<````8`/<```#]``H` M!P`!`"$`^````/T`"@`(````&`#Y````_0`*``@``0`A`/H```#]``H`"0`` M`!@`^P```/T`"@`)``$`(0#\````_0`*``H````8`/T```#]``H`"@`!`"$` M_````/T`"@`+````&`#^````_0`*``L``0`A`/P```#]``H`#````!@`_P`` M`/T`"@`,``$`(0```0``_0`*``T````8``$!``!^`@H`#0`!`!D````@0/T` M"@`.````&``"`0``?@(*``X``0`:`+X,]R?7`"(`M`(``!@!#@`<``X`'``< M`!P`'``<`!P`'``<`!P`'``<`#X"$@"V``````!```````````````"@``0` M9`!D`!T`#P`#`````````0````````#O``8````W````"@````D($```!A`` M1AC-!\&````&`@``"P(4````````````'0````````!\G`(`#0`"``$`#``" M`&0`#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`"````*P`"```` M@@`"``$`@``(````````````)0($````_P"!``(`P004````%0```(,``@`` M`(0``@```*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\```````#@/P$` M50`"``@`?0`,``````"V/`\````$`'T`#``!``$`MA@/````!`!]``P``@#_ M`"0)#P````0```(.```````=```````"````"`(0`````````/\````````! M#P`(`A```0````$`_P````````$/``@"$``"``````#_`````````0\`"`(0 M``,````!`/\````````!#P`(`A``!`````$`_P````````$/``@"$``%```` M`0#_`````````0\`"`(0``8````!`/\````````!#P`(`A``!P````$`_P`` M``````$/``@"$``(`````0#_`````````0\`"`(0``D````!`/\````````! M#P`(`A``"@````$`_P````````$/``@"$``+`````0#_`````````0\`"`(0 M``P````!`/\````````!#P`(`A``#0````$`_P````````$/``@"$``.```` M`0#_`````````0\`"`(0``\````!`/\````````!#P`(`A``$`````$`_P`` M``````$/``@"$``1`````0#_`````````0\`"`(0`!(````!`/\````````! M#P`(`A``$P````$`_P````````$/``@"$``4`````0#_`````````0\`"`(0 M`!4````!`/\````````!#P`(`A``%@````$`_P````````$/``@"$``7```` M`0#_`````````0\`"`(0`!@````!`/\````````!#P`(`A``&0````$`_P`` M``````$/``@"$``:`````0#_`````````0\`"`(0`!L````!`/\````````! M#P`(`A``'`````$`_P````````$/`/T`"@``````%P`#`0```0(&``$````7 M`/T`"@`!``$`%P`"````_0`*``(````6``0!``#]``H``P```!@`!0$``/T` M"@`#``$`(0`&`0``_0`*``0````8`` XML 19 R7.xml IDEA: Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) 1.0.0.3 false Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) In Millions false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 0 sd_ConsolidatedStatementsChangesInStockholdersEquityParenthetical sd false na duration string Consolidated Statements of Changes in Stockholders Equity (Parenthetical) false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false Consolidated Statements of Changes in Stockholders Equity (Parenthetical) false 3 1 us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts us-gaap true debit duration monetary Direct costs (e.g., legal and accounting fees) associated with issuing stock that is deducted from additional paid in... false false false false false false false false false 1 true true 4500000 4 false false 2 true true 3900000 4 false false Direct costs (e.g., legal and accounting fees) associated with issuing stock that is deducted from additional paid in capital. Also includes any direct costs associated with stock issues under a shelf registration. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Technical Practice Aid (TPA) -Number 4110 -Paragraph 1, 10 false false 2 2 false Millions UnKnown UnKnown false true