0000315852
2009-04-01 2009-06-30
0000315852
2008-04-01 2008-06-30
0000315852
2008-01-01 2008-12-31
0000315852
2007-12-31 0000315852
2008-01-01 2008-06-30
0000315852
2009-06-30 0000315852
2008-12-31 0000315852
2008-06-30 0000315852
2009-07-20 0000315852
2009-01-01 2009-06-30
iso4217:USD xbrli:shares
xbrli:shares
iso4217:USD
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 1 - us-gaap:NatureOfOperations--> <!-- XBRL,ns --> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="center"
style="font-size: 10pt; margin-top: 0pt"><b></b></div>
<div align="left"> </div> <div align="center" style="font-size:
10pt; margin-top: 0pt"><b></b> </div> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(1) ORGANIZATION
AND NATURE OF BUSINESS</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     We
are engaged in the exploration, development and acquisition of oil and gas
properties primarily in the Southwestern, Appalachian and Gulf Coast regions
of the United States. We seek to increase our reserves and production primarily
through drilling and complementary acquisitions. Range Resources Corporation
is a Delaware corporation with our common stock listed and traded on the New
York Stock Exchange under the symbol “RRC.” </div>
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 2 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(2) BASIS OF
PRESENTATION</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     These
interim financial statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Range Resources Corporation
2008 Annual Report on Form 10-K filed on February 25, 2009. These
consolidated financial statements are unaudited but, in the opinion of management,
reflect all adjustments necessary for fair presentation of the results for
the periods presented. All adjustments are of a normal recurring nature unless
disclosed otherwise. These consolidated financial statements, including selected
notes, have been prepared in accordance with the applicable rules of the Securities
and Exchange Commission (“SEC”) and do not include all
of the information and disclosures required by accounting principles generally
accepted in the United States of America for complete financial statements.
We have evaluated events or transactions through July 22, 2009 in
conjunction with our preparation of these financial statements. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We
adhere to Statement of Financial Accounting Standards (“SFAS”)
No. 19 “Financial Accounting and Reporting by Oil and Gas
Producing Companies,” for recognizing impairment of capitalized
costs related to unproved properties. These costs are capitalized and periodically
evaluated (at least quarterly) as to recoverability based on changes brought
about by economic factors and potential shifts in business strategy employed
by management. We consider time, geologic and engineering factors to evaluate
the need for impairment of these costs. We continue to experience an increase
in lease expirations and impairment expense caused by (1) current
economic conditions which have impacted our future drilling plans thereby
increasing the amount of expected lease expirations and (2) the expansion
of our unproved property positions in new shale plays. As economic conditions
change and we continue to evaluate unproved properties, our estimates of expirations
likely will change and we may increase or decrease impairment expense. We
recorded abandonment and impairment expense in the first six months of 2009
of $60.5 million compared to $5.6 million in the same period
of the prior year. In the second quarter of 2009, we recorded abandonment
and impairment expense of $41.0 million, which includes the expiration
of certain significant Barnett Shale leases. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     In
second quarter 2009, we identified certain leases amounting to $8.2 million
that expired in 2006, 2007, and 2008, which were not expensed as required.
Based on Staff Accounting Bulletin No. 108 (“SAB 108”),
we have determined that these amounts are immaterial to each of the time periods
affected and, therefore, we are not required to amend our previously filed
reports. However, if these adjustments were recorded in 2009, we believe the
impact could be material to this year. Therefore, we plan to adjust our previously
reported results for 2006, 2007, and 2008 for these immaterial amounts as
required by SAB 108. Such previous periods will be restated upon the next
filing of our annual consolidated financial statements. In addition to recording
additional lease expirations, we plan to make four other adjustments to prior
year numbers to correct other immaterial items, which included the following
adjustments: (1) tax expense of $3.5 million for discrete
tax items recorded in 2008 related to 2007 (2) expense for volumetric
ineffectiveness related to our derivative positions of $1.7 million
recorded in 2008 related to 2007 (3) dry hole expense of $2.4 million
not recorded in 2007 and (4) deferred compensation income of $7.1 million
recorded in 2007 related to 2006 and prior years. The balance sheet as of
December 31, 2008 has been adjusted to reflect the cumulative impact
of such errors. As a result, oil and gas properties decreased by $10.7 million,
deferred tax liability decreased $4.2 million and retained earnings
decreased by $6.5 million. For additional information, see Footnote
18. </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 3 - us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(3) NEW ACCOUNTING
STANDARDS</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     In February 2008,
the Financial Accounting Standards Board (“FASB”) issued
staff position (“FSP”) SFAS No. 157-2 which delayed
the effective date of SFAS No. 157 for all non-financial assets and
non-financial liabilities except those that are recognized or disclosed at
fair value in the financial statements on a recurring basis (at least annually).
This deferral of SFAS No. 157 primarily applied to our asset retirement
obligation (“ARO”), which uses fair value measures at
the date incurred to determine our liability and any property impairments
that may occur. We adopted FSP SFAS No. 157-2 effective January 1,
2009 and the adoption did not have a material effect on our consolidated results
of operations. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     In June 2008,
the FASB issued Staff Position No. EITF 03-6-1 “Determining
Whether Instruments Granted in Share-Based Payment Transactions are Participating
Securities,” (“FSP EITF 03-6-1”) which provides
that unvested share-based payment awards that contain nonforfeitable rights
to dividends or dividend equivalents (whether paid or unpaid) are participating
securities and, therefore, need to be included in the earnings allocation
in computing earnings per share under the two class method. We adopted FSP
EITF 03-6-1 on January 1, 2009 with no impact on our reported earnings
per share. </div> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In
March 2008, the FASB issued SFAS No. 161, “Disclosure
about Derivative Instruments and Hedging Activities, an amendment of FASB
Statement No. 133.” SFAS No. 161 amends and expands
the disclosure requirements of SFAS No. 133 with the intent to provide
users of financial statements with an enhanced understanding of: (i) how
and why any entity uses derivative instruments; (ii) how derivative instruments
and related hedged items are accounted for under SFAS No. 133 and
its related interpretations; and (iii) how derivative instruments
and related hedged items affect an entity’s financial position,
financial performance and cash flows. We adopted SFAS No. 161 on
January 1, 2009. See Note 11 for additional disclosures required
by SFAS No. 161. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     In
December 2007, the FASB issued SFAS No. 141(R), “Business
Combinations.” SFAS No. 141(R) replaces SFAS No. 141.
The statement retains the purchase method of accounting for acquisitions,
but requires a number of changes, including changes in the way assets and
liabilities are recognized in the purchase method of accounting. It changes
the recognition of assets acquired and liabilities assumed arising from contingencies,
requires the capitalization of in-process research and development at fair
value, and requires the expensing of acquisition-related costs as incurred.
The statement will apply prospectively to business combinations occurring
in our fiscal year beginning January 1, 2009. The adoption of SFAS
No. 141(R) did not have an effect on our reported financial position
or earnings. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     In April 2009,
two related FASB Staff Positions were issued: </div> <div style="margin-top:
6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0"
style="font-size: 10pt"> <tr valign="top" style="font-size: 10pt; color:
#000000; background: transparent"> <td width="2%" style="background:
transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>FASB Staff Position (“FSP”)
No. FAS 107-1 and APB 28-1, “Interim Disclosures about
Fair Value of Financial Instruments,” (“FSP FAS 107-1”)</td>
</tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>FSP No. FAS
157-4, “Determining Fair Value When the Volume and Level of Activity
for the Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly,” (“FSP FAS 157-4”)</td>
</tr> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     FSP
FAS 107-1 amends SFAS No. 107 and Accounting Principles Board (“APB”)
Opinion No. 28 to require disclosures about fair value of financial
instruments in interim reporting periods for publicly traded companies. FSP
FAS 157-4 provides additional guidance for estimating fair value in accordance
with SFAS No. 157 when the volume and level of activity for the asset
or liability has significantly decreased. It also includes guidance on identifying
circumstances that indicate a transaction is not orderly. Additional disclosures
are also required. We adopted the provisions of the FSP’s for the
period ending June 30, 2009. The adoption of these FSP’s
did not have an impact on our financial position or results of operations.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In
May 2009, the FASB issued SFAS No. 165, “Subsequent
Events.” SFAS No. 165 establishes general standards of
accounting for and disclosure of events that occur after the balance sheet
date but before financial statements are issued or are available to be issued.
We adopted SFAS No. 165 for the period ending June 30, 2009, which
did not have an impact on our financial position or results of operations.
</div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 4 - rrc:DispositionTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>(4) DISPOSITIONS</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In
second quarter 2009, we sold certain oil properties in West Texas for proceeds
of $182.0 million. The proceeds from the sale of these oil properties were
credited to oil and gas properties, with no gain or loss recognized, as the
disposition did not materially impact the depletion rate of the remaining
properties in the amortization base. In first quarter 2008, we sold East Texas
properties for proceeds of $64.4 million and recorded a gain of $20.2 million.
</div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 5 - us-gaap:IncomeTaxDisclosureTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>(5) INCOME TAXES</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Income
tax expense (benefit) was as follows (in thousands): </div>
<div align="center"> <table style="font-size: 10pt" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="52%"> </td> <td
width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Three
Months Ended</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7">Six Months Ended</td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000">June 30,</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px
solid #000000">June 30,</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2008</td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="center" colspan="3">(Restated)</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Income tax
benefit </div></td> <td> </td> <td nowrap="nowrap"
align="right">$</td> <td align="right">(22,526</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="right">$</td> <td align="right">(19,496</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="right">$</td> <td align="right">(3,699</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="right">$</td> <td align="right">(15,816</td> <td
nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Effective tax rate
</div></td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">36.1</td>
<td nowrap="nowrap">%</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">37.6</td>
<td nowrap="nowrap">%</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">33.7</td>
<td nowrap="nowrap">%</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">36.5</td>
<td nowrap="nowrap">%</td> </tr> <!-- End Table Body
--> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     We
compute our quarterly taxes under the effective tax rate method based on applying
an anticipated annual effective rate to our year-to-date income (loss), except
for discrete items. Income taxes for discrete items are computed and recorded
in the period that the specific transaction occurs. For the three months ended
June 30, 2009 and 2008, our overall effective tax rate on pre-tax
income from operations was different than the statutory rate of 35% due primarily
to state income taxes. For the six months ended June 30, 2009, our
overall effective tax rate on income from operations was different than the
statutory rate of 35% due primarily to state income taxes, valuation allowance
and permanent differences. For the six months June 30, 2008, our
overall effective tax rate on income from operations was different than the
statutory rate due primarily to state income taxes. We expect our effective
tax rate to be approximately 37% for the remainder of 2009. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     At
December 31, 2008, we had regular tax net operating loss (“NOL”)
carryforwards of $160.4 million and alternative minimum tax (“AMT”)
NOL carryforwards of $92.5 million that expire between 2012 and 2027.
Our deferred tax asset related to regular NOL carryforwards at December 31,
2008 was $10.7 million, net of the SFAS No. 123(R) deduction
for unrealized benefits. At December 31, 2008, we have AMT credit
carryforwards of $1.8 million that are not subject to limitation
or expiration. </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 6 - us-gaap:EarningsPerShareTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>(6) EARNINGS (LOSS) PER
COMMON SHARE</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     Basic
income (loss) per share is based on weighted average number of common
shares outstanding. Diluted income per share includes exercise of stock options,
stock appreciation rights and restricted shares, provided the effect is not
anti-dilutive. The following table sets forth the computation of basic and
diluted earnings (loss) per common share (in thousands except per
share amounts): </div> <div align="center"> <table style="font-size:
10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!--
Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6">Three
Months Ended</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6">Six Months Ended</td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000">June 30,</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000">June 30,</td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="center"
colspan="2">(Restated)</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="center" colspan="2">(Restated)</td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Numerator:
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net
loss </div></td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(39,883</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(32,355</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(7,275</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(27,506</td> <td
nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Denominator: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Weighted average common
shares outstanding — basic </div></td> <td> </td>
<td> </td> <td align="right">154,389</td>
<td> </td> <td> </td> <td> </td>
<td align="right">150,772</td> <td> </td>
<td> </td> <td> </td> <td align="right">154,056</td>
<td> </td> <td> </td> <td> </td>
<td align="right">149,215</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Effect of dilutive
securities: </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Employee
stock options, SARs and stock held in the deferred compensation plan </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Weighted average common shares
— diluted </div></td> <td> </td>
<td> </td> <td align="right">154,389</td>
<td> </td> <td> </td> <td> </td>
<td align="right">150,772</td> <td> </td>
<td> </td> <td> </td> <td align="right">154,056</td>
<td> </td> <td> </td> <td> </td>
<td align="right">149,215</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Loss per common share: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Basic — net
loss </div></td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.26</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.22</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.05</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.18</td> <td
nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Diluted —
net loss </div></td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.26</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.22</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.05</td> <td
nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(0.18</td> <td
nowrap="nowrap">)</td> </tr> <!-- End Table Body -->
</table> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     The weighted average
common shares — basic amount excludes 2.4 million shares
at June 30, 2009 and 2.2 million shares at June 30,
2008, of restricted stock that is held in our deferred compensation plan (although
all restricted stock is issued and outstanding upon grant). Due to our net
loss from operations for the three months and the six months ended June 30,
2009, we excluded all 10.4 million outstanding stock options/SARs
and restricted stock because the effect would have been anti-dilutive. Due
to our net loss from operations for the three months and the six months ended
June 30, 2008, we excluded all 10.0 million outstanding
stock options/SARs and restricted stock because the effect would have been
anti-dilutive. </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 7 - us-gaap:SuspendedWellCostsDisclosureTextBlock--> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(7) SUSPENDED
EXPLORATORY WELL COSTS</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
following table reflects the changes in capitalized exploratory well costs
for the six months ended June 30, 2009 and the year ended December 31,
2008 (in thousands): </div> <div align="center"> <table style="font-size:
10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!--
Begin Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">June
30,</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">December 31,</td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2008</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Beginning balance at January 1 </div></td>
<td> </td> <td align="left">$</td> <td
align="right">47,623</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">15,053</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Additions to capitalized
exploratory well costs pending the determination of proved reserves </div></td>
<td> </td> <td> </td> <td align="right">20,509</td>
<td> </td> <td> </td> <td> </td>
<td align="right">43,968</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Reclassifications to
wells, facilities and equipment based on determination of proved reserves
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(1,288</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(3,847</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:30px; text-indent:-15px">Capitalized
exploratory well costs charged to expense </div></td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(7,551</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Balance
at end of period </div></td> <td> </td> <td> </td>
<td align="right">66,844</td> <td> </td>
<td> </td> <td> </td> <td align="right">47,623</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Less exploratory well
costs that have been capitalized for a period of one year or less </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(48,020</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(41,681</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Capitalized exploratory well
costs that have been capitalized for a period greater than one year </div></td>
<td> </td> <td align="left">$</td> <td
align="right">18,824</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">5,942</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Number of projects
that have exploratory well costs that have been capitalized for a period greater
than one year </div></td> <td> </td> <td> </td>
<td align="right">8</td> <td> </td> <td> </td>
<td> </td> <td align="right">3</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
$66.8 million of capitalized exploratory well costs at June 30,
2009 was incurred in 2009 ($18.5 million), in 2008 ($42.4 million)
and in 2007 ($5.9 million). Of the eight projects that have exploratory
costs capitalized for more than one year, seven projects are Marcellus Shale
wells. </div> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 8 - us-gaap:DebtDisclosureTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>(8) INDEBTEDNESS</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We
had the following debt outstanding as of the dates shown below (in thousands)
(bank debt interest rate at June 30, 2009 is shown parenthetically).
No interest expense was capitalized during the three months or the six months
ended June 30, 2009 and 2008. </div> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="76%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">December
31,</td> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2008</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Bank debt (2.1%) </div></td> <td> </td>
<td align="left">$</td> <td align="right">403,000</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">693,000</td> <td> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Subordinated
debt: </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">7.375% Senior Subordinated
Notes due 2013, net of discount </div></td> <td> </td>
<td> </td> <td align="right">198,161</td>
<td> </td> <td> </td> <td> </td>
<td align="right">197,968</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">6.375% Senior Subordinated Notes due 2015 </div></td>
<td> </td> <td> </td> <td align="right">150,000</td>
<td> </td> <td> </td> <td> </td>
<td align="right">150,000</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">7.5% Senior Subordinated
Notes due 2016, net of discount </div></td> <td> </td>
<td> </td> <td align="right">249,616</td>
<td> </td> <td> </td> <td> </td>
<td align="right">249,595</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">7.5% Senior Subordinated Notes due 2017 </div></td>
<td> </td> <td> </td> <td align="right">250,000</td>
<td> </td> <td> </td> <td> </td>
<td align="right">250,000</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">7.25% Senior Subordinated
Notes due 2018 </div></td> <td> </td> <td> </td>
<td align="right">250,000</td> <td> </td>
<td> </td> <td> </td> <td align="right">250,000</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">8.0% Senior Subordinated
Notes due 2019, net of discount </div></td> <td> </td>
<td> </td> <td align="right">285,357</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Other </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">105</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total
debt </div></td> <td> </td> <td align="left">$</td>
<td align="right">1,786,134</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,790,668</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Estimated
fair value<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">1,725,259</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,621,793</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <tr>
<td width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup
style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td> <td>The book value of our bank debt
approximates fair value because of its floating rate structure. The fair value
of our senior subordinated debt is based on quoted end of period market prices.</td>
</tr> </table> <div align="left" style="font-size: 10pt; margin-top:
12pt"><b>Bank Debt</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     In
October 2006, we entered into an amended and restated revolving bank
facility, which we refer to as our bank debt or our bank credit facility,
which is secured by substantially all of our assets. The bank credit facility
provides for an initial commitment equal to the lesser of the facility amount
or the borrowing base. On June 30, 2009, the borrowing base was $1.5 billion
and our facility amount was $1.25 billion. The bank credit facility
provides for a borrowing base subject to redeterminations semi-annually each
April and October and for event-driven unscheduled redeterminations. Our current
bank group is comprised of twenty-six commercial banks each holding between
2.4% and 5.0% of the total facility. Of those twenty-six banks, thirteen are
domestic banks and thirteen are foreign banks or wholly owned subsidiaries
of foreign banks. The facility amount may be increased up to the borrowing
base amount with twenty days notice, subject to payment of a mutually acceptable
commitment fee to those banks agreeing to participate in the facility amount
increase. At June 30, 2009, the outstanding balance under the bank
credit facility was $403.0 million and there was $847.0 million
of borrowing capacity available under the facility amount. The loan matures
October 25, 2012. Borrowing under the bank credit facility can either
be the Alternate Base Rate (as defined) plus a spread ranging from 0.875%
to 1.625% or LIBOR borrowings at the adjusted LIBO Rate (as defined) plus
a spread ranging from 1.75% to 2.5%. The applicable spread is dependent upon
borrowings relative to the borrowing base. We may elect, from time to time,
to convert all or any part of our LIBOR loans to base rate loans or to convert
all or any part of the base rate loans to LIBOR loans. The weighted average
interest rate on the bank credit facility was 2.5% for the three months ended
June 30, 2009 compared to 4.8% for the three months ended June 30,
2008. The weighted average interest rate on the bank credit facility was 2.6%
for the six months ended June 30, 2009 compared to 4.9% in the same
period of the prior year. A commitment fee is paid on the undrawn balance
based on an annual rate of between 0.375% and 0.50%. At June 30,
2009, the commitment fee was 0.375% and the interest rate margin was 1.75%
on our LIBOR loans. At July 20, 2009, the interest rate (including
applicable margin) was 2.3%. </div> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>Senior Subordinated Notes</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In
May 2009, we issued $300.0 million aggregate principal amount
of 8.0% senior subordinated notes due 2019 (“8.0% Notes”).
The 8.0% Notes were issued at a discount, which is being amortized over the
life of the 8.0% Notes due 2019. Interest on the 8.0% Notes is payable semi-annually,
in May and November, and is guaranteed by certain of our subsidiaries. We
may redeem the 8.0% Notes, in whole or in part, at any time on or after May 15,
2014, at redemption prices of 104.0% of the principal amount as of May 15,
2014 and declining to 100.0% on May 15, 2017 and thereafter. </div>
<!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK
--> <div style="font-family: 'Times New Roman',Times,serif"> <div
align="left" style="font-size: 10pt; margin-top: 6pt">Before May 15, 2012,
we may redeem up to 35% of the original aggregate principal amount of the
8.0% Notes at a redemption price equal to 108.0% of the principal amount thereof,
plus accrued and unpaid interest, if any, with the proceeds of certain equity
offerings, provided that at least 65% of the original aggregate principal
amount of the 8.0% Notes remain outstanding immediately after the occurrence
of such redemption and also provided such redemption shall occur within 60 days
of the date of the closing of the equity offering. </div> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>Debt Covenants</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Our
bank credit facility contains negative covenants that limit our ability, among
other things, to pay cash dividends, incur additional indebtedness, sell assets,
enter into certain hedging contracts, change the nature of our business or
operations, merge, consolidate, or make investments. In addition, we are required
to maintain a ratio of debt to EBITDAX (as defined in the credit agreement)
of no greater than 4.0 to 1.0 and a current ratio (as defined in the credit
agreement) of no less than 1.0 to 1.0. We were in compliance with our covenants
under the bank credit facility at June 30, 2009. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     The
indentures governing our senior subordinated notes contain various restrictive
covenants that are substantially identical and may limit our ability to, among
other things, pay cash dividends, incur additional indebtedness, sell assets,
enter into transactions with affiliates, or change the nature of our business.
At June 30, 2009, we were in compliance with these covenants. </div>
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 9 - us-gaap:AssetRetirementObligationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(9) ASSET RETIREMENT
OBLIGATIONS</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     Our
asset retirement obligation primarily represents the estimated present value
of the amount we will incur to plug, abandon and remediate our producing properties
at the end of their productive lives. Significant inputs used in determining
such obligations include estimates of plugging and abandonment costs, estimated
future inflation rates and well life. A reconciliation of our liability for
plugging, abandonment and remediation costs for the six months ended June 30,
2009 is as follows (in thousands): </div> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="88%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">Six Months</td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">Ended</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">June
30,</td> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Beginning of period </div></td> <td> </td>
<td align="left">$</td> <td align="right">83,457</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Liabilities incurred
</div></td> <td> </td> <td> </td>
<td align="right">915</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Liabilities settled </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(450</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Liabilities sold </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(7,287</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:30px;
text-indent:-15px">Accretion expense </div></td> <td> </td>
<td> </td> <td align="right">2,623</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Change in estimate </div></td> <td> </td>
<td> </td> <td align="right">2,550</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">End of period </div></td>
<td> </td> <td align="left">$</td> <td
align="right">81,808</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     Accretion
expense is recognized as a component of depreciation, depletion and amortization
on our statement of operations. </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 10 - us-gaap:StockholdersEquityNoteDisclosureTextBlock--> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(10) CAPITAL
STOCK</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     We have
authorized capital stock of 485 million shares, which includes 475 million
shares of common stock and 10 million shares of preferred stock.
The following is a summary of changes in the number of common shares outstanding
since the beginning of 2008: </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Six</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Months
Ended</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">Year Ended</td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">December
31,</td> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2008</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Beginning balance </div></td> <td> </td>
<td> </td> <td align="right">155,375,487</td>
<td> </td> <td> </td> <td> </td>
<td align="right">149,511,997</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Public offering </div></td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4,435,300</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Stock options/SARs
exercised </div></td> <td> </td> <td> </td>
<td align="right">797,084</td> <td> </td>
<td> </td> <td> </td> <td align="right">1,339,536</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Restricted stock grants
</div></td> <td> </td> <td> </td>
<td align="right">475,306</td> <td> </td>
<td> </td> <td> </td> <td align="right">167,054</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Treasury
shares </div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(78,400</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Issued for unproved property purchases </div></td>
<td> </td> <td> </td> <td align="right">373,623</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Ending balance </div></td>
<td> </td> <td> </td> <td align="right">157,021,500</td>
<td> </td> <td> </td> <td> </td>
<td align="right">155,375,487</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>Treasury Stock</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The
Board of Directors has approved up to $10.0 million of repurchases
of common stock based on market conditions and opportunities. We have $6.8 million
remaining under this authorization. </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 11 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(11) DERIVATIVE
ACTIVITIES</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">     We use
commodity—based derivative contracts to manage exposures to commodity
price fluctuations. We do not enter into these arrangements for speculative
or trading purposes. These contracts consist of collars and fixed price swaps.
We do not utilize complex derivatives such as swaptions, knockouts or extendable
swaps. At June 30, 2009, we had open swap contracts covering 17.0
Bcf of gas at prices averaging $7.40 per mcf. We also had collars covering
61.3 Bcf of gas at weighted average floor and cap prices of $6.64 to $7.85
per mcf and 1.5 million barrels of oil at weighted average floor
and cap prices of $64.01 to $76.00 per barrel. Their fair value, represented
by the estimated amount that would be realized upon termination, based on
a comparison of the contract prices and a reference price, generally New York
Mercantile Exchange (“NYMEX”), on June 30, 2009,
was a net unrealized pre-tax gain of $169.4 million. These contracts
expire monthly through December 2010. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
following table sets forth our derivative volumes and average hedge prices
as of June 30, 2009: </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Average</td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"> <div style="margin-left: 15px">Period
</div></td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3" style="border-bottom: 1px solid #000000">Contract
Type</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3" style="border-bottom: 1px solid #000000">Volume Hedged</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000">Hedge Price</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Natural Gas </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">2009
</div></td> <td> </td> <td colspan="3"
align="center">Swaps</td> <td> </td> <td
colspan="3" align="center" nowrap="nowrap" >92,351 Mmbtu/day</td>
<td> </td> <td align="right">$</td> <td
align="right">7.40</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">2009 </div></td>
<td> </td> <td colspan="3" align="center">Collars</td>
<td> </td> <td colspan="3" align="center" nowrap="nowrap"
>194,918 Mmbtu/day</td> <td> </td> <td align="right">$</td>
<td nowrap="nowrap" align="right">7.46-$8.15</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">2010 </div></td> <td> </td>
<td colspan="3" align="center">Collars</td> <td> </td>
<td colspan="3" align="center">69,671 Mmbtu/day</td> <td> </td>
<td align="right">$</td> <td nowrap="nowrap" align="right">5.50-$7.43</td>
<td> </td> </tr> <tr> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Crude Oil </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">2009 </div></td> <td> </td>
<td colspan="3" align="center">Collars</td> <td> </td>
<td colspan="3" align="center">8,000 bbl/day</td> <td> </td>
<td align="right">$</td> <td nowrap="nowrap" align="right">64.01-$76.00</td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     Under SFAS No. 133,
every derivative instrument is required to be recorded on the balance sheet
as either an asset or a liability measured at its fair value. Fair value is
generally determined based on the difference between the fixed contract price
and the underlying estimated market price at the determination date. Changes
in the fair value of effective cash flow hedges are recorded as a component
of “Accumulated other comprehensive income (loss),” (“AOCI”)
which is later transferred to earnings when the underlying physical transaction
occurs. Our AOCI at June 30, 2009 and December 31, 2008 relate solely
to our derivative activities. If the derivative does not qualify as a hedge
or is not designated as a hedge, the change in fair value of the derivative
is recognized in earnings. As of June 30, 2009, an unrealized pre-tax
derivative gain of $87.1 million was recorded in AOCI. This gain is expected
to be reclassified into earnings in 2009 ($84.5 million) and 2010
($2.6 million). The actual reclassification to earnings will be based
on market prices at the contract settlement date. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     For
those derivative instruments that qualify for hedge accounting, settled transaction
gains and losses are determined monthly, and are included as increases or
decreases to oil and gas sales in the period the hedged production is sold.
Oil and gas sales includes $53.2 million of gains in the three months
ended June 30, 2009 compared to losses of $50.0 million
in the three months ended June 30, 2008 related to settled hedging
transactions. For the six months ended June 30, 2009, oil and gas
sales include $104.5 million of gains compared to losses of $44.8 million
in the same period of the prior period related to settled hedging transactions.
Any ineffectiveness associated with these hedges is reflected in the statement
of operations caption called “Derivative fair value income (loss).”
The ineffective portion is calculated as the difference between the change
in fair value of the derivative and the estimated change in future cash flows
from the item hedged. The three months ended June 30, 2009 includes
ineffective unrealized gains of $356,000 compared to unrealized gains of $558,000
in the same period of 2008. The six months ended June 30, 2009 includes
ineffective unrealized losses of $97,000 compared to unrealized losses of
$2.7 million in the same period of 2008. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     To
designate a derivative as a cash flow hedge, we document at the hedge’s
inception our assessment that the derivative will be highly effective in offsetting
expected changes in cash flows from the item hedged. This assessment, which
is updated at least quarterly, is generally based on the most recent relevant
historical correlation between the derivative and the item hedged. The ineffective
portion of the hedge is calculated as the difference between the change in
fair value of the derivative and the estimated change in cash flows from the
item hedged. If, during the derivative’s term, we determine the
hedge is no longer highly effective, hedge accounting is prospectively discontinued
and any remaining unrealized gains or losses, based on the effective portion
of the derivative at that date, are reclassified to earnings as oil or gas
sales when the underlying transaction occurs. If it is determined that the
designated hedge transaction is not probable to occur, any unrealized gains
or losses are recognized immediately in the statement of operations as a “Derivative
fair value income or loss.” During the first six months of 2009,
there were gains of $5.4 million reclassified into earnings as a
result of the discontinuance of hedge accounting treatment for our derivatives.
In July 2009, we liquidated four oil commodity contracts and received
proceeds of $119,000. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     Some
of our derivatives do not qualify for hedge accounting but are, to a degree,
an economic offset to our commodity price exposure. These contracts are accounted
for using the mark-to-market accounting method. We recognize all unrealized
and realized gains and losses related to these contracts in the income statement
caption called “Derivative fair value income (loss)” (see
table below). </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     In addition to the
swaps and collars discussed above, we have entered into basis swap agreements,
which do not qualify for hedge accounting and are marked to market. The price
we receive for our gas production can be more or less than the NYMEX price
because of adjustments for delivery location (“basis”),
relative quality and other factors; therefore, we have entered into basis
swap agreements that effectively fix a portion of our basis adjustments. The
fair value of the basis swaps was a net unrealized pre-tax loss of $4.5 million
at June 30, 2009 and these swaps expire through 2011. </div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Derivative
Fair Value Income (Loss)</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     The
following table presents information about the components of derivative fair
value income (loss) in the three months and the six months ended
June 30, 2009 and 2008 (in thousands): </div> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="52%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6">Three Months Ended</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6">Six Months Ended</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000">June 30,</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000">June 30,</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="center"
colspan="2">(Restated)</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="center" colspan="2">(Restated)</td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Hedge
ineffectiveness — realized </div></td> <td> </td>
<td align="left">$</td> <td align="right">1,081</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(490</td> <td
nowrap="nowrap">)</td> <td> </td> <td align="left">$</td>
<td align="right">1,578</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">215</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:125px; text-indent:-5px">— unrealized
</div></td> <td> </td> <td> </td>
<td align="right">356</td> <td> </td> <td> </td>
<td> </td> <td align="right">558</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(97</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(2,691</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Change in fair value
of derivatives that do not qualify for hedge accounting<sup style="font-size:
85%; vertical-align: text-top">(a)</sup> </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(61,595</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(162,280</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(30,070</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(297,501</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Realized gain (loss) on settlements —
gas<sup style="font-size: 85%; vertical-align: text-top">(a) (b)</sup>
</div></td> <td> </td> <td> </td>
<td align="right">48,370</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(28,256</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">86,742</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(11,672</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Realized gain (loss) on settlements —
oil<sup style="font-size: 85%; vertical-align: text-top"> (a) (b)</sup>
</div></td> <td> </td> <td> </td>
<td align="right">1,932</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(6,216</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">7,538</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(8,802</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Derivative fair value
(loss) income </div></td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(9,856</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(196,684</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">65,691</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(320,451</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <tr>
<td width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup
style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
<td> </td> <td>Derivatives that do not qualify
for hedge accounting.</td> </tr> <tr style="font-size: 3pt">
<td> </td> </tr> <tr valign="top"> <td
nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align:
text-top">(b)</sup></td> <td> </td> <td>These
amounts represent the realized gains and losses on settled derivatives that
do not qualify for hedge accounting, which before settlement are included
in the category above called change in fair value of derivatives that do not
qualify for hedge accounting.</td> </tr> </table> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     The
combined fair value of derivatives included in our consolidated balance sheets
as of June 30, 2009 and December 31, 2008 is summarized below (in
thousands). We conduct derivative activities with thirteen financial institutions,
eleven of which are secured lenders in our bank credit facility. We believe
all of these institutions are acceptable credit risks. At times, such risks
may be concentrated with certain counterparties. The credit worthiness of
our counterparties is subject to periodic review. The assets and liabilities
are netted where derivatives with both gain and loss positions are held by
a single counterparty. </div> <div align="center"> <table style="font-size:
10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!--
Begin Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">June
30,</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">December 31,</td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2008</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Derivative assets: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Natural gas —
swaps </div></td> <td> </td> <td align="left">$</td>
<td align="right">53,455</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">57,280</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:94px; text-indent:-15px">— collars </div></td>
<td> </td> <td> </td> <td align="right">118,584</td>
<td> </td> <td> </td> <td> </td>
<td align="right">121,781</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:94px;
text-indent:-15px">— basis swaps </div></td> <td> </td>
<td> </td> <td align="right">71</td> <td> </td>
<td> </td> <td> </td> <td align="right">12,434</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Crude
oil — collars </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(2,254</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">35,166</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td align="left">$</td>
<td align="right">169,856</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">226,661</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Derivative
liabilities: </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Natural gas — swaps </div></td>
<td> </td> <td align="left">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:94px; text-indent:-15px">—
collars </div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(99</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:94px;
text-indent:-15px">— basis swaps </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(4,592</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(10</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:30px;
text-indent:-15px">Crude oil — collars </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(255</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(4,946</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(10</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 6pt">     We
adopted SFAS No. 161 at the beginning of 2009 and the expanded disclosures
required by SFAS No. 161 are presented below. The table below provides data
about the carrying values of derivatives that qualify for hedge accounting
and derivatives that do not qualify for hedge accounting (in thousands): </div>
<div align="center"> <table style="font-size: 10pt" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="28%"> </td> <td
width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="10"
style="border-bottom: 1px solid #000000">June 30, 2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="10"
style="border-bottom: 1px solid #000000">December 31, 2008</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Assets</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">(Liabilities)</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Assets</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">(Liabilities)</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 0px solid #000000"> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 0px solid #000000"> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Net</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 0px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 0px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Net </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Carrying</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Carrying</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Carrying</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Carrying</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Carrying</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Carrying</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Value</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Value</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Value</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Value</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Value</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Value</td> <td> </td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Derivatives that qualify for
cash flow hedge accounting: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Collars<sup
style="font-size: 85%; vertical-align: text-top">(1)</sup> </div></td>
<td> </td> <td align="left">$</td> <td
align="right">93,198</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(676</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">92,522</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">124,193</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">124,193</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td align="left">$</td> <td
align="right">93,198</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(676</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">92,522</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">124,193</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">124,193</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives
that do not qualify for hedge accounting: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Swaps<sup style="font-size:
85%; vertical-align: text-top">(1)</sup> </div></td>
<td> </td> <td align="left">$</td> <td
align="right">53,455</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">53,455</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">57,280</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">57,280</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Collars<sup style="font-size: 85%; vertical-align:
text-top">(1)</sup> </div></td> <td> </td>
<td> </td> <td align="right">24,853</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(1,399</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">23,454</td> <td> </td>
<td> </td> <td> </td> <td align="right">32,754</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">32,754</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Basis
swaps<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td> <td> </td> <td> </td>
<td align="right">2,663</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(7,184</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(4,521</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">12,481</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(57</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">12,424</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td align="left">$</td> <td
align="right">80,971</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(8,583</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">72,388</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">102,515</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(57</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">102,458</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <tr>
<td width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup
style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td> <td>Included in unrealized derivative
gain/(loss) on our balance sheet.</td> </tr> </table> <div
align="left" style="font-size: 10pt; margin-top: 6pt">     The
table below provides data about the amount of gains and losses related to
cash flow derivatives that qualify for hedge accounting included in the balance
sheet caption “Accumulated other comprehensive income”
(AOCI) and in our statement of operations (in thousands): </div>
<div align="center"> <table style="font-size: 10pt" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="28%"> </td> <td
width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6">Amount
of Gain/(Loss)</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6">Amount of Gain (Loss)</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6">Recognized
in OCI</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6">Reclassified from AOCI
in</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6">Amount of Gain (Loss)
in</td> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000">(Effective Portion)</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000">Income (Effective Portion)<sup
style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000">Income
(Ineffective Portion)<sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6">Six Months Ended</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6">Six
Months Ended</td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000">As of June 30,</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000">June 30,</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000">June 30,</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="center"
colspan="2">(Restated)</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Swap </div></td>
<td> </td> <td align="left">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(65,674</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">3,128</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(1,457</td> <td
nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Collar </div></td>
<td> </td> <td> </td> <td align="right">69,320</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(390,378</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">104,479</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(47,905</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">1,481</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(1,019</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Income taxes </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(26,137</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">173,326</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(38,657</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">17,015</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Total </div></td>
<td> </td> <td align="left">$</td> <td
align="right">43,183</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(282,726</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">65,822</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(27,762</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="left">$</td> <td
align="right">1,481</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(2,476</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="left"> <div style="font-size:
3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div> </div> <table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt"> <tr> <td width="3%"></td>
<td width="1%"></td> <td width="96"></td> </tr>
<tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size:
85%; vertical-align: text-top">(1)</sup></td> <td> </td>
<td>Swap and collar amounts are included in oil and gas sales in our
statement of operations.</td> </tr> <tr style="font-size: 3pt">
<td> </td> </tr> <tr valign="top"> <td
nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align:
text-top">(2)</sup></td> <td> </td> <td>Included
in derivative fair value income (loss) in our statement of operations.</td>
</tr> </table> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 12 - us-gaap:FairValueDisclosuresTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>(12) FAIR VALUE MEASUREMENTS</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     We
use a market approach for our fair value measurements and endeavor to use
the best information available. Accordingly, valuation techniques that maximize
the use of observable impacts are favored. The following table presents the
fair value hierarchy table for assets and liabilities measured at fair value,
on a recurring basis (in thousands): </div> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="64%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px
solid #000000">Fair Value Measurements at June 30, 2009 Using:</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Quoted</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Prices in</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Active</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Significant</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Total</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Markets for</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Other</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Significant</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Carrying</td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Identical</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Observable</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Unobservable</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Value
as of</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Assets</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Inputs</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Inputs</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">June 30,</td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000">(Level 1)</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">(Level 2)</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid
#000000">(Level 3)</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3" style="border-bottom: 1px solid #000000">2009</td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Trading securities held in
the deferred compensation plans </div></td> <td> </td>
<td align="right">$</td> <td align="right">37,320</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">37,320</td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives
— swaps </div></td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">53,455</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">53,455</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:78px; text-indent:-15px">— collars
</div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">115,976</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">115,976</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:78px; text-indent:-15px">— basis swaps
</div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(4,521</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(4,521</td>
<td nowrap="nowrap">)</td> </tr> <!-- End Table Body
--> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     These
items are classified in their entirety based on the lowest priority level
of input that is significant to the fair value measurement. The assessment
of the significance of a particular input to the fair value measurement requires
judgment and may affect the placement of assets and liabilities within the
levels of the fair value hierarchy. Our trading securities in Level 1 are
exchange-traded and measured at fair value with a market approach using June 30,
2009 market values. Derivatives in Level 2 are measured at fair value with
a market approach using third-party pricing services which have been corroborated
with data from active markets or broker quotes. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     Our
trading securities held in the deferred compensation plan are accounted for
using the mark-to-market accounting method and are included in the balance
sheet category called “other assets.” We adopted SFAS
No. 159, “The Fair Value Option for Financial Assets and
Financial Liabilities” on January 1, 2008 which resulted
in a reclassification of a $2.0 million pre-tax loss ($1.3 million
after tax) related to our trading securities held in our deferred compensation
plan from accumulated other comprehensive loss to retained earnings. We elected
to adopt the fair value option to simplify our accounting for the investments
in our deferred compensation plan. Interest, dividends, and mark-to-market
gains/losses are included in the statement of operations category called “Deferred
compensation plan expense.” For the three months ended June 30,
2009, interest and dividends were $50,000 and mark-to-market was a gain of
$4.9 million. For the three months ended June 30, 2008,
interest and dividends were $79,000 and the mark-to-market was a loss of $666,000.
For the six months ended June 30, 2009, interest and dividends were
$93,000 and mark-to-market was a gain of $3.4 million. For the six
months ended June 30, 2008, interest and dividends were $266,000
and the mark-to-market was a loss of $5.3 million. </div> <div
align="left" style="font-size: 10pt; margin-top: 12pt"><b>Concentration
of Credit Risk</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     Most
of our receivables are from a diverse group of companies, including major
energy companies, pipeline companies, local distribution companies, financial
institutions and end-users in various industries. Letters of credit or other
appropriate security are obtained as necessary to limit risk of loss. Our
allowance for uncollectible receivables was $753,000 at June 30,
2009 and $954,000 at December 31, 2008. Commodity-based contracts
expose us to the credit risk of nonperformance by the counterparty to the
contracts. These contracts consist of collars and fixed price swaps. This
exposure is diversified among major investment grade financial institutions
and we have master netting agreements with the counterparties that provide
for offsetting payables against receivables from separate derivative contracts.
Our derivative counterparties include thirteen financial institutions, eleven
of which are secured lenders in our bank credit facility. Mitsui &
Co. and J. Aron & Company are the two counterparties not in our bank
group. At June 30, 2009, our net derivative asset includes a payable
to J. Aron & Company of $33,000 and a receivable from Mitsui &
Co. for $9.9 million. None of our derivative contracts have margin
requirements or collateral provisions that would require funding prior to
the scheduled cash settlement date. </div> <!-- Folio --> <!--
/Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 13 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(13) EMPLOYEE
BENEFIT AND EQUITY PLANS</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     We
have six equity-based stock plans, of which two are active. Under the active
plans, incentive and nonqualified options, SARs and annual cash incentive
awards may be issued to directors and employees pursuant to decisions of the
Compensation Committee, which is made up of non-employee, independent directors
from the Board of Directors. All awards granted have been issued at prevailing
market prices at the time of the grant. Since the middle of 2005, only SARs
have been granted under the plans to limit the dilutive impact of our equity
plans. Information with respect to stock option and SARs activities is summarized
below: </div> <div align="center"> <table style="font-size:
10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!--
Begin Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Weighted</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Average</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Exercise</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Shares</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Price</td> <td> </td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Outstanding on December 31,
2008 </div></td> <td> </td> <td> </td>
<td align="right">7,248,666</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">26.15</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted
</div></td> <td> </td> <td> </td>
<td align="right">1,693,405</td> <td> </td>
<td> </td> <td> </td> <td align="right">36.76</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Exercised
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(941,562</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">11.48</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Expired/forfeited
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(38,449</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">37.72</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Outstanding on June 30,
2009 </div></td> <td> </td> <td> </td>
<td align="right">7,962,060</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">30.08</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
following table shows information with respect to outstanding stock options
and SARs at June 30, 2009: </div> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="40%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px
solid #000000">Outstanding</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000">Exercisable</td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Weighted-</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Weighted-</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">Weighted-</td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Average</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Average</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Average</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Remaining</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Exercise</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">Exercise</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 1px solid #000000">Range of Exercise
Prices</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="2" style="border-bottom: 1px solid #000000">Shares</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000">Contractual
Life</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Price</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Shares</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Price</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:30px;
text-indent:-15px">$1.29–$9.99 </div></td> <td> </td>
<td> </td> <td align="right">944,761</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2.43</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">3.39</td>
<td> </td> <td> </td> <td> </td>
<td align="right">944,761</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">3.39</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">10.00–19.99
</div></td> <td> </td> <td> </td>
<td align="right">1,603,543</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.86</td>
<td> </td> <td> </td> <td> </td>
<td align="right">16.46</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,603,543</td>
<td> </td> <td> </td> <td> </td>
<td align="right">16.46</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">20.00–29.99 </div></td>
<td> </td> <td> </td> <td align="right">1,225,216</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.75</td> <td> </td> <td> </td>
<td> </td> <td align="right">24.38</td> <td> </td>
<td> </td> <td> </td> <td align="right">1,200,916</td>
<td> </td> <td> </td> <td> </td>
<td align="right">24.33</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">30.00–39.99
</div></td> <td> </td> <td> </td>
<td align="right">2,481,212</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.58</td>
<td> </td> <td> </td> <td> </td>
<td align="right">34.10</td> <td> </td> <td> </td>
<td> </td> <td align="right">802,646</td>
<td> </td> <td> </td> <td> </td>
<td align="right">34.27</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">40.00–49.99 </div></td>
<td> </td> <td> </td> <td align="right">618,287</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4.83</td> <td> </td> <td> </td>
<td> </td> <td align="right">41.68</td> <td> </td>
<td> </td> <td> </td> <td align="right">53,957</td>
<td> </td> <td> </td> <td> </td>
<td align="right">41.70</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">50.00–59.99
</div></td> <td> </td> <td> </td>
<td align="right">713,876</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.62</td>
<td> </td> <td> </td> <td> </td>
<td align="right">58.57</td> <td> </td> <td> </td>
<td> </td> <td align="right">216,122</td>
<td> </td> <td> </td> <td> </td>
<td align="right">58.57</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">60.00–69.99 </div></td>
<td> </td> <td> </td> <td align="right">28,427</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3.88</td> <td> </td> <td> </td>
<td> </td> <td align="right">65.33</td> <td> </td>
<td> </td> <td> </td> <td align="right">8,529</td>
<td> </td> <td> </td> <td> </td>
<td align="right">65.33</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">70.00–75.00
</div></td> <td> </td> <td> </td>
<td align="right">346,738</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.89</td>
<td> </td> <td> </td> <td> </td>
<td align="right">75.00</td> <td> </td> <td> </td>
<td> </td> <td align="right">122,563</td>
<td> </td> <td> </td> <td> </td>
<td align="right">75.00</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:45px; text-indent:-15px">Total </div></td>
<td> </td> <td> </td> <td align="right">7,962,060</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2.73</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">30.08</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4,953,037</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">22.41</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     The
weighted average fair value of an option/SAR to purchase one share of common
stock granted during 2009 was $15.39. The fair value of each stock option/SAR
granted during 2009 was estimated as of the date of grant using the Black-Scholes-Merton
option-pricing model based on the following average assumptions: risk-free
interest rate of 1.5%; dividend yield of 0.4%; expected volatility of 59%;
and an expected life of 3.5 years. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     As
of June 30, 2009, the aggregate intrinsic value (the difference in
value between exercise and market price) of the awards outstanding was $115.0 million.
The aggregate intrinsic value and weighted average remaining contractual life
of stock option awards currently exercisable was $102.2 million and 1.9 years.
As of June 30, 2009, the number of fully vested awards and awards
expected to vest was 7.8 million. The weighted average exercise price
and weighted average remaining contractual life of these awards was $29.80
and 2.7 years and the aggregate intrinsic value was $114.3 million.
As of June 30, 2009, unrecognized compensation cost related to the
awards was $37.1 million, which is expected to be recognized over
a weighted average period of 1.4 years. Of the 8.0 million
stock option/SARs outstanding at June 30, 2009, 1.8 million
are stock options and 6.2 million are SARs. </div> <div
align="left" style="font-size: 10pt; margin-top: 12pt"><b>Restricted
Stock Grants</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     During
the first six months of 2009, 532,900 shares of restricted stock (or non-vested
shares) were issued to employees at an average price of $37.70 with a three-year
vesting period and 22,700 shares were granted to our directors at an average
price of $41.60 with immediate vesting. In the first six months of 2008, we
issued 312,500 shares of restricted stock as compensation to employees at
an average price of $65.84 with a three-year vesting period and 10,800 shares
were granted to our directors at a price of $75.00 with immediate vesting.
We recorded compensation expense related to restricted stock grants which
is based upon the market value of the shares on the date of grant of $8.8
million in the first six months of 2009 compared to $7.4 million
in the six-month period ended June 30, 2008. As of June 30, 2009,
unrecognized compensation cost related to restricted stock awards was $30.0 million,
which is expected to be recognized over the weighted average period of 1.5 years
(excluding mark-to-market that would also be recognized over that same time
period). All of our restricted stock grants are held in our deferred compensation
plans (see discussion below). All awards granted have been issued at prevailing
market prices at the time of the grant and the vesting of these shares is
based upon an employee’s continued employment with us. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A
summary of the status of our non-vested restricted stock outstanding at June 30,
2009 is presented below: </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Weighted</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2">Average Grant</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Shares</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">Date Fair Value</td> <td> </td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Non-vested shares outstanding
at December 31, 2008 </div></td> <td> </td>
<td> </td> <td align="right">473,547</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">48.50</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted
</div></td> <td> </td> <td> </td>
<td align="right">555,581</td> <td> </td>
<td> </td> <td> </td> <td align="right">37.86</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Vested
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(248,096</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">39.87</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Forfeited
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(1,976</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">33.91</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Non-vested shares outstanding
at June 30, 2009 </div></td> <td> </td>
<td> </td> <td align="right">779,056</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">43.70</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>Deferred Compensation
Plan</b> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">     In December 2004,
we adopted the Range Resources Corporation Deferred Compensation Plan (“2005
Deferred Compensation Plan”). The 2005 Deferred Compensation Plan
gives directors, officers and key employees the ability to defer all or a
portion of their salaries and bonuses and invest such amounts in Range common
stock or make other investments at the individual’s discretion.
The assets of the plan are held in a grantor trust, which we refer to as the
Rabbi Trust, and are therefore available to satisfy the claims of our creditors
in the event of bankruptcy or insolvency. Our stock granted and held in the
Rabbi Trust is treated as a liability award as employees are allowed to take
withdrawals from the Rabbi Trust either in cash or in Range stock. The liability
associated with the vested portion of the stock held in the Rabbi Trust is
adjusted to fair value each reporting period by a charge or credit to deferred
compensation plan expense on our consolidated statement of operations. The
assets of the Rabbi Trust, other than Range common stock, are invested in
marketable securities and reported at market value in other assets on our
consolidated balance sheet. Changes in the market value of the securities
are charged or credited to deferred compensation plan expense each quarter.
The deferred compensation liability on our balance sheet reflects the vested
market value of the marketable securities and stock held in the Rabbi Trust.
We recorded non-cash, mark-to-market expense related to our deferred compensation
plan of $13.2 million in the first six months of 2009 compared to
mark-to-market expense of $28.1 million in the same period of 2008. </div>
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 14 - us-gaap:CashFlowSupplementalDisclosuresTextBlock--> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(14) SUPPLEMENTAL
CASH FLOW INFORMATION</b> </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6">Six
Months Ended</td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000">June 30,</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2009</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000">2008</td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6">(in
thousands)</td> <td> </td> </tr> <!--
End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Non-cash investing and financing activities included:
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Asset retirement costs (removed) capitalized,
net </div></td> <td> </td> <td nowrap="nowrap"
align="left">$</td> <td align="right">(3,866</td> <td
nowrap="nowrap">)</td> <td> </td> <td align="left">$</td>
<td align="right">3,175</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Unproved property purchased
with stock </div></td> <td> </td> <td
align="left">$</td> <td align="right">15,920</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">—</td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Net cash provided from
operating activities included: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Interest
paid </div></td> <td> </td> <td align="left">$</td>
<td align="right">51,185</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">43,189</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Income
taxes paid </div></td> <td> </td> <td
align="left">$</td> <td align="right">507</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">2,320</td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 15 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(15) COMMITMENTS
AND CONTINGENCIES</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Transportation Contracts</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We
have entered firm transportation contracts with various pipelines. Under these
contracts, we are obligated to transport minimum daily gas volumes, as calculated
on a monthly basis, or pay for any deficiencies at a specified reservation
fee rate. In most cases, our production committed to these pipelines is expected
to exceed the minimum daily volumes provided in the contracts. As of June 30,
2009, future minimum transportation fees under our gas transportation commitments
are as follows (in thousands): </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="88%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">2009 remaining </div></td>
<td> </td> <td align="left">$</td> <td
align="right">17,774</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">2010
</div></td> <td> </td> <td> </td>
<td align="right">34,663</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">2011 </div></td>
<td> </td> <td> </td> <td align="right">34,180</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">2012 </div></td>
<td> </td> <td> </td> <td align="right">31,220</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">2013
</div></td> <td> </td> <td> </td>
<td align="right">30,349</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">2014 </div></td> <td> </td>
<td> </td> <td align="right">27,070</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Thereafter
</div></td> <td> </td> <td> </td>
<td align="right">207,240</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td align="left">$</td>
<td align="right">382,496</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>Litigation</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     We
are involved in various legal actions and claims arising in the ordinary course
of our business. While the outcome of these lawsuits cannot be predicted with
certainty, we do not expect these matters to have a material adverse effect
on our financial position, cash flows or results of operations. </div>
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 16 - us-gaap:CapitalizedCostsRelatingToOilAndGasProducingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(16) CAPITALIZED
COSTS AND ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION</b><sup
style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup>
</div> <div align="center"> <table style="font-size: 10pt"
cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">June
30,</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">December 31,</td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2008</td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">(in
thousands)</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">(Restated)</td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Oil
and gas properties: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Properties subject
to depletion </div></td> <td> </td> <td
align="left">$</td> <td align="right">5,370,529</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">5,271,021</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Unproved properties
</div></td> <td> </td> <td> </td>
<td align="right">791,305</td> <td> </td>
<td> </td> <td> </td> <td align="right">757,959</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:45px; text-indent:-15px">Total </div></td>
<td> </td> <td> </td> <td align="right">6,161,834</td>
<td> </td> <td> </td> <td> </td>
<td align="right">6,028,980</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Accumulated depreciation,
depletion and amortization </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(1,337,153</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(1,186,934</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:45px; text-indent:-15px">Net capitalized costs
</div></td> <td> </td> <td align="left">$</td>
<td align="right">4,824,681</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">4,842,046</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <tr>
<td width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup
style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
<td> </td> <td>Includes capitalized asset retirement
costs and associated accumulated amortization.</td> </tr> </table>
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 17 - us-gaap:CostIncurredInOilAndGasPropertyAcquisitionExplorationAndDevelopmentActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(17) COSTS
INCURRED FOR PROPERTY ACQUISITIONS, EXPLORATION AND DEVELOPMENT</b><sup
style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup>
</div> <div align="center"> <table style="font-size: 10pt"
cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Six
Months</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">Ended</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Year
Ended</td> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2">June 30,</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">December
31,</td> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2009</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">2008</td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6">(in
thousands)</td> <td> </td> </tr> <!--
End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Acquisitions: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:45px; text-indent:-15px">Unproved leasehold
</div></td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">99,446</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:45px; text-indent:-15px">Proved oil and gas properties
</div></td> <td> </td> <td> </td>
<td align="right">443</td> <td> </td> <td> </td>
<td> </td> <td align="right">251,471</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:45px; text-indent:-15px">Asset retirement obligations
</div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">251</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Acreage
purchases </div></td> <td> </td> <td> </td>
<td align="right">110,093</td> <td> </td>
<td> </td> <td> </td> <td align="right">494,341</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Development </div></td>
<td> </td> <td> </td> <td align="right">243,125</td>
<td> </td> <td> </td> <td> </td>
<td align="right">729,268</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Exploration: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Drilling
</div></td> <td> </td> <td> </td>
<td align="right">31,678</td> <td> </td>
<td> </td> <td> </td> <td align="right">133,116</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Expense
</div></td> <td> </td> <td> </td>
<td align="right">22,753</td> <td> </td>
<td> </td> <td> </td> <td align="right">63,560</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:45px; text-indent:-15px">Stock-based compensation
expense </div></td> <td> </td> <td> </td>
<td align="right">1,954</td> <td> </td> <td> </td>
<td> </td> <td align="right">4,130</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Gas gathering facilities
</div></td> <td> </td> <td> </td>
<td align="right">14,581</td> <td> </td>
<td> </td> <td> </td> <td align="right">47,056</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:45px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:60px; text-indent:-15px">Subtotal </div></td>
<td> </td> <td> </td> <td align="right">424,627</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,822,639</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Asset retirement obligations
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(3,866</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">4,647</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:75px; text-indent:-15px">Total
costs incurred </div></td> <td> </td> <td
align="left">$</td> <td align="right">420,761</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,827,286</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:45px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <tr>
<td width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup
style="font-size: 85%; vertical-align: text-top">(a)</sup></td>
<td> </td> <td>Includes costs incurred whether
capitalized or expensed.</td> </tr> </table> <!-- Folio
--> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div
style="font-family: 'Times New Roman',Times,serif"> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 18 - rrc:RestatementOfPriorPeriodsTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>(18) RESTATEMENT OF PRIOR PERIODS</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As
further explained in Footnote 2, we plan to adjust previously reported results
for 2006, 2007 and 2008 for immaterial errors as required by SAB 108. Additionally,
we have restated the second quarter and the six months ended June 30,
2008 to reflect the impact of such errors. The following presents these adjustments
in detail: </div> <div align="center"> <table style="font-size:
6pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="19%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="10"
style="border-bottom: 1px solid #000000">1<sup style="font-size: 85%;
vertical-align: text-top">st</sup> Quarter 2008</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="10"
style="border-bottom: 1px solid #000000">2<sup style="font-size: 85%;
vertical-align: text-top">nd</sup> Quarter 2008</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="10"
style="border-bottom: 1px solid #000000">Six Months 2008</td> <td> </td>
</tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Previously</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Previously</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Previously</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td> </tr> <tr style="font-size: 6pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Reported</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjustments</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjusted</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Reported</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjustments</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjusted</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Reported</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjustments</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjusted</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Oil and gas sales </div></td> <td> </td>
<td align="left">$</td> <td align="right">307,384</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">307,384</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">347,622</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">347,622</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">655,006</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">655,006</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Transportation
and gathering </div></td> <td> </td> <td> </td>
<td align="right">1,129</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right">1,129</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,224</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right">1,224</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,353</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,353</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Derivative fair value income
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(123,767</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(123,767</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(198,410</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">1,726</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(196,684</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(322,177</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">1,726</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(320,451</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Other </div></td>
<td> </td> <td> </td> <td align="right">20,592</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">20,592</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(359</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(359</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">20,233</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">20,233</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Total revenues </div></td>
<td> </td> <td> </td> <td align="right">205,338</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">205,338</td>
<td> </td> <td> </td> <td> </td>
<td align="right">150,077</td> <td> </td>
<td> </td> <td> </td> <td align="right">1,726</td>
<td> </td> <td> </td> <td> </td>
<td align="right">151,803</td> <td> </td>
<td> </td> <td> </td> <td align="right">355,415</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,726</td> <td> </td> <td> </td>
<td> </td> <td align="right">357,141</td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Direct operating costs
</div></td> <td> </td> <td> </td>
<td align="right">32,950</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">32,950</td> <td> </td>
<td> </td> <td> </td> <td align="right">37,228</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">37,228</td>
<td> </td> <td> </td> <td> </td>
<td align="right">70,178</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">70,178</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Production and ad valorem
taxes </div></td> <td> </td> <td> </td>
<td align="right">13,840</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">13,840</td> <td> </td>
<td> </td> <td> </td> <td align="right">16,056</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">16,056</td>
<td> </td> <td> </td> <td> </td>
<td align="right">29,896</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">29,896</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Exploration </div></td> <td> </td>
<td> </td> <td align="right">16,593</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">16,593</td>
<td> </td> <td> </td> <td> </td>
<td align="right">19,462</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">19,462</td> <td> </td>
<td> </td> <td> </td> <td align="right">36,055</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">36,055</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Abandonment
& impairment of unproved properties </div></td> <td> </td>
<td> </td> <td align="right">1,437</td> <td> </td>
<td> </td> <td> </td> <td align="right">687</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,124</td> <td> </td> <td> </td>
<td> </td> <td align="right">5,348</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(1,874</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">3,474</td>
<td> </td> <td> </td> <td> </td>
<td align="right">6,785</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(1,187</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">5,598</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">General
and administrative expense </div></td> <td> </td>
<td> </td> <td align="right">17,412</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">17,412</td>
<td> </td> <td> </td> <td> </td>
<td align="right">23,938</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">23,938</td> <td> </td>
<td> </td> <td> </td> <td align="right">41,350</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">41,350</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Deferred
compensation plan </div></td> <td> </td>
<td> </td> <td align="right">20,611</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">20,611</td>
<td> </td> <td> </td> <td> </td>
<td align="right">7,539</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right">7,539</td>
<td> </td> <td> </td> <td> </td>
<td align="right">28,150</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">28,150</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Interest expense </div></td> <td> </td>
<td> </td> <td align="right">23,146</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">23,146</td>
<td> </td> <td> </td> <td> </td>
<td align="right">23,842</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">23,842</td> <td> </td>
<td> </td> <td> </td> <td align="right">46,988</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">46,988</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Depletion,
depreciation and amortization </div></td> <td> </td>
<td> </td> <td align="right">70,133</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">70,133</td>
<td> </td> <td> </td> <td> </td>
<td align="right">72,115</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">72,115</td> <td> </td>
<td> </td> <td> </td> <td align="right">142,248</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">142,248</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Total costs </div></td>
<td> </td> <td> </td> <td align="right">196,122</td>
<td> </td> <td> </td> <td> </td>
<td align="right">687</td> <td> </td> <td> </td>
<td> </td> <td align="right">196,809</td>
<td> </td> <td> </td> <td> </td>
<td align="right">205,528</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(1,874</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">203,654</td>
<td> </td> <td> </td> <td> </td>
<td align="right">401,650</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(1,187</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">400,463</td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income
(loss) from operations </div></td> <td> </td>
<td> </td> <td align="right">9,216</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(687</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">8,529</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(55,451</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">3,600</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(51,851</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(46,235</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">2,913</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(43,322</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Income tax expense
(benefit) </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Current
</div></td> <td> </td> <td> </td>
<td align="right">886</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right">886</td>
<td> </td> <td> </td> <td> </td>
<td align="right">949</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right">949</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,835</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,835</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Deferred
</div></td> <td> </td> <td> </td>
<td align="right">6,590</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(3,796</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">2,794</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(21,818</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">1,373</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(20,445</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(15,228</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(2,423</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(17,651</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total
</div></td> <td> </td> <td> </td>
<td align="right">7,476</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(3,796</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">3,680</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(20,869</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">1,373</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(19,496</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(13,393</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(2,423</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(15,816</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss) </div></td>
<td> </td> <td align="left">$</td> <td
align="right">1,740</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">3,109</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">4,849</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(34,582</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">2,227</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(32,355</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(32,842</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="left">$</td> <td
align="right">5,336</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(27,506</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings
(loss) per share: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic
</div></td> <td> </td> <td align="left">$</td>
<td align="right">0.01</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.02</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">0.03</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.23</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">0.01</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(0.22</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(0.22</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="left">$</td> <td
align="right">0.04</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.18</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted
</div></td> <td> </td> <td align="left">$</td>
<td align="right">0.01</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.02</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">0.03</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.23</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">0.01</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(0.22</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(0.22</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="left">$</td> <td
align="right">0.04</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.18</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="center"> <table style="font-size:
6pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="19%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="10"
style="border-bottom: 1px solid #000000">Year Ended December 31, 2008</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="10" style="border-bottom: 1px solid #000000">Year
Ended December 31, 2007</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px
solid #000000">Year Ended December 31, 2006</td> <td> </td>
</tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Previously</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Previously</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2">Previously</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td> </tr> <tr style="font-size: 6pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Reported</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjustments</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjusted</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Reported</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjustments</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjusted</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Reported</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjustments</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px
solid #000000">Adjusted</td> <td> </td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Oil and gas sales </div></td> <td> </td>
<td align="left">$</td> <td align="right">1,226,560</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,226,560</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">862,537</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">862,537</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">599,139</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">599,139</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Transportation
and gathering </div></td> <td> </td> <td> </td>
<td align="right">4,577</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4,577</td> <td> </td> <td> </td>
<td> </td> <td align="right">2,290</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,290</td> <td> </td> <td> </td>
<td> </td> <td align="right">2,422</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,422</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Derivative fair value income
</div></td> <td> </td> <td> </td>
<td align="right">70,135</td> <td> </td>
<td> </td> <td> </td> <td align="right">1,726</td>
<td> </td> <td> </td> <td> </td>
<td align="right">71,861</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(7,767</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(1,726</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(9,493</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">142,395</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">142,395</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Other </div></td>
<td> </td> <td> </td> <td align="right">21,675</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">21,675</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5,031</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5,031</td> <td> </td> <td> </td>
<td> </td> <td align="right">856</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">856</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Total revenues </div></td>
<td> </td> <td> </td> <td align="right">1,322,947</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,726</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,324,673</td>
<td> </td> <td> </td> <td> </td>
<td align="right">862,091</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(1,726</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">860,365</td>
<td> </td> <td> </td> <td> </td>
<td align="right">744,812</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">744,812</td> <td> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Direct operating costs </div></td> <td> </td>
<td> </td> <td align="right">142,387</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">142,387</td>
<td> </td> <td> </td> <td> </td>
<td align="right">107,499</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">107,499</td> <td> </td>
<td> </td> <td> </td> <td align="right">81,261</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">81,261</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Production
and ad valorem taxes </div></td> <td> </td>
<td> </td> <td align="right">55,172</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">55,172</td>
<td> </td> <td> </td> <td> </td>
<td align="right">42,443</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">42,443</td> <td> </td>
<td> </td> <td> </td> <td align="right">36,415</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">36,415</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Exploration </div></td>
<td> </td> <td> </td> <td align="right">67,690</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">67,690</td>
<td> </td> <td> </td> <td> </td>
<td align="right">43,345</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,437</td>
<td> </td> <td> </td> <td> </td>
<td align="right">45,782</td> <td> </td>
<td> </td> <td> </td> <td align="right">44,088</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">44,088</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Abandonment
& impairment of unproved properties </div></td> <td> </td>
<td> </td> <td align="right">47,906</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(551</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">47,355</td> <td> </td>
<td> </td> <td> </td> <td align="right">6,750</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4,486</td> <td> </td> <td> </td>
<td> </td> <td align="right">11,236</td>
<td> </td> <td> </td> <td> </td>
<td align="right">257</td> <td> </td> <td> </td>
<td> </td> <td align="right">4,292</td> <td> </td>
<td> </td> <td> </td> <td align="right">4,549</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">General and administration
expense </div></td> <td> </td> <td> </td>
<td align="right">92,308</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">92,308</td> <td> </td>
<td> </td> <td> </td> <td align="right">69,670</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">69,670</td>
<td> </td> <td> </td> <td> </td>
<td align="right">49,886</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">49,886</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Deferred compensation
plan </div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(24,689</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(24,689</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">28,332</td>
<td> </td> <td> </td> <td> </td>
<td align="right">7,106</td> <td> </td> <td> </td>
<td> </td> <td align="right">35,438</td>
<td> </td> <td> </td> <td> </td>
<td align="right">6,873</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(7,106</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(233</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Interest
expense </div></td> <td> </td> <td> </td>
<td align="right">99,748</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">99,748</td> <td> </td>
<td> </td> <td> </td> <td align="right">77,737</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">77,737</td>
<td> </td> <td> </td> <td> </td>
<td align="right">55,849</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">55,849</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Depletion, depreciation
and amortization </div></td> <td> </td> <td> </td>
<td align="right">299,831</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">299,831</td> <td> </td>
<td> </td> <td> </td> <td align="right">220,578</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">220,578</td>
<td> </td> <td> </td> <td> </td>
<td align="right">154,482</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">154,482</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total
costs </div></td> <td> </td> <td> </td>
<td align="right">780,353</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(551</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">779,802</td>
<td> </td> <td> </td> <td> </td>
<td align="right">596,354</td> <td> </td>
<td> </td> <td> </td> <td align="right">14,029</td>
<td> </td> <td> </td> <td> </td>
<td align="right">610,383</td> <td> </td>
<td> </td> <td> </td> <td align="right">429,111</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(2,814</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">426,297</td> <td> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Income from continuing
operations before tax </div></td> <td> </td>
<td> </td> <td align="right">542,594</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,277</td> <td> </td> <td> </td>
<td> </td> <td align="right">544,871</td>
<td> </td> <td> </td> <td> </td>
<td align="right">265,737</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(15,755</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">249,982</td>
<td> </td> <td> </td> <td> </td>
<td align="right">315,701</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,814</td>
<td> </td> <td> </td> <td> </td>
<td align="right">318,515</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Income tax expense </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Current </div></td>
<td> </td> <td> </td> <td align="right">4,268</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">4,268</td>
<td> </td> <td> </td> <td> </td>
<td align="right">320</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">320</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,912</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,912</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Deferred
</div></td> <td> </td> <td> </td>
<td align="right">192,168</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(2,605</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">189,563</td>
<td> </td> <td> </td> <td> </td>
<td align="right">98,441</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(2,454</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">95,987</td>
<td> </td> <td> </td> <td> </td>
<td align="right">119,840</td> <td> </td>
<td> </td> <td> </td> <td align="right">886</td>
<td> </td> <td> </td> <td> </td>
<td align="right">120,726</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Total </div></td>
<td> </td> <td> </td> <td align="right">196,436</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(2,605</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">193,831</td> <td> </td>
<td> </td> <td> </td> <td align="right">98,761</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(2,454</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">96,307</td> <td> </td>
<td> </td> <td> </td> <td align="right">121,752</td>
<td> </td> <td> </td> <td> </td>
<td align="right">886</td> <td> </td> <td> </td>
<td> </td> <td align="right">122,638</td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Net income from continuing
operations </div></td> <td> </td> <td> </td>
<td align="right">346,158</td> <td> </td>
<td> </td> <td> </td> <td align="right">4,882</td>
<td> </td> <td> </td> <td> </td>
<td align="right">351,040</td> <td> </td>
<td> </td> <td> </td> <td align="right">166,976</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(13,301</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">153,675</td> <td> </td>
<td> </td> <td> </td> <td align="right">193,949</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,928</td> <td> </td> <td> </td>
<td> </td> <td align="right">195,877</td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Discontinued
operations </div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">63,593</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">63,593</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(35,247</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(35,247</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net
income </div></td> <td> </td> <td align="left">$</td>
<td align="right">346,158</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">4,882</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">351,040</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">230,569</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(13,301</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="left">$</td> <td
align="right">217,268</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">158,702</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1,928</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">160,630</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings
per common share: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic
— income from continuing operations </div></td> <td> </td>
<td align="left">$</td> <td align="right">2.29</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">0.03</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2.32</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.16</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.09</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">1.07</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1.45</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.01</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.46</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:45px; text-indent:-15px">— discontinued operations
</div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.44</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.44</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(0.26</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(0.26</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">—
net income </div></td> <td> </td> <td
align="left">$</td> <td align="right">2.29</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">0.03</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2.32</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.60</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.09</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">1.51</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1.19</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.01</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.20</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Earnings per common share:
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Diluted —
income from continuing operations </div></td> <td> </td>
<td align="left">$</td> <td align="right">2.22</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">0.03</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2.25</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.11</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.09</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">1.02</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1.39</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.01</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.40</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:45px; text-indent:-15px">— discontinued operations
</div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.43</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">0.43</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(0.25</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(0.25</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">—
net income </div></td> <td> </td> <td
align="left">$</td> <td align="right">2.22</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">0.03</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">2.25</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.54</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(0.09</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">1.45</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1.14</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">0.01</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1.15</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 19 - us-gaap:DescriptionOfNewAccountingPronouncementsNotYetAdopted-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>(19) ACCOUNTING
STANDARDS NOT YET ADOPTED</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">     In
December 2008, the SEC announced that it had approved revisions to
its oil and gas reporting disclosures. The new disclosure requirements include
provisions that: </div> <div style="margin-top: 6pt"> <table
width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt"> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Introduce a new definition
of oil and gas producing activities. This new definition allows companies
to include in their reserve base volumes from unconventional resources. Such
unconventional resources include bitumen extracted from oil sands and oil
and gas extracted from coal beds and shale formations.</td> </tr>
<tr> <td style="font-size: 6pt"> </td> </tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Report oil and gas reserves
using an unweighted average price using the prior 12-month period, based on
the closing prices on the first day of each month, rather than year-end prices.
The SEC indicated that they will continue to communicate with the FASB staff
to align their accounting standards with these rules. The FASB currently requires
a single-day, year-end price for accounting purposes.</td> </tr>
<tr> <td style="font-size: 6pt"> </td> </tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Permit companies to disclose
their probable and possible reserves on a voluntary basis. In the past, proved
reserves were the only reserves allowed in the disclosures.</td> </tr>
<tr> <td style="font-size: 6pt"> </td> </tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Requires companies to
provide additional disclosure regarding the aging of proved undeveloped reserves.</td>
</tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Permit the use of reliable
technologies to determine proved reserves if those technologies have been
demonstrated empirically to lead to reliable conclusions about reserves volumes.</td>
</tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Replace the existing
“certainty” test for areas beyond one offsetting drilling
unit from a productive well with a “reasonable certainty”
test.</td> </tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Require additional disclosures
regarding the qualifications of the chief technical person who oversees the
company’s overall reserve estimation process. Additionally, disclosures
regarding internal controls over reserve estimation, as well as a report addressing
the independence and qualifications of its reserves preparer or auditor will
be mandatory.</td> </tr> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">     We
will begin complying with the disclosure requirements in our annual report
on Form 10-K for the year ending December 31, 2009. The new rules
may not be applied to disclosures in quarterly reports prior to the first
annual report in which the revised disclosures are required. We are currently
in the process of evaluating the new requirements. </div> <!-- Folio
--> <!-- /Folio --> </div> </body> </html>
No false --12-31
2009-06-30
10-Q
0000315852
157255568
Yes
Large Accelerated
Filer 9963751000
RANGE
RESOURCES CORPORATION No Yes
250640000 131436000
162201000
99065000
47309000 54234000
56434000
65114000
77507000
54868000
1695268000 1729190000
954000
753000
1488000
2333000
2055000
2064000
5551879000 5435999000
404311000 293252000
4018000
73000
753000
2152000
-3945000
1399000
0.08
0.04
0.08
0.04
0.01
0.01
475000000
475000000
155609387
157255400
1556000 1573000
-282470000
-202337000
-29914000
-76371000
400463000 203654000
467843000 242841000
1835000
949000
619000
619000
28150000
7539000
13190000
756000
93247000
109730000
-17651000
-20445000
-4318000
-23145000
32984000
23986000
779218000
773277000
142248000
72115000
173033000
88713000
221430000 169856000
5231000 0
-320451000
-196684000
65691000
-9856000
10000 2412000
0
2534000
2691000
97000
-0.18 -0.22
-0.05 -0.26
-0.18 -0.22
-0.05
-0.26 147126000
150979000 5598000
3474000
60526000
40954000
36055000 19462000
24707000 11368000
-19972000
1943000
2353000
1224000
1647000
2152000
41350000
23938000
54013000
29103000
-19000
5526000
-15816000 -19496000
-3699000
-22526000 22384000
-72008000
-94657000
46453000
9739000
1283000
-29839000
-2154000
46988000 23842000
56184000 29555000
20516000 23134000
19927000 22179000
70178000 37228000
70369000 34828000
5551879000
5435999000
353514000 237266000
693000000 403000000
429991000
-52043000
-778798000
-214992000
344862000
268434000
1186934000
1337153000
6028980000
6161834000
4842046000
4824681000
83890000
84232000
655006000 347622000
395712000 192523000
66937000 75135000
27762000
30975000
-65822000
-33488000
-282726000
-200957000
43183000
-3000000
20233000 -359000
-6181000 -4387000
0
-9079000
5510000
6161000
12196000 12541000
404922000
107321000
10800000
6400000
5848000
3605000
407313000
275999000
19895000
14849000
1
1
10000000
10000000
0 0
0
0
0 0
288073000
6002000
250000000
285201000
678000000
451000000
4306000 3683000
-73000
-15000
2891000
-38212000
3320000
1981000
66660000
182122000
29896000 16056000
15821000 7564000
-27506000 -32355000
-7275000 -39883000
142662000
157066000
86228000
91952000
775500000
741000000
9256000
131000
-43322000
-51851000
-10974000
-62409000
685568000
665752000
357141000 151803000
456869000 180432000
43601000 32794000
2451342000
2442826000
1097668000
1383134000
233900 233900
8557000 8557000
297501000
30070000
149215000
150772000
154056000
154389000
149215000
150772000
154056000
154389000