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FOREST OIL CORPORATION
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<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
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<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(1) BASIS OF PRESENTATION
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The Condensed
Consolidated Financial Statements included herein are unaudited and include the
accounts of Forest Oil Corporation and its consolidated subsidiaries
(collectively, "Forest" or the "Company"). In the opinion of management, all
adjustments, which are of a normal recurring nature, have been made which are
necessary for a fair presentation of the financial position of Forest at
June 30, 2009, the results of its operations for the three and six months
ended June 30, 2009 and 2008, and its cash flows for the six months ended
June 30, 2009 and 2008. Interim results are not necessarily indicative of
expected annual results because of the impact of fluctuations in prices received
for liquids (oil, condensate, and natural gas liquids) and natural gas and other
factors. Management has evaluated events and transactions occurring after the
balance sheet date through August 7, 2009, the date that the financial
statements were issued. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In the course of
preparing the Condensed Consolidated Financial Statements, management makes
various assumptions, judgments, and estimates to determine the reported amounts
of assets, liabilities, revenues, and expenses, and in the disclosures of
commitments and contingencies. Changes in these assumptions, judgments, and
estimates will occur as a result of the passage of time and the occurrence of
future events and, accordingly, actual results could differ from amounts
previously established. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The more significant
areas requiring the use of assumptions, judgments, and estimates relate to
volumes of oil and gas reserves used in calculating depletion, the amount of
future net revenues used in computing the ceiling test limitations, and the
amount of future capital costs and abandonment obligations used in such
calculations, determining impairments of investments in unproved properties,
valuing deferred tax assets and goodwill, and estimating fair values of
financial instruments, including derivative instruments. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Certain amounts in the
prior year financial statements have been reclassified to conform to the 2009
financial statement presentation. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> For a more complete
understanding of Forest's operations, financial position, and accounting
policies, reference is made to the consolidated financial statements of Forest,
and related notes thereto, filed with Forest's Annual Report on Form 10-K for
the year ended December 31, 2008, previously filed with the Securities and
Exchange Commission. </FONT></P></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(2) EARNINGS (LOSS) PER SHARE AND
COMPREHENSIVE EARNINGS (LOSS) </B></FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Earnings (Loss) per Share
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Basic earnings (loss) per
share is computed by dividing net earnings (loss) attributable to common stock
by the weighted average number of common shares outstanding during each period.
Under the treasury stock method, diluted earnings (loss) per share is computed
by dividing net earnings (loss) adjusted for the effects of certain contracts
that provide the issuer or holder with a choice between settlement methods by
the weighted average number of common shares outstanding adjusted for the
dilutive effect, if any, of potential common shares (i.e. stock options,
unvested restricted stock grants, and unvested phantom stock units that may be
settled in shares). No potential common shares shall be included in the
computation of any diluted per share amount when a net loss exists. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In June 2008, the
Financial Accounting Standards Board ("FASB") issued FASB Staff Position ("FSP")
No. EITF 03-6-1, </FONT><FONT size=2><I>Determining Whether Instruments
Granted in Share-Based Payment <!-- SEQ.=1,FOLIO='5',FILE='DISK134:[09ZCF1.09ZCF17401]DI17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_6></A>Transactions Are Participating
Securities</I></FONT><FONT size=2> ("FSP EITF 03-6-1"), which addressed
whether instruments granted in share-based payment transactions are
participating securities prior to vesting and, therefore, need to be included in
the earnings allocation in computing basic earnings per share under the
two-class method. FSP EITF 03-6-1 was effective for financial statements
issued for fiscal years beginning after December 15, 2008 and interim
periods within those years. Accordingly, Forest adopted this pronouncement as of
January 1, 2009. All prior period earnings per share data presented have
been adjusted retrospectively to conform to the provisions of this
pronouncement. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Restricted stock issued
under Forest's stock incentive plans has the right to receive non-forfeitable
cash dividends, participating on an equal basis with common stock. Phantom stock
units issued to directors under Forest's stock incentive plans also have the
right to receive non-forfeitable cash dividends, participating on an equal basis
with common stock, while phantom stock units issued to employees do not
participate in dividends. Stock options issued under Forest's stock incentive
plans do not participate in dividends. Therefore, restricted stock issued to
employees and directors and phantom stock units issued to directors are
participating securities and earnings must now be allocated to both common stock
and these participating securities in the basic earnings per share calculation.
However, these participating securities do not have a contractual obligation to
share in Forest's losses. Therefore, in periods of net loss, none of the loss is
allocated to these participating securities, consequently, the adoption of FSP
EITF 03-6-1 will have no impact on Forest's basic earnings per share for
those periods. In periods of net earnings, however, basic earnings per share
calculated under the two-class method will likely be lower than it would had it
been prior to the adoption of FSP EITF 03-6-1. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Stock options, unvested
restricted stock grants, and unvested phantom stock units that may be settled in
shares were not included in the calculation of diluted loss per share for the
six months ended June 30, 2009 and the three and six months ended
June 30, 2008 as their inclusion would have an antidilutive effect.
Unvested restricted stock grants and unvested participating phantom stock units
were not included in the calculation of diluted earnings per share for the three
months ended June 30, 2009 as their inclusion would have an antidilutive
effect. </FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><!-- SEQ.=2,FOLIO='6',FILE='DISK134:[09ZCF1.09ZCF17401]DI17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_7></A></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The following sets forth
the calculation of basic and diluted earnings (loss) per share for the periods
presented. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=289></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=34></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=40></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Three Months Ended<BR>June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Six Months Ended<BR>June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(In
Thousands, Except Per Share Amounts)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Net earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>37,141</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(68,018</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,140,632</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(72,750</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Net earnings attributable to participating
securities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(638</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Net earnings (loss) attributable to common
stock for basic earnings per share</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>36,503</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(68,018</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,140,632</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(72,750</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Adjustment for liability classified stock-based
compensation awards</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(164</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Adjustment to net earnings attributable to
participating securities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Net earnings (loss) for diluted earnings per
share</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>36,341</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(68,018</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,140,632</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(72,750</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P
style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Weighted average common shares outstanding
during the period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>101,314</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>87,717</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>98,458</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>87,506</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Dilutive effects of potential common
shares</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>279</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Weighted average common shares outstanding,
including the effects of dilutive potential common shares</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>101,593</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>87,717</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>98,458</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>87,506</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P
style="MARGIN-TOP: 11pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Basic earnings (loss) per common
share</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>.36</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>(.78</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>(11.58</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>(.83</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Diluted earnings (loss) per common
share</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>.36</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.78</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(11.58</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.83</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Comprehensive Earnings (Loss)
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Comprehensive earnings
(loss) is a term used to refer to net earnings (loss) plus other comprehensive
income (loss). Other comprehensive income (loss) is comprised of revenues,
expenses, gains, and losses that under generally accepted accounting principles
are reported as separate components of shareholders' equity instead of net
earnings (loss). Items included in Forest's other comprehensive income (loss)
for the three and six months ended June 30, 2009 and 2008 are foreign
currency losses related to the translation of the assets and liabilities of
Forest's Canadian operations and changes in unfunded postretirement benefits.
</FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The components of
comprehensive earnings (loss) are as follows: </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=260></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=40></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Three Months Ended<BR>June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Six Months Ended<BR>June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Net earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>37,141</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(68,018</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,140,632</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(72,750</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Other comprehensive income
(loss):</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Foreign currency translation gains
(losses)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>16,858</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,308</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,032</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(11,982</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unfunded postretirement benefits, net of
tax</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>632</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>668</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total comprehensive earnings
(loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>54,631</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(65,710</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,135,932</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(84,732</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD
style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(3) STOCK-BASED COMPENSATION
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The table below sets
forth total stock-based compensation recorded during the three and six months
ended June 30, 2009 and 2008, and the remaining unamortized amounts and the
weighted average amortization period remaining as of June 30, 2009.
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=240></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=39></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=34></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=37></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=34></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Stock<BR>Options </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Restricted<BR>Stock </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Phantom<BR>Stock Units
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total<SUP>(1)</SUP> </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2><B>Three months ended June 30,
2009:</B></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total stock-based compensation
costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>60</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,664</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>377</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>7,101</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Less: stock-based compensation costs
capitalized</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(27</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,741</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(198</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,966</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Stock-based compensation costs
expensed</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>33</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,923</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>179</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,135</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P
style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2><B>Six months ended June 30,
2009:</B></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total stock-based compensation
costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>337</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>12,648</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>301</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>13,286</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Less: stock-based compensation costs
capitalized</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(152</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,087</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(153</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,392</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Stock-based compensation costs
expensed</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>185</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>7,561</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>148</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>7,894</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P
style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unamortized stock-based compensation costs as
of June 30, 2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>1,861</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>47,066</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>5,081</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><BR><SUP>(2)</SUP></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>54,008</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Weighted average amortization period
remaining</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1.5 years</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2.0 years</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2.6 years</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2.0 years</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P
style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2><B>Three months ended June 30,
2008:</B></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total stock-based compensation
costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>694</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,756</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,165</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>9,615</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Less: stock-based compensation costs
capitalized</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(301</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,083</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,948</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,332</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Stock-based compensation costs
expensed</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>393</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,673</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,217</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,283</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P
style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2><B>Six months ended June 30,
2008:</B></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total stock-based compensation
costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,529</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>10,192</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,818</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>15,539</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Less: stock-based compensation costs
capitalized</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(648</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,536</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,341</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(6,525</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Stock-based compensation costs
expensed</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>881</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,656</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,477</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>9,014</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>The Company also maintains an
employee stock purchase plan (which is not included in the table) under which
$.2 million and $.3 million of compensation cost was recognized for
the three and six months ended June 30, 2009, respectively, and
$.1 million and $.3 million of compensation cost was recognized for
the three and six months ended June 30, 2008, respectively.
<BR><BR></FONT>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(2)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>Based on the closing price of the
Company's common stock on June 30, 2009. </FONT>
<P style="FONT-FAMILY: times"><FONT size=1><!-- SEQ.=4,FOLIO='8',FILE='DISK134:[09ZCF1.09ZCF17401]DI17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_9></A></FONT></P></DD></DL>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Stock Options
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The following table
summarizes stock option activity in the Company's stock-based compensation plans
for the six months ended June 30, 2009. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=206></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=36></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=55></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=61></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=36></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Number of<BR>Shares </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average
Exercise<BR>Price </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Aggregate<BR>Intrinsic Value<BR>(In
Thousands)<SUP>(1)</SUP> </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Number of<BR>Shares<BR>Exercisable
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Outstanding at January 1,
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,097,267</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>21.13</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>376</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,898,316</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Granted</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Exercised</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,115</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>10.01</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Cancelled</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(86,037</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>22.18</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times" align=right> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Outstanding at June 30, 2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,010,115</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>21.09</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>10</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,904,457</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times" align=right> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>The intrinsic value of a stock
option is the amount by which the current market value of the underlying stock
exceeds the exercise price of the option. </FONT></DD></DL>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Restricted Stock and Phantom
Stock Units </I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The following table
summarizes the restricted stock and phantom stock unit activity in the Company's
stock-based compensation plans for the six months ended June 30, 2009.
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=222></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=36></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=51></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=34></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=51></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Restricted Stock </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Phantom Stock Units </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Number of<BR>Shares </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average Grant<BR>Date
Fair Value </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Number of<BR>Shares </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Weighted<BR>Average Grant<BR>Date
Fair Value </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unvested at January 1, 2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,490,795</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>52.31</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>163,954</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>51.10</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Awarded</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>792,083</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>18.13</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>320,628</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>17.97</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Vested</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(43,495</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>50.84</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,429</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>19.45</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Forfeited</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(24,250</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>52.62</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(17,075</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>48.40</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times" align=right> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times" align=right> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unvested at June 30, 2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,215,133</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>40.11</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>464,078</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>28.54</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times" align=right> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times" align=right> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> Of the unvested units of
phantom stock at June 30, 2009, 228,500 units can be settled in cash,
shares of common stock, or a combination of both, while the remaining 235,578
units can only be settled in cash. The phantom stock units have been accounted
for as a liability within the Condensed Consolidated Financial Statements.
</FONT></P></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(4) DEBT </B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Components of debt are as
follows: </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=127></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=36></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=40></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=40></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>December 31, 2008
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Principal </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Unamortized<BR>Premium<BR>(Discount) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other<SUP>(3)</SUP> </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Principal </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Unamortized<BR>Premium<BR>(Discount) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other<SUP>(3)</SUP> </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>U.S. Credit Facility</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>550,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>550,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,190,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,190,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Canadian Credit Facility</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>134,989</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>134,989</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>94,415</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>94,415</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>8% Senior Notes due 2011</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>285,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,229</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,060</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>290,289</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>285,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,875</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,475</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>291,350</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>7% Senior Subordinated Notes due
2013<SUP>(1)</SUP></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>112</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>110</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,112</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(25</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,087</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>8<SUP>1</SUP>/<SMALL>2</SMALL>% Senior Notes
due 2014<SUP>(2)</SUP></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>600,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(26,964</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>573,036</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>7<SUP>3</SUP>/<SMALL>4</SMALL>% Senior Notes
due 2014</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>150,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,154</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>8,610</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>157,456</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>150,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,273</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>9,492</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>158,219</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>7<SUP>1</SUP>/<SMALL>4</SMALL>% Senior Notes
due 2019</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,000,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>562</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,000,562</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,000,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>590</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,000,590</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total debt</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,720,101</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(24,329</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>10,670</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,706,442</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,720,527</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,167</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>11,967</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,735,661</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>In June 2009, the Company
repurchased $1.0 million in principal amount of 7% senior subordinated
notes due 2013 at 97% of par value. <BR><BR></FONT>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(2)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>In February 2009, the Company
issued $600 million in principal amount of
8<SUP>1</SUP>/<SMALL>2</SMALL>% senior notes due 2014 at 95.15% of par for
proceeds of $559.8 million (net of related initial purchaser discounts)
and used the net proceeds to pay down outstanding balances on the Company's
U.S. credit facility. <BR><BR></FONT>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(3)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>Represents the unamortized portion
of gains realized upon termination of interest rate swaps that were accounted
for as fair value hedges. The gains are being amortized as a reduction of
interest expense over the terms of the notes. </FONT></DD></DL>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Bank Credit Facilities
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Effective as of
March 16, 2009, Forest entered into the Second Amendment (the "Second
Amendment") to its second amended and restated combined credit agreements dated
as of June 6, 2007 that amended certain definitions and covenants of the
credit agreements, including the total debt outstanding-to-EBITDA ratio. The
second amended and restated combined credit agreements consist of a
$1.65 billion U.S. credit facility (the "U.S. Facility") with a syndicate
of banks led by JPMorgan Chase Bank, N.A., and a $150 million Canadian
credit facility (the "Canadian Facility," and together with the U.S. Facility,
the "Credit Facilities") with a syndicate of banks led by JPMorgan Chase Bank,
N.A., Toronto Branch. The Credit Facilities will mature in June 2012.
</FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Forest's availability
under the Credit Facilities is governed by a borrowing base (the "Global
Borrowing Base"). As a result of issuing $600 million of
8<SUP>1</SUP>/<SMALL>2</SMALL>% senior notes due 2014 in February 2009, Forest's
borrowing base was lowered from $1.8 billion to $1.62 billion
effective February 17, 2009. As a result of the adjustment to the Global
Borrowing Base, Forest reallocated amounts under the U.S. Facility and Canadian
Facility and currently has allocated $1.47 billion to the U.S. Facility and
$150 million to the Canadian Facility. On March 16, 2009, Forest
announced that its bank group <!-- SEQ.=6,FOLIO='10',FILE='DISK134:[09ZCF1.09ZCF17401]DK17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_11></A>reaffirmed Forest's $1.62 billion Global
Borrowing Base and $1.8 billion nominal amount related to the Credit
Facilities. The next redetermination of the borrowing base is scheduled to be in
the fourth quarter of 2009. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> At June 30, 2009,
there were outstanding borrowings of $550.0 million under the U.S. Facility
at a weighted average interest rate of 1.4%, and there were outstanding
borrowings of $135.0 million under the Canadian Facility at a weighted
average interest rate of 2.0%. The Company also had used the Credit Facilities
for $2.8 million in letters of credit, leaving an unused borrowing amount
under the Credit Facilities of $932.3 million at June 30, 2009.
</FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>8<SUP>1</SUP>/<SMALL>2</SMALL>%
Senior Notes Due 2014 </I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> On February 17,
2009, Forest issued $600 million in principal amount of
8<SUP>1</SUP>/<SMALL>2</SMALL>% senior notes due 2014 (the
"8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes") at 95.15% of par for net proceeds of
$559.8 million, after deducting initial purchaser discounts. Proceeds from
the 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes were used to pay down outstanding
balances on the Company's U.S. Facility. The 8<SUP>1</SUP>/<SMALL>2</SMALL>%
Notes are jointly and severally guaranteed by Forest Oil Permian Corporation, a
wholly-owned subsidiary of Forest, on an unsecured basis. Interest is payable on
February 15 and August 15 of each year, beginning August 15,
2009. The 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes will mature on February 15,
2014. Forest may redeem up to 35% of the 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes
at any time prior to February 15, 2012, on one or more occasions, with the
proceeds from certain equity offerings at a redemption price equal to 108.5% of
the principal amount, plus accrued but unpaid interest. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Forest may also redeem
the 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes in whole or in part and at any time,
at a "make-whole" redemption price equal to the greater of (i) 100% of the
principal amount of the 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes to be redeemed or
(ii) the sum of the remaining scheduled payments of principal and interest
on the 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes discounted to the date of
redemption at an applicable Treasury yield rate plus 0.50%, plus, in either
case, accrued but unpaid interest. </FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>7% Senior Subordinated Notes
Due 2013 </I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> On June 19, 2009,
Forest repurchased $1.0 million in principal amount of 7% senior
subordinated notes due 2013 at 97% of par value. </FONT></P></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(7) ASSET RETIREMENT OBLIGATIONS
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Forest records the fair
value of a liability for an asset retirement obligation in the period in which
it is incurred with a corresponding increase in the carrying amount of the
related long-lived asset. Subsequent to initial measurement, the asset
retirement liability is required to be accreted each period to its present
value. Capitalized costs are depleted as a component of the full cost pool using
the units-of-production method. Forest's asset retirement obligations consist of
costs related to the plugging of wells, the removal of facilities and equipment,
and site restoration on oil and gas properties. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The following table
summarizes the activity for Forest's asset retirement obligations for the six
months ended June 30, 2009 and 2008. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=293></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Six Months Ended<BR>June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Asset retirement obligations at beginning of
period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>96,991</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>90,505</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Accretion expense</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,181</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,751</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Liabilities incurred</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,334</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,353</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Liabilities settled</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,153</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,292</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Disposition of properties</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,138</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,692</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Liabilities assumed</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,096</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Revisions of estimated
liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,922</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,945</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Impact of foreign currency exchange
rate</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>513</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(483</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Asset retirement obligations at end of
period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>95,806</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>94,293</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Less: current asset retirement
obligations</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,368</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,555</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Long-term asset retirement
obligations</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>91,438</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>91,738</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD
style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(8) FAIR VALUE MEASUREMENTS
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In September 2006, the
FASB issued Statement of Financial Accounting Standards ("SFAS") No. 157,
</FONT><FONT size=2><I>Fair Value Measurements</I></FONT><FONT size=2>
("SFAS 157"). This statement clarifies the definition of fair value,
establishes a framework for measuring fair value, and expands disclosures about
fair value measurements. The Company adopted the provisions of SFAS 157 as
of January 1, 2008 for all financial and nonfinancial assets and
liabilities recognized or disclosed at fair value on a recurring basis. The
Company has also adopted SFAS 157 as it relates to all nonfinancial assets
and liabilities that are not recognized or disclosed on a recurring basis
(e.g. those measured at fair value in a business combination, the initial
recognition of asset retirement obligations, and impairments of goodwill and
other long-lived assets) as of January 1, 2009 pursuant to the provisions
of FASB Staff Position No. FAS 157-2, </FONT><FONT size=2><I>Effective Date
of FASB Statement No. 157</I></FONT><FONT size=2>. The adoption of
SFAS 157 did not materially impact the Company's financial position,
results of operations, or cash flow. </FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><!-- SEQ.=9,FOLIO='13',FILE='DISK134:[09ZCF1.09ZCF17401]DK17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_14></A></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> SFAS 157 establishes
a three-tier fair value hierarchy, which prioritizes the inputs used to measure
fair value. These tiers include: Level 1, defined as unadjusted quoted
prices in active markets for identical assets or liabilities; Level 2,
defined as inputs other than quoted prices in active markets that are either
directly or indirectly observable; and Level 3, defined as unobservable
inputs for use when little or no market data exists, therefore requiring an
entity to develop its own assumptions. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> As of June 30, 2009,
the Company held certain financial assets and liabilities that are required to
be measured at fair value on a recurring basis, including: (i) the
Company's commodity and interest rate derivative instruments and (ii) other
investments, comprised of a zero coupon senior subordinated note due from
Pacific Energy Resources, Ltd. ("PERL") in 2014 at a principal amount at
stated maturity of $60.8 million (the "PERL Note") and 10 million
shares of PERL common stock (the "PERL Shares"). </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The Company used the
income approach in determining the fair value of its derivative instruments,
utilizing present value techniques for valuing its swaps and basis swaps and
option-pricing models for valuing its collars. Inputs to these valuation
techniques include published forward prices, volatilities, and credit risk
considerations, including the incorporation of published interest rates and
credit spreads. All of these inputs are observable, either directly or
indirectly; therefore, the Company's derivative instruments are included within
the Level 2 fair value hierarchy. The Company used the income approach in
determining the fair value of the PERL Shares and Note, both of which are
included within the Level 3 fair value hierarchy. The Company used its own
assumptions about the assumptions that market participants would use regarding
future cash flows and risk-adjusted discount rates in valuing the PERL Shares
and Note. PERL filed voluntary petitions for reorganization under
Chapter 11 of the U.S. Bankruptcy Code in March 2009. The bankruptcy
proceedings are still at an early stage; however, PERL has indicated that the
value of its assets is less than the amount of PERL's senior unsubordinated
debt. Based on these facts and circumstances, the Company estimates the fair
value of the PERL Shares and Note to be zero as of June 30, 2009.
</FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The Company's assets and
liabilities measured at fair value on a recurring basis at June 30, 2009,
were as follows: </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=242></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=61></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=69></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" noWrap align=left colSpan=2>
<DIV
style="MARGIN-BOTTOM: 0pt; WIDTH: 41pt; BORDER-BOTTOM: #000000 1pt solid"><FONT
size=1><B>Description
<!-- COMMAND=ADD_SCROPPEDRULE,41pt --></B></FONT></DIV></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Using<BR>Significant
Other<BR>Observable Inputs<BR>(Level 2) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Using<BR>Significant<BR>Unobservable Inputs<BR>(Level 3)
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=8><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Assets:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Derivative instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>153,103</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>153,103</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Equity securities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Debt securities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Liabilities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Derivative instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>36,325</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>36,325</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2> </FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=2><!-- SEQ.=10,FOLIO='14',FILE='DISK134:[09ZCF1.09ZCF17401]DK17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_15></A></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The following table
presents a reconciliation of the beginning and ending balances of the Company's
assets measured at fair value on a recurring basis using significant
unobservable inputs (Level 3) for the three and six months ended
June 30, 2009 and 2008. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=9></TD>
<TD style="FONT-FAMILY: times" align=left width=9></TD>
<TD style="FONT-FAMILY: times" align=left width=163></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times" width=14></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times" width=14></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times" width=14></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times" width=14></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times" width=14></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=31></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=8><FONT size=1><B>Three Months Ended June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=8><FONT size=1><B>Six Months Ended June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Equity<BR>Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Debt<BR>Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Debt<BR>Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Equity<BR>Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Debt<BR>Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Debt<BR>Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=17><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Balance at beginning of period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>16,069</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,670</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>15,023</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total gains or (losses)
(realized/unrealized):</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Included in earnings</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>673</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(657</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,670</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,719</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Included in other comprehensive
income</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Purchases, sales, issuances, and settlements
(net)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Transfers in and/or out of
Level 3<SUP>(1)</SUP></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>657</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Balance at end of period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>16,742</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>16,742</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P
style="MARGIN-TOP: 11pt; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>The amount of total gains or (losses) for the
period included in earnings attributable to the change in unrealized gains
or losses relating to assets still held at end of period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>(193</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>(657</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2><BR>(1,670</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><BR>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2><BR>45</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>The Company's investment in PERL
common stock was previously valued within the Level 1 fair value
hierarchy until March 2009 when PERL's common stock was suspended from trading
for failure to meet the continued stock exchange listing requirements. As a
result, the Company's investment in the PERL common stock is now valued within
the Level 3 fair value hierarchy as there is no longer an active market
for this investment. </FONT></DD></DL>
<P style="FONT-FAMILY: times"><FONT
size=2> Gains and losses
(realized and unrealized) included in earnings related to the Company's assets
measured at fair value on a recurring basis using significant unobservable
inputs (Level 3) for the three <!-- SEQ.=11,FOLIO='15',FILE='DISK134:[09ZCF1.09ZCF17401]DK17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_16></A>and six months ended June 30, 2009 and 2008 are
reported in the Condensed Consolidated Statements of Operations as follows:
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=108></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=42></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=42></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>Three Months Ended June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>Six Months Ended June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Equity Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Debt Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Debt Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Equity Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Debt Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Debt Securities </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other, net </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other, net </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other, net </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Interest<BR>and other<SUP>(1)</SUP>
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other, net </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other, net </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Other, net </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Interest<BR>and other<SUP>(1)</SUP>
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total losses or (gains) included in earnings
for the period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(866</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>657</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,670</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(45</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,674</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Change in unrealized losses or (gains) relating
to assets still held at end of period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>193</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>657</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,670</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(45</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>Represents imputed interest income
on the PERL Note. </FONT></DD></DL>
<P style="FONT-FAMILY: times"><FONT
size=2> The fair values and
carrying amounts of the Company's financial instruments are summarized below for
the periods presented. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=242></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=41></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=36></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=36></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>December 31, 2008
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Carrying<BR>Amount </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Fair<BR>Value </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Carrying<BR>Amount </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Fair<BR>Value </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Assets:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Cash</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,496</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,496</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,205</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,205</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Accounts receivable</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>98,413</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>98,413</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>157,226</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>157,226</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Other investments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,327</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,327</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Derivative instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>153,103</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>153,103</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>173,995</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>173,995</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Liabilities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Derivative instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>36,325</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>36,325</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,884</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,884</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Credit facilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>684,989</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>684,989</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,284,415</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,284,415</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>8% senior notes due 2011</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>290,289</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>285,713</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>291,350</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>256,500</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>7% senior subordinated notes due
2013</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>110</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>106</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,087</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>912</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>8<SUP>1</SUP>/<SMALL>2</SMALL>% senior notes
due 2014</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>573,036</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>592,500</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>7<SUP>3</SUP>/<SMALL>4</SMALL>% senior notes
due 2014</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>157,456</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>142,875</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>158,219</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>123,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>7<SUP>1</SUP>/<SMALL>4</SMALL>% senior notes
due 2019</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,000,562</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>897,500</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,000,590</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>780,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2> </FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> The Company used various
assumptions and methods in estimating the fair values of its financial
instruments. The carrying amounts of cash and cash equivalents and accounts
receivable approximated their fair value due to the short maturity of these
instruments. The carrying amount of the Company's credit facilities approximated
fair value, because the interest rates on the credit facilities are variable.
The fair values of the Company's senior notes and senior subordinated notes were
estimated based on quoted market prices, if available, or quoted market prices
of comparable instruments. The fair values of the Company's derivative
instruments and other investments are discussed above. </FONT></P></BODY></HTML>
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<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(9) DERIVATIVE INSTRUMENTS
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Commodity Derivatives
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Forest periodically
enters into derivative instruments such as swap, basis swap, and collar
agreements in order to provide a measure of stability to Forest's cash flows in
an environment of volatile oil and gas prices and to manage the exposure to
commodity price risk. Forest's commodity derivative instruments generally serve
as effective economic hedges of commodity price exposure; however, the Company
has elected not to designate its derivatives as hedging instruments. As such,
the Company recognizes all changes in fair value of its derivative instruments
in earnings rather than deferring such amounts in accumulated other
comprehensive income included in shareholders' equity, as would be done if the
derivatives were designated as hedging instruments and cash flow hedge
accounting were utilized. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In March 2008, the FASB
issued SFAS No. 161, </FONT><FONT size=2><I>Disclosures about Derivative
Instruments and Hedging Activities—an amendment of FASB Statement
No. 133</I></FONT><FONT size=2> ("SFAS 161"). SFAS 161 requires
qualitative disclosures about objectives and strategies for using derivatives,
quantitative disclosures about fair value amounts of and gains and losses on
derivative instruments, and disclosures about credit-risk-related contingent
features in derivative agreements. This statement was effective for fiscal years
and interim periods beginning after November 15, 2008. Accordingly, Forest
has adopted this pronouncement as of January 1, 2009. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The table below sets
forth Forest's outstanding commodity swaps and collars as of June 30, 2009.
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=220></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=58></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=58></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Natural Gas (NYMEX HH)
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Oil (NYMEX WTI) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Bbtu<BR>Per Day </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Weighted Average<BR>Hedged
Price<BR>per MMBtu </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Barrels<BR>Per Day </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Weighted Average<BR>Hedged
Price<BR>per Bbl </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Swaps:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - October
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>210</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>7.33</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,500</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>69.01</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>November 2009 - December
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>160</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><SUP>(1)</SUP></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>8.24</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,500</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>69.01</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Calendar 2010</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>150</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6.36</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,500</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>72.95</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Costless Collars:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - December
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>7.31/9.76</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2><SUP>(2)</SUP></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2> </FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>10 Bbtu per day is subject to a
$6.00 written put. <BR><BR></FONT>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(2)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>Represents weighted average hedged
floor and ceiling price per MMBtu. </FONT>
<P style="FONT-FAMILY: times"><FONT size=1><!-- SEQ.=13,FOLIO='17',FILE='DISK134:[09ZCF1.09ZCF17401]DM17401A.;14',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_18></A></FONT></P></DD></DL>
<P style="FONT-FAMILY: times"><FONT
size=2> Forest also uses basis
swaps in connection with natural gas swaps in order to fix the price
differential between the NYMEX Henry Hub price and the index price at which the
natural gas production is sold. The table below sets forth Forest's outstanding
basis swaps as of June 30, 2009. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=152></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=c width=101></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=58></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle><FONT size=1><B>Index </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Bbtu<BR>Per Day </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Weighted Average<BR>Hedged
Price<BR>Differential<BR>per MMBtu </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - December
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>AECO</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>25</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.65</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - December
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT
size=2>Centerpoint</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.95</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - December
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>Houston Ship
Channel</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>50</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.33</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - December
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>Mid
Continent</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>60</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1.04</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - December
2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>NGPL
TXOK</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.53</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Calendar 2010</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT
size=2>Centerpoint</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.95</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Calendar 2010</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>Houston Ship
Channel</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>30</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.30</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Calendar 2010</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>Mid
Continent</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>60</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1.04</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Calendar 2010</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>NGPL
TXOK</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>40</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(.44</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2>)</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> Subsequent to
June 30, 2009, through July 31, 2009, Forest entered into additional
basis swaps covering 20 Bbtu per day for Calendar 2010 at a weighted average
hedged price differential of $(.28) for the Houston Ship Channel index.
</FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Interest Rate Derivatives
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Forest periodically
enters into interest rate derivative agreements in an attempt to normalize the
mix of fixed and floating interest rates within its debt portfolio. The table
below sets forth Forest's outstanding fixed-to-floating interest rate swaps as
of June 30, 2009. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=140></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=51></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=c width=116></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" noWrap align=left>
<DIV
style="MARGIN-BOTTOM: 0pt; WIDTH: 39pt; BORDER-BOTTOM: #000000 1pt solid"><FONT
size=1><B>Swap Term
<!-- COMMAND=ADD_SCROPPEDRULE,39pt --></B></FONT></DIV></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Notional<BR>Amount<BR>(In
Thousands) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle><FONT size=1><B>Weighted Average<BR>Floating Rate
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Weighted<BR>Average<BR>Fixed<BR>Rate </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 - February
2014</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>300,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>1 month
LIBOR + 5.90%</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>8.50</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2>%</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> In addition to the
interest rate swaps, during the six months ended June 30, 2009, Forest
entered into certain interest rate swaptions, which enable the counterparties to
exercise options to enter into interest rate swaps with Forest in exchange for a
premium paid to Forest. The premiums received on these swaptions are amortized
as realized gains on derivatives over the term of the related swaption. The
interest rate swaps underlying the swaptions also exchange the 8.5% fixed
interest rate on a portion of the 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes for a
variable rate over the term of the 8<SUP>1</SUP>/<SMALL>2</SMALL>% Notes. Forest
entered into these interest rate swaptions because its targeted floating
interest rates were not attainable at that time in the interest rate swap market
yet premiums were available from counterparties for the option to <!-- SEQ.=14,FOLIO='18',FILE='DISK134:[09ZCF1.09ZCF17401]DM17401A.;14',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_19></A>swap Forest's 8.5% fixed rate for the floating rates
it had targeted. The table below sets forth Forest's outstanding interest rate
swaptions as of June 30, 2009. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=82></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=c width=109></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=52></TD>
<TD style="FONT-FAMILY: times" width=13></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=52></TD>
<TD style="FONT-FAMILY: times" width=13></TD>
<TD style="FONT-FAMILY: times" align=c width=99></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" noWrap align=left>
<DIV
style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT
size=1><B>Option Term
<!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle><FONT size=1><B>Swap Term </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Premiums<BR>Received<BR>(In
Thousands) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Notional<BR>Amount<BR>(In
Thousands) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle><FONT size=1><B>Weighted Average<BR>Floating Rate
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Weighted<BR>Average<BR>Fixed<BR>Rate </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>April 2009 - July 2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>July 2009 -
February 2014</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,065</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>225,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>1 month
LIBOR + 5.88%</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>8.50</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>%</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>May 2009 - August 2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>August
2009 - February 2014</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>525</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>75,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>1 month
LIBOR + 5.80%</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>8.50</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2>%</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> Subsequent to
June 30, 2009, through July 31, 2009, a counterparty exercised its
option, resulting in the interest rate swap as set forth in the table below.
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=172></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=52></TD>
<TD style="FONT-FAMILY: times" width=14></TD>
<TD style="FONT-FAMILY: times" align=c width=105></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=16></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" noWrap align=left>
<DIV
style="MARGIN-BOTTOM: 0pt; WIDTH: 39pt; BORDER-BOTTOM: #000000 1pt solid"><FONT
size=1><B>Swap Term
<!-- COMMAND=ADD_SCROPPEDRULE,39pt --></B></FONT></DIV></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Notional<BR>Amount<BR>(In
Thousands) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle><FONT size=1><B>Floating Rate </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Fixed<BR>Rate </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July
2009 - February 2014</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>125,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>1 month
LIBOR + 5.90%</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>8.50</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2>%</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> Subsequent to
June 30, 2009, through July 31, 2009, Forest entered into an
additional interest rate swaption as set forth in the table below. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=90></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=c width=113></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=52></TD>
<TD style="FONT-FAMILY: times" width=13></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=52></TD>
<TD style="FONT-FAMILY: times" width=13></TD>
<TD style="FONT-FAMILY: times" align=c width=99></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=16></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" noWrap align=left>
<DIV
style="MARGIN-BOTTOM: 0pt; WIDTH: 45pt; BORDER-BOTTOM: #000000 1pt solid"><FONT
size=1><B>Option Term
<!-- COMMAND=ADD_SCROPPEDRULE,45pt --></B></FONT></DIV></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle><FONT size=1><B>Swap Term </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Premium<BR>Received<BR>(In
Thousands) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Notional<BR>Amount<BR>(In
Thousands) </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle><FONT size=1><B>Floating Rate </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Fixed<BR>Rate </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>July 2009 -
October 2009</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>October
2009 - February 2014</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>745</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>100,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=middle><FONT size=2>1 month
LIBOR + 5.60%</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>8.50</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT
size=2>%</FONT></TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Fair Value and Gains and Losses
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The table below
summarizes the location and fair value amounts of Forest's derivative
instruments reported in the Condensed Consolidated Balance Sheets as of the
period indicated. These derivative instruments are not designated as hedging
instruments under SFAS 133. For financial reporting purposes, Forest does
not offset asset and liability fair value amounts recognized for derivative <!-- SEQ.=15,FOLIO='19',FILE='DISK134:[09ZCF1.09ZCF17401]DM17401A.;14',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_20></A>instruments with the same counterparty under its
master netting arrangements. See Note 8 to the Condensed Consolidated
Financial Statements for more information on our derivative instruments.
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=299></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=44></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=62></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>December 31, 2008
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Assets:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Commodity derivatives:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Current assets: derivative
instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>149,437</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>169,387</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Derivative instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,666</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,608</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>153,103</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>173,995</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P
style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Liabilities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Commodity derivatives:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Current liabilities: derivative
instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>19,255</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,284</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Derivative instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>11,352</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,600</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Interest rate derivatives:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Current liabilities: derivative
instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,253</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Derivative instruments</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,465</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>36,325</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,884</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Net derivative fair value</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>116,778</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>170,111</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> The table below
summarizes the location and amount of derivative instrument gains and losses
reported in the Condensed Consolidated Statements of Operations for the periods
indicated. These derivative instruments are not designated as hedging
instruments, as such the gains and losses are included in Costs, expenses, and
other in the Condensed Consolidated Statements of Operations. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=10></TD>
<TD style="FONT-FAMILY: times" align=left width=260></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=34></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Three Months Ended<BR>June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Six Months Ended<BR>June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Commodity derivatives:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Realized (gains) losses</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(84,843</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>57,577</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(156,108</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>60,956</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unrealized losses</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>113,399</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>329,144</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>47,615</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>466,574</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P
style="MARGIN-TOP: 12pt; MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Interest rate derivatives:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Realized (gains) losses</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,893</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>605</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,417</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>889</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unrealized losses (gains)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>7,118</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(9,504</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,363</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(4,721</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Realized and unrealized losses (gains) on
derivative instruments, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>32,781</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>377,822</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(106,547</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>523,698</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> Due to the volatility of
oil and natural gas prices, the estimated fair values of Forest's commodity
derivative instruments are subject to large fluctuations from period to period.
Forest has experienced the effects of these commodity price fluctuations in both
the current period and prior periods and expects that volatility in commodity
prices will continue. </FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><!-- SEQ.=16,FOLIO='20',FILE='DISK134:[09ZCF1.09ZCF17401]DO17401A.;17',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_21></A></FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Credit Risk </I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Forest executes with each
of its derivative counterparties an International Swap and Derivatives
Association, Inc. ("ISDA") Master Agreement, which is a standard industry
form contract containing general terms and conditions applicable to many types
of derivative transactions. Additionally, Forest executes, with each of its
derivative counterparties, a Schedule, which modifies the terms and conditions
of the ISDA Master Agreement according to the parties' requirements and the
specific types of derivatives to be traded. None of these counterparties require
collateral beyond that already pledged under the Credit Facilities. All but one
of the counterparties is a lender, or an affiliate of a lender, under the Credit
Facilities, which provide that any security granted by Forest under the Credit
Facilities shall also extend to and be available to those lenders that are
counterparties to derivative transactions with Forest. The remaining
counterparty, a purchaser of Forest's natural gas production, generally owes
money to Forest and therefore does not require collateral under the ISDA Master
Agreement and Schedule it has executed with Forest. The Credit Facilities are
collateralized by a portion of the Company's assets. The Company is required to
mortgage and grant a security interest in the greater of (i) 75% of the
present value of its consolidated proved oil and gas properties or
(ii) 1.875 multiplied by the allocated U.S. borrowing base. The Company is
also required to and has pledged the stock of several subsidiaries to the
lenders to secure the Credit Facilities. Under certain circumstances, the
Company could be obligated to pledge additional assets as collateral. If
Forest's corporate credit ratings assigned by Moody's and S&P improve and
meet pre-established levels, the collateral requirements would cease to apply
and, at the Company's request, the banks would release their liens on and
security interests in the Company's properties. In addition to these collateral
requirements, one of the Company's subsidiaries, Forest Oil Permian Corporation,
is a subsidiary guarantor of the Credit Facilities. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The ISDA Master
Agreements and Schedules contain cross-default provisions whereby a default
under the Credit Facilities will also cause a default under the derivative
agreements. Such events of default include non-payment, breach of warranty,
non-performance of financial covenants, default on other indebtedness, certain
pension plan events, certain adverse judgments, change of control, a failure of
the liens securing the Credit Facilities, and an event of default under the
Canadian Facility. In addition, bankruptcy and insolvency events with respect to
Forest or certain of its subsidiaries will result in an automatic acceleration
of the indebtedness under the Credit Facilities. None of these events of default
are specifically credit-related, but some could arise due to a general
deterioration of Forest's credit. The ISDA Master Agreements and Schedules
contain a further credit-related termination event that would occur if Forest
were to merge with another entity and the creditworthiness of the resulting
entity was materially weaker than that of Forest. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The vast majority of
Forest's derivative counterparties are all financial institutions that are
engaged in similar activities and have similar economic characteristics that, in
general, could cause their ability to meet contractual obligations to be
similarly affected by changes in economic or other conditions. Forest does not
require the posting of collateral for its benefit under its derivative
agreements. However, Forest's ISDA Master Agreements contain netting provisions
whereby if on any date amounts would otherwise be payable by each party to the
other, then on such date the party that owes the larger amount will pay the
excess of that amount over the smaller amount owed by the other party, thus
satisfying each party's obligations. These provisions apply to all derivative
transactions with the <!-- SEQ.=17,FOLIO='21',FILE='DISK134:[09ZCF1.09ZCF17401]DO17401A.;17',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_22></A>particular counterparty. If all counterparties
failed, we would be exposed to a risk of loss equal to this net amount owed to
us, the fair value of which is $135.9 million at June 30, 2009. If
Forest suffered an event of default, each counterparty could demand immediate
payment, subject to notification periods, of the net obligations due to it under
the derivative agreement. At June 30, 2009, Forest owed a net derivative
liability to seven counterparties, the fair value of which is
$19.1 million. </FONT></P></BODY></HTML>
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<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(10) INCOME TAXES </B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> A reconciliation of
income tax computed by applying the United States statutory federal income tax
rate is as follows: </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=274></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=33></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Three
Months<BR>Ended<BR>June 30, </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Six
Months<BR>Ended<BR>June 30, </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Federal income tax at 35% of loss before income
taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(10,102</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(36,455</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(523,944</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(38,935</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Change in valuation allowance for deferred tax
assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(52,680</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>163,157</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>State income taxes, net of federal income tax
benefits</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(413</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,968</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(14,657</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,288</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Effect of differing tax rates in
Canada</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(463</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,109</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>11,875</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,099</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Effect of federal, state, and foreign tax on
permanent items</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(977</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(897</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,143</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(172</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Adjustments for statutory rate reductions and
other</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,368</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,289</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,076</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total income tax</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(66,003</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(36,140</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(356,350</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(38,494</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> In assessing the need for
a valuation allowance on the Company's deferred tax assets, all available
evidence, both negative and positive, was considered in determining whether it
is more likely than not that some portion or all of the deferred tax assets will
be realized. Based on this assessment, Forest recorded an additional valuation
allowance of $163 million against its U.S. deferred tax assets during the
six months ended June 30, 2009. The amount of the deferred tax asset
considered realizable will likely change each quarter as estimates of our future
book income change due to changes in expected future oil and gas prices, and
these changes could be material. </FONT></P></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(12) GEOGRAPHICAL SEGMENTS
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> At June 30, 2009,
Forest conducted operations in one industry segment, that being the oil and gas
exploration and production industry, and had three reportable geographical
business segments: United States, Canada, and International. Forest's remaining
activities were not significant and therefore were not reported as a separate
segment, but have been included as a reconciling item in the information below.
The segments were determined based upon the geographical location of operations
in each business segment. The segment data presented below was prepared on the
same basis as the Condensed Consolidated Financial Statements. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=9></TD>
<TD style="FONT-FAMILY: times" align=left width=112></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=43></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=30></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=35></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=43></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=35></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=23><FONT size=1><B>Oil and Gas Operations
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>Three Months Ended June 30,
2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>Six Months Ended June 30,
2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>United<BR>States </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Canada </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>International </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>United<BR>States </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Canada </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>International </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Oil and gas sales</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>154,196</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>27,434</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>181,630</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>320,548</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>55,741</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>376,289</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Costs and expenses:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Lease operating expenses</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>30,166</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>7,870</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>38,036</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>64,868</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>14,399</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>79,267</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Production and property taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>10,974</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>817</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>11,791</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>21,918</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,568</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>23,486</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Transportation and processing
costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,346</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,976</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>5,322</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,385</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,181</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>10,566</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Depletion</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>52,051</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>13,013</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>65,064</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>138,542</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>28,691</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>167,233</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Ceiling test write-down of oil and gas
properties</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,376,822</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>199,021</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>1,575,843</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Accretion of asset retirement
obligations</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,888</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>231</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>24</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,143</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,660</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>474</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>47</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,181</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Segment earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>55,771</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,527</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(24</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>59,274</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,291,647</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(192,593</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(47</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,484,287</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Capital
expenditures<SUP>(1)</SUP></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>84,700</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,816</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,272</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>92,788</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>310,560</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>32,792</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,237</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>345,589</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Goodwill<SUP>(2)</SUP></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>239,420</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>14,899</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>254,319</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>239,420</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>14,899</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>254,319</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>Includes estimated discounted
asset retirement obligations of $(4.1) million and $(1.6) million recorded
during the three and six months ended June 30, 2009, respectively.
<BR><BR></FONT>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(2)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>As of June 30, 2009. </FONT>
<P style="FONT-FAMILY: times"><FONT size=1><!-- SEQ.=19,FOLIO='23',FILE='DISK134:[09ZCF1.09ZCF17401]DO17401A.;17',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_24></A></FONT></P></DD></DL>
<P style="FONT-FAMILY: times"><FONT
size=2> A reconciliation of
segment earnings (loss) to consolidated loss before income taxes is as follows:
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=255></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=46></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=44></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Three
Months<BR>Ended<BR>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Six
Months<BR>Ended<BR>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Segment earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>59,274</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,484,287</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Interest and other</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>435</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>644</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>General and administrative
expense</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(15,649</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(31,734</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Administrative asset depreciation</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,073</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,456</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Interest expense</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(43,175</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(79,720</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Realized and unrealized (losses) gains on
derivative instruments, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(32,781</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>106,547</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,107</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(2,976</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Loss before income taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(28,862</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>(1,496,982</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=2><BR></FONT> </P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=9></TD>
<TD style="FONT-FAMILY: times" align=left width=130></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=29></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=43></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=30></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=25></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=25></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=43></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=4></TD>
<TD style="FONT-FAMILY: times" width=30></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=23><FONT size=1><B>Oil and Gas Operations
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>Three Months Ended June 30,
2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>Six Months Ended June 30,
2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>United<BR>States </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Canada </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>International </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>United<BR>States </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Canada </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>International </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Total<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=2><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=23><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Oil and gas sales</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>433,838</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>81,240</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>515,078</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>749,334</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>142,331</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>891,665</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Costs and expenses:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Lease operating expenses</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>29,112</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>9,301</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>38,413</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>58,046</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>17,932</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>75,978</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Production and property taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>23,297</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>851</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>24,148</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>42,471</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,728</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>44,199</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Transportation and processing
costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,263</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,378</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,641</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,695</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>4,871</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>9,566</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Depletion</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>101,566</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>23,107</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>124,673</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>193,425</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>45,196</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>238,621</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Accretion of asset retirement
obligations</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,624</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>323</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>20</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,967</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,099</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>611</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>41</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,751</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Segment earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>275,976</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>45,280</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(20</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>321,236</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>447,598</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>71,993</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(41</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>519,550</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Capital
expenditures<SUP>(1)</SUP></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>567,595</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>31,540</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,669</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>600,804</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>763,334</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>102,715</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,574</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>868,623</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Goodwill<SUP>(2)</SUP></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>248,804</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>16,994</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>265,798</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>248,804</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>16,994</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>265,798</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE --><!-- COMMAND=ADD_LINERULETXT,NOSHADE COLOR="#000000" SIZE="1.0PT" WIDTH="26%" ALIGN="LEFT" -->
<HR align=left width="26%" color=#000000 noShade SIZE=1>
<DL compact>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(1)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>Includes estimated discounted
asset retirement obligations of $4.7 million and $5.5 million
recorded during the three and six months ended June 30, 2008,
respectively. <BR><BR></FONT>
<DT style="MARGIN-BOTTOM: -9pt; FONT-FAMILY: times"><FONT
size=1><SUP>(2)</SUP></FONT>
<DD style="FONT-FAMILY: times"><FONT size=1>As of June 30, 2008 </FONT>
<P style="FONT-FAMILY: times"><FONT size=1><!-- SEQ.=20,FOLIO='24',FILE='DISK134:[09ZCF1.09ZCF17401]DO17401A.;17',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_25></A></FONT></P></DD></DL>
<P style="FONT-FAMILY: times"><FONT
size=2> A reconciliation of
segment earnings to consolidated loss before income taxes is as follows:
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=255></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=46></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=44></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Three
Months<BR>Ended<BR>June 30, 2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Six
Months<BR>Ended<BR>June 30, 2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Segment earnings</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>321,236</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>519,550</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Interest and other</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,353</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,444</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>General and administrative
expense</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(19,832</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(39,120</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Administrative asset depreciation</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(1,911</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(3,530</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Interest expense</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(27,979</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(55,836</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Realized and unrealized losses on derivative
instruments, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(377,822</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(523,698</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>797</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(11,054</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Loss before income taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(104,158</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(111,244</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT
size=2> The following tables set
forth information regarding the Company's total assets by segment and long-lived
assets by geographic area. Long-lived assets include net property and equipment
and goodwill. </FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=239></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=44></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=62></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Total Assets </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>December 31, 2008
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>United States</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>3,389,041</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>4,476,489</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Canada</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>503,010</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>726,895</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>International</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>80,327</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>79,414</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>3,972,378</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>5,282,798</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=2><BR></FONT> </P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=239></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=44></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=62></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Long-Lived Assets </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>December 31, 2008
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=5><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>United States</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>2,782,078</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>3,998,129</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Canada</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>506,325</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>691,009</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>International</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>79,569</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>77,672</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Total long-lived assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>3,367,972</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=2>4,766,810</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD
style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(13) CONDENSED CONSOLIDATING
FINANCIAL INFORMATION </B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The Company's 8% senior
notes due 2011, 8<SUP>1</SUP>/<SMALL>2</SMALL>% senior notes due 2014,
7<SUP>3</SUP>/<SMALL>4</SMALL>% senior notes due 2014, and
7<SUP>1</SUP>/<SMALL>4</SMALL>% senior notes due 2019 have been fully and
unconditionally guaranteed by Forest Oil Permian Corporation, a wholly-owned
subsidiary of the Company (the "Subsidiary Guarantor"). The Company's remaining
subsidiaries (the "Non-Guarantor Subsidiaries") have not provided guarantees.
Based on this distinction, the following presents condensed consolidating
financial information as of June 30, 2009 and December 31, 2008 and
for the three and six months ended June 30, 2009 and 2008 on an issuer
(parent company), guarantor subsidiary, non-guarantor subsidiaries, eliminating
entries, and consolidated basis. Elimination entries presented are necessary to
combine the entities. </FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><!-- SEQ.=21,FOLIO='25',FILE='DISK134:[09ZCF1.09ZCF17401]DO17401A.;17',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_26></A></FONT></P>
<P style="FONT-FAMILY: times" align=center><FONT size=2><A
name=xxx17401_condensed_consolidating_balanc__con02369></A><A
name=toc_xxx17401_2></A></FONT><FONT size=2><B>CONDENSED CONSOLIDATING BALANCE
SHEETS<BR>(Unaudited)<BR>(In Thousands) <BR></B></FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=69></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=39></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=39></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=14><FONT size=1><B>June 30, 2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=14><FONT size=1><B>December 31, 2008
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Eliminations </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Eliminations </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" align=middle colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1><B>ASSETS</B></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Current assets:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Cash and cash equivalents</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,987</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>252</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,257</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>5,496</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,226</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>74</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>905</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>2,205</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Accounts receivable</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>54,440</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>17,880</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>26,379</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(286</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>98,413</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>106,941</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>22,003</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>28,584</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(302</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>157,226</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other current assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>273,903</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>835</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>9,415</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>284,153</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>304,424</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>471</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>8,723</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>313,618</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Total current assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>330,330</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>18,967</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>39,051</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(286</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>388,062</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>412,591</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>22,548</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>38,212</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(302</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>473,049</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Property and equipment, at cost</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>7,567,629</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,322,737</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,562,534</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>10,452,900</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>7,327,978</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,259,337</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,465,891</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>10,053,206</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Less accumulated depreciation, depletion, and
amortization</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>5,418,474</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>974,896</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>945,877</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>7,339,247</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>4,145,061</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>727,858</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>667,123</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>5,540,042</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net property and equipment</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>2,149,155</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>347,841</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>616,657</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>3,113,653</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>3,182,917</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>531,479</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>798,768</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>4,513,164</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Investment in subsidiaries</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>225,050</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(225,050</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>577,405</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(577,405</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Note receivable from subsidiary</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Deferred income taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>208,859</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(44,911</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>163,948</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Goodwill</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>216,460</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>22,960</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>14,899</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>254,319</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>216,460</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>22,960</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>14,226</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>253,646</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Due from (to) parent and
subsidiaries</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>495,325</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>61,206</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(556,531</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>391,074</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>141,656</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(532,730</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>50,155</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>5</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,236</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>52,396</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>40,607</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>5</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,327</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>42,939</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>3,768,386</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>450,979</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>116,312</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(363,299</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>3,972,378</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>4,914,106</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>718,648</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>320,803</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(670,759</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>5,282,798</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" align=middle colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1><B>LIABILITIES AND SHAREHOLDERS'
EQUITY</B></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Current liabilities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Accounts payable and accrued
liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>144,134</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>7,269</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>17,630</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(286</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>168,747</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>338,754</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>27,631</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>58,858</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(302</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>424,941</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other current liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>107,886</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,030</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,373</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>115,289</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>88,064</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,165</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>7,241</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>96,470</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Total current liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>252,020</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>8,299</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>24,003</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(286</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>284,036</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>426,818</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>28,796</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>66,099</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(302</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>521,411</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Long-term debt</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>2,571,453</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>134,989</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>2,706,442</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>2,641,246</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>94,415</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>2,735,661</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Note payable to parent</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(93,052</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>138,133</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,365</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>33,622</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>175,120</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>128,017</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,397</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>35,813</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>167,227</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Deferred income taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>17,777</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>27,134</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(44,911</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>45,113</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>61,383</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>79,091</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>185,587</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Total liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>2,961,606</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>29,441</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>312,800</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(138,249</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>3,165,598</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>3,241,194</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>93,576</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>368,470</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(93,354</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>3,609,886</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Shareholders' equity</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>806,780</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>421,538</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(196,488</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(225,050</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>806,780</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,672,912</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>625,072</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(47,667</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(577,405</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,672,912</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>3,768,386</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>450,979</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>116,312</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(363,299</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>3,972,378</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>4,914,106</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>718,648</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>320,803</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(670,759</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>5,282,798</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=1><!-- SEQ.=22,FOLIO='26',FILE='DISK134:[09ZCF1.09ZCF17401]DQ17401A.;14',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_27></A></FONT></P>
<P style="FONT-FAMILY: times" align=center><FONT size=2><A
name=xxx17401_condensed_consolidating_statem__con02853></A><A
name=toc_xxx17401_3></A></FONT><FONT size=2><B>CONDENSED CONSOLIDATING
STATEMENTS OF OPERATIONS<BR>(Unaudited)<BR>(In Thousands) <BR></B></FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=75></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=23></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=39></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=23></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=39></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=29><FONT size=1><B>Three Months Ended June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=14><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=14><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Eliminations </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Eliminations </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Revenues:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Oil and gas sales</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>122,634</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>31,156</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>27,840</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>181,630</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>348,291</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>33,664</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>133,123</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>515,078</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Interest and other</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,663</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>91</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(89</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(6,230</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>435</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>7,609</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>267</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>19</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(6,542</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,353</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Equity earnings in subsidiaries</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>16,346</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(16,346</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(4,361</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,361</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Total revenues</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>145,643</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>31,247</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>27,751</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(22,576</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>182,065</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>351,539</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>33,931</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>133,142</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(2,181</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>516,431</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Costs, expenses, and other:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Lease operating expenses</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>24,765</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>5,182</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>8,027</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>62</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>38,036</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>24,667</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,906</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>10,805</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>35</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>38,413</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other direct operating costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>12,762</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,351</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>17,113</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>20,845</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,313</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>5,631</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>28,789</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>General and administrative</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>13,161</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>612</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,876</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>15,649</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>16,048</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>21</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,763</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>19,832</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Depreciation and depletion</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>46,247</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>10,460</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>13,846</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(2,416</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>68,137</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>83,548</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,037</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>37,001</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(2</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>126,584</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Interest expense</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>39,612</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,518</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,299</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(3,254</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>43,175</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>24,177</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>7,797</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(3,995</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>27,979</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Realized and unrealized losses on derivative
instruments, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>25,903</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,644</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>234</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>32,781</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>276,568</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>54,300</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>46,954</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>377,822</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,234</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>120</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(5,003</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(2,315</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(3,964</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,255</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>315</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(22</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(1,378</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,170</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Total costs, expenses, and other</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>165,684</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>27,536</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>25,630</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(7,923</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>210,927</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>448,108</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>65,892</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>111,929</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(5,340</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>620,589</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Earnings (loss) before income
taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(20,041</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,711</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,121</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(14,653</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(28,862</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(96,569</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(31,961</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>21,213</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,159</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(104,158</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Income tax</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(57,182</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(7,678</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(1,143</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(66,003</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(28,551</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(11,599</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,010</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(36,140</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>37,141</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>11,389</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,264</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(14,653</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>37,141</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(68,018</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(20,362</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>17,203</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,159</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(68,018</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=1><!-- SEQ.=23,FOLIO='27',FILE='DISK134:[09ZCF1.09ZCF17401]DS17401A.;10',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_28></A></FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=67></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=30></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=39></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=23></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=26></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=39></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=32></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=29><FONT size=1><B>Six Months Ended June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=14><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=14><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Eliminations </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Eliminations </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Revenues:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Oil and gas sales</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>255,777</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>63,677</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>56,835</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>376,289</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>604,967</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>59,544</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>227,154</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>891,665</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Interest and other</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,818</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>91</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(35</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(6,230</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>644</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>10,180</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>371</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>208</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(8,315</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>2,444</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Equity earnings in subsidiaries</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(294,297</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>294,297</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>24,518</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(24,518</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Total revenues</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(31,702</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>63,768</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>56,800</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>288,067</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>376,933</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>639,665</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>59,915</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>227,362</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(32,833</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>894,109</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Costs, expenses, and other:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Lease operating expenses</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>53,690</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>10,738</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>14,770</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>69</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>79,267</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>48,810</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,053</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>21,071</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>44</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>75,978</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other direct operating costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>25,915</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,474</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,663</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>34,052</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>38,886</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,169</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>10,710</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>53,765</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>General and administrative</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>26,473</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,327</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,934</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>31,734</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>32,924</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>27</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,169</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>39,120</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Depreciation and depletion</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>117,763</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>28,471</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>30,427</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(3,972</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>172,689</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>159,901</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>11,472</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>70,783</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(5</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>242,151</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Ceiling test write-down of oil and gas
properties</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,155,777</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>218,567</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>201,499</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,575,843</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Interest expense</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>71,279</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,821</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>9,850</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(6,230</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>79,720</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>48,369</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>15,782</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(8,315</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>55,836</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Realized and unrealized (gains) losses on
derivative instruments, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(87,192</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(19,079</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(276</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(106,547</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>415,721</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>78,351</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>29,626</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>523,698</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>5,942</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>141</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(107</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,181</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>7,157</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>12,309</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>426</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,255</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(185</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>14,805</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Total costs, expenses, and other</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,369,647</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>248,460</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>264,760</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(8,952</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,873,915</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>756,920</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>100,498</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>156,396</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(8,461</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,005,353</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Earnings (loss) before income
taxes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>(1,401,349</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(184,692</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(207,960</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>297,019</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(1,496,982</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(117,255</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(40,583</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>70,966</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(24,372</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(111,244</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Income tax</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(260,717</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(43,606</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(52,027</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(356,350</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(44,505</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(14,776</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>20,787</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(38,494</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>(1,140,632</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(141,086</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(155,933</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>297,019</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(1,140,632</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(72,750</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(25,807</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>50,179</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(24,372</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(72,750</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P style="FONT-FAMILY: times"><FONT size=1><!-- SEQ.=24,FOLIO='28',FILE='DISK134:[09ZCF1.09ZCF17401]DS17401A.;10',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_29></A></FONT></P>
<P style="FONT-FAMILY: times" align=center><FONT size=2><A
name=xxx17401_condensed_consolidating_statem__con02826></A><A
name=toc_xxx17401_4></A></FONT><FONT size=2><B>CONDENSED CONSOLIDATING
STATEMENTS OF CASH FLOWS<BR>(Unaudited)<BR>(In Thousands) <BR></B></FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=7></TD>
<TD style="FONT-FAMILY: times" align=left width=125></TD>
<TD style="FONT-FAMILY: times" width=6></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=30></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=42></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=35></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=25></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=42></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=3></TD>
<TD style="FONT-FAMILY: times" width=35></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=23><FONT size=1><B>Six Months Ended June 30,
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=11><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left colSpan=3><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Parent<BR>Company </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Guarantor<BR>Subsidiary
</B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT
size=1><B>Combined<BR>Non-Guarantor<BR>Subsidiaries </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>Consolidated </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Operating activities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net earnings (loss)</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(846,335</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(141,086</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(153,211</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(1,140,632</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(97,122</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(25,807</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>50,179</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(72,750</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Adjustments to reconcile net earnings (loss) to
net cash provided by operating activities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Depreciation and depletion</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>114,132</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>28,471</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>30,086</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>172,689</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>159,901</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>11,472</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>70,778</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>242,151</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Unrealized losses on derivative instruments,
net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>44,484</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>8,373</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>121</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>52,978</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>372,879</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>66,355</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>22,619</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>461,853</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Deferred income tax</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(262,222</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(43,606</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(52,027</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(357,855</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(44,350</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(14,776</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>16,654</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(42,472</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Ceiling test write-down of oil and gas
properties</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,155,777</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>218,567</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>201,499</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,575,843</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>17,221</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>167</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(5,875</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>11,513</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>15,886</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>82</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,586</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>20,554</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Changes in operating assets and
liabilities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Accounts receivable</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>52,501</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,123</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>4,537</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>61,161</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(47,894</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(5,528</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(13,270</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(66,692</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other current assets</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>16,233</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(364</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(394</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>15,475</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(19,544</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>127</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(2,171</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(21,588</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Accounts payable and accrued
liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(85,082</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(7,730</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(21,664</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(114,476</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(8,238</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(633</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(3,910</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(12,781</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Accrued interest and other current
liabilities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>13,299</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(267</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(1,806</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>11,226</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(16,185</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>22</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(1,844</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(18,007</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net cash provided by operating
activities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>220,008</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>66,648</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,266</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>287,922</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>315,333</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>31,314</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>143,621</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>490,268</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Investing activities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Capital expenditures for property and
equipment</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(332,499</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(76,685</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(62,107</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(471,291</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(580,537</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(8,904</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(211,931</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(801,372</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>19,564</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,676</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,463</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>29,703</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>53,379</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>24</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>53,403</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net cash used by investing
activities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(312,935</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(73,009</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(55,644</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(441,588</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(527,158</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(8,904</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(211,907</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(747,969</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Financing activities:</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Proceeds from bank borrowings</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>494,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>93,190</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>587,190</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>1,212,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>148,178</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,360,178</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Repayments of bank borrowings</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1>(1,134,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(59,634</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(1,193,634</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(947,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(160,917</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(1,107,917</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Issuance of 8<SUP>1</SUP>/<SMALL>2</SMALL>%
senior notes, net of issuance costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>559,767</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>559,767</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Issuance of 7<SUP>1</SUP>/<SMALL>4</SMALL>%
senior notes, net of issuance costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>247,188</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>247,188</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Redemption of 8% senior notes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(265,000</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(265,000</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Repurchases of 7% senior subordinated
notes</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(970</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(970</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(2,960</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(2,960</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Proceeds from common stock offering, net of
offering costs</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>256,253</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>256,253</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net activity in investments from
subsidiaries</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(33,961</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>9,629</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>24,332</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(59,051</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(21,745</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>80,796</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1><B>—</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times"><FONT size=0> </FONT></TD>
<TD style="FONT-FAMILY: times" colSpan=2>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(47,401</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(3,090</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(1,031</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(51,522</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>26,905</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(877</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,338</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>27,366</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net cash provided (used) by financing
activities</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>93,688</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>6,539</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>56,857</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>157,084</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>212,082</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(22,622</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>69,395</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>258,855</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Effect of exchange rate changes on
cash</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(127</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(127</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(28</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>(28</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1><B>)</B></FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Net increase (decrease) in cash and cash
equivalents</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>761</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>178</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>2,352</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>3,291</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>257</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>(212</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,081</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>1,126</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR vAlign=bottom bgColor=white>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Cash and cash equivalents at beginning of
period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,226</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>74</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>905</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>2,205</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,189</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>386</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>8,110</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>9,685</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=bottom bgColor=#cceeff>
<TD style="FONT-FAMILY: times" colSpan=3>
<P style="MARGIN-LEFT: 7pt; TEXT-INDENT: -7pt; FONT-FAMILY: times"><FONT
size=1></FONT><FONT size=1>Cash and cash equivalents at end of
period</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,987</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>252</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>3,257</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>5,496</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>1,446</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>174</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=1>9,191</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT
size=1><B>10,811</B></FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=1> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times" colSpan=3> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD
style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV></BODY></HTML>
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<P style="FONT-FAMILY: times"><FONT size=2><B>(14) RECENT ACCOUNTING
PRONOUNCEMENTS </B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In December 2008, the
FASB issued FSP No. FAS 132(R)-1, </FONT><FONT size=2><I>Employers'
Disclosures About Postretirement Benefit Plan Assets</I></FONT><FONT size=2>
("FSP FAS 132(R)-1"), which provides guidance on an employer's disclosures
about plan assets of a defined benefit pension or other postretirement benefit
plan. FSP FAS 132(R)-1 states that disclosures concerning plan assets
should provide users of financial statements with an understanding of:
investment policies and strategies; categories of plan assets; fair value
measurements of plan assets; and significant concentrations of risk. The
disclosures required by FSP FAS 132(R)-1 shall be provided for fiscal years
ending after December 15, 2009. The Company is currently evaluating the
impact that the adoption of this pronouncement will have on the Company's plan
asset disclosures. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In December 2008, the
Securities and Exchange Commission adopted revisions to its oil and gas
disclosure requirements that are intended to align them with current practices
and changes in technology. Among other things, the amendments will: replace the
single-day year-end pricing assumption with a twelve-month average pricing
assumption; permit the disclosure of probable and possible reserves; allow the
use of certain technologies to establish reserves; require the disclosure of the
qualifications of the technical person primarily responsible for preparing the
reserves estimates or conducting a reserves audit; require the filing of the
independent reserve engineers' summary report; and permit the disclosure of a
reserves sensitivity analysis table to illustrate the impact of different price
and/or cost assumptions on reserves. These amendments are effective for
registration statements filed on or after January 1, 2010, and for annual
reports on Form 10-K for fiscal years ending on December 31, 2009,
with early adoption prohibited. The Company is currently evaluating the impact
that the adoption of this pronouncement will have on the Company's financial
position, results of operations, and disclosures. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In April 2009, the FASB
issued FSP No. FAS 107-1 and APB 28-1, </FONT><FONT size=2><I>Interim
Disclosures about Fair Value of Financial Instruments</I></FONT><FONT size=2>
("FSP FAS 107-1 and APB 28-1"), which requires the disclosure of the
fair value, together with the carrying amount, of financial instruments,
regardless of whether they are recognized at fair value in the statement of
financial position, for interim reporting periods of publicly traded companies
as well as in annual financial statements. This pronouncement is effective for
interim reporting periods ending after June 15, 2009, with earlier adoption
permitted for periods ending after March 15, 2009. The Company adopted this
pronouncement for the quarter ended March 31, 2009. As this pronouncement
requires only additional disclosures, there was no impact on the Company's
financial position or results of operations as a result of the adoption.
</FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In April 2009, the FASB
issued FSP No. FAS 157-4, </FONT><FONT size=2><I>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</I></FONT><FONT size=2> ("FSP FAS 157-4"), which provides
additional guidance for estimating fair value in accordance with SFAS 157
in certain circumstances. This pronouncement is effective for interim and annual
reporting periods ending after June 15, 2009, with earlier adoption
permitted for periods ending after March 15, 2009. An entity that early
adopts FSP FAS 107-1 and APB 28-1 must also early adopt FSP
FAS 157-4. Accordingly, the Company adopted this pronouncement for the
quarter ended March 31, 2009; however, there was no impact on the Company's
financial position or results of operations as a result of the adoption.
</FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In April 2009, the FASB
issued FSP No. FAS 115-2 and FAS 124-2, </FONT><FONT
size=2><I>Recognition and Presentation of Other-Than-Temporary
Impairments</I></FONT><FONT size=2> ("FSP FAS 115-2 and FAS 124-2"),
which amends the existing <!-- SEQ.=26,FOLIO='30',FILE='DISK134:[09ZCF1.09ZCF17401]DU17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_31></A>other-than-temporary impairment guidance for debt
securities to make the guidance more operational and to improve the presentation
and disclosure of other-than-temporary impairments on debt and equity securities
in the financial statements. Other-than-temporary impairment relates to
investments in debt and equity securities for which changes in fair value are
not regularly recognized in earnings (such as securities classified as
held-to-maturity or available-for-sale). This pronouncement is effective for
interim and annual reporting periods ending after June 15, 2009, with
earlier adoption permitted for periods ending after March 15, 2009. An
entity that early adopts FSP FAS 107-1 and APB 28-1 must also early
adopt FSP FAS 115-2 and FAS 124-2. Accordingly, the Company has
adopted this pronouncement for the quarter ended March 31, 2009; however,
since the Company has no such investments in debt or equity securities, there
was no impact on the Company's financial position or results of operations as a
result of the adoption. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In May 2009, the FASB
issued SFAS No. 165, </FONT><FONT size=2><I>Subsequent
Events</I></FONT><FONT size=2> ("SFAS 165"), which provides 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. This topic was previously addressed only in auditing literature.
SFAS 165 is similar to the existing auditing guidance with some exceptions
that are not intended to result in significant changes to practice. Entities are
now required to disclose the date through which subsequent events have been
evaluated, with such date being the date the financial statements were issued or
available to be issued. SFAS 165 is effective on a prospective basis for
interim or annual reporting periods ending after June 15, 2009.
Accordingly, the Company adopted this pronouncement for the quarter ended
June 30, 2009; however, there was no impact on the Company's financial
position or results of operations as a result of the adoption.
</FONT></P></BODY></HTML>
515078000
891665000
38413000
75978000
4641000
9566000
126584000
242151000
1967000
3751000
27979000
55836000
-461853000
797000
-11054000
-104158000
-111244000
4000000
3978000
-40140000
-42472000
-36140000
-38494000
-0.78
-0.83
-0.78
-0.83
2205000
157226000
169387000
2327000
63221000
473049000
3449510000
964027000
4413537000
99627000
4513164000
253646000
4608000
38331000
5282798000
7143000
1284000
54583000
5852000
27608000
521411000
2735661000
91139000
2600000
185587000
73488000
3609886000
0
9704000
2354903000
-729293000
37598000
5282798000
5502782000
0
0
97039751
97039751
9273000
-2152000
66692000
21588000
-12781000
490268000
789303000
12069000
52367000
-1036000
-747969000
1360178000
1107917000
15041000
-5051000
258855000
-28000
1126000
9685000
5496000
10811000
66754000
3352000
19832000
39120000
-377822000
-523698000
-68018000
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424941000
-18007000
78683000
247188000
24148000
44199000
163948000
37260000
1575843000
265000000
2960000
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(6) OIL AND GAS PROPERTIES
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><B><I>Full Cost Method of Accounting
</I></B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The Company uses the full
cost method of accounting for oil and gas properties. Separate cost centers are
maintained for each country in which the Company has operations. During the
periods presented, the Company's primary oil and gas operations were conducted
in the United States and <!-- SEQ.=7,FOLIO='11',FILE='DISK134:[09ZCF1.09ZCF17401]DK17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_12></A>Canada. All costs incurred in the acquisition,
exploration, and development of properties (including costs of surrendered and
abandoned leaseholds, delay lease rentals, dry holes, and overhead related to
exploration and development activities) and the fair value of estimated future
costs of site restoration, dismantlement, and abandonment activities are
capitalized. During the three months ended June 30, 2009 and 2008,
Forest capitalized $11.6 million and $14.8 million of general and
administrative costs (including stock-based compensation), respectively. During
the six months ended June 30, 2009 and 2008, Forest capitalized
$22.1 million and $26.9 million of general and administrative costs
(including stock-based compensation), respectively. Interest costs related to
significant unproved properties that are under development are also capitalized
to oil and gas properties. During the three months ended June 30, 2009 and
2008, the Company capitalized $3.4 million and $5.5 million,
respectively, of interest costs attributed to unproved properties. During the
six months ended June 30, 2009 and 2008, the Company capitalized
$6.8 million and $10.7 million, respectively, of interest costs
attributed to unproved properties. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Investments in unproved
properties, including capitalized interest costs, are not depleted pending
determination of the existence of proved reserves. Unproved properties are
assessed periodically to ascertain whether impairment has occurred. Unproved
properties whose costs are individually significant are assessed individually by
considering the primary lease terms of the properties, the holding period of the
properties, and geographic and geologic data obtained relating to the
properties. Where it is not practicable to assess individually the amount of
impairment of properties for which costs are not individually significant, such
properties are grouped for purposes of assessing impairment. The amount of
impairment assessed is added to the costs to be amortized, or is reported as a
period expense, as appropriate. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Pursuant to full cost
accounting rules, the Company must perform a ceiling test each quarter on its
proved oil and gas assets within each separate cost center. The ceiling test
provides that capitalized costs less related accumulated depletion and deferred
income taxes for each cost center may not exceed the sum of (1) the present
value of future net revenue from estimated production of proved oil and gas
reserves using current prices, excluding the future cash outflows associated
with settling asset retirement obligations that have been accrued on the balance
sheet, at a discount factor of 10%; plus (2) the cost of properties not
being amortized, if any; plus (3) the lower of cost or estimated fair value
of unproved properties included in the costs being amortized, if any; less
(4) income tax effects related to differences in the book and tax basis of
oil and gas properties. Should the net capitalized costs for a cost center
exceed the sum of the components noted above, a ceiling test write-down would be
recognized to the extent of the excess capitalized costs. As a result of this
limitation on capitalized costs, in the first quarter of 2009, the Company
recorded a non-cash ceiling test write-down of oil and gas property costs of
$1.377 billion in its United States cost center and $199.0 million in
its Canada cost center. Accordingly, the accompanying condensed consolidated
financial statements reflect a total non-cash ceiling test write-down of oil and
gas properties of $1.576 billion for the six months ended June 30,
2009. </FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Gain or loss is not
recognized on the sale of oil and gas properties unless the sale significantly
alters the relationship between capitalized costs and estimated proved oil and
gas reserves attributable to a cost center. </FONT></P>
<P style="FONT-FAMILY: times"><FONT size=2><!-- SEQ.=8,FOLIO='12',FILE='DISK134:[09ZCF1.09ZCF17401]DK17401A.;16',USER='MVANGB',CD=';6-AUG-2009;17:15' --><A
name=page_xxx17401_1_13></A></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> Depletion of proved oil
and gas properties is computed on the units-of-production method, whereby
capitalized costs, as adjusted for future development costs and asset retirement
obligations, are amortized over the total estimated proved reserves.
</FONT></P></BODY></HTML>
11000
8000
873000
77000
-77000
13334000
-1140632000
1000
78000
768000
8000
11000
881000
13334000
-1140632000
97040000
98413000
149437000
72463000
62253000
388062000
2125957000
867841000
2993798000
119855000
3113653000
254319000
3666000
48730000
3972378000
168747000
25625000
22508000
40976000
4368000
21812000
284036000
2706442000
91438000
13817000
69865000
3165598000
11225000
2623182000
-1869925000
42298000
3972378000
7292382000
46865000
0
0
112254269
112254269
38036000
11791000
5322000
15649000
68137000
2143000
43175000
-32781000
-28862000
237000
-66240000
-66003000
37141000
0.36
79267000
23486000
10566000
31734000
172689000
4181000
79720000
106547000
-1496982000
1505000
-357855000
-356350000
-11.58
-11.58
668000
668000
4032000
4032000
-1135932000
112254000
11225000
2623182000
-1869925000
42298000
181630000
435000
182065000
6107000
1353000
516431000
376289000
644000
376933000
2444000
894109000
-2976000
-7367000
17376000
14375000
1438000
254815000
256253000
0
210927000
620589000
1873915000
1005353000
256253000
559767000
6631228312
-1140632000
668000
4032000
-1135932000
8184000
-52978000
-2327000
2707000
-61161000
-15475000
-114476000
11226000
287922000
441680000
29611000
29703000
-441588000
587190000
1193634000
970000
892000
-48986000
-3428000
157084000
-127000
3291000
64224000
5489000
0.36
5886000
-2315000
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(5) SHAREHOLDERS' EQUITY
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> In May 2009, the Company
issued 14,375,000 shares of common stock at a price of $18.25 per share. Net
proceeds from this offering were $256.3 million after deducting
underwriting discounts and commissions and offering expenses. Forest used the
net proceeds from the offering to repay a portion of the outstanding borrowings
under its U.S. credit facility. </FONT></P></BODY></HTML>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=utf-8">
<META content="MSHTML 6.00.6000.16809" name=GENERATOR></HEAD>
<BODY>
<P style="FONT-FAMILY: times"><FONT size=2><B>(11) COSTS, EXPENSES, AND OTHER
</B></FONT></P>
<P style="FONT-FAMILY: times"><FONT
size=2> The table below sets
forth the components of Other, net within Costs, expenses, and other of the
Condensed Consolidated Statement of Operations for the periods indicated.
</FONT></P><!-- User-specified TAGGED TABLE -->
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TBODY>
<TR><!-- TABLE COLUMN WIDTHS SET -->
<TD style="FONT-FAMILY: times" align=left width=305></TD>
<TD style="FONT-FAMILY: times" width=12></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=28></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=23></TD>
<TD style="FONT-FAMILY: times" width=15></TD>
<TD style="FONT-FAMILY: times" align=right width=5></TD>
<TD style="FONT-FAMILY: times" width=24></TD>
<TD style="FONT-FAMILY: times"
width=3></TD><!-- TABLE COLUMN WIDTHS END --></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=2> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Three
Months<BR>Ended<BR>June 30, </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=5><FONT size=1><B>Six
Months<BR>Ended<BR>June 30, </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2009 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times"
align=middle colSpan=2><FONT size=1><B>2008 </B></FONT></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=bottom>
<TH style="FONT-FAMILY: times" align=left><FONT
size=1> </FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH>
<TH style="FONT-FAMILY: times" align=middle colSpan=11><FONT size=1><B>(In
Thousands)</B></FONT><BR></TH>
<TH style="FONT-FAMILY: times"><FONT size=1> </FONT></TH></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unrealized foreign currency exchange (gains)
losses, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(9,425</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(460</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(5,886</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,315</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Unrealized losses on other investments,
net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>—</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>276</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,327</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>7,367</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR vAlign=top bgColor=#cceeff>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>3,318</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(613</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>6,535</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>1,372</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid; FONT-FAMILY: times" align=right
colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD></TR>
<TR vAlign=top bgColor=white>
<TD style="FONT-FAMILY: times">
<P style="MARGIN-LEFT: 10pt; TEXT-INDENT: -10pt; FONT-FAMILY: times"><FONT
size=2></FONT><FONT size=2>Other, net</FONT></P></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>$</FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(6,107</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>(797</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2>)</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>2,976</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD>
<TD style="FONT-FAMILY: times" align=right><FONT size=2>11,054</FONT></TD>
<TD style="FONT-FAMILY: times"><FONT size=2> </FONT></TD></TR>
<TR style="FONT-SIZE: 1.5pt" vAlign=top>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD style="FONT-FAMILY: times"> </TD>
<TD style="BORDER-BOTTOM: #000000 2.25pt double; FONT-FAMILY: times"
align=right colSpan=2> </TD>
<TD
style="FONT-FAMILY: times"> </TD></TR></TBODY></TABLE></DIV></BODY></HTML>
9704000
2354903000
-729293000
37598000
1672912000
806780000
2000
677000
679000