2.2.0.7 false Derivative financial instruments 0209 - Disclosure - Derivative financial instruments true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Derivative financial instruments [Abstract] 0 us-gaap_DerivativeInstrumentsAndHedgesAbstract us-gaap true na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Derivative financial instruments 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note I. </b><b><i>Derivative financial instruments</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company uses derivative financial contracts to manage exposures to commodity price and interest rate fluctuations. Commodity hedges are used to (i) reduce the effect of the volatility of price changes on the oil and natural gas the Company produces and sells, (ii) support the Company’s capital budget and expenditure plans and (iii) support the economics associated with acquisitions. Interest rate hedges are used to mitigate the cash flow risk associated with rising interest rates. The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company also may enter into physical delivery contracts to effectively provide commodity price hedges. Because these contracts are not expected to be net cash settled, they are considered to be normal sales contracts and not derivatives. Therefore, these contracts are not recorded in the Company’s consolidated financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Currently, the Company does not designate its derivative instruments to qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its statements of operations. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>New commodity derivative contracts in the first half of 2010. </i></b>During the six months ended June 30, 2010, the Company entered into additional commodity derivative contracts to hedge a portion of its estimated future production. The following table summarizes information about these additional commodity derivative contracts: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Aggregate</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Index</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Contract</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Volume</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Price</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Period</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><i>Oil (volumes in Bbls):</i> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">670,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">83.72</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">1/1/10 - 12/31/10</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">195,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">76.85</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">3/1/10 - 12/31/10</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">1,463,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">88.63</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">5/1/10 - 12/31/10</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">2,136,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">88.36</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">1/1/11 - 12/31/11</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">2,268,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">92.68</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">1/1/12 - 12/31/12</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><i>Natural gas (volumes in MMBtus):</i> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">418,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">5.99</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">2/1/10 - 12/31/10</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">1,250,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">5.55</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">3/1/10 - 12/31/10</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">5,076,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">6.14</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">1/1/11 - 12/31/11</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Price swap </div></td> <td> </td> <td> </td> <td align="right">300,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">6.54</td> <td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">1/1/12 - 12/31/12</td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>The index prices for the oil price swaps are based on the NYMEX-West Texas Intermediate monthly average futures price.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td> <td> </td> <td>The index prices for the natural gas price swaps are based on the NYMEX-Henry Hub last trading day futures price.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Commodity derivative contracts at June 30, 2010. </i></b>The following table sets forth the Company’s outstanding commodity derivative contracts at June 30, 2010: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>First</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Second</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Third</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Fourth</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Quarter</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Quarter</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Quarter</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Quarter</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Oil Swaps: </b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2010:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (Bbl) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">1,817,936</td> <td> </td> <td> </td> <td> </td> <td align="right">1,651,936</td> <td> </td> <td> </td> <td> </td> <td align="right">3,469,872</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price per Bbl </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">76.78</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">76.43</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">76.61</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2011:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (Bbl) </div></td> <td> </td> <td> </td> <td align="right">1,378,436</td> <td> </td> <td> </td> <td> </td> <td align="right">1,339,436</td> <td> </td> <td> </td> <td> </td> <td align="right">1,304,436</td> <td> </td> <td> </td> <td> </td> <td align="right">1,272,436</td> <td> </td> <td> </td> <td> </td> <td align="right">5,294,744</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price per Bbl </div></td> <td> </td> <td align="right">$</td> <td align="right">81.55</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">81.80</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">82.03</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">82.26</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">81.90</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2012:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (Bbl) </div></td> <td> </td> <td> </td> <td align="right">693,000</td> <td> </td> <td> </td> <td> </td> <td align="right">693,000</td> <td> </td> <td> </td> <td> </td> <td align="right">693,000</td> <td> </td> <td> </td> <td> </td> <td align="right">693,000</td> <td> </td> <td> </td> <td> </td> <td align="right">2,772,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price per Bbl </div></td> <td> </td> <td align="right">$</td> <td align="right">99.07</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">99.07</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">99.07</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">99.07</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">99.07</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Natural Gas Swaps: </b><sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2010:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (MMBtu) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">2,427,000</td> <td> </td> <td> </td> <td> </td> <td align="right">2,258,000</td> <td> </td> <td> </td> <td> </td> <td align="right">4,685,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price per MMBtu </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.03</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.03</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.03</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2011:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (MMBtu) </div></td> <td> </td> <td> </td> <td align="right">1,569,000</td> <td> </td> <td> </td> <td> </td> <td align="right">3,069,000</td> <td> </td> <td> </td> <td> </td> <td align="right">3,069,000</td> <td> </td> <td> </td> <td> </td> <td align="right">3,069,000</td> <td> </td> <td> </td> <td> </td> <td align="right">10,776,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price per MMBtu </div></td> <td> </td> <td align="right">$</td> <td align="right">6.36</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.62</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.62</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.62</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.58</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2012:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (MMBtu) </div></td> <td> </td> <td> </td> <td align="right">75,000</td> <td> </td> <td> </td> <td> </td> <td align="right">75,000</td> <td> </td> <td> </td> <td> </td> <td align="right">75,000</td> <td> </td> <td> </td> <td> </td> <td align="right">75,000</td> <td> </td> <td> </td> <td> </td> <td align="right">300,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price per MMBtu </div></td> <td> </td> <td align="right">$</td> <td align="right">6.54</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.54</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.54</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.54</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6.54</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Natural Gas Collars: </b><sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2010:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (MMBtu) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">1,500,000</td> <td> </td> <td> </td> <td> </td> <td align="right">1,500,000</td> <td> </td> <td> </td> <td> </td> <td align="right">3,000,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price per MMBtu </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">$</td> <td nowrap="nowrap" align="right">5.25 - $5.75</td> <td> </td> <td> </td> <td align="right">$</td> <td nowrap="nowrap" align="right">6.00 - $6.80</td> <td> </td> <td> </td> <td align="right">$</td> <td nowrap="nowrap" align="right">5.63 - $6.28</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2011:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (MMBtu) </div></td> <td> </td> <td> </td> <td align="right">1,500,000</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,500,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price per MMBtu </div></td> <td> </td> <td align="right">$</td> <td nowrap="nowrap" align="right">6.00 - $6.80</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$</td> <td nowrap="nowrap" align="right">6.00 - $6.80</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Natural Gas Basis Swaps: </b><sup style="font-size: 85%; vertical-align: text-top"><b>(c)</b></sup> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2010:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (MMBtu) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">2,100,000</td> <td> </td> <td> </td> <td> </td> <td align="right">2,100,000</td> <td> </td> <td> </td> <td> </td> <td align="right">4,200,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price per MMBtu </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.85</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.85</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.85</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px"><b><i>2011:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Volume (MMBtu) </div></td> <td> </td> <td> </td> <td align="right">1,800,000</td> <td> </td> <td> </td> <td> </td> <td align="right">1,800,000</td> <td> </td> <td> </td> <td> </td> <td align="right">1,800,000</td> <td> </td> <td> </td> <td> </td> <td align="right">1,800,000</td> <td> </td> <td> </td> <td> </td> <td align="right">7,200,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price per MMBtu </div></td> <td> </td> <td align="right">$</td> <td align="right">0.87</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.76</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.76</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.76</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.79</td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>The index prices for the oil price swaps are based on the NYMEX-West Texas Intermediate monthly average futures price.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td> <td> </td> <td>The index prices for the natural gas price swaps and collars are based on the NYMEX-Henry Hub last trading day futures price.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(c)</td> <td> </td> <td>The basis differential between the El Paso Permian delivery point and NYMEX Henry Hub delivery point.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Interest rate derivative contracts. </i></b>The Company has an interest rate swap which fixes the LIBOR interest rate on $300 million of the Company’s bank debt at 1.90 percent for three years beginning in May 2009. For this portion of the Company’s bank debt, the all-in interest rate will be calculated by adding the fixed rate of 1.90 percent to a margin that ranges from 2.00 percent to 3.00 percent, depending on the amount of bank debt outstanding. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the gains and losses reported in earnings related to the commodity and interest rate derivative instruments for the three and six months ended June 30, 2010 and 2009: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three Months Ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b><i>Gain (loss) on derivatives not designated as hedges:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap"> <div style="margin-left:30px; text-indent:-15px"><i>Cash (payments on) receipts from derivatives not designated as hedges:</i> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Commodity derivatives: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Oil </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2,852</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">21,828</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(12,985</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">56,412</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">Natural gas </div></td> <td> </td> <td> </td> <td align="right">5,614</td> <td> </td> <td> </td> <td> </td> <td align="right">3,292</td> <td> </td> <td> </td> <td> </td> <td align="right">6,120</td> <td> </td> <td> </td> <td> </td> <td align="right">5,832</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Interest rate derivatives </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,221</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(779</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,434</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(779</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><i>Mark-to-market gain (loss):</i> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Commodity derivatives: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">Oil </div></td> <td> </td> <td> </td> <td align="right">119,303</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(105,062</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">120,741</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(144,099</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Natural gas </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,509</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,312</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">20,678</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5,018</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Interest rate derivatives </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,572</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">3,427</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,784</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,000</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:75px; text-indent:-15px">Total gain (loss) on derivatives not designated as hedges </div></td> <td> </td> <td align="left">$</td> <td align="right">112,763</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(81,606</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">128,336</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(86,652</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     All of the Company’s commodity derivative contracts at June 30, 2010 are expected to settle by December 31, 2012. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. 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