2.2.0.25falsefalse0202 - Disclosure - Summary of significant accounting policiestruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
$Jan-01-2010_Dec-31-2010http://www.sec.gov/CIK0001358071duration2010-01-01T00:00:002010-12-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0cxo_SummaryOfSignificantAccountingPoliciesAbstractcxofalsenadurationSummary of significant accounting policies.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringSummary of significant accounting policies.falsefalse3false0us-gaap_SignificantAccountingPoliciesTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<td width="92%"></td>
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<td>
<b><font style="font-family: 'Times New Roman', Times">Note B.  </font></b>
</td>
<td>
<b><i><font style="font-family: 'Times New Roman', Times">Summary
of significant accounting policies</font></i></b>
</td>
</tr>
</table>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Principles of consolidation.</i></b>  The
consolidated financial statements of the Company include the
accounts of the Company and its wholly-owned subsidiaries. A
third-party formed an entity to effectuate a tax-free exchange
of assets for the Company. The Company has 100 percent
control over the decisions of the entity, but has no current
direct ownership. The third-party will convey ownership to the
Company upon completion of the tax-free exchange process. As a
result of the Company’s control over the entity it has been
consolidated in the Company’s financial statements. All
material intercompany balances and transactions have been
eliminated.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Discontinued operations.</i></b>  In December
2010, the Company sold its interests in certain non-core,
Permian Basin assets. As a result, the Company has reflected the
results of operations of these divested assets as discontinued
operations, rather than as a component of continuing operations.
See Note O for additional information regarding this
divestiture and its discontinued operations.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Use of estimates in the preparation of financial
statements.</i></b>  Preparation of financial
statements in conformity with generally accepted accounting
principles in the United States of America requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from these
estimates. Depletion of oil and natural gas properties are
determined using estimates of proved oil and natural gas
reserves. There are numerous uncertainties inherent in the
estimation of quantities of proved reserves and in the
projection of future rates of production and the timing of
development expenditures. Similarly, evaluations for impairment
of proved and unproved oil and natural gas properties are
subject to numerous uncertainties including, among others,
estimates of future recoverable reserves and commodity price
outlooks. Other significant estimates include, but are not
limited to, the asset retirement obligations, fair value of
derivative financial instruments, purchase price allocations for
business and oil and natural gas property acquisitions and fair
value of stock-based compensation.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Cash equivalents.</i></b>  The Company considers
all cash on hand, depository accounts held by banks, money
market accounts and investments with an original maturity of
three months or less to be cash equivalents. The Company’s
cash and cash equivalents are held in a few financial
institutions in amounts that exceed the insurance limits of the
Federal Deposit Insurance Corporation. However, management
believes that the Company’s counterparty risks are minimal
based on the reputation and history of the institutions selected.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Accounts receivable.</i></b>  The Company sells
oil and natural gas to various customers and participates with
other parties in the drilling, completion and operation of oil
and natural gas wells. Joint interest and oil and natural gas
sales receivables related to these operations are generally
unsecured. The Company determines joint interest operations
accounts receivable allowances based on management’s
assessment of the creditworthiness of the joint interest owners
and the Company’s ability to realize the receivables
through netting of anticipated future production revenues.
Receivables are considered past due if full payment is not
received by the contractual due date. Past due accounts are
generally written off against the allowance for doubtful
accounts only after all collection attempts have been exhausted.
The Company had an allowance for doubtful accounts of
approximately $1.3 million and $2.4 million at
December 31, 2010 and 2009, respectively. The Company wrote
off $2.0 million in receivables against the allowance for
doubtful accounts and allowed for additional bed debt of
approximately $0.9 million during 2010.
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<b>
<font style="font-family: 'Times New Roman', Times">
</font>
</b>
</div>
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b>
<font style="font-family: 'Times New Roman', Times">
</font>
</b>
</div>
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<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Inventory.</i></b>  Inventory consists primarily
of tubular goods and other oilfield goods that the Company plans
to utilize in its ongoing exploration and development activities
and is carried at the lower of cost or market value, on a
weighted average cost basis.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Deferred loan costs.</i></b>  Deferred loan
costs are stated at cost, net of amortization, which is computed
using the effective interest and straight-line methods. The
Company had deferred loan costs of $52.8 million and
$20.7 million, net of accumulated amortization of
$15.2 million and $8.6 million, at December 31,
2010 and December 31, 2009, respectively.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
Future amortization expense of deferred loan costs at
December 31, 2010 is as follows:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent; text-align: left">
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<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>Total</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom">
<b>(In thousands)</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
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<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2011
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
14,221
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2012
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
14,368
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2013
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
9,308
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2014
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
2,173
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2015
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
2,362
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Thereafter
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
10,396
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Total
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
52,828
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Oil and natural gas properties.</i></b>  The
Company utilizes the successful efforts method of accounting for
its oil and natural gas properties. Under this method all costs
associated with productive wells and nonproductive development
wells are capitalized, while nonproductive exploration costs are
expensed. Capitalized acquisition costs relating to proved
properties are depleted using the
<font style="white-space: nowrap">unit-of-production</font>
method based on proved reserves. The depletion of capitalized
exploratory drilling and development costs is based on the
<font style="white-space: nowrap">unit-of-production</font>
method using proved developed reserves on a field basis.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
The Company generally does not carry the costs of drilling an
exploratory well as an asset in its consolidated balance sheets
for more than one year following the completion of drilling
unless the exploratory well finds oil and natural gas reserves
in an area requiring a major capital expenditure and both of the
following conditions are met:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
(i) the well has found a sufficient quantity of reserves to
justify its completion as a producing well; and
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
(ii) the Company is making sufficient progress assessing
the reserves and the economic and operating viability of the
project.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
Due to the capital intensive nature and the geographical
location of certain projects, it may take the Company longer
than one year to evaluate the future potential of the
exploration well and economics associated with making a
determination on its commercial viability. In these instances,
the project’s feasibility is not contingent upon price
improvements or advances in technology, but rather the
Company’s ongoing efforts and expenditures related to
accurately predicting the hydrocarbon recoverability based on
well information, gaining access to other companies’
production, transportation or processing facilities
<font style="white-space: nowrap">and/or</font>
getting partner approval to drill additional appraisal wells.
These activities are ongoing and being pursued constantly.
Consequently, the Company’s assessment of suspended
exploratory well costs is continuous until a decision can be
made that the well has found proved reserves or is noncommercial
and is charged to exploration and abandonments expense. See
Note C for additional information regarding the
Company’s suspended exploratory well costs.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
Proceeds from the sales of individual properties and the
capitalized costs of individual properties sold or abandoned are
credited and charged, respectively, to accumulated depletion.
Generally, no gain or loss is recognized until the entire
amortization base is sold. However, gain or loss is recognized
from the sale of less than an entire
amortization base if the disposition is significant enough to
materially impact the depletion rate of the remaining properties
in the amortization base. Ordinary maintenance and repair costs
are expensed as incurred.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
Costs of significant nonproducing properties, wells in the
process of being drilled and completed and development projects
are excluded from depletion until such time as the related
project is developed and proved reserves are established or
impairment is determined. The Company capitalizes interest, if
debt is outstanding, on expenditures for significant development
projects until such projects are ready for their intended use.
At December 31, 2010 and 2009 the Company had excluded
$80.6 million and $30.9 million, respectively, of
capitalized costs from depletion and had capitalized interest of
$0.2 million, $0.07 million and $1.2 million,
during 2010, 2009 and 2008, respectively.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
The Company reviews its long-lived assets to be held and used,
including proved oil and natural gas properties, whenever events
or circumstances indicate that the carrying value of those
assets may not be recoverable. An impairment loss is indicated
if the sum of the expected future cash flows is less than the
carrying amount of the assets. In this circumstance, the Company
recognizes an impairment loss for the amount by which the
carrying amount of the asset exceeds the estimated fair value of
the asset. The Company reviews its oil and natural gas
properties by amortization base or by individual well for those
wells not constituting part of an amortization base. For each
property determined to be impaired, an impairment loss equal to
the difference between the carrying value of the properties and
the estimated fair value (discounted future cash flows) of the
properties would be recognized at that time. Estimating future
cash flows involves the use of judgments, including estimation
of the proved and unproved oil and natural gas reserve
quantities, timing of development and production, expected
future commodity prices, capital expenditures and production
costs. The Company recognized impairment expense from continuing
and discontinued operations of $15.2 million,
$12.2 million and $18.4 million during the years ended
December 31, 2010, 2009 and 2008, respectively, primarily
related to its proved oil and natural gas properties.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
Unproved oil and natural gas properties are each periodically
assessed for impairment by considering future drilling plans,
the results of exploration activities, commodity price outlooks,
planned future sales or expiration of all or a portion of such
projects. During the years ended December 31, 2010, 2009
and 2008, the Company recognized expense from continuing and
discontinued operations of $7.6 million, $5.1 million
and $31.6 million, respectively, related to abandoned
prospects, which is included in exploration and abandonments
expense in the accompanying consolidated statements of
operations.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Other property and equipment.</i></b>  Other
capital assets include buildings, vehicles, computer equipment
and software, telecommunications equipment, leasehold
improvements and furniture and fixtures. These items are
recorded at cost, or fair value if acquired, and are depreciated
using the straight-line method based on expected lives of the
individual assets or group of assets ranging from two to
31 years.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Intangible assets.</i></b>  The Company has
capitalized certain operating rights acquired in an acquisition.
The gross operating rights of approximately $38.7 million
and related accumulated amortization of $3.7 million at
December 31, 2010, which have no residual value, are
amortized over the estimated economic life of approximately
25 years. Impairment will be assessed if indicators of
potential impairment exist or when there is a material change in
the remaining useful economic life. Amortization expense for the
years ended December 31, 2010, 2009 and
2008 was approximately $1.5 million, $1.6 million and
$0.6 million, respectively. The following table reflects
the estimated aggregate amortization expense for each of the
periods presented below:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="88%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="8%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>(In thousands)</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2011
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,549
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2012
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,549
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2013
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,549
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2014
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,549
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
2015
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,549
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Thereafter
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
27,228
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Total
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
34,973
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Environmental.</i></b>  The Company is subject
to extensive federal, state and local environmental laws and
regulations. These laws, which are often changing, regulate the
discharge of materials into the environment and may require the
Company to remove or mitigate the environmental effects of the
disposal or release of petroleum or chemical substances at
various sites. Environmental expenditures are expensed.
Expenditures that relate to an existing condition caused by past
operations and that have no future economic benefits are
expensed. Liabilities for expenditures of a noncapital nature
are recorded when environmental assessment
<font style="white-space: nowrap">and/or</font>
remediation is probable and the costs can be reasonably
estimated. Such liabilities are generally undiscounted unless
the timing of cash payments is fixed and readily determinable.
At December 31, 2010 and 2009, the Company has accrued
approximately $1.4 million and $0.8 million,
respectively, related to environmental liabilities. During the
years ended December 31, 2010, 2009 and 2008, the Company
has recognized environmental charges of $3.0 million,
$2.3 million and $0.5 million, respectively.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Oil and natural gas sales and
imbalances.</i></b>  Oil and natural gas revenues are
recorded at the time of delivery of such products to pipelines
for the account of the purchaser or at the time of physical
transfer of such products to the purchaser. The Company follows
the sales method of accounting for oil and natural gas sales,
recognizing revenues based on the Company’s share of actual
proceeds from the oil and natural gas sold to purchasers. Oil
and natural gas imbalances are generated on properties for which
two or more owners have the right to take production
“in-kind” and, in doing so, take more or less than
their respective entitled percentage. Imbalances are tracked by
well, but the Company does not record any receivable from or
payable to the other owners unless the imbalance has reached a
level at which it exceeds the remaining reserves in the
respective well. If reserves are insufficient to offset the
imbalance and the Company is in an overtake position, a
liability is recorded for the amount of shortfall in reserves
valued at a contract price or the market price in effect at the
time the imbalance is generated. If the Company is in an
undertake position, a receivable is recorded for an amount that
is reasonably expected to be received, not to exceed the current
market value of such imbalance.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
The following table reflects the Company’s natural gas
imbalance positions at December 31, 2010 and 2009 as well
as amounts reflected in oil and natural gas production expense
for the years ended December 31, 2010 and 2009:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="80%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
<td width="3%"> </td><!-- colindex=03 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=03 type=lead -->
<td width="6%" align="right"> </td><!-- colindex=03 type=body -->
<td width="1%" align="left"> </td><!-- colindex=03 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>December 31,</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2010</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2009</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="6" align="center" valign="bottom">
<b>(Dollars in thousands)</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Natural gas imbalance liability (included in asset retirement
obligations and other long-term liabilities)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
403
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
533
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Overtake position (Mcf)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
71,153
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
101,278
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Natural gas imbalance receivable (included in other assets)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
100
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
444
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Undertake position (Mcf)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
22,240
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
98,584
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
</div>
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<!-- XBRL Pagebreak Begin -->
</div>
<!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<div style="margin-left: 0%">
<!-- BEGIN PAGE WIDTH -->
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b>
<font style="font-family: 'Times New Roman', Times">
</font>
</b>
</div>
<div style="margin-top: 0pt; font-size: 1pt">
</div>
<div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b>
<font style="font-family: 'Times New Roman', Times">
</font>
</b>
</div>
<!-- XBRL Pagebreak End -->
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent; text-align: left">
<!-- Table Width Row BEGIN -->
<tr style="font-size: 1pt" valign="bottom">
<td width="73%"> </td><!-- colindex=01 type=maindata -->
<td width="2%"> </td><!-- colindex=02 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=02 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=02 type=body -->
<td width="1%" align="left"> </td><!-- colindex=02 type=hang1 -->
<td width="3%"> </td><!-- colindex=03 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=03 type=lead -->
<td width="3%" align="right"> </td><!-- colindex=03 type=body -->
<td width="1%" align="left"> </td><!-- colindex=03 type=hang1 -->
<td width="3%"> </td><!-- colindex=04 type=gutter -->
<td width="1%" align="right"> </td><!-- colindex=04 type=lead -->
<td width="5%" align="right"> </td><!-- colindex=04 type=body -->
<td width="1%" align="left"> </td><!-- colindex=04 type=hang1 -->
</tr>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>Years Ended December 31,</b>
</td>
<td>
 
</td>
</tr>
<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="center" valign="bottom">
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2010</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2009</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2008</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
</tr>
<!-- TableOutputBody -->
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Value of net overtake (undertake) arising during the year
increasing (decreasing) oil and natural gas production expense
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(38
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
23
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(189
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Net overtake (undertake) position arising during the year (Mcf)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(8,695
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
7,317
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(19,269
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Value of net (undertake) related to divested natural gas
properties
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(252
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Net (undertake) position related to divested natural gas
properties (Mcf)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
(54,914
</td>
<td nowrap="nowrap" align="left" valign="bottom">
)
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
—
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Derivative instruments and hedging.</i></b>  The
Company recognizes all derivative instruments as either assets
or liabilities measured at fair value. The Company netted the
fair value of derivative instruments by counterparty in the
accompanying consolidated balance sheets where the right of
offset exists.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
The Company may designate a derivative instrument as hedging the
exposure to changes in the fair value of an asset or a liability
or an identified portion thereof that is attributable to a
particular risk (a “fair value hedge”) or as hedging
the exposure to variability in expected future cash flows that
are attributable to a particular risk (a “cash flow
hedge”). Special accounting for qualifying hedges allows
the effective portion of a derivative instrument’s gains
and losses to offset related results on the hedged item in the
statement of operations and requires that a company formally
document, designate and assess the effectiveness of the
transactions that receive hedge accounting treatment. Both at
the inception of a hedge and on an ongoing basis, a hedge must
be expected to be highly effective in achieving offsetting
changes in fair value or cash flows attributable to the
underlying risk being hedged. If the Company determines that a
derivative instrument is no longer highly effective as a hedge,
it discontinues hedge accounting prospectively and future
changes in the fair value of the derivative are recognized in
current earnings. The amount already reflected in accumulated
other comprehensive (loss) income (“AOCI”) remains
there until the hedged item affects earnings or it is probable
that the hedged item will not occur by the end of the originally
specified time period or within two months thereafter. The
Company assesses and measures hedge effectiveness at the end of
each quarter.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
Changes in the fair value of derivative instruments that are
fair value hedges are offset against changes in the fair value
of the hedged assets, liabilities or firm commitments, through
earnings. Effective changes in the fair value of derivative
instruments that are cash flow hedges are recognized in AOCI and
reclassified into earnings in the period in which the hedged
item affects earnings. Ineffective portions of a derivative
instrument’s change in fair value are immediately
recognized in earnings. Derivative instruments that do not
qualify, or cease to qualify, as hedges must be adjusted to fair
value and the adjustments are recorded through earnings. The
Company did not have any derivatives designated as fair value or
cash flow hedges during the years ended December 31, 2010
or 2009.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Asset retirement obligations.</i></b>  The
Company records the fair value of a liability for an asset
retirement obligation in the period in which it is incurred and
a corresponding increase in the carrying amount of the related
long-lived asset. Subsequently, the asset retirement cost
included in the carrying amount of the related asset is
allocated to expense through depreciation of the asset. Changes
in the liability due to passage of time are generally recognized
as an increase in the carrying amount of the liability and as
corresponding accretion expense.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Treasury stock.</i></b>  Treasury stock
purchases are recorded at cost. Upon reissuance, the cost of
treasury shares held is reduced by the average purchase price
per share of the aggregate treasury shares held.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>General and administrative expense.</i></b>  The
Company receives fees for the operation of jointly owned oil and
natural gas properties and records such reimbursements as
reductions of general and administrative expense. Such fees from
continuing and discontinued operations totaled approximately
$14.4 million, $11.4 million and $4.9 million for
the years ended December 31, 2010, 2009 and 2008,
respectively.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Stock-based compensation.</i></b>  From time to
time, the Company exchanges its equity instruments for services
provided by employees and directors that are based on the fair
value of the Company’s equity instruments or that may be
settled by the issuance of those equity instruments in exchange
for the services. The cost of the services
received in exchange for equity instruments, including stock
options, is measured based on the grant-date fair value of those
instruments. That cost is recognized as compensation expense
over the requisite service period (generally the vesting
period). Generally, no compensation cost is recognized for
equity instruments that do not vest.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<b><i>Income taxes.</i></b>  The Company recognizes
deferred tax assets and liabilities for the future tax
consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities
and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect
on deferred tax assets and liabilities of a change in tax rate
is recognized in income in the period that includes the
enactment date. A valuation allowance is established to reduce
deferred tax assets if it is more likely than not that the
related tax benefits will not be realized.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
The Company evaluates uncertain tax positions for recognition
and measurement in the consolidated financial statements. To
recognize a tax position, the Company determines whether it is
more likely than not that the tax positions will be sustained
upon examination, including resolution of any related appeals or
litigation, based on the technical merits of the position. A tax
position that meets the more likely than not threshold is
measured to determine the amount of benefit to be recognized in
the consolidated financial statements. The amount of tax benefit
recognized with respect to any tax position is measured as the
largest amount of benefit that is greater than 50 percent
likely of being realized upon settlement. The Company had no
uncertain tax positions that required recognition in the
consolidated financial statements at December 31, 2010 and
2009. Any interest or penalties would be recognized as a
component of income tax expense.
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<b><i><font style="font-family: 'Times New Roman', Times">Recent
accounting pronouncements.</font></i></b>
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<b><i>Business combinations.</i></b>  In December
2010, the Financial Accounting Standards Board (the
“FASB”) issued an update in order to address diversity
in practice about the interpretation of the pro forma revenue
and earnings disclosure requirements for business combinations.
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The update requires a public entity to disclose pro forma
information for business combinations that occurred in the
current reporting period. The disclosures include pro forma
revenue and earnings of the combined entity for the current
reporting period as though the acquisition date for all business
combinations that occurred during the year had been as of the
beginning of the annual reporting period. If comparative
financial statements are presented, the pro forma revenue and
earnings of the combined entity for the comparable prior
reporting period should be reported as though the acquisition
date for all business combinations that occurred during the
current year had been as of the beginning of the comparable
prior annual reporting period.
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In practice, some preparers have presented the pro forma
information in their comparative financial statements as if the
business combination that occurred in the current reporting
period had occurred as of the beginning of each of the current
and prior annual reporting periods. Other preparers have
disclosed the pro forma information as if the business
combination occurred at the beginning of the prior annual
reporting period only, and carried forward the related
adjustments, if applicable, through the current reporting
period. The Company early adopted the update effective January
1, 2010, and the adoption did not have a significant impact on
its consolidated financial statements.
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<b><i>Various topics.</i></b>  In February 2010, the
FASB issued an update to various topics, which eliminated
outdated provisions and inconsistencies in the Accounting
Standards Codification (the “Codification”), and
clarified certain guidance to reflect the FASB’s original
intent. The update is effective for the first reporting period,
including interim periods, beginning after issuance of the
update, except for the amendments affecting embedded derivatives
and reorganizations. In addition to amending the Codification,
the FASB made corresponding changes to the legacy accounting
literature to facilitate historical research. These changes are
included in an appendix to the update. The Company adopted the
update effective January 1, 2010, and the adoption did not
have a significant impact on its consolidated financial
statements.
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<b><i>Accounting for extractive
activities.</i></b>  In April 2010, the FASB issued an
amendment to a paragraph in the accounting standard for oil and
natural gas extractive activities accounting. The standard adds
to the Codification the SEC’s <i>Modernization of Oil and
Gas Reporting </i>release. The Company adopted the update
effective April 20, 2010, and the adoption did not have a
significant impact on its consolidated financial statements.
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<!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element may be used to describe all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 22
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