A summary of the unaudited quarterly results of operations for the years ended December 31, 2012 and 2011 is presented below (in thousands except share amounts).

	Year Ended December 31, 2012

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Revenue	$	372,903	$	343,183	$	425,861	$	374,825
Operating income		47,027		58,722		81,634		54,482
Net income		26,618		33,678		85,260		28,163
Income per common share from continuing operations attributable to the controlling interest:
Basic	$	0.44	$	0.56	$	1.42	$	0.47
Diluted	$	0.44	$	0.55	$	1.39	$	0.46

During the three months ended September 30, 2012, CPE Inc. completed its update of its most recent operating plans, inclusive of market and cash cost forecasts, and calculation of the resulting amount and timing of estimated future taxable income. Because of the reduced future tax value expected to be received, there was a decrease in the tax agreement liability due to Rio Tinto, resulting in a benefit to non-operating income for the three months ended September 30, 2012. In addition, the deferred tax valuation allowance was reduced based the update of the operating plans, resulting in a benefit to income tax expense.

	Year Ended December 31, 2011

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Revenue	$	356,545	$	387,679	$	406,950	$	402,487
Operating income		53,882		74,706		60,173		63,984
Net income		26,773		94,594		24,611		43,819
Income (loss) per common share from continuing operations attributable to the controlling interest:
Basic	$	0.45	$	1.58	$	0.41	$	0.73
Diluted	$	0.44	$	1.56	$	0.41	$	0.72

The successful bids for the WAII North and WAII South Coal Tracts during the three months ended June 30, 2011 were a triggering event for updating our estimates of the ARO and tax agreement liability. Increases in the mine life at Antelope deferred reclamation activities which resulted in a reduction in the ARO that exceeded the carrying amount of the related asset retirement cost by $15.7 million and was recognized as a reduction of depreciation and depletion expense in the three months ended June 30, 2011. An increase in the tax agreement liability resulted in a $42.7 million charge to non-operating income and was offset by a related increase of $15.4 million to the net value of deferred tax assets which was recorded through income tax benefit in the three months ended June 30, 2011. In addition, the successful bids increased our estimate of future taxable income and we expected to realize the benefit of an additional $78.2 million of our deferred tax assets, against which we had previously recorded a valuation allowance, which was recorded through income tax benefit in the three months ended June 30, 2011.

During the three months ended September 30, 2011, CPE Inc. completed its 2010 federal income tax return filing process, which included a final determination of the amount of CPE Inc.'s increased tax basis in CPE Resources's assets recorded as a result of the Secondary Offering. By operation of the partnership income tax rules following Rio Tinto's exit from the partnership under the Secondary Offering, the future value attributable to the additional tax basis has been recalculated and reduced. Correspondingly, the liability CPE Inc. expected to owe under the Tax Receivable Agreement at the time of the Secondary Offering decreased, resulting in a $29.9 million credit to additional paid in capital as of September 30, 2011.

Additionally, during the three months ended September 30, 2011, CPE Inc. completed its annual update of its most recent operating plans and calculation of the resulting estimated future taxable income. Because of the reduced future tax value expected to be received as explained above, there was a decrease in the tax agreement liability due to Rio Tinto, resulting in a $22.9 million benefit to non-operating income for the three months ended September 30, 2011. Related adjustments of $32.9 million to the net value of deferred tax assets were recorded through income tax expense.