Derivative Activities (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Activities [Abstract]

Derivative volumes hedged and average hedge prices

			Average
Period	Contract Type	Volume Hedged	Hedge Price
Natural Gas
2012	Swaps	70,000 Mmbtu/day	$	5.00
2011	Collars	348,200 Mmbtu/day	$	5.33 - $6.18
2012	Collars	189,641 Mmbtu/day	$	5.32 - $5.91
2013	Collars	160,000 Mmbtu/day	$	5.09 - $5.65
Crude Oil
2012	Collars	2,000 bbls/day	$	70.00 - $80.00
2011	Call options	5,500 bbls/day	$	80.00
2012	Call options	4,700 bbls/day	$	85.00
NGLs (Natural gasoline)
2011	Swaps	7,000 bbls/day	$	104.17
2012	Swaps	5,000 bbls/day	$	102.59

Derivative Fair Value Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Hedge ineffectiveness — realized	$	2,036		$	—		$	4,558		$	(352	)
— unrealized		(3,971	)		2,389			2,531			2,400
Change in fair value of derivatives that do not qualify for hedge accounting(a)		58,990			(18,284	)		67,093			23,885
Realized gain on settlements — gas(a) (b)		5,334			10,179			8,424			17,230
Realized gain (loss) on settlements — oil (a) (b)		285			—			(7,727	)		—
Realized gain on settlements — NGLs (a) (b)		3,088			—			3,088			—
Realized gain on early settlement of oil derivatives (c)		—			15,697			—			15,697
Derivative fair value income	$	65,762		$	9,981		$	77,967		$	58,860

(a)	Derivatives that do not qualify for hedge accounting.
(b)	These amounts represent the realized gains or losses on settled derivatives that do not qualify for hedge accounting, which before settlement are included in the category described above called change in fair value of derivatives that do not qualify for hedge accounting.
(c)	Not included in realized prices.

Combined fair value of derivatives, by Consolidated balance sheet

	September 30,			December 31,
	2011			2010
Derivative assets:
Natural gas — collars	$	152,501		$	155,159
— collars — discontinued operations		—			8,195
— swaps		19,304			—
Crude oil — collars		(4,340	)		—
— call options		(20,737	)		(31,904	)
NGL — swaps		36,881			—
	$	183,609		$	131,450
Derivative liabilities:
Natural gas — collars	$	—		$	27,032
— basis swaps		—			(352	)
— swaps		—			—
Crude oil — collars		—			(12,051	)
— call options		—			(28,393	)
NGL — swaps		—			—
	$	—		$	(13,764	)

Derivative Gross Assets and Gross Liabilities

			September 30, 2011								December 31, 2010
	Assets		(Liabilities)						Assets		(Liabilities)
						Net								Net
	Carrying		Carrying			Carrying			Carrying		Carrying			Carrying
	Value		Value			Value			Value		Value			Value
Derivatives that qualify for cash flow hedge accounting:
Swaps (1)	$	19,304	$	—		$	19,304		$	—	$	—		$	—
Collars(1)		147,067		—			147,067			164,933		—			164,933
Collars — discontinued operations (1)		—		—			—			8,195		—			8,195
	$	166,371	$	—		$	166,371		$	173,128	$	—		$	173,128
Derivatives that do not qualify for hedge accounting:
Swaps (1)	$	36,881	$	—		$	36,881		$	—	$	—		$	—
Collars(1)		5,434		(4,340	)		1,094			17,259		(12,052	)		5,207
Call options(1)		—		(20,737	)		(20,737	)		—		(60,297	)		(60,297	)
Basis swaps(1)		—		—			—			—		(352	)		(352	)
	$	42,315	$	(25,077	)	$	17,238		$	17,259	$	(72,701	)	$	(55,442	)

⁽¹⁾ Included in unrealized derivative gain or loss in the accompanying consolidated balance sheets.

Effects of cash flow hedges and other hedges on accumulated other comprehensive income (loss)

	Three Months Ended September 30,												Nine Months Ended September 30,
							Realized Gain (Loss)												Realized Gain (Loss)
	Change in Hedge						Reclassified from OCI						Change in Hedge						Reclassified from OCI
	Derivative Fair Value						into Revenue (a)						Derivative Fair Value						into Revenue (a)
	2011			2010			2011			2010			2011			2010			2011			2010
Swaps	$	15,739		$	—		$	—		$	—		$	17,854		$	—		$	—		$	—
Collars		75,449			109,663			26,758			15,616			97,873			187,593			80,660			35,171
Collars — discontinued operations		—			(12	)		—			—			412			1			8,607			—
Income taxes		(34,195	)		(42,683	)		(10,034	)		(6,014	)		(41,609	)		(72,301	)		(33,476	)		(13,445	)
	$	56,993		$	66,968		$	16,724		$	9,602		$	74,530		$	115,293		$	55,791		$	21,726

^(a) For realized gains upon contract settlement, the reduction in AOCI is offset by an increase in natural gas, NGL and oil sales. For realized losses upon contract settlement, the increase in AOCI is offset by a decrease in natural gas, NGL and oil sales.

Effects of non-hedge derivatives on consolidated statement of operations

	Three Months Ended September 30,
	Gain (Loss) Recognized in					Gain (Loss) Recognized in					Derivative Fair Value
	Income (Non-hedge Derivatives)					Income (Ineffective Portion)					Income (Loss)
	2011		2010			2011			2010		2011		2010
Swaps	$	26,219	$	—		$	—		$	—	$	26,219	$	—
Collars		15,828		12,559			(1,935	)		2,389		13,893		14,948
Call options		25,650		(3,823	)		—			—		25,650		(3,823	)
Basis swaps		—		(1,144	)		—			—		—		(1,144	)
Total	$	67,697	$	7,592		$	(1,935	)	$	2,389	$	65,762	$	9,981

	Nine Months Ended September 30,
	Gain (Loss) Recognized in						Gain Recognized in Income				Derivative Fair Value
	Income (Non-hedge Derivatives)						(Ineffective Portion)				Income (Loss)
	2011			2010			2011		2010		2011			2010
Swaps	$	39,969		$	—		$	—	$	—	$	39,969		$	—
Collars		14,693			60,998			7,089		2,048		21,782			63,046
Call options		16,259			(3,823	)		—		—		16,259			(3,823	)
Basis swaps		(43	)		(363	)		—		—		(43	)		(363	)
Total	$	70,878		$	56,812		$	7,089	$	2,048	$	77,967		$	58,860