Natural Gas Producing Activities (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2011

Natural Gas Producing Activities (Unaudited)

Schedule of capitalized cost incurred relating to natural gas and oil production activities

The following table presents the costs incurred relating to natural gas and oil production activities (a):

	For the years ended December 31,
	2011		2010		2009
	(Thousands)
At December 31:
Capitalized costs	$	5,772,083	$	4,655,217	$	3,423,068
Accumulated depreciation and depletion	1,177,526		967,473		797,303
Net capitalized costs	4,594,557		3,687,744		$	2,625,765

(a)Amounts exclude capital expenditures for facilities and information technology.

Schedule of cost incurred relating to property acquisition, exploration and development

Costs incurred for the years ended December 31:

	For the years ended December 31,
	2011		2010		2009
	(Thousands)
Property acquisition:
Proved properties (b)	$	108,717	$	15,359	$	6,035
Unproved properties	41,085		342,372		24,941
Exploration (c)	2,344		5,105		14,909
Development	928,294		881,331		676,121

(b)Amount includes $92.6 million of liabilities assumed in exchange for proved developed properties as part of the ANPI transaction in 2011.

(c)Amounts include capitalizable exploratory costs and exploration expense, excluding impairments.

Results of Operations for Producing Activities

	For the years ended December 31,
	2011		2010		2009
	(Thousands)
Revenues:
Affiliated	$	6,225	$	7,371	$	6,923
Nonaffiliated	785,060		530,286		414,067
Production costs	80,911		67,414		62,978
Exploration costs	4,932		5,368		17,905
Depreciation, depletion and accretion	257,144		183,699		117,424
Income tax expense	174,835		106,847		84,620
Results of operations from producing activities (excluding corporate overhead)	$	273,463	$	174,329	$	138,063

Schedule of the entity's proved reserves

	Years Ended December 31,
	2011	2010	2009
	(Millions of Cubic Feet)
Natural Gas
Proved developed and undeveloped reserves:
Beginning of year	5,205,692	4,056,059	3,097,260
Revision of previous estimates	(393,129)	(606,308)	(94,728)
Purchase of natural gas in place	39,436	2,536	–
Sale of natural gas in place	(1,223)	(1,679)	(741)
Extensions, discoveries and other additions	694,180	1,893,387	1,158,602
Production	(197,570)	(138,303)	(104,334)
End of year	5,347,386	5,205,692	4,056,059
Proved developed reserves:
Beginning of year	2,520,569	2,061,353	1,881,767
End of year	2,948,546	2,520,569	2,061,353

	Years Ended December 31,
	2011	2010	2009
	(Thousands of Bbls)
Oil (a)
Proved developed and undeveloped reserves:
Beginning of year	2,307	2,016	2,125
Revision of previous estimates	781	411	(10)
Purchase of oil in place	51	–	–
Sale of oil in place	–	–	–
Production	(208)	(120)	(99)
End of year	2,931	2,307	2,016
Proved developed reserves:
Beginning of year	2,307	2,016	2,125
End of year	2,931	2,307	2,016

(a)One thousand Bbl equals approximately 6 million cubic feet (MMcf).

Schedule of estimated future net cash flows from natural gas and oil reserves

	2011		2010		2009
	(Thousands)
Future cash inflows (a) (b) (c)	$	22,145,953	$	20,037,125	$	13,157,580
Future production costs	(3,435,200)		(3,313,378)		(3,804,077)
Future development costs	(2,600,982)		(2,497,312)		(2,929,255)
Future net cash flow before income taxes	16,109,771		14,226,435		6,424,248
10% annual discount for estimated timing of cash flows	(9,887,993)		(9,439,629)		(5,135,935)
Discounted future net cash flows before income taxes	6,221,778		4,786,806		1,288,313
Future income tax expenses, discounted at 10% annually	(2,288,954)		(1,728,594)		(489,559)
Standardized measure of discounted future net cash flows	$	3,932,824	$	3,058,212	$	798,754

Schedule of changes in the standardized measure of discounted net cash flows from natural gas and oil reserves

	2011		2010		2009
	(Thousands)
Sales and transfers of natural gas and oil produced – net	$	(710,373)	$	(470,243)	$	(323,225)
Net changes in prices, production and development costs	52,057		807,971		(3,161,428)
Extensions, discoveries and improved recovery, less related costs	806,597		1,739,308		369,075
Development costs incurred	498,175		310,557		560,911
Purchase of minerals in place – net	46,178		2,330		–
Sale of minerals in place – net	(1,124)		(532)		(775)
Revisions of previous quantity estimates	(356,830)		(191,336)		(31,047)
Accretion of discount	478,165		128,741		324,337
Net change in income taxes	(560,360)		(1,239,035)		743,686
Timing and other (a)	622,127		1,171,697		305,085
Net increase (decrease)	874,612		2,259,458		(1,213,381)
Beginning of year	3,058,212		798,754		2,012,135
End of year	$	3,932,824	$	3,058,212	$	798,754