Income Taxes	6 Months Ended
Jun. 30, 2013
Income Taxes
Income Taxes	F. Income Taxes The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. However, while all of the Partnership’s earnings are included in the Company’s net income, the Company does not record an income tax provision with respect to the portion of the Partnership’s earnings allocated to its noncontrolling public limited partners, which reduces the Company’s effective tax rate for periods following the IPO. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period. The Company’s effective income tax rate for the six months ended June 30, 2013 was 32.0%, compared to 36.4% for the six months ended June 30, 2012. The decrease in the first half of 2013 is primarily attributable to unfavorable state net operating loss adjustments recorded in 2012, a reduction in a valuation allowance related to bonus depreciation for state tax purposes in 2013 and the impact of the Partnership’s ownership structure, partially offset by increased state tax expense in 2013 due to higher natural gas prices and production sales volumes. There were no material changes to the Company’s methodology for determining unrecognized tax benefits during the three months ended June 30, 2013. The Company’s consolidated federal income tax liability has been settled with the Internal Revenue Service (IRS) through 2009. During the second quarter of 2013, the IRS began its examination of the Company’s 2010 and 2011 tax years. The Company believes that it is appropriately reserved for any federal and state uncertain tax positions. On July 9, 2013, Pennsylvania House Bill 465 was signed into law by the Governor of the Commonwealth of Pennsylvania (the Commonwealth). This legislation adopts multiple changes to the Commonwealth’s tax code, including an intangible expense addback provision effective in 2015, an increase of the cap on the net operating loss deduction in 2014 and 2015 and an extension of the franchise tax through 2015. The Company is evaluating the legislation but does not anticipate that it will have a material impact on its financial statements.

Income Taxes

6 Months Ended

Jun. 30, 2013

F. Income Taxes

The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. However, while all of the Partnership’s earnings are included in the Company’s net income, the Company does not record an income tax provision with respect to the portion of the Partnership’s earnings allocated to its noncontrolling public limited partners, which reduces the Company’s effective tax rate for periods following the IPO. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period.

The Company’s effective income tax rate for the six months ended June 30, 2013 was 32.0%, compared to 36.4% for the six months ended June 30, 2012. The decrease in the first half of 2013 is primarily attributable to unfavorable state net operating loss adjustments recorded in 2012, a reduction in a valuation allowance related to bonus depreciation for state tax purposes in 2013 and the impact of the Partnership’s ownership structure, partially offset by increased state tax expense in 2013 due to higher natural gas prices and production sales volumes.

There were no material changes to the Company’s methodology for determining unrecognized tax benefits during the three months ended June 30, 2013. The Company’s consolidated federal income tax liability has been settled with the Internal Revenue Service (IRS) through 2009. During the second quarter of 2013, the IRS began its examination of the Company’s 2010 and 2011 tax years. The Company believes that it is appropriately reserved for any federal and state uncertain tax positions.

On July 9, 2013, Pennsylvania House Bill 465 was signed into law by the Governor of the Commonwealth of Pennsylvania (the Commonwealth). This legislation adopts multiple changes to the Commonwealth’s tax code, including an intangible expense addback provision effective in 2015, an increase of the cap on the net operating loss deduction in 2014 and 2015 and an extension of the franchise tax through 2015. The Company is evaluating the legislation but does not anticipate that it will have a material impact on its financial statements.