Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

(14) SEGMENT INFORMATION

The Company's reportable business segments have been identified based on the differences in products or services provided. Revenues for the E&P segment are derived from the production and sale of natural gas and crude oil. The Midstream Services segment generates revenue through the marketing of both Company and third-party produced natural gas volumes and through gathering fees associated with the transportation of natural gas to market.

Summarized financial information for the Company's reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2010 Annual Report on Form 10-K. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs and expenses. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense and other income, (loss) net. The "Other" column includes items not related to the Company's reportable segments including real estate and corporate items.

	Exploration
	and		Midstream
	Production		Services	Other		Total
	(in thousands)
Three months ended September 30, 2011:
Revenues from external customers	$   553,913		$   213,328	$            14		$   767,255
Intersegment revenues	1,707		530,503	818		533,028
Operating income	228,476		66,837	405		295,718
Other income (loss), net(1)	(17)		(109)	4		(122)
Depreciation, depletion and amortization expense	169,391		9,414	308		179,113
Interest expense(1)	2,003		3,654	0		5,657
Provision for income taxes(1)	89,811		24,791	164		114,766
Assets	5,827,527	(2)	1,116,333	270,247	(3)	7,214,107
Capital investments(4)	421,182		32,158	17,095		470,435
Three months ended September 30, 2010:
Revenues from external customers	$   487,133		$   195,039	$              0		$   682,172
Intersegment revenues	4,767		451,870	247		456,884
Operating income	216,696		53,390	50		270,136
Other income (loss), net(1)	219		107	0		326
Depreciation, depletion and amortization expense	143,457		7,684	143		151,284
Interest expense(1)	1,701		4,888	0		6,589
Provision for income taxes(1)	84,257		18,957	21		103,235
Assets	4,572,128	(2)	910,506	510,090	(3)	5,992,724
Capital investments(4)	420,294		77,006	19,330		516,630
	Exploration
	and		Midstream
	Production		Services	Other		Total
	(in thousands)
Nine months ended September 30, 2011:
Revenues from external customers	$ 1,551,538		$   657,204	$            14		$ 2,208,756
Intersegment revenues	10,120		1,526,504	2,387		1,539,011
Operating income	629,298		180,398	1,215		810,911
Other income, net(1)	332		(28)	17		321
Depreciation, depletion and amortization expense	486,130		27,170	880		514,180
Interest expense(1)	5,706		13,557	0		19,263
Provision for income taxes(1)	246,685		65,560	488		312,733
Assets	5,827,527	(2)	1,116,333	270,247	(3)	7,214,107
Capital investments(4)	1,365,434		137,998	53,506		1,556,938
Nine months ended September 30, 2010:
Revenues from external customers	$1,391,353		$   548,879	$              0		$ 1,940,232
Intersegment revenues	14,471		1,288,531	739		1,303,741
Operating income	629,600		134,781	162		764,543
Other income (loss), net(1)	67		186	12		265
Depreciation, depletion and amortization expense	413,069		20,831	407		434,307
Interest expense(1)	4,705		14,572	0		19,277
Provision for income taxes(1)	244,094		46,954	68		291,116
Assets	4,572,128	(2)	910,506	510,090	(3)	5,992,724
Capital investments(4)	1,272,953		216,025	44,802		1,533,780

(1) Interest income, interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level.

(2) Includes capital investments for office, technology, drilling rigs and other ancillary equipment not directly related to natural gas and oil property acquisition, exploration and development activities.

(3) Other assets represent corporate assets not allocated to segments and assets, including restricted cash and investments in cash equivalents, for non-reportable segments.

(4) Capital investments include reductions of $60.9 million and a reduction of $29.8 million for the three-month periods ended September 30, 2011 and 2010, respectively, and reductions of $3.0 million and $4.8 million for the nine-month periods ended September 30, 2011 and 2010, respectively, relating to the change in accrued expenditures between periods.

Included in intersegment revenues of the Midstream Services segment are $459.4 million and $394.3 million for the three months ended September 30, 2011 and 2010, respectively, and $1,327.3 million and $1,135.3 million for the nine months ended September 30, 2011 and 2010, respectively, for marketing of the Company's E&P sales. Corporate assets include cash and cash equivalents, restricted cash, furniture and fixtures, prepaid debt and other costs. Corporate general and administrative costs, depreciation expense and taxes other than income are allocated to the segments. For the three months ended September 30, 2011 and 2010, capital investments within the E&P segment include $8.3 million and $2.5 million, respectively, related to the Company's activities in Canada. For the nine months ended September 30, 2011 and 2010, capital investments within the E&P segment include $16.1 million and $9.8 million, respectively, related to the Company's activities in Canada. At September 30, 2011, assets include $25.6 million and at September 30, 2010, assets include $9.7 million related to the Company's activities in Canada.