Segment Information

3 Months Ended

Mar. 31, 2012

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 2011 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 interest and other income (loss). 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 March 31, 2012:
Revenues from external customers	$        466,265	$        190,173		$                 31			$          656,469
Intersegment revenues	713	356,281		819			357,813
Operating income	116,243	69,289		428			185,960
Other income (loss) (1)	(183)	(18)		1			(200)
Depreciation, depletion and amortization expense	182,739	10,570		318			193,627
Interest expense(1)	3,322	3,667		349			7,338
Provision for income taxes(1)	44,838	25,848		32			70,718
Assets	7,038,247	1,087,020		428,894		(2)	8,554,161
Capital investments(3)	533,139	26,164		13,809			573,112
Three months ended March 31, 2011:
Revenues from external customers	$        470,656	$        205,679		$                   0			$          676,335
Intersegment revenues	5,514	473,589		776			479,879
Operating income	178,283	53,917		451			232,651
Other income (loss)(1)	343	29		2			374
Depreciation, depletion and amortization expense	154,810	8,391		246			163,447
Interest expense(1)	2,904	4,532		0			7,436
Provision for income taxes(1)	69,382	19,420		178			88,980
Assets	5,134,657	1,025,072		181,019		(2)	6,340,748
Capital investments(3)	468,212	45,978		16,339			530,529

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

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

(3) Capital investments include increases of $15.3 million and $1.5 million for the three months ended March 31, 2012 and 2011, respectively, relating to the change in accrued expenditures between periods.

Included in intersegment revenues of the Midstream Services segment are $286.1 million and $411.2 million for the three months ended March 31, 2012 and 2011, respectively, for marketing of the Company's E&P sales. Corporate assets include cash and cash equivalents, 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 March 31, 2012 and 2011, capital investments within the E&P segment include $2.4 million related to the Company's activities in Canada. At March 31, 2012 and at March 31, 2011, assets include $31.3 million and $13.7 million, respectively, related to the Company's activities in Canada.