Derivatives (Tables)

6 Months Ended

Jun. 30, 2011

Derivatives

Cash Flow Hedges Outstanding

Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Jul'11– Dec'11	Crude oil – swap	4,000 Bbl/day	$84.28	WTI – NYMEX
Jan'12– Dec'12	Crude oil – swap	4,500 Bbl/day	$95.91	WTI – NYMEX
Jan'13– Dec'13	Crude oil – swap	2,000 Bbl/day	$102.05	WTI – NYMEX
Jul'11– Dec'11	Natural gas – swap	10,000 MMBtu/day	$4.43	CEGT
Jul'11– Dec'11	Natural gas – swap	70,000 MMBtu/day	$4.87	IF – NYMEX (HH)
Jul'11– Dec'11	Natural gas – basis differential swap	15,000 MMBtu/day	($0.14)	Tenn Zone 0 – NYMEX
Jan'12– Dec'12	Natural gas – swap	30,000 MMBtu/day	$5.05	IF – NYMEX (HH)
Jan'12– Dec'12	Natural gas – swap	15,000 MMBtu/day	$5.62	IF – PEPL
Jul'11– Dec'11	Liquids – swap (1)	644,406 Gal/mo	$0.97	OPIS – Conway

(1) Types of liquids involved are natural gasoline, ethane, propane, isobutane and normal butane.

Non-qualifying Cash Flow Derivatives Outstanding

Term	Commodity	Hedged Volume	Basis Differential	Hedged Market
Jul'11– Dec'11	Natural gas – basis differential swap	15,000 MMBtu/day	($0.14)	Tenn Zone 0 – NYMEX
Jul'11– Dec'11	Natural gas – basis differential swap	10,000 MMBtu/day	($0.21)	CEGT – NYMEX
Jul'11– Dec'11	Natural gas – basis differential swap	10,000 MMBtu/day	($0.23)	PEPL – NYMEX

Fair Value Of Derivative Instruments And Locations In Balance Sheets

		Fair Value
	Balance Sheet Location	June 30, 2011		December 31, 2010
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative assets	$	5,402	$	5,091
Long-term	Non-current derivative assets		3,028		2,537
Total derivatives designated as hedging instruments			8,430		7,628
Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative assets		0		477
Total derivatives not designated as hedging instruments			0		477
Total derivative assets		$	8,430	$	8,105
		Derivative Liabilities
		Fair Value
	Balance Sheet Location	June 30, 2011		December 31, 2010
		(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps:
Current	Current portion of derivative liabilities	$	0	$	1,139
Long-term	Long-term derivative liabilities		0		475
Commodity derivatives:
Current	Current portion of derivative liabilities		9,975		13,166
Long-term	Long-term derivative liabilities		1,718		3,884
Total derivatives designated as hedging instruments			11,693		18,664
Derivatives not designated as hedging instruments
Commodity derivatives (basis swaps):
Current	Current portion of derivative liabilities		339		141
Total derivatives not designated as hedging instruments			339		141
Total derivative liabilities		$	12,032	$	18,805

Amount Of Gain Or (Loss) Recognized In Accumulated OCI On Derivative

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Accumulated OCI on  Derivative (Effective Portion) (1)
	2011			2010
	(In thousands)
Interest rate swaps	$	0		$	(1,217	)
Commodity derivatives		(3,163	)		18,260
Total	$	(3,163	)	$	17,043
(1) Net of taxes.

Gain Or Loss Of Reclassified Accumulated Other Comprehensive Income And Recognized Income

Derivative Instrument	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (1)						Amount of Gain or (Loss) Recognized in Income (2)
		2011			2010			2011		2010
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	(3,520	)	$	16,114		$	3,731	$	(662	)
Interest rate swaps	Interest, net		(1,431	)		(302	)		0		0
Total		$	(4,951	)	$	15,812		$	3,731	$	(662	)

(1) Effective portion of gain (loss).

(2) Ineffective portion of gain (loss).

Derivative Instrument	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (1)						Amount of Gain or (Loss) Recognized in Income (2)
		2011			2010			2011		2010
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	(2,885	)	$	21,687		$	1,822	$	429
Interest rate swaps	Interest, net		(1,734	)		(609	)		0		0
Total		$	(4,619	)	$	21,078		$	1,822	$	429

(1) Effective portion of gain (loss).

(2) Ineffective portion of gain (loss).

Amount Of Gain (Loss) Recognized In Income On Derivative

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative		Amount of Gain or (Loss) Recognized in Income on Derivative
			2011					2010
			(In thousands)
Commodity derivatives (basis swaps)	Oil and natural gas revenue		$		(347	)		$		967
Total			$		(347	)		$		967
Derivatives Not Designated as Hedging Instruments		Location of Gain or (Loss) Recognized in Income on Derivative		Amount of Gain or (Loss) Recognized in Income on Derivative
				2011			2010
				(In thousands)
Commodity derivatives (basis swaps)		Oil and natural gas revenue		$	(948	)	$		1,024
Total				$	(948	)	$		1,024