Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

		Level 1		Level 2 (1)		Level 3		Total	Valuation Technique
Assets:
Oil and gas swaps and collars	$	0	$	7,531	$	0	$	7,531	(c)
Foreign currency forwards		0		305		0		305	(c)
Liabilities:
Oil and gas swaps and collars		0		16,680		0		16,680	(c)
Fair value of long term debt(2)		1,182,173		122,417		0		1,304,590	(a), (b)
Interest rate swaps		0		1,157		0		1,157	(c)
Total net liability	$	1,182,173	$	132,418	$	0	$	1,314,591

(1)Unless otherwise indicated, the fair value of our Level 2 derivative instruments reflects our best estimate and is based upon exchange or over-the-counter quotations whenever they are available. Quoted valuations may not be available due to location differences or terms that extend beyond the period for which quotations are available. Where quotes are not available, we utilize other valuation techniques or models to estimate market values. These modeling techniques require us to make estimations of future prices, price correlation and market volatility and liquidity. Our actual results may differ from our estimates, and these differences can be positive or negative.

(2)We have elected not to record our debt at fair value in the accompanying condensed consolidated balance sheets. See Note 7 for additional information regarding our long term debt.   The fair value of our long term debt at June 30, 2011 is as follows:

		Fair Value		Carrying Value
Term Loan (matures July 2015)	$	299,998	$	299,250
Revolving Credit Facility (matures July 2015)		0		0
Convertible Senior Notes (matures March 2025)		299,175		300,000	(a)
Senior Unsecured Notes (matures January 2016)		583,000		550,000
MARAD Debt (matures February 2027) (b)		122,417		112,516
Total	$	1,304,590	$	1,261,766

(a)Amount excludes the $14.1 million of unamortized discount recorded on the Convertible Senior Notes at June 30, 2011.

(b)The estimated fair value of all debt, other than MARAD Debt, was determined using level 1 inputs using the market approach.   The fair value of the MARAD debt was determined using a third party evaluation of the remaining average life and outstanding principal balance of the MARAD indebtedness as compared to other governmental obligations in the market place with similar terms.   The fair value of the MARAD debt was estimated using level 2 fair value inputs using the cost approach.

Fair Value of Long Term Debt

		Fair Value		Carrying Value
Term Loan (matures July 2015)	$	299,998	$	299,250
Revolving Credit Facility (matures July 2015)		0		0
Convertible Senior Notes (matures March 2025)		299,175		300,000	(a)
Senior Unsecured Notes (matures January 2016)		583,000		550,000
MARAD Debt (matures February 2027) (b)		122,417		112,516
Total	$	1,304,590	$	1,261,766

(a)Amount excludes the $14.1 million of unamortized discount recorded on the Convertible Senior Notes at June 30, 2011.

(b) The estimated fair value of all debt, other than MARAD Debt, was determined using level 1 inputs using the market approach.   The fair value of the MARAD debt was determined using a third party evaluation of the remaining average life and outstanding principal balance of the MARAD indebtedness as compared to other governmental obligations in the market place with similar terms.   The fair value of the MARAD debt was estimated using level 2 fair value inputs using the cost approach.