Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurements

Schedule of the Company's assets and liabilities measured at fair value

The following is a listing of the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2011:

	Level 1		Level 2		Level 3
	(in thousands)
Assets:
Derivatives	$	—	$	39,609	$	—
Liabilities:
Derivatives	$	—	$	108,333	$	—
Net Profits Plan	$	—	$	—	$	133,419

The following is a listing of the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2010:

	Level 1		Level 2		Level 3
	(in thousands)
Assets:
Derivatives	$	—	$	62,332	$	—
Liabilities:
Derivatives	$	—	$	114,601	$	—
Net Profits Plan	$	—	$	—	$	135,850

Schedule of reconciliation of fair value measurements using Level 3 inputs

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
	(in thousands)
Beginning balance	$	147,403		$	143,019		$	135,850		$	170,291
Net increase (decrease) in liability (a)	(6,092		)	1,318			18,193			(218		)
Net settlements (a)(b)(c)	(7,892		)	(7,917		)	(20,624		)	(33,653		)
Transfers in (out) of Level 3	—			—			—			—
Ending balance	$	133,419		$	136,420		$	133,419		$	136,420

(a)Net changes in the Net Profits Plan liability are shown in the Change in Net Profits Plan liability line item of the accompanying statements of operations.

(b) Settlements represent cash payments made or accrued under the Net Profits Plan.  Settlements made under the Net Profits Plan of $2.0 million and $1.9 million for the three months ended June 30, 2011, and 2010, respectively, and $6.3 million and $20.1 million for the six months ended June 30, 2011, and 2010, respectively, as a result from divestiture proceeds.

(c)During the first quarter of 2011, the Company made the decision to cash out several Net Profits Plan pools associated with the acquisition of Nance Petroleum Corporation in 1999, through a $2.6 million direct payment.  As a result, the Company reduced its Net Profits Plan liability by that amount.  There is no impact on the accompanying statements of operations for the three-month or six-month periods ended June 30, 2011, related to these settlements.