DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2012

Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet

The following tables disclose the location and fair value amounts of derivative instruments reported in our balance sheet at December 31, 2012 and December 31, 2011.

Fair Value of Derivative Instruments at December 31, 2012
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of hedging contracts	$	39,655	Current liabilities: Fair value of hedging contracts	($	149	)
	Long-term assets: Fair value of hedging contracts		9,199	Long-term liabilities: Fair value of hedging contracts		(1,530	)
		$	48,854		($	1,679	)

Fair Value of Derivative Instruments at December 31, 2011
	Asset Derivatives			Liability Derivatives
Description	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Current assets: Fair value of hedging contracts	$	25,177	Current liabilities: Fair value of hedging contracts	($	11,122	)
	Long-term assets: Fair value of hedging contracts		22,543	Long-term liabilities: Fair value of hedging contracts		(815	)
		$	47,720		($	11,937	)

Effect of Derivative Instruments in Statement of Operations

The following table discloses the effect of derivative instruments in the statement of operations for the years ended December 31, 2012, 2011 and 2010.

The Effect of Derivative Instruments on the Statement of Operations for the Years Ended December 31, 2012, 2011 and 2010
Derivatives in Cash Flow Hedging Relationships	Amount of Gain Recognized in OCI on Derivative (a)		Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (b)				Gain Recognized in Income on Derivative (Ineffective Portion)
			Location				Location
	2012			2012				2012
Commodity contracts	$	6,965	Operating revenue - oil/gas production	$	30,326		Derivative income, net	$	3,428
Total	$	6,965		$	30,326			$	3,428
	2011			2011				2011
Commodity contracts	$	36,072	Operating revenue - oil/gas production	($	13,274	)	Derivative income, net	$	1,418
Total	$	36,072		($	13,274	)		$	1,418
	2010			2010				2010
Commodity contracts	$	1,176	Operating revenue - oil/gas production	$	9,631		Derivative income, net	$	3,265
Total	$	1,176		$	9,631			$	3,265

(a) Net of related tax effect of $3,918, $20,290 and $292 for the years ended December 31, 2012, 2011 and 2010, respectively.

(b) For the year ended December 31, 2012, effective hedging contracts increased oil revenue by $8,546 and increased gas revenue by $21,780. For the year ended December 31, 2011, effective hedging contracts decreased oil revenue by $32,706 and increased gas revenue by $19,432. For the year ended December 31, 2010, effective hedging contracts decreased oil revenue by $29,047 and increased gas revenue by $38,678.

Hedging Positions

The following table illustrates our hedging positions for calendar years 2013, 2014 and 2015 as of February 21, 2013:

	Fixed-Price Swaps NYMEX (except where noted)
	Natural Gas				Oil
	Daily Volume (MMBtus/d)		Swap Price  ($)		Daily  Volume (Bbls/d)			Swap Price  ($)
2013		10,000		4.000		1,000			92.80
2013		10,000		5.270		2,000	*		94.05
2013		10,000		5.320		1,000			94.45
2013						1,000			94.60
2013						1,000			97.15
2013						1,000			101.53
2013						1,000			103.00
2013						1,000			103.15
2013						1,000			104.25
2013						1,000			104.47
2013						1,000			104.50
2013						1,000	†		107.30
2014		10,000		4.000		1,000			90.06
2014		10,000		4.040		1,000			93.55
2014		10,000		4.105		1,000			94.00
2014		10,000		4.250		1,000			98.00
2014						1,000			98.30
2014						1,000			99.65
2014						1,000	†		103.30
2015		10,000		4.005		1,000			90.00
2015		10,000		4.220
2015		10,000		4.255

† Brent oil contract

* January through June